Broker Check
The Great Transfer of Wealth and What It Means for Women

The Great Transfer of Wealth and What It Means for Women

March 12, 2024

In the realm of finance, a monumental shift is underway: the Great Transfer of Wealth. As the baby boomer generation ages, their wealth is transferred to younger generations, with a substantial portion going to women1. In honor of Women’s History Month, let’s explore why the wealth transfer is set to unfold in this way and the many ways women are well-suited for managing finances.

The Great Transfer of Wealth

As I said, a significant wealth transfer is beginning, and estimates suggest that 30 trillion (yes, with a T) dollars will change hands over the coming decades. Women are set to inherit most of the wealth transfer for various reasons, including longer life expectancies, the rise of dual-income households, and changing societal norms.

The Great Transfer of Wealth will present incredible opportunities for women, the most obvious being the chance to invest more, diversify their portfolios, and grow their overall wealth. However, it is also a chance to understand the characteristics and practices that make women uniquely good at managing their finances and the reasons they should feel empowered.

Here are a few ways women approach finances that make them well-suited to navigate the ups and downs.

  1. Long-Term Perspective: Women often approach financial decisions focusing on long-term goals and stability2. This perspective is invaluable in creating sustainable wealth and weathering market fluctuations. It’s a marathon, not a sprint, and women tend to be good at the long game.
  2. Practical Risk Management: Research indicates that women are more risk-aware investors and tend to match their investments better with their risk tolerance3. While this may seem conservative, it often leads to more consistent returns and protects against significant losses.
  3. Commitment to Education: Studies have shown that women spend a lot of time researching investments and are increasingly seeking information and financial literacy4. This dedication to learning equips them with the knowledge and skills needed to make informed financial decisions. Women also tend to turn to financial experts, seeking financial advice rather than trying to go it alone.
  4. Adaptability and Resilience: Women often demonstrate resilience when facing financial challenges, adapting to changing circumstances, and finding creative solutions. This adaptability is an asset in navigating complex financial landscapes.

As financial planners, we are committed to helping clients navigate the Great Transfer of Wealth and the significant opportunity it provides. Feel free to contact us so we can help bring your goals into focus with comprehensive financial planning.

1Forbes, 2024

2Forbes, 2021

3Forbes, 2021

4Forbes, 2021