The experts expect private wealth in the country to rise from $14 trillion to $22 trillion over the next five years, with women in control of two thirds of that amount. But during a recent conference of financial advisors, they agreed that “We’re doing a horrible job working with women as a whole,” according to the publicly aired conference report.
In the past, males largely dominated the management of family finances, but roles have been undergoing alterations over recent decades. In 40 percent of American households today, women are the breadwinners. A lingering perception that financial advisors cater more to men has been a deterrent, the experts agreed. And studies show that the perception is based on fact, they said.
Even when couples seek financial advice, men are the primary contact in 58 percent of cases, the studies say. Many women who find themselves widowed do not continue the relationship their late husband had with a financial expert. Seventy percent of the widows no longer seek advice after the first year.
An imbalance between males and females in the ranks of financial advisors is a significant factor. Only 30 percent of those in the field are women. Most women seeking advice say they would prefer to work with a woman. Although basic goals among advisors is the same, males approach financial planning differently from women. Females tend to put more emphasis on empathy and education when they seek advice and feel more comfortable with an advisor who shares those values. One of the top 100 female financial advisors, Karen McDonald, works for Morgan Stanley and she controls $21.2 billion dollars worth of assets.
Some large financial advising companies are catching on and hiring more women to deal with their female customers. That sometimes means working around the employee’s home and family demands, said Cathy Curtis, who is a certified financial planner for a large firm. She does her job while rearing a family of four children. But when women advisors can be accommodated, there are overall benefits for the workplace, she said.
The industry is making adjustments, taking pains to let women know of opportunities in the field and then trying for balance in their staffs. With two-thirds of the private wealth in the country as incentive, they are making inroads into the problem of bringing good advice to women clients.