Key differences in female wealth management

Women don't invest differently. They invest better. According to Marie Brière and her team at Amundi, the data shows women are less prone to overconfidence, trade less frequently, and earn higher net returns than men. Yet they're often wrongly stereotyped as overly risk-averse. When we look at fund managers, there's no performance gap. Female managers achieve similar results with slightly less extreme strategies and fewer costly transactions. What's troubling? Women receive worse financial advice. Studies reveal advisors offer them less diversified portfolios and sometimes practice price discrimination. The financial industry itself uses masculine language that creates distance rather than inclusion. This matters because women face unique challenges: longer lifespans, career interruptions, and lower pension coverage. With wealth increasingly shifting to women (growing 6% vs 4% for men), addressing this disconnect is important. The evidence is clear: the investing gender gap isn't about ability but about environment. Financial institutions aren't adapting fast enough to women's preferences and needs. We don't need to "fix" how women invest. We need to fix the system that fails to serve them properly. 🔗 Added the link in my first comment to the whitepaper.

We’re about to witness one of the largest transfers of wealth in modern history. By 2030, women in the US are expected to inherit an astonishing $30 trillion in wealth. This monumental shift isn't just a number. It’s a call to action for the financial industry to rethink and redesign financial products that TRULY cater to women's unique financial journeys. Think: ❌ Jargon & Abbreviation-Free Communication The financial industry is notorious for its unnecessarily complex jargon, which can alienate those not well-versed in its language. Which is often the result of bias and systemic barriers. ❌ Shaming-Free Financial Education Many women are already confronted with the stigma around discussing money. Financial services should be a safe space to learn, ask questions, and make informed decisions without fear of judgment. Yes, I’m looking at you, Dave Ramsey! ✅ Accounting For Caregiving Breaks Financial products need built-in flexibility for career breaks, ensuring that women can pause or adjust contributions without incurring penalties, keeping their long-term financial health intact. (e.g. specialized investment accounts for caregivers, credit systems) ✅ Addressing Longer Life Expectancy Women live longer, which means they face more years of healthcare costs. Retirement and health savings accounts must be designed with this in mind, offering strategies to extend the longevity of assets to cover these extended needs. ✅ Bridging the Gender Pay Gap Financial advisors and products should offer tailored advice for navigating and compensating for the gender pay gap, ensuring women can maximize their savings and investment returns despite earning disparities. (e.g. salary negotiation workshops, automated savings adjustments, reduced fees) ✅ Closing the Gender Wealth Gap Women face a compounded wealth gap that requires more than just equal pay solutions. Financial products need to address these gaps with targeted investment strategies, financial education, and opportunities that amplify women's financial growth. (e.g. aligning portfolios with financial milestones and challenges) ✅ Impact-focused investments Women tend to seek investments that offer both financial returns and social impact. Financial products that align with these values, offering clear insights into how investments contribute to the greater good, will resonate deeply with women looking to make a difference with their dollars. There’s a reason why women are flocking to places like Ellevest, Female Invest, Her First $100K or Girls That Invest. Because they speak women’s language. And share their vision for a more equitable society where an increasing number of women are financially free. And can therefore live life on their own terms. What else would you add to the list above? #money #femaleeconomy #sheconomy #womensupportingwomen #genderequality #genderpaygap #investing

