Sally, Investment Banker, Rachel Cohn discussed on The Indicator from Planet Money
And so if there's a retirement savings crisis it's our problem. How do we solve it and so so this is occurring to you in this moment you have it is all i had to put on some blush and stuff sure sure i mean and sally thought yes. I've got it. This is my mascara moment. Oh man i'm going to tell all the banks this. This is the way to help solve the retirement crisis. Get women to take their money out of savings accounts where it's not really earning anything anything and put that money into the market there is so much money being left on the table in our economy and i know where it is. Let's go after it and make it happen and we will all win. In sally super connected in the financial world so she started setting up meetings and pitching her revelation too big banks. The meetings did not go well. I i was at breakfast with one c._e._o. Had just gone through women have five trillion dollars gender investing gap ninety percent of women manage their money on their own at some point in their life but at at added at it and then he looks soulful into the distance and then turns to means but don't their husbands manage their money for them and i didn't i just say ninety percent of women manage their money on their own at some point in their lives. Sally also knew the c._e._o. Had a point traditionally money has been the domain of men and managing money. Money is often uncomfortable for women or something they don't think to do often women will get married and automatically. It's husband's domain in fact sally experienced this herself else after she got married. I think i read that for a while. You even you weren't managing your oh yeah because i grew up in the same society we all did and i grew up in the south thin. The boys do the money and the girls do partake parties and i every you know this foundational <hes> view that i had he and i were going to be together till death do us part just crack crack depart right right and i mean you were working in investment banker. Yes i know why is this happening. Why aren't women managing their money more. Why aren't they investing more money. As someone who had worked on wall st sally felt like she knew why this was happening. Ninety percent of mutual fund managers are men ninety. Five percent of hedge fund managers are men ninety. Percent of traders are men eighty. Six percents of financial actual advisors are men and as a result of the business of money being led by populated by men they have built a business that men you feel more comfortable with than women do a business that you see <hes> shown on c._n._b._c. the trading floors ri- shouting lot of feels all right the the raison d'etre of the industry being to outperform to win to buy low to sell high these these things are sports like right tend to. I know you know you don't think it and then once you start thinking and you're like wait a minute and now i'm gonna tell you something you're going to go. Ooh ooh oh uh-huh in a second when i say even the symbol of wall street oh the bowl the bronze the bull with the those huge testicles i mean can you be any more male anymore phallic than that. No i mean it's not even a symbol. It's not even so i mean i think we'll have to have those frasier testicles like it's so weird right. You're getting these very male symbols plus what society has fed to us. You like you know what this is for my husband or my spouse eventually sally struck out on her own and founded l. invest in investment advisory firm that markets to women and and tries to convince them to invest more eldest also does a lot of research into women and investing looking at what kinds of things will convince women to invest more money apparently leap having concrete financial goals very helpful for women like saving up a certain amount of money to buy a home or philip college and also more straightforward investments like an index dex fund where you just put your money in and leave it instead of trying to move it around from stock to stock and predict what's going to go up and down and so he says all this. It's not just a girl power issue. It's an overall economy issue. She says women are this vast largely untapped economic resource and tapping into that potential could help grow so the whole economy. If there is one thing we can do one thing to improve society and grow the economy on amee it is to get more money to women. Investing in women is smart. You know women are more likely to pay back their loans than men are companies run by women tend to outperform outperform companies run by men in terms of returns and sometimes in this conversation. What gets lost pretty quickly when we think <hes> if the women have more don't don't the guys have less. No the economy can grow right. We forget that the economy is not growing as much as we would like for two now l. a. way to grow it is to get more. You know the the the moms who took the brakes when the kids were younger who want to get back in the economy and they can't imagine <unk> having them back in finding jobs for them startups that they drive. These things are so important so important. Today's original episode was produced by megan kane patty hearst is our editor rachel cohn produced the update and the indicator is a production of n._p._r..