A great wealth transfer is coming as the Baby Boomer generation moves on, and women are
likely to be the largest beneficiaries of passed-down wealth. Women are also building their own
wealth despite continuing gender wage discrepancies between men and women. Women
continue to climb the corporate ladder in greater numbers than previous generations, moving
into management and higher-level roles.
When it comes to investing and wealth management strategies, women also differ from men,
which means this great wealth transfer may also lead to changes in approaches to financial
planning.
Women Are Focused on Their Life Goals
When women look at their financial planning, they generally are more likely to be focused on
their life goals than men. With males dominating the financial planning profession, women may
have a more challenging time seeking out a financial professional that will align with their
planning path. Women are also less likely to feel confident in investing without consultation, so it
will be important that financial professionals are able to help them to establish trust, listen to
their input, and work with them to help them with their life goals.1
Risk Tolerance Differs for Women
Women can be less comfortable taking on risk compared to men when it comes to investing.
This means they will likely prefer to save more depending on their financial goals. Financial
professionals will need to help them plan for the additional savings required if their taste for risk
stays on the conservative side. However, women may be more likely to invest at a higher risk if
they feel their questions have been fully answered about the investment.1
Women Are More Emotionally Influenced When it Comes to Investing
While women are pragmatic when managing their financial portfolios, they may also allow
emotions to influence their financial decisions. Decisions regarding their finances may often be
linked to relationships and family. To this end, women will need to be able to connect
emotionally with their financial professionals, which will help bridge any communication gaps.2
Technology Will Be Crucial During the Great Wealth Transfer
When estates are transferred, the process may be long and complicated depending on the size
and complexity of the estate. If other siblings or heirs are involved, they may each receive
differing advice, which may further complicate the process. It is essential that each client feels
safe asking questions and comparing advice so they can come to an agreed-upon decision.
Technology, such as teleconferencing and programs forecasting tax exposure, will be vital to
this communication process, especially when heirs are in different geographic areas.2
Empower yourself to navigate the Great Wealth Transfer with confidence. Review
our generational wealth checklist to gain practical insights and strategies that can help you
strengthen your financial future.
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to
provide specific advice or recommendations for any individual. To determine which
investment(s) may be appropriate for you, consult your financial professional prior to investing.
This information is not intended to be a substitute for specific individualized tax or legal advice.
We suggest that you discuss your specific situation with a qualified tax or legal advisor.
All information is believed to be from reliable sources; however, LPL Financial makes no
representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
LPL Tracking #779484
Footnotes:
1 Women and the Great Wealth Transfer, Investopedia,
https://www.investopedia.com/financial-advisor/women-and-great-wealth-transfer/
2 The Great Wealth Transfer Will Radically Change Financial Services, Forbes,
https://www.forbes.com/sites/forbesfinancecouncil/2023/03/09/the-great-wealth-transfer-
will-radically-change-financial-services/