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Not All Women Are Client Material

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Not All Women Are Client Material

Women are getting a lot of press these days and in many ways that is a good thing. However, some of the coverage sends the wrong message to financial advisors. When they read the latest research that says women: “earn less”, “don’t save enough”, “take less risk” and “don’t invest” their natural inclination is to conclude that women are not a worthwhile target for their practice. 

This is a big mistake – albeit understandable.

Because equally valid research indicates that women are a financial powerhouse, that they represent more than half of all university graduates, that they make 85% of all purchasing decisions and that they control more money than ever before in history.

Where is the disconnect?

The reality is that yes indeed many women still lag in wages and recognition but the number of women at the top end are growing – and some of the old paradigms are based on research that reinforces unconscious biases about women and their relationship with money.

Nevertheless, like males as a target, not all women are client material either, actually only about a third are likely to be client material. But that third, HNW females, represents an enormous opportunity in terms of dollars.

Related: Where Do I Find HNW Women?

When you look at women who have the means and ability to invest, a very positive picture emerges – women have a lot of wealth to their name, they are as comfortable with risk as the men, they invest and like having help, and are better investors than men.

  • Women directly control almost 40% of all wealth and are in line to inherit the other 60%. Financial companies that ignore or disrespect them will be out of business.
  • When it comes to risk tolerance, research shoes that HNW women’s behaviour is tied more to being “wealthy” than being female. The slight difference is that they want to know more about the risks they are taking to feel comfortable.
  • Women with wealth do invest and more than half of them are confident about their future financial well-being. They aren’t looking for a man to “take over” where their husbands left off.
  • As investors, women do better than male investors. Enough said.

Our advice to financial advisors is, “disabuse yourselves of the notion that women are not a desirable target.”  Because the results of much of the research about women and money represent only some women not all. In fact, the HNW women that advisors are eager to get as clients expect to be treated like any HNW client, they do not want to be targeted as women.

To learn more about how to attract, retain and generally better serve women, visit www.strategymarketing.ca. We have insights, guidance and our personal expertise related to women who invest.

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