It won’t remain this way.
There is no denying the fact that women are the future of wealth management. Thirty trillion dollars says so.
According to BCG, “96% of males…base their investment decisions on an asset’s track record for growth and yield.”
EF finds that, “Unlike men, women view achieving their personal goals as more important than investment performance.”
“Men place a stronger focus on historical performance and the process for individual stock picking…”
“Women tend to prioritize risk reduction,” concludes UBS.
IPC Private Wealth says, “Most women, seek security over prosperity.”
It’s crystal clear that women value, “… risk reduction and doing good, men place a stronger focus on historical performance.”
McKinsey finds that, “Female decision makers tend to be less risk tolerant and more focused on life goals.”
And, “Women seek hyper-personalized, outcome-based financial advice that meets their real-life goals.”
I think you could describe the difference as ROI versus ROR.
Men care about investment, growth, yield, performance and stock picking.
Women care most about having an authentic relationship.
Women want to be listened to, have their objectives understood and their investment strategy aligned with their values, goals and priorities.
BlackRock summed it up rather nicely: "Simply put, when it comes to money, women and men today see the world quite differently."
Male advisors should know that women are happy to work with them, as long as these are the qualities that define the relationship. There is no time to waste. With almost 12,000 Americans turning age 65 each day, and the initial “baby boomers" now 76 years of age, retirement income planning needs are going o remain the signature business opportunity for years to come.
I believe the future is bright for financial advisors, including the male majority, if they're just willing to move past the great mismatch.
Author’s Note: You may watch a video that addresses the issues I cover in this article by clicking here.
Wealth2k founder David Macchia is an entrepreneur, author, IP inventor and public speaker whose work involves improving the processes used in retirement income planning. David is the developer of the widely used The Income for Life Model, and the recently introduced Women And Income. David has authored many articles on the subjects of retirement income planning and financial communications. He is the author of two books, Constrained Investor and Lucky Retiree: How to Create and Keep Your Retirement Income with The Income for Life Model.