Gender pay gap (lower lifetime earnings) + career breaks (caring responsibilities) = ??   It's not a trick question. The result is a #genderwealthgap. Women are: 💷 Saving LESS. 💷 Investing LESS. 💷 Holding pension pots that are worth LESS. 💷 (And perhaps most damaging) Feeling LESS confident about their financial future. I read the Schroders Personal Wealth 2024 "Women and Wealth Report" this week. (link 👇🏿 👇🏿) "..[𝘛]𝘩𝘦 𝘨𝘦𝘯𝘥𝘦𝘳 𝘸𝘦𝘢𝘭𝘵𝘩 𝘨𝘢𝘱 𝘪𝘴 𝘮𝘰𝘳𝘦 𝘵𝘩𝘢𝘯 𝘢 𝘴𝘪𝘯𝘨𝘭𝘦 𝘴𝘵𝘢𝘵𝘪𝘴𝘵𝘪𝘤 – 𝘪𝘵’𝘴 𝘢 𝘥𝘢𝘪𝘭𝘺 𝘳𝘦𝘢𝘭𝘪𝘵𝘺 𝘵𝘩𝘢𝘵 𝘢𝘧𝘧𝘦𝘤𝘵𝘴 𝘮𝘢𝘯𝘺 𝘸𝘰𝘮𝘦𝘯’𝘴 𝘴𝘦𝘤𝘶𝘳𝘪𝘵𝘺 𝘢𝘯𝘥 𝘢𝘣𝘪𝘭𝘪𝘵𝘺 𝘵𝘰 𝘮𝘢𝘬𝘦 𝘤𝘩𝘰𝘪𝘤𝘦𝘴 𝘢𝘣𝘰𝘶𝘵 𝘵𝘩𝘦𝘪𝘳 𝘭𝘪𝘷𝘦𝘴."   👉🏿 Half as many women are saving >£700, compared to men (10% vs 19%) 👉🏿 Twice as many women are saving <£100, compared to men (15% vs 29%) 👉🏿 Fewer women feel very confident they will be able to leave an inheritance compared to men (13% vs 22%)   The stats for #retirement are even worse for women from ethnic minority groups: "𝘽𝙡𝙖𝙘𝙠 𝙬𝙤𝙢𝙚𝙣 (30%) 𝙖𝙧𝙚 𝙢𝙤𝙧𝙚 𝙡𝙞𝙠𝙚𝙡𝙮 𝙩𝙤 𝙧𝙚𝙙𝙪𝙘𝙚 𝙬𝙤𝙧𝙠𝙞𝙣𝙜 𝙝𝙤𝙪𝙧𝙨 𝙞𝙣𝙨𝙩𝙚𝙖𝙙 𝙤𝙛 𝙧𝙚𝙩𝙞𝙧𝙞𝙣𝙜, 𝙘𝙤𝙢𝙥𝙖𝙧𝙚𝙙 𝙩𝙤 22% 𝙤𝙛 𝘼𝙨𝙞𝙖𝙣 𝙬𝙤𝙢𝙚𝙣 𝙖𝙣𝙙 21% 𝙒𝙝𝙞𝙩𝙚 𝘽𝙧𝙞𝙩𝙞𝙨𝙝 𝙬𝙤𝙢𝙚𝙣." - Scottish Widows report (link 👇🏿 👇🏿)   What does this mean for all of us?   These reports and others point to specific steps women can take to address the gaps in #financialeducation and #financialconfidence. There's also more #wealthmanagement and #financialplanning firms can do to develop more inclusive #propositions and #products.   My *personal journey continues to be one of trying and learning. I've tried:   1️⃣ Taking baby steps - I started my proactive savings and investing journey using a couple of apps and comparing different accounts. I'm not sure I did a great job but it was a good opportunity to learn! 2️⃣ Acknowledging when I needed help - I got to the point where my investing experience was insufficient and I had limited time. I realised I needed to engage a Financial Adviser as I started to understand the value of holistic financial planning (this isn't for everyone but I've found it helpful). 3️⃣ Talking more about it - Although it's difficult to talk about money, by raising the topic both privately and on various platforms, people have felt more encouraged to ask questions (including "where do I start?").   The reality is that it's a journey; personal circumstances change and what's working now, might not be the best solution in the future. But it's important to get started.   The gender wealth gap is just one of the many "gaps" in the #wealth and #financialadvice sector. #advicegap #racialwealthgap The sector has so much to offer, however there's a lot to do to close these gaps. It makes for interesting times in #wealthmanagement.   (*This is just my personal experience. It is not an endorsement or a recommendation on how to save/invest!)

In honor of Women's History Month, I want to share some data points from the chapter, "Listen to Women", in "The Soul of Wealth." The long and short of it: Women are the ultimate behavioral investors, but no one (not even most women), believes it. The data shows that: - Women generate higher investment returns than men at both the retail and professional level. - Women trade less, take a more measured approach, and are more likely to stick to long-term plans. - During bear markets, women outperform men by 1.3 percentage points, according to Openfolio Yet, despite their superior track record: - Only 18% of CFA charterholders are women - 82% of married men report handling big investment decisions alone - 40% of female investors say advisors ignore their input Even women underestimate themselves. - Only 9% of women think they’re better investors than men—despite the overwhelming data proving otherwise - Women are twice as likely as men to describe themselves as “financially insecure” regardless of actual income Meanwhile, firms with more women in leadership outperform their peers: - Gender-diverse teams make better M&A decisions with lower failure rates - Companies with higher female representation see stronger financial performance over time Let's start to tell a new story about women and money that's based in fact and not old, biased thinking.

