The traditional sources of wealth for women have historically been through inheritance from our parents or our deceased husbands, or from financial gain from the divorce of a wealthy husband. Whilst these methods for achieving wealth are still evident, an increasing number of women have created our own wealth through either our job or the ownership of a business, which is independent of our husband and or family.
Whilst men's major motivation for starting a business is financial gain, women tend to cite flexibility, freedom (from corporate structures and politics), being more present with our Children and financial gain as the main reasons for setting up on our own.
Motivations for amassing and protecting wealth are almost identical for men and women. Financial security in retirement is seen as the main priority followed by a better personal lifestyle and enjoyment of the finer things in life. In other words the goals appear to be neatly divided between spending on the present and saving for the future. More intangible factors such as status and the sheer enjoyment of making money, come much further down the list.
Women want wealth to enjoy a better lifestyle. We spend our leisure time and disposable income on holidays and home improvements, just like men. The only significant difference in spending is that men are likely to spend a greater proportion of their disposable income on cars and gadgets whilst women focus on clothes, jewellery, bags and shoes ' so far the cliché holds true.
However, women do invest quite differently to men. We are far less likely to take risks with our money, whether within our personal finance and/or business affairs. Research suggests that more men than women invest in financial products that are considered to be at the riskier end of the financial spectrum such as hedge funds, private equity, derivates and Crypto (including the use of leverage across these investment classes).
Women tend to take longer to come to a decision about what to invest in and are less likely to go to a third party for advice than men. Men are more likely to consult tax specialists, accountants, private banks, brokers and the media. The only source of advice that is more widely used by women than men is the high street bank.
This does not mean they are less successful or able investors than men. It's just not clear to us about where to get started or who to trust, which is why we created Femvestors Global.
Wealthy men are more likely to use personal trainers, chauffeurs, chefs, alternative health practitioners, property search agencies, lawyers and private banks than women. However, wealthy women are more likely to use what may be considered 'lifestyle' services such as personal concierge and shopping services, life coaches, personal trainers, personal stylists, bodyguards and private doctors. Women tend to invest to reach a particular goal, for instance, an education fund, retirement, a major holiday.
Once the investment goal has been reached, women are more likely to 'protect' the fund rather than put it at risk through further investment. So what are the conclusions that can be drawn about marketing financial products and services to high net worth women:
1. Whilst products do not have to be marketed as a 'women only' product, they do need to provide clear, comprehensive information from which we can make an informed choice. As many of the women will be making investment choices without the benefit of advice from independent advisors or tax specialists, everything produced must be jargon free and in plain English. Provide well researched information and support when required.
2. Building a relationship through education. Providing information to women on financial matters that may concern us, in regards to age or lifestyle.
3. Develop products 'themed' around issues such as 'wedding', 'education fund', 'retirement' . Encouraging us to continually invest for our future selves
4. Women do hire personal trainers and are prepared to pay for the personal touch. A 'financial coach' may be the incentive a woman needs to invest in a particular product or organisation
Inspiration from Article Source: https://EzineArticles.com/expert/Pam_Kennett/31862
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