Webinar recap: Moving past the noise

If you've been worried about market volatility, tariff policies, geopolitical events and how they're affecting your investment balances, you're not alone. Recently, three of BOK Financial's wealth professionals came together to discuss the current financial concerns they're hearing from clients. They shared tips on how to manage finances during times of uncertainty and how these concerns specifically pertain to women, who often face unique financial challenges.

At the top of the discussion was the fact that, throughout the past five years, there has been more significant market volatility than for almost a decade prior. The causes of this volatility have ranged from the Covid pandemic to this spring's Liberation Day tariffs, both causing 40% market drops.

"People are very concerned when these big swings happen," said Melissa Lord, director of investment fiduciary and consulting services at BOK Financial®. "Generally, people are more focused on not losing money and the return on their money."

Brooke Clark, institutional client advisor at BOK Financial, echoed those sentiments coming from her nonprofit and institutional clients saying, “I’m having conversations with clients around more volatility and uncertainty around federal funding and proposed tax changes.”

Even once-considered safe investments haven't been as reliable as they were before, said Sara Skipper, a senior financial advisor with BOK Financial Advisors. "In 2022, we experienced high inflation around 9.1%, and the S&P was down around 20%. Usually, bonds keep us afloat during these periods, but they weren't doing their job during that time."

However, there’s one safe bet all the advisors agreed on: stay the course.

"Remember, you've got a plan. You don't want to make a bad decision during a market correction," said Skipper. "The worst thing people can do is say, 'I'm out, I can't handle this anymore, put me in cash.' You're going to lock in those losses. We don't want to do that. We want to give ourselves the chance to recover."

Risk tolerance and diversification
The advisors emphasized the importance of understanding your risk tolerance, which refers to the level of uncertainty or loss a person is willing to accept in pursuit of their goals.

"A lot of women are stereotyped as risk averse. However, research shows that they're simply aware and thoughtful. It's not about being fearless. It's about being informed, prepared and confident in your choices," said Skipper.

"There is nothing wrong with being aware of risk, but you want to make sure you're not so concerned about the risk that you give up potential upside and return," Lord agreed.

The speakers also emphasized that the key to any investment strategy is diversification. "It means not having all of your eggs in one basket," said Lord. "When you spread your assets among a variety of asset classes or investment types, you might not capture all the returns of the best-performing area of the market, but you'll avoid having all of your money in the worst performing area of the market, so it's a way to minimize volatility."

Meanwhile, those who think cash is the most risk-averse asset should consider what it means to go all cash, Skipper noted. "In 2022, when inflation was at 9.1%, were you getting 9.1% on your cash? Probably not, so your dollar isn't reaching as far," she said.

The great wealth transition
Also on the horizon is what’s being called the "great wealth transition." Personal wealth controlled by women in the U.S could reach $30 trillion in 2030, compared to $14 trillion in 2016. Women need to be ready to manage that influx of financial responsibility.

"It's imperative to have a strong relationship with your advisor," said Skipper. "Women usually outlive their male partners by five to six years. You want to have somebody you trust and that you'd want to stay with throughout that time."

Retirement contributions and saving
Whether you’re focused on the upcoming wealth transition or not, there are basic investing principles to follow—for both women and men.

One of the questions discussed during the webinar was, "Should you focus on paying off debt or saving and investing?" To which Skipper responded, "There are different buckets: your retirement savings, regular savings and emergency savings. The goal with retirement savings is typically to have around 10-15% of your income allocated-but maybe that won't work for you. You could take a bit of that and put it into other areas, such as an emergency fund to cover an unexpected expense, like new tires. If you want it to go toward debt, prioritize the highest interest rate first, not necessarily the lowest balance."

Inflation and price increases due to tariffs are putting the squeeze on some people's wallets to the point they may not have any excess to save.

"I would encourage people to put in as much as they can," said Lord. "If your company offers a match on your 401(k), at least put in enough from your paycheck to get the match. That's free money, and you don't want to leave it on the table. Even when times are tough, setting aside a little helps you become a more disciplined saver and investor. Those assets are going to grow. In fact, people are often surprised by how much they accumulate over time, and they realize how that little bit has grown."

Consult a financial advisor
The panelists emphasized that whenever you're unsure about your financial direction or want to understand your financial options better, reach out to your financial advisor.

"You don't need a crisis to reach out. Hopefully, your advisor is being proactive with you and setting up regular meetings," said Skipper.

She also suggested if you don't feel comfortable meeting with your financial advisor, there's a concern that they may not be right for you.

In addition to advisor meetings, the panelists also encouraged viewers to pay attention to financial newsletters, participate in webinars or listen to podcasts to educate themselves more broadly.

Women can build confidence in their financial journey
While women may face unique financial challenges, including unequal pay, time out of their careers for cuidado, and longer life spans, it doesn't mean they can't overcome them and build a steady stream of wealth.

"Financial resources and education haven't always been focused on women," acknowledged Clark. "We want you to feel equipped and empowered to address those special considerations that may be coming or are already at play in your lives. We understand and want to help you prepare and make informed decisions."

Watch the full replay of the webinar y subscribe to the Women & Wealth newsletter for more information specific to women’s financial concerns.