Author Archives: divergent_admin

Pension Plans & the Troubling Lack of Growth

Underfunded pension plans — those with more liabilities than assets — are becoming a source of concern for many business owners and participants alike.

Financial experts have begun sounding the alarm about this problem, with some going so far as to predict a looming crisis — particularly in the public sector. These challenges also pose a potential risk to individual company pension plans. However, implementing responsible plan management strategies can go a long way toward helping prevent a shortfall.

A professional wealth management firm can provide invaluable financial planning assistance for both company owners and individual participants, to develop and implement strategies designed to minimize shortfalls and mitigate as much risk as possible.

pension plans lack of growth

How Does Pension Plan Underfunding Happen?

Companies fund pension plans in two primary ways: with employer contributions (in cash and company stock) and returns on invested contributions.

A variety of influences can lead to underfunding, most related to financial market trends like low interest rates. However, if employer stock contributions — as opposed to cash contributions — become excessive, the plan may become overly dependent on the company’s future growth.

If a company’s plan continues to be underfunded for a period of years, the IRS requires the employer to increase its contribution. This can place undue financial stress on the company, potentially pushing the firm into unstable territory.

Sometimes this phenomenon occurs simply due to assumptions of growth rate that don’t come to pass, often due to sluggish markets or unexpected market corrections.

How Does an Underfunded Pension Plan Affect You?

If you’re a business owner, an underfunded plan means you may not be able to make good on the distribution you’ve promised your participants. It also means you may have to pony up additional contributions per IRS rules.

If you’re a participant, this means you may not be able to rely on anticipated pension funds for retirement, potentially putting your financial planning and wealth management strategies in jeopardy.

In both cases, this is a scenario you want to avoid at all costs.

Addressing Potential Pension Plan Shortfalls

Addressing the growing problem of pension underfunding is a complex proposition. Professional wealth management firms assist institutions with pension plan development and management, and having a financial planner to manage your firm’s investments can help keep them on track.

For participants who are relying on having access to their pension funds when the time arrives, financial planning is perhaps even more important, to help address potential market uncertainties.

The Certified Financial Planners™ of Divergent Wealth Advisors help both individual and institutional clients plan for their financial futures. Our institutional investment management services help to protect and maximize your benefit plan. Our participant services and individual wealth management services are designed to provide peace of mind and impart the knowledge and skills you need to effectively plan for the future.

Contact Divergent Wealth Advisors today to learn more about our fee-based financial planning and management services, and to discuss specific concerns about your pension plan.

 

DISCLAIMER: It is important to note that this information is not meant to provide investment, tax, legal or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, investment, tax, legal or accounting advice. You should always consult your own financial planning, tax, legal and accounting advisors before engaging in any transaction.

Approved by Rick Collins, Divergent Wealth Advisors LLC, Chief Compliance Officer 8/10/2018

Does Your Financial Advisor Advocate ESG Investing?

Does Your Financial Advisor Advocate ESG Investing?

You may want your financial advisor to apply the principles of ESG investing in your portfolio.

Environmental, social and governance (ESG) investing principles — also known as sustainable or socially responsible investing — considers more than the monetary return of a particular investment. Advocates of this approach seek to make socially conscious investment choices for their portfolio.

Financial Advisor Advocate ESG Investing

No matter what your political or social views may be, ESG principles affect your portfolio in another important way: Today, corporate social responsibility can exert substantial influence on a given investment vehicle’s ROI.

What Is ESG Investing?

ESG investing means selecting (or avoiding) specific investment vehicles based on an evaluation of how socially responsible they are. Choosing investment vehicles based on ESG principles can be done by positive selection or exclusion.

For example, investors might choose a specific stock because the company actively embodies socially and environmentally responsible principles. Alternatively, many investors choose to actively exclude investments because they violate these principles.

Some of the most commonly targeted industries for exclusion today are firearms and ammunition manufacturers, industries that utilize fossil fuels and those that test on animals. Some investors choose to avoid purchasing the stock of companies whose leadership displays political values opposite their own as well as companies that fail to practice what they consider an acceptable level of corporate social responsibility.

