A man is not a financial plan

Originally published on Law News NZ >

Gretchen Williamson has spent nearly 25 years in investment markets, but much of her work has been focused on something far simpler than markets, models, or returns: getting people, and particularly women, to take the first step and start.

An investment adviser at Craigs Investment Partners, she is one of the driving forces behind the firm’s women’s wealth initiative in New Zealand.

Her focus is access – particularly for women who often remain outside financial decision-making conversations for longer than they should.

From Taranaki to global finance

Williamson grew up on a farm in Taranaki before leaving New Zealand in her twenties to work in financial markets in Sydney and Hong Kong – providing her grounding in global financial markets.

She returned to New Zealand in her early thirties with international experience but no established network.

“I came from a small farm in Taranaki. I didn’t even know where Queen Street was.”

That changed quickly once she returned home, where she found being one of the few women in the industry opened doors.

She joined Craigs Investment Partners as the first female investment adviser at its Auckland branch.

Having worked in large offshore dealing rooms, where women were in the minority, that aspect wasn’t daunting.

What stood out more was opportunity, given what she observed to be a lack of investor education in New Zealand at the time.

“So we thought: let’s do that and tailor it towards women.”

Early work involved breakfast and community events, inviting women to learn about investing.

“We started with the basics. What’s a share? What’s a bond?” she says.

These events gained popularity and that work became the foundation of Craigs’ Women’s Wealth Team initiative that’s run across the country.

Barriers for women in investing

Williamson points to three consistent barriers facing women in investing: pay equity, time out of the workforce for children or caring responsibilities, and confidence.

“That confidence gap can translate to more conservative decisions, which can mean their returns are not as good.”

Typically, women take longer to make investment decisions and commit their money.

But once they do, they are better at sticking with it.

“Women tend to be better investors in the sense they don’t chop and change. Once they have got the strategy, whether it’s growth or a balanced-approach, they stick with it, because so often you can lose money in the chopping and changing.

“Research from Fidelity Investments shows that women can achieve better investment returns than male investors, because their investments don’t tend to be as ego-linked and once women make decisions, they tend to continue with them.”

What does investing really mean?

Williamson puts it simply.

“Investing is making the most of any money you have outside your bank or your home.”

That can start small.

“It might be as little as $100 a month in KiwiSaver or a pension, or it might be a larger portfolio from a lump sum. We help clients of all ages, from newborns through to people in their nineties, so we have a solution that can take them through all those stages.”

Williamson draws a clear line between saving and investing.

“Everyone should have a buffer of savings to cover you if something untoward happens – anything from six months of income to a lower figure, depending on what people need. Everything beyond that is investment, as far as I’m concerned.”

The challenge: getting started

Despite years of education initiatives and working with females in this space, Williamson says the same hurdle to investing remains.

“The biggest barrier is getting started,” she says.

People often delay because of uncertainty or lack of time. So, her approach is always simple.

“Just get started with a small amount. Even just take $5,000 and get it into a fund. Getting started is where the experience lies, not just thinking about it.

Fear is another block to overcome.

“Sometimes people might tick the right box for an aggressive investment portfolio, but that’s not necessarily how they feel when they start,” she says. “It’s the advisers’ job to translate that in terms of risk and willingness,” she says.

Her advice is to start small and adjust over time.

“Start with 20 per cent of what you’re considering, then review it in a year.”

Still focused on the same problem

In the two decades Williamson has been at Craigs, the women’s wealth team has expanded nationally and close to 40 per cent of advisers on the team are female.

While she has certainly seen been big gains in womens’ participation in investing, Williamson says the core issue has not changed.

“The same barrier persists: getting started.”

That’s why education is still such a big part of her work and she always brings it back to the basics.

“What’s a share? What’s a bond? Let’s start there.”

Running, balance and life on Waiheke

Williamson now lives on Waiheke Island – a move driven by family considerations and a desire for a smaller community.

Outside work, running is one of her big interests.

“I started during COVID. Markets were challenging and my father was sick, I needed an outlet.”

She has since completed four marathons, including Berlin, Chicago and Brisbane, with Sydney up ahead in August.

“It helps me keep everything balanced.”

Market Insights enewsletter

Keep up to date with our fortnightly Market Insights enewsletter. Our research team provide timely and regular commentary and analysis on market developments, understanding investment jargon, and the impact of current events.

Subscribe Now