Women of all ages, demographic backgrounds and financial statuses are vital parts of advisors’ client bases, but advisors need to know how to properly foster these relationships.
Fortunately, there are some encouraging points for advisors to consider. Notably, women are feeling more confident in their personal financial outlooks, but they’re also demanding change to financial lots and in terms of how they access and receive financial advice.
Those are among the takeaways from Bank of America’s Women, Money, Confidence: A Lifelong Relationship report. Published last June, the report indicates nearly half the women surveyed are confident in their financial outlooks, but just 28% feel they’re prepared to make moves to bolster their financial futures.
Of note to advisors are the points that many of the polled women are split regarding short- and long-term finances. Broadly speaking, the group is optimistic when it comes to short-term challenges such as tending to monthly bills and setting and sticking to budgets. However, the percentages drop dramatically when comes to assuredness on longer-ranging issues, including “paying down debt (44%), saving for emergencies (44%), saving for retirement (36%) and building wealth (27%),” noted Bank of America.
When considering those points, it’s clear that women are a demographic financial advisors should be working worth in larger numbers. Additionally, issues such as retirement planning and wealth building are compelling topics for advisors, too, indicating there positive outcomes for advisors by engaging more female clients.
Important Survey Details
Seasoned advisors know building comfort and trust is essential in fostering long-term client relationships. On that note, 53% of women prefer discussing finances with other women. Obviously, that’s a plus for practices that are run by or employee female advisors. For those that aren’t in those groups, understanding the various scenarios that women face that aren’t often factors with male clients can go a long way toward building that necessary trust.
“Women’s financial planning should consider potential career interruptions and their impacts, with about half of women reporting that they left the workforce and often returned to less rewarding or lower-paying jobs,” adds BofA.
Another point revealed in the BofA report that’s sure to be encouraging to advisors is that women want more investing education. While a clear majority of women surveyed said they are on par with men when it comes to basic day-to-day financial decisions, just a third feel they’re adequately positioned regarding investment decisions.
“There is an immediate need to increase investing knowledge among women to help them feel empowered to make financial decisions affecting their future,” according to the survey.
Translation: Advisors can help empower women by demystifying complexities surrounding investing while providing foundations for long-term success.
Age, Assets Matter
Perhaps not surprisingly, there is a liner relationship between women’s age and financial assets and their overall financial. For example, the BofA survey confirms just 43% of those queried in the 23-29 age range are confident about their finances, but that figure soars to over 60% for women 65 and up. Likewise, just 38% of women with less than $50,000 in assets are optimistic about their financial pictures, but the percentage for those with $1 million or more is 70%.
Among the interpretations of those data points are the following: Advisors could potentially long-lasting, meaningful client relationships with younger, middle-class women – many of whom are presumably wanting more financial advice and education.