The rise of the wealthy woman

Women are expected to control two-thirds of the nation's wealth by 2030. Here are some of the surprising facts about the way they use their money.
AUG 07, 2014
Women currently control more than $11 trillion in investable assets and counting. Many predict that women will own two-thirds of the nation's wealth by 2030. But some of the characteristics of these women are striking. Based on interviews with financial advisors, here's what I discovered: • They bring home the Benjamins. Two-thirds are earning the same or more than their spouse. Thirty-six percent are out-earning their partner. • They are increasingly making investment decisions. Eighty-one percent are a key player in making investment decisions, and 29 percent are the primary driver. • They have more assets to start. Nearly half came into their relationship with greater investment assets than their partner. I spoke to some of our industry's top advisers and heard some intriguing insights. What are their specific needs? • They come with an entourage. Sixty-five percent of female executives have provided financial assistance for an adult family member. • They have zero time. In addition to their demanding jobs, almost half have primary responsibility for child care, and nearly one in five are overseeing care for an elderly relative. These women lead complex lives, and have constant demands for their time and attention. If you want to help them, think of ways you can help them create clarity, unwind complexity and increase their confidence that everyone will be taken care of. Many executive women are incredible outsourcers, highly seasoned at finding and overseeing resources that can help ensure their lives run smoothly. They rely on their research skills and surround themselves with discerning people to help manage their family's lives and solve problems. Heather Locus, a principal at Balasa Dinverno Foltz, said she has cultivated a variety of resources that her busy clients need. One company she recommends to her clients focuses on solving a myriad of health care problems — from helping families deal with catastrophic illness to making a home wheelchair-friendly and ensuring that meds are taken. Helpers like this not only solve urgent issues but provide day-to-day peace of mind. Even women who aren't juggling everything now are well aware that they will be in the future. They are already thinking about elder care, which other family members can be expected to contribute and what are the family dynamics at play. Many executive women have spent their lives ensuring that everyone else's oxygen mask is secured first. Some of these goals may be keeping her from doing things that are personally fulfilling in her own life. Advisers who are working with them -- and executive women themselves -- can establish plans for success for the rest of their lives when they ask themselves some basic questions: • Is saying “no” to support requests even an option? • Is there a way to accomplish goals for her entourage in a different way? Christine Gaze is the president of Purpose Consulting Group, a New York City-based practice management consulting firm.

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