The $40T Shift: How Women are Reshaping the Wealth Equation

As women control an increasing share of global wealth, $40 trillion is expected to transfer to women over the next two decades, the demand for financial guidance that truly understands their unique needs and perspectives has never been greater.

From pioneering wealth managers like Karen McDonald at Morgan Stanley to innovative fintech leaders like Sallie Krawcheck of Ellevest, female finance experts are transforming how women approach investing, retirement planning, and wealth building through personalized, empathetic guidance that addresses everything from career transitions to intergenerational wealth transfer.

Suze Orman and Traditional Media

The landscape of personal finance media was forever changed when Suze Orman brought her no-nonsense approach to CNBC, hosting “The Suze Orman Show” for 13 years and establishing herself as America’s most recognizable financial authority. Her career began at Merrill Lynch as a stockbroker, but it was her ability to translate complex financial concepts into accessible advice that made her a household name, particularly among women seeking straightforward guidance on money management.

Through numerous bestselling books and her television platform, Orman pioneered the concept of financial empowerment specifically tailored to women’s needs and challenges. Her direct communication style and focus on building financial confidence helped millions of viewers, especially women, overcome intimidation around investing and take control of their financial futures, laying the groundwork for today’s generation of female-focused financial experts.

Wall Street Leadership

At the highest levels of Wall Street and institutional finance, women are breaking through traditional barriers to lead some of the world’s most influential investment firms. Mary Callahan Erdoes serves as CEO of Asset & Wealth Management at JPMorgan Chase, while Abigail Johnson holds the positions of chair and CEO at Fidelity Investments, and Jenny Johnson leads Franklin Templeton as president and CEO. These executives oversee trillions in assets and have become powerful advocates for increasing women’s participation in both financial leadership and investing.

Righting The Ship With Representation

Their influence extends beyond corporate boardrooms into policy and industry transformation. Martina Cheung, currently president of S&P Global Ratings, is set to become president and CEO of S&P Global in November, joining other new additions to finance leadership like Christina Minnis at Goldman Sachs and Kourtney Gibson at TIAA. These leaders are not only managing massive portfolios but actively working to address the historical underrepresentation of women in finance, where only 35% of financial advisors were women as of 2022.

Digital Investment Platforms

Digital platforms are revolutionizing how women access investment advice and build wealth, with specialized services designed to address their unique financial needs. Ellevest, created by former Wall Street executive Sallie Krawcheck, represents a breakthrough in this space as a digital investment platform built specifically by and for women, offering personalized portfolios and educational resources that account for women’s longer lifespans, career gaps, and different earning patterns. The platform emerged from recognition that traditional investment tools often fail to serve women’s distinct financial journeys effectively.

The Big Investment Houses Are Paying Attention

Major financial institutions are also adapting their digital offerings to better serve female investors, who now control 51% of personal wealth in the U.S. Charles Schwab recently surveyed 1,200 women to understand their investing preferences, finding that 91% feel empowered by managing their household’s investments, while 85% wish they had started investing earlier. These insights are driving the development of more tailored digital experiences, with firms like BlackRock noting that over the next two decades, $40 trillion will transfer to widows and $47 trillion will move to women intergenerationally, creating unprecedented opportunities for platforms that can effectively serve this growing demographic.

Educational Content Creators

Beyond traditional Wall Street and digital platforms, a new generation of content creators is making financial education accessible to women through engaging online communities and practical resources. Bola Sokunbi has built Clever Girl Finance into one of the most influential personal finance education platforms for millennial women and women of color, offering actionable advice on investing, budgeting, and wealth building through books, courses, and community engagement. Her approach focuses on breaking down complex financial concepts into digestible, culturally relevant content that resonates with diverse audiences.

Free Education and Professional Networking

Organizations like Savvy Ladies provide free financial education and professional networking support specifically designed to empower women to take control of their finances. Meanwhile, Girls Who Invest works to transform the investment management industry by attracting and advancing women investors through educational programs and mentorship. These educational initiatives address a critical gap in financial literacy, with studies showing that women often prefer collaborative communication and interactive learning environments when discussing financial topics, making these specialized resources particularly effective for building confidence and knowledge.

Young Women Investment Basics

Young women entering the investment world should prioritize employer-sponsored retirement plans as their starting point, particularly taking full advantage of any 401(k) matching contributions available to them. Financial experts recommend beginning with either a target date fund or a Roth IRA, both requiring minimal knowledge to open and offering tax advantages that compound over time. Traditional firms like Charles Schwab and Vanguard provide solid foundations for beginners, while newer platforms such as Acorns allow women to start investing with small amounts of money, making the barrier to entry remarkably low.

Key Investment Vehicles for Young Women

The key investment vehicles young women should consider include:

• Robo-advisors for hands-off, low-cost portfolio management based on personal goals and risk tolerance
• Index funds and ETFs that provide instant diversification across multiple stocks and sectors
• Mutual funds offering professional management and high liquidity for those with limited time to monitor markets
• Stock trading apps like Robinhood or SoFi Invest for those willing to take on additional risk with extra cash

Research shows that 40% of Gen Z women would feel more motivated to start investing if they had clear steps or guidance to begin, yet many delay due to perceived complexity or insufficient income. However, experts emphasize that waiting is counterproductive, women should start setting aside money for investments as early as their first on-campus job, as time in the market significantly outweighs timing the market. The changing dynamics of women’s financial independence, including later marriages and higher earning potential, make early investment habits particularly crucial for building long-term wealth.

Future of Women Investing

The transformation of wealth management around women’s needs represents more than a business opportunity, it’s a fundamental shift toward more effective investment strategies and better financial outcomes. Women’s distinct approach to investing, characterized by longer-term thinking, thorough research, and realistic self-assessment, often leads to superior returns compared to their male counterparts.

As women increasingly control household financial decisions and demonstrate growing confidence in their investment abilities, with financial confidence among US women under 50 jumping from 48% to 61% between 2018 and 2023, the industry is responding with tailored solutions that recognize these strengths.

The Future Is Female

The convergence of female leadership on Wall Street, innovative digital platforms, and educational content creators has created an ecosystem where women can access guidance that truly understands their unique financial journeys. With $30 trillion in assets expected to shift into women’s hands over the next three to five years, and evidence showing that businesses founded by women deliver more than twice the revenue per dollar invested compared to those founded by men, the future of finance is increasingly female.

This evolution benefits not just women investors, but the entire financial services industry, as firms that effectively serve diverse client bases and leverage women’s investment strengths position themselves to capture the most significant wealth transfer in modern history.

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