Women Investors: A Historic Opportunity for Financial Advisors Amid Wealth Transition

Empowering Women Investors: Seizing the Moment Amid Wealth Transfer

Recent research conducted by Capital Group reveals a remarkable opportunity for financial advisors to engage with women investors. With a projected wealth shift exceeding $100 trillion from baby boomers to younger generations by 2048, financial advisors are encouraged to connect with women, who are often earlier in their investment journeys than men. Women make up about half of the U.S. population and control a staggering $10 trillion in financial assets. Yet, there exists a notable delay in their investment activities compared to their male counterparts, with many women beginning to invest only after the age of 35.

The survey, which engaged 814 women who hold investment accounts, uncovered several barriers that hinder women's participation in investing. Notably, 26% of the respondents expressed feeling that they lacked sufficient funds to work with an advisor. Moreover, one-third of women described their financial circumstances as complex and stressful, deterring them from seeking guidance. Compounding this issue, it was found that women are less inclined to request financial assistance following major life events, despite being more receptive to advice compared to men.

Wassan Kasey, Senior Vice President and Advisor Practice Management Consultant at Capital Group, highlights the transformative potential for financial advisors willing to adapt their marketing and communication strategies. By targeting online channels and social networks that resonate with women, financial advisors can effectively appeal to their aspirations—like financial independence—while breaking down the perceived barriers to seeking advice. Kasey emphasizes that this approach not only fosters confidence among women investors but also represents a powerful avenue for advisors to expand their practices during this pivotal wealth transfer era.

The research outlines four strategic steps that advisors can adopt to enhance engagement with women:
1. Optimize Online Marketing: Enhance online visibility and marketing efforts directed specifically at women, as they predominantly turn to search engines when seeking financial advisors.
2. Communicate Value Simply: Frame the value of financial services in comprehensible terms, ensuring that women can easily grasp the benefits after the costs are considered.
3. Focus on Aspirations: Shift the conversation towards women's financial goals rather than life events, fostering a more inclusive and empathetic dialogue.
4. Tailor Communication Preferences: Understand women's preferred communication channels—favoring phone calls for casual check-ins and in-person meetings for more significant discussions, while leading with inquiries rather than directives.

Ultimately, by emphasizing the importance of mental and financial wellness, simplifying the onboarding process, and personalizing interactions, advisors can bolster women's confidence and active participation in their financial futures. This presents a promising opportunity, especially for advisors seeking to tap into the female investor demographic, and increase their client acquisition alongside their business growth.

About Capital Group

Capital Group, which operates American Funds, has dedicated itself to providing superior investment results for long-term investors since 1931. As of March 31, 2025, the organization manages around $2.8 trillion across equity and fixed-income assets for diverse investors worldwide.

For more details, visit capitalgroup.com.

Survey Methodology

The survey was conducted by Capital Group in collaboration with Kantar, involving 1,504 U.S. consumers, including 814 women, from October 22 to November 5, 2024. Participants were aged between 22 and 78, held influence in financial decision-making, and possessed at least one investment account. The final data was weighted to represent diverse age, gender, household income, regional, and racial demographics.