Reflecting on PHOENIXUS’ latest Building Our Financial Futures session, led by the insightful Schutz Lee, it’s clear that the lessons on portfolio diversification, asset allocation & rebalancing are essential tools for women, especially as we prepare for the realities of longer life expectancies, wealth transfers & changing market conditions. Schutz’s guidance helped us navigate these complex concepts, highlighting that portfolio diversification—spreading investments across various asset classes—is the foundation of a resilient financial strategy. By doing so, we mitigate risk & ensure that our portfolios are not overly reliant on any one market or sector. This approach becomes even more crucial for women, who often outlive men & find themselves managing wealth not only for themselves but for our families. In exploring asset allocation, which is all about determining the right mix of investments to align with our individual financial goals & risk tolerance, whether it’s equities, bonds, or alternative investments, understanding where & how to allocate assets ensures that our portfolios grow sustainably over time, allowing us to adjust as life stages change or new opportunities emerge. Finally, the importance of rebalancing is emphasised - the process of realigning the weightings of our portfolio. As market conditions shift & with events like the impending interest rate adjustments, regularly rebalancing ensures that we maintain the desired risk profile & continue to meet our financial objectives. This session also touched on broader financial trends affecting women in particular. With intergenerational wealth transfer becoming more prevalent, especially as older generations pass on their wealth, women must be prepared to manage this transition. The idea of horizontal wealth transfer, where assets move between spouses, reinforces the need for women to be financially literate & proactive in managing our family’s wealth as they often inherit financial responsibilities. Understanding how to diversify, allocate & rebalance portfolios isn’t just a strategy for today—it’s a long-term commitment to financial security and independence. By taking these steps, women are not only securing our own futures but also positioning ourselves as stewards of wealth for future generations. The time to act is now. Don’t wait for the market or life events to dictate your financial journey. Take control, implement these strategies, and move confidently toward the future you deserve. #FinancialEmpowerment #WomenInLeadership #PortfolioManagement #Diversification #WealthTransfer #Phoenixus #FinancialIndependence #InvestmentOpportunities #TakeAction

When I speak to women about #investing, one of the first questions I ask is, “What #barriers do you face with investing?” A consistent response I hear is, “I don’t want to lose my money.” This aligns with #research showing that women tend to take less risk in their investment decisions, preferring investment options that preserve their capital even if they offer lower returns. Several factors shape women’s cautious approach to investment risk: - Societal and Cultural Norms: Many women are socialized to be conservative with money, reinforcing risk-averse financial habits. - Income Disparities: Women typically earn less than men and may take career breaks for caregiving, which increases the need to protect their assets. - Longevity: Women tend to live longer than men, meaning their retirement funds must last longer, often prompting a focus on stability. - Lack of Confidence: Studies reveal that women often feel less confident in their financial knowledge, making them more hesitant to take risks. Yet rather than viewing risk as a threat, it is essential for women to consider it an opportunity for wealth growth. Here is how to reframe risk: 1. Risk as a Necessity: Accept that a level of risk is necessary for meaningful returns. Safe investments like savings accounts may not keep up with inflation and can erode buying power over time. 2. Calculated Risks: Understand the distinction between reckless and calculated risks. Calculated risks come with careful research, planning, and a clear strategy to reduce potential losses. 3. Diversification: Spread investments across asset classes to reduce overall risk while increasing potential for higher returns. Working with a financial advisor can help build confidence in managing risk. A #skilled #advisor can: - Develop investment strategies aligned with your risk tolerance and goals. - Offer an objective perspective for sound decision-making. - Educate on risk management and investment opportunities. There are significant benefits of taking well-managed risks such as: - Higher Returns: Over time, investments in growth assets like stocks yield greater returns than safer options like bonds. -Beating Inflation: Growth-oriented investments combat inflation, preserving and enhancing purchasing power. -Achieving Financial Independence: Women who take calculated risks are more likely to achieve financial independence and security. Women should start viewing #risk as a growth tool rather than something to avoid. This mindset shift is essential for building wealth and achieving long-term financial success. With the right strategies, risk can become a powerful ally in the journey to financial empowerment. #financialliteracy #financialadvisor #career #unitedcapitalplc #odirioginni

Does gender influence investing? We looked at where LPs are investing and if gender had an effect. The data speaks volumes... A contrast is clear: men focus more on financial and advanced tech, while women are channeling capital toward impact, sustainability, and health. ➡️ Male LPs are leaning into tech: - AI, DeepTech & Frontier Tech (20%) - Health & Wellness (13%) - Fintech & Digital Assets (9%) ➡️ Female LPs are prioritizing purpose-driven sectors: - Health & Wellness (19%) - Climate & Sustainability (17%) - Diversity & Social Impact (12%) Both perspectives matter — and understanding them can shape better fund strategies. Which sectors would you prioritize if you were writing the next big check?

