The Growing Need to Serve Women Investors

As women increase their presence in the workforce and their control of the world’s wealth, smart financial planners are paying more attention to the needs of women investors.

It’s important to begin with the premise that women’s financial needs are usually different than men’s, for a variety of reasons. Men work outside the home in greater numbers, as women often take time off to raise a family. This results in women spending less years overall in the workforce. It must be pointed out however, that today more and more women are contributing nearly half of a family’s income—and a report from the Center for American Progress in 2019 determined that women are now the primary breadwinners in 41 percent of American households.

This newfound economic power will continue to grow as women are attending college in greater numbers than men, which will lead to higher paying jobs. Axiom Financial is well prepared for this huge societal shift, given that our staff is predominantly female, making us more focused on serving women clients and narrowing the financial literacy gap that currently exists between men and women investors.

Women are becoming more active in financial planning due to changing circumstances in both the workforce and developments in their own lives. According to STEMConnector, a research-driven firm that promotes STEM-based education (science, technology, engineering, math), nine out of 10 women will eventually take charge of their family’s wealth.

Single women are almost always in control of their income and spending. Other women are suddenly thrust into taking over a family’s finances when they find themselves widowed or newly divorced. One way women can be more prepared to invest on their own is to make every effort to attend financial planning meetings with a spouse, partner, parent or other relative. Regardless if they are new to the process, by repeatedly hearing certain messages and asking questions, one can begin to get a strong, basic understanding of the issues.

Even if a woman is not in charge of family finances, she can begin to educate herself by creating a household budget and taking over the management of that. Women often do most of the shopping and general buying, and can learn a lot by making sure her family adheres to a monthly budget. Statistics show that some two-thirds of global household spending is now controlled by women. That is a lot of buying power!

Women should also be involved in discussions on automatic investing, like how she and a partner should contribute to 401k plans. By expressing ideas and thoughts about how much to contribute regularly and to what kind of funds, women will learn to better understand the benefits of this type of saving.

Female investors might also suggest including the kids in their family planning. Axiom Financial is a very family-friendly company, and we stress to our clients that we welcome their children at the office. We don’t want them to think for a second that we would consider the kids a burden. In fact, having them around this type of environment at an early age can spark a desire to learn about saving and investing, in a way that would not be as easy to teach at home.

The more women we work with, the more apparent it becomes that they make very wise choices and are usually extremely successful investors. One reason for this is that women are often more plan-driven than men, which leads to them be less reactionary to the market’s movements and more likely to stay the course. Often women are also more inclined to invest toward achieving a goal, like retiring to spend more time with family, having the means to travel, being able to contribute to others or donate to causes.

Whether you are a woman interested in beginning to learn about financial investing or one who is looking to refine your knowledge and build your portfolio, it’s critically important to find the right advisor. Look for one who understands your individual circumstances, pays attention to your goals, is an honest communicator and has a strong support system within their office.

An advisor with advanced credentials such as Certified Financial Planner (CFP) or Certified Private Wealth Advisor demonstrates a strong commitment to furthering their education, which in turns gives them the ability to offer more thorough, comprehensive, up-to-date strategies.

Above all, having an open relationship with your advisor—one that’s built on trust—will give you the best chance to succeed in realizing your financial goals and building a secure future.

We welcome the opportunity to meet with you to discuss your financial future. Whether you’re just getting started or an established investor, we have the tools and resources to help you make informed decisions. To set up a complimentary consultation, please call (812) 913-7701 or email [email protected].

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