Women & wealth panel
For our October Women & Wealth panel, we asked eight experts to weigh in on philanthropy in estate planning and the use of AI in wealth management. Our Q&A was conducted via email in mid-October and the responses were lightly edited. To suggest future topics, email Executive Editor Jorge Mercado at [email protected]. For sponsorship and advertising, email Director of Marketing Jennifer Carusa at [email protected]. Our panelists are:
Q1: How should women think about philanthropy as they build their personal wealth and think about leaving a legacy? What one or two key topics to consider?
Suzi: For me, the most important consideration is impact. Where do you want to make a lasting impact? Philanthropy is so personal. Your decision should consider how broadly you want to cast your net. Is there an organization that made a meaningful impact in your life that you would like to make available for others in the future? Did a scholarship change your opportunities? Was there an organization whose support at a challenging time in your life made all the difference for you? Are you passionate about providing opportunities for a particular segment of the population? Whatever fuels your philanthropic spirit and how much impact you want to make will determine how you plan to grow and bequeath your personal wealth. Philanthropy was the founding principle when Montecito Bank & Trust was established 50 years ago. Regardless of the source of wealth, women tend to focus on safety and security vs. asset growth. One strategy we offer is a growth approach to assets that will ultimately be left to charity. Of course, women with wealth also contribute to charity through advocacy, influence and active support of nonprofit programs and we support those efforts.
Marites: I think it’s important for women to remember that you don’t have to wait until you’ve built significant wealth to start giving back. Philanthropy can be part of your financial plan at any stage of life and it doesn’t always involve large donations. While building wealth, volunteering, mentoring, or sharing your knowledge are meaningful ways to make a difference. Getting involved with local organizations also allows you to see firsthand the impact you’re making in your community. As your wealth grows, consider how charitable giving fits into your overall financial plan. Finding a balance between supporting causes you care about and protecting your own financial future is important. Strategies like donating appreciated stock, using donor-advised funds or making qualified charitable distributions from an IRA may also provide needed tax benefits. I also encourage clients to involve family members in philanthropic activities, whether through volunteering together or supporting a shared cause. It’s a wonderful way to pass your values on to the next generation. At the end of the day, leaving a legacy isn’t just about how much wealth you leave behind, but the difference you make along the way.
Hannah: Building wealth gives us the chance to give back and shape the world around us. First, start with what matters to you. Before diving into the numbers, decide where you want to make a difference, whether that’s advancing opportunities for women, strengthening your community, or supporting education. Giving feels more personal and rewarding when it’s tied to your passions. Second, give smarter, not harder. A good financial planner can show you how to use tools like donor-advised funds or gifts of appreciated stock to maximize your impact, optimize your taxes andensure your wishes are honored after you’re gone. With the right plan, you don’t have to choose between caring for your family and supporting a cause you love. Ultimately, legacy is about passing on both your means and your values.
Monica: Find your passions and align your wealth with the causes that matter most to you. Then give both your time and your treasure. Volunteer, serve on a board and become personally involved in the organizations you support. Anyone can write a check and potentially benefit from a tax deduction, but giving our time, talent and resources creates a deeper connection to the causes we care about. It enriches our own lives while making a meaningful difference in the lives of others — and that is the foundation of a lasting legacy.
Maria: When there’s an interest in philanthropy, the first consideration should be the strength of the financial foundation. We have to check all the usual boxes such as protecting long-term financial independence, retirement and healthcare, providing for loved ones and maintaining flexibility to address life’s many uncertainties. Once we confirm that her financial plan can accommodate charitable giving, we can explore several strategies. Donor-Advised Funds have become popular and offer an upfront tax benefit while allowing clients to direct charitable gifts over time and involve the next generation. We can also discuss beneficiary updates, charitable trusts, qualified charitable distributions from IRAs, annual gifting strategies and other approaches. For women with a philanthropic inclination, charitable giving is both an extension of their legacy and an additional financial goal. Philanthropy can be incorporated thoughtfully into their overall financial plan. We believe a woman’s legacy can be defined not only by her wealth, but also by what she chooses to make possible for others. When it’s aligned with her financial priorities and long-term security, philanthropy is both encouraged and enabled.
