How women are changing wealth management and investing

Financial planning

Women are increasingly overseeing family finances, and compared with men they conduct more research and are more disciplined. They also want to make a social impact.

Women are becoming a force in U.S. wealth management. By 2030, an unprecedented amount of assets will shift into the hands of women, with women expected to control much of the $30 trillion of baby boomers’ assets. And compared with five years ago, 30% more married women are making the investment and financial decisions for their families.Disclosure 1

As women take the helm of their family’s finances, they bring different skills and perspectives to wealth management than their male peers do. These differences can influence not only portfolio decisions, but also how their money makes an impact on their family, their community, and the world around them when they align their purpose with their financial plan.

They’re thoughtful about investing

One main difference is that women take more time to research their investments.Disclosure 2 Marisa Facciolo, managing director and senior wealth advisor at Truist Wealth, says women tend to ask more questions about their portfolios and take the time to understand what their money is being invested in.

“It's not just a numbers game,” she says. “They want to know what they’re invested in. When somebody asks that, you need to take time and understand where they’re coming from and why they’re asking.”

Taking the time to research and make sound investment choices can help prevent spontaneous decisions such as jumping on bandwagon meme stocks—stocks that have become popular on social media—or trading on a hot tip, which can weaken portfolios.

They’re disciplined

By making well-researched investments and avoiding spur-of-the-moment decisions, women are more likely to hold investments for the long term, a time-tested best practice.

A Fidelity study found that over a 10-year period, female customers earned 0.4 percentage points more annually than their male counterpartsDisclosure 2. A big reason for women’s lead over men might be the way they trade: According to Forbes article, female investors conduct fewer buy and sell transactions than male investors.Disclosure 3

They’re caretakers

Facciolo says she gets the most feedback from female investors when she discusses the work of Truist’s Center for Family Legacy. “When clients, and especially women, hear that the Center helps families to understand something together and to work toward a common goal, they’re intrigued,” she says.

Women are often caretakers within their families, and the tendency to nurture doesn’t stop with finances. Facciolo says many of her female clients’ top priority is not only making sure their children are financially provided for, but also that they have a sound financial education and know how to use the family money that will be left to them.

“They want to talk about how their children will use this money and how they can make sure their children still contribute in a meaningful way to their community,” she says.

They value advice and relationships

People joke that women are more willing to ask for directions when lost, but it’s also the case that they’re more willing to ask for professional advice about their finances.

It’s also telling that 70% of women switch to a new financial advisor after their spouse’s death.Disclosure 4“ I have a client whose husband actually was a financial advisor,” Facciolo says. “And when he died, she just basically cleaned house with the financial team. She said, ‘They never paid any attention to me; I was just his wife.’”

Establishing trust and an open dialogue with your financial team can lead to an excellent client-advisor relationship. For women (and men), this can have rewarding implications on investment portfolios, and help ensure your wealth planning aligns with your family’s purpose, mission, and values.

Read more about aligning your purpose with your investing in “The impact of purpose”

Talk to a Truist Wealth advisor.