An Icon for All Ages: a Conversation with Model and Activist Lauren Hutton

Magazine

AN ICON FOR ALL AGES: A CONVERSATION WITH MODEL AND ACTIVIST LAUREN HUTTON

Fall 2019 CONTENTS Magazine

1 LETTER PHILANTHROPY & WEALTH PLANNING 12 CONTRIBUTORS A Letter to Our Readers Resilient Estate Planning in the Face of Kathryn George Unexpected Life Events Adrienne Penta 2 FEATURE Joann Gilbert-Holmes BUSINESS & INVESTING An Icon for All Ages: A Conversation 18 Kaitlin Barbour with Model and Activist Lauren Hutton Growing into the Future Alison Hutchinson Stacia Kroetz 8 FAMILY 22 FIVE QUESTIONS WITH... Jules Pieri Juggling Eldercare, Childcare and Work: Maura Cunningham Maura Cunningham Fitting In the Unpredictable EXECUTIVE EDITOR SPOTLIGHT 24 Adrienne Penta 10 BY THE NUMBERS Inside BBH Women Breaking Down Barriers EDITOR Kaitlin Barbour

DESIGN BBH Creative Services 2 12

22 8

Women are taking great strides in professional leadership: 52% of management and professional-level positions are held by women, and 11% are top earners. In this issue’s infographic, we look at women leaders across industries who are making history. 10 18 24 WOMEN IN THE C-SUITE WOMEN ON BOARDS WOMEN IN FINANCE WOMEN IN STEM WOMEN IN RETAIL WOMEN IN EDUCATION

Organizations with gender-diverse Rise in women financial In 2017, women held 18% of The retail industry holds the Number of women executive leadership are more services industry executives STEM leadership roles highest percentageB | Women &of Wealth women Magazine university presidents % likely to outperform on over past five years % 1966 2016 24 profitability and value creation CEOs 12 Rise in % % 17.6% women 21 27 31% C-suite professionals The financial industry has over past Women % the highest percentage in the 70 years software and CFOs 19 of women in top positions % past 40 IT leadership 27 years hires rose C-Suite 31% Fortune 500 Fortune 500 company boards with women CEOs CHRO 65% 33 at least one woman director % % Female-founded 9 30 1995 2018 CMO 53% tech companies % % % CIO/CTO perform 63 % Six-year rise in 9 23 25% better Empowerment and leading 28 women CMOs by example are key with a $ $ $ 35% higher return on capital than male-founded tech companies

U.S. women with working mothers earn 23% more than women whose mothers did not work

Sources: “Females in the US Workforce.” Catalyst, June 5, 2019. https://www.catalyst.org/research/women-in-the-workforce-united-states/. “Guide for Women in STEM.” Discover Data Science. https://www.discoverdatascience.org/resources/guide-for-women-in-stem/. “The Data on Women Leaders.” Pew Research Center’s Social Demographic Trends Project, September 13, 2018. https://www.pewsocialtrends.org/fact-sheet/the-data-on-women-leaders/. “Women C-Suite Ranks Nudge Up-a Tad.” Korn Ferry, April 24, 2019. https://www.kornferry.com/institute/women-in-leadership-2019-statistics. “Women in Business: The Complete History.” All Business Schools, 2017. https://www.allbusinessschools.com/business-administration/women-in-business/. “Women in Science, Technology, Engineering, and Mathematics (STEM): Quick Take.” Catalyst, June 14, 2019. https://www.catalyst.org/research/women-in-science-technology-engineering-and-mathematics-stem/. “Women in the Workplace 2018.” McKinsey & Company, October, 2018. https://www.mckinsey.com/featured-insights/gender-equality/women-in-the-workplace-2018. | LETTER

A LETTER TO OUR READERS

In this issue of Women & Wealth Magazine, we focus on women who are breaking the mold and making history. We had the pleasure of speaking with women who are pioneers and leaders in their fields – these are women who have been “firsts” and are taking care to pave the way for the women coming after them.

In our feature article, the legendary Lauren Hutton shares travails from her multifaceted career as a model, an actress and an activist. As the first model to secure a contract, she has changed the landscape of the modeling industry for the better, has been honored by leading high-end fashion Kathryn George designers and is an influencer for beauty at all ages. Hutton also talks about her motivation through Chairwoman it all: to travel the world.

Liz O’Donnell, the founder of Working Daughter and the author of “Working Daughter: A Guide to Caring for Your Aging Parents While Earning a Living,” has created a community for women who are balancing caregiving, career and more. We recently sat down with her to discuss why eldercare and the 44 million caregivers in the United States deserve a spotlight.

