Dol­lars & Sense Street Smarts

Men and women dif­fer on in­vest­ment strate­gies; both have strengths

RSWLiving - - Departments - BY MAR­SHA MCDON­ALD

One of my fa­vorite au­thors has writ­ten a se­ries of books you are prob­a­bly fa­mil­iar with, the first be­ing “Men Are from Mars, Women Are from Venus.” Th­ese books by John Gray delve into the dif­fer­ences be­tween the way men and women think and how that re­lates to the way we in­ter­act. With over 50 mil­lion copies in 50 lan­guages sold world­wide, ob­vi­ously a lot of peo­ple thought it was very help­ful to un­der­stand the op­po­site sex. Just like the per­cep­tion of Mars and Venus be­ing dif­fer­ent, Wall Street and Main Street are dif­fer­ent, and how men and women think about in­vest­ments can con­trast too.

WOMEN OF­TEN MAKE DE­CI­SIONS FROM THE HEART Even when re­tired, the moms I see com­ing in my of­fice are still con­cerned about their grown chil­dren and grand­chil­dren and want­ing to make sure they have money to live com­fort­ably. They also worry about hav­ing enough in­come to last a life­time and don’t want to be a bur­den to their fam­i­lies. Safety and se­cu­rity are also crit­i­cal to women. They de­sire a com­fort­able home, know there’s food in the fridge and that they are safe. When con­sid­er­ing their sav­ings, they usu­ally pre­fer fixed-rate in­vest­ments to the volatil­ity of the stock mar­ket.

MEN TEND TO BASE DE­CI­SIONS MORE ON FACTS When asked about their pri­or­i­ties, many of the men I con­sult tell me they have raised and ed­u­cated their chil­dren and now want to spend money on them­selves. They as­pire to en­joy the fruits of their la­bor with more leisure ac­tiv­i­ties, hob­bies or travel. They also want to make sure their wife is taken care of when they are no longer around. If there’s a fam­ily financial cri­sis, they are there to help—but are less likely to want to sup­ple­ment their adult chil­dren’s cur­rent life­style.

MORE LIKELY TO SEEK PRO­FES­SIONAL AD­VICE Be­cause women are con­cerned about how each and ev­ery de­ci­sion will af­fect them and their fam­i­lies, they are more apt to look to

an ex­pert for guid­ance with their home, health and fi­nances. Women in­vestors more of­ten than their male coun­ter­parts will coun­sel with a financial ad­vi­sor, but the big­gest mis­take I see women in­vestors mak­ing is not hav­ing a financial plan and de­lay­ing mak­ing a de­ci­sion.

OF­TEN RISK-TAK­ERS In con­trast to women’s de­sire for safety, many men thrive on the ex­cite­ment of dan­ger. That’s pos­si­bly why they like to hunt and en­joy com­bat sports. In their in­vest­ments they thrive on watch­ing the mar­kets and mak­ing their own de­ci­sions based on spec­u­la­tion, mar­ket tim­ing and past per­for­mance. As the re­sult, the big­gest mis­take men are mak­ing is not get­ting pro­fes­sional ad­vice and hav­ing too much at risk. Get­ting a sec­ond opin­ion on your in­vest­ments from a financial ex­pert could make a big dif­fer­ence in your fu­ture. Whether you’re on Wall Street or Main Street, a hap­pier, se­cure retirement could be just around the cor­ner.

All writ­ten con­tent is for in­for­ma­tion pur­poses only. It is not in­tended to pro­vide tax or le­gal ad­vice or pro­vide the ba­sis for any financial de­ci­sions. All in­for­ma­tion and ideas should be dis­cussed in de­tail with your in­di­vid­ual ad­vi­sor or qual­i­fied pro­fes­sional be­fore mak­ing any financial de­ci­sions.

WOMEN IN­VESTORS MORE OF­TEN THAN THEIR MALE COUN­TER­PARTS WILL COUN­SEL WITH A FINANCIAL AD­VI­SOR.

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