Investing As A Couple Can Lead to Marriage Stress
source: http://retirement.equifax.com/2010/09/investing-as-couple.html
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- IlyceGlink
- added this
Many couples believe in togetherness, which can be a good thing. However, there are dangers to investing jointly that should give even the closest duos pause.
Remember the best-selling book Men Are from Mars, Women Are from Venus, by John Gray? The difference in the way men and women view the world has particular applicability to investing.
As many women know, men generally don’t lack confidence. They typically love the “action” of buying and selling stocks. The fact that trading increases costs, which decreases returns, doesn’t dent their enthusiasm for risk taking. I’ve found that male investors tend to seek the “big score,” often unaware of the “big risk” of losing a significant part of their invested capital.
Many women have told me that they find the markets pretty intimidating. Many men don’t admit their fear. They believe they can handle it.
A lot of men consider themselves to be very knowledgeable investors. Women tend to have a different view of their investing knowledge. A 2009 survey found that 73 percent of men professed having “a general knowledge of stocks, bonds, and mutual funds,” compared to only 40 percent of women.
Given these vast differences in attitudes, you have to question the wisdom of men and women investing jointly.
Remember the best-selling book Men Are from Mars, Women Are from Venus, by John Gray? The difference in the way men and women view the world has particular applicability to investing.
As many women know, men generally don’t lack confidence. They typically love the “action” of buying and selling stocks. The fact that trading increases costs, which decreases returns, doesn’t dent their enthusiasm for risk taking. I’ve found that male investors tend to seek the “big score,” often unaware of the “big risk” of losing a significant part of their invested capital.
Many women have told me that they find the markets pretty intimidating. Many men don’t admit their fear. They believe they can handle it.
A lot of men consider themselves to be very knowledgeable investors. Women tend to have a different view of their investing knowledge. A 2009 survey found that 73 percent of men professed having “a general knowledge of stocks, bonds, and mutual funds,” compared to only 40 percent of women.
Given these vast differences in attitudes, you have to question the wisdom of men and women investing jointly.
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BCD_Editor
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I couldn't disagree more. Yes there are differences. Yes, at times they can be focused on different things. But as a couple, with finances intertwined, futures commingled and the decision making (hopefully) being shared, the stress should not be who is right and when. But instead it should be: how can we capitalize on our separate 401(k) plans to maximize the most in the way of a profit. Being a couple doubles the opportunities. It is not a question of whether women and men approach investing differently. It is a question of how can the two approaches work together.
Paul Petillo
Managing Editor/Target2025.com - 1 year ago
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BCD_Editor
