Financial advisors have an outdated idea of how wealthy women get rich and what they want from financial advice. Many advisors still picture female wealth as something that comes through inheritance or marriage.
A new BlackRock survey shows 8 in 10 women attribute their wealth to their professional careers. Only about half of advisors thought the same.
Advisors were far more likely to point to marriage and inheritance. Roughly six in 10 named each source, at least twice the share of women who did.
“Women are an increasingly powerful force in US wealth, and their story is about more than inheritance and wealth transfer,” BlackRock said.
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Bar chart comparing what wealthy women and advisors say makes advice worth paying for. Source: BlackRock ReportWomen Want Investment Returns. Advisors Expect Reassurance
Advisors also misunderstand what these women want them to do with the money.
Half of the women surveyed ranked better investment returns among the top three reasons financial advice is worth paying for. Only 16% of advisors expected that.
Tax results showed a similar divide. Some 41% of women ranked better tax outcomes in their top three, compared with just 12% of advisors.
Among women with at least $5 million, 56% prioritized investment results and 47% tax results.
Bar chart comparing what contributes to womens wealth. Source: BlackRock Report
This is important as 35% of women with at least $2 million have no advisor at all, according to BlackRock. Their biggest unmet need was better coordination between accountants, lawyers, and financial planners.
The market is becoming harder to ignore. McKinsey projects women will control $34 trillion in US assets by 2030, or around 38% of the total.
“The findings challenge some long-held assumptions: women are actively creating wealth, focused on growth and financial outcomes,” BlackRock added.
The survey covered 1,067 women and 409 financial advisors between July 29 and August 23. BlackRock noted that women could select all sources of wealth, while advisors could choose only three.