Over the past three years I’ve spent time with financial advisers discussing their wealth transfer strategies and how these impact their businesses. What has become apparent is that perhaps instead of wealth transfer we should refer to wealth retention, because in addition to helping families to understand how wealth will move across the generations, the challenge can be retaining that wealth within an adviser business.
Without family engagement and a connection to the next generation, advisers might find that they are managing a dying business. According to research, while 76% of those inheriting wealth indicate that they want to speak to an adviser when they inherit, 65% of inheritors will move from their parent’s adviser at the point of transfer.[1]
If this depletion of assets from a business takes place at the point when an adviser is trying to maximise the business value for a sale, then it’s not a great situation. Even if we don’t own the business we all want to work for thriving and not dying businesses and protect the income stream.
However, many commentators including myself may have missed a vital point – the influence of women!
Consider the following:
Maybe we have an issue and why is this happening?
In order to explore this further, at Schroders we engaged Dr Eliza Filby, a historian of generations who advises on demographics and societal change, to undertake some research. She interviewed a representative mix of high net-worth women: widows, singletons, divorced, married and remarried. They talked about their attitudes towards money and investment and shared their stories and experiences with financial advisers. Eliza also spoke to financial advisers to get their views.
Our full report on female clients and the transfer of wealth can be downloaded here but Eliza’s key points were as follows:
Building strong relationships with both partners in a couple through understanding their individual needs and matching them to a tailored service offering gives you the best chance of keeping assets within your business when they transfer from one partner to the other.
Click here to download a copy of ‘Female clients and the transfer of wealth’ report.
To find out how Schroders can support you, visit our website, contact your usual Schroders’ representative or call our Business Development Desk on 0207 658 3894.
Notes
[1] Centre for Economics and Business Research (CEBR), 2020.
[2] Centre for Economics and Business Research (CEBR), 2020.
[3] Taking the reins: female clients and the transfer of wealth, Dr Eliza Filby, 2021
[4] Taking the reins: female clients and the transfer of wealth, Dr Eliza Filby, 2021
[5] Taking the reins: female clients and the transfer of wealth, Dr Eliza Filby, 2021
[6] Taking the reins: female clients and the transfer of wealth, Dr Eliza Filby, 2021
About the author
Gillian Hepburn, UK Intermediary Solutions Director, Schroders
Gillian has over 30 years' experience in financial services. Prior to joining Schroders, she had an extensive career at Standard Life followed by consultancy positions with a range of platform providers, asset managers and financial advisers. She also founded DISCUS, a business which provided research, insight and educational content for financial advisers about the outsourced investment market and spent time as Head of Strategic Partnerships at the Embark Group. Gillian is responsible for outsourced investment solutions for the UK Intermediary market including model portfolios on platforms and multi-asset funds.
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