Kelly Haffner on Navigating the Great Wealth Transfer

The Great Wealth Transfer is coming, shifting an unprecedented amount of assets into the hands of U.S. women.? Stifel’s Wealth Planning team is perfectly primed to work alongside our advisors to help clients navigate this change.

Men, by and large, have been responsible for wealth management for decades – and that goes beyond the financial advising profession.? Even today, men in the United States control two-thirds of total household financial assets, leaving women responsible for a third of financial assets, or $10.9 trillion in assets.? However, the greatest generational wealth transfer in history is on the horizon and spells out major changes.

Women and the Wealth Transfer

The upcoming wealth transfer is poised to reshape the financial landscape significantly.? Baby Boomers, having accumulated substantial wealth during their careers, now control about 70% of US affluent-household investable assets –?and they are passing on a staggering $68 trillion, with women expected to be major beneficiaries, receiving inheritances both from older spouses and parents.

This changing dynamic reflects a broader trend of women taking on more prominent financial roles.? Although the ongoing gender wage gap has American women earning $0.82 per every dollar earned by men, and it often falls on women to take time off to care for children or elderly parents, more women are entering corporate America, attaining C-suite positions, and increasingly making financial and investment decisions – 30% more women were making financial and investment decisions in 2020 compared to 2015, and women are responsible for over 70% of consumer purchasing.

“This wealth transfer will help women continue to push forward in their ability to participate equally in the economy and increase their economic decision-making power at all levels, be it individually, within households, or within institutions,” says Kelly Haffner, a Wealth Strategist at Stifel.

However, considering the historical role of men as both the primary decision-makers in households and as financial advisors, many women aren’t necessarily primed to manage the significant amount of wealth they’ll inherit, as they likely have limited investment experience and lack the financial literacy required to maximize their inheritance’s potential.

That’s why the right estate planner and financial advisor can make all the difference.? With assistance from experienced professionals, women can create and use customized financial plans that align with their values and goals, are designed to help them preserve and grow their wealth, and ensure they are set up for longer retirements (the average American woman lives six years longer than the average American man) and high healthcare expenses.

Financial Advisors and Estate Planners

Estate planning is crucial when managing inherited wealth, as it ensures that assets are distributed according to the inheritor’s wishes, minimizes tax liabilities, and provides financial security for future generations.? Compared to men, women are more likely to turn to a professional for advice, and they’re more likely to prioritize life goals, avoid major risks, and emphasize personal connections.? In fact, 70% of women will change financial advisors within a year of their partner’s passing because they want a better fit, a deeper connection, a more personalized experience, and more outcome-based advice –?and it’s hardly surprising.

“I’ve noticed that the husband often takes the lead in discussions, possibly leaving the woman feeling excluded from the family’s financial decision-making process,” Kelly shares.? “When their partner passes, women often assume financial responsibility.? They may feel a new, female advisor gives them the space to have their opinions and decisions valued.? However, I don’t necessarily think this should be the case, as I believe all advisors should provide an empowering environment where every client feels confident to make financial decisions.”

Luckily, Kelly, the rest of Stifel’s Wealth Planning Team, and Stifel’s financial advisors themselves understand and deliver what women want when it comes to estate and tax planning.

“Our team provides clients with the knowledge necessary to confidently take ownership of their estate planning situation,” she shares.? “Our partnership with advisors is seamless, and we’ve structured our services to simplify intricate legal and tax concepts, making them more accessible and understandable to our clients.”

Not only does this mean answering questions posed by financial advisors and clients, but it also means regularly expanding and improving a library of informational literature pertaining to important estate and tax planning concepts.

“Because we recognize the personal nature of estate and tax planning, we can work with the advisors and review a client’s existing estate plan to provide suggested action items based on the client’s unique circumstances.? And the best part?? All of these services are complimentary to Stifel clients!”

The Stifel Difference

The Stifel Home Office provides financial advisors with the tools they need to meet each client’s individual needs, and Kelly is particularly proud of the work the Wealth Planning Department is doing to facilitate that.

“Our financial advisors guide clients through our goals-based financial planning process, and our estate planning team works with them to help clients navigate the intricacies and complexities of the process,” she shares.? “Our tax planning team is also on hand to guide clients around federal and state income tax laws, while our insurance and annuity team helps protect them from pitfalls they may encounter on the path to financial success.”

At Stifel, we also know that what worked for Baby Boomers won’t automatically translate to the next generation.? After all, young people today are more cautious of the stock market, which is why Stifel’s Wealth Planning team doesn’t solely focus on asset allocation.

“By understanding younger clients’ future goals, we can work with our financial advisors to forge stronger connections and make finance more approachable.? We help clients first paint a picture of their definition of financial success.? Then, we use that picture as our roadmap and help them understand how various financial strategies can turn that picture into a reality.”

A big part of that means ensuring clients are financially literate.

“To make informed decisions that can potentially lead to greater financial stability, less stress, achieving life goals, and more opportunities, clients need a certain amount of knowledge and understanding,” Kelly says.

And while it’s possible to work towards financial literacy independently, Stifel’s clients don’t necessarily have to.? Instead, their financial advisors can help them find information, understand important concepts, and implement strategies that can help them work toward their financial goals.

However, Stifel isn’t just great at helping clients understand their finances.? Stifel also goes above and beyond to meet clients’ needs.

“At Stifel, we believe in safeguarding our clients’ money as if it were our own –?and this powerful principle guides as we adapt to meet their needs in our ever-changing industry,” Kelly says.? “In the Wealth Planning Department, our comprehensive and holistic approach to planning leverages experienced professionals’ knowledge and expertise to address all aspects of individuals’ unique financial situations.”