Savvy financial advisors can help women invest their wealth and increase their client base. So, why are women still so underserved by wealth managers? Communication.<\/p>\n
Part of the issue is that women are simply more hesitant to seek advice, according to a recent survey by Capital Group<\/a> of over 1,500 U.S. consumers with at least one investment account. More than a quarter (26%) of women feel they lack sufficient funds to work with an advisor, and women are less likely to seek financial advice after major life events, despite being more open to advice than men. The findings aren\u2019t a surprise for many financial advisors who have significant female client bases, either. While it has become common for financial advisors who have married clients to invite both spouses to the meeting, they may not speak equally to both if one of the spouses is a woman.\u00a0<\/p>\n Megan Miller, senior wealth advisor at MAI Capital Management, said she had one ultra-high-net-worth client who would sometimes leave advisor meetings in tears. If the advisors didn\u2019t talk down to her, they wouldn\u2019t address her in meetings, so she stopped going. \u201cI was like, \u2018I don\u2019t blame you,\u2019\u201d Miller said. Many women are also likely to become \u201cdouble inheritors\u201d as more than $100 trillion is transferred from older generations by 2048, according to Cerulli Associates<\/a>. The research shows they\u2019re loyal, too, with 76% of women continuing the relationship with their advisor into retirement, versus 66% of men.\u00a0<\/p>\n Peer Pressure<\/p>\n Advisors who serve women clients say they use a different approach than what much of the industry has traditionally relied on, like simply going through a checklist of products, or trying to make a sale at the first meeting. Instead, high-touch service and listening to women\u2019s concerns are ways to build a sustainable business, experts said. The survey gives four key suggestions:\u00a0<\/p>\n Focus on marketing online and through women\u2019s social networks.<\/p>\n Make sure to appeal to financial aspirations.<\/p>\n Communicate the value of advice over cost.<\/p>\n Ensure all client communication is done thoughtfully.<\/p>\n Sequoia Financial Group advisor and CFP Nikki Savage said women are used to being talked down to, so creating a space that allows them to discuss any topic, not just finances, builds trust. Sequoia has peer circles, small groups of women in similar fields, who gather to talk. There are no slide decks or lectures, but as conversations continue, women feel more comfortable speaking about finances.\u00a0<\/p>\n \u201cIf you want to put a normal business term on it, this sales cycle is a bit longer,\u201d Savage said. \u201cBut when your clients are in these peer groups and their peer circles, and they\u2019re really loving the content and the community that you\u2019re building, they\u2019re going to refer you for the rest of their life \u2014 any time a girlfriend from their church, or group, or work, or relative needs someone.\u201d\u00a0<\/p>\n Don\u2019t Hate, Appreciate. Client appreciation days can be ways to tap into women\u2019s social networks, said Melissa Barkley, a wealth advisor with Linscomb Wealth. She and another advisor at Linscomb Wealth, Sheri Robinson, hosted a small women-clients-only spa day, and participants were encouraged to bring a friend. Financial planning wasn\u2019t discussed, but it was an opportunity to get to know the friends of the clients. That has turned into at least one new client.<\/p>\n MAI\u2019s Miller said educational events are another opportunity. Her firm has found success through hosting events tied to charitable giving and inviting local charities, such as the Humane Society, to the office to talk about their work in the community. The firm pairs it with estate planning, highlighting donor-advised funds or charitable remainder trusts.<\/p>\n \u201cIt was a low-pressure, low-expectations way to discuss what\u2019s out there,\u201d Miller said, adding that sessions on ESG companies are also popular. \u201cWe love to do fun events, too, and they are truly not meant to be marketing points of view. They\u2019re just because we care about our clients. We want to spend time with them,\u201d she said.<\/p>\n Time the Marketing. Targeted online marketing can be an effective tool as well. Capital Group senior vice president Wassan Kasey said one surprising finding in the survey is that more than 20% of women find their advisors online through search engines.\u00a0<\/p>\n Miller said MAI advertised an educational seminar around divorce-planning for women, which she said is a \u201cwildly underserved market.\u201d The seminars were priced low, around $30 for a four-hour session with a financial advisor, attorney and a therapist. Miller estimates about 75% of the women they saw became clients. Educational seminars can be a way to show value over cost, but there are other ways as well.\u00a0<\/p>\n At introductory meetings, Linscomb Wealth advisors look at potential clients\u2019 assets and help to create a balance sheet, Barkley said. People often don\u2019t realize what they have, she added. \u201cUntil they see it on paper, they\u2019re like, \u2018Oh my gosh, it said $2 million or $3 million.\u2019 That\u2019s a need. If you don\u2019t know what you have, we\u2019ve added value right there. And they\u2019re not even clients,\u201d she said.<\/p>\n Whoever, Whenever. Contrary to what advisors think, Kasey said, the survey showed that women are comfortable with male or female advisors, and they aren\u2019t necessarily motivated by life events. Appealing to financial freedom or independence, rather than just life events, can encourage women to invest. She said going beyond surface-level questions<\/a> and listening to answers can help deepen relationships.<\/p>\n For example, rather than asking why a client wants to retire in a certain part of the country and the timeframe for a move, consider questions such as where their children or grandchildren may be living, and how they will visit family and the potential costs around that. Those questions can unlock parts of a goal they might not have considered.<\/p>\n \u201cJourney-mapping \u2026 can more meaningfully get at the heart of the goal,\u201d she said.<\/p>\n Sequoia\u2019s Savage said thoughtful communication matters because women haven\u2019t trusted financial advice in the past. Engaging on a deeper level builds trust. \u201cThere\u2019s some mistrust when it comes down to their financial independence\u2026 but now we\u2019re talking about something that\u2019s critical to them being OK for the rest of their lives,\u201d she said. \u201cSo the estate-planning, the ABCs (of investing) are really powerful.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Savvy financial advisors can help women invest their wealth and increase their client base. 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