Women and Wealth Transfer
Posted on August 16, 2024
In the United States, a monumental shift in wealth is occurring toward women. Acknowledging that more women are employed in this generation and financially independent than any other time in our history, there is no doubt that the combination of longevity in women, the aging of baby boomers and The Great Wealth Transfer is compounding the vast amounts of inherited assets passing to women from their spouses and parents. This leap forward in the transfer of wealth marks a pivotal moment, particularly for women, presenting opportunities to secure financial futures and build generational wealth beyond what many would have imagined just a generation ago. So, understanding what is most important to women and the difference in approaches to investing from men is crucial in effectively managing this wealth and making the most of it for the client.
As we visit with women who are clients of The Trust Company, they frequently tell us that financial security and independence are at the top of their list – and this is not unusual. No matter how wealth transfers to women, they are often thrust into roles of financial stewardship, tasked with managing significant wealth, which is why we have so many conversations over their desire to be better informed, have an increased understanding of the investment process and participate first-hand in their financial planning.
Unlike previous generations where women were often sidelined in financial matters, today’s women have owned their own businesses, had successful careers with opportunities to take advantage of stock options and profit sharing from their employers. They have investment portfolios of their own and are actively seeking opportunities to grow and preserve this exponential wealth. Like our investment philosophy at The Trust Company, rather than chasing high returns, women tend to adopt a more conservative approach to risk, focusing on preserving wealth and reasonable steady growth that will help them achieve their long-term financial goals.
Their interest in investing goes beyond mere financial gain. While both men and women prioritize security and growth, women often place greater emphasis on the impact of their portfolio – for example, how they can put this money to good use and make a difference for their family, community and causes that align with their values.
Women are more likely to seek advice and collaborate with financial advisors, family members, and peers when making investment decisions. They value frequent communication and transparency, and a long-term relationship with an advisor who has a clear understanding of their unique circumstances and financial goals. They also tend to choose advisors who take a more holistic approach to wealth management, considering not only investment strategies but overall financial planning, estate planning, retirement goals and risk management.
Although women investors share similarities, at The Trust Company, our wealth management team understands that every client has a unique story of her own, whether she has stayed home to raise a family, had a life-long career, owned her own business or inherited additional wealth. We take an individual approach with each client. Only by understanding and addressing the unique needs and preferences of our clients can we better support them in navigating the complexities of wealth transfer and wealth management. We have assisted countless women through the years – either retired or those who are still working. It would be our pleasure to visit with you to discuss your financial outlook and how we can work together. Contact us at www.sancaptrustco.com.
This article was authored by Allison Constant, Senior Vice President, Family Office Services in our Tampa Bay office.
LEGAL, INVESTMENT AND TAX NOTICE: This information is not intended to be and should not be treated as legal advice, investment advice or tax advice. Readers, including professionals, should under no circumstances rely upon this information as a substitute for their own research or for obtaining specific legal or tax advice from their own counsel.
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