{"id":3202,"date":"2013-08-11T19:54:32","date_gmt":"2013-08-11T23:54:32","guid":{"rendered":"https:\/\/kerryhannon.com\/?p=3202"},"modified":"2013-09-23T09:25:10","modified_gmt":"2013-09-23T13:25:10","slug":"when-men-should-handle-money-like-women","status":"publish","type":"post","link":"https:\/\/kerryhannon.com\/?p=3202","title":{"rendered":"When Men Should Handle Money Like Women"},"content":{"rendered":"

\"next-ave\"<\/a><\/a>If I suddenly lost my job or was\u00a0walloped by medical bills<\/a>, probably the last place I\u2019d go for money to keep me afloat would be my retirement savings.<\/p>\n

To me, this cash is untouchable. It turns out I\u2019m not the only woman who feels this way.<\/p>\n

Men? Not so much.<\/p>\n

Handling a Money Crisis<\/strong><\/p>\n

Nearly one-third of American men (31%) would consider\u00a0dipping into their retirement funds<\/a>\u00a0to cope with tough times as a result of unforeseen life events.<\/p>\n

But only 23% of women would, according to new HSBC study,\u00a0The Future of Retirement: A New Reality<\/a><\/em>.<\/p>\n

(MORE:<\/strong>\u00a0Male Entrepreneurs Can Learn a Lot From Women<\/a>)<\/p>\n

If I found myself in a real financial bind, I\u2019d cut out the fluff in my spending\u00a0tout de suite<\/em>\u00a0\u2014 vacations, meals out, that sort of thing. I might withdraw cash from my\u00a0rainy-day fund<\/a>. Maybe I\u2019d tap a\u00a0home equity line of credit<\/a>\u00a0on the place my husband and I have lived in for 21 years. In case all that didn\u2019t do the trick, I\u2019d start selling valuable possessions, such as artwork or jewelry and my car.<\/p>\n

Different Views on Downsizing<\/strong><\/p>\n

I\u2019d even be open to putting our place on the market and moving to somewhere smaller and less expensive (if my husband agreed). About a quarter of women would consider\u00a0downsizing their homes<\/a>\u00a0to deal with a financial difficulty, the HSBC study said. Just 14 percent of men would, though.<\/p>\n

A Costly Money Mistake for Men\u00a0<\/strong><\/p>\n

Seems to me, based on this report, that men could learn a few things from women when it comes to handling a financial emergency.<\/p>\n

Extracting money from your retirement plans before age 59\u00bd, which men are more prone to consider, can sock you with a\u00a0hefty tax bill and a 10% penalty<\/a>. Not to mention that this move will diminish your savings unless you can recoup the money in the future. And why is there such an aversion to selling your home in order to downsize, guys?<\/p>\n

(MORE<\/strong>:\u00a0Money Tips to Make It Through a Layoff<\/a>)<\/p>\n

\u201cFrom my experience, women see money as something static, scarce and finite,\u201d\u00a0Eleanor Blayney<\/a>, the Washington, D.C.\u2013based CFP (Certified Financial Planners) Board Consumer Advocate, told me. \u201cWhen it\u2019s gone, it\u2019s gone. Men see it rather as a renewable resource. When you run out of money, you go out and get more.\u201d<\/p>\n

Blayney mused that the difference is probably a legacy \u201cfrom the times when men\u2019s work was to make money, and women\u2019s work was to stretch the money she was given.\u201d<\/p>\n

5 Money Moves Men Could Learn From Women<\/strong><\/p>\n

I asked Blayney and a few other financial planners what else they thought men could learn from women if times were tough. Here\u2019s what they said:<\/p>\n

1. Get serious about cutting back on discretionary spending<\/strong>\u00a0Brian Schwartz<\/a>, a vice president and financial adviser at HSBC Securities in the New York City area, said he\u2019s found that women and men both reduce expenses in hard times. The big difference: \u201cMost women clients\u00a0trul<\/em>y cut back whereas men seem to be a bit more selective,\u201d said Schwartz.<\/p>\n

2. Check your ego<\/strong>\u00a0Planners told me men tend to get caught up in the status symbols of money and don\u2019t want anyone to know they\u2019re in a rough patch.<\/p>\n

Men typically don\u2019t want to sell the house or give up the country club membership, said certified financial planner\u00a0Lynn Ballou<\/a>, managing partner at\u00a0Ballou Plum Wealth Advisors<\/a>, in Lafayette, Calif. \u201cThey want to maintain the aura that everything is fine.\u201d<\/p>\n

That\u2019s why men are more eager to dip into their retirement funds. \u201cTapping a liquid retirement account is very private and easy to do. You don\u2019t even need to tell your wife,\u201d Ballou said.<\/p>\n

When I asked some of my male friends how they\u2019d handle a financial setback, they echoed what I\u2019d learned from the planners and the HSBC study. \u201cIf I want to tap my retirement accounts, that\u2019s my prerogative,\u201d said one. \u201cIt\u2019s fast, and I know I\u2019ll pay it back. Plus I don\u2019t have to ask anyone\u2019s permission. It\u2019s my money.\u201d<\/p>\n

3. Assume you\u2019ll live longer<\/strong>\u00a0One reason women shy away from raiding their retirement accounts may be their fear of outliving their money. \u201cWomen are more worried about the sustainability of retirement savings than men in general, knowing that they are\u00a0more likely to live longer<\/a>\u00a0and have higher medical and care expenses as a result,\u201d Blayney said.<\/p>\n

But men are also living longer than in the past, so they need to view their retirement savings accordingly.<\/p>\n

4. Prepare for the worst-case scenario<\/strong>\u00a0Men tend to be more confident that everything will work out and about their ability to invest successfully, said\u00a0Eileen O\u2019Connor<\/a>, a managing principal at McLean Asset Management Corporation in McLean, Virg. Conversely, women often assume things could go awry and plan for that possibility.<\/p>\n

5. Ask for financial direction.<\/strong>\u00a0We all know that guys are less likely than women to ask for help if they\u2019re lost. The same often goes for when they\u2019re in trouble financially.<\/p>\n

Women, by contrast, are quick to look for advice to help them out of a jam. \u201cWhen things go wrong,\u00a0bam! \u2014\u00a0<\/em>we reach out to our network and our community for help and support,\u201d said Ballou. \u201cWe\u2019re are on the phone, on e-mail, gathering our peeps, reaching out to everyone we know for advice and to think of solutions. We will listen to all the possibilities.\u201d<\/p>\n

O\u2019Connor is a big proponent of evaluating all your options during a financial setback, regardless of your gender. These include adjusting how much you\u2019ll spend in retirement, working longer and leaving less money to your heirs.<\/p>\n

What Women Should Do\u00a0<\/strong><\/p>\n

The HSBC study did find one thing women must learn to do so they\u2019ll be better prepared for emergencies: Save more money when everything\u2019s going\u00a0well<\/em>.<\/p>\n

\u201c<\/strong>In my experience, women generally do not dramatically increase their discretionary spending during good times,\u201d said Schwartz.<\/p>\n

Point taken.<\/p>\n

\"Kerry<\/a>Kerry Hannon<\/a>,\u00a0Contributor<\/p>\n

Kerry Hannon has spent more than 25 years covering personal finance for Forbes, Money, U.S. News & World Report and USA Today. Her website is\u00a0kerryhannon.com<\/a>. Follow her on Twitter\u00a0@kerryhannon<\/a>.<\/em><\/p>\n

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