How Do Financial Advisors Use ESG Investment Strategies?

For personal and institutional wealth management clients who express the desire to consider ESG factors in the placement of their funds, financial advisors use a variety of tools to evaluate stocks, funds and other investment vehicles.

Financial advisors may look to one of the many data sources now available for evaluating the sustainability of different investments.

For example, evaluating environmental practices may require looking at a company’s carbon emissivity. To evaluate social responsibility practices, advisors may consider labor management practices and other factors related to human capital. Governance issues concern how effective a firm is at managing itself as well as metrics such as executive compensation and shareholder rights.

Should You Consider ESG Principles for Your Investment Portfolio?

As more Americans become politically active and socially conscious, pressure is increasing on companies to be more responsible. Many investors who make ESG-based portfolio decisions do so because they want to make a positive social and environmental impact while reaping financial returns.

But by doing so, do these investors realize smaller returns on their investments?

Although that may have been the case in years past, just the opposite may be true today. Research indicates that more than 85 percent of millennials are interested in socially responsible investing. Across all age segments, that number is approaching 40 percent.

This means that companies are quickly coming to understand that they must implement corporate social responsibility practices if they want to continue to grow their value to investors. Likewise, as more investors reward ESG practices, companies are realizing that they can enjoy greater success by being socially and environmentally accountable.

Consequently, some ESG-based vehicles may allow you to practice socially responsible investing while also enjoying a hearty ROI.

At Divergent Wealth Advisors, our Certified Financial Planners™ respond to our clients’ individual needs and desires for how we manage their portfolios. If you aspire to be more socially responsible in your investments, we can assist you in identifying the best way to maximize your ROI accordingly. Contact us today to learn more, or to schedule a personalized consultation with one of our knowledgeable and experienced financial advisors.

DISCLAIMER: It is important to note that this information is not meant to provide investment, tax, legal or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, investment, tax, legal or accounting advice. You should always consult your own financial planning, tax, legal and accounting advisors before engaging in any transaction.

Approved by Rick Collins, Divergent Wealth Advisors LLC, Chief Compliance Officer 7/6/2018

Retirement Plan Management Strategies to Mitigate Risk

Sound retirement plan management strategies will help ensure that you limit the risk your company may face as the plan’s sponsor.

With qualified financial advisors to oversee your plan’s administration, you can identify, manage and head off as many potential problems as possible.

retirement plan management

Your Responsibility as Plan Sponsor

As an employer and the sponsor of your company’s retirement plan, you have an obligation to the plan’s participants to protect their assets.

Heeding these obligations will help you avoid legal perils that some firms have faced when participants challenged the sponsor’s governance and plan management strategies.

More important, taking steps to minimize risk will reinforce your commitment to your employees — past, present and future — and help ensure that your participants are as ready as possible for their retirement.

Evaluating Your Retirement Plan Management Risks

The most profound risks that accompany retirement benefits plan management include a low participation rate, a poor (or nonexistent) asset management strategy and a lack of effective governance.

As the plan sponsor, you must comply with all governing regulations. You must advise your participants clearly about the fees involved, but to also ensure that the fee structure approximates those of comparable funds.

You also have to consider the various market-related conditions that could affect your plan’s performance. Although you cannot foresee or control political, economic or other conditions that affect financial markets, you must ensure that your plan’s assets are allocated in a way that minimizes risk as much as possible.

Let a Certified Financial Planner™ Help You

One problem you may face is low participation in your firm’s retirement benefits plan.

If you’re in a situation in which your participant base consists primarily of your highly compensated employees, you could face challenges to your tax-qualified status. A plan management professional can help overcome these challenges by establishing effective communication with participants and — more important — employees who do not participate, to illustrate the importance of retirement readiness.

Likewise, an institutional wealth management advisor can help you develop, implement and monitor the management and governance of your company’s retirement plan.

