However, that lack of confidence scares them away from things like investing and saving, which are key financial strategies for building long-term wealth. If your employer doesn’t offer a retirement plan or you’re self-employed, you can opt to set up a Roth or Traditional IRA. You can also put your money in the stock market or in other investments, such as real estate or business startups. The outdated notion that products and services should be segregated by gender has led to the infamous “Pink Tax” on items labeled “for women” by certain brands, damaging their appeal.
Financial advisors can expand their client base and establish themselves as trusted resources by creating a robust and incentivized referral program. Referrals are crucial for decision-making, and women prioritize recommendations and personal connections. Advisors can leverage this by hosting networking events, sharing testimonials, and engaging in conversations demonstrating their expertise. To effectively market and reach these valuable prospective clients, advisors can use tools like Facebook ad targetting options to discover hidden or niche interests competitors might not know about. Analyzing the audience’s demographics, like relationship status, education, job titles, and country/region, can help tailor your ads more precisely. There are any number of strategies you can deploy in your marketing activities.
Together, you and your advisor will create a plan for the long term and adapt as you go. Research conducted by investment firms and companies such as Invesco and Fidelity Investments provides further insights into the changing landscape of women’s financial engagement. The data underscores that women manage investments, develop budgeting strategies, and engage in long-term financial planning. Women are actively participating in shaping their financial futures, not only for themselves but also for the future betterment of their families, making them ideal clients for any advisor. Initiating conversations surrounding life and family can establish a relatable and empathetic foundation. Financial advisors can better understand their unique goals, aspirations, and concerns by demonstrating genuine interest in their clients’ lives. For many women, becoming a mother can trigger the need to hit the pause button on their careers.
Women can have a deep connection with the emotional aspects of money, making it crucial for financial advisors to move beyond mere numerical discussions and forge genuine personal connections. Recognizing that conversations with female investors often revolve around significant touchpoints, such as life and family matters in their financial decision-making process. Some examples of the content may include the need for long-term care, estate planning, charitable giving, and even finances and divorce. Argent Financial Group (Argent) is a leading, independent, fiduciary-based wealth management firm.
Read more about financial literacy for women here.
Additionally, unlike men, women in the workforce face the challenge of unequal pay. Known as the “wage gap,” this phenomenon is due to several factors, including the fact that many women leave the labor force to raise children and that men have historically been paid higher wages for the same work. Statistics show that women typically live longer than men, which means their nest egg has to last longer. This is just one of the unique variables women must consider when planning for retirement. Your small debts can cost more than you expect when you add them up. For example, five bills at $50 each equal $250 in recurring monthly expenditures. But pay off loans and stop using credit cards to enjoy a significant credit boost.
While your daughter may not have regular bills and expenses like rent or paying for utilities, she might use the family car to get to and from work and school. She also probably does things with friends throughout the week that cost money as well, like eating out, going shopping or participating in sports. When you consider the fact that most people’s money habits are set between the ages of 7 and 9, it’s especially important for your daughter to learn to appreciate money from an early age. There are three designations a qualified financial planner might have, but the first—Certified Financial Planner (CFP)—is the most important. Click here to sign up for our newsletter to learn more about financial literacy, investing and important consumer financial news. Our free tool can help you find an advisor who serves your needs.