In this issue’s “By the Numbers” infographic, we chronicle the strides women have made in leadership over the years and across multiple industries. Adrienne Penta Estate planning is about more than taxes. In “Resilient Estate Planning in the Face of Unexpected Executive Director Life Events,” Wealth Planners Ali Hutchinson and Stacia Kroetz discuss the importance of flexibility in planning. The future is unknowable, but centering your plan on your values and communicating regularly with your fiduciary and your family will set your family on the path to success.

This issue also includes an excerpt from Jules Pieri’s recent book, “How We Make Stuff Now,” about how entrepreneurs grow and scale their businesses. Pieri is the co-founder and CEO of The Grommet, an online marketplace for innovative products. As an entrepreneur and investor herself, she shares her insights into the world of entrepreneurship, being a founder and CEO and growing a business. The CW&W supports women in the creation and manage- Finally, in “Five Questions,” Maura Cunningham, founder and CEO of Rock The Street, Wall Street ment of wealth. We seek to (RTSWS) – a nonprofit organization that enhances high school girls’ financial literacy – discusses the create a dynamic and inclusive importance of increasing girls’ confidence in the M in STEM, engaging the next generation to pursue environment where women a career in finance and her journey in building RTSWS. can engage in conversations about wealth, family and We hope you enjoy this fall edition filled with women who are pushing boundaries. If you would values. like to be more involved with the CW&W, please do not hesitate to contact us at [email protected]. We are committed to helping women business owners Kathryn George Adrienne M. Penta and those with substantial Chairwoman Executive Director wealth achieve their financial goals throughout the cycle of wealth creation, transition and preservation. BBH Private Banking serves female clients and their families through three integrated products and services: Private Wealth Management, Corporate Advisory & Banking and Private Equity.

Fall 2019 | 1 | FEATURE

2 | Women & Wealth Magazine AN ICON FOR ALL AGES: A CONVERSATION WITH MODEL AND ACTIVIST LAUREN

HUTTONBy Joann Gilbert-Holmes, Senior Relationship Manager, BBH Private Banking ifty-five years into her career, Street. I knew I was swamp smart, but Lauren Hutton – model, there I learned to be street smart. actress and activist – shows no signs of slowing down. One day in 1964, I was so tired, and As part of a dynamic, highly someone asked me, “What do you Fselective industry, Hutton has con- really want to do?” I kept thinking sistently questioned and changed over that question, and the answer the way the world sees modeling. was that I wanted to go to Africa; She was the first model to secure it had been my dream since I was a contract, has been honored by young. Another waitress said that leading high-end fashion designers she wanted to do that too, so we and is an influencer for beauty at all planned to meet in New York and ages. Throughout it all, a key driver take a steamer that she knew about of her passion and enthusiasm there together. comes back to a childhood dream: to travel the world. We recently sat My friend never showed up at the down with Hutton to discuss her New York airport. I had $200 on me, multifaceted career, the modeling two suitcases filled with everything industry through the years and sev- I owned and was all alone. I took the eral extraordinary experiences along bus to Port Authority and was terri- the way. fied when I got off. I had nowhere to go, but I remembered where Tiffany’s You have been in the modeling indus- was, so I hailed a cab and went there. try for 55 years. Tell us about how the It was a Sunday morning, and no one journey started. was out on the street. I got out and started crying because I didn’t know During college and before getting what to do. into modeling, I worked on Bourbon Street at a jazz nightclub as a waitress, Another girl who I vaguely knew often until 2 a.m., for about two and a had moved to New York. On the half years, which was exhausting. The off chance, I looked her up in the club’s opening night featured Dizzy phonebook. She said to come right Gillespie, and we integrated Bourbon over, and when I got there, I started

