If you walked into the average bookstore, you'd think that women rule the roost when it comes to personal finance. From Suze Orman's now-classic Women and Money to the more recent (and more colorfully titled) Bitches on a Budget, there's no shortage of do-it-yourself financial advice tailored to women.
Apparently, though, when women make the momentous move from self-help to seeking professional advice about investing and retirement, things go rapidly downhill. A recent study by the Boston Consulting Group revealed that women perceived themselves as receiving wealth management services at a level of quality that is inferior to that received by their male counterparts.
According to the study, women are the key decision-makers when it comes to 27% of the wealth worldwide: that's $20 trillion! But despite the massive chunk of power they wield, 55% of the women surveyed in the study said they felt their wealth manager could do a better job of advising them. Almost a quarter of the respondents said private banks needed "significant improvement" in the services they offer to women.
"The dissatisfaction stems from the unshakable perception that men get more attention, better advice, and sometimes even better terms and deals," according to study co-author Peter Damisch. "We heard this sense of subordination time and time again in our interviews."
This perceived disparity in service arose from several key disconnects in the relationships and communications between women and their financial advisers. Manisha Thakor, Chartered Financial Analyst and women's financial literacy advocate, offers some steps savvy female investors can take to avoid being under-served by their wealth managers and investment advisers:
1. Find your adviser and get your financial education from women-run resources.
The financial services industry is dominated by males and therefore the "DNA is structured around the male experience," Thakor explains, adding that she sees many firms making an effort to change this. Most financial advisers are men, who may not inherently understand the whole-life nature of the average woman's financial plans and needs. They also may have very different communication styles than their women clients.
Thakor recommends women use women-created resources like LearnVest and DailyWorth to educate themselves in order to avoid the intimidation factor when talking about investment products with their advisers. She also encourages women to consult Garrett Planning Network, founded by Certified Financial Planner Sheryl Garrett, to locate a local certified financial planner who works on an hourly-fee-only basis. Taking these steps, Thakor explains, may alleviate the concern expressed by many women in the BCG study that they were not being taken seriously or talked to on the same level as male clients by their financial advisers.
2. Expressly state your ideal career trajectory, then ask how you should alter your investment plans accordingly.
In the BCG study, women stated that their investment advisers fundamentally misunderstood what was actually important to them, and recommended a too-narrow range of inappropriate investment vehicles as a result. Many said their advisers assumed they had a lower risk tolerance than they actually did, or that their advisers focused on short-term results and disregarded their long-term goals, which often included time out to care for a child or parent.
Thakor offers women a script of sorts to remedy this communication disconnect. "Go in and say: "I want to be a mom and I may take X amount of time out of the work force," she advises. Then ask, "How do we adjust how much I need to save and how I should invest to compensate for this?"
3. Start saving early.
We've got a week to go before the District's Democratic primaries, and both Mayor Adrian Fenty and D.C. Council Chair Vince Gray are in the final push to claim mayoral victory in the contest.
But of the two campaigns, it seems that Gray's is throwing everything it has at unseating Fenty. Late last week, they rolled out two new TV ads, both of which appear to be in relatively heavy rotation on local cable stations. And today the Gray camp unveiled "Formerly Fenty," a website highlighting residents -- including former Fenty administration officials -- that have turned on Fenty over the last four years. The site has six YouTube testimonials from such individuals, and allows others to add their name and personal story to what is a growing list of the disaffected. (Gray campaign manager Adam Rubinson could probably add his name to the list; he was a Fenty volunteer in 2006.) The website even uses the color scheme and font used by the Fenty campaign, and copied the format of the Fenty's campaigns first TV ads.
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caption id="attachment_100054982" align="alignnone" width="300" caption="Eat lead, eco loons!"] A mournful post from my old sparring partner the Ho...
Arrowheadlines: Chiefs <b>News</b> 9/23 - Arrowhead Pride
We're over the hump and headed into Sunday. The Kansas City Chiefs are seeing a lot of guarded love. For the most part, people can't ignore our record and at the same time can't ignore our offensive production. Here's today's news.
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Formula 1 supremo Bernie Ecclestone plans to make a fresh push to introduce his gold medal system into the sport, after suggesting that the new points system introduced this year has not improved matters.
If you walked into the average bookstore, you'd think that women rule the roost when it comes to personal finance. From Suze Orman's now-classic Women and Money to the more recent (and more colorfully titled) Bitches on a Budget, there's no shortage of do-it-yourself financial advice tailored to women.
