ROCHESTER, N.Y. — June 21, 2016 — Women often end up with fewer financial assets at the end of their career than their male counterparts — and that means they can afford fewer financial mistakes.
That’s the crux of a presentation that two executives from Alesco Advisors will give when they speak at CNBC’s “ETF Live” conference on Tuesday, June 21. The free and entirely online event will include Alesco President Jim Gould and Alesco Principal Katharine Earhart, who will appear at 4:30 p.m. and address the many issues which women face when it comes to investing.
Females face a number of unique challenges, according to Earhart and Gould, ranging from a lack of trust and feeling misunderstood to being underrepresented on both sides of the financial management industry.
For example, according to the Center for Talent Innovation, 53 percent of women don’t have a financial advisor1, compared to the national average of 47 percent, which means they are less likely to grow and diversify their assets during their working and retirement years.
“The number is even worse for younger women,” says Gould. “An astonishing 75 percent of adult women under the age of 40 don’t have a financial advisor, so they’re getting a later start at investing, planning for retirement and leveraging their assets.”
This puts women at a big disadvantage in building a portfolio that is large enough to support them in retirement.
“The fewer assets you have, the more important it is to manage your money efficiently,” adds Earhart.
Not having a financial advisor can cause other issues as well. For example, the Center for Talent Innovation also reports that women without an advisor hold 20 percent of their assets in cash, on average, while the number for those who use an advisor is less than half this amount.
“In other words, women are significantly underinvested, which allows the financial inequity gap to persist across genders,” Gould explains. “They are leaving money on the table.”
Gender issues exist on the other side of the advisement desk as well. According to a recent Wall Street Journal blog2, only 23 percent of certified financial planner professionals are women — a percentage which hasn’t changed in a decade. However, Alesco Advisors now has three females in top positions within the firm, including Earhart, and is committed to continued growth in this area.
Ms. Earhart joined Alesco earlier this year from BlackRock, Inc., one of the largest global investment management companies. Most recently at BlackRock, she led the company’s iShares Connect Program within its iShares Institutional Sales Group. She has more than 20 years of financial services experience, including expertise in ETF (Exchange Traded Funds) managed solutions, an industry category which some value at over $350 billion. ETFs are often an effective choice for investors due to the portfolio diversity, low cost, managed risk and tax efficient characteristics which they offer.
Recently Earhart and Alesco colleague Maya Lis Tussing have expanded upon their expertise in serving female corporate leaders, entrepreneurs and innovators by developing an exclusive program: Directional Ambition©. The program provides women, in particular, with a unique combination of financial, commercial and community leadership skills to help them achieve their goals.
To join Alesco’s presentation, visit https://engage.vevent.com/index.jsp?eid=6550&seid=14&no-login=true&visitorView=true on Tuesday, June 21 at 4:30 p.m. The free session will also remain available for 90 days at this same CBNC link.