Jewish Communal Fund Advisor Network Breakfast

Wealth managers, take note of these statistics:

  • Women in the U.S. control $5 trillion of wealth.
  • More than half of women with investible assets of $1 million think that their financial advisor doesn’t understand them.
  • Less than 25% of financial advisors are women, the same percentage as a decade ago.
  • 70% of women leave the family’s financial advisor after their husband dies.

To help educate advisors on how best to serve and empower female clients, the Jewish Communal Fund Advisor Network hosted a panel discussion featuring Kay Koplovitz, the founder of USA Networks and chairman of Springboard Enterprises, and Alexandra Lebenthal, the Co-Chief Executive Officer of Lebenthal Holdings. Lauren Young, the Money Editor at Reuters, moderated the discussion, in which these two very successful women shared their professional journeys, what they look for in their own advisors, and what needs to happen to encourage more women to take charge of their money with confidence.

Alexandra Lebenthal spoke about how her grandmother co-founded the firm in 1925, where she worked until she was 93 years old. “She was a role model for me,” Lebenthal said, adding that she launched SAYRA, a magazine for female financial advisors, which is named for her grandmother. “I am passionate about the need for women to be educated and empowered about their finances,” she said.

Kay Koplovitz’s career started with a poster she happened to see advertising a lecture on satellites while on a trip to London as a college student. “I’m a big believer in serendipitous moments that change your life,” she said. The lecture by Arthur C. Clarke, a noted science fiction writer, encouraged her to give up her plan of pursuing medical school and instead write a master’s thesis on satellites. She went on to establish a business model for cable TV networks and, among many other accomplishments, launch the SciFi channel to pay homage to Ray Bradbury and Arthur Clarke, two of her favorite science fiction writers.

Lebenthal and Koplovitz offered several tips for advisors looking to attract and retain female clients:

  • Develop a relationship with your female clients, even if you typically work with the husbands. If you have that relationship established before a life –changing event happens, there is a greater likelihood you’ll retain that client.
  • Women want to be educated about financial management, and enjoy learning in small groups where they can benefit from other women’s questions and the answers offered.
  • Learn about your female clients’ passions and connect with your clients around shared interests. Explain ways in which clients can practice socially-responsible investing and invest in companies that support their philanthropic goals.
  • While men tend to be more focused on investment returns, women like to focus on their long-term goals and needs. Communicate with female clients about her family’s long-term goals.
  • Limit the financial jargon – it can sometimes overwhelm or confuse.
  • Use stories to illustrate financial concepts. (Lebenthal’s novel, The Recessionistas, may well be the only chick lit book that explains what a CDO is!)

By 2054, $40 trillion in wealth will be passed on, and much of it will be in the hands of women. This represents an opportunity for advisors who are adept at working with female clients and providing for their financial needs.

The JCF Advisor Network provides educational resources and networking opportunities to professionals in law, accounting, wealth management, family office and finance. Members share an interest in philanthropy and a desire to meet like-minded professionals in a variety of fields. Learn more by visiting jcfny.org/privateclient.