Fall 2019 | 3 | FEATURE

talking to her and her boyfriend about especially if I wanted to go to Africa. Once I had my book together, it came what I was going to do. He showed This sparked an increased enthusiasm time to find an agent. me the help wanted ads in the and excitement in me because I saw How did you approach that? Sunday New York Times, and we went the whole future opening up. through pages of them. I didn’t have By 1964, half of the U.S. was under 25 How did you eventually go from being a experience in anything, but I knew years old, and the best and brightest house model at Dior to revolutionizing I never wanted to waitress again. I all seemed to be in New York. I was the modeling industry with your Revlon had grown contempt, and working at frequently hit on, and if someone contract? night scared me. There was an ad for a seemed interesting, I would make a house modeling job at Christian Dior That was a 10-year journey. From tea date at Chock Full O’ Nuts on my New York. The next morning, I arrived the start, I would call photographers lunch break. Dutch treat. They paid bright and early. When my turn came, every day to see if they were looking for theirs; I paid for mine. On my 39th they called me a “baby elephant” and for test models so that I could get free tea date, we went to dinner because said to lose 10 pounds. I was on my shots and continue to build my book I knew he was different. He liked all way out, and they called me back and of photos. I would have eight to nine the things I liked, and that is what I asked if I would do it for $50 a week. appointments a day. When I look back, was looking for. I was looking for an I accepted. I get overwhelmed! But I had a reason: athlete and a scholar, and that is what I was going to see the world. I found. What kept you motivated during those early days? Whenever I’d meet with someone, I give this background because he We used to look at magazines while I’d ask, “When can I come back and gave me very good advice, though waiting for the buyers from depart- show you new pictures?” Because he knew nothing about modeling. ment stores to come in, and the other people were very upfront and often Still, he was smart about everything woman I worked with told me that I told me that they weren’t interested. it seemed. There were only five model- had a gap in my teeth, was short and Fortunately, I also understood that ing agencies. He told me to start with had a funny face and not to think that I none of this was personal – it was the least revered, find out what they could ever do photography modeling, not my soul. Often, young girls think didn’t like, fix it and work my way up. even though those models made as people are seeing inside of them, that That’s exactly what I did. The agen- much in an hour as I did in a week. they’re seeing their soul, but they’re cies all told me the same thing: “Lose With that comment, my first lightbulb not. They’re often reacting to what- 10 pounds.” I did that – despite the went off in New York. I quickly real- ever kind of day they’ve had. It’s not fact that I was living on Chock Full O’ ized I needed to make more money, personal; they don’t know you. Nuts hot dogs for lunch and 27 cent

“Often, young girls think people are seeing inside of them, that they’re seeing their soul, but they’re not. … It’s not personal; they don’t know you.”

4 | Women & Wealth Magazine chicken pot pies for dinner – and I kept getting new pictures and seeing more people.

I finally got to the best agency after over a year of doing test shots and making improvements to my book. They instantly turned me down, and as I was walking out, I did something out of character. I noticed that the agent had a picture of a boy on her desk. I said, “Is that your son? He must be in college. I wish I was back at Sophie Newcomb.” For some reason, her head shot back up, and she told me to sit down. I had an agent.

After that, I kept getting more and more jobs. I continued to grow and always had a goal of what I wanted to see and do – travel the world. How has the industry changed over the course of when you started to where it is now? When I started, the modeling industry was not what it is today. It was still a business – not an industry. There were no modeling shows anywhere except Paris. Everybody showed in their showrooms.

Fall 2019 | 5 | FEATURE

and valuable. Like most of us, I was just starting my prime time. I realized I could be youthful and proud of myself again if I could put women “We lose energy with age, and into modeling – and that was really the grail. So I called up every editor we have to remember where I could. You are now the global ambassador for we get it from. It could be hit- StriVectin, an anti-aging skincare line. How did that come about? ting a museum, a movie, a bed, StriVectin was started by a husband and wife team of biochemists who were looking for a cure for burns and a beach – find it, and get it.” wounds. Eventually, they realized it worked really well when it came to preventing aging. They also found there were 10 types of collagen in our face. They have about 15 products now that target collagen. Almost overnight, it became about contract. At first, she pushed back, money, which happened after I got but I wouldn’t budge. Needless to It’s the best line I’ve ever used. It’s the first modeling contract ever with say, I got it. my skin medicine. I use the advanced Revlon. Before that, there were only retinol and layer that with the anti- hourly jobs, and models were paid Clearly a lot of factors played into your wrinkle serum. The first time I used a dollar a minute. A good working success in modeling, but if you had to it, my skin looked different almost model had six working jobs a day at summarize them, what would they be? instantly. You can see the difference $60 an hour and made about $300 First, have talent for the work and the next day. Two friends asked me in two full working days. Within three study it every way you can. Second, what happened and what I did. months after the Revlon contract, work four times harder than anybody there were no hourly jobs at any else. Third, hope for luck. And fourth, The partnership was important to agency, and the average day was you must have horse strength. me because women my age and my $1,500. generation have been shunted aside. Eventually, you made the move to A lot of the time, we just believe what It was a big change. I was working become an actress, but you came we’re told. That’s foolish, but it’s been 20 days a year, and the rest of the back to modeling at 47. What going on since the beginning of time. time, I traveled. prompted that? Women need to know that we can be beautiful at all ages. And it doesn’t Was the contract your idea? “American Gigolo” came out when need to be expensive – people think I was almost 40. It was not a hit. It Yes. I got the idea while reading an they need all these expensive prod- became a classic much later on. article in The New York Times about ucts and procedures, but they don’t. My relationship was in crisis at that Catfish Hunter, in which he said he point, and I was taking on four or five had to have a contract because he How do you say no to that pressure, movies a year just to stay away from was in a youth-oriented business. especially as you get older? home, but I wasn’t proud of my work. Instantly, a lightbulb went off again. I had so many weak times where I felt I yelled across the living room, “How Around age 46, I decided to face my battered and bruised. But when you can I get a contract for modeling?” life again. It was the mid-1980s, and get weak, you need to head for what- That same smart New Yorker didn’t women were going into every pro- ever heals you. A lot of times, simply even look up from his Wall Street fession there was – except for model- calling friends gives you energy. We Journal. He said, “Makeup compa- ing, which was only for girls. Models lose energy with age, and we have nies. They have the most money. were pretty much finished by age 28, to remember where we get it from. It Tell your photographers you want a and that was if they were really good. could be hitting a museum, a movie, contract. Tell your agent you won’t There had never been any model a bed, a beach – find it, and get it. do any more makeup ads.” I called my over 40, but I was still healthy, alert agent and said I wanted a makeup

