Who are Up and Coming in the Financial World?

October 16, 2020

Today I came across an interesting article on the representation of women in the financial world and financial decision. The publisher of the article is McKinsey. 

Not only are the vast majority of financial advisers’ men (female representation is just 15 percent across channels), but also the customers making financial decisions are far more likely to be men than women. In two-thirds of affluent households in the United States, men are the key financial decision makers. 

Is there any reason to think the situation is any different in Europe? 

No. Research done by Norway’s largest bank shows that  

1) Women only has 87 euro in the bank for every 100-euro man has.  

2) 80% of all corporations are created by men  

3) With today’s rate, women won’t be paid equally until 2055 

But there is good news. 

McKinsey continues their article stating Women will be the new face of wealth 

It is good news because the more people that can take charge of their financial future, the better. When an individual knows how to build a better future for himself or herself, it can drive the entire family, the society and human kind forward. 

Today, women control a third of total US household financial assets—more than $10 trillion (Exhibit 1). But over the next decade, large sums of money are expected to change hands 

The biggest driver of this shift is demographics.  

As men pass, many will cede control of these assets to their female spouses, who tend to be both younger and longer lived. In the United States, women outlive men by an average of five years, and heterosexual women marry partners roughly two years older than they  

By 2030, American women are expected to control much of the $30 trillion in financial assets that baby boomers will possess—a potential wealth transfer of such magnitude that it approaches the annual GDP of the United States.3 After years of playing second fiddle to men, women are poised to take centre stage. 

Along with these demographic changes among older women, younger affluent women are getting more financially savvy. Compared with five years ago, 30 percent more married women are making financial and investment decisions, according to recent McKinsey research on affluent consumers. And more women than ever are the family breadwinners, spurring growth in their investable assets 

With a disciplined approach, and a proven strategy, this can be taken to the next level. 

Women are up and coming even more than before. 

That is great news.  

Congratulations to all women, and men, who know how to take control of their financial future and realize their dreams. 

Thanks to McKinsey for putting this article into my attention: https://www.mckinsey.com/industries/financial-services/our-insights/women-as-the-next-wave-of-growth-in-us-wealth-management?cid=soc-web.  

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