She has redefined how ultra-high-net-worth families engage with their legacies, spearheading programs that empower next-gen leaders, millennial wealth creators, and women investors. With a deep understanding of family dynamics, succession planning, and the evolving wealth landscape, Ida has built innovative strategies that ensure long-term prosperity across generations—cementing her as a transformative force in the industry.
In a recent talk, Ida Liu, former Global Head of Citi Private Bank, shared valuable insights on wealth management specifically tailored for women. With women poised to control over half of global wealth within the next five years, Liu emphasized the importance of financial literacy, strategic planning, and confidence building for female investors.
We are at a pivotal moment in financial history. Women currently control one-third of global wealth, but within five years, that figure will rise to over 50 percent—representing approximately $30 trillion in assets. "That's larger than the entire GDP of China," Liu noted. Despite this massive wealth transfer, about 80 percent of women don't feel fully equipped to make optimal wealth management decisions.
What's particularly interesting is that this isn't a matter of competence. Research from Fidelity shows that women investors actually outperform men by 40 basis points annually on their investment portfolios. The challenge, according to Liu, is not a competence gap but a confidence gap.
Liu emphasized two fundamental rules for all investors to follow, regardless of gender:
"Do not time the market," she advised. "The number of days you're invested is going to be better than the numbers of days that you try to go in and out of the market." Consistent investment beats trying to predict market movements, which even the most seasoned professionals struggle to do consistently.
The second principle is equally important: "Don't put all your eggs in one basket." Diversification remains essential for risk management and building resilient portfolios. Liu stressed the importance of creating "long-term investment strategies that really align with your objectives, your risk tolerance, what you're trying to achieve, and stay the course, with some minor adjustments along the way."
For practical portfolio construction, Liu recommends organizing investments into three distinct time horizons:
The short-term bucket covers the first zero to three years and focuses on immediate cash flow needs and liquidity for upcoming life events. This ensures you have access to funds when needed without disrupting longer-term investment strategies.
The mid-term portfolio, covering three to seven years, should feature a more balanced approach with equity strategies tailored to your personal risk tolerance and investment goals.
The long-term bucket, for investments with a seven-plus year horizon, is where Liu recommends considering alternative investments like private equity, venture capital, direct investing, and private credit. These typically less liquid investments offer potential for higher returns over time.
Liu's approach to asset allocation spans three main categories:
For equities, she recommends global diversification beyond U.S. markets. "We could all say that there's some interesting and compelling international opportunities in the near term," she noted, highlighting potential in emerging markets. She specifically pointed to growth sectors like technology/AI, healthcare, and clean energy as promising long-term investments.
Fixed income investments serve as a critical stabilizing force in any portfolio. "You can sort of think of the fixed income bucket as a cash flowing, steady, stable, less risky asset," Liu explained, noting that treasuries, municipal bonds, and corporate bonds offering returns in the 5% range remain compelling.
For sophisticated investors, alternative investments provide potential for higher returns. This category includes private equity, hedge funds, venture capital, and direct investing opportunities. While these investments typically require longer commitment periods and higher minimums, they can generate significant alpha when managed properly.
"It's not about what you earn, it's about what you keep at the end of the day," Liu emphasized when discussing tax planning. Maximizing after-tax returns through strategies like tax-loss harvesting and appropriate investment vehicles can significantly impact wealth accumulation over time.
Liu stressed the importance of working with qualified tax advisors and considering tax implications when constructing portfolios. For example, she personally considers the tax exemption of New York municipal bonds as a New York resident—a strategy that might differ for someone in another tax jurisdiction.
Liu highlighted the importance of surrounding yourself with the right financial professionals:
"Are they fiduciaries of your assets? Are they helping you really get to the end goal and the objective that you've laid out?" Liu asked, encouraging women to ensure their financial advisors truly align with their interests.
Beyond investment advisors, she recommended working with strong CPAs for tax planning and qualified estate planning attorneys to maximize wealth transfer and minimize tax implications. This comprehensive team approach helps ensure all aspects of wealth management are addressed.
Liu also suggested regular "health checks" on investment portfolios, especially given rapidly changing market conditions. "Just as you get an annual exam, you should get a health check on your personal investment portfolio," she advised.
A significant trend Liu identified is that women are twice as likely to invest in alignment with their values compared to men. This aligns with broader shifts in investment priorities among next-generation wealth holders.
"Women are going to be controlling more and more of global wealth," Liu noted, adding that there's "some general themes that we're seeing from next gen, millennial and women, and that is that they want to invest with purpose. They want to invest with impact. They want to invest to do good in the way that they're investing."
Liu dismissed the notion that ESG (Environmental, Social, and Governance) investing is "dead," instead highlighting increasing interest in customized portfolios, green bonds, and investments aligned with personal values. "You have the ability to cast a vote for the way you want the world to be," she explained.
Liu concluded her talk with a clear call to action for women:
First, know your numbers—understand your net worth and annual cash flow requirements. This basic financial awareness forms the foundation for all investment decisions.
Second, develop a comprehensive investment plan that clearly articulates your goals and objectives. This should include an honest assessment of your risk tolerance and time horizon.
Third, ensure you have the right team of wealth advisors to help implement your plan and provide ongoing guidance.
Most importantly, Liu emphasized that it's never too late to begin. "You really do have the power to shape your own financial future," she assured participants. "Start today."
By following these strategies, women can overcome the confidence gap in investing, build wealth aligned with their values, and fully leverage their growing financial power in the global economy.
