Investing in Women Newsletter - Spring 2013
- Fidelity Millionaire Outlook - Do men and women invest differently?
- GSPDR University's "Capitalizing on the HNW Women Opportunity: How to Connect with Your Clients"
- The Simple Truth About the Gender Pay Gap - Why it should be part of your planning conversations
- The 30% Solution: Growing Your Business by Winning and Keeping Women Advisors
- Practice Management Tool: Charitable Giving Organizer
- Working Together to Advance Women on Corporate Boards- The Thirty Percent Coalition
- Advisor Profile: Jonathan K. DeYoe, DeYoe Wealth Management
New and Noteworthy Reports
Fidelity study sheds light on women's investment decision-making patterns
The Fidelity Millionaire Outlook research study of affluent investors in the U.S. reveals many useful insights into women’s investing habits. For example, women recognize many important benefits of working with an advisor; are investing more conservatively than men; could benefit from investment guidance; and declare greater loyalty to their advisors than men
SPDR University Offers “Capitalizing on the HNW Women Opportunity: How to Connect with Your Clients”
The report from SPDR University cites compelling demographic data suggesting that now is the time to improve how you connect with female clients. Women currently control the majority of personal wealth, 51.3%, in the U.S. The fact that boomer women—the wealthiest demographic most in need of retirement planning assistance—stand to inherit assets from their parents and outlive their husbands by an average of 15 years, underscores the long-term advantages of improving how you work with women.
“The Simple Truth About the Gender Pay Gap”
Are you talking about pay equality issues and challenges with your female clients?
One of the widest gender pay gaps occurs between ages 45 and 54—a time when most workers build the bulk of their retirement nest eggs and a growing number of women find themselves single. This American Association of University Women study examines the reality of the gender pay gap, provides the latest data and evidence, and presents ideas for what women can do about it.
Pershing study finds women advisors are critical to future of Wealth Management, yet remain woefully underrepresented across the industry
“The 30% Solution: Growing Your Business by Winning and Keeping Women Advisors” offers practical insights and ideas on how to better recruit and retain women. The study comes at a time when women make up half the U.S. population and nearly two-thirds of the American workforce, yet female advisors remain woefully underrepresented in the financial industry. In fact, only about 30% of advisors are women — and the numbers are dropping.
Read more by visiting the Pershing web site by clicking here.
Practice Development Idea
Looking to strengthen connections with your female clients even when they aren’t in your office? Consider the charitable giving organizer.
How strong are your client relationships? When asked in a recent survey about their relationships with their clients, 67% of financial advisors said they have a “personal relationship” with those to whom they provide financial advice and products. However, only 38% of high-income investors described their relationship with an advisor as “personal,” a separate survey found.1 As a tax season follow-up gesture, consider reaching out to clients to have a discussion about using this post-tax season to make sure their charitable giving is organized for next year. This could also lead into a natural discussion about updating their legacy planning to incorporate philanthropic interests.
The Thirty Percent Coalition is advancing women on corporate boards
The Thirty Percent Coalition is a group of industry thought leaders, including senior business executives, national women's organizations, institutional investors, corporate governance experts and board members who believe in the power of collaborative effort to achieve gender diversity in public company boardrooms, and in the necessity of attaining at least 30% female representation on public company boards by the end of 2015. The Institutional Investor Committee of the coalition recently reached out to all the companies in the R1000 that have no women on their boards, have been engaged in dialogue with several of those companies; and have also filed shareholder resolutions with some of the companies, asking them to commit to gender diversity on their boards.
To visit Thirty Percent Coalition's web site clicking here.
Jonathan K. DeYoe, AIF, CPWA, LPL Registered Principal,
DeYoe Wealth Management. Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. member FINRA/SIPC.
Comprising a team of five, DeYoe Wealth Management provides wealth planning, accumulation, and preservation to about 160 families. Jonathan’s career started in 1995 and includes tenures at Morgan Stanley, UBS PaineWebber and Salomon Smith Barney. He founded DeYoe Wealth Management in 2002. Active in his community, Jonathan is a member of the Sustainable Business Alliance, is on the board for the Institute for Environmental Entrepreneurship, is a Berkeley Rotarian, and coaches youth soccer. DeYoe Wealth Management is active in the Berkeley Chamber of Commerce and in the world of sustainability.
Does DeYoe’s philosophy of holistic planning, customized asset management, and consistent communication attract certain clients?
We believe that what clients do, not what markets or economies do, leads to success. Behavior is everything. We build sound financial plans and keep a steady hand on the wheel when executing the plan rather than reacting to market or economic cycles. We work with folks who share our philosophy. Many clients are women. Many are artists, authors or other creative professionals. All our clients are friends.
What are the pillars of the firm’s financial solutions?
Planning, implementation, and communications.
Planning illustrates trade-offs and behaviors within the context of the life clients want.
Implementation is based on what we can know and what is likely. We implement with humility and respect, admitting that while no one knows what surprise may be around the corner, reacting with fear and greed is not productive.
Communications focus on consistent messages about markets and economies: market calamities that lead to recovery; economic excitement that sows the seeds of its own undoing; patience and discipline. Communication keeps clients on plan when emotions move them to change.
How do your client events around International Women's Day build relationships?
We sponsor several events annually ranging from fun and social, to educational, to giving back to our community. Our philosophy includes both teaching and showing gratitude for our abundance, knowing that “learning” and “giving” are at least as important as “having” in the production of excellent client outcomes.
Our International Women’s Day Events honor the fact that two of my greatest financial teachers are women and most of our clients are women. The events also acknowledge that the financial services industry must do a better job of respecting and serving women.
As a planning firm focused on creating successful behaviors, do you see differences in the approaches of men and women?
A comprehensive financial plan demonstrates trade-offs that have the highest probability of helping clients attain their goals. While not true 100% of the time, men and women often consider trade-offs differently: women may likely give up something in their current lifestyle to save more toward their goals while men may tend to spend more and assume higher average returns in their plans.
How has serving clients in coordination with CPAs, attorneys, and other financial professionals helped build your practice?
Getting the planning right, such as for tax purposes, for example, is essential. By coordinating with my clients’ accounting, legal, and insurance providers, I also become a resource to these professionals. Today, second to our clients, CPAs are our best source of introductions. Almost a dozen CPAs and attorneys are now our clients and this has been very good for us – I believe because it was first good for them. We serve our mutual clients well, and other professionals recognize our commitment.
For additional information, visit: www.deyoewealthmanagement.com/
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.