David Lerner Associates News

Women’s Wealth Management is Growing in America

Core Facts

Main Article Image

Friday, September 16, 2022

There may still be a gap in wages and equity in the workplace but the face of wealth management in America is changing. This change is driven by two factors – a fair amount of that wealth is in the hands of Boomers and the fact that by 2030, American women are expected to control much of the $30 trillion in financial assets those baby boomers will possess.

Over the next decade, a huge transfer of wealth is expected, as the boomer generation passes on their wealth to the next generation.  Most of that wealth is still in the hands of men, but as they pass that money will go to their spouses, who are often younger and tend to live longer.

There is also a growing number of younger, financially savvy women who are making financial and investment decisions.

This is one of the most significant economic shifts of recent decades. A survey conducted by the Royal Bank of Canada (RBC) found that the increasingly prominent role women are assuming in the high-net-worth universe shows their influence is likely to continue to rise, given the number of younger women who see significant opportunities to generate wealth.

Millennial women (born 1981-2000) are giving the boomers a run for the money, so to speak.  The RBC survey shows that while only 22 percent of boomer women have $5 million in assets, 32 percent of millennial women have achieved that number.

Women and Wealth Management

Women’s investment priorities differ from men’s. However, their differences are not always what would appear to be obvious.  Just as they do in many scenarios, women take a more holistic approach and tend to focus on the long-term picture and fact-based investment decisions.  Seventy percent of women switch their wealth relationship within a year following a spouse’s death.

“Women investors tend to have a more comprehensive approach and they respond to fact-based investment decisions,” says Rafe Klein, Senior Vice President, Investments for David Lerner Associates. “A wealth management strategy based on the sensible middle ground of investing is an approach that can work well for women investors.”

Women and Philanthropy

The growing number of women with wealth – both young and old – are using their wealth to make a difference in the world. Their focus is often not only on how much the investment will return, or what their tax deduction might be, but rather on how much that investment can impact others and create positive change.

The rise of women with wealth could make a major difference in many aspects of society. The next 10 years will reveal some interesting movements of money and investment strategies.


IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC

Number of views (129)

^ Top

About

Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Lawrenceville, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 800-367-3000 Visit our website: www.davidlerner.com

^ Top

x
  • Connect With Us