|
Spectrem research shows that women are cautious investors, and are less likely to be self-directed than men. They are also more likely than men to switch advisors when displeased with service.
This seems counterintuitive considering that women are generally more cautious and slower to act as investors, yet despite that, per Spectrem’s Perspective Affluent Women, 70% of men said that once they are satisfied with a financial brand or provider they would not switch, while only 54% of women said the same.
There are several factors that could lead to this disparity in how women interact with advisors. Women define “quality service” differently than men do, marking themselves as possibly finicky and definitely discerning consumers. Women are less forgiving of things like a lapse in advisor communications or poor printed and online materials and tools. Men tend to overlook these things more, and focus on the one-on-one relationship with the advisor.
Another reason for this “advisor jumping” could be the fact that more affluent women are event driven when it comes to financial planning and decision making; they wait until an event in their life triggers a need and then act. Events like a birth, a death, marriage, and divorce are the types of things to which women react and only then seek out an advisor.
Women are the caregivers of their families and this is not a position that always allows for careful and proactive strategic financial planning. Rather it requires quick and decisive actions. Having a more reactionary and busy lifestyle could be a huge part of how women define their relationship with their advisor.
Perhaps, another facet of the lower advisor loyalty affluent women report could be women’s overall investing style which is generally more passive, less aggressive and with fewer risks. Aggressive risk-tolerant investing strategies must be monitored more often, which women may not find appealing, or even have time for.
Despite all of these reasons, women are less likely than men to be self-directed. And if they are also less likely to maintain a relationship with an advisor, it could follow that women are both getting less professional advice and taking less of an interest in their own finances.
Considering all of the factors that women have working against them in terms building and maintaining a comfortable lifestyle and retirement (lower pay, longer life, less likely to remarry after divorce, etc.) maybe it is time to reevaluate the affluent women and advisor relationship and up the ante in terms of caring for the affluent women’s finances and financial future.
|
High Net Worth Advisor Insights Newsletter April 2008
