Women in transition—divorcees and widows—are more likely to rely upon a financial advisor than men, according to a new Millionaire Corner study. Divorcees though, exhibit a more independent streak than widows when it comes to consulting with an advisor.
Only 16 percent of divorcees who participated in the survey described themselves as advisor- dependent, compared with 21 percent of widows. A near equal percentage (21 percent and 20 percent, respectively) described themselves as self-directed investors—meaning that they make all of their own financial decisions without any assistance of an advisor—compared to 34 percent of men.
Research has shown that women are less confident in their investment knowledge and acumen than men. Because of this, they tend to be more thoughtful investors, conducting more research and keeping a tighter ren on their emotions. According to our new “Women in Transition” study, 30 percent of men said they are very knowledgeable about financial products and investments, compared with 14 percent of divorcees and 9 percent of widows.
Tellingly, almost half of divorcees (44 percent) said that they enjoy investing and it is something they do not want to give up. Thirty-nine percent of widows shared this attitude.
In working with an advisor, divorcees are more likely than widows (34 percent vs. 30 percent) to consult with one only for a specific need, such as retirement planning or asset allocation advice. An equal percentage (29 percent) consider themselves advisor-assisted, meaning that while they make most of the final financial decisions, they will consult regularly with an advisor.
Divorcees and widows have a clear preference for using full service brokers, but widows are more likely to use an independent financial planner (17 percent vs. 12 percent. Divorcees are more likely to consult with mutual fund company representatives and online brokers.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.