6 | Women & Wealth Magazine How has your vision of success changed over time? It is constantly changing. Originally, I wanted to be the best model I could be. I was never worried about competition, because I knew that we all were so different. Now, it’s a little different, because models are picked by how many followers they have.

I would say that to be successful now, you need to get some wisdom and find out how you can be of use. All the problems that we see feel unsurmountable, but you can have an impact.

You are an environmental activist. What sparked your passion for the environment? Life in the wild. When I was growing up, my mother remarried, and we moved from Charleston, South Carolina, to a swamp in Florida. I was so happy, and it didn’t matter that I was no longer in a beautiful city, because I had turtles, alligators and snakes in the backyard. I loved the wild, and that’s where I learned the most. I think we learn everything from nature.

You’ve been called everything from unconventional to an icon. What is something that you haven’t been called that you wish you had? One word that comes to mind is wise. I have had so many opportunities to learn that other people have not, and I feel like I should be putting my ideas down on paper to drive more change.

What advice would you give to young women starting out in the workforce? Think about what moved you. What grabbed you, helped you clear your mind and took you away? Think about what really interests you, because you want to be interested for the rest of your life.

Fall 2019 | 7 | FAMILY

Juggling Eldercare, Childcare and Work: Fitting In the Unpredictable An Interview with Liz O'Donnell, Founder of Working Daughter

By Adrienne Penta, CW&W Executive Director

Women in the sandwich generation have sent some work emails, saw my kids off assign healthcare proxies and power long been unrecognized for their second to school, wrote and filed an article for of attorney. Think about your own full-time job: caregiving. To increase The Huffington Post, drove more than an retirement and financial goals, and awareness for support of caregivers hour to take my mother to the doctor, plan as best you can for how you make and help women feel less alone in their the pharmacy and lunch, helped my space in your life and your career to experience, Liz O’Donnell started Work- father fix something on his computer, balance family and work. ing Daughter, a community for women drove back home (and ran over a large balancing eldercare, career and more. branch on the way) and then went to • There is an upside to caregiving called Founded in 2015, Working Daughter speak at an event about the challenges the caregiver’s gain. I experienced this aims to foster this community of women working mothers face. Driving home myself and also found research to sup- by highlighting the common challenges exhausted around 11 p.m., I thought to port it. Professors from Johns Hopkins they all face while recognizing the long- myself, “What about the working daugh- University and University of South term benefits. O’Donnell is also the ters? Who is taking care of us?” That’s the Florida have done interesting work author of “Mogul, Mom, & Maid: The moment the book started writing itself. looking at the physical and emotional Balancing Act of the Modern Woman” benefits caregivers often experience – and, more recently, “Working Daughter: What did you learn about yourself like greater physical strength, greater A Guide to Caring for Your Aging Par- while writing “Working Daughter”? cognitive functioning and enhanced ents While Making a Living.” Balancing self-esteem. Caregiving is difficult and eldercare, motherhood and a full-time I had to live the book before I wrote it. In stressful to experience, but it can be a job, O’Donnell shared with us her story summer 2014, both of my parents were positive experience at the same time. through it all. diagnosed with terminal illnesses on the same day, and the rest of that year was • Your life never looks the way you What inspired you to write “Working so intense. I dealt with doctors, man- thought it would. Planning is key for Daughter: A Guide to Caring for Your aged moves to memory care and hos- pointing you in the direction of your Aging Parents While Making a Living”? pice, hired an elder law attorney to sort goals, but adaptability is critical for through wills and bills – all while trying facing challenges along the way. I In fall 2013, I had just published my first to stay employed and present in my chil- had to let go of how I thought my life book, “Mogul, Mom, & Maid: The Balanc- dren’s lives. Writing the book helped me was supposed to look and accept how ing Act of the Modern Woman,” about the reflect on the experience. Here’s what it was in order to find happiness and impact housework and childcare have on I learned: fulfillment despite the challenges. women’s careers. While I was busy pro- moting that book, my parents started to • There is no avoiding eldercare – What are the greatest challenges of need more care. They were in their 80s, the only way through is through. It the working daughter experience? and my husband and I were helping behooves everyone to start planning them with doctor appointments, grocery for eldercare because most of us will Balancing eldercare and career is hard! shopping, chores around the house and be called on to be caregivers at some Eldercare is unpredictable – there is no bill pay. There was one particular day that point. Talk to your parents about their timeline to follow, and it is emotional. started before 6 a.m. – I woke up and end-of-life goals; encourage them to Working daughters, and sons, are facing

