Now Is the Moment for Women Advisors and ESG Investing

The Forthcoming $30 Trillion Wealth Transfer to Women
Apr 12, 2021 11:10 AM ET

Now is the Moment for Women Advisors and ESG Investing

by Theresa Gusman, Chief Investment Officer of First Affirmative Financial Network 

An enormous transfer of wealth is underway in America that presents an historic opportunity for the financial services industry and specifically for women advisors and customized ESG investing. Female advisors – though they are outnumbered by their male counterparts by more than four to one – are better positioned to guide the clients on the receiving end of this transfer.

First, let’s talk about that wealth transfer and what’s behind it. Today, 70 percent of investable wealth held by U.S. households is held by baby boomers. McKinsey & Company determined through a survey last year that two-thirds of those assets are held by joint households where a woman is present, but not actively involved in financial decisions. McKinsey estimates this shift will put women in control of $30 trillion in financial assets by 2030. Historically, seven in ten women move to a new financial advisor within a year of their spouse’s death. 

Women value investment principles that have a positive impact on challenging issues, such as climate change, gender diversity, social justice, and employee equity. Demographic trends are among several powerful political, economic, and societal forces combining to produce a global investment landscape that demands increased alignment of core values and investment decisions. 

Read Theresa's informative article here