Apparently, though, when women make the momentous move from self-help to seeking professional advice about investing and retirement, things go rapidly downhill. A recent study by the Boston Consulting Group revealed that women perceived themselves as receiving wealth management services at a level of quality that is inferior to that received by their male counterparts.
According to the study, women are the key decision-makers when it comes to 27% of the wealth worldwide: that's $20 trillion! But despite the massive chunk of power they wield, 55% of the women surveyed in the study said they felt their wealth manager could do a better job of advising them. Almost a quarter of the respondents said private banks needed "significant improvement" in the services they offer to women.
"The dissatisfaction stems from the unshakable perception that men get more attention, better advice, and sometimes even better terms and deals," according to study co-author Peter Damisch. "We heard this sense of subordination time and time again in our interviews."
This perceived disparity in service arose from several key disconnects in the relationships and communications between women and their financial advisers. Manisha Thakor, Chartered Financial Analyst and women's financial literacy advocate, offers some steps savvy female investors can take to avoid being under-served by their wealth managers and investment advisers:
1. Find your adviser and get your financial education from women-run resources.
The financial services industry is dominated by males and therefore the "DNA is structured around the male experience," Thakor explains, adding that she sees many firms making an effort to change this. Most financial advisers are men, who may not inherently understand the whole-life nature of the average woman's financial plans and needs. They also may have very different communication styles than their women clients.
Thakor recommends women use women-created resources like LearnVest and DailyWorth to educate themselves in order to avoid the intimidation factor when talking about investment products with their advisers. She also encourages women to consult Garrett Planning Network, founded by Certified Financial Planner Sheryl Garrett, to locate a local certified financial planner who works on an hourly-fee-only basis. Taking these steps, Thakor explains, may alleviate the concern expressed by many women in the BCG study that they were not being taken seriously or talked to on the same level as male clients by their financial advisers.
2. Expressly state your ideal career trajectory, then ask how you should alter your investment plans accordingly.
In the BCG study, women stated that their investment advisers fundamentally misunderstood what was actually important to them, and recommended a too-narrow range of inappropriate investment vehicles as a result. Many said their advisers assumed they had a lower risk tolerance than they actually did, or that their advisers focused on short-term results and disregarded their long-term goals, which often included time out to care for a child or parent.
Thakor offers women a script of sorts to remedy this communication disconnect. "Go in and say: "I want to be a mom and I may take X amount of time out of the work force," she advises. Then ask, "How do we adjust how much I need to save and how I should invest to compensate for this?"
3. Start saving early.
We've got a week to go before the District's Democratic primaries, and both Mayor Adrian Fenty and D.C. Council Chair Vince Gray are in the final push to claim mayoral victory in the contest.
But of the two campaigns, it seems that Gray's is throwing everything it has at unseating Fenty. Late last week, they rolled out two new TV ads, both of which appear to be in relatively heavy rotation on local cable stations. And today the Gray camp unveiled "Formerly Fenty," a website highlighting residents -- including former Fenty administration officials -- that have turned on Fenty over the last four years. The site has six YouTube testimonials from such individuals, and allows others to add their name and personal story to what is a growing list of the disaffected. (Gray campaign manager Adam Rubinson could probably add his name to the list; he was a Fenty volunteer in 2006.) The website even uses the color scheme and font used by the Fenty campaign, and copied the format of the Fenty's campaigns first TV ads.
robert shumake
'Climate Change': even Porritt knows the game's up – Telegraph Blogs
caption id="attachment_100054982" align="alignnone" width="300" caption="Eat lead, eco loons!"] A mournful post from my old sparring partner the Ho...
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Formula 1 supremo Bernie Ecclestone plans to make a fresh push to introduce his gold medal system into the sport, after suggesting that the new points system introduced this year has not improved matters.
robert shumake
'Climate Change': even Porritt knows the game's up – Telegraph Blogs
caption id="attachment_100054982" align="alignnone" width="300" caption="Eat lead, eco loons!"] A mournful post from my old sparring partner the Ho...
Arrowheadlines: Chiefs <b>News</b> 9/23 - Arrowhead Pride
We're over the hump and headed into Sunday. The Kansas City Chiefs are seeing a lot of guarded love. For the most part, people can't ignore our record and at the same time can't ignore our offensive production. Here's today's news.
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