8 | Women & Wealth Magazine illness, aging and end of life. Many matters most to you. Identify your “A fun way to inspire children's imagination are performing complex medi- own definition of success, be realis- and creativity!” cal tasks when they go home at tic about where you can thrive and – Serena Williams the end of the workday. Working where you might need to glide for daughters often switch to a less a while, know what your long-term demanding job, take time off or financial requirements are and then quit work altogether to make time set your own course. Don’t worry for caregiving duties. As a result, about how other people define suc- they lose an average $324,044 in cess or what they think you should LEARN THE ALPHABET THROUGH FINE ART! compensation due to caregiving. be doing. Create your own plan and Sabrina Hahn’s latest book, “ABCs of Art,” helps parents to We have a long way to go as a coun- adapt as you go. spark their children’s creativity and curiosity with a delight- try in how we support working fam- fully curated alphabet book featuring some of the world’s most ilies, and we are only now starting What issues do you believe need iconic paintings. to have meaningful conversations a spotlight? Is there a next book? about how we support workers In this collection, children discover artwork by Leonardo da with parents, not just workers who We need to keep a spotlight on Vinci, Vincent van Gogh, Mary Cassatt and many others. Parents are parents. But I am encouraged eldercare. There are currently 44 can work with them to locate the earring in Johannes Vermeer’s that we are starting to have those million family caregivers in the “Girl with the Pearl Earring,” teach them different colors while conversations. With 10,000 people United States. As I mentioned, there examining Claude Monet’s “Water Lilies” and count the pieces turning 65 every day in this country, are 10,000 people turning 65 every of fruit in Paul Cézanne’s “The Basket of Apples.” we have to. day in the United States, and we are facing a shortage of caregivers. The With a fun rhyming scheme and large, colorful text, “ABCs of You mentioned your first book, AARP predicts that by 2030 we will Art” will inspire budding art lovers as they learn the alphabet “Mogul, Mom, & Maid: The need between 5.7 million and 6.6 and new words by finding objects in paintings. Then, as their Balancing Act of the Modern million caregivers to support the children grow, parents can read the playful poems aloud along- Woman.” Does that book repre- sick and aging. Family members side them and answer the interactive questions that accompany sent a different chapter of your will be called on to fill that need. each painting. life experience? What is your best While the average caregiver is a advice for the “modern woman” woman in her late 40s, 40% of on how to manage the daily bal- family caregivers are men, and 25% ABOUT THE AUTHOR ancing act? are millennials. We need to create Sabrina Hahn is an art collector, art dealer and curator. She policies, resources and support sys- graduated from Harvard University with a B.A. in history of While “Working Daughter” is part tems to help these caregivers stay art and architecture and minor in economics and is a grad- memoir, “Mogul, Mom, & Maid” in the workforce. uate of the Horace Mann School. Hahn is an active sup- isn’t about me. I was interested in porter of artists, museums and public art installations as an the data that showed women do As far as another book, I will know art patron, serving on the Guggenheim Young Collectors more housework and childcare on what it is when it starts writing Council Acquisitions Committee and MoMA Junior Asso- average than men, and I wanted itself. But one of the things I am ciates. As an art influencer, she was named one of Town & to look at how that affected their thinking about is that we can’t Country’s T&C 50: New Modern Swans. Hahn lives in New careers. When we talk about help- think about caregiving as an event. York and enjoys sharing curated content on Instagram ing women advance in their careers, Someone has a baby, takes leave @HahnFineArt. we tend to focus on what’s happen- and returns. The event is over. ing in the office, but we need to Someone’s parent gets sick, they look at what’s happening at home take time off and return. The event BACKSTORY too. How do we support people at is over. It’s not that simple. There Hahn cares deeply about arts education and helping to make work and at home so that they can is a continuum of care that affects art more accessible to people of all ages and backgrounds. have personal lives and careers? workers. My own experience has Art has opened up the wonders of human imagination and And eldercare has to be part of been working mother, working creativity to her – it has always been a unifying thread in her that discussion. daughter, caregiver to my spouse life and encouraged her to observe the world with a layered and, now as a new widow, single perspective, from childhood when she explored museums with My best advice – whether you parent to two teens. And mine isn’t her mother, also an art lover, through university as an art history are raising children, caring for an an uncommon story. So how do major delving into the creative output of artists across societies aging or ill relative, making space we – employers and employees – and eras. Engaging in art history introduced Hahn to diverse to volunteer for an organization align career and care across cultures and enriched her understanding of how people have or issue you care about or training the continuum? viewed and captured the world around them. Grateful for her for a marathon – is to know what mind-expanding experiences with art, she believes that art can touch everyone and hopes that “ABCs of Art” will inspire the next generation of artists and art lovers.

