By Carly Nathanson, Wilmington Trust
For the past almost 20 years, the movie industry has seen enormous expansion and diversity of heroes. The “Transformers” franchise alone has exploded across screens featuring robots voiced by leading men and women in the industry.
Now though, we’re seeing a new batch of Transformers – women with wealth who are controlling business and family assets.
The financial landscape has started, and will continue to be, reshaped by a powerful shift as women are acquiring unprecedented control over wealth. Whether a result of women gaining control following divorce or death of a spouse or whether it is just a continuation of this trend, it’s essential for women to take an active role in managing and growing their financial resources…and transforming the entire wealth landscape.
Traditionally, women have been seen as more conservative investors, often prioritizing long-term stability over aggressive growth. However, this cautious approach, while protective, has sometimes limited potential gains.
We see this changing.
At Wilmington Trust, we work with our clients to understand their full financial picture and their goals for their wealth — and for future generations — in order to embrace calculated risks and potential growth from their investment strategies.
We work closely with clients to build long-lasting relationships and make informed decisions, understanding market trends, and educate about financial securities. Understanding the importance of financial empowerment and adopting effective investment strategies can help women with wealth secure their financial futures and achieve their long-term goals.
As 2024 comes to a close, it’s a perfect time to review financial goals and make strategic moves to empower yourself and your family and take control of your finances.
As a starting point, we suggest seven foundation steps for 2025 and beyond for those suddenly thrust into positions of control as divorcees or widows or any women looking to empower themselves financially.
Top Investment Ideas to Empower Women to Become Transformers and Take Control of Their Finances
- Educate Yourself. Knowledge is power. The more you understand about financial markets, investment vehicles, and economic trends, the more confident you’ll feel in making informed decisions. Knowledge of the financial markets will arm you with plenty of information to help you work with an investment advisor to gain ongoing financial acumen, helping you become more informed and empowered in your financial journey.
- Set Clear Goals and Objectives. Revisit your and your family’s objectives and goals. Having clear, defined financial goals is essential for successful wealth management. Talk together as a family. An investment advisor can help you create a comprehensive financial plan that aligns with your life goals and legacy planning.
- Rebalance. Review your asset allocations. These can often drift due to market movements. Then, you can rebalance to target weights to align with long-term objectives. Diversification can be important in managing risk. Invest across different asset classes — stocks, bonds, real assets, and private markets — to help reduce the impact of market volatility on your portfolio. This approach can help protect your investments while still offering opportunities for growth. On an ongoing basis, an investment advisor monitors your portfolio, makes adjustments as needed, and provides insights into market trends, ensuring your investments remain aligned with your goals.
- Don’t Be Afraid. While caution has its place, it’s important not to shy away from calculated risks. Advisors can help you assess and manage risk effectively, suggesting strategies to diversify your portfolio and protect your investments during market downturns. Ask lots of questions about what the words “acceptable risk” mean to your advisor. Working with an advisor, you can design an investment strategy that balances risk and reward according to your comfort level and objectives.
- Invest Tax-Efficiently. Death and taxes are still the only sure things. Consider strategies like tax-loss harvesting, where you sell underperforming investments at a loss to offset gains elsewhere in your portfolio. This approach can help minimize your tax liability while optimizing your investment performance. Additionally, consult with a tax advisor to explore other tax-efficient investment options.
- Explore ESG. If you are going to take a more hands-on approach to finances, look to have your values reflected. To start, you can construct a portfolio that is tilted to focus on companies that are committed to environmental sustainability, social responsibility, good governance, or other values that will align with you and your family’s long-term wishes.
- Review Cash and Expenses. Is your child going to college next year? Is a vacation home on the horizon? It’s always responsible to re-evaluate cash flows that may be needed for the upcoming year as well as large short-term (1-3 years) outlays. An allocation of your portfolio can be held for living expenses and building an emergency fund that can help give you the confidence to remain invested through volatile markets. Reviewing these expenses at the end of the year goes hand in hand with rebalancing your portfolio. This evaluation can also point out excess cash or longer-term assets that can now be allocated for growth.
These seven ideas will help “transforming women” to continue to gain control and comfort with their wealth, while also giving the opportunity to influence financial markets and drive positive change.
By embracing a proactive approach to wealth management, taking calculated risks, and making informed investment decisions, women, including women who are suddenly single through divorce or death of a spouse, can help secure their financial independence and leave a lasting financial legacy.
We all want to empower ourselves by taking control of our finances. The end of the year is an ideal time to reassess financial goals, explore new investment opportunities, and ensure that your wealth management strategy is aligned with your long-term vision.
Indeed, it will allow women transformers the opportunity to change the face of our families for generations to come.
— Carly Nathanson, Senior Wealth Investment Advisor at Wilmington Trust
© 2024 M&T Bank and its affiliates and subsidiaries. All Rights Reserved.
There is no assurance that any investment strategy will be successful. Investing involves risks, and you may incur a profit or a loss. Asset allocation/diversification cannot guarantee a profit or protect against a loss.
This article is for general information only and is not intended as an offer or solicitation for the sale of any financial product, service, or other professional advice. Wilmington Trust does not provide tax, legal or accounting advice. Professional advice always requires consideration of individual circumstances. Wilmington Trust is a registered service mark used in connection with various fiduciary and nonfiduciary services offered by certain subsidiaries of M&T Bank Corporation.
Carly Nathanson is a Senior Wealth Investment Advisor at Wilmington Trust where she is responsible for developing customized investment portfolios for her clients based on their unique parameters for risk, return, liquidity, and other factors. Carly holds a bachelor’s degree in economics from Columbia University in New York City where she played Division I golf and served as team captain. She holds the Chartered Financial Analyst® designation and is a member of the CFA Society.
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