Relative to men, women were more interested in receiving advice around illiquid assets as part of legacy planning, according to a UBS report on female wealth owners.
When undergoing legacy planning, females prefer to receive advice around illiquid investments more than males, according to a UBS report titled «Women and Investing», at 61 percent compared to 50 percent, respectively.
UBS noted that illiquidity did «not seem to be a prohibitive factor for women investors», citing research that suggests real estate is one of women's preferred asset classes.
«The appeal of real estate investments to women can perhaps be attributed to its tangibility which makes an investment appear less risky either because of the greater familiarity and perceived understanding of the investment or because of the greater perceived permanence of tangible assets,» the report said.
Physical Versus REIT
A noteworthy example of this difference can be seen through the types of real estate investments.
According to the report, men are «much more likely to list real estate investment trusts as their primary real estate investing method, while women are more likely to favor rental property» with data showing a narrowing gender buy-to-let gap.
«However, it is important to note that direct real estate investments hold idiosyncratic risk and may not offer the best diversification. It is therefore important that women make these investment decisions within the context of their legacy portfolio,» UBS added.
Inheritance Plans
Of the key findings in the report, the largest difference by percentage points is related to inheritance and tax planning.
55 percent of women said they intend to leave an inheritance but do not have any plans in place and 37 of women said they do not understand the rules around inheritance tax. Men claim to have better knowledge of both at 41 percent and 25 percent, respectively.
