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Paradigm Shift: The Rise of Women’s Earning Power

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Rise of Women's Earning Power: Female Breadwinners

This infographic is available as a poster.

Paradigm Shift: The Rise of Women’s Earning Power

In 2019, women owned almost 33% of global wealth.

Looking at North America alone, women control $35 trillion in assets. These assets are set to grow by a 6.9% compound annual growth rate (CAGR) until 2023, after COVID-19 effects are accounted for. Notably, the acceleration of female breadwinners is amplifying this trend.

The above infographic from New York Life Investments examines four archetypes of female breadwinners, highlighting their household dynamic and financial priorities as the wealth landscape continues to shift.

A Room of One’s Own

Today, one segment of women makes up nearly 25% of households with over $250K of investable assets: female married breadwinners.

They remain a blind spot across the wealth management profession, but provide a vital opportunity for wealth management professionals.

From a high-level perspective, these primary earners describe themselves as independent and hard working, according to a study by RTi Research. While 75% work with an advisor, only 41% feel knowledgeable about their finances. At the same time, 82% of the primary earners are college graduates, while advancing their financial education remains a priority.

Below is a deep dive on the spectrum of female married breadwinner households, outlining their key mindsets, behaviors, and outlooks.

The Four Archetypes

Female breadwinner households can be broken down into four broad archetypes.

1. We’re In This Together

Accounting for 39% of respondent households, this archetype reflects a collaborative dynamic where both partners appreciate each other and are aligned on future financial objectives.

Household Dynamic

  1. Works as a team with their partner
  2. Partners are proud and appreciative of one other
  3. Typically have a positive outlook

Defining Opinions and Behaviors

  • My spouse supports me: 80%
  • My spouse appreciates my hard work: 74%
  • We are aligned on future financial goals: 66%
  • We live in a “normal” household: 59%

2. I Got It

This archetype comprised 25% of respondents. Typically, the primary earner illustrated pride and enjoyment in this role. At the same time, they felt supported by their partners.

Household Dynamic

  1. Comfortable and experienced in this position
  2. Spouse is supportive and comfortable with a secondary role

Defining Opinions and Behaviors

  • Primary earner role is a source of pride: 43%
  • Primary earner role is fulfilling: 41%
  • As the primary earner I am in control: 33%
  • Always been the primary earner: 61%

3. A Little Help Please

With 26% of respondents, this archetype was an outlier, mainly as they did not feel a positive impact from being a breadwinner. These women carry a larger burden on their shoulders and would prefer if their partner would take on more household tasks.

Household Dynamic

  1. Feel that everything relies on them, want their partner to contribute more
  2. Would even prefer if roles were reversed

Defining Opinions and Behavior

  • Everything depends on me: 42%
  • Want spouse to take on more responsibilities: 29%
  • Negative impact as primary breadwinner: 97%
  • Prefer if spouse was the primary earner: 59%

4. I’ve Got It From Here

This final archetype accounted for 33% of households. These were characterized by the women taking on a primary earner role later in life, while feeling proud in the role as the highest earner.

Household Dynamic

  1. Typically new to primary earner role
  2. Feels supported by their spouse, and long-term financial goals are aligned
  3. Appreciates the hard work partner has done in the past

Defining Opinions and Behaviors

  • My spouse supports me: 59%
  • My spouse appreciates my hard work: 51%
  • Became primary earner later in life: 100%
  • Feels strong: 52%

Getting a better sense of these archetypes can help advisors personalize their approaches—and harness a clearer appreciation of their clients financial goals.

On the Horizon

Of course, female married breadwinners have a diverse range of financial goals. These investment goals and objectives typically vary across different life stages, but they also share many similarities.

For primary earners 60 and over, the most important investment goals were a comfortable lifestyle and protecting their future. On the other hand, breadwinners between the ages of 40-59 were most concerned with saving for retirement. Finally, the key investment goals of those aged 25-39 also surrounded a comfortable lifestyle, saving for children’s education, and saving for retirement.

