Women and Wealth Management

Why Wealth Management is Different for Women

As women increase their wealth as a result of career advancement and entrepreneurship, a strategic approach to wealth management becomes increasingly important.

At any career stage or wealth status, it’s essential for female earners to take control of their financial wellness and ensure wealth management strategies and guidance are tailored to the unique values that women embody and embrace. In particular, the following attributes may influence women more prominently as they select their financial advisor(s) and make financial decisions.

Driven by Emotion

When it comes to investing and wealth management, women are more likely to associate wealth with emotional dynamics – focusing on personal relationships, goals and impressions. Women also tend to value clear, open, and consistent communication – something they’ll look for and expect from their wealth advisory team. While they seek advice and strategic support, they also want someone to listen and understand their unique personal concerns and objectives.

Focus on Family

Beyond their careers, women frequently lead the decision-making within the household, placing extra importance on family and others close to them. This focus on family can influence nearly every financial decision – from debt management to saving for college. With the traditional obligation of caring for others routinely falling to them, women may be more likely to begin the estate planning process earlier and set up their children for future security and success. We also often see women express interest in helping their children learn more about financial literacy from an early age – a sign that building a solid foundation for financial wellness is a priority.

Additionally, many women end up responsible for the care of aging parents or other elders, and as such, may want to plan strategically for such a time when this impacts their lives.

Awareness of Risk

Generally speaking, women tend to be less aggressive investors and approach risk management differently than men do. While not necessarily risk-averse, many women consider themselves more risk-aware and rely on their judgment, critical thinking and planning skills to carefully evaluate levels of risk related to financial and investment decisions. As investors, women are inclined to focus more heavily on long-term goal setting and balancing of risk/reward – qualities that may help them avoid common investing mistakes.

Sense of Community

Outside of focusing on their families, women are also more likely to align their wealth strategies to community giving. Women frequently make more charitable donations and volunteer their time, and when it comes to investments, are more likely to invest in causes important to them. In some cases, that may result in seeking opportunities to take more control over their investing decisions and choosing vehicles that allow for additional flexibility and specificity to align with personal connections.

Overall, it seems evident that most women are looking for a financial advisor who will create a space where they can connect on a personal level, feel that their emotions and values are heard and make strategic, informed decisions that benefit themselves and their family members.

Led by Melissa Santas Peterson, a female CFA, MFA’s Wealth Management Practice takes care to understand the unique needs and values of women. Regardless of their wealth status, our team builds meaningful and distinct relationships with our clients to help guide them in achieving their most personal life goals. Please feel free to reach out to us anytime to start a conversation!

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Melissa Santas Peterson

President & Chief Investment Officer

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