What to Look for in a Financial Advisor for Women

If you’re considering a financial advisor for women, you’ve already made a step in the right direction. Research has shown that households working with a CERTIFIED FINANCIAL PLANNER® professional have made better financial decisions taking into account portfolio risk levels, savings habits, life insurance coverage, revolving credit card balances, and emergency savings.¹  Given the particular financial challenges women face, turning to a financial advisor who is dedicated to women can be especially helpful.

Of course, you don’t want to work with just anyone. But how can you find the right fit for you? We’ll walk you through a few of the most important criteria in choosing a financial advisor for women. First, however, it’s important to understand some of the special financial needs women have, and how they may benefit from a dedicated approach to their financial lives.

Needs and Challenges a Financial Advisor for Women Can Help You Address

While every woman and her situation is different, there are certain challenges women tend to face that make finding a dedicated CERTIFIED FINANCIAL PLANNER® professional for women particularly important. Consider that:

• The average life expectancy in the United States is measurably higher for women (80 years) than men (74 years).²  That puts more pressure on your personal finances for a couple of reasons. For one, you need more money to last you those additional years. But women who are married to men also tend to outlive their husbands — and becoming a widow has the potential to significantly reduce your income.
• Women are more likely than men to take leaves of absence from the workforce to raise young children or care for aging parents.³
• In some fields, women still earn less than men for comparable work.⁴  With potentially lower lifetime earnings, you may find it difficult to save for the future, making retirement planning even more important. If you divorce and head up a single-income household, lower earnings will prove even more of a hardship.
• Studies show women generally are more risk-averse than men when it comes to finances.⁵  That means you might be inclined to make very conservative financial decisions. For example, keeping an excessive amount of cash on hand could reduce your returns.
• An estimated 71% of primary caregivers are women,⁶  and that often comes with an additional financial burden. Many women want to not only provide financial support for their dependents throughout their lifetime, but also ensure that they provide an inheritance.

The Benefits of Working with a Financial Planner for Women

So, what do you stand to gain by working with a financial advisor for women? Here are a few of the top perks:

• An optimized tax strategy: Even if you earn a good income, poor tax planning can take a significant bite out of your earnings. In fact, 54% of women say they’re concerned that taxes will make it harder to save for the future.⁷  With extensive knowledge of tax credits and deductions, as well as strategies to reduce taxable income, financial planners can ensure that you won’t pay any more than your fair share.
• A retirement readiness plan: Just 19% of women believe they’re on track for their retirement goals.⁸ Financial planners can help you determine your optimal mix of spending, saving, and investing so that you can enjoy a well-deserved break after your career. Even if you’ve taken breaks from the workforce or didn’t reach your full earning potential earlier in your career, a financial advisor for women can help you get on track with retirement planning.
• A comprehensive estate plan: It’s natural to want to make sure that your loved ones will be taken care of after you’re gone, especially if they are caregivers. Drafting an estate plan on your own, however, is no easy feat. A CERTIFIED FINANCIAL PLANNER® professional can help you decide which estate planning documents you need, advise you on how to pass wealth onto your loved ones without incurring a tax burden, and collaborate with your estate planning attorney to make sure your plan is airtight.
• A goal-based investment portfolio: No matter what component of personal finances you look at, investments are almost always the key to reaching your financial goals. But without specialized knowledge in finance, you may not be equipped to come up with a proper investment strategy. Studies have shown that individual investors consistently underperform the market⁸ — that’s why it’s best to consult a professional who uses evidence-based strategies.
• Greater peace of mind: Financial security is the key to living the life you want — so if you don’t feel confident in your finances, it can be a significant source of stress. And with just 28% of women feeling empowered to take financial action,⁹ that means many more women feel anxious and uncertain in their financial lives. Working with a professional financial planner for women, however, can give you the plan you need to feel confident about your financial future.

What to Look for in a Financial Advisor for Women  

Searching for a financial planner for women may feel overwhelming — with so many options out there, you might not know where to start. And even when you do find someone who seems promising, you may not be sure how to evaluate them.

Here are a few attributes that we recommend looking for:

1. A personalized approach

Every woman is different, and their financial plans should be as well. The financial needs of a recently divorced woman, for example, may be different than those of an executive in her prime earnings years— and each of their plans should reflect those individual needs of female clients.

When evaluating a financial planner for women, try to get a sense of whether the advisor wants to understand your personal financial goals, as well as help you identify and articulate them. The advisor should ask lots of questions — such as: “At what age do you want to retire?” “What are you saving up for at the moment?” and “Where do you see yourself in the future?” These are all indicators that the advisor you’re speaking with will be a true partner interested in building a relationship with you.

2. An integrated methodology

Finances factor into nearly every aspect of your life, from investments to taxes, estate planning, retirement planning, budgeting, and more. As such, you’ll want to avoid financial advisors whose scope is too narrow.

If the person you’re speaking with only focuses on investments, for example, you’ll be missing many pieces of the puzzle. Instead, look for somebody who brings up multiple areas of personal finance and mentions how they interact with one another.

