Identifying Financial Strategies Important to Female Investors
Posted on 11/03/2014
One of America's leading wealth-management firms, Magii Inc., specializes in generating and maintaining financial prosperity for individuals and businesses, and its team of financial experts helps companies develop comprehensive employee-benefits packages. Magii Inc. explains that according to the 14thAnnual Women Retirement Survey of Workers, only 35 percent of women work with a financial advisor, yet 53 percent are seeking information that is easier to understand. That makes attracting female clients a terrific opportunity for wealth management firms.
Women understand the importance of saving early for retirement to secure their financial stability, such as by investing 10 percent of each paycheck. When working with female investors, keep in mind that women who are 65 in 2014 have an average life expectancy of 86. In order for them to keep their current lifestyle, women need to replace 100 percent of their income once you factor in the effects of inflation.
According to Boston Consulting Group, women control about one-third of all financial assets in North America. Women tend to want to preserve their assets rather than accelerate wealth, making retirement planning a priority. Many women put off pursuing a career until after having children. Unfortunately, a late start in the job market can result in less money for retirement. That is another consideration when putting together a successful financial strategy.
However, women aren't just concerned with how to support themselves after retirement. They also seek security in the short-term and are less likely to want to take big risks that can deplete their accounts. For example, women are less likely than their male counterparts to make costly impulse purchases. That means that many women are looking for a conservative approach to investing.
When working with female clients, financial advisors need to avoid industry jargon that can be off-putting. For years, women have been left out of financial conversations while the men in their lives handled the big decisions. Women want to focus on the essential conversation, which includes matching their financial and emotional goals for the best interest of their families.