Women may have more money sense

Sorry gentlemen, it’s true. According to recent information from Good Housekeeping magazine, women have more money sense than their male counterparts. While stereotyping is usually a mistake, a closer look makes a compelling case for this position in many ways.

Several of the characteristics cited are quite advantageous in the world of investing in particular. For example, a big advantage for women is their caring nature. Men tend to seek wealth as a means of keeping score. Women see money as a means to an end. They want to achieve life’s goals and need money to do so. The money ego trap is not as prevalent among females. Therefore, they seem to be more thoughtful in their consideration of planning things out properly and taking their time in making prudent investment decisions. By taking their time and exercising careful analysis, they will increase their chances of making solid decisions and lower the chances of making an investment decision based on emotional reasons which could spell trouble.

Women also do not suffer from "remote control disease." This allows them to be more willing to stay the course once an investment plan is implemented. One of the biggest problems investors must avoid is "chasing" after returns. With thousands and thousands of investment choices available today, men (remote control freaks) will be more likely to make this critical mistake. That is why the average investor typically will receive a return that is less than half the return of the average mutual fund. So avoiding the investment de jour and concentrating on using solid long term choices in a key ingredient to investment success.

Women also take a longer term view of an investment plan. This makes them less susceptible to "get rich quick" schemes. Their greater desire for security drives this long term way of thinking which is advantageous for achieving consistent investment results. By taking a long term view of intermittent downswings in the markets, common tactical errors such as "getting out until things blow over" can be avoided.

So by planning properly, not chasing returns, and taking a long term point of view, women put themselves in a better position to succeed in the world of investing. Let’s go men – we have some work to do!

 

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