The Great Wealth Transfer Women, Are You Ready?

A great wealth transfer is coming as the Baby Boomer generation moves on, and women are likely to be the largest beneficiaries of passed-down wealth. Women are also building their own wealth despite continuing gender wage discrepancies between men and women. Women continue to climb the corporate ladder in greater numbers than previous generations, moving into management and higher-level roles.

When it comes to investing and wealth management strategies, women also differ from men, which means this great wealth transfer may also lead to changes in approaches to financial planning.

Women Are Focused on Their Life Goals

When women look at their financial planning, they generally are more likely to be focused on their life goals than men. With males dominating the financial planning profession, women may have a more challenging time seeking out a financial professional that will align with their planning path. Women are also less likely to feel confident in investing without consultation, so it will be important that financial professionals are able to help them to establish trust, listen to their input, and work with them to help them with their life goals.

Risk Tolerance Differs for Women

Women can be less comfortable taking on risk compared to men when it comes to investing. This means they will likely prefer to save more depending on their financial goals. Financial professionals will need to help them plan for the additional savings required if their taste for risk stays on the conservative side. However, women may be more likely to invest at a higher risk if they feel their questions have been fully answered about the investment.

Women Are More Emotionally Influenced When it Comes to Investing

While women are pragmatic when managing their financial portfolios, they may also allow emotions to influence their financial decisions. Decisions regarding their finances may often be linked to relationships and family. To this end, women will need to be able to connect emotionally with their financial professionals, which will help bridge any communication gaps.

Technology Will Be Crucial During the Great Wealth Transfer

When estates are transferred, the process may be long and complicated depending on the size and complexity of the estate. If other siblings or heirs are involved, they may each receive differing advice, which may further complicate the process. It is essential that each client feels safe asking questions and comparing advice so they can come to an agreed-upon decision. Technology, such as teleconferencing and programs forecasting tax exposure, will be vital to this communication process, especially when heirs are in different geographic areas.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by WriterAccess.

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Footnotes:

1 Women and the Great Wealth Transfer, Investopedia, https://www.investopedia.com/financial-advisor/women-and-great-wealth-transfer/

2 The Great Wealth Transfer Will Radically Change Financial Services, Forbes, https://www.forbes.com/sites/forbesfinancecouncil/2023/03/09/the-great-wealth-transfer-will-radically-change-financial-services/

Keri Pugh

Keri Pugh is a Wealth Advisor with Fusion Financial Group, an independent financial planning firm and fiduciary based in Denver, CO. Keri has over 20 years of experience in the industry, as both a financial advisor and Principal. She obtained a bachelor’s degree in Finance from the University of Northern Colorado and is an alumna with national sorority Delta Zeta. Keri holds a variety professional licenses, carries the esteemed mark of Certified Financial Planner (CFP®), meeting rigorous education and experience requirements in key areas of financial planning, as well as the designation of Accredited Investment Fiduciary (AIF®), a symbol of her dedication to upholding the fiduciary standard for clients. As a wife and mother to two young children, Keri is particularly drawn to working with thriving families and women. This is not only reflected within her practice but also in her regular sponsorship of the local PTA and volunteer work with the elementary school. Outside of the office, Keri enjoys traveling, skiing, and the Colorado great outdoors with her family. She often lines up movie marathons for the family and, in line with many clients, is a beginner golfer and a wine enthusiast. To learn more about Keri, connect with her on LinkedIn.