The Certified Financial Planners™ of Divergent Wealth Advisors understand the importance of having an effective management strategy in place for your firm’s retirement benefits, overseen by a highly qualified institutional wealth and investment firm. Contact us today to learn more about our retirement plan management services.

DISCLAIMER: It is important to note that this information is not meant to provide investment, tax, legal or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, investment, tax, legal or accounting advice. You should always consult your own financial planning, tax, legal and accounting advisors before engaging in any transaction.

Approved by Rick Collins, Divergent Wealth Advisors LLC, Chief Compliance Officer 6/19/2018

Let an Investment Advisor Help You Plan for the Next Recession 

With the right investment advisor in your corner, you can potentially turn the next economic recession into a positive event for your portfolio — or at least minimize the potential damage.

Let an Investment Advisor Help You Plan for the Next Recession 

Economic analysts predict that the U.S. could experience another recession within two years. It’s not too soon to start thinking about this possibility and taking steps to protect your assets accordingly.

Experts Predict the Next U.S. Recession Will Arrive in mid-2020

The economic analysis experts of Moody’s Analytics predict that the next U.S. recession will strike in June of 2020.

The U.S. economic recovery from the Great Recession began in early 2010 and has persisted through 2017. After more than 105 months of expansion, a contraction now looms on the horizon, and according to many financial experts, may be unavoidable.

Some of the factors driving this prediction are political uncertainty, waning fiscal stimulus, increasing interest rates, dwindling demand, backfiring trade protectionism and a rapidly increasing national deficit.

Although it appears that we have two years to prepare, unexpected events could hasten the event. On the other hand, the U.S. government could also take action to forestall an economic crisis.

In short, no one really knows what will happen. And that’s why having an investment advisor to guide you can ensure you’re prepared, come what may.

Protecting Your Assets in Anticipation of Recession

Some of today’s investors have never suffered through the financial impact of recession. Most millennials, for example, weren’t old enough to have accumulated a portfolio during the Great Recession. However, they likely watched their parents lose some or all their accumulated wealth.

Consequently, most investors recognize the dangers that could strike at any time. But surprisingly few investors are taking steps to protect their wealth in advance of the next downturn.

When the economy is in growth mode, complacency can set in and investors can allow their expenses to gradually increase. When the economy tightens, they could find themselves without a job and no way to cover those expenses — as we saw so clearly illustrated in 2008 and 2009.

How an Investment Advisor Can Help

With the assistance of an investment advisor, you can begin financial planning that anticipates economic events and minimizes your exposure. This will help protect your accumulated wealth and keep you on track to achieve your financial goals.

The conservative approach suggests you should start managing your finances now as though a recession already began, minimizing your spending and increasing your savings and investment. Although that approach may be appropriate for some investors, it won’t be necessary for others.

The right approach for you will depend on — among other factors — your age, your financial goals, your asset distribution and your tolerance for risk. The important thing to remember is that every economic cycle is temporary, and fortunately, the experts believe that the next downturn will be neither as long nor as severe as the last one.

To learn more about how you can protect your assets and accumulated wealth, contact Divergent Wealth Advisors and schedule a consultation with one of our Certified Financial Planners™. No matter what happens with the economy, you should have a solid financial plan that you revisit and re-evaluate regularly. Contact us today to learn how an investment advisor can assist you in achieving your financial goals no matter when the next recession may strike.

DISCLAIMER: It is important to note that this information is not meant to provide investment, tax, legal or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, investment, tax, legal or accounting advice. You should always consult your own financial planning, tax, legal and accounting advisors before engaging in any transaction.

Approved by Rick Collins, Divergent Wealth Advisors LLC, Chief Compliance Officer 5/18/2018

How Safe Are Your Investment Assets?

When you think about the safety of your investment assets, you might think in terms of market volatility, high- versus low-risk investment vehicles or the possibility of your investments simply losing value.

How Safe Are Your Investment Assets?

But that’s not the only type of safety investors need to be most concerned with.

