One-quarter of Americans say they would like to be more cautious with their money, according to a recent Northwestern Mutual’s, “2013 Planning & Progress Study.”
The study found that although a significant percentage of Americans admit they need to be more considerate with their money, and both sexes concede they have fallen behind on retirement planning, there are appreciable differences between the sexes when it comes to their attitudes about financial planning.
Men are more likely than women to identify themselves as “disciplined” financial planners (37 percent versus 31 percent). However, they are also more likely to say that their financial planning needs improvement (66 percent versus 59 percent).
A major difference between the sexes, which is crucial for advisors to be aware of, is their risk tolerance. Women are less likely than men to say they are comfortable with the risks that accompany growth strategies when investing.
Men, who exhibit a higher risk tolerance, are more inclined than women to invest in the market (17 percent versus 8 percent) and therefore, more likely to report that they have suffered losses to their retirement savings over the last three years (25 percent versus 9 percent).