Are women more risk-averse than men?

**mstrohm** · 03-30-2006, 08:59 AM

Re: Are women more risk-averse than men?

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** · 03-30-2006, 09:08 AM

Re: Are women more risk-averse than men?

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** · 03-30-2006, 10:22 AM

Re: Are women more risk-averse than men?

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** · 03-30-2006, 10:52 AM

Re: Are women more risk-averse than men?

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** · 03-30-2006, 01:36 PM

Re: Are women more risk-averse than men?

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

**mstrohm** · 03-30-2006, 01:43 PM

Re: Are women more risk-averse than men?

Sounds like this thread is getting too risky for me!

Mark

**Thrifty Ray** · 03-30-2006, 03:02 PM

Re: Are women more risk-averse than men?

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** · 03-30-2006, 05:21 PM

Re: Are women more risk-averse than men?

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** · 03-30-2006, 05:39 PM

Re: Are women more risk-averse than men?

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** · 03-30-2006, 08:31 PM

Re: Are women more risk-averse than men?

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** · 03-31-2006, 08:34 AM

Re: Are women more risk-averse than men?

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** · 03-31-2006, 11:49 AM

Re: Are women more risk-averse than men?

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** · 03-31-2006, 06:35 PM

Re: Are women more risk-averse than men?

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** · 03-31-2006, 10:08 PM

Re: Are women more risk-averse than men?

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."

Are women more risk-averse than men?