Whether it be through divorce or death, there are women in the financial marketplace who previously made decisions with the men in their lives and no longer have those men with whom they discuss those financial matters.
Spectrem’s new whitepaper Women in Transition; Widows and Divorcees looks at those women and some of the factors that determine how they make their financial decisions going forward.
According to Census Bureau data, there are 7 percent of American millionaire households (with a net worth between $1 million and $5 million) led by a widow, and another 7 percent led by a divorced woman. The rate of divorce remains near 50 percent in the United States, while approximately 700,000 to 800,000 women become widows every year, according to the Census Bureau.
The Spectrem study shows that widows and divorcees differ in how they approach finances, and part of that difference might relate to age. On average, widows tend to be 70 years old, while the average Millionaire divorcee is 62 years old.
Only 6 percent of Millionaire widows declare themselves to be aggressive in terms of investment risk, and 31 percent consider themselves conservative. Divorcees, who are younger, tend to be more aggressive, with 14 percent of Millionaire divorcees calling themselves aggressive and only 17 percent calling themselves conservative.
Aggressiveness is a key component to the matter of how investors approach the expansion of their investment portfolio. Divorcees outpoll men in the terms of wanting their portfolios to grow, with 55 percent of divorcees looking to added wealth to only 49 percent of men. Only 42 percent of widows look for portfolio grow as the majority prefer to concern themselves with the safety of their current portfolio value.
It is not surprising to learn that 21 percent of widows consider themselves advisor-dependent, asking their financial advisor to make all of their investment decisions. Only 16 percent of divorcees describe themselves that way, and only 13 pe3rcent of men are advisor-dependent.
To download the free whitepaper, click here