Summary
All too often, women are left out of conversations around wealth – even though women’s wealth and influence are growing – so learn three ways Aviance Capital Partners is helping to change the conversation.
Women play many roles in today’s society—from breadwinners to caretakers, to family chefs, to event planners, to business owners, to mothers, sisters, wives, and friends, women often feel immense pressure to “do it all”. But even with all that going on, it still seems that we’re often left out of the conversations around wealth. How can that be? And why does that matter? Here are three reasons why women’s wealth matters and what Aviance Capital Partners is doing to change the conversation.
Women Play a Growing Part in America’s Wealth
Women currently control over $10 trillion in total U.S. wealth.[1] While this still only accounts for one-third of the nation’s total household financial assets, that number is expected to triple by 2030.1 As aging baby boomers pass their wealth to their female spouses, who are often younger and live longer than their male counterparts, women are projected to control more than $30 trillion in assets over the course of the next decade. This is a staggering level of wealth transfer that rivals the GDP of the entire country, which was $22.99 trillion in 2021!
On top of that, women are already taking center stage. Over the last 5 years alone, there has been a 30% increase in the number of married women who have taken over the household financial decisions, and women currently make between 70-80% of all consumer spending decisions.
It seems that more and more women are taking on the financial responsibilities of their households, yet many of them—45% overall and 54% of women over the age of 55—don’t feel confident in their ability to do so. We believe that should change.
Women Think Differently Than Men
If the title of this section made your eyes roll, you’re not alone. Sorry to point out the obvious, but the differences between how women and men think, particularly about money, can’t be overstated. Here are just a few to keep in mind:
- Only 33% of women see themselves as investors and only 19% feel confident in selecting investments that align with their goals.
- Just 9% of women think they make better investment decisions than men, whereas men are twice as likely to believe their investment decisions are outperforming the stock market.
- Research shows that women often earn better investment returns—Fidelity reports that women’s portfolios perform better than men’s by 0.4% on average.
- Women also tend to be less impulsive and take less risk when it comes to investing. They make fewer trades and review their investment accounts less often than men.
- Women seek personalized, outcome-oriented investments like real estate. Whereas, men seek investments they believe will lead to higher returns, typically stocks.
- Social impact is an important consideration for women—only 19% of women will invest in a company that is not socially responsible, compared to 51% of men.
It’s clear that women have different needs than men, which means the wealth management solutions they receive should also be different.
At Aviance Capital Partners, we are proud of the personalized planning and investment management we provide. From our detailed discovery meetings where we get to know you, to our thorough investment analysis where we seek to find your best investment fit, with the Aviance WealthPlan™, we aim to provide you a customized solution that is tailored to your unique needs.
Women Are Still Underrepresented in Wealth Management
It wouldn’t be a complete discussion of women’s wealth if we didn’t take time to talk about how women are still underrepresented in the wealth management industry—as both consumers and advisors. In fact, only 15-20% of financial advisors are women. Yet, many women consumers prefer to work with female advisors.
This shouldn’t come as a huge surprise, especially when you think about the rocky history between women and wealth.
It wasn’t until 1974, with the passage of the Equal Credit Opportunity Act, that women were allowed to have credit cards in their own names. Before that, most women could not even take out a loan without a male cosigner, and some lenders even went so far as to ask women for written promises that they would not get pregnant during the loan’s repayment period. The first female CEO to lead a major U.S. bank didn’t happen until 2020, when Jane Fraser took over as the CEO for Citigroup and women are still earning just 83 cents for every dollar that men make.
If women stand to inherit trillions of dollars in wealth over the next 10 years, but 70% of women change financial advisors within a year of their partner passing away, it’s clear that something’s got to give in the wealth management industry. That’s why we’re committed to bridging the gap and being a part of the push for better representation. Our commitment extends beyond the work we do with our clients. We also have ongoing relationships with:
- Women in Insurance and Financial Services – National and Gold Coast Chapters
- Women in Distress of Broward County
- Purse Strings Network
Learn More About Women’s Wealth at Aviance
Women often carry the weight of doing it all, but it’s a lot to manage on your own. At Aviance Capital Partners, want to help you feel educated and empowered in your financial decisions, and we are here to provide specialized solutions to your wealth planning needs. Whether you are a stay-at-home mom, a working professional, a divorcée, or a widow, we are dedicated to helping women feel confident and comfortable in their long-term financial futures.
As a Purse-Strings Approved™ Professional, I am deeply passionate about helping women become financially fearless. If you’re ready to take the first step toward a confident financial future, schedule a complimentary discovery call to see if we’re a good fit to work together. You can also learn more about me here or connect with me on LinkedIn.
Aviance Capital Partners, LLC (“ACP”) is an SEC registered investment adviser located in Naples, Florida. Registration as an investment adviser is not an endorsement by securities regulators and does not imply that ACP has attained a certain level of skill, training, or ability. While information presented is believed to be factual and up-to-date, ACP does not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. Not all services will be appropriate or necessary for all clients, and the potential value and benefit of ACP’s services will vary based upon the client’s individual investment, financial, and tax circumstances. The information provided is general in nature, which should not be construed as specific advice tailored to an individual reader. ACP suggests that readers consult a financial professional, attorney or tax advisory professional about their specific financial, legal or tax situation. All investment strategies have the potential for profit or loss, and different investments and types of investments involve varying degrees of risk. There can be no assurance that the future performance of any specific investment or investment strategy, including those undertaken or recommended by ACP, will be profitable or equal any historical performance level.
ACP is not affiliated with the Purse Strings Network, Women in Distress of Broward County, or Women in Insurance and Financial Services.
Additional information about ACP, including its Form ADV Part 2A describing its services, fees, and applicable conflicts of interest and its Form CRS is available upon request and at https://adviserinfo.sec.gov/firm/summary/146597.
[1]Women as the next wave of growth in US wealth management | McKinsey