Depending on where your assets are held, they may or may not be insured against the failure of the banking institution or brokerage responsible for them.

Investment Assets Protected by the FDIC

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the U.S. government that protects funds deposited with banks and savings associations.

The FDIC insures deposit balances of up to $250,000 for checking and savings accounts, certificates of deposit and money market accounts, as long as the accounts are held with an FDIC member bank. Each depositor is covered for one of each type of account per insured bank.

Many investment opportunities fall under the protection of the FDIC.

Investment Assets Protected by the SIPC

The Securities Investor Protection Corporation (SIPC) insures cash and securities (stocks, bonds) held by troubled or insolvent SIPC member brokerage firms.

If the brokerage closes and your investment assets disappear, the SIPC steps in to recover them. If they cannot, SIPC will restore up to $500,000 in cash and securities (in like kind), with a $250,000 maximum protection for cash you may have had on deposit with the brokerage.

SIPC may help you recover more than these limits if they are able to locate and restore your missing assets from the defunct brokerage firm. They have no limit on how much they can restore. The coverage they provide applies to those assets that are untraceable or unrecoverable. SIPC has a strong track record, as fewer than 350 people have been unable to get the full value of their assets back, and most of those occurred prior to 1978 when the maximum benefit was $50,000.

Countless investment vehicles qualify for SIPC coverage. However, always verify with your wealth advisor that your investment assets will be protected.

Other Forms of Investment Asset Protection

When assets do not qualify for FDIC or SIPC protection, you may be covered by supplemental insurance provided by your investment advisor. This is another important reason you should consider carefully before selecting a financial planner or investment advisor.

When you work with a wealth management firm, you can rest assured that they have a fiduciary duty to put your financial interests above anyone else’s. Among their legal and ethical obligations to their clients, wealth advisors must act in good faith, serve your best interests, use professional skill and judgment in all dealings with you, and disclose all material facts.

Divergent Wealth Advisors is a Registered Investment Advisor (RIA) firm, which means we are registered with the Utah Division of Securities. All our wealth managers are Certified Financial Planners™, the gold standard of financial advisor credentials. Our investment strategies are designed to provide the strongest available asset protections, and we have access to programs insured by the FDIC and SIPC as well as supplemental insurance coverage.

Contact us today to schedule a consultation or interactive planning session to discuss strategies and protection for your investment assets.

DISCLAIMER: It is important to note that this information is not meant to provide investment, tax, legal or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, investment, tax, legal or accounting advice. You should always consult your own financial planning, tax, legal and accounting advisors before engaging in any transaction.

Approved by Rick Collins, Divergent Wealth Advisors LLC, Chief Compliance Officer 5/8/2018

Financial Planning for Early Retirement

With the right financial planning strategies, you can make early retirement a reality.

Retiring early poses some substantial challenges that can affect every aspect of your wealth management strategy. However, with the help of a Certified Financial Planner™, you can make this dream a reality without compromising your current or future financial security.

Financial Planning for Early Retirement

Two Significant Challenges of Early Retirement

No matter how close you are to achieving your financial goals for retirement — or how far — expediting the process poses two fundamental challenges.

First, taking an early retirement means you have less time to reach your financial goals. Second, the sooner you retire, the further you must stretch your financial resources.

Fortunately, a Certified Financial Planner™ (CFP) can help you determine the best strategies for overcoming these challenges.

How Will Early Retirement Affect Your Financial Planning?

If you want to achieve this important life goal, the bottom line is that you must adjust your portfolio to expedite the building of assets.

Expediting asset growth typically requires reallocating assets into investment vehicles that pose a higher risk. But as savvy investors know, you should take steps to minimize your risk the closer you get to retirement, rather than increase it.

To identify the best ways to balance these factors, and to ensure that your personal wealth management strategies align with your plans for retiring early, consider talking to a financial planner about your goals.

