If you celebrated Christmas yesterday, I hope you had a very merry time with friends and family. Today I’d like to wish you a Happy Kwanzaa.
In the midst of your holiday celebrations, I’d like to share an interesting article with you. This article was published November 14th of this year on the Atlantic.comwebsite. I hope you’ll take a moment to read it when you can.
The article argues against the widely-held belief that women are naturally more risk-averse than men.
For instance, the article references Mariko Chang’s book and her conclusion:
The men she interviewed were more willing to take risk than women, not because they were men, but because they have more faith in their ability to make up any investment losses through their future earnings than the opposite sex did.
So instead of the generalization that women are biologically programmed to take less risk than men, it seems that it might be a much more practical adaptation. Maybe it’s not something women are born with, but rather it’s a learned survival skill around the idea that they’ll have to do more with less because of the gender pay gap.
In my experience working with women - especially those that have gone through a divorce – I’ve not only seen this manifest in risk avoidance . . . I’ve also seen it through consistent under-spending of financial resources. And while it’s better to under-spend than over-spend, it shouldn’t come at the cost of sacrificing the one shot you have at living your best life.
So whether you think women are born risk-averse or they’ve developed this mindset as a result of the financial environment we live in, I’m here to tell you it doesn’t really matter.
What I believe does matter is making sure women live their best possible lives today AND in the future. It’s about balance. It’s about values, goals and priorities. And it’s about taking as little risk as necessary to achieve what’s important in a woman’s life.
In this context, risk isn’t a constant that women have to maneuver around. It’s just another choice they have to make when deciding how important it is for them to reach their other, perhaps more important, goals.
If you’d like to rethink your approach to financial risk and achieving what’s important to you and those you care about, please contact me and let’s talk about it.
Want to learn more about my unique approach to helping women live their best lives? Watch this video where I provide an overview of my approach and how it’s different from most financial advisors.
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