The Future Client Is Female

Dee Costa

By: Dee Costa, SVP - Business Consultant at Asset Marketing Systems

Written On: March 14th, 2022

In January of 2021 the American College put out a White Paper titled the “The Future Client is Female”: How to address the Needs of This Large Market.

This white paper details some of what we have known for a long time - that the Financial Advisory space is largely male dominated and women only account for approximately 15% of Financial Advisors. While women make up 51% of the U.S. Population, financial advisors seemingly continue to build primary working relationships with males, even when working with married couples. This outlines one of the many reasons why the women’s market will be growing rapidly over the next few decades. If you would like a copy of the entire white paper, please contact your business consultant, as this is an opportunity that is too big to overlook - Our time to serve is now.

Women constitute a largely untapped market. In 2020 women controlled over $72 trillion in assets. According to Financial Advisor Magazine, two-thirds of the nation’s wealth will be controlled by women in 2030. They also note that 53% of women do not have a financial advisor,67% of women feel misunderstood by their financial advisor, and more that 70% of widows leave their husband’s financial advisor within a year of death. Likewise, it is also interesting to note that women are the sole or primary breadwinners in 40% of the households with children in the U.S. Bottom line, women are controlling far more than half of the personal wealth in this country.

Almost every seminar I have seen built during my 20 years at Asset, talks about longevity. We all know that women tend to outlive men. In fact, there is likely going to be a significant transfer of wealth in the next few years from the hands of Boomer males to their surviving spouses, making these women attractive potential clients.

Most of you know my “why story”. My father passed away two weeks before his planned retirement. He went into the hospital for a simple knee operation and never made it home. I was in Nashville at the time and had to scramble to find a flight home to Salt Lake City, Utah. As I walked through the door, my mother fell into my arms and then took me by the cheeks and asked, “Am I going to be okay”? Well in the face of such grief, after 45 years of marriage, with retirement plans set, how could I possibly answer that question? I made it my mission that day that I would do my best to make sure that any woman that worked for over 40 years to reach the dream of retirement, would have an answer to that question, whether married, widowed, single, or divorced. My mother now had one Social Security check instead of two. She found herself in a higher tax bracket as a single filer, and there was no retirement cruise as planned. My mom ended up working until she was 72, as there were no plans in place that assumed my father would die so young.

And as most of you know, history has a way of repeating itself. On December 20, 2021, my husband knocked on my home office door. I was on the phone with a client. He was very excited and animated as he told me that he had had a wild dream that night. He told me, “You have to hear this dream, it is just blowing my mind”. I politely told him, that I would come see him as soon as I got off the phone with my client. (I assume this dream was powerful, as my husband never interrupted me during a workday.) It wasn’t five minutes later that I hear a very loud thud. It was so loud that I thought the refrigerator had fallen over. I got a weird feeling and asked my client if I could call him back. I left my office calling out to my husband, who was not answering me. After looking for him for about 5 minutes, I finally found him lying on the kitchen floor between the kitchen island and the counters. His eyes were open, and he was making a funny noise. I thought he had slipped and fallen, but as I asked him repeatedly if he needed help getting up, with no response, I immediately dialed 911. The ambulance came quickly, and they tried, as did the ER doctors, to save my husband’s life. Unfortunately, he passed away that morning, five days before Christmas. He died at the exact same age as my father. He was my best friend and partner for 44 years. As I grieve, I am blessed to know that I did not have to worry or ask the same question my mom had asked. I knew that financially; I would be okay.

As women, we worry about longevity, we worry about outliving our spouses, we worry about things that could be put to rest by working with a savvy and caring financial advisor. We owe it to ourselves and to all the women in our communities and practices, to financially empower them. Teach them how to plan for an unexpected death, or an extended care event. 65% of all nursing home residents are women. We need to know there is a plan in place, as I don’t believe there is a one of us who chooses to be a burden to our children.

You have the power to change the legacies of the women you serve. You have the power and privilege to relieve the worry and help them live their dreams. You have the power to help their children live knowing that mom is taken care of. You have the power and the opportunity. I implore you to explore this market and make a difference in a woman’s life.

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