Women have become an economic force to be reckoned with, particularly when it comes to their investing potential. Numerous studies show that U.S. women create, control and influence upwards of $11.2 trillion — nearly 39% of the nation's investable assets — and
are projected to control half of the U.S. wealth by 2020. With a collective buying power that exceeds that of Japan, women represent a huge opportunity for advisers. Yet advisers often struggle with knowing just how to reach and serve women investors.
Women generally want the same things as men when it comes to investing — to be financially secure, save for retirement and provide for the long-term needs of their families. What is different is their perception and approach, according to
a Prudential study.
What are they looking for in their adviser? Women favor a personal, collaborative approach, someone who takes time to listen and educate them on financial planning skills (not just products and services), as
a Fidelity Investment guide points out.
Moreover, women generally lack confidence when it comes to saving and investing. Only
35% of women trust themselves to make sound investing decisions, though millennial women are more confident than baby boomers and twice as likely to take on greater money risks, according to
a BlackRock Investor Pulse survey. Knowing these differences can help advisers better understand how to approach women at any stage.
Here are four ways advisers can become more actively engaged with female investors:
1. Be findable online.
An important first step is to simply get found by women who are researching financially related information. “In the past, it was unheard of to not be listed in the Yellow Pages,” said Karin Zabel, director of customer success at Hearsay Social and a recent panelist at an InvestmentNews Women Adviser Summit. Today, social media and the web have replaced the Yellow Pages; if you're not findable online, it's as if you don't exist. (Tip: Start with LinkedIn. Create a complete and engaging profile so prospects can learn about who you are, the clients you serve and your hobbies and interests.)
2. Listen first, respond later.
To connect with women, it's important to “stop, take stock, and truly listen,” said Sharon Kucera, a New Jersey-based financial adviser and former managing director at BlackRock. Women don't want to be “talked down to, or accommodated,” she said. Instead, women seek advisers who can empathize with their life experiences and help them meet their financial goals. As such, it's important to “find out what their priorities are and go from there,” Ms. Kucera said.
It's not uncommon for women to share life transitions such as marriage, divorce, death of a spouse or a career change on social media. Advisers can use these insights to connect with women at the opportune time.
3. Don't be afraid to acknowledge gender differences.
Kim Gaxiola, who heads
Tech Girl Financial, believes it's important for advisers to be keyed in to their clients' specific needs and concerns. In fact, before she ever speaks to a client about money, she first learns what they care about. For women, “amassing wealth is not usually the end game,” she said. “It's about maintaining the quality of their, and their families', lives.”
Ms. Gaxiola, whose practice focuses on women in technology, uses Twitter to learn more about her key audiences. Reviewing
#womenintech results keeps her abreast of her target audience and helps her create centers of influencers.
4. Focus on the relationship.
Trust is a critical component in building lasting relationships with female investors. But “generalizations don't always work,” Ms. Kucera said. Advisers need to stay open-minded and not pigeon-hole women. Yes, women are certainly more focused on their families and futures, but there are also those who “really just want to know the next good stock pick,” according to Ms. Kucera.
Ms. Gaxiola helps build trust among her mostly female clientele by providing financial literacy and educational content on her website and LinkedIn, like
“Ways to pay for college.” She believes the greater her clients' financial knowledge, the easier it is to help guide them.
Lastly, Ms. Gaxiola realizes the perceived advantage she has as a female herself, “primarily because of the relatability factor.” But, as Ms. Gaxiola and numerous studies suggest, most women are neutral when it comes to the gender of their advisers, noting “men can learn to be relatable as well.”
Nicole Johnson is senior content manager at Hearsay Social.
