By 2030, it is estimated that women will have control over an astounding $10 trillion due to The Great Wealth Transfer. While the concept of the Great Wealth Transfer is not new to advisors, many often overlook the depth of its impact and the opportunities it presents.
The Rise of Women in Investing
As the Great Wealth Transfer unfolds, women will have a role, on both sides of the table, in reshaping the investment landscape. With a significant share of inherited wealth flowing into the hands of women, there is a growing influence of female investors who bring distinct perspectives and preferences to the table.
Studies have shown that women tend to approach investing in a way that prioritizes long-term sustainability, social impact, and corporate responsibility. As women continue to play a more significant role in wealth management and inheritance, we will likely see a shift towards a wider range of investment strategies that place greater importance on ethics and social responsibility. As women’s influence in the financial realm grows, so will demand for a more diverse and socially conscious investment landscape to emerge.
Potential Shift in the RIA Landscape
While the representation of women in the financial advisory industry is still relatively low, their increasing influence as inheritors of wealth is driving demand for advisors who can better connect with female clients. Studies have consistently shown that women often prioritize planning and a holistic approach to wealth management, focusing not solely on financial returns but also on aligning their investments with their values.
With the personalized approach that independent RIAs offer coupled with the current landscape shaped by the Great Wealth Transfer, advisors who are considering breaking away have never had a more opportune time to make the leap.
The availability of outsourced technology and support services further streamlines the process of going independent and empowers advisors to break away.
The Great Wealth Transfer continues to reveal exciting possibilities for advisors to establish their own unique practices that cater to the evolving needs of investors in this transformative era.
Sources
McKinsey. (2021). “Closing the Gender and Race Gaps in North American Financial Services.” https://www.mckinsey.com/industries/financial-services/our-insights/closing-the-gender-and-race-gaps-in-north-american-financial-services
“Women in the Workplace 2021”. LeanIn.Org. and McKinsey, 2021. https://leanin.org/women-in-the-workplace/2021/introduction
Impact Wealth “The 68 Trillion Wealth Transfer” https://impactwealth.org/the-68-trillion-wealth-transfer-offers-women-a-path-to-financial-empowerment/
Maurer, T. (2023). “Why Women are Better Investors than Men”. Forbes. https://www.forbes.com/sites/timmaurer/2023/04/30/why-women-are-better-investors-than-men/
