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Women and Wall Street: How the Conversation Has Changed

When Emerson wrote: “Adopt the pace of nature: her secret is patience “, he could hardly have foreseen how true those words would ring with respect to women being recognized by Wall Street as the most powerful  economic demographic to be reckoned with. 

Thirty years ago when I first started practicing as a new financial advisor at one of the most venerable firms on “The Street", I remember my astonishment that women were barely recognized as decision-makers in their marginal role as "the wife of the client".  I immediately set about changing that by creating and presenting financial education seminars exclusively for women.  Management thought I was crazy when I suggested that we should initiate a women-centric financial education program.  Needless to say, I continued on my own to reach out to female audiences as a band of one. 

“And the Spring comes slowly up this way. “ Samuel Taylor Coleridge

Last week a major milestone for women was reached as a substantial presence in financial services (a subsidiary of BNY Mellon Bank) published a report calling out the import of women as the most significant consumer entity ... and one not to be ignored: “Women Are Not a Niche Market; They Are a Significant Business Opportunity “.  Acknowledging women’s vast economic power, the real watershed achievement reflected in the report was the first-ever  recognition by the "The Street" that there are significant differences in working with women clients, which financial advisers will need to fully understand in order to meet - and exceed - women’s unique needs and expectations. No longer is it something that is said with a slight smirk and a sly wink.  No less, a leading financial institution calling out to its peers that: 1) this is a real phenomenon and 2) that it's time to look at seriously changing sales and marketing strategies, if they expect to maintain and grow their presence with this newly identified buyer. 

This is indeed momentous for it legitimizes in the most credible way what has been bubbling for a long time beneath the surface. It radically changes the conversation. Those firms I work with who have been early adopters are well on their way to a paradigm shift that isn't all that hard to deploy, but they recognize that there is more to it than just talking more with women clients and making sure to ask how the kids are doing at school. 

There are many layers to the behaviors, attitudes, and roles that comprise the unique differences of women as investors.  It goes deeper than the Men Are from Mars and Women Are from Venus rubric.  Antiquated presentation methods aren't effective and the selling style that has always worked with men is a turn-off for women.  Women may have a long way to catch up, but different doesn't mean dumb.  Understanding the Why and the How of approaching them differently is crucial.

Finally the gap that has divided women and the financial world for so long closes markedly. And I say:  It’s about time you two should meet.

 

Women In The Bulls Eye: The Good, The Bad, and The ...?

The Good:The Age of Women Is Now Fully Recognized

Well, finally, some 40 years after Gloria Steinem and other feministas did those unthinkable things to bring on the revolution, they are noticing. "They" being everyone from Madison Avenue marketers to Wall Street ... and even more recently from the heights of the president of the World Bank. The demographics - and actuarial tables - are finally indisputable.

Meanwhile women are rockin' it, and "They" know we're going to bring it.

The big questions are: Do we know? ... Are we prepared? ... and, as importantly ... Have we stepped up to full ownership?

New Neuroscience Study Says Women Make Better Investors

Neuroscience Says Women Make Better Investors, But Why?

"Women are better wired than men to avoid emotionally driven investing mistakes." Women's more highly developed emotional processing capabilities make it possible says the latest from neuroscience research. Neuroscience Tells Us So While our general tendency of "risk-aversion" continues to leave too many women at impasse regarding investing, those who have taken the plunge seem to actually have an advantage over men according to the findings of Richard L. Peterson, psychiatrist and author of Inside the Investor's Brain (Wiley Trading, 2007) and co-author of MarketPsych: How to Manage Fear and Build Your Investor Identity (Wiley Finance, 2010).  Peterson points to women's higher levels of oxytocin and a thicker corpus callosum (fibers connecting the two halves of the brain) as likely reasons for the differential between the sexes and the basis for his survey results showing women as:

Warning: Is Your Financial Adviser An Authentic Women’s Specialist?

It’s a tough economic environment and that means shrinking revenues for all manner of financial advisers as well as the rest of us.  Searching for new clients is increasingly difficult.

By now it’s well-documented through academic studies that women as a buying group have the majority of the clout and that they control the majority of financial assets in this country.  They are also known within the financial services industry to be largely inexperienced and, to some with predatory instincts, this makes them a highly desirable target.  More so, it’s understood that women especially in divorce are highly vulnerable, impressionable, and since significant dollars are changing ownership, they can be ripe for the picking.

Why Are My C.D. Rates So Low?

Yes, there's no denying it: Interest rates are abysmally low right now. Understanding "why" and the impact on your bottom line, can make a big difference in how you use C.D.'s in the future.

What are interest rates anyway?

Simply put, interest rates can be defined as the “Cost of Capital”, which to put in regular language just means the 'cost of doing business'. Let's take a look:

What Were You Doing Two Years Ago? A Stock Market Post-Mortem

Do you remember what you were doing 2 years ago today?  For most people there was a lot of hand–wringing and much worse as the stock market was cratering again to new lows ...

I remember one client in particular who called me to say she was going to liquidate her entire portfolio … she just couldn’t take it anymore.  She had been advised to do so by her CPA.  As you all l know I don’t manage money any longer, but I do help clients in selecting their financial advisers as just one part of our work together.  Given my 26+ years of watching markets and having lived through some past very dark market days, I recognized this as a sign.  A sign that things were about to turn for the better …

The Five Most Common TRICK Investment Proposals

Investment proposals often seem like they are simply too good to be true, and unfortunately they usually are. We created five of the most common investment sales tactics purposely used to trick you into making a shaky investment. Here are FIVE quick and easy phrases that everyone needs to beware of:

What Your 401K Means Today

In September of 2008, I wrote an article discussing why putting a halt on your 401K contributions during the recession is not a "smart money" decision. According to a survey from The Investment Company Institute, people have been following my advice (Thank you!)

A study following 3,000 households found that 90% of those households had a favorable view of their 401K system and 73% are confident that their plan will help them achieve their retirement goals. Another survey reported that six out of ten Vanguard 401K participants through the third quarter of 2009 had a balance in their accounts that was similar to or larger

401K's: How to Evaluate Your Asset Allocation

Chances are right about now, you may be wondering about those 401K investments; like many, you may also be immobilized or you may be thinking that because you picked some funds from the menu that your company gave you,...that you're done. But,Wait...There's more!!

Here's one simple thing anyone can do RIGHT NOW to insure that you're not shortchanging yourself.  READ: Maximize your opportunity for performance through asset allocation in your portfolio.

I've written previously about the tremendous significance of asset allocation and its being one of the key things anyone can do right now to fortify their portfolio.

Its more than salutary effect on your investment performance...Plus proven ability to cushion bumpy rides (help mitigate risk), remains a constant - even for uber-hero-investor, Warren Buffett. (If it's good enough for the Oracle, it's good enough for me!)

Lessons Learned from the Experts (Wall Street and Warren Buffet)

While I was visiting with a friend of mine the other day, the topic turned to the recent financial uncertainties plaguing Wall Street. My friend and her husband left Russia to come to the US over 20 years ago.  They felt  compelled them to leave their homeland because of the our freedoms, rights, and opportunities afforded by the presence of capitalism in the United States.