Fall 2019 | 9 | BY THE NUMBERS WOMEN BREAKING DOWN BARRIERS Women are taking great strides in professional leadership: 52% of management and professional-level positions are held by women, and 11% are top earners. In this issue’s infographic, we look at women leaders across industries who are making history.

WOMEN IN THE C-SUITE WOMEN ON BOARDS WOMEN IN FINANCE WOMEN IN STEM WOMEN IN RETAIL WOMEN IN EDUCATION

Organizations with gender-diverse Rise in women executives In 2017, women held 18% of The retail industry has the Number of women executive leadership are more in financial services over STEM leadership roles highest percentage of women university presidents % likely to outperform on past five years % 1966 2016 24 profitability and value creation CEOs 12 Increase % % 17.6% in women 21 27 31% C-suite professionals over past The financial industry has Women in the % 70 years the highest percentage software and CFOs 19 of women in top positions % past 40 IT leadership 27 years hires rose C-Suite 31% Fortune 500 S&P 500 boards with at least 33 women CEOs three women directors CHRO 65% % % Female-founded 9 30 2016 2019 CMO 53% tech companies % % % Increase in women 37 56 CIO/CTO perform 63 25% better % CMOs over past Modeling 28 six years and leading by with a example are key 35% higher return on capital than male-founded tech companies

U.S. women with working mothers earn 23% more than women whose mothers did not work

Sources: “Females in the US Workforce.” Catalyst, June 5, 2019. https://www.catalyst.org/research/women-in-the-workforce-united-states/. “Guide for Women in STEM.” Discover Data Science. https://www.discoverdatascience.org/resources/guide-for-women-in-stem/. “The Data on Women Leaders.” Pew Research Center’s Social Demographic Trends Project, September 13, 2018. https://www.pewsocialtrends.org/fact-sheet/the-data-on-women-leaders/. “Women C-Suite Ranks Nudge Up-a Tad.” Korn Ferry, April 24, 2019. https://www.kornferry.com/institute/women-in-leadership-2019-statistics. “Women in Business: The Complete History.” All Business Schools, 2017. https://www.allbusinessschools.com/business-administration/women-in-business/. “Women in Science, Technology, Engineering, and Mathematics (STEM): Quick Take.” Catalyst, June 14, 2019. https://www.catalyst.org/research/women-in-science-technology-engineering-and-mathematics-stem/. “Women in the Workplace 2018.” McKinsey & Company, October 2018. https://www.mckinsey.com/featured-insights/gender-equality/women-in-the-workplace-2018. "Five takeaways from the 2019 proxy season." EY. July 2019. https://www.ey.com/en_us/board-matters/ ve-takeaways-from-the-2019-proxy-season.

