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When you speak with a female client, you aren't just offering a portfolio or retirement plan. You often provide permission, confidence and a seat at the table. Many women have quietly let others handle the money for years. They have the ability, but may not have been encouraged to take control of their finances.
The Future of Female Investing
Females already control a vast amount of investable assets in the United States. The world may see them as conservative investors, but newer data shows that 61% of women are comfortable taking some risks, and 90% feel they are on track to meet their financial goals.
Women have strengths that make them ideal customers, like patience and consistency, which also scored higher in the report. What they may lack is a trusted partner who can give them the roadmap they need to drive results.
Begin With Stories Instead of Figures
When you first meet with a woman investor, lead with narratives instead of throwing facts and figures around. Ask open-ended questions like:
- "Talk to me about when money felt stressful or joyful for you."
- "What concerns you the most about your finances?"
Such questions invite honesty and reveal her comfort level. For example, a woman who inherits an estate may hesitate to change anything out of fear of "messing it up." Instead of jumping to charts to convince her, you might ask her what financial security looks like and how she imagines her life at 70 or 80. The goal is to guide the person to see money as a tool rather than a burden.
You have an opportunity to show the new patron your process. Explain how you weigh trade-offs and evaluate risks. The more transparent you can be, the more comfortable such an investor will become.
Teach by Simplifying
Many women may manage household bills, budgets and living expenses but feel uncertain about how to invest or which tax strategies might work best. Break it down for them in these ways:
- Create microlearning opportunities by providing mini modules, like a 10-minute video explaining tax harvesting.
- Use analogies that tie into the person's interests.
- Host small groups and let investors ask questions.
Another way you can motivate your female clients is to send them friendly reading entry points. Women may be discouraged as they still make 12% less income than men on average, so guiding them in the ways investing can make up the difference may inspire them to make every dollar count.
Be Guided by Their Life Arc
Many investors use a standard playbook of tactics because they know it works in most scenarios. However, if a woman has various plans that impact the investing scheme, you should throw out your typical tactics and try something new. For example, she may plan to have a baby or get married. Such life changes shift things for anyone, but females may receive lower pay because of outdated notions that they can't care for a child and do their job as effectively.
You can reduce the impact of caregiving breaks by planning for them early. They may need to start a medical fund to cover expenses or a heftier savings account for unpaid family medical leave. Speak to them so they understand the outcomes of decisions. Say, "The extra growth in this type of investment helps you fund a year off for caregiving and still retire on the schedule you've set."
Letting Female Clients Take the Wheel
Women may feel uncertain about your advice. Allow them to guide things, coaching them in what works for others. Let them:
- Sit beside you during portfolio reviews.
- Test what-if scenarios and reconfigure plans.
- Coach them to learn and use emerging tech to their advantage since generative AI could add about $7 trillion to the economy in the next decade.
Celebrate their wins with encouragement. "You chose to rebalance that portfolio wisely. Repeat that effort and you'll be on track for your goals."
Empower With Consistency
A single meeting won't lead to self-assurance, but working with a female client over time will enhance trust and provide opportunities to build capability. Set up touch points to determine if she still feels uncertain about financial issues. Keep sending articles and advice. She will grow into an expert with small bites that lead to behavioral changes.
When Women Own Their Finances, They Change Their Futures
A woman’s attitude changes once she understands how to make money work for her. Instead of asking for permission, she'll move her finances in the direction she wants them to go. As her adviser, your greatest feat is teaching her to take the reins. Use each conversation to empower her and show her she can create the ideal future with confidence and purpose.
Related: Being a Proactive Advisor — A Framework for Anticipating Client Needs