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Clarity Financial Planning Services is an advocate for your financial future who takes a holistic approach to your needs and goals.

Women, the Great Wealth Transfer, and Financial Planning

In recent years there has been a lot of talk about ‘the great wealth transfer’ that is taking place—as time goes on women will control more money than before. Morningstar Canada recently published an article about this noting, “Because of longer life expectancies and advances in the workplace, women in North America are controlling an ever-growing share of wealth. According to a report by the BMO Wealth Institute, women in the United States currently control US$14 trillion – more than half the country’s personal wealth — and that figure is expected to grow to US$22 trillion by 2020.”

This is not the only trend the article highlights. Not only will more women oversee wealth in their households, there is likely also to be more women working as financial advisors. As more of the work of financial planning becomes automated, more clients, especially women will be looking for more personalized advice. And as more women control more wealth, they may turn to women for financial advice.

Research has shown that in Canada a high percentage of widows change financial advisors after the death of a spouse because they are looking for someone they find trustworthy. The Morningstar article outlined a scenario where a couple goes to see a financial advisor and the advisor mainly addresses the man. Under those circumstances, a woman who had been ignored while married would make a change once she was on her own.

Remember, you should feel comfortable working with the person who is advising you on your money. Many people, women especially, have been put down and put off by the old boys’ commission-based brokerage network that long dominated financial advising. You should expect more from a financial advisor who has the privilege of working with you and your money.

If you are in the DC area, Claire Emory is a Certified Financial Planner who is a champion of holistic financial decision making and believes in putting the client’s needs first.