10 | Women & Wealth Magazine WOMEN BREAKING DOWN BARRIERS Women are taking great strides in professional leadership: 52% of management and professional-level positions are held by women, and 11% are top earners. In this issue’s infographic, we look at women leaders across industries who are making history.

WOMEN IN THE C-SUITE WOMEN ON BOARDS WOMEN IN FINANCE WOMEN IN STEM WOMEN IN RETAIL WOMEN IN EDUCATION

U.S. women with working mothers earn 23% more than women whose mothers did not work

Sources: “Females in the US Workforce.” Catalyst, June 5, 2019. https://www.catalyst.org/research/women-in-the-workforce-united-states/. “Guide for Women in STEM.” Discover Data Science. https://www.discoverdatascience.org/resources/guide-for-women-in-stem/. “The Data on Women Leaders.” Pew Research Center’s Social Demographic Trends Project, September 13, 2018. https://www.pewsocialtrends.org/fact-sheet/the-data-on-women-leaders/. “Women C-Suite Ranks Nudge Up-a Tad.” Korn Ferry, April 24, 2019. https://www.kornferry.com/institute/women-in-leadership-2019-statistics. “Women in Business: The Complete History.” All Business Schools, 2017. https://www.allbusinessschools.com/business-administration/women-in-business/. “Women in Science, Technology, Engineering, and Mathematics (STEM): Quick Take.” Catalyst, June 14, 2019. https://www.catalyst.org/research/women-in-science-technology-engineering-and-mathematics-stem/. “Women in the Workplace 2018.” McKinsey & Company, October 2018. https://www.mckinsey.com/featured-insights/gender-equality/women-in-the-workplace-2018. "Five takeaways from the 2019 proxy season." EY. July 2019. https://www.ey.com/en_us/board-matters/ ve-takeaways-from-the-2019-proxy-season.

Fall 2019 | 11 | PHILANTHROPY & WEALTH PLANNING

Resilient Estate Planning in the Face of Unexpected Life Events By Alison Hutchinson, Senior Wealth Planner, and Stacia Kroetz, Wealth Planner, BBH Private Banking

12 | Women & Wealth Magazine itting down with an estate plan- Tax efficiency in estate planning has tradi- ning attorney means investing a tionally meant making large gifts during significant amount of time and life, leaving everything above your remain- energy learning technical legal ing exemption amount to your surviving Sand tax strategies, options and implications. spouse at death and holding assets in trust, The initial meetings will outline the value of rather than distributing them outright. It is just as, if trusts, how much you can give and what However, there are many reasons why tra- “ vehicles can protect assets from creditors ditional approaches to tax efficiency might not more, and shelter them for heirs. These are clearly not make sense for your situation. For exam- important issues worthy of thoughtful con- important that ple, if your plan contemplates the transfer sideration; however, at times, “estate plan- of assets to grandchildren and more remote ning fatigue” sets in, and a larger point is left descendants, it is impossible to know how the legal doc- unstated and unaddressed: The estate plan traditional planning may affect these indi- will mature at an unknown and unknowable viduals and how the plan might work for (or uments create moment in the future. Because it is virtually against) them. Layering on charitable intent, impossible to know with certainty the point both yours and that of future generations, a plan that is at which an estate plan will go into effect, adds complexity. it is impossible to know the exact legal and flexible enough tax landscape in which the plan will need 2. Build Flexibility into Your to operate. Further, we cannot predict the Plan to reflect your health, well-being or financial position of family members or unborn descendants The future is unknown. Premature death, values and who may benefit from the vehicles set up in disability, natural disasters, significant finan- the estate plan. For these reasons, tax and cial success, addiction, divorce and tax law accomplish trusts are mere pieces of a well-rounded plan. changes are all possible future events, yet It is just as, if not more, important that the traditional tax planning assumes all families your goals both legal documents create a plan that is flexible share the same future, goals and values. enough to reflect your values and accomplish While advanced estate tax planning is a com- now and into your goals both now and into the future. In plex subject matter, less than 3% of failed other words, the plan must be resilient. wealth transfers are due to poor investment, the future. In legal or tax advice, according to a study by The Williams Group. The vast majority of fail- 1. Be Tax-Aware, Not Tax-Driven other words, the ures in this area, where failure is defined as a A resilient estate plan should be informed, loss of family control over the wealth, are due plan must be but not necessarily controlled, by tax to more nuanced causes, like the breakdown planning. of family communication and trust, inade- resilient.” quately prepared heirs and lack of estab- The federal estate tax rate is currently at lished family mission, values and goals. For 40%, with an exemption of $11.4 million these reasons, where wealth preservation is per individual transferor. The gift and gener- a goal, it is crucial to construct an estate plan ation-skipping transfer tax rates and exemp- that enables you and your family to adjust tions are the same. In some states, a separate as circumstances change. Without flexibility, state-level estate tax can boost the total tax even the most technically sound estate plan to over 50% on transfers greater than $11.4 may become obsolete in the face of reality. million. Absent legislative change (which is never a given), the federal exemption for A resilient estate plan may include some or each of these taxes is scheduled to decrease all of the following features: from $11.4 million today to approximately $5 million, indexed for inflation, on January 1, Discretionary (rather than mandatory) 2026. Clearly, tax efficiency is of major impor- distributions. A common strategy where tance in an estate plan. an estate plan contains trusts is to direct

