In a recent Wall Street Journal article entitled, “Clients for Venus”, female financial advisers describe how women tend to take a different approach from men when it comes to financial planning:
“Men are extremely competitive about money management. They think, ‘how much money can I make and how much more is it than the benchmark or the guy sitting next to me?’ For women, it is about having enough money for our family and the opportunity to build a better life.” – Candace Bahr, managing partner of the Bahr Investment Group, an affiliate of LPL Financial.
“Women want to get to know their advisers through the eyes of other women. Men are not as relational and are more focused on investments rather than the whole-life picture that women seek.” – Heather Ettinger, managing partner of Fairport Asset Management
“Traditionally, men have also approached their finances in a more transactional way, whereas women are looking to talk through their financial decisions.” – Dorie Rosenband, managing partner at &Wealth Partners
While the accuracy of these statements is debatable in these modern times, where “women account for 27% of global High Net Worth individuals” and “control $8 trillion in assets in the U.S.,” one thing is certain: the most effective planning is when clients work together as a team to see both important perspectives. In selecting the right trust structure for a family, for example, the ideal analysis requires both a transactional and relational approach. This way, planning is done to reduce taxes as much as possible, while still keeping key relationships in mind in order to avoid conflicts and protect both the financial and emotional interests of the intended beneficiaries.