Why is this? I have a theory. And a warning: I’m about to paint with a very broad brush backed by my opinion and no science. This obviously doesn’t apply to all people.

My theory is that men are more likely to tinker. They’re more likely to have unfounded confidence about their ability to “make moves” or “trade” to beat the market. But study after study after study all show that the LESS you do in investing, the better your returns. They say your investment portfolio is like a bar of soap. The more you touch it, the smaller it gets.

Women, on the other hand, may have more confidence in trusting the process. They make a plan and stick to it, setting up long term investments and leaving them alone. In investing, that correlates to higher returns.

Optimal investing is quite simple. Buy and hold one to three index funds. My favorite number of index funds to buy is one. WHICH ONE? Either VT (the global stock market ETF) or a target date index fund based on your age (like VFIFX). That’s it. If someone had me analyze their million dollar portfolio and it only contained VFIFX, I’d be amazed and give them an A+. But more people don’t have the will to keep it so simple, so they add complexity and it hurts them long term.

Remember to keep your investments simple, stay the course, and leave them alone for a long time. Focus your efforts on making more, spending less, and contributing the difference to those same simple investments.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.

-Jeremy