Abstract
This report identifies trends and opportunities for firms and financial advisors serving high net-worth women. The high net worth women segment is defined as those having more than $500,000 in investable assets (excluding the primary residence). They are concentrated mainly-though not solely-in the age 45 and higher age segments. A sizeable percentage of these women are Baby Boomers and will soon retire in unprecedented numbers.
The major themes in this report:
- The wealth market has grown considerably, and will continue to grow rapidly over the next five years.
- High net-worth women tend to be married, and share decision-making with their spouses.
- Fewer than 20% of high net-worth women use a financial advisor.
- Most high net-worth women, including younger women, have some sort of financial plan which includes retirement planning.
- High net-women appear to be underserved by private equity and hedge fund firms.
Table of Contents
- Scope and Themes
- What you need to know
- Scope of this report
- Data sources and methodology
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- Who are high net worth women?
- How do they spend their time?
- How confident are they about making financial decisions?
- Who makes the decisions?
- What are their greatest concerns?
- To what do they attribute their wealth?
- What are their favored investment vehicles?
- What was their most painful investment mistake?
- Market Size and Forecast
- Key points
- Figure 2: Distribution of female top wealth holdings, aggregated net worth, by age group, 2001
- Market Drivers
- Age and generations
- Figure 3: Population, by generation, 2008
- Figure 4: Generations, 2003-13
- Confidence and independence in making financial decisions
- Expansion of Hispanic influence
- Continue growth in top net worth and millionaires
- Companies and Brands
- Figure 5: Top ten global wealth managers, 2007
- Innovation and Innovators
- Merrill Lynch
- Branding
- Citigroup Global Wealth Management
- Midwest Bank Centre
- PNC
- OppenheimerFunds
- Singer Xenos
- Who are High Net Worth Women?
- Key points
- High net worth women tend to be married
- Figure 6: Marital status, by age, March 2008
- Figure 7: Marital status, by household income, March 2008
- High net worth women tend to be white and have college degrees
- Figure 8: High net worth women, by race and age, March 2008
- HNW Hispanic women
- Figure 9: High net worth women, Hispanic origin, by age, March 2008
- What is the household income of HNW women?
- Figure 10: High net worth women, by pre-tax household income and age, March 2008
- Figure 11: High net worth women, by pre-tax household income and region, March 2008
- HNW women and education
- Figure 12: Level of educational attainment, by age, March 2008
- Figure 13: Level of educational attainment, by household income, March 2008
- They are likely to be employed
- Figure 14: Employment status, by age, March 2008
- Figure 15: Employment status, by household income, March 2008
- Figure 16: Employment status, by region, March 2008
- Figure 17: Employment status, by children in household, March 2008
- Figure 18: Employment status, by level of educational attainment, March 2008
- High net worth women and children
- Figure 19: Children in household, by age segment, March 2008
- Figure 20: Children in household, by region, March 2008
- Figure 21: Number of children under age 18 living at home, by age, March 2008
- Figure 22: Number of children under age 18 living at home, by level of educational attainment, March 2008
- Figure 23: Number of people in household, by age, March 2008
- Figure 24: Number of people in household, by children in household, March 2008
- Confidence and Decision-Making of High Net worth Women
- Key points
- Figure 25: Decision-making of high net worth women, by household income, March 2008
- Figure 26: Decision-making of high net worth women, by region, March 2008
- Figure 27: Decision-making of high net worth women, by children in household, March 2008
- Decision-making by education
- Figure 28: Decision-making of high net worth women, by level of educational attainment, March 2008
- Financial decision-making confidence of high net worth women
- Figure 29: Confidence in making financial decisions, by age, March 2008
- Figure 30: Confidence in making financial decisions, by household income, March 2008
- Figure 31: Confidence in making financial decisions, by region, March 2008
- Figure 32: Confidence in making financial decisions, by children in household, March 2008
- Figure 33: Confidence in making financial decisions, by level of educational attainment, March 2008
- Greatest Concerns of High Net Worth Women
- Key points
- Figure 34: Greatest concerns of high net worth women, by age, March 2008
- Work is a bigger concern than retirement
- Figure 35: Greatest concerns of high net worth women, by household income, March 2008
- The Northeast and Midwest are more concerned about financial security
- Figure 36: Greatest concerns of high net worth women, by region, March 2008
- Presence of children in the home indicates greater concern
- Figure 37: Greatest concerns of high net worth women, by children in household, March 2008
- More education equates to less concern about financial security
- Figure 38: Greatest concerns of high net worth women, by children in household, March 2008
