According to the Small Business Administration 7.8 million of all U.S. private companies are owned by women, which is 29% of all registered businesses. Another interesting consideration that ties into this is that more than one-third (37%) of the affluent population of North America is female. Forty-two percent of women say their wealth comes entirely from their own salary however, fewer than 20% of affluent women work with a Financial Advisor.* This suggests a significant disconnect between what affluent women want from their Advisors and what they are getting. Included in a recent paper Women of Wealth; Why Does the Financial Services Industry Still Not Hear Them? published by the Family Wealth Advisors Council, were findings from a study that women are dissatisfied with their advisors and their experiences; many of them expressing a sense of disrespect and condescension from those they worked with. According to the paper, it is estimated that two-thirds of the nation’s wealth will be in women’s hands by 2030. Yet, the more common neutral-gender approach to financial planning and investment advice fails to serve the more pressing and relevant needs of women. An analysis of my full-service clients at the end of last year revealed a growing number of female professionals being served. Perhaps they are seeking someone who understands how they perceive risk and their unique financial needs later in life? Maybe they seek a partnership emphasizing respect and trust?
*Financial Advisor Magazine March 2012
