Female Financial Advisors… yay or nay? Are they up to par?Hampton Wealth
Does being a Female Financial Advisors affect the likelihood of finding work, dealing with investing or acting as a financial advisor? Long-standing cultural standards and stereotypes have kept the financing space a boy’s club, but in this challenging field, some women financial planners have managed to grow and thrive. However, it seems that there is still some way to go in leveling the playing field.
According to the Federal Bureau of Labor Statistics, only 32 per cent of financial advisors are women, and according to the CFP Board, only 23 per cent of advisors with a CFP designation are women. Numbers are even lower for black and Latin CFP holders.
A question of diversity
There’s been a significant increase in requests from potential clients who would like to work with female financial advisors. Prospects are more vocal now, wanting diversity from the individuals they’re getting advice from.
Societal conversations on gender issues are, in part, spurring these prospective clients to talk about their preferences.
Despite gender diversity being accepted in the field of finance, women are making up only about 16 per cent of financial advisers. Many have tried to rectify the gender gap via seminars and recruitment, but we still do not know why so few women are in financial services.
Women deserve to feel motivated to begin a career in an industry dominated by men. Female financial advisors are not only necessary. Their ability to connect with clients and build strong relationships is also a major reason why they can shine in the role.
Being a financial advisor is not just for men. Men are also probably not the only ones using services related to financial planning. Indeed, women are far more likely to become involved with a financial advisor. At some point, 80 per cent of women will be directly responsible for the finances of their household. Moreover, 55 per cent of women working with financial advisors prefer female counsellors.
Women have different preferences
Women and men have different financial objectives; they have different kinds of access to money and approaches. While men frequently focus on potential returns, yields, and risks, women have a wider concept of money and finances. Especially when it comes to making choices that are notably dear to people and things that could affect them.
Just as men and women take different approaches to finance, money and investment, so do women’s financial advisory consultations differ from men’s advisories.
The life of a woman is different from that of a man and this shapes very much the way they see and perceive the world. It shapes their focus. Women ask their financial consultants different questions compared to men, based on their own points of view.
Women financial consultants offering financial advice to women also often manage to better inhabit the point of view of their female clients. This facilitates their sourcing of suitable solutions for their customers. In the first stage, women are less focused on the short-term, monetary benefits that an investment offers, and are more interested in knowing its characteristics and traits, as well as the long-term benefits. This explains how closely women’s financial advice and the promotion of women’s financial literacy are related. It takes time, confidence, and a style of communication with which women are familiar.
Don’t let gender be the only factor
If you find what you are looking for in a woman, her gender is probably going to be part of the reason why you picked her as a consultant. Gender, though, should never be your first and only criteria when it comes to making this decision.
There is no such thing as a one-size-fits-all financial plan for women. Some women might be analytical thinkers who love to juggle numbers while a good number of men are well aware of and familiar with what is typically regarded as a female investment point of view. It’s important to not be smothered by the controversial battle between the sexes, to the point where we paint all sides with the same stroke.
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