TD Wealth's Anna Dayan highlights the need for different approaches
Women are expected to inherit $1 trillion in the next decade, adding to the increasing wealth they have amassed already, including from entrepreneurship.
But International Women’s Day (March 8) provides the perfect time to reflect on how ultra-high-net worth women will reshape wealth management and financial planning, providing advisors with opportunity to be trusted partners with this significant client base.
Wealth Professional has been speaking with Anna Dayan, vice president, Private Wealth Management at TD Wealth, about the growing financial influence of Canadian women, including what this wealth transfer represents as a historic opportunity for empowerment.
TD’s research identified that women are expected to control 47% of wealth by 2030 and Dayan says that she has experienced more women as active participants in wealth management conversations.
“Women are increasingly taking charge of preserving and growing their family’s financial legacy and tend to be more interested in holistic wealth management, estate planning, legacy planning, and philanthropy with a focus on managing risks and ensuring the long-term sustainability of their wealth for future generations,” she said.
Women have certain requirements that are less common for men, and this requires an appropriate approach to financial planning.
“In the earlier stage, we look at helping women think through how they will take the career breaks they want to and balance that against their personal objectives,” added Dayan. “Later on, planning will also consider the difference in age span between women and men, and the idea that women are likely not only to outlive their parents, but also a spouse/partner.”
The shift to a more holistic approach to wealth management is not gender specific, but it is one that women tend to favour, as well as planning that is tailored to their unique lives.
“It's not just about what portfolio they’ll work with or what stock they’ll trade, it’s also about understanding and offering help around the full scope of a client’s household, financial goals, personal challenges, and personal values and updating financial plans as their lives change and evolve,” Dayan explained. “Women often carry more of the burden when it comes to taking care of their households, and often look to their advisor to listen to them and help prepare them for their future and what they’ll leave behind.”
Biggest hope
“My biggest hope for Canadian women is a shift in the conversation and perspective around wealth towards a more inclusive view on managing money, career, and family, and ultimately having more financially empowered women across the board,” Dayan said. “With the increasing number of women assuming primary financial roles within their families and expanding their investable assets, I anticipate even more future opportunities to support women, whether they’re colleagues or clients navigating major financial decisions.”
