Women + Inheritance = More Choices and Louder Voices
April 9, 2024You may have heard that women will receive the lion’s share of “the great wealth transfer” – the more than $80 trillion in wealth set to change hands from baby boomers to their heirs. As you anticipate changes to your family’s wealth, you may wonder: Why are women receiving such a major windfall, and how might these changes affect me and my family?
Whether you’re curious about the big picture questions or eager to get down to brass tacks, we’re here to tell you what you need to know. In this blog, we’ll cover:
1. Why and How Women Are Inheriting
2. How Women Are Investing Their Inheritances
3. How Women Are Passing On Their Wealth to the Next Generation
Why and How Women Are Inheriting
Women are poised to inherit a major portion of the massive wealth transfer already underway. Here’s why:
First, women often outlive their spouses or partners. With longer average life expectancies, many women find themselves inheriting assets from their deceased spouses.
Likewise, major cultural shifts have led to a more equitable distribution of wealth among family members, meaning women are more likely to inherit directly from parents or other relatives. With more women overseeing family finances and investments, women are more likely to be included as beneficiaries than in previous generations.
The assets passed down to inheritors can vary widely. From real estate properties to investment portfolios, retirement accounts to family businesses, women are inheriting diverse forms of wealth. Given that assets often come in varied forms, inheritances can present great challenges and immense opportunities.
How Women Are Investing Their Inheritances
Amidst a tidal wave of female financial empowerment, more women are approaching their inheritances with strategic, proactive mindsets. Rather than passively receiving their inherited portfolios, many women are actively reshaping their investments.
Compared to their male peers, women are more likely to prioritize long-term financial goals and possess greater risk awareness. As a result, women often exhibit different investment preferences compared to men. They’re also more likely to consider the environmental and social impact of their investments, inclining toward sustainable and socially responsible investing.
Unsurprisingly, women investors are not only concerned with the investments themselves but also with who manages them. Many affluent female financial decision-makers are more likely to work with wealth management teams that include female advisors. Women investors seek teams who can empathize with their values and experiences, offering more than just portfolio allocation advice.
How Women Are Passing On Their Wealth to the Next Generation
As women accumulate wealth, these proactive inheritors are already considering how best to transfer these resources to future generations.
A study highlighted by CNBC reveals that women are more likely to prioritize education and financial literacy when passing on wealth to their children. They recognize the importance of equipping the next generation with the knowledge and skills needed to navigate the complexities of responsibly managing inherited wealth.
Women are also increasingly incorporating philanthropy and charitable giving into their estate planning strategies. By establishing charitable foundations or trusts, women can leave a lasting legacy that extends beyond their immediate family, contributing to positive social change and community development.
Let’s Prepare You for a Vibrant Financial Future
Look around you – women are embracing their roles as inheritors, investors, and stewards of wealth, exerting greater influence over financial decision-making and shaping a dynamic future for coming generations.
How do you imagine your legacy? Contact our team for a complimentary meeting to discuss how we can collaborate with you to build and preserve your family heritage.