- Belief Systems of High Net Worth Women
- Key points
- Figure 39: Belief systems of high net worth women, by age, March 2008
- Higher income groups attribute their wealth to hard work, as well as their
profession
- Figure 40: Belief systems of high net worth women, by household income, March 2008
- Figure 41: Belief systems of high net worth women, by region, March 2008
- Figure 42: Belief systems of high net worth women, by level of educational attainment, March 2008
- High Net Worth Women and Insurance
- Key points
- Figure 43: Types of insurance held, by age, March 2008
- Figure 44: Types of insurance held, by household income, March 2008
- Insurance by region and household structure
- Figure 45: Types of insurance held, by region, March 2008
- Figure 46: Types of insurance held, by children in household, March 2008
- High Net Worth Women: Most Painful Investment Mistake
- Key points
- Figure 47: Most painful investment mistake, by age, March 2008
- Midwest more likely to have trusted the wrong adviser
- Figure 48: Most painful investment mistake, by region, March 2008
- Higher-income women more likely to have made investment mistakes
- Figure 49: Most painful investment mistake, by household income, March 2008
- Figure 50: Most painful investment mistake, by level of educational attainment, March 2008
- Familiarity with and use of Investment Vehicles
- Key points
- Familiarity with mutual funds
- Figure 51: Familiar with or invest in mutual funds, by age, March 2008
- Figure 52: Familiar with or invest in mutual funds, by region, March 2008
- Familiar with or invest in municipal bonds
- Figure 53: Familiar with or invest in municipal bonds, by age, March 2008
- Figure 54: Familiar with or invest in municipal bonds, by region, March 2008
- Figure 55: Familiar with or invest in municipal bonds, by level of educational attainment, March 2008
- Familiar with or invest in separately managed accounts
- Figure 56: Familiar with or invest in separately managed accounts, by age, March 2008
- Figure 57: Familiar with or invest in separately managed accounts, by household income, March 2008
- Figure 58: Familiar with or invest in separately managed accounts, by region, March 2008
- Figure 59: Familiar with or invest in separately managed accounts, by level of children in household, March 2008
- Familiar with or invest in investment real estate
- Figure 60: Familiar with or invest in investment real estate, by household income, March 2008
- Figure 61: Familiar with or invest in investment real estate, by region, March 2008
- Figure 62: Familiar with or invest in household income, by level of educational attainment, March 2008
- Familiar with or invest in exchange-traded funds
- Figure 63: Familiar with or invest in exchange-traded funds, by age, March 2008
- Figure 64: Familiar with or invest in exchange-traded funds, by household income, March 2008
- ETFs most prevalent for families and those in the Midwest and Northeast
- Figure 65: Familiar with or invest in exchange-traded funds, by region, March 2008
- Figure 66: Familiar with or invest in exchange-traded funds, by children in household, March 2008
- Familiar with or invest in private equity
- Figure 67: Familiar with or invest in private equity, by age, March 2008
- Familiarity with private equity increases with income
- Figure 68: Familiar with or invest in private equity, by household income, March 2008
- Figure 69: Familiar with or invest in private equity, by region, March 2008
- Figure 70: Familiar with or invest in private equity, by children in household, March 2008
- Figure 71: Familiar with or invest in private equity, by level of educational attainment, March 2008
- Familiar with or invest in hedge funds
- Figure 72: Familiar with or invest in hedge funds, by age, March 2008
- Figure 73: Familiar with or invest in hedge funds, by household income, March 2008
- Figure 74: Familiar with or invest in hedge funds, by region, March 2008
- Figure 75: Familiar with or invest in hedge funds, by children in household, March 2008
- Figure 76: Familiar with or invest in hedge funds, by level of educational attainment, March 2008
- High Net Worth Women and Retirement Planning
- Key points
- Figure 77: High net worth women with formal financial plan, including retirement plan, by age, March 2008
- Figure 78: High net worth women with formal financial plan, including retirement plan, by level of educational attainment, March 2008
- Advertising and Promotion
- Print
- Figure 91: HSBC Premier print ad, January 2008
- Figure 92: Bank of America print ad, March 2008
- Direct mail
- Figure 93: HSBC Premier direct mail ad, March 2008
- Figure 94: Carolina Postal Credit Union direct mail ad, January 2008
- Figure 95: MetLife direct mail advertisement, December 2007
- TV commercials
- Figure 96: Fidelity Mutual Funds television advertisement, 2007
- Figure 97: HSBC Premier television advertisement, 2007
- Figure 98: Investools television advertisement, 2007
- Figure 99: John Hancock television advertisement, 2008
- Figure 100: Lincoln Financial Group television advertisement, 2007
- Figure 101: Regions Bank television advertisement, 2008
- Figure 102: Scottrade television advertisement, 2007
- Figure 103: TD Ameritrade television advertisement, 2008
- Appendix: Trade Associations
