growing your value to women investors · sources: center for american progress, 2017; department of...

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Growing your

value to women

investors

Strategies for expanding your practice

For investment professional use only. Not for public distribution.

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Agenda

Growing economic importance

Building successful communication

Segmenting strategies for practice growth

How Putnam can help

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Growing

economic

importance


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The biggest emerging market in the world

is not China; it’s women. We don’t pay

this market the respect it deserves.

SYLVIA ANN HEWLETT Chair and CEO of the Center for Talent Innovation

GROWING ECONOMIC IMPORTANCE


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Women are poised to lead in controlling assets

• 95% of families will have a woman as the primary

financial decision maker at some point in their lives

• Women are majority owners of 11.6 million

businesses, which generate $1.7 trillion in

revenues

• Will control 2/3 of the nation’s wealth by year 2030

Sources: Family Wealth Advisors Council, 2015; BMO Wealth Institute, 2015.

Women control 51%

of personal wealth

in the United States —

about $14 trillion

51%



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Women’s surging economic power

Sources: Center for American Progress, 2017; Department of Labor, 2017, Alliance Life 2016, Allianz.

Women currently earn

57% of bachelor’s degrees,

60% of master’s degrees,

51% of doctoral degrees

70% of women with children

under age 18 participate in the

labor force, with 40% being the

primary or only breadwinner

Women hold just over

50% of all management,

professional, and related

occupations


EDUCATION PARTICIPATION

ELEVATION

51% of women see themselves as

the CFO of the household

53% are responsible for the

household’s long-term savings and

investments

CONSUMPTION


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Women’s surging relevance to your practice

Sources: Empower Lifetime Income Score, 2016; Prudential, 2015; Ernst & Young, 2017; Spectrem Group, 2011, New York Life, 2018, Center of Talent Innovation.

feel misunderstood

62%

67%

70% change advisors within

one year of the death

of a spouse

would switch advisors

(vs. 44% of men)

of women work with a

financial advisor

(vs. 62% of men)

38%


of women on the hunt

for an advisor can’t find

one they connect with

90%

gain confidence from

advice53%

Building

successful

communication


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Women face different challenges

Sources: Joint Economic Committee, 2016; Rice University, 2015; HealthView Services, 2017; Social Security Administration

Earn only 79 cents for

every dollar a man earns

EARNINGS GAP

Lose out on $324,044

in wages and Social

Security to care for others

INCOME DISRUPTIONDUE TO CAREGIVING

Women now live, on

average, 86.6 years

versus males who live

84.3 years

LONGEVITY

BUILDING SUCCESSFUL COMMUNICATION


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Opportunities for advice

• * ssa.gov/pubs/EN-05-10127.pdf

• † ml.com/women-financial-wellness-age-wave.html

• ‡ mlaem.fs.ml.com/content/dam/ML/Registration/ml-womens-study.pdf

• §U.S. Trust Insights on Wealth and Worth, 2017

• **Morgan Stanley Institute for Sustainable Investing, Cerulli Associates.

• Impact investing and/or Environmental, Social and Governance (ESG) managers may take into consideration factors beyond traditional financial information to select securities, which could result in relative investment

performance deviating from other strategies or broad market benchmarks, depending on whether such sectors or investments are in or out of favor in the market. Further, ESG strategies may rely on certain values based criteria

to eliminate exposures found in similar strategies or broad market benchmarks, which could also result in relative investment performance deviating.

• Nearly 55% of

Social Security

recipients are women*

• On average,

Social Security only

replaces about 40%

of pre-retirement

earnings

SOCIAL SECURITY

• On average, women

may live longer in

retirement: A 65-

year-old women can

expect to live, on

average, until age 87,

while a 65-year-old

man can expect to

live to age 84

RETIREMENT SAVINGS

• 41% of women wish

they had invested

more of their money†

• Just over half (52%) of

women say they are

confident about

investing (compared

with 68% of men)‡

FINANCIAL PLANNING


• Over 60% of financial

advisors show little to

no interest in ESG

Investing**

• The number of HNW

women with assets in

impact or sustainable

investments grew to

18% in 2017 from 9%

in 2015 †

INVESTMENTS


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Women feel a disconnect

Source: Harnessing the Power of the Purse: Female Investors and Global Opportunities for Growth, Center for Talent Innovation.

of women do not feel

Wall Street pays equal attention

to men and women90%

of women say Wall Street is not

in touch with their needs71%


Stop using so much

jargon, look out for

customer’s interests,

and maintain a

strong code of ethics

Women have advice

for financial advisors


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Provide a roadmap for financial goals

Source: Willis Tower Watson, 2017 Global Benefits Attitude Survey, 2017.


64%57%

44%

Daily living costs Paying off debt Saving for retirement

WOMEN’S TOP FINANCIAL PRIORITIES

While our survey finds that women

place a lower priority on saving for

retirement than men do (60% vs.

44%), we believe it’s a question of,

‘Am I able to save for retirement?’

rather than, ‘Is saving for

retirement important?’

