Data & Research February 14, 2017

More Women Managing Their Family’s Finances

Women’s two top financial worries are running out of money in retirement and managing the rising costs of health insurance, and 30% of women have turned to a financial professional for guidance.
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Just more than half, 51%, of women say they act as their family’s “chief financial officer,” according to the latest Allianz Women, Money and Power survey. However, at work, only 44% have the confidence to ask for a raise they think they deserve.

Fifty percent of women said that their earning power had increased, down from 57% in Allianz’s 2013 survey.

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Thirty-seven of married women say they are their family’s primary breadwinner, up from 31% in 2013, and 53% of women are responsible for managing their household’s long-term savings and investments.

“Women are taking a larger role in managing household finances and are gaining more responsibility for the financial success of their family,” says Katie Libbe, vice president of consumer insights at Allianz Life. “The savviness that women exhibit with their household finances can translate to being more assertive and having confidence to take risks in their careers.”

Fifty-eight percent of women said they are more financially savvy than their spouse or partner, 67% report that becoming more knowledgeable and involved in managing finances made a difference in their quality of life, and 68% said they feel financially secure. 

NEXT: Turning to professionals for advice

On the other hand, the survey found 61% of women wish they were more confident about making financial decisions, and 63% wish they knew more about financial planning and investing.

Nearly two-thirds said that investment information can, at times, be overwhelming. Women’s two top financial worries are running out of money in retirement and managing the rising costs of health insurance.

This may be why 30% of women have turned to a financial professional for guidance. Among this group, 75% wish they had done so earlier. However, when meeting with their financial professional, 51% say they seem to defer to their spouse or partner as the principal decision-maker—and this phenomenon happens whether the financial professional is male or female.

Asked what financial advice they would give to their daughters or granddaughters, 81% said start planning early, rely on themselves rather than others for financial security (71%), create a good financial plan (72%), learn how to invest money (56%) and have the confidence to ask for the salary they deserve (56%).

The online survey was conducted among 1,416 women between the ages of 25 and 75 last October. To participate, their household income needed to be at least $30,000.

Products February 14, 2017

FinMason Solutions Offer Suitability Tracking

If a recommendation is given in a careful and controlled manner, but there is no record made, does that mean it is materially less prudent? 
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FinMason has launched two new risk tolerance and compliance products for financial advisory professionals aiming to increase practice transparency and control.

The first, FinScore Pro, “systematically develops a mutually understandable, bright-line agreement on risk from each client and prospect in a quick and uncomplicated way,” according to the firm. The second, FinScope, “provides compliance teams with the ability to screen each client portfolio every night with robust analytics to detect problems before they become problems.”

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FinMason CEO and Founder Kendrick Wakeman argues the new product set forms “a unique synergy that constantly assures all portfolios are in compliance with the client’s explicitly agreed upon risk limits.”

As the firm explains, FinScore Pro is designed as “a simple process that guides a client or prospect to identify their ideal level of risk versus reward, even if they have little or no financial background. Instead of just being assigned an obscure label or number, FinScore Pro allows the client to envision and comprehend the amount of risk they should be taking and why it is potentially beneficial that they take on a certain level of risk.”

Then, once a client’s “true risk appetite” has been established, advisers and compliance officers can turn to the new FinScope product to keep portfolios compliant.

“The enterprise-wide solution runs daily checks on each individual portfolio and flags the portfolios that need attention,” Wakeman explains. “If the portfolio is outside of the client’s risk tolerance, the adviser is prompted to have a conversation with the client and/or take corrective action, if necessary.”

Advisors and financial firms interested in a demo can visit www.finmason.com. 

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