In the world of finance, women are increasingly taking center stage, reshaping the landscape of investing and wealth management. Historically, investment and finance have been perceived as male-dominated domains, but this narrative is rapidly evolving as women assert their presence and prowess in the financial world. 

Today, women are managing more wealth than ever, investing confidently across complex asset classes. They are influencing major policy decisions and financial markets as shareholders and corporate board members. Just a few decades ago, women investors were regularly overlooked by financial advisors and researchers or viewed as less financially confident, less sophisticated and more risk averse. 

As these stereotypes came to the forefront, wealth management practices began evolving into an approach more aligned with women’s unique attitudes toward money. They could then build a strategy to achieve better outcomes for their female clients’ portfolios, families, businesses and, of course, themselves. 

The future of wealth is here 

Fast forward to 2024 and women are no longer a niche demographic. They’re major players in wealth management controlling one-third of total U.S. household financial assets – that’s more than $10 trillion. In less than six years, women in the U.S. are projected to control much of the $30 trillion in financial assets that baby boomers will possess. Women are also the largest beneficiaries of the current transfer of wealth, living an average of five years longer than men. 

Corporate changes 

Women’s diverse attitudes and perspectives on investing are also making a difference in the boardroom and at corporations. Many are bringing those leadership skills to bear on their investments, whether as shareholders or board members. In those seats, they are actively applying lessons from their own careers to encourage the changes they want to see in companies and industries. They’re helping the companies they invest in make more rapid progress toward meeting the needs of women, as well as those companies’ increasingly diverse employees and customers. 

Underinvesting remains a challenge 

Despite all the progress made in the last two-plus decades regarding female investors, underinvestment remains a challenge.  

Oftentimes, for ultra-high net worth investors, the risk of underinvestment seems small. However, as they start to look at strategies for preserving wealth for multiple generations, many see the staggering amount of growth they could miss because of underinvestment. 

While most ultra-high net worth women may have experience trading securities and managing their family’s assets, they may not have the recommended exposure to important alternative asset classes, such as private placements and hedge funds. More than just a source of diversification, these alternative investments can help women take advantage of some of the broader trends in the economy. 

Taking the time to plan 

Many times, as the “CEO of the family,” women say they don’t have enough time to think long term about their estate planning strategy. This lack of time can be a considerable detriment to total financial empowerment that extends beyond wealth and into complete confidence for all major decisions. 

Building a goals-based plan with the help of a private wealth advisor is a critical step to making sure work, life and family are watched over and in unison. Even when your business or family requires your full attention, your wealth advisor can track the stability of your plan and monitor progress toward your goals.  

What’s next? 

Moving forward, we should be able to confidently project that the future of wealth, and to some degree, the future of the financial markets, will be dictated by the direction of women. As their influence continues to grow, so will the transformation of investment strategies and the realization of more inclusive and sustainable financial systems. 

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Ashley Kelly, CFP® is a Vice President-Wealth Advisor or Clarity Wealth, a financial services practice that has built a heritage of managing the assets of affluent families for as many as four generations of wealth. The practice has offices in Naples and Fort Myers, Florida, and Pittsburgh, Pennsylvania. 

Wells Fargo Advisors Financial Network does not provide legal or tax advice sure to consult your own tax advisor and investment professional before taking any action that may involve tax consequences. 

Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. Clarity Wealth is a separate entity from WFAFN.