Women: the new faces of wealth

According to Forbes, the total amount of financial wealth in the world is set to grow by $65 trillion. Including real assets, the world’s total net wealth will surpass $500 trillion sometime before 2025.

Financial wealth reached $250 trillion in 2020, having grown 8.3% despite economic and pandemic-induced headwinds.

According to analysis by Boston Consulting Group, women’s global wealth will rise to at least $81 trillion by 2023, almost three times what it was in 2010.

How women are redefining wealth, giving and legacy planning

As a woman, you will be all too aware of how much busier women are now – running companies, building your career, caring for loved ones, ensuring children are supported, managing households, and spearheading causes close to your heart.

Outdated assumptions and stereotypes still pop up, but the truth is that all women are very different, with a diverse range of needs.

Clients often come to me with more than one issue to address and need me to cater to their busy schedules and multi-dimensional lives. That’s exactly why I listen carefully to each and every client’s individual circumstances before making any recommendations.

That said, there are some growing trends in terms of wealth, giving and legacy planning which I am seeing more frequently among my female clients.

Philanthropy

Many of my female clients come to me considering philanthropic endeavours.

High profile women are increasingly in the spotlight for all the right reasons when it comes to charitable giving and creating foundations. Doing so in the right way requires careful consideration, planning and ongoing management. Often, decisions around which causes to support are led by the heart, but women are often more collaborative in their approach and will take the time to explore their options and discuss such matters with their families, and me as their adviser. The outcome is typically one where everyone feels like the right decisions have been reached and affairs are structured in the best way.

Approach to risk

For female entrepreneurs with business interests, creating a legacy is often their top priority. This can mean that they start planning structures for succession earlier and we can discuss how best to plan for the future both in terms of the business and in terms of their family and later life.

Women can be more risk-averse, but it is often an advantage. According to some studies, female investors earn up to 1% better returns than men and lose 1.3% less of their stock portfolio as they are not as impulsive.

Family harmony and protecting beneficiaries is key to most of my clients regardless of whether they are men or women, but women approach the topic differently.

Women might choose to place specific limits for beneficiaries, which might be asset protection provisions, considerations of beneficiary maturity or other factors. Men may approach this differently by organising for mentorships or more education around financial planning for example.

Both approaches can be very successful and are likely to have a similar outcome, but clients often comment that having a Trustee in place who understands and notices subtleties such as these is always beneficial.

Choosing your Trustee

If you would like to create a successful lasting legacy and ensure your affairs are well-managed, a positive relationship with your appointed Trustee is essential.

I find my clients often say they chose me based on things like shared values and good feeling as much as professionalism and experience. That said, a keenness for attention to detail, professional approach and commitment to building a long-term relationship is how I enter every client relationship.

I try to create a space in which my clients can disclose as little or as much of their motivations as they want. However, the more knowledge I have of what is driving your experiences and wishes, the better positioned I am to be able to provide the best solutions.

It has never been a more exciting time for women, and I am privileged so many choose me as their adviser.

How ZEDRA can help

Abigail Tipton manages assets in a variety of structures for women and private families, particularly those with a Middle Eastern background.

Clients often come to her for trust and company management, estate planning solutions and fiduciary relationship management.

Abigail has also assisted many clients with philanthropic foundations and purchasing and managing a wide variety of assets including real estate, cars, aircraft, private equity and antiquities. For more information or to find out how Abigail can help, please contact her.