Finding a Financial Planner Who Can Help You Retire Early

Restructuring your financial plan to facilitate an early departure from the workforce doesn’t have to mean living a life of austerity or taking ill-advised risks with your investments.

Talking to the Certified Financial Planners™ at Divergent Wealth Advisors is a great way to get started. Our credentialed experts work with you to create an interactive financial model based on a personalized planning session rather than the usual DIY template questionnaire. Then, using this powerful modeling tool, we can explore a virtually limitless array of options to find the plan that works for you.

To make sure you stay on track, we will continue to work closely with you to monitor your progress and update your plan, based on shifting market conditions and any changes in your objectives.

The CFPs® of Divergent Wealth Advisors pride themselves on their smart, streamlined approach to wealth management. Let us put our experience to work for you, whatever your goals may be. Contact us today to discuss financial planning strategies for your early retirement.

DISCLAIMER: It is important to note that this information is not meant to provide investment, tax, legal or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, investment, tax, legal or accounting advice. You should always consult your own financial planning, tax, legal and accounting advisors before engaging in any transaction.

Approved by Rick Collins, Divergent Wealth Advisors LLC, Chief Compliance Officer 4/20/2018

Talking to Your Wealth Advisor About Market Volatility: 3 Tips

Does calling your wealth advisor move to the top of your to-do list during periods of volatility in the equity market?

Both individual and institutional investors can get heartburn (or worse) when the leading financial indicators move abruptly. Since the beginning of the year, we’ve seen some major swings, particularly in the equity market. But does this turbulence mean you need to modify your investment strategies?

Talking to Your Wealth Advisor About Market Volatility: 3 Tips

No. 1: Keep Calm & Trust Your Wealth Advisor in a Volatile Market

Don’t panic about day-to-day chaos in the equities market. Having a meltdown over a downward trend that lasts only a day or two doesn’t help your portfolio, but it can affect your health, your work and your family.

You can always pick up the phone and call your financial planner — or send an email or make an appointment to meet.

If your wealth advisor believes you have reason to worry, you’ll hear from them. But in the meantime, don’t hesitate to reach out for reassurance.

No. 2: Ask Your Wealth Advisor to Give Perspective to Market Volatility

Ups and downs in financial markets are a fact of life, but at what point should you consider the possibility of a serious downturn? That’s a question that your wealth advisor is best-equipped to handle.

Few financial professionals are as intimately familiar with market chaos as wealth managers and advisors. Leverage that knowledge and experience to gain perspective on what the volatility means to your portfolio.

Your financial advisor can show you trends in your asset returns through similar periods of volatility and help you see how they affected your goals.

No. 3: Work with Your Wealth Advisor to Make Necessary Changes to Your Financial Plan

A rapidly changing equity market does not automatically call for modifying your long-term financial plan or reallocating assets. But some trends may warrant making modifications to your financial planning strategies sooner rather than later.

Ask your financial advisor to review your portfolio and your short-, mid- and long-term goals. The closer you are to retirement, the more important it is to keep a close eye on your level of risk. If a substantial portion of your portfolio is in the equity markets, ask your Certified Financial Planner™ what allocation changes you should consider to mitigate unwanted risk.

The Certified Financial Planners™ of Divergent Wealth Advisors assist both personal and institutional wealth management services for our Utah clients. Don’t panic about market volatility, but don’t ignore it either. Contact our office today to schedule an appointment to discuss today’s topsy-turvy equity markets with your wealth advisor.

DISCLAIMER: It is important to note that this information is not meant to provide investment, tax, legal or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, investment, tax, legal or accounting advice. You should always consult your own financial planning, tax, legal and accounting advisors before engaging in any transaction.

Approved by Rick Collins, Divergent Wealth Advisors LLC, Chief Compliance Officer 4/16/2018

See Your Financial Advisor Before Getting Married, Not After

Many couples wait to visit a financial advisor until after the wedding.

In many cases, they had too much on their minds already with planning a wedding and honeymoon. However, many newlyweds believe that until they tie the knot, they have nothing of substance to discuss regarding their finances.

