In today’s society, men and women are more equal than ever before. No longer is it just men who are in charge of the finances, women too now have as much say as men where they invest their money. However, in spite of this fact that both genders have the same rights when it comes to investing, men and women still tend to differ on what they invest in, how they invest it, and how much they invest.
Men could be like a charging bull
Men are far more interested in the short-term of anything, and like to look at small ups and downs rather than the bigger picture. Because of this, men adjust their investment portfolios 50% more than women do, and they are much more likely to abandon their investment if things aren’t looking that good.
Men are known as competitive, and this isn’t without good reason. Because of this trait, men are far more likely to take on a higher risk investment than women, who are – by nature – risk averse.
Women are more like the bullfighter
Women tend to always look to the future, whether it’s a relationship, a career or even money. It’s in their nature. This has led to research which shows the women are far better suited for long-term investment plans, as they are more likely to stick to their original plans – even if things aren’t looking so good.
Basically, women are more patient and thus are better suited for long-term plans, whereas men are more suited to a short-term investment plan.
Overall, women are much more likely to save than men – either using ISA’s or savings accounts, or investing in something sensible. A common theory for explaining why this happens can be down to the gender pay gap. As women as still earning less than their male counterparts (in certain fields, women stand to lose much more from investing, as they have less to begin with. One of the other top theories on this is that women are driven by a maternal instinct to protect and nurture. Men are much more likely to make a quick decision which isn’t thought out properly, and can often reject advice from qualified advisors. Women tend to be more cooperative with advisors and often take all the help they can get.
This has negative consequences for both genders – men can sometimes take on far too much for themselves to handle and can potentially suffer huge financial losses if something goes wrong. Women on the other hand tend to opt for low risk investments, meaning their returns aren’t massive and they often have to wait before they see any benefit.
All of this information is worth remembering when dealing with different clients. If you’re working with a woman, don’t try to get her to take a high risk investment opportunity if she doesn’t want it. Likewise, don’t try to get men to see the bigger picture and think of long-term goals as they are much more likely to want the chance to make money quickly.