Financial adviser Khloe Karova counsels her mostly female clients on a lot more than investments: career strategy, salary negotiations, budgeting - even life goals. She has been known to make house calls to keep them on track, questioning big-ticket purchases such as cars that haven't been accounted for ahead of time.
"I have women across many different generations and backgrounds," says Karova, a Chicago-based adviser with $25 million under management. "I solve problems through the lens of finances."
Karova's holistic approach toward her clients, most of whom are accumulating their wealth, is just one of the ways financial advisers are offering more comprehensive services to cater to the distinct needs of women, among the fast-growing groups of investors.
The emphasis on women comes at a time when women in the U.S. outlive men by an average of six years, according to the Centers for Disease Control and Prevention. That means women whose husbands die before them suddenly might have to take control of their family's finances.
It might sound cliché, but to resonate with the growing ranks of financially independent women, advisers need to find ways to better connect with them. They have different demands and preferences than male clients.
A Personal Connection
First and foremost in an advisory relationship, female investors look for good listeners, followed by problem solvers and technical investment experts, according to research conducted by Hannah Shaw Grove, an expert on private wealth management who has surveyed high-net-worth investors.
They also cite bad personal chemistry as a deal breaker, which makes the first meeting - when emotional bonds typically are formed - crucial, advisers say.
"Our goal is to let them talk more than we do," says Patricia Farrar-Rivas, the San Francisco-based managing partner of Veris Wealth Partners, a national wealth management firm with roughly $650 million of regulatory assets under management. "They want dialogue. They want to be listened to and treated with respect."
Women often come to the table with more questions than their male counterparts do and frequently prepare for the initial meeting, says Farrar-Rivas. By the time a woman meets an adviser for the first time, she has likely done research online and talked to friends and acquaintances about the firm, its strategy and potential investment choices.