PALM BEACH, Fla./PRNewswire/ — Wealthy women today are not only wealthy, but well educated and working too. They give education and work a high priority, manage their own money and careers, are philanthropic, and want to give their children equal shares in their wealth, a recent study sponsored by Asset Management Advisors (AMA) concluded.
AMA’s CEO, Mel Lagomasino, remarked on the importance of the study findings stating, “Women are key decision makers, making up 46 percent of top wealth holders in the U.S., so understanding their needs, views and approach to wealth is critical to helping families successfully manage their wealth.” With a 20.7% response rate, over 100 women with a combined minimum net worth exceeding $2 billion participated in the study sponsored by AMA. The study focused on women’s approach to wealth management, including their attitudes, values, practices and wealth transfer intentions.
“The study’s findings help debunk some prevalent myths, particularly around affluent women’s involvement, awareness, education and employment,” said Kirby Rosplock, vice president of research & development, who conducted the research. The study is part of a larger, multi-institutional study conducted with Fredda Herz Brown, Ph.D. and Dennis Jaffe, Ph.D., principals at Relative Solutions.
Some of the myths challenged by the study’s findings include the notion that affluent women are not that educated or employed, that they are not interested or involved with the management of their wealth; that women are not communicating about their wealth, specifically their estate plan and wealth transfer intentions to the next generation and women are not interested or focused on legacy planning. On the contrary, many of the research findings provide insights that challenge some of these stereotypical generalizations.
Some key insights gleaned from the study are:
-- Surveyed affluent women are not only wealthy, but very well educated:
Over 60% of the women indicated that the net worth of their household
was between $5 and $100 million. When asked about the level of
education completed, over 80% had at least a Bachelor's degree and over
40% had a Master's or Ph.D.
-- A majority of wealthy women work: 53% of the women surveyed are
employed and manage their own careers. 70% expect family members to
work.
-- Supporting family members financially with their education is a
priority: Not only do the women who were surveyed feel it is important
to be educated themselves, 70% agreed that it is important to support
family members financially with their education.
-- A majority of women concur that they are in control and involved with
the management of their wealth: When asked to rate the statement, "I
have control of my wealth," 68% agreed, and over 50% said they are
actively involved with the management of their wealth. Women expressed
the importance of not relying on a man when it came to their wealth,
and the importance of being educated and knowledgeable about wealth
management issues.
-- A majority of women are talking about wealth in their families and have
communicated to their children about their estate plan and inheritance.
Seventy-one percent of women indicated that their families are talking
about wealth. Over 70% of women agreed that they are talking to
advisors and spouses about wealth, with 62% of women agreeing that they
have talked with children about estate plans and 64% of women agreeing
that have talked with children about their inheritance.
-- A majority of women indicate that their families are philanthropic.
Over 85% of women indicated that their families are currently
philanthropic, and interviews indicated that women and families are
volunteering their time, knowledge and expertise as well as their
dollars. Of special note, 43% of women indicated that they serve on a
community board(s).
-- A majority of women anticipate having their children inherit equally.
Almost all women with children indicated that some portion of their
wealth would go to their children, and 95% of mothers surveyed intend
for their children to inherit equally.
