Source: Netwealth. Assumed gross annual return of 6% and an initial investment of £250,000
The legacy and challenges of wealth management
These multiple and diverse constraints are not helped by the fact that when it comes to those who should be there to help, many women view the wealth management industry as male-oriented, unwelcoming and full of jargon. Even those who have a good relationship with their wealth managers may be quick to admit that they don’t feel they have ever truly understood the cost of the service. If pressed, they may recall a number of recommended investments which they didn’t understand and performed poorly.
Despite the pattern of the past, my bet is that this investing gap is going to close, and fast.
The benefits of a modern, user-friendly experience
When women put money aside for their financial goals, we feel in charge of our futures. The satisfaction from investing and meeting these goals only grows as we get older as long as the means are there to create an accessible and user-friendly experience.
At Netwealth, I am seeing a clear and exciting trend among our female clients. By combining modern technology with a client-facing service, women find investing to be empowering; it finally brings the topic of finance alive. It allows them to plan for their financial goals, just as they set themselves goals in all other areas of their hectic, multi-tasking lives. It gives them control.
Of course, our confidence is boosted once we can plan for what we will live on in our retirement, or when we can clearly compartmentalise the fees necessary for our children’s education, or figure out the potential cost of long-term care for an elderly parent.
As I see time and again when women come to our offices, they have distinctive preferences when it comes to wealth management. They are willing to embrace digital technology, have a strong desire for clarity and transparency and feel great distaste at having providers who treat them as inferior or who hide the real costs of their service. Women are doers and also delegators, they have clear views on what they want to achieve and are keen to fit their financial decisions into the rest of their busy lives rather than having to do it all themselves.
Now is the era of change. Women are increasingly aware of their financial position and I believe that with the help of modern technology they will play a greater role in safeguarding their own and their family’s long-term financial welfare, just as they prioritise wellbeing in all other areas of their family’s lives.
Charlotte Ransom is Founder and CEO of Netwealth
Please remember that when investing your capital is at risk