How to keep a client's widow from dumping you

The odds are against advisers, but it's not impossible to retain female clients after their spouses die
SEP 20, 2011
Almost nine out of 10 women switch their advisers within one year of being widowed. To hold on to, or attract, those women, advisers need to focus on their unique retirement needs. The biggest risk that women face in retirement is longevity, or the risk of outliving their money, said Catherine Saunders, head of the registered investment adviser business at Putnam Investments. Women tend to live five to seven years longer than men. Another complication: The average woman works 12 years less than men, and women still make only about 70 cents for every $1 that men make for the same job. “Women's biggest concerns are whether or not their assets are going to keep up with them,” Ms. Saunders said. The best approach to building a portfolio for a woman is to focus on her goals and how best to meet them, said Janet Acheatel, an adviser at HoyleCohen LLC. “Advisers need to remember that what she says is more important than what you have to say,” she said. At HoyleCohen, advisers don't start to talk about investment options until around the fourth meeting with a female client, Ms. Acheatel said. Women do tend to be more averse to risk, but they also have a better stomach when it comes to riding out an investment decision, Ms. Acheatel said. Women also have greater communication needs than men, Ms. Saunders added. The typical female client wants four major portfolio reviews a year — two in person — and at least one relationship-building event a year, she said. The communication process should start with couples to increase the chances of keeping the clients' assets in case the husband dies. Ms. Saunders suggests that advisers require both husband and wife to attend meetings, and advisers should remember to engage the wife.

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