The research shows that women do not care about the gender of their advisors—they care whether the advisor can be trusted. So Spectrem says, “Don’t automatically push your female clients to female advisors. They may be offended. Introduce them to the advisor that they perceive has the most experience.”
Wealthy women investors are less concerned than men with the latest investment return of their portfolio. Do not worry about a number; instead, think in terms of goals. What women really care about is the specific amount they will have to live on during retirement. This could be based on an annual amount or a monthly amount. The recent investment return must be related to their long-term goal of financial security, Spectrem says.
The study also shows that most women believe they are adequately prepared for retirement, but they fear that a health catastrophe might derail their financial security. A little more than a third of those surveyed have purchased long-term care insurance, and the percentage increases for those in the WWII generation to 58 percent.
Advisors should not fear broaching the subject of future health needs. Spectrem says baby boomers are ready to have a discussion about long-term care or other alternatives that are appropriate for them should a health crisis occur.
Advisors also can go beyond the portfolio and help clients plan for activities during retirement, and they can help them ease from full-time to part-time work and eventually into retirement.
“Women investors will represent the largest percentage of investors in the next few decades. It’s important that financial advisory firms reassess how they provide financial advice, as well as the type of financial advice that will be required in the future,” Spectrem says.