70% of women change financial advisors w/in 1 yr of their baby boomer husband passing away 🤯 By 2030, American women are expected to control much of the 💰$30 trillion in financial assets that baby boomers will possess—a potential wealth transfer of such magnitude that it approaches the annual GDP of the United States. From McKinsey & Company "We’ve heard through our field interviews with RIAs that many of their new female clients came to them from other firms, where they didn’t feel they could ask basic financial-literacy questions or spend enough time with advisers to find the right financial plan to meet their goals" ➡️ Other previously male-focused industries, such as automobiles and real estate, have revamped their product and service models to meet women’s needs It's time for financial services’ to do the same. 🔴 McKinsey found that by retaining baby-boomer women, firms could see 1/3 higher revenue potential. 🔴 Firms that acquire and retain younger women clients—especially millennials—could see up to 4️⃣x times faster revenue growth. Does your firm do a good job of this? I'd love to see examples - so please share 👉🏽 And if you don't already but want to, then consider these Marketing and Communications Strategy to Engage Women: 1️⃣ Hire more women advisors to your firm (think of how many websites out there have a wall of men listed on the "our team" page) 2️⃣ Get rid of jargon, focus your marketing on being approachable 3️⃣ Don't just recommend; teach and explain where warranted 4️⃣ Create case studies that showcase how you have helped other women going through pivotal life moments (divorce or death of a spouse.) The more specific, the better. Put them on your website 5️⃣ Use images and tell stories that will resonate with the women you serve on your website, and in your marketing Full McKinsey Report: https://cutt.ly/HKzH2c8 #wealthmanagement #financialplanning #investmentmanagement

Why Women Investors Outperform Men And What You Can Learn From Them If I told you women investors consistently outperform men, would you believe it? Because here’s the data: Research from Fidelity and Bank of America shows that women’s portfolios generate better long-term returns than men’s. Yet finance has long been seen as a "man’s world." Investment conferences? Mostly men. Financial media? Still male-dominated. Traditional advice? Often tailored to men’s risk styles. But when it comes to real results, women invest differently and often outperform. 𝐇𝐞𝐫𝐞’𝐬 𝐖𝐡𝐲 𝐖𝐨𝐦𝐞𝐧 𝐀𝐫𝐞 𝐖𝐢𝐧𝐧𝐢𝐧𝐠 𝐭𝐡𝐞 𝐈𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠 𝐆𝐚𝐦𝐞: 1️⃣ 𝐋𝐞𝐬𝐬 𝐓𝐫𝐚𝐝𝐢𝐧𝐠, 𝐌𝐨𝐫𝐞 𝐂𝐨𝐦𝐩𝐨𝐮𝐧𝐝𝐢𝐧𝐠 Every transaction has a cost. Trading too often erodes gains. Women instinctively avoid over-trading, allowing their investments to grow uninterrupted. 2️⃣ 𝐏𝐚𝐭𝐢𝐞𝐧𝐜𝐞 𝐎𝐯𝐞𝐫 𝐏𝐚𝐧𝐢𝐜 Markets crash. Stocks fall. Many investors hit the sell button out of fear. Women, however, tend to stay invested, understanding that market downturns are temporary, but compounding is permanent. 3️⃣ 𝐂𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐞𝐝 𝐑𝐢𝐬𝐤𝐬, 𝐍𝐨𝐭 𝐄𝐠𝐨-𝐃𝐫𝐢𝐯𝐞𝐧 𝐁𝐞𝐭𝐬 Men are statistically more likely to take high-risk, high-reward trades. Women take risks too, but they are more deliberate, research-backed, and goal-oriented. Marci McGregor of Bank of America said it best: “Women develop a strategy and stick to it, buying and holding for the long term.” The Real Secret to Wealth? Play the Long Game. Great investors don’t chase. They stay consistent. They invest based on fundamentals, stick to a plan, and let time do the heavy lifting. And the major thing is to start small but stay smart. Check your portfolio. Are you building long-term wealth or chasing short wins? Build a strategy that works for you, not just what sounds exciting in the moment. Because patience isn’t passive, it’s profitable. What’s your take? Are men really riskier investors, or just different? #LongTermWealth #InvestingStrategy #MoneyMindset #AnooshkaSohamBathwal