Investing in Women Newsletter - Fall 2013
- Upcoming webinar - "Women & Sustainable Investing: The Future of Your Practice."
- Stepping up - More women assuming family CFO role
- Raising charitable children - Women Give 2013: Charitable giving by girls and boys
- Coping mechanisms - Men, women cope differently with financial emergencies, home ownership
- Retirement confidence among women, men – TIAA/CREF Financial Advice Survey
- What every woman should know – Women and Social Security
- White paper: To succeed, Abenomics must empower women, by Ivka Kalus-Bystricky, Portfolio Manager, Pax World Global Women's Equality Fund, Pax World International Fund
- Practice Management Tip: Giving back – Women Thrive Worldwide
- Advisor Profile: Meet Paul Ellis, Paul Ellis Consulting
New and Noteworthy:
Reports and information that can make a difference for you
Upcoming webinar - "Women & Sustainable Investing: The Future of Your Practice."
Join Pax World Senior Adviser for Gender Diversity Initiatives, Kathleen McQuiggan, as she discusses how advisors can respond to the market opportunity presented by women's growing financial strength and attitudes about investing. Attend the live webinar to earn one hour of CE credits from the CFP Board. Register here.
More women assuming role as family CFO, but gap remains for many couples in sharing responsibility for management of family finances
Survey finds 24% of women are taking primary responsibility for day-to-day financial decisions, up from 15% in 2011. Even more noteworthy, women claiming primary status for long-term retirement decisions more than doubles to 19% from 9% in 2011.
New research on charitable giving by girls and boys
Women Give 2013 offers empirically-based evidence to guide parents on their journeys to raise charitable children. Discussions include raising charitable children, increasing interest in philanthropy, caring about others, developing helping behaviors, volunteering, encouraging empathy and developing a sense of responsibility for others.
Read more at the IUPUI, Lilly School of Philanthropy website.
Men and women cope with financial emergencies and home ownership in different ways
The Future of Retirement: A New Reality Nearly one-third of men would consider dipping into retirement funds to cope with tough financial times but only 23% of women would. Only 14% of men would consider moving to a smaller house to ease the financial burden, while almost twice as many women would. Just two of the differences reported in this study.
Women express apprehensions about retirement savings
Women are less confident than men that they are saving enough for retirement. Just 56% of women are confident they are saving enough, in comparison to 65% of men. This survey details this and other key differences between men and women as they save and invest for the future.
What every woman should know about Social Security
Women represent 57% of all Social Security beneficiaries age 62 or older and approximately 68% of beneficiaries age 85 or older. Here is the updated June 2013 What Every Women Should Know report from the Social Security Administration.
What does Japan have to do to reverse more than a decade of economic stagnation? Empower its women to reach their economic potential.
Recent stock market performance and improving GDP are attributed to Prime Minister Shinzo Abe’s government policies, known as “Abenomics.” Yet to fully succeed in reigniting the economy’s growth, the country must enable more participation in the Japanese workforce among women. Read more in this whitepaper by Pax World’s Ivka Kalus-Bystricky.
Practice Development Idea
Participate in Giving Tuesday and talk to your clients about other ways they can invest in women.
Host a lunch and learn in your office on Giving Tuesday, December 3, 2013, to introduce your clients to a women’s organization that you’ve chosen to support. One organization that Pax World supports is Women Thrive Worldwide. The majority of the world's poorest citizens and more than six in ten of its hungry citizens are women. One in three women worldwide will suffer from violence in her lifetime. Decades of research and experience have shown that when women thrive, their families, communities, and countries thrive too. Too often, though, global policies are not designed with women’s needs in mind. Women Thrive Worldwide advocates with decision-makers in Washington, D.C., and globally. The organization works to ensure that policymakers take into account the needs of women living in poverty around the world, and hear directly from women about their priorities because, when women thrive, the whole world thrives.
Visit the Giving Tuesday website to learn more.
Paul Ellis Consulting
Paul is a certified financial planner and was a franchise advisor with Ameriprise before launching Paul Ellis Consulting. He is a nationally recognized expert on sustainable and responsible investing (SRI). He focuses on helping advisors grow their practices by developing portfolio strategies that employ SRI. While he acknowledges he is not “a purist,” it is clear that SRI was an integral part of his approach with investors and, is a passion for him in his work with advisors today. You can learn more about Paul here.
Let’s start with your growing consulting practice. What led you to launch Paul Ellis Consulting?
About 10 years ago, the industry’s illegal late trading and market timing incidents caused me to reassess my business approach. SRI was the answer for me. Over the next five years, my business grew 20% a year and through the recent recession I had a 98% client retention. As investors, many clients valued their active participation in making companies better. During my last two years as an advisor I began consulting with other Ameriprise advisor teams interested in integrating SRI investment strategies. I recently sold my practice and now do full time consulting with advisors and registered investment advisors across multiple brokerage platforms.
Are there similarities among the advisors you are helping?
I currently work with 10 advisors, six women and four men, representing a range of practice sizes. All are experienced with more than five years in the business. Two are among Barron’s Top 100 Women Advisors. There are two primary reasons advisors decide to increase their understanding and use of SRI: personal values and client demand. Themes intrinsic to SRI resonate with the personal values of many advisors: social issues like gender equality, women’s empowerment, or diversity; environmental issues like climate change; workplace safety; and quality of life issues. At the same time, client demand is growing. Advisors I work with often have high net worth clients who serve on boards of public or non-profit organizations. The organizations address SRI in their investment management. In turn, the clients ask their financial advisor what role SRI should play in their personal portfolios. Right now is a window of opportunity to gain competitive advantage by integrating SRI into existing client service and marketing plans. I help advisors get there.
Going back to your experience as an advisor, did you see differences in how women and men approach decisions about investing and saving for retirement?
In my experience, women are naturally drawn to SRI’s value proposition. They get it. The societal impact and quality of their investments are inseparable from their quality of life. Women are attuned to quality when purchasing products, in their customer experience and in their role as investors. With the growing economic influence of women, SRI is a huge opportunity.
Men, on the other hand, tend to focus on performance. Their concerns about future opportunities for their daughters or environmental quality for the next generation get separated from the performance/risk-reduction aspect of investing. Fortunately, we have a wealth of evidence today that can help overcome longstanding myths about sacrificing performance to pursue SRI and demonstrating interrelationships between the values integral to environmental, social and governance (ESG) analysis and better shareholder outcomes.
Based on these differences, did you employ focused marketing tactics with female prospects and clients?
Women are risk aware. They seek a total return consistent with their objectives through investment strategies that invest to minimize volatility and risk. Their proclivity for having a positive social impact calls for marketing approaches that highlight those aspects of an investment’s objectives. To become even more attuned to the interests of my clients, I developed a simple questionnaire. I listed ESG criteria and asked clients to rank what was most important to them. It gave me insight and information about clients that I could not gather in any other way.
Gender Diversity Initiatives,
Pax World Management LLC
Pax World recently launched its Women & Wealth initiative to provide women and their advisors with the knowledge and tools needed to face the financial challenges unique to them, such as overcoming the wage gap, suddenly becoming single or a widow, serving a dual role as earner and caregiver, and planning for retirement. The program includes workshops, written materials and other planning tools.