4 Words That Can Cost You Millions in Assets

What You Need to Know

How would a married female client introduce you at a dinner party?
If she thinks of you as her husband’s advisor and not hers, you are at risk of being replaced.
Insist on having both spouses at meetings, listen activel, and do not assume traditional gender roles in financial decision-making.

Imagine you’re at a dinner party, and your client’s wife is about to introduce you to another guest. Her choice of words will reveal a critical window into your relationship with the family and, potentially, the future of your business.

Does she introduce you as “my husband’s financial advisor” or “my financial advisor”? It should send a chill down your spine if it is the former. 

This seemingly minor distinction indicates that you have failed to establish a meaningful connection with a key decision-maker in the household, one who eventually will likely control the family’s assets. It suggests that the wife sees you as peripheral to her financial life rather than as her trusted advisor.

We all have witnessed firsthand the implications of the “feminization of wealth.” Women increasingly control a larger share of global assets, whether through their own earnings, inheritances or as the longer-living spouse.

If you’re perceived as “my husband’s financial advisor,” you risk losing the relationship, and the assets, when her husband passes away.

The Feminization of Wealth

The “feminization of wealth” is a term coined by Sallie Krawcheck to describe the anticipated financial landscape in the next several years, with women controlling more money than ever before. This stems from several connected trends.

For instance, a recent article in The Washington Post highlights that women will inherit $30 trillion of baby boomer wealth by the end of the decade, almost equivalent to the annual U.S. GDP and representing three times more than the $10 trillion they control today.

Statistically speaking, men will die before their wives, who stand to control the family’s assets when their husband passes away. According to recent research published in JAMA Internal Medicine, women are typically younger than their husbands and have an average of an additional 5.8 years ahead of them after their husbands pass away. 

Also, women now constitute the majority of college graduates and those with advanced degrees, positioning them to earn higher incomes. The rise in women-led businesses contributes to this trend, as does the growing diversity on corporate boards and the increasing number of female CEOs at the helm of major companies.

Moreover, women are marrying later and thus maintaining greater control over their wealth. Additionally, more single women purchasing homes and an increasing number of women actively investing also play significant roles in wealth accumulation. 

Women frequently change financial advisors after the death of a spouse, research shows. If the wife does not have a solid relationship with you, she will likely seek an advisor she feels truly understands and values her. 

If you hear “my husband’s financial advisor,” you should immediately recognize the urgent need to reassess and revamp your approach. This is a call to action to deepen your engagement with the client’s wife and ensure she also sees you as her advisor. 

7 Strategies to Get Started

Male and female advisors should consider simple strategies to enhance their work with women.

1. Insist on both spouses being present at meetings. And by “insist,” we truly mean it.

Suppose one spouse downplays the importance of attending a planning or investment review. In that case, it is crucial to emphasize that the meeting will proceed only if both spouses are present.