Compounding Wealth by Capitalizing on Boomer Gender Differences - Part 2

                                                                                         

SO I just want to itemize a few potential instances or situations (or stereotypes) that may in fact hit a little close to home in terms of how many men may perceive their handling of their investments as compared to how their female partners might feel. This is NOT unique, of course to heterosexual couples, as any partnership may fit into these slots. Now, don't get your back up about these statements. If they don't apply to you, thank God and move on!

MEN might bristle at some women wanting to have a say in what money gets contributed where indicating that they earn the money if in fact they do and often time they do out earn their spouses.

WOMEN might feel that they don't have a right to speak, often deferring to their spouses. Women might not feel important enough to fight for their expenditures; in fact they might hide their purchases for fear of reprisal because they don't feel that they have any power.

Studies show that the highest earning partner dictates what expenses are fixed and what expenses are tertiary. I think that may end up being a cause for people to seek out tools to enhance or repair their communication, perhaps through working with a psycho therapist.

There always seems to be a little tussle among couples about saving and spending. Invariably one is always more of a spender and one is always more of a saver.

MEN might feel that their buddy or their golfing partner or their college roommate is best qualified to invest their money.

WOMEN may want to have a say and a choice of selecting a financial advisor, one whom will listen to them and answer their questions.

MEN may presume because they have always been the ones to do so that they should be the ones to make the unilateral decisions, after all, it's just simpler that way.

WOMEN may presume that they can't break into the decision making process because they don't have the same knowledge base that they perceive their husbands to have.

MEN may be too embarrassed to admit that they don't have the knowledge to make the decisions either and yet they go ahead and assume the role since they think that they should.

WOMEN may blindly delegate the financial decisions in the house because that is how their parents did it.

MEN may not be following a particular plan of action for their finances out of fear that they can't do it right, or that they will never be able to retire so why even look at it. This could also partially explain why some men don't ask for directions because of divulging the fear of not knowing something.

WOMEN may wonder what plan is in place but be too timid to ask.

MEN might abandon the plan of buy and hold, and quickly sell if the market drops precipitously, thinking their quick exit will protect the family. Conversely if they hear a tip they may buy hoping they can feel like a hero if it earns a lot of money-preferably quick money.

WOMEN might want to stick to the plan, the original plan, having more patience.

MEN may want to trade stocks more often feeling that to take some action is actually responsible.

WOMEN may be fine to monitor the plan without making trades if all is well.

This points us to an interesting statistic from a Barbara ODean study out of the University of California in 1999 that showed because men trade more than women; women actually make better investors than men.

Men actually traded 77% of their portfolio each and every year versus women trading 53% of their portfolio annually. Single men traded 67% more than single women. All that excess trading resulted in men's returns coming in .94% less than that of women, (almost a full percent less than women) and the single men's returns are almost 1.5--actually 1.44% less than single women's.

This kind of precipitous action that the male brain prompts men to take is quite expensive, especially when you consider compounding, whereas women will be much more intent on finding some substantive evidence as to why they should make those investments and they will generally hang on to their investments longer so as a rule. If we can harness the power of the male and female brains so that 1 + 1 =3, we'll make FAR more money, and live happier, healthier lives. What's the alternative, you ask?

Premature death notwithstanding, 51% of American marriages end in divorce and according to the Journal of Sociology's Marriage and Divorces Impact on Wealth Study, both parties suffer a net worth drop of 77% on average.

67% of 2nd marriages end in divorce, the statistic is higher because it is about blended families it's about mixing money, it's about children of two different marriages, it's about loyalty and commitment. Often blended families do not work; they need a lot of help in getting over these hurdles.

Disagreements about money are really a very very big part of what is usually at the core of couples' problems. However, as any psychotherapist knows, money is just the holding point because it is usually about communication and money then becomes the vehicle with which they disagree. It doesn't mean that they don't have money issues but if they have good communication about the myriad of other issues and an effective way to talk to each other, then it will follow that their money issues will be able to be negotiated and mitigated.

Let's be about empowerment then. Let's understand and work with gender differences as boomers. Let's be as creative in solving these conundrums as we are about all other aspects of our lives-we who are living longer, and living younger. Let's keep love in our lives, and that will pay huge dividends in our compounding wealth!

You'll find these and more statistics, patterns and recommendations in my upcoming book, so stay tuned for its release on my website.

About the author:
Debra L. Morrison is a sought after international motivational speaker who motivates audiences of mature women to master their finances, through generous helpings of humor and analogy. Debra's special personal attributes, coupled with her wealth of experience gained from heading her own firm for 14 years, has given her such credibility that she has been featured as an expert in investing and financial planning with ABC, Fox, CNN, and CNNfn.

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