October 1, 2023

The number of women contributing to household finances has continued to increase over the last few decades and with that, dependency on parents or partners to manage their finances continues to decline.
According to a recent study by McKinsey, women are taking center stage as investors and already control a third of total U.S. household investable assets — approximately $12 trillion. By 2030, American women are expected to control much of the $30 trillion in investable assets that baby boomers presently possess. This represents a potential wealth transfer that approaches the annual GDP of the U.S.
At the same time, younger affluent women are becoming more financially savvy, for example, 30% more women in partnerships are making major financial and investment decisions than five years ago. The gender investment gap is slowly narrowing as women continue to become more knowledgeable and confident in their financial goals.
Popular Investments team has been seeing these trends unfold as well. Today’s woman is more educated, with a higher life expectancy, a decreasing gender pay gap (especially in larger urban areas) and a new sense of uncertainty following a more than two-year pandemic. These and other factors are driving the increase in the number of women actively participating in the market and taking more control of building their financial future.
“The pandemic became a catalyst in the conversation around financial planning and wealth optimization,” says Diana Soto, Infinex Investments financial consultant at Popular Investments in Doral, Florida. “From covering long-term health care needs to dabbling in trading for supplemental income, women have taken the lead in managing financial decisions.”
“As investors, women tend to be thoughtful and usually less impulsive,” adds Gladys Stathis, Infinex Investments financial consultant at Popular Investments in Sunrise, Florida. “When you’re facing a global health crisis, discussions around financial legacy, generational wealth and what you are leaving behind become increasingly tangible.”
That includes a heightened interest in other financial products, like annuities and insurance. “Pre-Covid, I would see clients with insured smartphones, but not their loved ones or their homes. Now, things have changed,” says Soto.
In addition to major life changes, the pandemic strained a lot of relationships, resulting in many women embracing financial independence and solo decision-making.
“Access to information about the markets, investing, optimizing wealth or tapping into liquidity have become daily topics of discussion with our women investor clients,” says Jessica Hernandez, Infinex Investments financial consultant and Popular Bank private banker in Brickell. “Every day, we are mapping out next steps, gauging risk appetites and looking at a product suite that responds to our clients’ goals and needs.”
Myth breaking: Women investors take fewer risks
A 2021 NerdWallet survey highlighted that the youngest generation of adults — Generation Z (ages 18-24) — are more likely than their older counterparts to say they learned how to choose investments from their parents (32%, compared to 19% of millennials, 12% of Xers and 10% of baby boomers). Younger Americans are learning the importance of investing for the long term earlier than other generations and with pay transparency becoming the new normal, the subject of money — and what to do with it — is becoming less taboo at home.
“I meet with a lot of women entrepreneurs looking to build, grow and manage wealth,” says Julia Nurques, commercial private banker at Popular Private Client in Aventura. “From the very beginning, they are more informed on various products and returns.”
“Women investors are intuitive and thoughtful. As they grow in knowledge and confidence, collaborating with their financial planner tends to happen naturally,” adds Diana Soto.
Getting started
For anyone looking to start investing, the team recommends asking yourself the following three questions:
The answers will determine how a financial planner can best help you achieve your goals.
Popular Investments has trained investment professionals available to help those just starting out on their journey and those with existing portfolios. Stop by one of our South Florida branches or reach out directly today.
Popular Bank is the mainland subsidiary of Popular, Inc. (Nasdaq: BPOP), which ranks among the top 50 U.S. banks by assets. Popular, Inc. brings nearly 130 years of success in banking, driven by integrity and values. At Popular Bank, we leverage our financial expertise to enable customers to focus on what matters most. We have branches in New York, New Jersey, and Florida, and provide 24/7 digital banking solutions and access to 55,000 ATMs through the Allpoint network. Popular Bank and its affiliates are not affiliated with ATM National, LLC. Allpoint is a registered trademark of ATM National, LLC.
Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. (“Infinex”) a registered investment adviser and broker-dealer (member FINRA / SIPC). Popular Investments is a unit of Popular Bank. Popular Investments and Popular Bank are not registered as a broker-dealer or investment adviser. Registered representatives who are employees of Popular Bank are dual employees and registered with Infinex. Infinex and Popular Bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.
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