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Many Women Don't Trust Their Financial Advisors

By Crucial Clips     January 11, 2017
The following text is a transcript of a portion of a speaker's presentation made at an industry conference or during an interview. This transcript solely represents the view of the individual who spoke, and not the view of Financial Advisor IQ or any other group.
Source: FA-IQ @ Schwab Impact 2016, Oct. 26, 2016 

BRUCE LOVE, MANAGING EDITOR, FINANCIAL ADVISOR IQ: Hi. This is Bruce Love with Financial Advisor IQ. And I'm here with Amy Florian, founder and CEO of Corgenius. Amy, why wouldn't financial advisors be trusted by women?

AMY FLORIAN, CEO, CORGENIUS: Well, traditionally, financial markets, financial advising, financial services has been a male-centric world. Traditionally, they've worked only with the men. Traditionally, financial advisors are men. And they don't understand the woman's perspective as well.

Men, the way their brains are wired – and this is a physiological thing. More men, their brains are wired, their neural pathways go front to back in the same hemisphere.

More women, their neural pathways are crossing hemispheres. They're connected.

So men are more geared toward those charts, and graphs, and analysis, statistics, actions, returns.

Women are physiologically more geared toward connections, towards seeing the bigger picture, toward emotional connections, toward their families, their goals, their ways of speaking, the way they react in an office.

And what they want from an advisor is different. And many advisors just don't get that.

BRUCE LOVE: How does it change the way that you advise women, if they're looking or experiencing the world differently?

AMY FLORIAN: Well, for instance, you can often impress a male client by getting better-than-market returns. A woman doesn't care. She doesn't care if she's getting the top returns.

She cares if she can send her kids to college. She cares if she can keep the house if her husband dies. She cares if she can take her family on a vacation that they've always wanted to go on. She cares if she will not be a burden to her children as she ages.

The woman looks more at what is this money going to do for me, instead of I have to get the top return. I have to beat the market. I have to do this. I have to do that. She's talking about what the money can do.

So when you're talking about goals, when you're talking about what you want, you need to get underneath. You need to talk about her perspectives, her goals, what she wants this money to do, instead of talking about your investment philosophies, and whether you're active or passive, and whether you beat the market or not, or any of those kinds of statistical things. That isn't what impresses her.

BRUCE LOVE: So much of the industry is actually moving towards goals-based investing anyway. I mean, you're talking about something more, though, than just simply the change into a goals-based approach. You're talking about communication as well, and relationship management.

AMY FLORIAN: Absolutely. And communication is key, especially in times of life transition. When we think of life transitions, we too often just think of death or divorce. But there's many, many transitions that a woman goes through in her life.

And they all put money in motion, whether it's birth or death, whether it's marriage or divorce, whether it's empty nest, retirement. Any of those things put money in motion. And that's when a woman really decides who she wants to work with and what she expects of that person.

And what she's looking for is not somebody who just knows what to do with the money. She looks for somebody who understands her, who gets her, who can walk her through this in financial and non-financial ways. So that's where it goes beyond goals-based investing.

We are rightfully going to goals-based investing. It needs to be there. And we are rightfully going to doing the right thing for the client. But too often what advisors don't know is how to do the right thing for the client during those times of transition – when they're grieving, when they're going through a tough time.

The woman wants somebody who knows what to say, knows what to ask, who knows when her husband dies and she comes into the office, who isn't like everybody else just awkwardly stammering over their "I'm-so-sorrys," and "You-have-my-sympathies" – somebody who really gets her and understands her. And she'll switch till she finds it.

BRUCE LOVE: Amy, thanks so much for spending the time.

AMY FLORIAN: You are welcome.