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Men are from Mars, women are from Venus. That sentiment was coined by author John Gray as the title to his book about communication between genders in relationships. It illustrates just how different men and women are. These differences are also evident in financial matters. Men and women make their financial decisions for different reasons, including the selecting of a financial advisor.
The selection of a financial advisor often includes the consideration of various factors. How important each of these factors are to wealthy investors will determine what advisor they will hire. Women place a strong emphasis on the advisor’s investment track record, with 24 percent of women indicating that is the most important trait they consider when choosing a new financial advisor, according to recent research from Spectrem Group. The second most important trait to women is that the advisor comes with a strong referral or recommendation from someone the wealthy woman trusts.
Following those top two traits, 18 percent of women feel that an advisor being honest and trustworthy is the most important characteristic when choosing a new financial advisor. Honesty and trustworthiness are the number one trait that wealthy investors look for, so it is revealing that a higher percentage of women feel two other characteristics are more important than being honest and trustworthy. Perhaps women feel that if the financial advisor is coming from someone they trust that the advisor must be honest and trustworthy. Women are also more concerned than men that their advisor be associated with a well-known brand or company, with 14 percent of women indicating that is the most important characteristic versus only 8 percent of men who feel this way.
Men and women feel similarly on the importance of other traits, however. Twelve percent of women feel that the fees or commissions charged by an advisor is the most important consideration when hiring a financial advisor, while 13 percent of men feel the same. Very small percentages of men and women feel that the advisor having products from a variety of companies, or the use of social media, is important in the selection of a financial advisor.
Financial professionals that are looking to increase their percentage of female clientele should be aware that their investment track record be available for their review, and that the advisor have a number of referrals they could identify. Women are also more likely to use a financial advisor, which makes this investor segment an attractive opportunity.
Related: Firm or Advisor: Who Are Your Clients Most Loyal To?