Opinion: Wealthy women on the rise

Women and wealth are an interesting historical paradox. The path to a woman’s financial success follows a trajectory laid out by men.

Women obtained the right to vote with the enactment of the 19th Amendment in 1920. In 1948, a law was passed enabling women to be a permanent part of military service, but it wasn’t until 2013 that an order was passed permitting women to go into combat.

Throughout history, women have held jobs making them the breadwinner in their family. For example, the first woman to obtain her medical degree was Elizabeth Blackwell in 1849. The first female lawyer, Arabella Mansfield, was admitted to the Iowa bar in 1869.  

Today, 40 percent of families with children under 18 at home include mothers who earn the majority of the family’s income, according to the Pew Research Center. That’s up from 11 percent in 1960.

Along the way, women have managed wealth with competence and dignity. As women continue to rise in the ranks of professions and in entrepreneurial endeavors, they often are confronted with issues relating to the accumulation of wealth.  

Both the amount of wealth controlled by women and the rate it is increasing is extraordinary. According to a 2015 study by the Bank of Montreal’s Wealth Institute, 51 percent, or $14 trillion, of America’s personal wealth is now controlled by women, and it is expected to expand to $22 trillion by 2020.

Women are becoming more empowered because they are expected to take on different roles throughout their lifetimes. This could be anything from being out of the workforce for an extended period of time, loss of spousal income, to receiving a higher income due to a promotion.

With these type of life changes, women are in the position to make some major decisions for the family. Women often become more confident in their decisions when they have face time with an adviser, according to Women, Money and Power Study: Empowered and Underserved, by Allianz Life Insurance Co.

There are four key items most women desire in a wealth manager: A plan, to be listened to, to be heard and to be afforded time to digest information and think.

For example, it is not uncommon to meet with a newly widowed woman whose husband had established a sizeable trust for her. When working with another wealth manager, she feels like they did not listen to her concerns, did not afford her the opportunity to share her feelings, did not explain what the contents of wealth her trust were, and they dictated what could and could not be done with the assets housed in the trust.

To avoid these pitfalls, I strongly encourage women to interview several advisers and find one that listens to them, values their opinion and assists them in setting clear goals. The right wealth manager can provide the right steps to financial freedom by providing financial planning and creating some peace of mind.  

Candice Reed is vice president and wealth management adviser for Central Trust Co. She can be reached at Candice.Reed@centraltrust.net.