There’s a lot of talk in financial services about the Great Wealth Transfer, the trillions of dollars in assets that will pass over the next two decades from parents and grandparents to their heirs, many of whom are in their 20s, 30s and 40s. What is seldom mentioned is how many of those transfers will be horizontal, between spouses — specifically, from men to women.
According to Cerulli Associates, the Great Wealth Transfer over the next decade is expected to be substantial. Cerulli projects that wealth transferred through 2048 will total $124 trillion. Of this amount, $54 trillion is expected to be passed through inter-spousal transfers to widows, with more than 95% of this wealth going to women
Mature, high-net-worth women age 60 and up have unique needs and interests. Meeting their expectations will be an opportunity and a challenge for financial advisors, many of whom will play an important role for months after assets are transferred.
While many of these women may be financially savvy, others may be making decisions about money for the first time. A financial advisor who previously established a relationship with a client’s spouse might find a client more receptive to their advice.
However, if the wife wasn’t available or engaged in the family’s finances, an advisor is still likely to have an opportunity to provide guidance if they make a determined effort to learn about her own concerns, interests, and priorities.
After all, death is a life event that often prompts survivors to take stock of their lives and reprioritize how they want to spend their time and money in a way that might diverge from their spouses’ interests.
An inheritor of high net worth is likely to be well educated, highly engaged with her family and community, and interested in charitable giving. Earning her trust requires clear communication, excellent relationship-building skills and the offer of diverse money-management strategies.
I like to picture these wealth holders as Aunt Viv, the character from the 1990s sitcom “The Fresh Prince of Bel Air”— whip smart, active and concerned about looking out for her family and the future while making a difference with her wealth.
In one respect, the mature high-net-worth woman is no different than any other client: If her priorities are not understood and served, she won’t hesitate to switch advisors.
What are the best ways to engage these important wealth holders and meet their needs?
1. Take a holistic approach.
Demonstrating value beyond investment management is important. Because many women will be concerned with their entire financial picture, it makes sense to lead with financial planning and help clients understand their cash flow situation.
A newly widowed spouse may be paying bills and preparing to pay taxes for the first time, so make sure they have the tools to manage their money on an ongoing basis.
More knowledgeable clients may be interested to hear about estate planning, market shifts, portfolio construction, setting up wills or trusts or other investment options or ways to approach philanthropy. Perhaps they have questions beyond investing, such as how to take that bucket list trip with extended family.
2. Ask, listen and include other family members.
Providing for the family is often a top concern for mature high-net-worth women, so questions regarding estate planning and trusts may be early concerns. Advisors need to provide a sympathetic ear and ask pertinent and sometimes difficult questions.
Relationship-building is key: It’s important for advisors to dig deep to learn about a client’s priorities and understand how she wants to leverage her wealth for loved ones, her community and the world. (Keep in mind that, according to Cerulli Associates, $18 trillion of the money that gets transferred in coming years is expected to go to charity.)
Advisors should ask if it’s OK to invite other family members to meetings.
Holding “ask me anything” sessions with a client’s family can be a great starting point toward establishing multigenerational ties.
Alternatively, an advisor might let family members know he or she is available for occasional, brief discussions with adult children when they are applying for a mortgage or mulling their own investment decisions, another good way to build next-gen relationships. The goal is to demonstrate that the advisor has wide-ranging expertise and is a resource for the entire family.
3. Offer unique value.
The advisors I know who excel with clients in general — and particularly with high-net-worth women — are masters of the personalized professional touch: phone calls on important anniversaries, holiday gifts and invitations to exclusive events or investment seminars. An advisor with genuine warmth who cares about the client will earn loyalty from this crucial demographic.
This personalized approach naturally extends to investment advice. Many female investors want to understand the “how” and “why” behind financial decisions, valuing transparency and a sense of collaboration. Advisors who take the time to educate clients, regardless of gender, on the full spectrum of investment options can build deeper trust.
These options might be tied to specific areas that express a particular point of view or reflect a client’s personal interests, such as sustainability, innovation or community impact. They can also serve to round out an existing portfolio in a way that feels intentional and aligned with the client’s values.
A personalized approach signals that the advisor is truly listening and reinforces that the client’s goals and perspectives are genuinely valued.
In short, the rise of female-controlled assets continues to outpace the market. This significant shift in control presents a unique opportunity for financial advisors who have the ability and desire to connect with female investors and provide them with a personalized experience.
Those who fail to engage with this niche group risk losing out as this emerging demographic shapes the future of wealth management.
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Aneri Jambusaria is the group managing director of Wealth Management for LPL Financial.
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