SunTrust Advisors Outline Financial Road Map for Women Clients in Columbus Area
Wednesday, July 19th, 2017
Investment professionals from SunTrust Bank recently held a luncheon with women in Columbus, GA to discuss their financial goals. According to Sabrina Bowens-Richard, CFA, director, portfolio and market strategy at SunTrust Advisory Services, the event was part of a quarterly series hosted by SunTrust to help individuals and businesses increase their financial confidence. The second-quarter event focused on providing resources and tools to help women feel more confident and in control of their financial future.
ECONOMIC OVERVIEW
Bowens-Richard set the stage for attendees, “The key takeaway is that we’re at a crossroads in the investment markets. We’re anticipating a period of elevated global market uncertainty during a time when growth around the globe still looks reasonably healthy.”
The economic road signs can be interpreted as both risky and favorable, and Bowens-Richard encouraged investors to maintain diversified portfolios to be prepared for bumps along the road over the next couple of years. She cautioned investors not to make choices based off what’s being written in news headlines, but rather emphasized the need for clients to “stay anchored toward their goals, make sure they have a disciplined process, and pay attention to the bigger picture.”
While geopolitical risks may create volatility and uncertainty in the market, Bowens-Richard said SunTrust believes equities, although fairly extended relative to their history, are a wise choice. “Stay positive on equities, but be mindful of risks,” she added. “Earnings are improving, so investors will still be optimistic about stocks and that will continue to support market valuations. On the other hand, the market cycle is rather mature, and we have not seen a major pullback in stocks like we typically would in a cycle. Also, with the Fed raising interest rates, it could slow things down some and put some pressure on bond prices.” She advised that investors be prepared for widening outcomes.
WOMEN AND WEALTH
This event was targeted specifically to women who, Bowen-Richards noted, control 51 percent of wealth in the U.S., some $11 trillion, and by 2020 that percentage will increase to two-thirds. In what some perceive to be “traditional households,” women have not managed the family’s finances. But, shifting demographic trends – both in terms of women’s role in the workforce and longevity – are changing those historical norms. In fact, research has shown that 90 percent of women will be solely responsible for their financial well-being at some point in their lives.
Today, women are graduating from college and earning advanced degrees at a higher rate than men. Women also hold 52 percent of all professional and managerial jobs in the U.S. While wage inequality is still a challenge many women face, the overall trends point to women continuing to control a greater percentage of wealth.
Even though women may have more control of wealth, they still have financial concerns. Sixty percent of women fear they will run out of money during retirement; a woman retiring today can expect lifetime out-of-pocket medical expenses to exceed $200,000. Those stark realities point to the importance of planning and preparing for retirement, as well as having the information to make confident financial decisions.
INVESTMENT STRATEGY AND TOOLS
Mark Hudson, CFP, senior vice president and client advisor with SunTrust Private Wealth Management, finds events like these to be extremely helpful for women who may not have been engaged with finances previously.
Information is critical to help individuals achieve financial confidence, but Hudson also believes advisors play an important role in helping their clients along the critical milestones in their life. He pointed out that “nothing is guaranteed, but a lot of times clients want to be reassured that the decisions they are making are good ones in the long run.”
According to Hudson, the technical market information provided by Bowens-Richard helps provide investors a better understanding of the “why and wherefore” of his strategic advice. That allows Hudson to work with his clients to develop a disciplined approach with a holistic financial plan to meet their long-term goals, as opposed to chasing daily headlines.
To help build strong relationships, SunTrust advisors place a lot of emphasis on their financial planning platform called SummitView®. Hudson describes the platform as “a single portal to view your total financial picture. SunTrust has brought together two of the industry’s financial planning solutions to aggregate a client’s accounts, develop a goals-based plan and stress-test their plans against a variety of factors.”
Clients integrate financial information in one place with the ability to test scenarios that can impact their financial plans. With instant access to market data refreshed daily, investors and their advisors can use the tool to evaluate the implications of market fluctuations, spending decisions and life events, such as greater health care spending, on their financial goals.
Hudson added, “We align a client’s goals with their investments. SummitView gives our clients real-time access to their financial information so they can track their goals and know that they’re on target to achieve them.”
“A lot of clients are driven toward investment performance, and although that’s important, many clients today seem to be more focused on achieving their goals. By focusing our clients on planning, we are able to help remove their financial stress and help them make confident financial decisions so they can enjoy the moments in life that matter.”
