The Great Wealth Transfer is on the horizon, and it has the potential to significantly influence women. We must seize this moment to bolster our financial well-being.

In my role within wealth management, I often explore two interconnected themes: the impending Great Wealth Transfer and the importance of mentoring women. Understanding these aspects is key.

The Great Wealth Transfer signifies the $30 trillion that will transition from Baby Boomers to their heirs in the next decade. This shift not only involves wealth inheritance but also represents a growing influence of women in financial decision-making, both as heirs and professionals.

I recently finished reading “How Women Rise” by Sally Helgessen and Marshall Goldsmith. The book outlines twelve habits that can hinder women from achieving raises, promotions, or new opportunities. Notably, many of these habits can also impede financial security.

Here are the key habits from the book that I believe are particularly relevant for women aiming to overcome self-imposed limitations and realize financial potential as the Great Wealth Transfer unfolds.

Overthinking – The Perfection Trap

Women often strive for perfection, becoming consumed by details and potential mistakes. This mindset can obscure our broader financial goals. For those inheriting wealth through the Great Wealth Transfer, it’s vital to understand investment opportunities to ensure sustainable growth.

Complex investment terminology and the plethora of options can be intimidating. Fortunately, resources abound for enhancing financial literacy. Remember, don’t let the pursuit of perfection delay your progress. Start with fundamental investment principles, make informed choices, and gradually embrace risk through small investments. Consider joining an investment club to share insights and learn together.

Articulating Your Needs

Women frequently prioritize the needs of others, often at the expense of their own. This tendency can lead to a perception in professional settings that we lack confidence.

When managing finances, women may focus on how their wealth benefits family members or charity. While these are noble pursuits, it’s crucial to remember that women typically outlive men by nearly six years. Your wealth must last longer.

Prioritize your financial security first, ensuring a solid retirement plan. When you do give to family or charity, make those contributions intentional, reflecting your personal legacy.

Advocating for ourselves is essential. If you’re set to inherit wealth through the Great Wealth Transfer, remember to prioritize your financial future.

Balancing Immediate Needs with Long-Term Goals

Daily responsibilities often consume our focus, making it easy to overlook long-term career aspirations. A common pitfall is excelling in a current role but neglecting to prepare for advancement.

This mindset can also apply to financial health. If we concentrate solely on immediate returns, we risk losing sight of long-term objectives.

Instead, consider all factors influencing your investments. This perspective mirrors the attention needed for career growth. When planning for your financial future, ask yourself:

  • Are you using the right investment vehicles for your long-term goals?
  • Do you know the tax implications and fees associated with your investments?
  • How do taxes and expenses impact your net returns?
  • If you’ve inherited assets through a trust, what is your role?
  • As a trust beneficiary, what rights do you have?
  • If you’re a trustee, what responsibilities and potential liabilities do you face?
  • Do you understand how your assets interconnect with your overall wealth strategy?

Encourage discussions with your advisor that extend beyond investment returns to include tax and estate planning.

Fostering and Utilizing Relationships

Women excel at building authentic connections, yet often hesitate to leverage these relationships for their benefit.

While it’s vital to maintain genuine interactions, women should feel empowered to ask for specific assistance.

With substantial wealth changing hands during the Great Wealth Transfer, many will seek financial advisors who are attuned to women’s needs. It’s important to clarify your expectations when selecting a wealth advisor. Look for advisors who offer more than just positive returns—seek those who understand your aspirations and can provide valuable insights and connections.

Don’t overlook networking with other women investors and professionals. Collaborating can lead to mutually beneficial opportunities.

Consider how informal networking—like conversations on the golf course—can happen in our circles. Leveraging these relationships authentically is possible if we ask for and offer value in return.

As we face the Great Wealth Transfer, shedding limiting habits and norms is crucial for maximizing our financial potential. By taking decisive actions, we can all work toward securing a prosperous financial future.

LET’S TAKE THE NEXT STEP… TOGETHER.