The cost of the gender gap in financial planning

The financial planning industry should be paying more attention to female advisers - as well as female clients.

In business, we start with a dream and then move towards a business plan. So why are female financial advisers outnumbered by men?

Women have dreams too! My experience has always been that female business owners tend to gravitate towards female advisers for advice, because they feel more comfortable talking to another female.

The empathy and support a female adviser provides creates an atmosphere of trust and confidence. Indeed, many men prefer to deal with female advisers for the same reason.

If we all know that small business operators provide the backbone of employment throughout Australia, why is it not also known that there had been a rapid growth in the number of women who choose to be self-employed in Australia?

A 2008 Australian Bureau of Statistics report indicated that this growth was 33 per cent for the period between 1992 and 2007. Impressive numbers! Clearly, women are rightfully choosing to have flexibility, independence and control of their own destiny.

Their reasons are many, but by and large their thinking is no doubt much the same as mine.

They want work/life balance, with the ability to spend quality time with their children.

We are not doing enough as a profession to help encourage more women to become financial advisers.

While there is no doubt that work/life balance sounds attractive, the reality is that it can be an elusive goal.

Despite hopes to the contrary, self-employment can lead to long hours.

Further, self-employment can also mean very few associates — if any — to discuss strategies or business models with, and a sense of isolation when making day-to-day decisions.

Don’t get me wrong — I am all for self-employment, and recognise that it is unrealistic to be a specialist in every area.

The key is to surround yourself with professional advisers and mentors.

They can give you the benefit of their experience and help you focus on building your business and running it efficiently and effectively. They can be worth their weight in gold.

Why don’t more advisers seek out these people? Are they worried that people will think they don’t have all the answers?

Finding these advisers and mentors is easier than you’d think. It simply requires a willingness to share ideas and to have mutual support.

Practice development support offered by dealer groups can be extremely valuable too, but there are many women’s business networks and other regional networking clubs or business enterprise centres that can help link women with mentors.

I have found it best to initially meet these professional women and get to know them, to assure myself of their credentials and their ability to build rapport and trust, before seeking assistance.

It is true that behind every great man is a great woman. Given that women make most of the decisions that affect a household, it should be obvious that they should be given the same amount of respect as their male counterpart when discussing their family’s financial situation, strategies and future options.

The female client should be given equal respect and attention, whether she is self-employed, salaried, or a homemaker.

Moreover, it is often the woman in the relationship who is the one taking heed of the need to be prepared for their financial future. She probably booked the appointment!

The same applies to single females. I have noticed a significant number of independent, single women seeking advice.

I sometimes wonder why they tend to have higher risk profiles than married couples.

One answer is that they don’t have dependants to care for. I believe a more telling reason is that women are becoming more educated and taking a personal interest and responsibility for their own financial future.

Single women, especially, are not only preparing for their retirement — they are also taking responsibility for their own goals and wealth creation plans.

This in turn enables them to maintain independence and, in the case of those who choose to settle down and marry, it also gives them choice and a sense of contribution to the family unit.

They might choose to work part-time, full-time or ‘my-time’ by starting their own business and seeking work/life balance — all without giving up their independence.

So, if you want satisfied and loyal clients who will chat with friends and refer your services, you should empower your female clients and treat them with the respect that they deserve.

Encourage them in their business endeavours and be a sounding board for them. You may be one of just a few wider business advisers that they confide in.

Especially in this age of service for services you might just find that they are willing and able to pay for your advice.

They will also value you and return the respect that you are showing to them.

Michelle Halvorsen is an authorised representative of Fiducian Financial Services, based in Caboolture in Queensland.