We’re busy putting together a panel discussion next week for our local Financial Planning Association on the enormous strides women investors have made over the last three decades.
Women have gone from being the silent partner at the table, to the primary breadwinners and financial decision-makers in almost half of all American households.
On a global basis, women currently control more than $20 trillion in investment wealth. 45% of American millionaires are women. By 2030, it is projected that roughly two-thirds of the nation’s wealth will be in the hands of females.
Our panel discussion next week will focus on how women investors often differ from men in terms of why they invest, how they make financial decisions, and how they communicate.
One client’s advice
Here’s an observation that one of our female clients shared with us the other day.
She told us that one of the reasons she left her previous financial advisor was because she felt he rushed her to make decisions. “He tried to make sure I never had the time to get other opinions before making important decisions,” she complained. Plus, she felt he underestimated her level of understanding and intelligence, even if she wasn’t always up-to-speed with all the latest financial jargon and investment products.
She reminded us how important it is – especially for most women investors – to take time before rushing into things. Women often like to consider all aspects of a decision before making up their minds, and discuss the options with friends and family. These informal “kitchen table” sounding boards may not always have the highest level of financial expertise, but they are experts at understanding one thing – you. And the advice and guidance they provide can be invaluable.
Many women we work with like to run ideas past the grown kids, or a partner, because seeking that additional input gives them more confidence as they make important decisions about how or where to live, how to finance their retirement, or ways to help care for loved ones. It’s not a sign of indecisiveness; it’s just a desire for additional feedback so they can consider all sides of the equation before making a final decision.
The Takeaway: Women investors often think differently from men. If you ever feel as a woman that you are not being taken seriously, or treated with respect, the problem isn’t you, or your level of financial knowledge. The problem is you’ve got the wrong advisor. And there’s an easy solution for that. Find a new one.