It did not surprise me to learn the following but it does sadden me.
*” Women are statistically less accepting of the fact that risk is a necessary part of long term saving, preferring to accept low returns and reduced outcomes rather than take on more investment risk”
As a woman who is comfortable and experienced in money matters, I understand the part risk plays in long term saving. For many women however, the very word risk speaks of possible loss and insecurity while in investment terms, it actually introduces the possibility of gain and opportunity.
If you need a certain amount of capital set aside to achieve a goal by a certain date, maybe it’s university fees in five years or retirement in twenty years, your goal is easier to reach if your savings grow at 6% a year rather than 1.5%. Yet many women would rather accept 1.5% a year and be forced to save larger amounts. They sacrifice current standard s of living rather than invest in assets that could temporarily fall in value.
I feel sure that with just a little coaching most women could overcome this “Reckless Conservatism” and make relevant and sensible decisions that would change their lives. We ladies are practical and rational beings and although the majority of us will always be inclined to take the tortoise approach as opposed to the hare, we can at least train to be in the race.
A good financial planner will help you understand all that is useful and worthwhile about investment risk so you can make informed choices. The process of learning about your attitude to money and risk is vital to being comfortable around money matters. It can be an interesting and enjoyable experience when you are guided by a trained professional. At the very least it will be informative and empowering.
I am so keen to help women learn more about this, that I am inviting you to call free of charge and speak to me further on the subject. 01843 608100. Call the office and ask to speak to me about Reckless Conservatism and you will be entitled to 20 minute free telephone consultation.
* The Pensions Institute CASS Business School survey “How do savers think about and respond to risk?” (Feb 2014)