International Women’s Day 2023: The changing face of wealth
As we celebrate International Women’s Day 2023, it seems fitting to reflect on how the face of women and wealth is changing – and what remains the same.
First, the good news. A recent McKinsey report indicates that “an unprecedented amount of assets will shift into the hands of US women over the next three to five years, representing $30 trillion…by the end of the decade.” That same shift is happening in Canada too. There will be much more wealth in the hands of highly-educated and engaged women, many of them entrepreneurs.
And those entrepreneurs are successful. According to The State of Women’s Entrepreneurship in Canada 2022, the number of new women-founded start-ups with a valuation of more than US$1 Billion in Canada has almost doubled since 2019, even in the face of the devastating impacts of the pandemic on women-owned businesses.
Yet women still face barriers when it comes to managing their wealth. Research consistently shows that women are twice as likely to admit lack of confidence when it comes to investing. Education and awareness are key, and a recent article in The Globe and Mail emphasizes that very thing: “36 percent of women who don’t currently make financial decisions for their households say learning about this topic would motivate them to become more involved in their finances.”
As women become more affluent in the years ahead, the first important step is forming a partnership with an advisor who can help build that confidence: someone who appreciates your unique needs, is genuinely interested in helping you understand where and how your money is invested and is proactive in communicating regularly with you. As Newport’s Chief Investment Officer Mark Kinney often says, a well-educated client is the best possible kind of client to have.
As we celebrate the successes of the women around us, we also encourage them to take charge of their financial future in a way that is empowering and meaningful. From, all of us at Newport, we salute you!
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