Courtney McCarthy was named market executive for Merrill Lynch Wealth Management’s Coastal New England Market in November.
McCarthy began her career there as associate market manager for the Rockefeller Center Complex, and previously worked as assistant market head for UBS Private Wealth Management. She has a bachelor’s degree in business administration from Bucknell University and is a certified private wealth adviser.
Seifert Systems Invests in Energy Efficiency to Strengthen Operations
For manufacturers, energy is more than just another operating expense. It plays a critical role…
Learn More
PBN: What does your new role with Merrill Lynch entail?
MCCARTHY: In this role, I work alongside financial advisers across the region with a focus on practice management, business development and team structure. Additionally, in partnership with local leaders within the firm, I work to connect Merrill Lynch and Bank of America [Corp.’s] business lines to deliver integrated financial services to individuals, families and businesses.
PBN: The COVID-19 pandemic has illustrated some of the ways women are falling behind in the labor force. But the gender wage gap has been a long-standing problem. How big is it, at this point, and what are some of the reasons why women are less financially secure than men?
MCCARTHY: The gender wage gap, often quoted as the 82 cents a woman makes to every dollar earned by a man, is well-documented. However, the women’s wealth gap, the accumulation of lower earnings over time, compounded by common employment interruptions experienced by women for caregiving, is a much more telling indicator of women’s financial security.
According to Merrill research, by the time a woman reaches retirement, she will have accumulated as much as $1 million less than her male counterpart. Time will tell, but the pandemic has likely expanded that gap, as many women left the workforce for child care and elder care responsibilities.
PBN: How does the wealth gap impact women’s ability to retire and be comfortable in their retirement?
MCCARTHY: Longer lives and smaller nest eggs pose a challenge for women’s long-term financial security. The good news is that it’s getting better. There has been a shift toward women’s growing personal and financial powers.
Women graduate in higher numbers than men from college and graduate school. Due in part to this rise in education, there has been an increase in women’s earnings – so much so that women’s wealth is growing at a rate of 1.5 times the rate of men’s wealth.
Women are also starting businesses and climbing the executive ranks of top corporations, which is not only a cultural imperative but leads to greater long-term business results, according to our strategists at BofA Global Research.
PBN: With that in mind, what are ways that women can work to close their wealth gap?
MCCARTHY: Start saving early as part of a longer-term financial plan. As women accumulate wealth, they are often faced with career interruptions, which is only exacerbated by the potential for increased retirement expenses associated with living longer. Ideally, they should take full advantage of 401(k) company matches and maximize their Social Security and pension benefits. A financial adviser who understands women’s financial journeys can help come up with the best long-term plan that works for them.
PBN: What long-term impacts do you think the pandemic will have on the gender wealth gap and how lawmakers, companies and individuals seek to address it?
MCCARTHY: The coronavirus could slow down or reverse the progress that has been made toward equality. During the pandemic, women have left the workforce at a higher rate than men, many due to caregiving needs such as home schooling for children and elder care.
Employees should take full advantage of supportive benefits and accommodations where available. For example, here at Bank of America, we have provided reimbursement for child care costs since March of last year.
For women, unexpected events like the impact of coronavirus underscore the importance of having a financial plan and revisiting with your adviser often to make adjustments.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
