Many studies conclude that women make better investors than men. Many men belive that they can ‘beat’ the market. Sadly most if not are end up very disappointed. There is no substitute to building a prudent portfolio and remaining disciplined to the strategy. The stock market is the greatest wealth creating tool ever if properly used. Women appear to understand this.

There are two sides to saving for retirement: what you put in, and how you invest that money to make it grow. And one of the fundamental factors in investment returns is risk. That’s why few advisors recommend a risk-free portfolio, especially for younger investors.For women, however, biting the bullet often isn’t a strong suit. Only 26% of them feel confident in their investing ability — compared to 44% of men — according to a 2011 survey by MassMutual Financial Group. As a result, women trade less frequently, hold less volatile portfolios and expect lower returns than men do.

Studies about women investors tend to show that their cautious nature can help them outshine men, but those results are generally calculated on a risk-adjusted basis. What that means is that while women may be getting good results based on the low-risk investments they choose, their risk avoidance may also be causing them to leave money on the table.

[Investing Answers Feature: 5 Reasons Why Women Fear Retirement]

This may be true of not only women but most retirement plan participants. There are many kinds of risk with capital risk receiving the most attention. There is also inflation risk, credit risk and longevity risk to name just a few. The other 5 reasons are worth investigating.

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