Financial advisers have been warned not to ignore the needs of women. When it comes to investing, women are generally less tolerant of risk than men but risk profiling firm FinaMetrica is warning advisers to act in the best interests of both partners, not just the man’s.
“Our data shows with five out of six couples, men tend to favour riskier investments, while women typically have more conservative tastes,” said FinaMetrica co-founder Paul Resnik.
“Advisers shouldn’t ignore the needs of the less risk-tolerant partner, who is usually the woman,” said FinaMetrica’s Paul Resnik. “Still today, financial advisers often skip the process of separately assessing a couple’s risk tolerance and either apply the male’s risk tolerance in determining a financial plan or superimpose their own preferences on the couple.” However an article published today in Money Marketing – a financial industry trade paper – warns that the adviser sector must work on changing its “old school” attitude towards female clients.
Meanwhile a report from KPMG said the industry has focused on engaging male investors for too long. It says: “With wealth shifting to new demographic groups and women typically outliving men by five to six years, investment managers needs to re-evaluate how to engage the female investor and whether or not they will be looking for a different investment philosophy.”
Experts reckon that the established perceived attitude of women as not being risk-takers needs to be challenged – or millions could face disappointing returns from investments.Reuse content