While women are set to become “double inheritors” of over $100 trillion in the upcoming largest wealth transfer, research shows many begin investing later than men. Financial advisors have an opportunity here to engage and grow their wealth, says investment manager Capital Group.
Although women hold over $10 trillion in household financial assets, nearly 40% are likelier to start investing after age 35 compared to men, according to Capital Group. Further, Capital Group’s survey of 814 women found that 26% say they lack the funds needed to work with an advisor and one in three describe their financial situation as complex and stressful.
Firms have an opening here to engage clients through social media and online marketing, two avenues that research shows women take when searching for financial advice.
“Dedicating more resources to their digital footprint may help advisors connect with a greater number of women investors,” writes Capital Group in its report.
Capital Group’s research also highlights strategies advisors can use to engage women clients, including growing their online presence; framing their services in terms of value after cost; appealing to women’s aspirations like financial freedom instead of marriage or growing a family; and categorizing women’s communication preferences, like prioritizing phone calls for check-ins and in-person meetings for larger discussions. Advisors should also lead with questions rather than directives when speaking to clients.
“Our research shows that financial advisors can bridge the investing gap between women and men by changing how they market to, and communicate with women, many of whom are hesitant to seek advice,” said Wassan Kasey, senior vice president and advisor practice management consultant at Capital Group. “Marketing online and through a woman’s social networks, appealing to her financial aspirations, and clearly communicating the value of your advice versus its cost can help overcome this hesitancy.”
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.