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Harnessing the economic power and contribution of women
By Margaret Preston, SVP, TD Wealth
As we look around the globe and advise clients in North America, it is clear that women’s wealth and incomes are growing faster than ever before. The opportunities for women to achieve financial strength and independence are improving due to demographic, economic, social and technological changes. This increasing economic power and contribution has become known as "Womenomics."
Currently, women control over half of the wealth in the United States, and are projected to control over two-thirds by 2020.1 Consider these statistics regarding women and wealth:
Women account for nearly half (47%) of the workforce2
Over the next five years, working women will drive an increase in earned income from $12.5 trillion to $18.5 trillion3
Women earn the majority of college degrees – associates, bachelor's, master's or doctoral4
Women are majority owners of 38% of businesses, up from 29% in 2007, employing over nine million people and generating over $1.6 trillion in revenues5
Women control 51%, or $14 trillion, of the personal wealth in the U.S., and are expected to control $22 trillion by 20206
In channeling this economic power, women are taking a unique approach to investing and planning. In general, women have a longer perspective than men, prioritizing achievement of financial goals ahead of quarterly investment performance. Financial planning becomes life planning as women incorporate caring for children and elderly parents, education and philanthropic intent into their assessments of having enough money in retirement.
Women are also driving a new way of investing, as they often focus on the social, economic and environmental impact of their investing. The industry has evolved to meet this need, designing active portfolios with specific socially responsible outcomes while providing competitive investment returns. While women have led this evolution, research shows that impact investing is increasingly important to millennials and the ultra-wealthy as well.
At TD Wealth, we recognize that each client has a distinct set of objectives and follows a unique path to achieve their personal definition of financial success. Embracing and understanding the impact of "Womenomics" as we work with our female clients is one way that TD Wealth recognizes these distinct objectives to help women attain their goals.
Related investing and financial information
This article is based on information available in February 2019. It is for general informational purposes only. It is not intended to provide specific financial, investment, tax, legal, accounting, or other advice and should not be acted or relied upon without the advice of a professional advisor. A professional advisor will recommend action based on your personal circumstances and the most recent information available.
1"Financial Services: The Industry Women Love to Hate," Forbes.com, March 18, 2011. "Women, Money, Power," Time magazine, March 26, 2013. TD Ameritrade.
2Bureau of Labor Statistics, "Table 3: Employment Status of the Civilian Noninstitutional Population by Age, Sex, and Race," Current Population Survey (2016).
3"Women and Investing," August 2014, Investment News.
4U.S. Department of Education, Gender Equity in Education – A Data Snapshot, June 2012.
5American Express – The 2016 Sixth Annual State of Women-Owned Businesses Report (http://www.womenable.com/content/userfiles/2016_State_of_Women-Owned_Businesses_Executive_Report.pdf)
6BMO Wealth Institute, Financial Concerns of Women, US Edition, March 2015.
TD Bank, TD PCW, their affiliates, and TD Wealth employees do not provide legal or tax advice. Any tax advice in this material is not intended or written to be used, and cannot be used, by any recipient for the avoidance of penalties under federal tax laws or for promotion, marketing or recommendation to another party any transaction or matter described in this material. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.