Why it’s important to talk about women’s wealth

OWe hear from Amy Hart Clyne, Head of Knowledge and Learning at Pitcairn, about why there should be more focus on women’s wealth management and the factors that could impact women’s wealth. women this year.

Clyne’s recently published book, “Finding Her Voice & Creating a Legacy,” helps tell the personal stories of female leaders and matriarchs who challenge paths and offer valuable lessons for family stewards and counselors serving the wealthiest families. of the world.

What were the major trends and issues that impacted women’s wealth in 2021?

A few of the headlines I followed closely in 2021 involved women taking more leadership positions at major financial institutions, further reinforcing the case that women leaders are breaking the glass ceiling. Likewise, it is clear that women’s voices and opinions are increasingly heard and valued.

In 2019, McKinsey research found that there has been a significant increase in the number of women in leadership positions in American companies in recent years. One finding was that 44% of companies had three or more women in their executive suite, up from just 29% in 2015. It is important to mention that in financial services, a heavily male-dominated industry, women made up more than a third of the seats on the board of directors in 2021.

Such a colossal move has been backed by major Wall Street players such as BlackRock and Vanguard. Both companies have helped women increase their presence on boards by voting against all-male director slates. Even though men continue to hold the majority of board seats, there is a growing momentum towards gender diversity. Support from influential businesses truly paves the way for a better and more inclusive future.

In 2022, what are some of the trends and issues that women are focusing on or that could impact their money in the new year?

A few areas in 2022 that are important and worthy of consideration, regardless of gender, are: expected interest rate increases, tax law, rising inflation, and market volatility.

Given these important trends, it is extremely important for women to create a comprehensive wealth plan with the help of an experienced advisor or family office representative who can help them understand their complete financial situation, including their family dynamics, in order to give them the means to make the right decisions. for their future and reflect on how they engage the next generation in discussions about wealth and wealth creation/preservation. The more women are involved in wealth planning discussions, the stronger their future will be!

Why should more emphasis be placed on the management of women’s wealth?

The most crucial reason is that women simply live longer than men. As women live longer, we expect a large transfer of wealth, with women becoming the greatest beneficiaries. About $30 trillion in wealth is expected to change hands over the next decade and women are poised to inherit a significant share, according to a 2020 study by McKinsey & Company.

Women’s needs are growing and unique, and it’s interesting to see if the wealth management industry will make more meaningful changes around female advisors. My research confirmed that wealthy women are generally less comfortable making these kinds of financial and investment decisions. They need support and empowerment which can best be achieved by learning best practices from women experts and women.

In many ultra-affluent families, women’s roles are still hampered by long-held conventions and complex intergenerational dynamics. Although these women control a significant percentage of the world’s wealth (more than $10.9 trillion in assets in the United States alone), are CEOs of more than three dozen Fortune 500 companies, oversee numerous and philanthropic initiatives and play an increasingly important role in shaping the philosophies and priorities of future generations, their contributions are often overlooked.

For example, 2021 marked a banner year for female-led IPOs. Even with the number of challenges that women face in setting up and financing their businesses, they manage to succeed and take their businesses public. But at this point, they face a completely different set of challenges related to post-deal, legacy and succession planning.

How do women manage their money differently than men?

If there is a difference in how men and women handle their money, it can be attributed to different fundamental attitudes towards money and wealth. Women tend to focus more on life goals and family inheritance, on the things that money can do. Above all, women want to be treated fairly in terms of access to and control of family assets and for artificial barriers within the family to be removed.

Doing the research for “Finding Your Voice and Creating a Legacy”, we found a growing number of women in leadership positions in wealthy families who are challenging traditional gender roles. We call them the “new matriarchs”. Although some of the young women bristle at the term, we hear it with the deepest respect as they take the traditional matriarchal construct and reshape it as caretakers and business leaders, family stewards and financial stakeholders.

They are advocates and role models for greater equality, as well as examples of what women’s gender sensitivity and experience can bring to family leadership. We also found a widespread attitude among these women that they are stewards rather than owners of their wealth. They expressed concern about the responsibility of ensuring that the family’s wealth exists for the benefit of future generations.

This interview originally appeared in our TradeTalks newsletter. Sign up here for weekly access to exclusive market analysis from a new industry expert. We also highlight TradeTalks’ must-see videos from the past week.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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