Nicole: I’ve found that many women feel drawn to giving back, but what that looks like can be very different for each person. For some, it’s volunteering their time or supporting a cause close to their heart. For others, it’s creating a charitable legacy that continues long after they’re gone. When I have these conversations with clients, I like to understand what’s driving their desire to give. Is there a personal experience, a cause they’re passionate about, or something they hope to pass along to future generations? Getting to the heart of that motivation often makes the planning process much more meaningful. From there, we can explore strategies that align with their goals, whether that’s giving during their lifetime, incorporating charitable gifts into their estate plan, or considering charitable trust structures. There’s no right or wrong way to be philanthropic. What matters is being thoughtful and intentional about the impact you want to make.
Sarah: Many of the women I work with reach retirement looking for more than financial security. They want purpose. Philanthropy can be a meaningful part of that. I’ve shared Bill Perkins’ book *Die With Zero* with many of my clients because its message is so important: enjoy your wealth while you’re here. The same idea applies to giving. Charities can often put a dollar to work today more effectively than a bequest a year from now. Giving during your lifetime also lets you see the impact firsthand. Many women tell me that being part of the work their money does and watching it grow and change lives is one of the most rewarding parts of building wealth.One practical tip: it’s RMD season. If you’re 70½ or older, a Qualified Charitable Distribution sends money directly from your IRA to a charity. Once you’re required to take distributions, it can count toward your required minimum distribution and the gift isn’t included in your taxable income. You support the causes you love and Uncle Sam doesn’t get a cut.
Megan: I believe giving back is something everyone should consider as they build wealth and think about the legacy they want to leave. We’re all part of a larger community and when we invest in lifting others up, we all benefit. You don’t have to wait until you’ve accumulated significant wealth to start making a difference. Philanthropy can take many forms and is accessible to everyone. In the earlier stages of building wealth, giving your time, sharing your expertise, or supporting causes that matter to you can be just as meaningful as financial contributions. Being intentional about philanthropy allows you to make an impact throughout your lifetime, rather than waiting until later in life to think about your legacy. Taking the time to consider how and where you want to give back can also help you better define your personal values and make choices that align with them, creating a greater sense of purpose and fulfillment. The goal isn’t necessarily how much you give, but making sure your giving reflects what’s important to you. Ultimately, the legacy we leave isn’t just about the wealth we’ve accumulated, but the impact we’ve had on the people and communities around us.
Q2: We are all using AI a lot more, but can it be trusted to provide advice about investing and wealth management? What are the opportunities and pitfalls for investors and advisors?
Monica: AI is the newest evolution of the calculator. It can help us process information faster, identify patterns and make our work more efficient. But better calculations don’t automatically lead to better decisions. Wealth management is about far more than numbers; it requires understanding people — their goals, their fears, their families and the legacies they hope to leave. AI can enhance what we do, but it cannot replace the human judgement, empathy and trust at the heart of our relationships.
Megan: AI can be a valuable tool for helping people learn about financial concepts, ask questions and become more informed about their options. I do believe there is an important distinction between having access to information and knowing how to apply that information to your own life. My job is to understand the entire picture: goals, family dynamics, values, concerns and how one financial decision might affect another area of their life. AI may be able to identify the most mathematically efficient solution, but that doesn’t always mean it’s the right decision. There’s often an emotional component to financial decisions that requires empathy, perspective and an understanding of the individual.
Hannah: If you’ve ever asked ChatGPT for a grocery list and ended up with a recipe for butternut squash risotto, you already know the golden rule of AI: it’s brilliantly confident and occasionally laughably wrong. I think of AI as the ultimate financial intern. For investors, it’s great for decoding jargon and building baseline budgeting habits. For advisors, it handles tedious tasks and data crunching, freeing us up to spend more time with clients. But AI doesn’t know your late-night money worries, your family dynamics or your secret dream of opening a boutique bakery. And it lacks empathy. When the market takes a nosedive, an algorithm won’t talk you out of panic-selling or remind you of your Family Index, the personalized rate of return you need to meet your goals. So, use AI to brainstorm, learn the basics and organize. For the high-stakes decisions that shape your future, trust the advisor who has spent the time getting to know you. Preparing for a downturn takes more than data. It takes a plan built around your goals, your circumstances and your ability to stay the course.