As women amass greater wealth at faster speeds, understanding how to manage it well becomes increasingly crucial.

A New Wealth Frontier

It comes as no surprise that the primary female earners who work with advisors have better views on their finances.

As a result, opportunity knocks. Half of female breadwinners see their financial advisor as a business partner, and 33% see them as a necessity. At the same time, 66% of female primary earners want an advisor that will make them the most money.

As this powerful economic force continues to accelerate, it could create a watershed decade ahead for both women’s wealth and the wealth management field.

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Visualized: Three Investment Opportunities for the Future

Here are three investment opportunities to consider as the U.S. government proposes a record $6 trillion in budget initiatives.

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Investment Opportunities

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Visualized: Three Investment Opportunities for the Future

With proposed government spending initiatives set to reach $6 trillion, the U.S. could be entering a new era of economic potential.

Sweeping measures have been proposed to support the economy—reaching levels of sustained spending not seen since WWII. These include a $2.3 trillion American Jobs Plan and a $1.9 trillion American Rescue Plan.

But how will this affect financial markets, and what investment opportunities does this present? As we look ahead, this infographic from New York Life Investments explores three potential areas of growth.

Three Investment Opportunities

Here are key trends that could shape the future—creating new opportunities for investors—as government spending increases:

1. The Strategic Role of Debt

In 2021, corporate debt sits at roughly 50% of U.S. GDP.

Importantly, COVID-19 relief packages helped offset a wave of defaults. Yet at the same time, a record $1.7 trillion in corporate debt was issued by nonfinancial companies in 2020—$600 billion higher than the previous peak. This rise in debt may offer potential investment opportunities.

In a low-interest rate environment, debt is relatively less expensive for companies to hold than during periods of high interest rates. This means they can invest in their business, make acquisitions, and gain greater market share.

Companies with investment-grade debt, which have stronger ratings from credit agencies, will likely be better positioned to make strategic business moves and mitigate the potential of future default.

2. Digital Infrastructure

There are several core components that underpin technology today:

Semiconductor chips: Key components in electronics such as smartphones, computers, refrigerators, and cars. As electronics proliferate, semiconductor companies may provide windows of opportunity. By 2030, electronics are projected to make up 45% of a car’s cost, up from 18% in 2000.

Broadband: Infrastructure required for internet access, including in rural and remote areas. Across OECD countries, broadband subscriptions per 100 people is just 33.3, illustrating a gap in access to high-speed internet. 5G, fiber optic cable, and internet infrastructure companies could offer the essentials that are needed.

Hyperscale cloud providers: Enable vast amounts of data and computing power to operate on cloud-based platforms, often in real time. With average gross margins of 57% and net debt to equity of 4%, cloud computing vendors could be poised for growth as data expands exponentially.

3. Emerging Markets’ Growing Middle Class

In the last two decades, emerging market (EM) income per capita has doubled. As disposable incomes rise, the consumer landscape is shifting towards more sustainable products.

Willingness to Pay a Premium for the Following Attributes% of Respondents
Contains organic/all-natural ingredients41%
Contains environmentally friendly/sustainable materials38%
Offers/does something no other product on the market provides37%
Delivers on social responsibility claims30%

Source: Conference Board Global Consumer Confidence Survey conducted with Nielsen. Data as at June, 2020.

Notably, the plant-based meat market in Asia is projected to grow 15.9% annually by 2026. In fact, global consumer searches for sustainable products have grown 71% since 2016.

Forces of Change

At this critical juncture in spending lies new investment opportunities. While it’s impossible to predict the future, strong underlying trends provide clues for how investors can think about positioning their portfolio.

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The 5 Fastest Growing Industries of the Next Decade

We reveal the five fastest growing industries of the future, within broader sectors such as healthcare and technology. Which industry will be number one?

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Fastest Growing Industries

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The Fastest Growing Industries of the Future

Today, the U.S. economy looks very different than it did hundreds of ago. While railroad stocks dominated in the 19th century, industries within technology and healthcare have grown substantially in recent years. As dynamics continue to shift, what will be the fastest growing industries of the future?

