“W2: Women & Wealth,” the first program in a series hosted by The Jewish Communal Fund Advisor Network, revealed the importance of forging personal connections with female wealth-holders
[dropcap]A[/dropcap]dvisors who serve the growing market of female wealth-holders will see an incredible growth opportunity in the coming decade, according to a panel discussion on the topic of “Women & Wealth” hosted on October 14 by the Jewish Communal Fund (JCF) Advisor Network and moderated by The Wall Street Journal’s Veronica Dagher. In fact, $16 trillion will transfer hands in the next 10 years – and a majority of those dollars will be inherited by women, since “mom lives 10 years longer than dad, on average,” said Carol Pepper, CEO of the family office Pepper International. Since the average age of high net worth donors is 69, the wealth transfer is “happening right now,” said Pepper, who is also the co-author of The Seven Pearls of Financial Wisdom: A Woman’s Guide to Enjoying Wealth and Power. Pepper encouraged the advisors in the room to “treat women as the wealth holders they are,” adding that many women are firing their wealth advisors once their spouses pass away, because over the years they felt disrespected and neglected.
$16 trillion will transfer hands in the next 10 years – and a majority of those dollars will be inherited by women.”
Tyler Reiff, a Portfolio Manager at U.S. Trust, drew a distinction between women with self-made wealth, who seek to protect their hard-earned dollars, and those who inherited wealth, who often lack a sense of empowerment when it comes to making financial decisions. He encouraged advisors to “treat women like you treat your male clients,” since women are increasingly becoming the decision makers when it comes to money.
Often, women should be brought to the table sooner and included in meetings with a financial advisor or wealth manager. Carolann Grieve, the Senior Family Wealth Advisor at GenSpring Family Offices, shared a story about a client who was ill yet refused to share any financial information with his wife. When he passed away, his wife was devastated. In addition to the heartbreak over losing a beloved spouse, she had the added anxiety of not knowing how much money they had or whether she could afford to live in their home. “He thought he was protecting her, but he wasn’t,” she said.
When meeting with female clients, the panelists encouraged advisors to leave out the jargon. “Women are very interested in the holistic conversation of how money affects their family; they’re not interested in hearing about alpha or standard deviation,” said Pepper. The panelists agreed that women of all ages are can achieve financial literacy quickly when provided with education. They referenced studies demonstrating that women are more rational in their approach to investing than men, and with assistance from their advisors, can become sophisticated partners in the wealth management process.
Several of the clients whom Pepper has worked with discover, to their dismay, that their verbal investment directions are ignored by their advisors. One client, for example, wanted an environmentally sustainable investment portfolio and she was upset to find Exxon among her holdings. To prevent situations like this, Pepper encourages her clients to prepare a written investment policy statement that they share with their portfolio managers. Portfolio managers who don’t listen to you should be fired, she said.
The conversation turned to focus on women and philanthropy. Women are more intimately involved in the charities they give to and want to measure the impact they are making with their contributions, said Grieve. And four-fifths of women will be the primary decision-maker on how to invest their money philanthropically, Reiff said.
It’s important to connect with women clients and understand their values and goals. “Make sure you have that personal connection,” said Grieve.
View video footage from the event here: