The Advisor Delta™

Narrator: Welcome to The Advisor Delta™, the practice management podcast dedicated to helping investment advisors grow their business and reach their goals. Whether you're looking to scale your practice, streamline operations, adapt to emerging technology, or deliver more value to clients, this is the place for actionable insights, thoughtful leadership, and innovative strategies. Brought to you by Worldsource Wealth Management. Let's dive in.

Wai-Ke:
Hello! For those tuning in for the first time, I'm your host, Wai-Ke Kim, VP of Practice Management at Worldsource Wealth Management. In today’s episode, we're exploring the future of women’s wealth. As we continue to celebrate International Women’s Day, this is a great time to discuss how the financial landscape is changing for women.

Many of you may not know that my father passed away one week after I turned 8 years old. My mom was left to raise me, the eldest child, my sister and my identical twin brothers. When it came to the family’s financial situation, let’s just say that talking about money, is a big NO NO in a traditional Chinese family. But children can always pick up on things, can’t they? I was little, for sure, but I could tell that mom was grieving, and that EVERYTHING was NOT alright. Years later, I learned that mom never developed trusting relationships with financial advisors…ever. She never felt like they had her best interests at heart, and more often than not, she found them condescending.
Fast forward to when I was in my early early 20’s, and, I had just graduated from Queen’s University, and you know, trying to figure out my life. I was working in retail, and quite irresponsible with money. Luckily for me, I met a guy that was a good saver. He took me to meet his financial advisor because he said it was important to invest for the future. Sounds like a keeper, right?
So, we met this financial advisor, and as we sat across him at his varnished cherry wood desk, he proceeded to have an hour-long conversation… with my boyfriend. It was as if I wasn’t even there. Can you imagine? I mean to think of it now, is pretty triggering for me. I remember thinking to myself, this kind of thing really can’t STILL be happening…It happened to my mom too way back when.
A few years later, I decided to become a financial advisor myself, and as we were transferring all our combined assets away from THAT guy, would you believe that he warned my boyfriend that I would have really hard time in this industry because of the way I looked? As a young woman.
Oh, I know what you’re probably thinking, but it was fuel to my fire. And thankfully, over my 20 years in the business, it’s so good to see so many women in this industry proving THAT guy WRONG!

And I’m not the only one noticing these industry shifts. The evolution of women in the financial industry – both investors and advisors – has been a topic of focus in the media for several years now, and yet the industry has still been slow to make impactful changes.
At the individual practice level, advisors play a critical role in guiding women along their journey to financial independence. But to successfully empower women, advisors need to understand their specific needs and provide tailored advice. It all starts with leveraging insights from behavioural economics, trends and statistics.

First off, let’s talk about behavioural economics. Exploring the role psychology plays in economic decision making goes back decades but until recently, most studies have focused on men. Today, more studies are exploring the perspectives of women and how their inherent behaviours result in vastly different approaches to investing. For example, according to a 2023 study from the University of Bath:
Women are significantly less optimistic than men. They are also more aware and more focused on possible loss – which they associate with pain
The result? Women are more likely to be cautious investors and lean towards conservative portfolios. While this approach may be appropriate in some situations, it’s not always going to align with their goals or time horizon. This is where advisors have an opportunity have a real impact. By educating female investors about the benefits and risks of different investing styles, advisors can empower them to choose the right investing strategy for their personal situation.

Another key behavioural insight revolves around the financial industry language. Traditionally, industry language is technical and filled with jargon. However, according to a 2024 article from Morningstar, women find conversation that is overly filled with jargon as both demeaning and unwelcoming.
I mean, really. RRSPs, FHSA, LIRA, RRIFs, allocation, bear, bull, alpha, beta, benchmark, DSCs, ESG…you know what I’m saying? By making simple adjustments to language and delivery, advisors can build trust and strengthen relationships with female clients.

Now let’s look at how you can also leverage trends and statistics to help you address the needs of female clients.
The number of studies and amount of data related to women investors is growing, and it’s painting a pretty interesting picture. If we narrow our focus to the topic of retirement for example, Statistics Canada shows us that:
1. The average retirement age for women is 63.6 – almost two full years younger than men, and –
2. Women’s life expectancy continues to outpace men’s; with women living to an average of 83.9 years relative to men at an average of 79.8.

Together, these statistics suggest that female investors need to prepare for longer decumulation periods than men. Yet wage gaps and career breaks often leave women with lower lifetime earnings. The combination of less earnings and longer life spans can lead to women feeling anxious about retirement. In fact, a 2024 study by the Healthcare of Ontario Pension Plan found that 62 per cent of women aged 55-64 felt unprepared for retirement, compared to just 48 per cent of men in the same age range.By using these statistical insights and offering tailored strategies, advisors can play a pivotal role in guiding women through retirement planning and helping them to build a more secure financial future.

It’s no secret that female investors represent a significant opportunity for advisors. According to a 2024 joint study between Women of Influence and CIBC, women are expected to control nearly $4 trillion in assets by 2028 – nearly double what they do today. And it’s not just female investors that are growing, the number of female advisors are too. Wealth Professional estimates that women now make up between 15-20 per cent of advisors overall, a trend that is crucial to help bridge the gender gap in financial planning. Female advisors often excel at building client relationships, and they bring valuable perspectives that ensure women’s financial needs are adequately addressed.

While it’s clear that women are becoming a strong force in the investment landscape, there is still much improvement to be made. Advisors have a unique opportunity to support women by understanding their specific needs and providing tailored advice.
Listen ladies, we are worth it! We deserve to have advisors that will guide us to positive outcomes! Oh, and you want to know what happened to my boyfriend from 20 years ago? Well, he changed my life! And he really was a keeper. I married him. Pretty smart, right?
And that brings us to the end of this episode! We all have a role to play in shaping the future of women’s wealth, and I encourage you to keep the conversation going.

Narrator: Thanks for tuning in to The Advisor Delta™. We hope you found today's episode valuable in supporting your practice. For more episodes and insights, don't forget to subscribe and visit us at www.worldsourcewealth.com. And remember, together, we can take your practice to the NextLevel™.
Worldsource Financial Management Inc., a mutual fund dealer, and Worldsource Securities Inc., an investment dealer, are divisions of Worldsource Group of Companies Inc., operating as Worldsource Wealth Management. The views and opinions expressed in this podcast are those of the participants only.
This podcast is for informational purposes only and does not constitute financial, legal, or professional advice. Listeners are encouraged to seek professional guidance for their specific needs. Worldsource Wealth Management does not endorse any products, services, or companies mentioned in this episode.