Why Aren’t There More Women in Financial Planning? Ep #83

There's plenty of evidence around the lack of women financial advisors, but not enough discussion around the why. So we've invited Allison Berger and Grace Kvantas back on the show this week to discuss 6 challenges that prevent women from becoming financial advisors. As we shed light on these topics, we share ways we are fighting against these stigmas. One of the most recent is welcoming Grace as the latest partner of Financial Symmetry. Listen to this episode to hear why there aren’t many women in financial planning but also why that should change.

Why did Grace become a financial advisor?

Grace is a rarity among women in the field. She knew that she wanted to become a financial advisor at the age of 15. Her dad was a CFP and it was at that young age that she realized that she was taught money lessons at home that many others never received. She wanted to help others learn what her dad had taught her. In college, she learned so much more about finance but she still didn’t understand the depth of what one learns as a CFP. It was only on the job that she began to understand all that a financial advisor really does. Listen to this episode to hear about Grace’s journey to becoming a CFP.

What does it take to become a CFP?

Many people don’t know the difference between a financial planner and a CFP. The CFP designation is the standard of excellence among financial planners. Becoming a CFP takes a bit of work. You must have a bachelor’s degree and take the coursework first prior to taking the CFP exam. Candidates also need to have 3 years of qualifying experience or 2 years working directly with CFP professionals. After obtaining the CFP designation, Certified Financial Planners must maintain continuing education.

Why is financial planning a great field for women?

Now is a fantastic time to become a financial advisor. The average age of financial planners is over 50 and ⅓ of advisors are projected to retire within the next 10 years. Many people think that this career path is very math heavy but its actually more about building relationships with clients. The career field is becoming less about buying stocks and selling life insurance and becoming more about the holistic aspect of financial planning. Financial advisors look at spending patterns, set goals, and help with legacy planning. 72% of women who pursue a CFP have career satisfaction.

Why aren’t more women in financial planning? You can’t be what you can’t see. Financial planning is not at the top of many women’s mind as a career path. Grace and Allison are happy to raise awareness to help other’s find this path. There are misperceptions about the work. Most think that this career path very math heavy. The CFP exam and coursework are heavy in math and so is the beginning of the career. But the farther you go along in the career you realize its more about people and relationships and less about math. Women’s own behaviors may be holding them back. Women may not feel as comfortable taking as much risk as men. There are many factors that lead women not to take risks in their careers. Gender discrimination and bias exist in the field. Unfortunately, there is still discrimination. Both Allison and Grace are sometimes asked if they are someone’s wife or secretary. The good old boys' network is still alive and well in financial planning. There is a misconception that there is a lack of work/life balance. Actually, financial planning is a flexible career path. Like any career, you must work more in the beginning, but there is a lot of flexibility as you advance. There are not enough female role models. Grace and Allison are working to change that. They note that the women that are in the field are really helpful and encouraging. Outline of This Episode [2:27] How did Grace become a financial advisor? [6:12] What are some things that prevent women from becoming financial planners [8:25] What do you need to do to become a CFP? [13:44] Are women more risk averse? [18:52] Gender discrimination exists [22:57] Work/life balance is a possibility Resources & People Mentioned WIN CFP - The CFP Board’s women’s initiative Connect with Grace Kvantas and Allison Berger Connect With Chad and Mike https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh@TeamFSINC Follow Financial Symmetry on Facebook Subscribe To This Podcast

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