Rich women increasingly call the shots, wealth heads say

Rich women increasingly call the shots, wealth heads say
Women control $14 trillion of assets in the U.S., but they're underserved by financial advisers, says Merrill's Sieg
APR 11, 2019

Rich women mean big business for some of the world's largest wealth managers. Women control about $14 trillion in assets in the U.S., which is comparable to the gross domestic products of China and India combined — and they're underserved by financial advisers, said Andy Sieg, president of Bank of America Corp.'s Merrill Lynch Wealth Management unit. The industry needs to hone its services to reflect the growing power of female clients, said Shelley O'Connor, co-head of wealth management at Morgan Stanley. "It's so important that firms listen to what women want," while also increasing diversity among their advisers and branch managers, Ms. O'Connor said at a conference Thursday in Naples, Fla. "The success of wealth management in the years ahead depends on making sure we all look like the clients and communities we serve." (More: Firms can't afford to ignore female clients) Women are becoming more educated, outliving their spouses and inheriting money from their parents, Mr. Sieg said in an interview. Those demographic shifts are becoming more pronounced, giving women greater authority in financial decisions, he said. Representatives from UBS Group, Raymond James & Associates, Ameriprise Financial Inc. and Charles Schwab Corp. also spoke about gender and ethnic diversity to an audience of about 250 wealth managers. "Increasingly, the female member of a couple is the shot-caller," said Mr. Sieg, whose business brought in a record 17,625 new client relationships in the first quarter. "Arguably it's the most powerful trend in our industry."

Latest News

RIA dealmaking window is narrowing, EY-Parthenon's Joshi tells advisors
RIA dealmaking window is narrowing, EY-Parthenon's Joshi tells advisors

Volume is rising and value is falling, but buyers want growth, not just assets.

Mariner runs $35 million tab on AI workforce
Mariner runs $35 million tab on AI workforce

The mega-RIA's Humanity Labs deal aims to free advisors from back-office work, costing $50,000 per year for each of the 700 bots that make up Mariner's AI workforce.

Texas RIA and founder in hot water over crypto-backed model portfolio
Texas RIA and founder in hot water over crypto-backed model portfolio

Washington State plans to fine the firm and its founder a combined $80,000.

Investors accuse First National Realty Partners of fraud in $9.5m suit
Investors accuse First National Realty Partners of fraud in $9.5m suit

The complaint points to a $2 billion firm, unlicensed sellers, and suspended distributions.

FINRA reelects Curtis as chair, adds small-firm voice in Gettenberg
FINRA reelects Curtis as chair, adds small-firm voice in Gettenberg

Board of Governors picks reflect push for balanced large- and small-firm input

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

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income