But they couldn’t be more wrong.

see your financial advisor before getting married, not after

In fact, Certified Financial Planners™ (CFP) strongly recommend that couples seek wealth management advice long before they walk down the aisle.

How Does Getting Married Affect Financial Planning Strategies?

Today, couples are getting married later in life, often well after they have established a career and assets — not to mention debt. This means that each partner will bring assets and liabilities to the mix.

When you get married, your monetary needs and goals change. You will have to decide how to handle existing debts and consider whether (and to what extent) you want to combine your financial assets and instruments.

At this early stage of your relationship, these topics may not seem important. In fact, you may not be totally comfortable discussing them yet with your future mate. But as a financial planner will tell you, this is exactly when you should address them. If you wait, conflicts and unexpected surprises could cast a shadow on your happiness.

When Should You & Your Betrothed Meet with a Financial Advisor?

Ideally, you both should talk with your financial advisor when you first make the decision to forge a life and future together. You should also consider seeing a financial planner if you move in together, even if you don’t plan to get married right away.

If this aggressive timeline sounds reactionary, consider this: Years of research prove that financial issues are the primary source of marital conflict. So the sooner you can get a financial plan worked out, the less the chances that this important topic will cause strife.

And if you would like to save money to finance your wedding or honeymoon, or if you’d like to buy a home together sooner rather than later, your CFP® can help you achieve these important life goals.

What Should You Discuss with Your Financial Advisor?

Before you meet with a CFP®, take a little time to reflect and write down your questions and concerns. Your financial advisor will review your profile, so you should also gather retirement account and stock portfolio statements and other records that document your assets before your appointment.

Some important topics to cover are the implications of merging finances and how you plan to handle the assets and liabilities that each of you brings to the marriage. Your CFP will help you establish a financial plan for your future together, to help you accomplish goals such as saving for retirement and starting a college fund for your children.

Your financial advisor can also assist you with estate planning (it’s never too early) and help you evaluate your need for insurance, wealth transfer, etc.

The personal wealth management specialists at Divergent Wealth Advisors understand how important it is to get your relationship off on the right financial footing. We strive to make financial planning as simple and hassle-free as possible while helping to ensure you achieve all your life goals. Contact us today to schedule a consultation with a financial advisor.

DISCLAIMER: It is important to note that this information is not meant to provide investment, tax, legal or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, investment, tax, legal or accounting advice. You should always consult your own financial planning, tax, legal and accounting advisors before engaging in any transaction.

Approved by Rick Collins, Divergent Wealth Advisors LLC, Chief Compliance Officer 3/28/2018

Institutional Investment Management & Tax Reform

Institutional investment management has undergone some changes with the recent reform of the U.S. tax code.

The organizational investment management and portfolio asset allocation strategies in place before the landmark 2017 tax bill’s passage may no longer be appropriate today. As a result, financial planning experts recommend that business owners revisit their benefit-planning strategies.

institutional investment management & tax reform

It is also imperative that your employees take the time to identify how the Tax Cuts and Jobs Act may affect their individual financial-planning strategies.

Will Tax Reform Affect Your Investment Management Strategies?

Fortunately, for most businesses, the sweeping tax reform bill did not significantly affect employee benefit plans. However, it is important to consult with a financial planning professional to determine what changes, if any, you should make to your retirement plan.

As for your overall investment management strategy, this is a good time to review your portfolio’s asset allocation and make any recommended changes. Some provisions of the tax reform may affect deferred compensation plans and maximum allowable tax deductions for pass-through entities. This is especially important if you are a small-business owner.

Will the Tax Bill Affect Your Employees’ Retirement Income Planning?

Some market watchdogs predicted that the tax bill would compel the conversion of defined-contribution plans (i.e., IRAs and 401(k) plans) to a Roth IRA-type structure — which the media termed “Rothification” — in a misguided attempt to raise government revenue.

Had this been the case, income would be subject to taxation prior to funding the investment plan. Fortunately, that provision did not end up in the final version of the bill.

