According to an Investment News article about women and money, a “study by The Boston Consulting Group found that women were more dissatisfied with the financial services industry than any other that affected their daily lives. Women were reported as being treated with disrespect and condescension, and given poor advice specifically because of their gender.”
Wow! While this revelation does hint of “victimhood” a tiny bit, that’s still a pretty big statement about the relationship women have with their financial advisors! Why do I suggest victimhood? I do so because this situation can be changed completely by women IF they choose to change it by owning responsibility for their money.
The Investment News article also stated:
“ As almost every study and survey taken in the last few years has concluded, women are eager to find the right adviser but are unhappy with the services and products offered to them by the financial advisory industry. “
This is especially interesting in light of the fact that women control over $18 trillion in consumer spending, hold about 30% of global wealth and are the sole head of household in 32% of U.S. homes, according to the article, packed with telling numbers about women and money.
This leads me to ask why any woman would pay for a service that isn’t working for them. Would women ever tolerate substandard relationships and performance in other areas where they are the ones hiring, evaluating and paying for services and products they are receiving? I certainly don’t think that we would.
So, what’s the answer? Why does this crazy paradigm exist, and more importantly, how can we make it better?
- Investment Education. Know enough to ask good questions, and understand the answers. This allows you to wisely evaluate the products and services you are paying for as the customer.
- Time. Own that managing your money deserves a portion of your time, attention and energy, albeit a very small one.
- Confidence and Empowerment. This is achieved by the items above; investment education and time. And this is exactly what allows you to stand in your power to make choices that will get the results you want with your money, and hence with your lifestyle quality.
- Independence. Know that you can invest your own money, should you choose, with a simple low cost index fund strategy. While this may not be the way you want to go, this knowledge instantly empowers you and puts you in the driver’s seat.
Interestingly, the article also stated that:
“A recent study by Hearts & Wallets, in fact, found that women want a financial adviser who offers low fees that are clear and understandable. Instead of a sales pitch, they want to be taught about products in language they understand. “
Now it’s our job to make sure that is what we get.