3. A solid investment strategy

Investment success is about more than just buying low and selling high. Any financial advisor for women worth their salt should be able to articulate their firm’s investment strategy. If they can’t — or if you don’t understand or relate to it — you should proceed with caution. The best firms will have strategies based on proven research rather than fads. 

At Team Hewins, for instance, we pride ourselves on developing diversified portfolios with low costs. We don’t try to time the market, and we don’t recommend taking on more risk than you need to (or can tolerate). By sticking to these core tenets, we help our clients build sustainable wealth over time. 

4. A long-term view

Speaking of sustainable practices over time, you’ll want to make sure that any financial planner for women that you evaluate is focused on the long run rather than the short run. After all, as the old saying goes, “life is a marathon, not a sprint.”  

Any advisor promising instant exponential results should be viewed with skepticism. However, those who embrace a long-term view of financial well-being — and who talk about adjusting strategies over time according to changes in your goals, earnings, health, etc. — are much more likely to be reliable. 

5. A style and personality you can relate to

While any good financial advisor for women should have a proven track record of success, it’s not all about facts and figures. When interviewing a potential advisor, pay attention to your gut feeling. Does the advisor make you feel comfortable? Do they listen just as much (if not more) than they speak? Do you get the sense that they genuinely care about you as an individual — not just your money?

You should hire an advisor who is attuned to you, not their own agenda — one who takes time to educate you on financial topics without talking down to you. When you have a personal connection, you’ll feel all the more confident in making important financial decisions.

6. A compensation model that works for you

You may feel a bit uncomfortable asking how an advisory firm is compensated, but it’s an important and valid question to ask. Some financial advisors may get kickbacks for pushing certain investments, even if they’re not in their clients’ best interests. This means they may suggest what makes them money rather than what’s best for you.

Others, however, avoid conflicts of interest by earning a percentage of your assets, which encourages them to strive for strong returns. When researching a financial planner for women, look for terms like “fee-only” and “fiduciary” to make sure that they’re truly on your side. 

Get Started with Financial Planners that Specialize in Women

If you’re looking for a knowledgeable, experienced, and professional financial advisor for women who will look out for your best interests, Team Hewins might just be the right fit for you.

We understand that your financial situation is as unique as you are. We work closely with women (and men) at every stage of life, helping them achieve the life they envision. Our team practices an integrated, personalized approach to financial planning that focuses on building strong, long-lasting relationships.

Schedule a free consultation today to learn more about Team Hewins, and find out if we’re the right fit for you!

 1.Williams, Rob. “5 Ways Financial Planning Can Help.” Schwab Brokerage, 13 Jan. 2022, www.schwab.com/learn/story/5-ways-financial-planning-can-help#:~:text=Research%20has%20shown%20that%20households,card%20balances%2C%20and%20emergency%20savings.
2. Mortality in the United States, 2020. 22 Dec. 2021, https://doi.org/10.15620/cdc:112079.
3. Mullen, Caitlin.”Women More Than Men Adjust Careers Around Kids.” Bizwomen, 5 October, 2018, https://www.bizjournals.com/bizwomen/news/latest-news/2018/10/women-more-than-men-adjust-careers-around-kids.html.
4. IESE Business School. “Gender Pay Gap Persists Globally, Even for Same Jobs Within Companies.” Forbes, 14 Dec. 2022, www.forbes.com/sites/iese/2022/12/14/gender-pay-gap-persists-globally-even-for-same-jobs-within-companies.
5. City, University of London. Women Dislike Financial Risk Taking, Research Finds | City, University of London. www.city.ac.uk/news-and-events/news/2019/10/women-dislike-financial-risk-taking-research-finds.
6. Primary Caregiver Demographics and Statistics [2023]: Number of Primary Caregivers in the US. 21 July 2023, www.zippia.com/primary-caregiver-jobs/demographics.
7. Lewis, Katherine Reynolds. “The Psychology Behind Your Worst Investment Decisions.” Kiplinger.com, July 2021, www.kiplinger.com/investing/603153/the-psychology-behind-your-worst-investment-decisions.
8. Reinicke, Carmen. “The Pandemic Has Widened the Gap Between Women and Men’s Retirement Savings. What to Know About Catching Up.” CNBC, 24 Mar. 2022, www.cnbc.com/2022/03/24/only-19-percent-of-women-are-confident-theyre-saving-enough-to-retire-.html.
9. “Bank of America Study Finds 94% of Women Believe They’ll be Personally Responsible for Their Finances at Some Point in Their Lives.” Bank of America, 22 Jun. 2022, https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/06/bank-of-america-study-finds-94–of-women-believe-they-ll-be-pers.html

Team Hewins, LLC (“Team Hewins”) is an SEC-registered investment adviser; however, such registration does not imply a certain level of skill or training, and no inference to the contrary should be made. We provide this information with the understanding that we are not engaged in rendering legal, accounting, or tax services. We recommend that all investors seek out the services of competent professionals in any of the aforementioned areas. Certain information provided herein is based on third-party sources, which information, although believed to be accurate, has not been independently verified by Team Hewins. Team Hewins assumes no liability for errors and omissions in the information contained herein. Nothing contained herein may be relied upon as a guarantee, promise, assurance, or a representation as to the future.