The Rise of Women in Wealth Management: How Female Baby Boomers Are Shaping Estate Planning
As Baby Boomer women increasingly assume control over family finances, their influence in wealth management and estate planning is becoming more pronounced. This demographic shift is not only reshaping financial advisory services but also highlighting the unique considerations women face in estate planning.
The Growing Financial Influence of Women
Women are projected to control a significant portion of the $30 trillion in financial assets that Baby Boomers will possess by the end of this decade. McKinsey & Company
This transfer of wealth is largely due to women's longer life expectancies and their increasing participation in the workforce. As a result, women are more frequently taking the helm in managing family wealth and making critical financial decisions.
Unique Estate Planning Considerations for Women
Despite their growing financial influence, women often encounter distinct challenges in estate planning:
Longevity and Healthcare Costs: With women generally outliving men, they must plan for extended retirement periods and potential long-term healthcare expenses. This necessitates strategies to ensure sufficient resources are available to maintain their quality of life.
Financial Confidence: Studies indicate that women may have lower financial self-confidence, leading them to seek advisors who can provide education and empower their financial literacy. Cumberland Trust
This underscores the importance of choosing advisors who offer personalized guidance and support.
Advisor Relationships: Notably, nearly 70% of women change their financial advisor within a year of their spouse's death, often due to feeling underserved or overlooked. Dunham & Associates Investment Counsel
This highlights the need for advisors to engage women proactively and understand their unique goals and concerns.
Strategies for Effective Estate Planning
To address these considerations, women should:
Engage in Comprehensive Planning: Develop a holistic estate plan that accounts for longevity, healthcare needs, and wealth transfer goals.
Seek Collaborative Advisors: Work with financial and legal professionals who prioritize communication, education, and personalized service to build confidence and understanding.
Regularly Update Plans: Life events such as marriage, divorce, or the birth of grandchildren can significantly impact estate plans. Regular reviews ensure that the plan remains aligned with current wishes and circumstances.
Conclusion
The increasing role of women in wealth management signifies a transformative period in estate planning. At the Law Office of Jeffrey Blair, we understand and embrace this trend, recognizing the unique challenges and opportunities women face in securing their financial futures. We are committed to partnering with women to craft personalized estate planning solutions that reflect their goals, values, and aspirations, ensuring they leave a lasting and meaningful legacy.
Ready to take control of your estate planning? Schedule a Peace of Mind Planning Session with the Law Office of Jeffrey Blair today.
