Women and Wealth: 5 Tips To Being Financially Savvy

Introduction to women and wealth

At W8 Advisory we are conscious of the increasing presence of successful female African entrepreneurs and executives and we are equally aware of a shortage of wealth management advice catering specifically for this group of successful women.  The modern African woman is now an influential participant in the creation, management and transfer of family wealth. Given the increasing number of career women in high powered positions, wealth advisers need to begin treating women as a key, if not the main, client category. 

The FT reports that women are accumulating wealth one and a half time faster than men and are expected to hold $72tn of the world’s financial assets by 2020 (in spite of the fact that the gender pay gap is closing at snail’s pace).  Yet women remain a minority amongst private banking clients at major financial institutions. It is clear that women’s wealth and income are growing faster than ever and economic, demographic and technological advances are increasing women’s financial strength. Women tend to live longer, however their salaries peak faster and they also get smaller pay rises as reflected in the gender pay gap (and also due to the fact that many women take career breaks to raise children) 

Ask yourself these questions:

• Where do you see yourself financially in five or ten years?
• What are the things you value most in life?
• What goals do you have for yourself and your family?
• What assets would you like to leave to your heirs?
• What do you envision your retirement to be like? 

2. PLAN FOR YOUR FINANCIAL WELL-BEING for now and the future. Planning means being prepared for unexpected or difficult situations, such as ill health, death or divorce.  Understanding what to do in such difficult situations is often rooted in financial decisions, and being prepared financially may make an unfortunate situation more bearable.  Planning should also include providing for the resources to take care of your loved ones on your demise, including estate planning for the distribution of your assets to your family and beneficiaries on your death. 

3. BE INVOLVED IN YOUR FAMILY’S FINANCIAL WELL BEING, whether it’s the children’s education, financing your family home, providing for aging parents or planning for you and your spouse’s retirement. Don’t be left out of discussions about investments and financial planning when your spouse or partner is discussing with the bank. Today’s women should play a role in managing the family’s finances, as well nurturing the children (as the next generation) with the life skills, emotional intelligence and financial education to prepare them to be preserve and build up the family’s existing wealth.  This is only possible when the woman herself is financially savvy.

4. BE ORGANISED in record-keeping of documents which relate to ownership of assets, financial statements, liabilities (like mortgage and other debts), health and medical information, insurance policies and tax returns.  Make sure that such information is easy to find, as it will always be needed for your regular review of your financial position.

5. CONDUCT REGULAR REVIEWS OF YOUR FINANCES, in the context of your family’s financial situation, as well as the goals and priorities for your family and yourself.  Seek advice from an objective wealth advisor and/or private banker, who understands and appreciates the different nuances in the attitude of women to investments, risk and long term planning.

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