HNW women are more likely than men to credit their financial advisor’s acumen as a factor in how they obtained their wealth.
Among High Net Worth investors, women are more likely than men to rely on the services of a financial advisor, according to a recent study conducted by Spectrem’s Millionaire Corner. Of those who identify themselves as self-directed investors, meaning they make all of their own financial and investment decisions, 28 percent of men said they do not use any financial advisors vs. 22 percent of women.
What are the most popular types of advisors for HNW investors? The highest percentage (30 percent) of men and women said they most rely on a full service broker. A slightly higher percentage of men opt for the services of an online broker (14 percent vs. 10 percent of women), while women are more likely to seek the services of an accountant (15 percent vs. 11 percent of men).
Two of the benefits women find in working with a financial advisor, according to a 2012 Millionaire Corner survey, are being able to delegate responsibility to an expert and the peace of mind they say working with a financial advisor gives them. Studies indicate that women are more likely than men to self-report a lack of financial knowledge. The Millionaire Corner report found that only 10 percent of HNW women investors consider themselves very knowledgeable about financial products and investments, compared with 28 percent of HNW men. Conversely, one-third of HNW women respondents said they are not very knowledgeable vs. 11 percent of men (4 percent of women said they are not at all knowledgeable vs. 1 percent of men).
HNW women are significantly less likely than men to say that they enjoy being actively involved in the day-to-day management of their investments (37 percent vs. 55 percent). This attitude becomes more pronounced as wealth level increases. For example, 43 percent of Ultra High Net Worth women said they liked to be hands-on in the management of their investments compared with 67 percent of their male counterparts.
As such, HNW women are more likely than men to credit their financial advisor’s acumen as a factor in how they obtained their wealth (43 percent vs. 33 percent).
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.