Men are more hands-on when it comes to investment decisions, while women are more apt to rely on professional advice, according to a February survey conducted by Millionaire Corner.
Financial literacy and knowledge is a higher priority for men, our survey found. Forty-six percent said it was extremely important vs. 36 percent of women. Twice as many women than men (20 percent vs. 10 percent) consider financial knowledge only somewhat important.
It’s not surprising then that men expressed more confidence in their financial acumen than did women, 45 percent vs. 30 percent. Conversely, women were significantly more likely to categorize themselves as not very knowledgeable about financial products and investments.
A reason for this confidence may be the priority men place on independent research, including looking at company reports and prospectus. Forty-five percent said that this was the most important factor in making an investment decision, compared to 29.5 percent of women. More men than women also said that they read the daily financial press (3 percent vs. 1 percent) and log on to financial advisor or provider websites (4 percent vs. 2 percent).
Women on the other hand place greater importance on consulting with a financial advisor, 44 percent vs. 35 percent. They were also significantly more likely than men to consult with a friend or family member, 8.7 percent vs. 0.9 percent.
Previous Millionaire Corner surveys underscore this preference for the personal touch and a reliance on perceived expertise. A January survey found that 54 percent of women vs 42 percent of men said that they rely on their advisor to do the research on the mutual funds in which they invest. Last August, amidst the market swings following the downgrade of the U.S. credit rating, women were more were more likely than men to call their advisor to ask questions and seek guidance. They were also more likely to receive pro-active phone calls from their advisors.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.