SHANE BARTLINGSenior Consultant, Willis Towers Watson


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Communicate your value to women investors

• Identify the types of

women you work with

• Define the goals

important to those

groups

SEGMENT

• Align your value

proposition with the

needs of your target

segments

• Incorporate these

ideas into your

online presence

POSITION

• Include supporting

decision makers in

conversations

• Use social media to

identify key prospects

and COIs

INTEGRATE


• Understand lifestyle

goals and savings

challenges

• Create a goals-based

plan and educate on

solutions

COMMUNICATE

Segmenting

strategies for

practice growth


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Segments and niches

SEGMENTING STRATEGIES FOR PRACTICE GROWTH

DISTRIBUTING WEALTH

• Retirees

• Supporting decision makers

GROWING LITERACY

• Millennial professionals

• Client beneficiaries/heirs


ACCUMULATING WEALTH

• Established professionals

• Business owners/Self-employed

• Working mothers


• Co-habitation and

partnerships

• Newly independent

and remarried

• Financial caregivers

TRANSITIONAL NICHESSEGMENTS


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Growing literacy

• Debt management

• Bucketed saving/Investing

• Managing workplace benefits

• 401(k) guidance

• Systematic investing

• Tax awareness

• Health savings accounts

• ESG incorporation

• Insurance

• Maintain active presence on

social media to build your brand

• Conduct financial check-ups for beneficiaries

• Leverage alumni networks

• Set up a booth at a bridal expo

• Conduct mock interviews

• Consulting contracts

• Target young professionals networking groups

• Build relationships with realtors

HOW TO CONNECT PLANNING IDEAS

• Millennial

professionals

• Client

beneficiaries/heirs

• Supporting

decision makers

SEGMENTING STRATEGIES FOR PRACTICE GROWTH GROWING LITERACY


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Accumulating wealth

SEGMENTING STRATEGIES FOR PRACTICE GROWTH ACCUMULATING WEALTH

• Saving for retirement

• Debt management

• Tax planning

• Asset protection

• College savings

• Building home equity

• Estate planning

• Insurance

• Claiming Social Security

• Build your brand on social media/Offer

“Virtual” Meetings

• Offer current client referrals

• Provide a free speaker from the Social Security

Administration

• Institute family wealth days

• Offer day care providers

• Host “lunch and learns” for small business

owners

• Build your own “bring a friend” networking event


• Established

professionals

• Business owners/

Self-employed

• Working mothers

• Supporting

decision makers


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Distributing wealth

• Income in retirement

• Drawdown strategy/RMDs

• Navigating Medicare

• Claiming Social Security

• Estate planning

• Tax planning

• Insurance coverage

• Charitable giving

• Donor-advised funds

• College savings

• Offer current client referrals

• Network with independent living organizations,

estate attorneys, and senior organization leaders

• Connect with charitable organizations

• Help clients establish a donor-advised fund

• Craft an “I love you” letter

• Host retirement seminars in:

− Over-age-55 residential communities

− Country clubs/tennis clubs


• Retirees

• Supporting

decision makers

SEGMENTING STRATEGIES FOR PRACTICE GROWTH DISTRIBUTING WEALTH


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Cohabitation and partner households

• Special considerations for

health insurance

• IRA account limitations

• Taxation options

• Revocable trusts

• Healthcare proxys/directives

• Durable power of attorney

• Irrevocable life insurance trust

• Create a “family chart” to determine who

financial stakeholders are in current client’s

families

• Partner with realtors to identify couples and

partners with a financial advice need

• Keep in touch with other household members

by recognizing birthdays or key life events

• Gift a financial plan to a newly engaged or

partnered beneficiary

HOW TO CONNECT PLANNING CONSIDERATIONS

GROWING LITERACY

ACCUMULATING WEALTH

DISTRIBUTING WEALTH

SEGMENTING STRATEGIES FOR PRACTICE GROWTH TRANSITIONAL NICHES


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Newly independent and remarriage

• Budgeting

• Insurance coverage

• Tax considerations

• Fixed annuity planning

• Investment education

• Beneficiary designation

• Long-term care

• Remarriage considerations

• Estate planning

• Use FindLaw.com to find divorce attorneys and

estate planners to partner with

• Create a financial life book to help guide decision

making

• Create a consulting tree to become a key

resource to divorcing clients

• Build an ongoing personal relationship with

supporting decision-makers well before wealth

transfer



GROWING LITERACY

ACCUMULATING WEALTH

DISTRIBUTING WEALTH


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Financial caregivers

• Durable power of attorney

• Healthcare proxy

• Budgeting

• Government benefit support

• Account inventory

• Estate planning

• Long-term care

• Asset protection

• Partner with local senior organizations to host

educational events on financial caregiving.

• Ask current clients if they need support with

financial coordination for a loved one

• Use 2-1-1 to connect and establish relationships

with key non-profits.

• Ask current clients about their plan for financial

care in later years



GROWING LITERACY

ACCUMULATING WEALTH

DISTRIBUTING WEALTH


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Next steps

HOW PUTNAM CAN HELP

1

2

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Individualized training for your practice

Request a follow-up with a Putnam Specialist

Call your Putnam Consultant (1-800-354-4000)

Visit putnam.com/advisor


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FOR INVESTMENT PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

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growing your value to women investors · sources: center for american progress, 2017; department of...

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