Women and Wealth: Rethinking How Wall Street Engages

Women and Wealth: Rethinking How Wall Street Engages

April 26, 2024

Women control a sizable and growing share of investable assets, yet they remain underserved by the financial industry. At Anderson Financial Strategies, we recognize the gap between what women need from wealth advisors and what they get. Our services are designed to help our clients, men and women alike, feel confident in their financial decisions. 

It’s time to shift to a more level playing field. Let’s explore current Wall Street advisor misjudgments and why it’s so important to engage with a wealth management firm that treats women’s financial planning with equal weight to men’s.

Too Much Focus on Investments

Many wealth advisors are too focused on investments for their female clients. Whether it’s due to misunderstood priorities, habits, or lack of awareness, the bottom line is the same. Women prefer a long-term road map that takes them from where they are today and shows them how to get where they want to be tomorrow. And that doesn’t only include investments.

The results of a hyper-focus on investments are ominous. Things like missed opportunities, unnecessary risk, reduced trust, and unmet needs, can leave women unprepared for their future. Instead, a better approach is providing a well-rounded wealth planning strategy that takes into account the unique needs and long-term objectives of our female clients.

Not Enough Balance

It’s true that 58% of women still defer financial planning decisions to their male partner. 

Why is that?

There are a variety of potential reasons: 

  • Risk Tolerance Misconception: Without thoroughly understanding a woman’s risk appetite, advisors might provide investing solutions based on the assumption that men are inherently more risk-tolerant.
  • Financial Knowledge Gap: Wealth advisors may underestimate a woman’s financial literacy and steer clear of complicated investment topics or use condescending explanations.
  • Technical Jargon: Wealth advisors often use technical terms and industry slang that can be daunting for anyone who’s unfamiliar with the terminology. Unfortunately, women are more likely to feel excluded by this language barrier because men are socialized to be comfortable in jargon-laced, assertive situations.
  • Lack of Empathy: Some advisors communicate in a way that resonates more clearly with male clients than it does with female clients. This type of communication style usually lacks the empathy or approachability that would resonate with female clients and make them feel more welcome to join the conversation.
  • Ignoring Gender-Specific Needs: Investment products and techniques tailored to women’s specific financial goals, such as those addressing caregiving expenses or income gaps resulting from work pauses, may not be known to or offered by advisors.
  • Unconscious Bias: Wealth advisors might inadvertently recommend techniques typically associated with men, without taking into account whether or not these are consistent with a woman’s longer life expectancy or career path. 

Regardless of the reason, the result is the same: women feel unheard, dismissed, and insecure. But it doesn’t have to be like this.

The trick is finding a wealth management firm that both facilitates balanced communication between male and female clients, and also gives rightful credence to women’s capability.

How to Find a Forward-Thinking Firm

Progressive wealth management firms want all of their clients to be on the same page, regardless of gender. They do this by asking insightful questions to help both genders feel seen and heard so they can confidently pursue a personalized financial future. 

Take a look at this list of skills to look for when selecting a forward-thinking firm:

  • Understands your priorities and can tailor a strategy that aligns with your specific needs.
  • Fosters open communication and avoids jargon to help you feel empowered and in control of your finances.
  • Offers a wider range of options to prevent you from missing out on valuable opportunities.
  • Prioritizes equality so you receive the same level of service as any other client.

By working with a wealth management firm that values women equally, you can vastly improve the likelihood of receiving optimal financial guidance.

Partner With Us Today

Our team at Anderson Financial Strategies empowers all clients equally. 

We don’t have preconceived notions of what women want and need because we know that everyone is unique and requires a unique plan. We understand you are an individual, regardless of gender, with unique responsibilities and priorities.

When you’re ready to explore our services for your family or business, please call us at 855-237-4545 to schedule an executive briefing to discuss your goals.

About Shon

Shon Anderson is president and chief wealth strategist at Anderson Financial Strategies, LLC with over 20 years of experience. As a fiduciary, Shon’s mission is to provide his clients with quality financial expertise along with rapidly responsive service through an honest relationship. He specializes in providing family office-style services to help his clients organize and focus their financial life. Shon graduated from Wright State University with a bachelor’s degree in financial services and an MBA in finance. He is a CERTIFIED FINANCIAL PLANNER™ practitioner and holds the Chartered Financial Analyst® (CFA®) certification. His insights have been quoted in leading financial news publications such as CNBC, Yahoo Finance, Fox Business, Consumer Reports, Forbes, Bankrate.com, Investment News, and Kiplinger. Shon serves as an adjunct professor teaching personal finance courses at Wright State University, leads CFP® exam review courses for Keir Educational Resources, and is president of the CFA Society Dayton. Shon and his wife, Jessica, reside in Sugarcreek Township, Ohio, and are blessed with triplet daughters, Elizabeth, Bridgette, and Alexandra, along with their son, Jacob, and dog, Jack. Over the years, Shon has been involved in several volunteer organizations including the Wright State chapter of Delta Tau Delta as an alumni advisor and was a Big Brother in the Big Brothers/Big Sisters program. To learn more about Shon, connect with him on LinkedIn.