Understanding the Unique Investment Needs of Women - Part 1
The Evolving Role of Women in Finance
At the beginning of my career as an investment advisor, I encountered a moment that would reshape my journey. Back then, I had worked with mainly institutional clients and had recently made the transition to serving private clients. My clients up till this point had mostly been male. But one day, my schedule included something different—a meeting with a female entrepreneur who I will call Jane Doe.
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She was relocating and needed an investment advisor who understood the complexities of her new environment. This meeting, which at first seemed like just another item on my to-do list, would soon open my eyes to the unique challenges that female investors face, and break down stereotypes that often dominate the world of finance.
Jane was a successful entrepreneur who had recently sold her business and was looking to invest her hard-earned money. She was clearly excited and nervous as we got down to talk about her financial future. Despite her business acumen, Jane felt uncertain about how to make decisions that would secure her financial future.
This experience with Jane highlighted something I’ve seen time and again in my career. Numerous women, despite their intellect and success, frequently feel underserved by conventional financial advice. We face unique challenges and have distinct goals that aren’t always addressed by the conventional, one-size-fits-all approach of the financial industry. It’s encounters like these that have inspired me to go deeper into understanding the unique investment needs of women and to help close the gap between traditional financial advice and what women really need.
Our four-part blog series is called "Understanding the Unique Investment Needs of Women." This is the first instalment. Over the next few weeks, we will explore how women's roles in finance are changing, the unique challenges they face, and the role of tailored investment strategies in achieving financial success. But first, let’s explore how women's roles in finance have changed over time and why this is important for women and the financial advisors who serve them.
The Evolving Role of Women in Finance: A New Era of Empowerment
The role of women in finance has drastically changed in the last few decades. historically, men were typically the ones who make financial decisions, with women taking on a more supportive role. But there have been substantial changes to this dynamic. In addition to actively participating in financial decisions, women are increasingly playing a major role in wealth creation and management.
Recent research indicates that women control over $10 trillion in household financial assets in the United States; this amount is projected to increase as more women take on leadership positions, launch businesses, and enter the workforce. In Europe, we are seeing a similar trend. Women control roughly a third of assets under management in Western Europe. This change is a reflection of shifting social standards, but it also acknowledges the distinct viewpoints and methods that women bring to investing and financial planning.
Women are increasingly becoming the primary breadwinners in their households, and are more involved in making investment decisions than ever before. However, the financial industry has been slow to catch up. Many traditional financial strategies are still geared toward men, overlooking the unique needs and objectives of women.
Why This Matters:
Financial advisors and the women they serve have to understand the changing role of women in finance. Women frequently approach risk and investing differently from men, have different financial goals, and face different challenges. For example, women need to plan for a longer retirement because they tend to live longer than males. Additionally, they are more likely to take time off from work to care for others, which may have an effect on their long-term financial security.
The first step in creating financial strategies that truly meet the needs of women is acknowledging these differences. Financial advisors must take into account the unique circumstances and objectives of their female clients in order to assist them in achieving financial stability and independence. It’s simply not enough to just use the same advice that works for men.
What’s Next:
Next up in this series, we'll go into more detail on unique financial challenges that women face. We'll examine how various factors, such as the gender wage gap and the effects of career breaks, affect women's financial planning and offer solutions for overcoming these challenges.
Stay tuned as we dive deeper into the ways that customised investing strategies can help women in achieving their financial objectives and navigating the complexities of financial planning.
The world of finance is evolving, and women are leading this change. Financial advisors can play a critical role in enabling their female clients to take control of their financial futures by being cognisant of and responsive to the unique needs of women.
Join us on this journey as we uncover the insights and strategies that can help women thrive in today’s financial landscape.
Make sure to subscribe and follow this series if you’re interested in learning more about how to tailor financial strategies to meet the unique needs of women.
Share your thoughts in the comments below—how have your financial needs been met (or unmet) by traditional financial advice?
Have a great week ahead,
Maryann
Disclaimer
The content in this newsletter is for informational purposes only and does not constitute financial, investment, legal, or medical advice. Opinions expressed are those of the author and may not reflect the views of affiliated organisations. Readers should seek professional advice tailored to their individual circumstances before making decisions. Investing involves risk, including potential loss of principal. Past performance does not guarantee future results.