May 28, 2025 • Cary Carbonaro | Read Original Post
Editor’s Note: Parts of this piece have been adapted and excerpted with permission from the publisher, Wiley, from Women and Wealth by Cary Carbonaro. Copyright © 2025 by Cary Carbonaro. All rights reserved. This book is available wherever books are sold.
Why Women Are Not A Niche
The wealth management industry has long viewed women as a subsegment—widows, divorcees or the “non-financial spouse.” But let’s be clear: women are not a niche. They are over half the population, outlive men by an average of five years, control consumer spending and are increasingly becoming primary breadwinners, entrepreneurs and investors.
What’s more, women have different financial journeys, values and needs. They crave transparency, education, empathy and purpose in financial conversations—factors too often overlooked in traditional advisor models. For financial professionals who are still treating women as an afterthought, it’s time to wake up: this is not just a social imperative; it’s a massive business opportunity.
The Trillion-Dollar Opportunity
By 2030, American women are expected to control more than $30 trillion in wealth—much of it transferred from aging parents, spouses or accumulated through their own careers. This represents the largest intergenerational wealth transfer in history, and women will be at the helm of it.
Yet many advisors continue to lose female clients due to outdated approaches. McKinsey & Co. reports that 70% of women switch advisors within a year of a spouse’s death, citing lack of engagement, respect or relevancy. I recently spoke on this at Financial Advisor magazine’s 10th annual Invest In Women conference in Boston. Below is the slido poll from my talk.
This shift in wealth control isn’t just a demographic trend—it’s a wake-up call. If advisors don’t adapt their practices now to build long-term relationships with women, they’ll be left behind. The opportunity is there for those who can meet women where they are, speak to their unique life journeys, and empower them with meaningful advice.
Why The Financial Industry Developed A Male-Centric Model
To understand why so many financial advisors still approach women as a niche market—or worse, overlook them entirely—we need to look back at how the financial services industry was built. For much of modern history, money management has been shaped by the belief that men control the money.
In the 19th and early 20th centuries, women in most countries had very few legal rights related to finances. In the U.S., laws like coverture meant that married women couldn’t own property, sign contracts, or open a bank account without their husband’s permission. Even as women began to enter the workforce during and after World War II, they were largely excluded from financial decision-making at home and in the marketplace. This reinforced a persistent societal narrative: men earn and manage the money, while women spend it.
Naturally, the financial industry—banks, brokerages, investment firms—was built to serve this male archetype. Advertising, product design, communication styles, and even hiring practices all reflected and reinforced a male-dominated view of wealth. It wasn’t until the 1970s that U.S. women could open a credit card in their own name, and it took decades more for women to begin achieving parity in employment and earnings.
Despite women’s growing financial power today, much of the industry is still playing catch-up. Many advisors were trained under systems designed to cater to male clients and continue to lead with performance-driven, transactional conversations that may not resonate with women, who often value relationships, trust, and life-centered planning more highly.
The Narrative Is Evolving—Slowly
In the last 20 years, the financial narrative has started to shift. As more women enter the workforce, launch businesses and inherit wealth, they are becoming not just participants but leaders in financial decision-making.
According to McKinsey & Co., women are adding an estimated $5 trillion to the wealth pool globally every year, and by 2030 will control more than $30 trillion in the U.S. alone. That’s a monumental transfer of power that no advisor or firm can afford to ignore.
And yet, many still treat women as an afterthought—or assume they’re only interested in saving or budgeting, not investing or wealth-building. The “pink it and shrink it” approach—superficially marketing financial services to women without deeply understanding their needs—remains all too common.
Advisors who want to remain relevant must evolve. That means replacing outdated, male-centric models with holistic, empathetic planning that speaks to who women really are—breadwinners, investors, caregivers, entrepreneurs and decision-makers.
By acknowledging the roots of the industry’s male-centric legacy, we can more clearly see what must change and how to get there. It’s not just the right thing to do—it’s a smart business strategy for any advisor who wants to thrive in the decade ahead.
Widows And Divorcees Are Not The Only Clients!
Financial advisors often focus on traditional client segments such as widows and divorcees, neglecting other critical life events that affect women’s financial needs. This limited perspective can result in inadequate support for women navigating diverse and significant life changes, such as career transitions, menopause and family planning.
Wealth management for women has traditionally focused on widows first, divorcees second, and pretty much nothing else. It is as if all women fall into these two boxes. It may come as a surprise to the wealth management industry that women experience much more than two life events. When I look at women’s life events, I come up with seven distinct ones.
Yes, of course, we have the first two: death of a spouse/widowhood and divorce/separation. But advisors should give more thought to all seven of these life events to help their female clients and strengthen their client relationships. Most of these life events are triggers to review financial plans and beneficiaries, and advisors should encourage clients to inform them should these events arise.
1. Death of a spouse/widowhood. As many as 70% of female clients leave their financial advisors soon after their husbands die. I am usually on the receiving end of this. When women lose their life partner, every decision can seem impossible to make alone. It is a great time to work with an advocate who can help them work on big life and financial decisions while they are dealing with grief. Everyone grieves differently. This is a time for an empathetic financial advisor to shine.
