Power Up Wealth podcast – Episode 115 – The Rise of Women’s Wealth: A Financial Revolution
James Derrick 0:00
Women are playing a bigger role in financial markets than ever before, and they are reshaping the landscape for themselves and all of us. I’m James Derrick, President of Smedley Financial. Today, Amy Hansen will help us understand the new impact women are having on the industry, and what Amy thinks all women need to know.
Shane Thomas 0:21
Welcome to the SFS Power Up Wealth podcast, where we provide impactful insight and expert opinions on timeless financial principles and timely investment topics, preparing you to make smarter decisions with your money.
James Derrick 0:37
Thank you for joining me today, Amy.
Amy Hansen 0:38
Hi, thank you.
James Derrick 0:39
Amy joined Smedley Financial Services in 2025. Prior to that, she also worked in the financial services industry, and I’m grateful that she is participating with our Power Up Wealth podcast today. Amy, the share of wealth controlled by women in America was 34% in 2023, and it’s probably north of 35% by now. Why do you think this matters?
Amy Hansen 1:02
Okay, so the big story here is that women’s trajectory of wealth is moving up compared to men’s. So, the women, the wealth the women are holding is growing, and the wealth that men are holding is not growing as fast. So, women are earning, holding more and more, and the reason this is happening is because the wealth is primarily held right now by the baby boomer generation, and most of those couples have statistically a younger female counterpart, and women outlive men, so all this wealth is moving into the hands of women in that generation, and then there’s other factors that affect it, like more women are working, women are learning more about financial markets than they ever had before, thanks to the internet and other methods, and it’s just putting more wealth into the hands of women. So, the reason this matters to our listeners is because, as women, when we get more money, we have more influence, and we have a stewardship of this money, and also it helps us retire personally, but it also changes the way that the market works in general. So, it is really important.
James Derrick 2:00
And do you think women are well prepared for this?
Amy Hansen 2:03
Yes, they are learning a lot more. The statistics show that women are not as confident as men in the financial world. They just don’t know as much, and they admit that, but they’re learning, and it shows that they’re gaining the experience they need, and they’re gaining the knowledge that they need. But I do think women have to seek it out.
James Derrick 2:22
I should rephrase this. Do you think men are ready for the responsibility that they have? I mean, because according to the paper you just wrote, the women are actually doing better than the men.
Amy Hansen 2:33
Yes, there are different things we can learn from each other, so a lot of things don’t matter about gender at all, right? There are some differences, though. So women tend to be better investors, you know, which is interesting. So women invest in companies that they believe in. They pay more attention to the type of companies they’re investing in. So if something is near and dear to their heart, they will make a point to invest in it, whereas men don’t as much. So that affects the world, right? It affects the companies that are getting our money. It’s a huge thing that women do better than men. The other thing is, is women are less risky, so they don’t invest as aggressively. This might seem like, with the stock market years that we’ve had lately, like the aggressive has won, but in the long run, women’s investments are more stable, and the companies, they usually are a better win in the end. And statistically, I think it’s 40 basis points better, so I mean there are women do have that skill set, but on the other hand, things we can learn in the way that men invest, I would say it’s one of the biggest things that I thought was shocking to learn. 28% of working women do not contribute anything to their 401(k) or any retirement account, compared to 18% of men. And a lot of companies offer matching, so if you’re not taking that 401(k) money, then you’re just leaving free retirement money on the table, and that is going to greatly affect women when they retire, because they won’t have as much, because they’re not investing. Another thing women can learn from men is to seek financial guidance. More men use financial advisors, and more men seek out guidance, and women don’t quite as much. I mean, statistics show you have more to show if you have guidance, if you have a retirement plan, and if you’ve put things into place. The last thing I’ll say, we kind of touched on this earlier, is men are more confident in their knowledge, and they seem to know more about financial markets, and so that’s something where women say they’re not as confident in even though their investing strategies seem to do a little bit better, they could definitely use a little bit more confidence in the investing world.
James Derrick 4:28
So, let me get this straight. The women are less confident, but they do better.
Amy Hansen 4:29
Right.
James Derrick 4:31
They take less risk, and they make more money.
Amy Hansen 4:35
Right. So, maybe they don’t need more confidence, they just need to keep doing what they’re doing. I don’t know.
James Derrick 4:40
Keep doing what you’re doing.
Amy Hansen 4:41
Right.
James Derrick 4:42
Don’t let your husbands mansplain everything.
James Derrick 4:44
Right.
James Derrick 4:44
You’ve got something to share, too.
James Derrick 4:46
If you feel like you want to invest in something, do that. I think it’s best.
James Derrick 4:48
As a financial professional. How do you see this playing out, you know, day in and day out?
Amy Hansen 4:55
Okay, so I will say that when we have couples come in to talk about their finances. Often the women won’t come, or she does come, she doesn’t have too much interest. This doesn’t happen with most everyone, but it definitely happens. So I would suggest that when you do go visit your financial professional, you go and you contribute your thoughts, and you make sure you know what’s going on with your accounts. Also, if your spouse does pass away, then you know what’s going on, and that information is so important. The other thing I would say, too, as a financial professional to women, is to grow your knowledge, gain confidence, feel good about what you know, and just continue to seek out information, and this can be done through the internet. You can Google things, you can look up how the markets are doing, things you want to invest in, things you’re interested in. There is so much material out there to learn from. And then the final thing I would add is just to contribute to those retirement accounts as early and as much as you are able.
James Derrick 5:58
That was the one thing the men were getting right.
Amy Hansen 5:59
Yeah.
James Derrick 6:00
So easy, easy for the women to participate in their 401(k)s. Get those matches as well. Amy, thank you so much for coming in today.
Amy Hansen 6:09
Thank you.
Shane Thomas 6:15
Thank you for joining the Power Up Wealth podcast. Smedley Financial is located at 102 S 200 E Ste 100 in Salt Lake City, UT 84111. Call us today at 800-748-4788. You can also find us on the web at Smedleyfinancial.com, Facebook, Instagram, Twitter, and LinkedIn. The views expressed are Smedley Financial’s and should not be construed directly or indirectly as an offer to buy or sell any securities or services mentioned herein. Investing is subject to risks, including loss of principal invested. Past performance is not a guarantee of future results. No strategy can assure a profit nor protect against loss. Please note that individual situations can vary. Therefore, the information should only be relied upon when coordinated with individual professional advice. Securities offered through Osaic Wealth, Inc., member FINRA/SIPC. Investment advisory services offered through Smedley Financial Services, Inc.® Osaic Wealth is separately owned, and other entities and/or marketing names, products, or services referenced here are independent of Osaic Wealth.
