Within the United States, the promotion of females into executive corporate roles has been steadily increasing. According to Statista, women currently account for approximately 7% of Fortune 500 CEOs, with this number expected to grow as the rate of women in the workforce has increased. This rise of female executives, paired with an increase in the transfer of wealth to women (read more here), lends itself to an even more apparent and distinct set of financial challenges presented to the women that find themselves in these roles.
Among the array of workplace challenges female executives face, income inequality and the gender pay gap are arguably some of the most pressing. According to PayScale, females make 81 cents to every dollar earned by men. This discrepancy not only directly impacts the scale at which women can earn, but also the rate at which they must manage and invest funds to see returns equal to men as they build a financial strategy.
Whether a byproduct of income inequality or dated social norms, another notable financial roadblock females face is the relative lack of open financial dialogue among women when compared to men. The absence of conversation often leads to an absence of understanding of financial terms and methodologies, creating an even greater disparity of financial literacy amongst women. Moreso, it creates an incorrect perception that females often lack confidence in making the right money choices.
As female executives are undoubtedly familiar, the time constraints faced by women looking to climb the corporate ladder while balancing their personal lives are already difficult to manage. More often than men, females face uncertain and unpredictable career timelines. Women are generally expected to take an extended amount of time off for family management, meaning they have more ambiguity as to what the exact trajectory of their income may be. This paired with an awareness of the possibility of employment changes, illness, or a disruption in family dynamics could cause swift unrest in financial security. Even the fact that women statistically live longer than men means they need to plan for an even more longterm financial strategy.
The search for a financial advisor that is the right fit for a female executive looking to build a financial strategy is a difficult one. Female executives want a financial advisor who understands them while assisting in overcoming the aforementioned roadblocks is key to a relationship that will drive desired results.
If you’re interested in discussing these topics further with an advisor experienced in supporting female executives in their financial planning strategies, contact Michelle Taylor at Gambin Financial Group.
Securities and investment advisory services offered through qualified registered representatives of MML Investors Services, LLC. Member SIPC (www.SIPC.org). Gambin Financial Group is not a subsidiary or affiliate of MML Investors Services, LLC or its affiliated companies. Supervisory Office 5001 Louise Drive, Suite 300 Mechanicsburg, PA 17055, 717-791-3300.