Me? A Financial Faker?

 

Robert Benchley, a humorist from the first half of the 20^th century, wrote a short story/essay about how he cured his wife of always telling him to ask other people for directions when they were on a road trip.  In the story, titled “Ask That Man”, Benchley described his frustration over carefully plotting his and his wife’s trips on a map only to have his wife worry that they were taking the wrong road or turning the wrong direction and insisting he ask a nearby stranger or gas station attendant for directions.  He became so fed up with it that he resolved on one trip to do just as she instructed every time—except that instead of really asking for help, he pretended to engage in a conversation with the stranger then came back to his wife with bogus directions that took them ever farther afield.  Finally, after going through this exercise several times and becoming desperately lost, Benchley himself offered to “ask that man over there” for directions—to which his wife blurted out, “No!  Just do what you think best.”   Then he easily navigated his way home.

For any woman reading this, the lesson should be that men HATE to ask for directions.  But I suspect Suze Orman, the personal finance expert of television fame, had that thought in mind when she recently labeled men “financial fakers”.

Ouch.

Orman said on several occasions she had deliberately offered male clients complicated, nonsensical financial strategies that the men not only did not question but pretended to understand.  She insists that 95% of Americans, male and female, are financial illiterates; but the men are especially loath to admit their own shortcoming.

Orman is just one of many voices that are urging Americans to learn more about investing and managing money.  A group of women calling themselves Dow Janes (I love the clever name!) is on that bandwagon, too, with online courses and other teaching tools for women who feel deficient in this area.

As I’ve written before, women stand to be the immediate beneficiaries of the Baby Boomer wealth that will be passed on since they tend to outlive their Baby Boomer husbands by an average of six years.  And bigger gaps in the age of the man and woman in a marriage is becoming more common and spells even longer periods of widowhood.  Knowing what to do with that wealth and how to avoid ever-present scams to separate them from that wealth is critical.  Sadly, most financial advisors are Caucasian males, nearly half of them over age 50.  And as the Washington Post recently reminded us, a 2009 study by Boston Consulting Group found financial services “the industry least sympathetic to women”.  Women report being ignored in meetings they and their husbands have with their financial advisor.  The advisor doesn’t even talk in her direction or make eye contact with her.

No wonder women feel sidelined and maybe a bit reluctant to engage with an advisor to learn more about handling money.  Who wants to be treated as second class?  To them, I say seek out good teachers and good classes.  They are out there.  Being a good listener, regardless of sex, is an absolute prerequisite for the person you select to trust.

And speaking of trust, don’t discount your own instincts, ladies.  A study by the investment firm Fidelity found that women on the whole are better investors than men.  They are naturally more cautious and do not panic sell when markets drop.  Their buy-and-hold strategy is a known best practice for building wealth in the long term. 

Men?  Well, maybe we should be asking for more directions. 

Until next time,

Roger

“Don’t ever think that you are wise enough, but respect the Lord and stay away from evil.”  Proverbs 3:7 CEV