About 30 years ago, Susan Musers went car shopping. After he chose the car, the salesman asked:
“I don’t have a husband and I have cash,” she replied.
The exchange left Musers nervous and determined to do more business with women. He has. “I have a female doctor, lawyer, dentist and CPA,” says Mussers, a financial advisor coach at Prosperity Coaching in Scottsdale, Ariz. “And I have a female financial advisor.”
Muusers are not alone. Many women prefer to work with professional service providers. When it comes to financial planners, they can agree with a male advisor’s choice and respect that advisor’s focus, knowledge, and integrity.
But if their husband dies, they can replace that adviser with a woman. About 70% of the time, a widow fires a male advisor within a year of her husband’s death.
How much should gender factor into a woman’s decision to choose a counselor? Should she consider opting out of hiring a male consultant?
“I’m sure there are men who are great advisors,” says Liz Windish, a certified financial planner at Aspen Wealth Management in Denver who works almost exclusively with female clients. “But women may feel embarrassed or uncomfortable discussing certain things with a male advisor, such as getting divorced or having little money saved for retirement. They might feel a little less judged when talking to a woman.”
She adds that if a woman feels inhibited from opening up to her counselor, it can strain the relationship. An advisor who builds more trust and rapport with clients can deliver more value.
“If you don’t fully disclose who you are and your situation, such as marital issues, then you’re not getting the full benefit that a financial planner can provide,” Windisch said.
She suggests that when shopping for a counselor, women pay attention to the conversational rhythm of the introductory meeting. Ideally, the counselor (regardless of gender) will listen and retain what you say and let you do most of the talking.
Better yet, seek out a counselor who asks questions like, “How do you prefer to communicate?” and “How do you learn best?” You want a counselor who listens empathetically, non-judgmentally “and doesn’t seem frustrated or impatient with all your questions,” Windisch adds.
A female advisor may also have a heightened awareness of the challenges that professional women face. For example, many women put their careers on hold to raise their children. Because men earn more on average than women for comparable full-time work, women may want to work with a counselor who assesses the negative effects of the gender pay gap.
In trying to educate the client, the male counselor may go overboard. To demonstrate his deep grounding in investment management, he may use too much jargon to explain the firm’s asset allocation models or proprietary trading strategies.
If male advisers preach, it can be a turn-off, warns Muusers. Instead, it’s better to present the facts and motivate customers to take action.
“In the past, some male counselors would talk to women,” Mussers says. “I would suggest that women look for a counselor who asks a lot of questions as opposed to trying to show off.”
Finally, be wary of any counselor (again, regardless of gender) who spends too much time telling you what to do and what not to do. Female clients may not respond well to a male counselor who tends to say, “You should stop doing that” or “You shouldn’t let this happen.”
More. “He thinks all financial advisors are frauds.” We retired in January without a formal financial plan and my IRA has dropped 30% since then.
Read also: What’s the best way to take RMDs from your retirement accounts? Experts rate the top 3 strategies.
.
[ad_2]