Are women more risk-averse than men?

[sweeps]

It seems that women tend to be more financially risk-averse than men. For example, a woman's advice is generally to pay off all debts and then invest if some money is left, whereas a man generally advises to only to pay off expensive debts and concentrate more on investing.

Do you agree with this? If so, why do you think this is?

[mstrohm]

This is not very politically correct to talk about. However, research seems to indicate that men do take more risk. I would guess that applies to investment as well.

Mark

[Ima saver]

I am more aggressive in investing than my husband. He knows nothing about mutual funds and stocks, etc. I handle all the money.

[Thrifty Ray]

As in all things...I think 'it depends' fits quite nicely here...

Since I was in banking for so many years and have a better understanding of financial matters than my DH...I am the one who has socked $$ into our stocks and mutual funds...My retirement nestegg..(thanks to a very generous 401K plan where I worked=8% match) is growing well. DH...well, he lifts heavy stuff....(just kidding...!!!)

I supposew overall, there would be some truth to what you say...but I think us women folk are catching up...now that we can vote and all....(wink)


egads...please don't vote me off the island for my tongue-in-cheekness!

[34saving]

My gut says that women are more risk adverse then men, but I don't have a lot to back that up. Here's something else to chew on . . .I read somewhere (was it here?) that pychopaths do better in the stock market than non-psychopaths because they handle risk better . . . I guess all of us in the non-psychopath category are too risk adverse then?

[Ima saver]

Ray you are so funny!! My husband does well with lifting heavy stuff too. [Automated by GetSmile]

[mstrohm]

Sounds like this thread is getting too risky for me!

Mark

[Thrifty Ray]

mstrohm....What do you mean 'risky'??

I, myself, was just finding humor in the question...one which I am sure was meant to be thought provoking and stimulate some conversation...I have a feeling it will strike a nerve or two in doing so. And so there may a nerve struck on the replies....tit for tat...if you will.

Funny story that fits in quite nicely here....

One day my daughter (then 11) came home and asked me what 'testosterone' was... I thought for a minute and then said...


"It is a harmone that men have that make it impossible for them to stop and ask for directions"....Years later, it is still her definition...and I think it's accurate enough

teehee

[sweeps]

Yeah, I'm not sure why this topic would be politically incorrect? Being risk-averse is neither good nor bad, just different. I was hoping to stir some debate as to what causes people to be risk-takers or risk-avoiders -- is it nature or nurture?

[34saving]

I blame "Coming of financial age" during the dot com boom/bust for my risk adversion. Dh is pretty risk adverse too . . .and he's the same age I am . . .

[Thrifty Ray]

As I mentioned before, I have enjoyed taking some risk and watching that risk payoff (so far at least)..

I have a very close friend (male) who inherited a nice sum a few years back. (Several $100K)
He grew up so very poor and up until his inheritance had struggled his whole life financially...He REFUSES (and calls me crazy) to put his money into anything but a bank FDIC money market account. This past year he made a couple thousand dollars in interest...my investments grew almost $15,000....and I have a fraction of what he does...(call me crazy)

So...I still go with 'it depends'....

[TBH]

I'm sure there are studies on this. We should ask a librarian to find some hard data for us. Oh, right, I am a librarian....

In our house, my spouse is more risk averse. I'm a little less reasonable about money decisions and tend to go with my gut feeling. My gut feeling isn't always right, let me tell you.

[Ima saver]

Ray, I have a friend like that. His father left him some money, several 100K and he keeps it all in cd's. I talked him into putting a little into mutual funds and that little made more money than the money in the bank.

[jodi]

Just speaking from experience...I am way more risk-averse than my DH. I really don't know the reason for this, since my parents are heavy investors and I don't think his parents have ever invested in their lives (since we are talking of nature/nurture). But I would much rather pay off a 4% debt than put the money into stocks or funds averaging more than that. I just hate the idea of owing people money. I will be much more willing to take some risks once the student loans are paid off.

[lrjohnson]

I am female and financially risk adverse. I am uneducated about investing; I've got the frugal/no debt/living below my means down, but I've then created savings that aren't doing enough. I can be intimidated by things I don't know about-I love understanding things and learning, it's not that, but somethings do make me nervous. I don't think that's necessarily related to being a woman: for a long time I was intimidated by baking, and canning.

I need to make the next step, and Manage my Mini-wealth, and learn about bonds and stocks and mututal funds and other investment vehicles. When I do that, I think I may be willing to do some riskier stuff because I'm at the very least 20 years from retirement.

Something in my head says I would regret a loss of money in a risky investment more than I would regret not having the return "I might have had."

[Thrifty Ray]

Wouldn't it be fun if someone REALLY knowledgable on investments would commit to giving us a basic, daily tidbit of knowledge on investing (kindof like the daily savings challenges)?? I know I would sign up! Or maybe there is such a site out there??? I don't know...just a fleeting thought.

[Ima saver]

I learned about investing in mutual funds and the stock market by reading money magazine. My husband never reads, so he would be content to keep his money in certificates of deposit. The mutual funds have done much better.

[CJsoccerchic]

My husband just keeps things in the bank - wherever - he doesn't pay attention to savings or checking - he just wants it there and easily accessible - so in our case, he keeps it in the checking account where he uses his check debit card frequently. This I'm sure is NOT the case for all men, just men that are younger then 25, I think!! heee heee

[nanamom]

This made me do some serious though (way too late for that but OK) In our house I think it is pretty even only in different ways. I will risk and so will he but is in more informed of a risk, Does that make it less risky? I.E. We decided to invest DS2 college fund and I looked up some responsible funds. He took it a bit farther and found a fund plan to use that is socially responsible and we are happy with. So I guess we both risk. After all if women didn't take risks, we wouldn't get married! (disclaimer, no offense to men, I am happily married to a great one and it was a big risk on his part to marry me!)