INVEST IN WOMEN | WOMEN IN PLANNING
Why Are More Women Clients Than Ever Firing Advisors ?
And how do you make sure you ’ re not on the chopping block ? By Tracey Longo
THERE ’ S A RULE IN POLITICS THAT ALSO APPLIES TO financial advice : You don ’ t tell people what is important to them , they tell you . You just have to listen . But the advisor industry at large hasn ’ t been listening to women investors . In fact , women are more disappointed , more disengaged and more likely to leave their male financial advisors than ever before , according to scathing new research from New York Life Investments ’ Advisor Advancement Institute . The research follows up on a benchmark 2019 study .
Women investors report that their financial advisors “ treat them differently .” They also feel more “ patronized by financial advisors ” who they said are “ less likely to listen to their ideas ” and “ push women out of conversations .”
According to the research , the following problems led more women to fire their male advisors :
• Poor customer service ( reported by 39 % of women in the study , up from 27 % in 2019 );
• The lack of a personal connection with their financial advisor ( cited by 32 %, up from 29 % in 2019 );
• Poor performance ( cited by 45 % of women , up from 33 % in 2019 ).
“ Too often we hear the reason why women leave their husband ’ s advisor is because they felt like the advisor was their husband ’ s advisor . Not their advisor . Retaining women clients comes down to building the relationship with them and meeting their client service expectations and needs ,” says Janet Koh , director of practice management at the Advisor Advancement Institute .
Michelle Crumm , the founder and president of Belle Eve Financial , Ann Arbor , Mich ., is one of those advisors who has picked up female clients from male competitors . She says one of her new clients previously worked with a male who “ mansplained things ” and never really listened to the client , educated her or seemed interested in her financial outlook . Crumm ’ s approach is to use empathy , “ a relatable communication style ” and personalized , holistic financial planning to attract and retain women clients — all attributes that women clients prefer , according to the New York Life findings .
Joanne Burke , the founder and lead planner of Birch Street Advisors in Vienna , Va ., says she was recently hired by a woman who terminated her previous advisor because he had sent the client her first retirement plan distribution without discussing it with her first .
“ He had no idea what the woman wanted to do with her money ,” Burke says . “ There was no communication . The trust and relationship were missing .” She adds that many of her clients are retired women executives in charge of their households ’ financial decisions .
30 | FINANCIAL ADVISOR MAGAZINE | MARCH 2024 WWW . FA-MAG . COM