In this infographic from New York Life Investments, we uncover the industries projected to see the fastest growth rates over the next decade.

What Are the Fastest Growing Industries?

The U.S. economy is growing. From 2019 to 2029, total industry output is expected to rise by more than 20%.

Output is the value of final goods and services, as well as intermediary sales that are not typically included in GDP. In this case, output is based on chained 2012 dollars, which is a method of adjusting real dollar amounts for inflation over time using 2012 as a base year.

Below, we count down the fastest growing industries from 2019 to 2029, according to projections from the U.S. Bureau of Labor Statistics.

#5: Outpatient Care Centers

This industry is defined as facilities where the patient is not required to stay overnight, such as:

  • Mental health and substance abuse centers
  • Family planning clinics
  • Dialysis clinics
  • Multidisciplinary clinics

As patients demand more convenient and less expensive care, the popularity of outpatient care centers has grown. Advances in medical technology, such as minimally invasive surgeries, also allow for same day release. Here is what projected growth looks like for the industry.

Compound Annual Growth Rate3.2%
2019 Output$122B
2029 Output$168B

However, investors may want to consider that health care leaders say implementing information technology (IT) is their greatest challenge.

#4: Computer System Design & Related Services

Companies that primarily provide IT expertise fall within this industry. Here are some examples:

  • IT consultants
  • Programming services
  • Video design
  • Web page development
    • The growth of e-commerce and digital marketing will likely contribute to the industry’s success. For instance, U.S. e-commerce climbed by 32% in 2020. Buoyed by these trends, computer systems design companies are expected to have a compound annual growth rate exceeding 3%.

      Compound Annual Growth Rate3.2%
      2019 Output$518B
      2029 Output$712B

      On the other hand, investors may want to watch for the high capital costs some IT companies could incur to upgrade outdated platforms.

      #3: Oil & Gas Extraction

      This industry includes companies involved in the preparation of oil & gas, up to the point of shipment from the producing property. Some examples are:

      • Integrated oil & gas companies
      • Drilling contractors
      • Exploration & production companies

      As inflation rises, extraction companies may benefit from higher prices and wider profit margins. The industry is expected to have the third highest growth rate over the next decade.

      Compound Annual Growth Rate3.4%
      2019 Output$474B
      2029 Output$660B

      However, investors may want to consider the growing traction of sustainable investments. While oil demand isn’t projected to peak until 2035, the shift to clean energy may cause long-term challenges for the industry.

      #2: Information Services

      Businesses that supply, search for, or publish information fall within this industry. Some examples are:

      • News syndicates
      • Internet publishing
      • Broadcasting
      • Web search portals

      Consumption of trusted news brands is growing, and paid subscriptions are increasing in richer Western countries. In addition, Google has committed at least $1 billion to license content from publishers for its News Showcase product. Here’s what potential growth looks like for information services companies.

      Compound Annual Growth Rate4.2%
      2019 Output$243B
      2029 Output$365B

      On the other hand, ad revenue is falling in some segments. Investors researching this industry may want to consider platforms that are diversifying their revenue streams.

      #1: Software Publishers

      Topping the list of the fastest growing industries is companies that design, install, and provide post-purchase support for software. Some examples are:

      • Cybersecurity
      • Graphic design
      • Operating systems
      • Customer relationship management

      Amid remote work and e-commerce growth, software enables companies to connect with employees and customers. The industry is projected to have a compound annual growth rate of almost 5% from 2019 to 2029.

      Compound Annual Growth Rate4.8%
      2019 Output$236B
      2029 Output$378B

      At the same time, the industry has relatively low barriers to entry. Investors may want to watch for competitors, which can pop up anytime and threaten existing companies’ market share.

      Industries of the Future

      Investors with a long-term view can consider investments in these high potential areas. Propelled by market trends, the fastest growing industries fall within three broader sectors:

      By looking to the future, investors may be able to capitalize on industries poised for growth.

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