Latest news with #femaleinvestor

Forbes

What's Worth Up To $60 Trillion? Learning To Serve Women Investors

Let's be clear: wealth management is at a tipping point—and if you're not paying attention to women, you're leaving serious money—and growth—on the table. McKinsey's latest report, 'The New Face of Wealth: The Rise of the FemaleInvestor,' reveals a game-changing truth: women now control roughly one-third of retail financial assets in the U.S. and Europe, totaling about $60 trillion. That's not a trend; it's a seismic shift that's only going to accelerate, with women's share expected to hit 40 to 45 percent by 2030. Despite the surge in female-controlled wealth—up 51% since 2018—more than half of these assets aren't being actively managed by financial advisors. That's over $10 trillion in opportunity, largely overlooked. For advisors who can meet women on their terms, the path to growth is wide open. If your practice hasn't made women a strategic priority, now is the time to start. Here's how… $60 Trillion and Rising: The Female Wealth Revolution McKinsey's research attributes women's financial power and growth to a mix of social changes and economic independence. More women are heading households, building businesses, inheriting wealth, and living longer than previous generations. Factors such as declining marriage rates, increased divorce rates, and a growing population of financially autonomous single women contribute to this shift. Additionally, women's educational achievements and access to higher-paying roles continue to rise, enabling greater wealth accumulation irrespective of marital status. Women are shaping their financial futures with a broader view that blends wealth preservation with purpose and legacy. McKinsey's findings reveal growing financial confidence among women—between 2018 and 2023, financial comfort among European women rose from 45% to 67%, driven largely by millennial women. U.S. women under 50 showed a similar boost, from 48% to 61%. This transformation means wealth managers must rethink their approach—not just add women as an afterthought, but redesign strategies to engage, educate, and empower this dynamic client segment from the ground up. Strategy #1: Cultivate Authentic Relationships Beyond Transactions Women seek trusted advisors who listen and provide tailored guidance, not just product pitches. Building genuine, ongoing relationships based on open communication fosters loyalty and creates a foundation for deeper collaboration. Take time to understand what success looks like for each female client—not only in financial terms but also how their wealth supports their life goals and values. This empathetic approach differentiates your service and builds long-term partnerships. As the report emphasizes, women's preferences for advice often differ from men's. For example, 76% of women want at least annual investment advice, with this preference increasing with age. Many women especially value personalized, in-person guidance during major life transitions such as divorce or widowhood. Advisors who build diverse, inclusive teams tend to retain female clients better during these critical moments. Strategy #2: Break the Stereotypes and Personalize Your Approach No two women investors are the same, so it's critical to move away from cookie-cutter solutions. Segment your female clients by their distinct goals, risk appetites, and life stages. For some, growth and entrepreneurship may dominate; for others, wealth protection and legacy planning might be the key focus. Develop customized offerings and communications that resonate with each subgroup. This personal touch signals respect and understanding—qualities women increasingly prioritize in financial relationships. McKinsey's research identifies several female investor archetypes worth considering: - Young, engaged investors – Tech-savvy, cost-conscious, and eager to take an active role in managing their portfolios. - Investment-savvy retirees – Experienced investors seeking high-quality, trustworthy advice. - Pre-retiree guidance seekers – Prefer comprehensive, in-person planning and value relationship-driven service. Tailoring your services and outreach to these varied groups can boost both relevance and long-term loyalty. Strategy #3: Integrate Technology with Human Insight Women investors often value both digital convenience and the human touch. Offering tech-enabled tools for financial tracking and planning can enhance engagement, especially with younger clients who expect digital fluency. However, the report stresses that meaningful conversations and expert guidance remain vital. Balance technology with regular, thoughtful advisor interactions to deliver a holistic client experience. Strategy #4: Empower Through Transparent and Collaborative FinancialEducation Women often value financial advice that emphasizes clarity, empowerment, and collaboration rather than jargon or high-pressure sales tactics. Offering workshops, webinars, or informal sessions on topics like investment strategies, retirement planning, or estate considerations creates an environment where clients feel informed and confident in their decisions. This approach positions you as a trusted partner invested in their financial goals and independence, encouraging earlier and deeper engagement. It also addresses a key insight from McKinsey's latest research—that many women begin working with financial advisors later than men (for example, 35% of U.S. women start after age 45, compared to 28% of men). By providing accessible, ongoing educational opportunities, advisors can foster trust and build meaningful relationships from the start. Strategy #5: Build an Inclusive Team Culture Diversity within your advisory team can enhance your ability to connect authentically with female clients. A team that reflects varied backgrounds and experiences will bring richer perspectives to client conversations and create an environment where women feel understood and valued. Beyond gender, prioritize inclusivity in all dimensions—including age, culture, and expertise—to strengthen your firm's culture and client relationships. While women do not necessarily prefer female advisors exclusively, McKinsey shows that diverse teams—encompassing gender and other underrepresented groups—have been proven to better retain female clients during major life transitions. Recruiting and mentoring diverse talent not only strengthens client engagement but also future-proofs your firm in a changing demographic landscape. The Path Forward The financial landscape is changing, and women investors are at the forefront of this evolution. For wealth managers, embracing this reality is more than smart, it's essential to sustainable growth. The future belongs to those who recognize that serving women investors is not a niche strategy—it's a fundamental business shift with the power to transform