When it comes to the financial and estate planning processes, we have seen that most women do not participate until they are blindsided by an unfortunate life event such as divorce or the unexpected death of their husband. When that happens, these women are thrown into unfamiliar territory where they suddenly have to figure out how much money they have, where it is, how their assets will be managed, etc. all while trying to maintain their households—and grieve properly.
On a recent episode of our Wealth Matters radio show, two Gaslowitz Frankel partners Adam Gaslowitz and Robert Port met virtually with special guests Stacy Hanley of Lefkoff, Duncan, Grimes, McSwain, Hass & Hanley, P.C. and Tiffany Kent of Wealth Engagement LLC to discuss the importance of “Preparing Women for Prosperity,” and methods wealth advisors can use to engage with women more effectively during these conversations.
Here are some of the highlights from their conversation.
Why is it important for women to participate?
The first problem is that women can run out of money. If women leave their jobs to raise their children, they have experienced the loss of other opportunities and loss of income. If and when they go back into the workforce, we see that a lot of these women don’t know their value—they don’t negotiate their benefits or pay, they are afraid to ask for promotions, etc. All of this financial insecurity compounds over time and leaves them unsure of how to communicate their financial questions, concerns, and needs. When these women get divorced or their husbands pass away unexpectedly, this leaves them completely in the dark.
“We’re seeing a lot of women in their 60s living off of Social Security, and that’s about it,” Stacy adds. “It’s really important that they start getting involved in this process and have a deeper understanding of these processes starting at a younger age.”
Why aren’t women participating in this process currently?
There are so many other priorities ahead of meeting with their advisors or sitting down with their husbands to look at finances. There are kids to pick up, work to handle, houses to maintain, pets to take care of, and so much more. Couples often come up with a system to divide labor, and in the vast majority of cases, men take on all things financial.
“Unfortunately in my profession, I see many advisors only focus on the portfolio and how it’s performing, and that’s not what the woman’s concerns are—she just wants to know if she and her family are going to be ok,” says Tiffany. “We also see that many advisors naturally direct their questions to their husbands because they are usually more fluent in financial jargon and systems. At the end of the day, the purpose of hiring a financial advisor is to discuss your goals and dreams and make a financial plan to achieve them, and this should happen equally with both the husband and the wife.”
The shocking truth is that 80% of men die married, while 80% of women die single, and many of these women find themselves completely unprepared to be their family’s primary financial decision-maker when that time comes.
For more information on why it is so important for women to actively participate in the financial and estate planning processes, as well as tips for advisors on how they can better engage with their female clients, watch the full episode of Wealth Matters here.
Gaslowitz Frankel LLC is the Southeast’s premier fiduciary litigation law firm. Our legal team specializes in all aspects of fiduciary disputes, representing individuals, executors, trustees, investors, shareholders, and corporate fiduciaries in complex fiduciary disputes involving wills, estates, trusts, guardianships, and businesses. If you are involved in a fiduciary dispute, contact us for a consultation.
