Women of Wealth

By Russ Alan Prince

Harness a widely untapped market with the keys to attracting and retaining this successful client-base, written by a leading authority focused on the affluent market. Discover extensive research on the motivation leading to the selection of an advisor and common criteria for affluent female investors who stay with advisors more than three years. Become technically adept and discover effective personal marketing skills.

• Language: English
• Publisher: The National Underwriter Company
• Release date: Aug 17, 2012
• ISBN: 9781938130328

Russ Alan Prince

RUSS ALAN PRINCE is the executive director of Private Wealth magazine and chief content officer for High-Net-Worth Genius. He is the author of more than sixty-five books, including Everyone Wins! How You Can Enhance and Optimize Business Relationships Just Like Ultra-Wealthy Entrepreneurs.

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ISBN: 978-1-938130-32-8

Library of Congress Control Number: 2004105329

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. — From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations.

Copyright © 2004

The National Underwriter Company

P.O. Box 14367, Cincinnati, Ohio 45250-0367

All rights reserved.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the publisher.

Printed in U.S.A.

Dedications

To Sandi

Someday... maybe

-Russ

For friendship and support, to Suge

-Hannah

About the Authors

Russ Alan Prince

Russ Alan Prince, president of the market research and consulting firm Prince & Associates Inc., is a leading expert on the private wealth industry and on advisor-based distribution. Mr. Prince consults for leading financial institutions on strategic and marketing issues and provides a variety of coaching and consulting services to professional advisors who focus on affluent markets. He is a seasoned developer of proprietary prospecting and sales and relationship management systems, and also provides high-end customized practice management and marketing programs.

Hannah Shaw Grove

Ms. Grove is a Managing Director and Chief Marketing Officer of Merrill Lynch Investment Mangers, a global asset manager with more than $500 billion in retail and institutional client assets. She has an extensive background in the marketing and product development of asset management and insurance services from tenure with leading firms including Fidelity Investments, Prudential Insurance Company of America, Financial Research Corporation and Allmerica Financial. Ms. Grove and Mr. Prince have collaborated on three other books for financial professionals – Wealth Management, eWealth and Advisor 2000 – and they coauthor columns on the affluent market for Registered Rep, Financial Advisor and Elite Traveler.

The views expressed herein are those of the authors and do not necessarily reflect those of Merrill Lynch.

Table of Contents

Dedications

About the Authors

Chapter 1: Women of Wealth – A Personal Profile

Women of Wealth Project Objectives

Defining Women of Wealth

Interviewing Women of Wealth

Women of Wealth: A Personal Profile

Source of Wealth

Summary

Chapter 2: Women of Wealth – Motivations

Because They Made It

The Impact of Source of Wealth

Summary

Chapter 3: Financial Styles

The Search for Financial Security

Use of Financial Advisors

Their Social Network

Their Financial Concerns

Community Values

Monitoring

Feeling Secure

Summary

Chapter 4: How Women of Wealth and Financial Advisors Find Each Other

People Who Know People

Multiple Investment Advisors – It May as Well Be You

Summary

Chapter 5: How Women of Wealth Screen Potential Financial Advisors

Screening Advisors

Summary

Chapter 6: How Women of Wealth Pick Financial Advisors

Master EQ and Financial Skills (in that order)

Don’t Let Non-Starter Factors Get in Your Way

Slow Down Churn

Summary

Chapter 7: For Women of Wealth, Client Satisfaction Matters – A Lot

Investment Performance is NOT Enough

The Technical Side of Satisfaction

Great Relationships = Happy Clients

A Phone Call Can Save Millions

Summary

Chapter 8: Opportunities and Threats

Assess Threats, Evaluate and Address Root Causes

Identify New Business Opportunities and Replicate

Identify New Client Opportunities and Replicate

Summary

Chapter 9: Loyalty and Switching

Loyalty I – Women of Wealth Switching Away From a Financial Institution

Loyalty II – Women of Wealth Switching Away from a Financial Advisor

Motivations for Switching Away from Financial Advisors

Summary

Chapter 10: Investment Management

Current Use

Future Demand

Summary

Chapter 11: Estate Planning and Life Insurance

Current Use

Future Demand

Considerable Opportunities for Estate Planning and Life Insurance

Summary

Chapter 12: Charitable Giving

The Role of Charitable Giving

Charitable Attitudes

Summary

Chapter 13: Additional Services and Products

Current Use

Future Demand

Cross-Sell Investment Banking

Summary

Chapter 14: Financial Well-Being Services

Summary

Chapter 1: Women of Wealth – A Personal Profile

The road to success for financial advisors is well marked: become technically adept and connect with wealthy clients. If advisors know enough to address the complicated financial challenges facing the affluent – taxes, estate planning, and business succession, to name but a few – the rewards can be substantial: additional assets to manage, clients who are open to a wide array of financial products and services, loyalty through up and down markets, and referrals from friends and associates.

Until recently, these affluent clients have largely been drawn from the ranks of rich men. That made sense because, traditionally, the person handling investment decisions in American households was a man. The majority of financial advisors were also men who could easily relate to their male clients. Marketing campaigns were skewed to appeal to that audience, using images of luxury cars and scenic golf courses to not so subtly suggest the rewards of financial well being. When those advisors did work with women, they were more often than not widows or heiresses accustomed to deferring to men when making their financial decisions.

As the following statistics plainly demonstrate, however, investing and finances are far from a man’s world these days:

As of 2002, 43% of Americans with