Women want financial peace of mind — not stack of cash: Research

Planning seen more as protection against the unexpected, rather than a wealth accumulator
MAR 29, 2012
When it comes to women investors, the conventional wisdom is often wrong, according to research by LPL Financial LLC. "There is a sea of sameness when it comes to marketing materials and approach," said Marissa Fox-Foley, executive vice president of marketing at LPL Financial, the nation's largest broker-dealer and a unit of LPL Investment Holdings Inc. After conducting research that included a survey and focus group studies, Ms. Fox-Foley's group found that women go through identifiable life stages that require different approaches. A behavioral psychologist helped condense the findings into a guidebook, available to advisers along with marketing materials and best-practices guidance through the web portal WomenInvest, which was launched this week. The guidebook offers language suggestions and even nonverbal communication advisers should use to build stronger relationships with women. It also provides specific guidance on working with women who are in a relationship, in transition, in business or in the retirement stage of their lives. One of the group's most intriguing findings is that women investors place far more importance on using financial planning to gain peace of mind than on the concept of accumulating wealth. "Women see financial planning as a way to protect themselves against the unexpected," Ms. Fox-Foley said. "Linking the financial planning relationship to achieving peace of mind is more relevant to female investors than wealth accumulation." Another key finding is that even when the husband takes the primary role in financial planning, the wife plays a more active role behind the scenes than many advisers realize, Ms. Fox-Foley said. Frequently, couples discuss financial issues extensively between themselves, even though the husband takes the lead at the financial adviser's office.

Latest News

RIA M&A slowdown threatens record streak, DeVoe says
RIA M&A slowdown threatens record streak, DeVoe says

Geopolitical shocks and market volatility pushed advisor deal decisions off course, denting third-quarter transaction volume by 19 percent.

Why serving women became our wealth management growth strategy
Why serving women became our wealth management growth strategy

Hendershott Wealth Management's Hilary Hendershott on turning a niche for women into an operating strategy, not a marketing pitch.

Advisor moves: Raymond James lands $1.25B team as Merrill loses two
Advisor moves: Raymond James lands $1.25B team as Merrill loses two

Iowa's Greenwood Wealth Partners exits D.M. Kelly as UBS and Ameriprise win Merrill Lynch recruits in California and Florida

Never a losing day: CFTC alleges $950 million forex Ponzi scheme
Never a losing day: CFTC alleges $950 million forex Ponzi scheme

Less than 1% of pool funds went to actual trading, CFTC says

Fintech bytes: Northwestern Mutual picks Jump for enterprise AI
Fintech bytes: Northwestern Mutual picks Jump for enterprise AI

Plus, SEIA builds a governed data foundation for its in-house AI and Snappy Kraken debuts a read-only marketing coworker for advisors.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains