Women Make Better Money Managers

If you’re of the male persuasion, slowly step back from the check book or computer, and find a woman to take over your financial decision making.

According to Ronald T. Wilcox, a growing body of research reveals distinct differences in how married men and women approach money and investing. Because men tend to be overconfident, they trade stocks and bonds more actively because they think they know what the next market movement will be. As a result, they incur various transaction costs associated with trading but don’t pick assets any better than women. They’re also less likely to listen to financial advice.

Women are less confident than men about their financial abilities, switch investments less often, and are more likely to listen to financial advice. As a result, they generate risk-adjusted returns superior to those of men.

The Wall Street Journal summarizes Wilcox’s findings thusly, “Men may think they know what they are doing when it comes to investing but often do not. Women may think they don’t know what they are doing but often do.”

Truth be told, you can plug in anything you want for “investing” in the last paragraph. Now if you’ll excuse me, the market is about to close and I have some trades to make.

Bonus link—a couple that has figured out how to enjoy a better quality of life despite making considerably less money.

My “not motivated by money” award nomination double bonus link—and favorite 2012 US Olympian and favorite youth sport parents—Missy Franklin, Dick Franklin, and D.A. Franklin.

My “Forever 21″ Test

I passed. In the same way I probably passed that economics class at UCLA that I changed to “pass/no pass” after bombing the first test. In a “C+” kind of way.

Last weekend was the annual Byrnes family downtown Seattle pre-Xmas overnight. Sixteen, Nineteen, their mother, and yours truly, playing the token male.

Historically this trip has been the Thanksgiving/Seattle Marathon weekend, but this year we had to wait for Nineteen to return home from college. Normally I use tapering as an excuse to spend the night frozen on the hotel bed watching football and basketball while the three of them do American Eagle, Forever 21, and [insert the name of a female shopping goddess here] only knows what other stores.

This year, with no race to run Sunday morning, I couldn’t use my normal tapering “get out of shopping” card. So I talked myself into going along in the interest of “family time”. I’d rather get a root canal without anesthesia or be the guy in the Tour de France that got flipped over the barbed wire by the reckless driver than watch two young women shop, even my favorite two young women. I decided to approach it as an endurance test, a gender test, a mental toughness test, a selflessness test.

Store one, Forever 21. I asked where Forever 51 was which elicited smiles. Men, the most important thing to know about Forever 21 is it’s inexpensive. If you want to get back at a lady friend that did you wrong, pick her up something there. The ten minutes of watching blonde one and two round up clothes to try on was tougher than expected, but then they disappeared into the changing room and time came to a complete stop. European finance ministers would solve the Euro crisis for good if they committed an equivalent amount of time.

I had prepared for a warm 10k, but was instead running a marathon in Tampa Florida in the middle of a summer afternoon. Totally out of my league. The wife with the bad wheel found a chair to spend the rest of her 51st year in. Losing my mind, I decided to entertain her by dancing to the incessant techno Christmas music. The more she smiled and laughed, the bolder I got, the bolder I got the more she smiled and laughed. In the end, it was probably twice as bad as you’re imagining.

Finally, I sent the wife in after them wondering if they had been abducted. She reported that they’d be ready in “five minutes” which turned into what felt like five hours. Finally, ready to go, but wait, turns out there’s this strange tradition of putting at least one article of clothing on hold. Kind of like throwing a coin in a fountain. This is so you don’t actually have to decide. Turns out you never go back for it, it’s just a game that everyone, shopper and store employee both enjoy playing.

On the way out, the following mind numbing “straw that broke my back” dialogue took place: One xx, “What’s with ponchos, seems like they’re making a comeback?” Another xx, “Oh no, they’re all the way back.” Still another, “Correction, they’re trying to make it back.”

Please make it stop hurting.

Once on 6th Avenue I breathed in the cold fresh air and slowly recovered. Like anyone who had to fight a young Mike Tyson, I knew I was whupped. One round was all I lasted.

As I collapsed on the bed in the gloriously silent unoccupied room I couldn’t help but think how this family tradition would differ if we had two sons. This is all I know for sure. We wouldn’t speak of ponchos, we’d race go-carts, we’d wrestle, and we’d fall asleep watching Hoosiers.

World Cup Notes

• I’m a casual football fan who shamelessly jumps on the World Cup bandwagon every four years. I am not a connoisseur, but after watching it in slow motion a few times, that disallowed goal at the end of U.S. v Slovenia was a terrible, terrible call. But the one thing I dislike more than missed calls, is people who complain about poor officiating. I didn’t see the first 67 minutes. There may have been blown calls that benefited the U.S. Human error is part of the game, deal with it. So, terrible call and points off for me for dwelling on it.

• Why do women always feel sorry for whomever is behind? After the second tying U.S. goal. “Oh no, it looks like the Slovenian fans are crying.” Note to self: teach daughters that whenever you have your foot on your opponent’s throat apply PRESSURE.

• Notice the coaches down jackets? Nice that there’s somewhere colder than Olympia, WA. Of course it is late Autumn in South Africa. It hasn’t reached 75 in this area yet this year. The previous “latest 75 degree” date was June 9th. The high temp on the 10 day forecast. . . 68. High 50′s this weekend. Apparently, summer has been cancelled. Is Rush Limbaugh right, is global warming a crock?

• Why do people complain about things they can’t change? Like the weather.

Human First

I disagree with most conventional wisdom about gender. Odds are I think about it differently than you. I acknowledge men and women are different, but I feel standard gender stereotypes about men are extremely limiting. More generally, I believe standard gender stereotypes about both men and women are unhelpful exaggerations. I question the usefulness of the classic masculine/feminine continuum. I’m human first, male second. I want to be a more caring, sensitive, selfless person, attributes typically associated with women. Instead of accepting exaggerated gender differences as the natural order of things, educators, parents, anyone involved with young people and I would be better off identifying attributes we want to help both young men and women develop.

A Passport and Library Card

This post is only for men under 35, and my brother, “Mother’s Favorite”. If you don’t fall within that demographic, stop reading.

Yes, a happy wife equals a happy life, but what if  you’re single? Singleness is cool, but if you want to marry, get a passport and a library card. Traveling abroad and reading are probably optional. More advice here.