2. Divorce/separation. This is another emotionally charged time in a woman’s life. Sometimes this is worse than the death of a spouse. It is a time where they are figuratively burning the house down and starting over. It is scary, but it is another time in their life when you can shepherd them through it, and you can shine. I used to call my time as trauma bonding with my clients, but now I call it reliance bonding. When they come out on the other side, stronger, healthier and empowered, they credit me for getting through the difficult times.
3. Career change/returning to work. Our careers are important to us. Losing a job not by choice is a life-altering event. I’ve seen this with my clients over and over. Even when it is their choice, it still is a life change that needs help and guidance to be navigated. I’ve also worked with clients who want to obtain “returnships” to help them re-enter the workforce after a long gap.
4. Menopause. Menopause is a huge life change when you are in it, and you are in it for the rest of your life. It can have physical, mental, and financial consequences. Menopause is a good time to review retirement plans, healthcare costs and mental health support with your clients. Every woman’s experience is unique. It is a time for reflection. Menopause is a life stage most financial planners don’t address.
5. Marriage or remarriage. Getting married or remarried is a huge life event for clients. They are not only merging their lives, but they are also merging their money. They need a financial planner to make sure they are aligned with their new partner. Do they have the same goals? Is one a saver and one a spender? Have they gotten financially naked? This means being honest and sharing info such as net worth (including all assets and liabilities). If either partner has credit card debt or student loans, the other one needs to know this.
6. Childless by choice. Yes, this is a thing and an entire category of women. A woman without a child does not need to do any additional financial or estate planning than women with children. She has to decide who her beneficiaries are, and she needs to have a will, a healthcare proxy and a power of attorney. She can also decide if she needs a trust.
7. Family and college planning. I’ve worked with many clients who have said to me that they wanted to plan for having a baby. Some questions to consider: Will they or their spouse stay home, or will they get a nanny? Will they take a sabbatical from work? Will they want to fund college? How much life insurance will they need now that they are responsible for a human life? These are also huge financial decisions that you as their advisor can help them think through.
Empowering Women
In recognizing and addressing the diverse life cycles of women, the wealth management industry can break free from traditional stereotypes. By providing tailored and empathetic financial guidance throughout these distinct phases, financial advisors can empower women to navigate their unique journeys successfully. Embracing the richness of women’s financial experiences goes beyond widows and divorcees. We can and should create a more inclusive and supportive wealth management landscape for all women.
Advisors also need to stop assuming that what worked for the husband will work for the wife. Women often need a different type of financial relationship—one grounded in education, communication and trust. They want to feel seen, heard and respected. Advisors who recognize this shift and evolve their practice will build long-term client loyalty and lasting impact.
The Solution: Capitalize On The Trillion-Dollar Opportunity
To truly serve women clients—and retain their trust across generations—financial advisors must rethink their approach from the ground up. Here are five practical ways to capitalize on this historic opportunity:
1. Shift from product-centered to client-centered planning. Stop leading with products. Start by understanding her goals, values, fears and dreams. Use tools like behavioral finance assessments and life-stage planning to uncover what matters most to her.
2. Build life-centered planning models. Women don’t want to talk about alpha and beta; they want to talk about retirement security, caregiving costs and life transitions. Create planning models that center on those realities, not just returns.
3. Create content that speaks to her. Whether it’s blog posts, webinars or social campaigns, use messaging that reflects women’s priorities: longevity, legacy, philanthropy and purpose. Avoid jargon. Speak to values, not just performance.
4. Develop an inclusive, female-friendly practice. Examine your office environment, website and team culture. Do they reflect a welcoming space for women? Are your staff trained to recognize unconscious bias and practice empathetic listening?
5. Offer family planning and longevity planning as core services. Help women make proactive decisions around elder care, long-term care insurance, estate planning and family dynamics—before they become emergencies. This kind of planning builds trust and loyalty.
Questions For Financial Advisors To Ask Themselves
• Are we considering all significant life events that impact our female clients, or are we focusing too narrowly on traditional categories?
• How can we integrate empathy and tailored advice into our services for clients experiencing major life changes?
• Do our financial planning strategies address the specific needs associated with menopause, career changes or remarriage?
• Are we staying informed about new research and trends that impact women’s financial health?
• How can we better support clients who are childless by choice or planning for future family needs?
Conclusion: The Business Imperative We Can’t Ignore
Women aren’t a “trend” or a “segment.” They are the future of wealth in America.
If the financial industry continues to treat women as a niche, it will miss the single greatest growth opportunity of the next decade. But for those who adapt—who listen, educate and empower—this is a chance to build lasting relationships across generations and help shape a more inclusive and meaningful future of financial planning.
My hope is that more advisors will evolve—not just to grow their practices, but to make real impact. Women deserve advice that reflects their complexity, honors their life experiences, and supports their goals.
Let’s stop talking about whether women are different.
Let’s start acting like we know they are—and serving them accordingly.
Cary Carbonaro, CFP, is managing advisor and women and wealth ambassador at Ashton Thomas.