Nicole: I’m seeing more clients and prospects turn to AI to better understand the markets, evaluate their portfolios andquestion investment performance. I love seeing people take an active interest in their finances, but I caution against blindly trusting the information AI provides. Data can be outdated, and even inaccurate conclusions can sound convincing. As advisors, we also have important ethical and compliance responsibilities. Protecting client privacy, verifying information and maintaining appropriate oversight are essential, regardless of the technology we’re using. Understanding someone’s family, goals, concerns and what truly matters to them takes more than analyzing numbers. Those conversations and the trust built over time are what make our relationships with clients so meaningful. I’m excited about what AI can offer, but I believe it should help us serve clients better, not replace the human connection.
Sarah: AI is a powerful tool and I use it to work more efficiently. But it’s a tool, not an advisor. It’s great for explaining concepts, summarizing research and helping investors come to meetings with better questions. For advisors, it can take over routine work, so we have more time for what matters most: conversations with clients. The pitfalls are real, though. AI can sound confident and still be wrong, outdated or generic. It doesn’t know your full picture: your family, your goals, your tax situation, or how you’ll feel when the market drops 20%. I’d also caution investors never to upload account statements, Social Security numbers or other sensitive documents into public AI tools. My view: use AI to get informed, then bring those questions to a professional who knows you and is accountable for the advice.
Suzi: Identifying a risk tolerance and strategy for any investor is an art. A good advisor will take time to explore your needs and concerns and adjust your strategy as those change throughout your lifetime based on the relationship and investment knowledge you have built together over time. The best investment managers become important and trusted advisors who know your tolerance for risk and your plans for building your legacy of giving. It’s important to acknowledge that AI knows the past, but it does not have a track record in forecasting. The value of an experienced and skilled advisor derives from an ability to anticipate emerging risk and to help you develop a risk strategy in case of financial crisis. AI can be a really helpful tool, especially for people who want to learn more about investing, better understand their finances, or explore different ideas. As an advisor, I also see its value in research, meeting notes andeveryday tasks. It helps us work more efficiently and spend more time directly with our clients.
Marites: AI can be a really helpful tool, especially for people who want to learn more about investing, better understand their finances, or explore different ideas. As an advisor, I also see its value in research, meeting notes and everyday tasks. It helps us work more efficiently and spend more time directly with our clients. While AI has many benefits, I wouldn’t rely on it alone for financial or investment advice. It doesn’t always get things right and sometimes an answer that sounds accurate may overlook important details about your personal situation. Financial planning involves so many moving parts, including taxes, investments, cash flow and family circumstances. One decision can impact several other areas, which is why understanding the full picture matters. One thing AI can’t replace is personal relationships. As advisors, we take the time to understand our clients, what matters most to them and how their needs evolve, especially during major life changes. I encourage people to take advantage of AI as a resource while recognizing that it works best alongside personalized guidance, not as a replacement for it.
Maria: Administrative duties are evolving with the efficiencies that AI can bring to workflows, but advisors must recognize privacy concerns associated with AI and the irreplaceable value of human interaction. Utilizing AI to transcribe meeting notes saves significant time, but when it comes to producing financial plans and managing assets, the need for human touch remains paramount. Clients appreciate knowing the person who is helping them with their financial well-being. When we explore “what if” scenarios or make real-time adjustments during meetings, the presence of an advisor allows for dynamic discussion that addresses clients’ goals and concerns. The empathetic ear of an advisor facilitates effective problem-solving and strategic planning without leaving out the emotional dimensions that financial decisions involve. It’s worth mentioning as well that, in the age of frequent data breaches, it’s crucial to stay vigilant about cybersecurity. Implementing robust compliance measures and engaging in ongoing technology security training are vital steps to protect both client information and the integrity of our services.
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