As women continue to gain control over the world’s wealth and also to outlive their spouses, advisors are falling behind in addressing their investment management needs. It doesn’t take long for women to hire a new advisor after their husbands’ deaths. In fact, 70% move their assets within a year. Women make 80% of all consumer purchases and start businesses at twice the rate of men.
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There are more women investors than men. Yet advisors are not catching on to the opportunity within this lucrative market. Why?
It’s not that women are demanding anything advisors should not already be giving their clients. They want advice that is tailored to their specific needs. And it’s not like advisors have to actively seek them out. Significantly more women than men are proactive about eliciting financial advice.
Subgroups within the female population can clue advisors in on what they need from an investment planning perspective. There are single moms trying to balance parenting with being an entrepreneur. There are single professional women. As with men, there are children with special needs that require greater funding.
Women will take risks as investors if they see understand the nature of those risks and how they may benefit their overall portfolio strategy. Women have greater retirement income challenges than men since they still make less money for doing the same work. Many women stayed at home for years to raise children, then find themselves divorced with no retirement savings.
Women want advisory relationships of high trust. It makes sense
that they would not want to stay with an advisor associated with a former marital or other relationship where trust was a lacking component. Women are excellent referral sources and are worth taking the time to develop investment relationships at very high levels.
Like adapting to the needs of younger generations, adapting your practice to address the various needs of women investors may hold the key to your future business success. Providing them solutions that make sense relative to their particular needs is the perfect place to start.