Let’s continue our series on special money issues for women. Investing issues are similar for men and women, but studies do reveal differences in style and practices.
Women need to be just as involved and knowledgeable about investing as all the other aspects of money management, whether it’s helping with the family’s investments or their own retirement accounts and savings. Fortunately for them, studies show that women are often better investors than men and it’s believed that one reason is that women trade less often and are more “buy and hold” investors. Women may be less likely to like risk when investing which can lead them to do more research, listen to fewer “hot tips”, or avoid sticking with losers too long. On the other hand, fear of risk can lead many women to invest too conservatively and miss out on some of the gains normally derived from stocks.
Surveys and studies have revealed difference in investing between men and women which reinforce the idea that they make a good team when discussing family investments. Women may reduce men’s risky bets, and men may lessen women’s preference for paltry returns on treasury bonds and CD’s. Thus, spouses discussing family investments can improve family investing results.
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