How Advisors Can End the Real ‘War Against Women’

Not only is it widely known that women are a missed client market, but it’s also known that they control $8 trillion in assets in the U.S. according to TD Ameritrade Institutional. Other studies show that women are most likely to control much of the assets owned by their husbands at some point in retirement (remember that 90% number earlier).

So what should advisors do to help narrow the gap? For starters, treat wives like they matter, even when they’re not directly making the decisions. A 2010 study by The Boston Consulting Group found that most women feel that wealth managers could do a better job of meeting their financial needs. You may think that you are meeting your client’s financial needs already, but take a closer look. Even if you are working primarily with the man of the household, spend an equal amount of time communicating and working with his spouse to build a relationship since it could ultimately be her you end up working with down the road.

Create a community of female clients to attract new ones. I recently read a study from the Family Wealth Advisors Council (FWAC) that said women are dissatisfied with the financial services industry, and many are convinced that “their gender is a key factor in the disrespect and condescension” they encounter. If your female prospects have a predisposed feeling that their relationship with you will be difficult due to their gender, that’s a huge issue, especially when you consider that every woman in this particular study were known or perceived to be affluent (as defined by having a net worth of over $1 million). Ask female clients that are satisfied with your working relationship to become references for new and potential clients. Women are community oriented, and knowing you have clients already happy with your services who are similar to them can make a big impact on their decision to work with you.

Communicate differently with women than you do with men. Financial professionals have a tough role: they must be chameleons, mirroring their clients’ communication styles. When I ran a hedge fund years ago, I offered investing workshops specifically for women. It was an eye-opening experience in that it taught me how women respond to a different message than men. According to Ruth Hayden, author of For Richer, Not Poorer: The Money Book for Couples, women tend to be more concerned about things that relate to their family’s wellbeing and comfort on a day-to-day level, whereas men tend to make purchases that are investments that have the potential to appreciate over time. When communicating with your female clients, be sure to talk about what matters to them. One advisor shared with me how she would ask her female clients about important memories that could be tied to their financial goals and money. These non-tangible experiences tend to matter more to women than the chase of a higher return.

The economic war currently affecting women is one in which you can play a critical role. By reaching out to women, you can effectively improve your relationships with them, which can ultimately lead to growth in your business. More than that, however, by choosing to work with women, you are helping to stop the problem from growing, thus helping to close the gender gap. By doing so, you are creating better clients who will have more assets to invest. You are also changing the way women approach financial planning so that they are more likely to seek guidance and a better understanding of their investments.