Consequently, the tax bill does not appear to affect individual retirement planning significantly for most Americans. Nevertheless, we recommend that individual employees talk with their financial advisor about how they may be affected.

Discuss Tax Reform with Your Investment Management Specialist

At Divergent Wealth Advisors, our Certified Financial Planners™ understand your potential concerns regarding the tax reform legislation and how it may affect your company’s benefit plan.

This is also a good time to talk with us about potential upcoming volatility in the financial markets, and how it may affect your personal and institutional investment portfolios. Taking proactive steps today can help protect your investments if any significant market losses occur.

For your valued employees, our participant services are designed to provide the guidance they need to prepare for retiring and managing their personal wealth.

Contact the personal and institutional wealth management specialists at Divergent Wealth Advisors today to learn more about our unique approach to financial planning. Our highly personalized services are tailored to the unique needs of each client while keeping investment costs as low as possible. Contact us today to schedule a consultation with an institutional investment management specialist.

DISCLAIMER: It is important to note that this information is not meant to provide investment, tax, legal or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, investment, tax, legal or accounting advice. You should always consult your own financial planning, tax, legal and accounting advisors before engaging in any transaction.

Approved by Rick Collins, Divergent Wealth Advisors LLC, Chief Compliance Officer 3/19/2018

Financial Advising for the Female Investor

Financial advising has long been a male-dominated realm, as many investors (and advisors) have historically been men.

Today, however, women have as much need for financial planning and personal wealth management as their male counterparts — often more. And as the number of Utah women-owned businesses grows, those needs often extend into the realm of institutional wealth management.

Financial Advising for the Female INvestor

Unfortunately, thanks to a lingering perception that financial planners do not understand or cater to the needs of female investors, women may hesitate to seek out a Certified Financial Planner™, even when they have a pressing need for their services.

The Financial Planning Needs of Women Investors

Although a significant wage disparity still exists between men and women in the workforce, research shows that women control more than half the personal wealth in the United States — 51 percent, in fact. Women also save more money than men and are more likely to participate in their employer’s 401(k) programs. Perhaps the most intriguing statistic of all is that women’s investments outperform those of their male counterparts.

Despite these compelling statistics, women tend to underestimate their investment capabilities.

Logic might suggest that female investors would turn to a wealth management expert for help. Unfortunately, many women lack trust in the investment and estate-planning industry. Some women saw their investment portfolio — or that of their parents — dwindle to nothing during the economic upheaval of the late 1990s or during the real estate crisis in 2008.

We recognize that, today, women need to find financial planning solutions they can trust.

How to Find the Best Financial Advising Services for You

Many of our clients express their frustration about finding wealth managers who understand their needs. Some financial planners may wrongly assume that female clients lack the knowledge and experience that male clients have.

In truth, every client seeks financial advising for their own unique reasons, and every client — no matter their gender — comes to the process with goals and objectives for their future.

Financial Advising Committed to Closing the Gender Gap

The Divergent Wealth Advisors team is committed to helping all our clients identify and pursue their financial goals. Our Certified Financial Planners™ (CFP®) understand that your portfolio should be as unique as you are, and tailored to meet your goals in the short-, mid- and long-term.

We know that money is power for all investors, and we will help you chart a course for the secure future you envision for yourself and your family. That’s why we offer a variety of services, including estate planning, investment analysis, portfolio management and risk analysis. All our advisors carry the CFP® designation, and our uniquely affordable investment services are always fee-based rather than commission-based.

Contact Divergent Wealth Advisors today to learn more about how our innovative approach to financial advising can help you navigate the unique challenges that face women investors.

DISCLAIMER: It is important to note that this information is not meant to provide investment, tax, legal or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, investment, tax, legal or accounting advice. You should always consult your own financial planning, tax, legal and accounting advisors before engaging in any transaction.

Approved by Rick Collins, Divergent Wealth Advisors LLC, Chief Compliance Officer 2/19/2018