How Advisors Can Serve Women Investors: 5 Best Practices

From the beginning, women are told they are bad with money.

Young girls are told that math is not their strong point.

They are told they lack confidence with investing.

All of this is furthest from the truth.

But here's the thing: the message matters.?

Especially when that message is repeated over and over.?

Girls are taught to save their money, while boys are taught how to build their wealth.

• Women earn 82 cents to every dollar a man makes. That means women and their money have to work much harder to attempt to reach the same goals.?
• Women have to work 42 more days annually to make as much money as men do.
• On average, women pay 7% more for products that are marketed specifically to women, such as razors, tampons, shampoo, and other similar items. This additional cost is commonly referred to as the "pink tax". Over the course of a woman's lifetime, this could add up to $82,000 or more in extra expenses.

Women aren’t bad with money - they have less of it to work with in a system that is set up to hold them back.

"From childhood, we’re conditioned to believe we’re bad at money. Bad at math. Bad at investing. Bad at saving. We buy lattes and shoes instead of houses. We’re risk-averse, so we miss out on creating generational wealth. We just need to lean in and hustle harder." Ellevest

Let's stop this narrative.?

Women are good with money.

Women are confident with money.

Women know exactly what they want.

Women have expectations of how they want to be served.?This means a change needs to happen. How? The industry needs to listen and invoke action.

“Firms who take the time to understand women’s personal investment goals and build those aspirations into a detailed plan reap important rewards in terms of client loyalty.”

Advisors can serve women investors better by following these 5 best practices:

1. Understand Women’s Needs and Goals

Women often have different financial priorities and concerns than men, such as longer life expectancy, caregiving responsibilities, and wage gaps. Advisors should take these factors into account and customize their advice accordingly.

2. Involve Both Clients

Advisors who are serving a married couple need to speak to both partners. Both need to be addressed. Both deserve recognition. Both should receive any and all communication. If you have a CRM, both spouses' profiles should be fully filled out. Both need as much time and energy spent with them.?

3. Break Down Barriers

Women may face barriers to investing and growing their wealth. Advisors should work to remove these barriers and make investing accessible to all their clients.

4. Provide a Supportive and Inclusive Environment

Women may feel intimidated or uncomfortable in traditionally male-dominated financial environments. Advisors should create a welcoming and inclusive environment that helps all clients feel comfortable and confident in their investment decisions.

5. Yes - Relationships Matter

Women are often more relationship-focused and value personal connections when it comes to their finances. This means that financial advisors should take the time to build a strong rapport with their female clients and create an open and honest dialogue. By understanding their clients' unique needs and goals, financial advisors can provide personalized advice and support that reflects their clients' values and priorities.

Women refer advisors at a rate of 4-to-1 as compared to men.

This just goes to show how much female clients matter in the financial advisory industry.

This highlights the need for advisors to really understand and cater to the specific needs of their female clients. It's not just about understanding the numbers and market trends, but also the importance of relationships and trust-building.

It's time to move away from that narrative that women are bad with money and instead focus on the solutions that can help them achieve financial success. Financial advisors should be proactive in advocating for their female clients and working to remove systemic barriers that may hinder financial success.?

It's time for a change in the financial industry, and it starts with financial advisors who are willing to listen and take action to better serve their female clients.