If you didn’t already know, financial planning isn’t a very diverse industry. According to the latest statistics from the CFP board, about 23% of CFPs are female, and 73% are over the age of 40. The CFP board doesn’t publish statistics for minorities, but according to the Bureau of Labor Statistics (BLS), about 20% of personal financial advisors are African American, Asian, or Latino. Comparatively, across all industries, 47% of workers are women and 35% are non-white, according to the BLS. Even though the membership of the XY Planning Network (nearly 500 strong!) skews younger and slightly more diverse than the broader population, there’s still a ton more work to do.
Our industry will be better off with more diversity. Here are some reasons why:
According to these studies, diversity leads to reaching new customers, increasing profitability, and even prevents asset bubbles from forming.
I have spent the entirety of my 15-year career working in male-dominated fields. First, working with state legislatures and Congress, and then working in financial services. I’ve only ever had one female supervisor. The number of women who outranked me at any of my jobs was scant. I found myself working on teams where I was one of the youngest, which comes with its own set of challenges.
Early on, I picked up the “tricks” we all have to learn to fit in: the nervous laughter when a male boss says something inappropriate, spending a lot more time one-on-one with people because I was often overlooked or talked over during meetings, and studying like hell to learn how to negotiate for myself. I’m certain that other women and minorities can relate to some of this.
I never got much career-advancing mentorship when I worked in a corporate job, unless I sought it out directly. When I worked as an analyst on the floor of a global finance news and data organization, I didn’t feel like my peers were there to help me. It felt like competition. The resources I turned to tended to be female membership and networking groups outside my company, and I learned a lot from being part of those communities.
One awesome thing I’ve observed about financial planners and solo firm owners is that we’re a bit different. We’re welcoming and willing to go the extra mile to provide advice, support, and guidance. I’ve had so many people take time out of their day to tell me about their business and answer my questions.
With all that early support, I just began my third year as a female firm owner under 40! I can do what I want in my business. I make all the decisions, the schedule, and the rules. I choose who I’m hiring, and I’m creating the culture I want to experience every day. I’m choosing to help female clients focus on their own careers and explore starting businesses. It’s been a fantastic experience.
I am lucky to have a ton of supportive people behind me in the XYPN community, helping me on my journey as virtual co-workers. And I’ve found people in our network to be open to talking about tough issues like diversity, or the lack of it, in our industry. I know there are probably a lot more women, people of color, and LGBTQ people out there searching for resources who may not even know this profession exists.
A group of XYPN members began discussing six months ago and developed a diversity initiative to help attract and support diverse groups to our network and industry. Working on this committee provides a bright spot in my life at a time when there’s been so much painful news across the country.
We hope more people will want to get involved in our initiative. And today, we’re officially launching our mission statement and goals for the Diversity Committee.
XYPN’s Diversity Committee’s Mission Statement
"Lead the industry by attracting, supporting, and developing a diverse group of Financial Planners so our community can embrace our differences and make us all more knowledgeable, more accepting, and better people."
Here’s some more context on why we created this initiative and mission, directly from members of our Diversity Committee.
Our committee focuses on embracing our differences.
We’ll focus on our XYPN community.
Develop better planners and people.
As we move forward, our committee has plans for events and a mentorship program to help continue expanding awareness and attract more diversity to XYPN.
Cady North, CFP®, MBA, is the founder of North Financial Advisors. Her mission is to provide effective and affordable financial planning tools to women who desire to be their best self — financially, professionally, and personally. On the weekends, you can find her on her bike or hiking a trail in DC when the weather is nice.