The old stereotype regarding the differences between men and women is true when it comes to financial plan scenarios, with everything from aggressive tendencies to openness to advice lining up just as many experts felt they would prior to conducting a number of studies. Being aware of these variables can give some individuals pause when it comes to moving and handling their financial assets, as being too single-minded could be damaging to long-term strategies.
Diversity and consistency
Getting information about different financial investment advice is one of the primary ways in which gender groups split. Bankrate wrote that the Handbook of Consumer Finance Research discovered that women prefer to ask for help and learn about economic options in a group setting. Men, on the other hand, prefer independent investigation like surfing online or looking through print news or magazines for financial trends. These outlooks also reflect different long-term strategies, as men will be more mercurial, learning about constantly changing variables as they occur and reacting to them immediately, whereas women get overarching economic insight about long-term factors.
Similarly, the Chicago Tribune wrote that the University of California at Davis discovered that men are therefore more prone to economic disaster. Since they trade rapidly and take bigger leaps, male investment portfolios tend to be more unbalanced and mercurial than those of their female counterparts. The underlying issue here is that men won't be as well prepared for retirement or have as much financial health as women, resulting in male workers staying in the workforce longer to make up for lost income.
"There's been a lot of academic research suggesting that men think they know what they're doing, even when they really don't know what they're doing," said John Ameriks, the leader behind the University of California study.
Another factor of these kinds of surveys is that women have been shown to have weathered the recession better than men. Daily Finance wrote that a study by TD Bank showed men had been too quick to withdraw investments when the stock market began to flag, aggressively buying and selling with little thought about long term financial investment advice. Women, on the other hand, rode out the storm and came out better overall than male investors. These results show that being cautious and patient can often pay off in lifetime strategies.