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Advice for Financial Advisors

Here’s a question I was recently asked during a podcast.

What would you like to tell the financial industry about how, specifically, they can better serve women?

Oh boy. So much to tell. So little space.

But I’d start with this:

Women are NOT Men!

Obvious, right? But clearly, the financial industry hasn’t gotten that memo.

I’m a big fan of financial professionals. I’ve had the same advisor for many years (after going through nine others that didn’t get the memo either). I even wrote a booklet; Finding a Financial Advisor You Can Trust.

Sadly, the bulk of advisors (I’m including both sexes here) still live in the dark ages when it comes to female clients.

Here are my suggestion for how the financial industry can shape up and better serve women. I call it:

What Women Wish You Knew Before They Walk into Your Office—Part I

1. Women are all about relationships.

Men are transaction oriented. Men communicate to obtain info, establish status, and show independence.

Women are ‘other’ oriented. Women communicate to create relationships and make connections. So when dealing with women, think in terms of ‘connecting with’ rather than ‘selling to.’

2. Inspire rather than frighten.

The industry seems to think the best way to motivate women is with scary statistics and worst-case scenarios. But fear produces paralysis in most women.

If you want to motivate a woman, speak to what inspires her, NOT what scares her.

While men define success as being in control, women define success as how well they can help others (it’s that relationship thing!). So, instead of filling her with fear, show her how informed investing allows her to help people she loves and causes she’s passionate about.

More pointers coming in Part II. Meanwhile, feel free to send this list to any advisor you know. You’ll be doing them a big favor.

As a woman, what do you want in a financial advisor? Tell me in the comments below.

Comments & Feedback

  • Mandi

    Barbara well said. Agreed. Men do not attempt to understand women’s needs for investing. And the one woman I worked with she seemed to do the opposite (e.g., put a large chunk of money is the organizations stock, which tanked) of what I needed to set an investment strategy to purchase a house and plan for a family.

    My questions are:
    How does one change an industry that is based on commission and employees who only think of their bottom line vs. their client?

    What other incentive would get their employees understand their lack of engagement and relationship building is a negative impact for themselves and the company?

    • Lisa

      Hi Mandi,

      Although, I was advised to buy a well performing mutual fund, I have a feeling the financial advisor was selling me a product he got a kick back on, not necessarily the best product on the market.

      Also, financial planning isn’t just about buying a home or family planning. I witnessed a woman being snapped at “that’s not your life”, by her husband when she wanted something more other than binge watching CNN news, and eating a slab of cake from Safeway. Having your own income and investments is a way of always safeguarding your autonomy. Financial advisors need to be more financial therapist than sales person!

    • barbara huson

      Mandi, I’m so sorry you had that bad experience! I too went through 4 advisors till I found the ‘good one’! The industry IS changing. The key is to find an FA who is a fiduciary, not working on commission. A fiduciary, by law, must put their clients interests first and not work on commission. I sure hope you find someone who’s a fiduciary and you can trust. Vetting is important. Good luck.

  • Lisa

    I remember the first time I went to see a financial advisor in my early 30’s. I wanted to buy a mutual fund. I had been reading up on all the different types of mutual funds and I wanted a professional opinion on which one was the best type to get.

    The first question HE asked me was “are you getting divorced?”. It was such a deeply personal, irrelevant, sexist, question to ask someone you’ve just met. His assumption seemed to be that women only thought about money when they were about to get divorced. Probably would have been more relevant to ask me if I had any dependents. A child or husband I was supporting.

    ALL women need to think about money. Not just divorcing ones. That’s the message I think I would want a financial advisor to stress. I became a lot more mature in my marriage when I started to think about it a lot more seriously. It gave me a lot more freedom in my marriage, too. I think I sold that mutual fund I bought from “Robert” to buy a side hustle business which took me on an adventure.

    • barbara huson

      Oh Lisa, there are still so many guys out there like that. Glad you were smart enough to not get sidelined by his sexist remarks. You’re a smart woman!!!

  • Lisa

    Thanks, Barbara.

    I’ve always wondered what the motive was behind asking me that intrusive question!

    Maybe he wanted me to postpone any purchases for legal or tax reasons or maybe he was hoping I would receive a big settlement he could manage. I felt funny being asked that question while looking at a photograph of his wife with his two kids who lived in Concord while he worked in S.F every day. I worked in S.F everyday, too. Just wanted to do something productive with my money like him.

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Meet Barbara Huson

When a devastating financial crisis rocked her world, Barbara Huson knew she had to get smart about money… and she did. Now, she wants to empower every women to take charge of their money and take charge of their lives! She’s doing just that with her best-selling books, life changing retreats and private financial coaching.

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