How can female executives and entrepreneurs equip themselves for long-term financial success?
“When financial goals are well defined and have personal significance, there is greater motivation to maximize the accumulation of assets to realize those goals.”
Women are gaining ground in the highest echelons of self-made wealth. In fact, 2017 was a record-breaking year for female self-made billionaires, with 56 women making the Forbes World Billionaires list. Historically, the world’s richest women were more likely to have inherited some or all of their wealth, according to a 2018 Wealth-X report. Now there are thousands of self-made female entrepreneurs who have achieved ultra high net worth status.
For women reaching ever-higher corporate levels or who own their own companies, long-term financial success depends on understanding the fears and tendencies that could jeopardize that success. While circumstances vary for each person, our suggestions can
Negotiate compensation and employment agreements.
Women sometimes are, or
Many of these important details are negotiable. For instance, an executive could request that components of her compensation
Create a goal-based financial plan.
Women often are more goal-oriented in their approach to investing and building wealth. Rather than focusing on pure investment performance, women place significant value on achieving their personal financial goals, including financial independence and supporting their families and selected causes. This tendency is an inherent strength. When financial goals
As a woman’s net worth increases, so does her need for more professional advice in proactively planning and implementing strategies, including tax planning, estate planning, family wealth planning and charitable giving, to help her achieve her goals. Working with an advisory team that offers a comprehensive approach and acts as her personal advocate will give her the comfort of being well supported as she pursues her vision.
Understand the role of investment risk.
Achieving financial goals depends in part on taking the
Consider that women on average spend more years out of the workforce than men, to care for children and aging parents. They also live longer. 70 percent of women 75 and older will at some point require assisted medical care, according to the U.S. Department of Health and Human Services Administration on Aging. Investment risk should account for these and other variables
As women earn more and more wealth, they have more to gain