News | Features
21 Jun 2024 9:34
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business > Features

    The Investor Men Don’t Have a Monopoly on Financial Ability

    New Zealand women are less confident about their finances than men, a recent survey suggests. Should they be?

    The online survey, conducted by Westpac, found that considerably more women than men feel financially insecure and worry daily about their financial future.

    They are more likely to have no idea of how old they will be when they retire, or of much money they will need in retirement. They are less inclined “to list putting money into savings or investments as a current focus”, and more likely to rely on NZ Super as their main source of retirement income.

    Meanwhile, however, twice as many women as men control household budgets, and four times as many control household spending, the survey shows.

    The question arises, then: are women less competent financially than men?

    Other research shows that men tend to rate their own financial knowledge considerably higher than women rate theirs. But when they are quizzed on what they know, there’s little difference.

    While confidence is generally regarded as a good thing, male overconfidence could be as damaging as female under-confidence in things financial.

    Study after study finds two clear differences between the genders:

    • Men tend to take more financial risks than women.

    • Men tend to trade investments more frequently than women.

    Taking financial risks is currently unfashionable. Compared with a few years back, people are more likely to take out smaller mortgages and pay down their mortgages, and to save in bank term deposits rather than in investments with higher expected returns.

    But risk in investing is not a dirty word. If you diversify, understand what you are investing in, won’t need to withdraw the money for some years, and know you could cope with a worst case scenario, taking financial risk can be wise.

    You are likely to end up with higher returns than in a low-risk investment. And over long periods, that makes a huge difference to total savings. If you invest $100 a month over 40 years with a return of 3 per cent after fees and tax, you will have about $92,000. At 6 per cent, you will have $192,000 – well over twice as much.

    Men’s propensity to take higher risk probably partly accounts for the fact that the average weekly income for a man over 65 is $610, while for a woman it’s $464, according to Westpac – although women’s lower average pay and greater tendency to take time out to care for children would also contribute.

    But men don’t always take wise risk. A while back the Australian Securities and Investments Commission reported that a full 90 per cent of the victims of cold calling investment scams were men.

    Turning to frequency of trading – of shares, bonds, property and so on - plenty of research shows this is not clever.

    There will always be some frequent traders who do well at the start, probably because of luck as much as skill. But over the long run, the costs of trading, including tax, eat into returns. Those who buy and hold – who are disproportionately female - are much more likely to prosper.

    So where does this leave women? I’m not saying be complacent. Obviously it’s a great idea to make a long-term financial plan. And the sooner you put it into action – even if it’s just saving a few dollars a week - the more effective it will be.

    Let’s replace women’s worry and insecurity with quiet confidence that you are on the right track.

    And for the blokes? How about toning down the trading, and taking care with the risks?

    © 2024 Mary Holm, NZCity

     Other Features News
     10 Sep: Spring clean your finances
     13 Aug: Plan ahead to give yourself a debt-free Christmas!
     10 Jul: Wise up to clear credit card debt
     07 May: Ways to prepare for the unexpected
     30 Mar: Time for a financial progress check
     10 Feb: Studying up on NZ Super
     10 Jan: Managing the back-to-school bills
     Top Stories

    New Zealand women's sevens skipper Sarah Hirini says there was no way she wasn't going to give her all to get to this year's Olympics More...

    Weak economies in other developed countries are impacting GDP growth in New Zealand More...

     Today's News

    Law and Order:
    An alleged assault at a Wellington strip club has landed one woman before the courts 9:27

    Living & Travel:
    'It's never like this': Chaos unfolds at livestreamer's giveaway event, as arrests and injuries ensued 9:17

    Sir Ian McKellen is "looking forward to returning to work" after he was rushed to hospital on Monday (17.06.24) 9:16

    Elle Fanning is "always slightly overdressed for the occasion" 8:46

    An own goal has punished Italy in their top of table group B match against Spain at the Euros 8:37

    Anticipation of good news for some patients - over the Government's drug funding pledge 8:37

    Lydia Ko is turning her attention to a third Olympics ahead of the year's third golf major this morning 8:37

    Normani is determined to "celebrate" herself after releasing her debut solo album 8:16

    Weak economies in other developed countries are impacting GDP growth in New Zealand 8:07

    Japan is dealing with a 'flesh-eating bacteria' outbreak. Here’s what we know about STSS and how to avoid infection 7:57

     News Search

    Power Search

    © 2024 New Zealand City Ltd