Women, Wealth and Tax Knowledge

Geoff Currier and Evelyn Jacks

Women control an increasing share of global wealth. From 2018 to 2023, global wealth increased by an amazing 43% but women’s share increased by an even more impressive 50%. For financial advisors it means your female clients are going to be more important to your business than ever; for tax advisors, there is an opportunity to engage during important life events.  

Life Event Planning with Women: If your female client is in a relationship, you need to pay special attention to her tax planning. Statistics show that when a woman becomes single, either through a relationship breakup or by becoming widowed, 70% of them change financial advisors within the first year. One reason is women need more tax advice in these cases. You can avoid losing her as a tax client by spending time and creating a relationship with her. 

More people are living solo than ever before, but not just because of separation or divorce. Widowhood is increasingly common as the Baby Boomers and their parents reach the end of their lifecycle.

Proactivity Matters. Proactivity is key, especially during difficult times. It’s better before an emotional life event happens.

Make certain that you take an inter-generational approach. The adult kids need to know how to best support their parents during life transitions. . .you can encourage family conversation by making sure all their questions about their taxes are answered. Assure everyone in the family that there are no stupid questions. Effective communication will ensure that you keep these women – and the family as a whole - as long term clients. 

Starting Early Matters. Women are fine wealth builders, but because they still earn less then men in many cases, more coaching is required as they become wealthier. . .especially when it comes to reducing their taxes (lower earners quickly enter very high clawback zones as incomes rise and social benefits therefore diminish). Engaging in tax-efficient investments for their future and the future of their families is critically important – and a great way to catch up to the men. 

It’s About Relationships Reaching these individuals for tax planning however, may be more difficult. But if you can get them into your office for tax preparation services, you have a better chance of serving them with more complex planning services, once they begin to accumulate some wealth. In the meantime, they need to know that filing their tax returns can help them access such benefits as Pharmacare, the Groceries and Essentials, Benefit, the Child Tax Credit and more. 

Women tend to patronize businesses that they have been referred to by someone they know. If you look after your female clients well, by listening and learning about their concerns and needs, they will almost certainly refer their friends to you as well, providing an opportunity for a real win-win.

The Bottom Line: Seeing growth in investing takes time if one is patient. It’s true in your business as well. Take the time up front to let your female clients know that you genuinely care about their overall well-being. Asking about their health, family life and long-term goals will help create a relationship of trust and confidence that will pay off in the long term. Helping them achieve financial wellness and long-term wealth accumulation is the logical – and happy – next step.

FOR A DEEPER DIVE: check out Real Tax News with Evelyn Jacks and Friends and our episode which features I.G. Wealth management Senior Vice President Esther Findlay wherever you enjoy your favourite podcasts or listen here.

FOR CERTIFIED FINANCIAL EDUCATIONAL OPPORTUNITIES: Register now for the DMA-Tax Services Specialist Program. It’s completely online – you can start anytime, anywhere.  Check out the orientation video here!

Listen to the Real Tax News Podcast on this Topic