Fall 2019 | 13 | PHILANTHROPY & WEALTH PLANNING

the trustee to pay some or all of the trust has spent down her personal assets, because estate to a beneficiary when that beneficiary she feels that the beneficiaries of the trust reaches a certain age or ages (for example, have been given enough or for any number one-third at age 30, half at age 35 and the of other reasons. Whatever the reason or balance at age 40). A more flexible approach change in circumstances, the ability to turn is to provide that the trustee may make a off this tax treatment, thus making the trust distribution to the beneficiary at any time, responsible for payment of its income taxes, for any reason, taking into account the ben- is one way to increase the plan’s flexibility. You can hedge eficiary’s other financial resources, goals and life circumstances at the relevant time. This Spousal access trusts. Under current law, “ way, if, for example, a beneficiary is going spouses may transfer an unlimited amount against this risk of through a divorce at age 39, the trustee is to each other. This “marital deduction” from loss with a robust not required to make a distribution into a estate and gift tax merely recognizes a real- personal account that may end up outside ity of everyday life: Spouses are constantly communication the immediate family. Giving a trustee this making transfers to and from individual and much control over a trust fund means that joint accounts, changing the title on deeds plan that estab- selection of the individual or institution is and transacting together and between one critical. More on that to come. another. The Internal Revenue Service (IRS) lishes the family’s has decided that these are not taxable trans- Grantor trusts, with the ability to “toggle” fers worthy of reporting. However, when mission, builds the grantor status. Another common estate an individual makes a significant transfer planning strategy is to create trusts where to a non-spouse beneficiary, the IRS looks and retains trust the settlor, or grantor, of the trust is required to account for and, for transfers over $11.4 to pay the trust’s income tax bill. This is a very million, tax those transfers. For this reason, a and adequately tax-efficient strategy because it allows the common tax-efficient strategy is to transfer trust fund to grow income tax-free for the up to $11.4 million to an irrevocable trust prepares heirs to benefit of the trust beneficiaries. This is one for a non-spouse beneficiary or beneficia- way of transferring assets from one genera- ries (typically, descendants). If, however, the become stewards tion to the next that is not currently subject original transferor falls upon hard times and to gift tax and will not use up exemption. can no longer support herself, that $11.4 mil- of the family’s However, due to changes in circumstances, lion transfer is truly irrevocable. Her children some grantors decide that they no longer and grandchildren may be wealthier than her wealth.” want to be on the hook for a tax bill gener- (and they may not be interested in sharing)! ated by a trust of which they are not a bene- If, however, her spouse was included as a ficiary. This may happen because the grantor permissible trust beneficiary, there would

14 | Women & Wealth Magazine be an escape hatch of sorts where the trustee could who knows you and your family well and whose return assets to the original grantor through a dis- judgment you trust. Even more valuable would tribution to her spouse. This is certainly not the be a letter from you to that fiduciary explaining most tax-efficient estate plan, since assets that in nonbinding (precatory) words what you envi- were formerly removed from the original grantor’s sion the funds should be used for and providing taxable estate would be returned to her spouse, nor general guardrails for distributions. For example, is it an airtight method of “saving” a transfer that “distributions should be made to support entre- was too large (what if, for example, the original preneurial behavior, but requests for this type of transferor divorces the spouse, or the spouse pre- distribution should be supported by a budget and deceases her). The future is unknowable! However, business plan.” the peace of mind in knowing that there could be a way to get back assets in the event of a change in 3. Select Your Fiduciary with Care financial circumstances can be incredibly valuable. To develop a resilient estate plan, carefully consider who will act as your fiduciary. Given the duties Precatory (that is, expressing a wish or inten- associated with the position – and in the case of tion) rather than mandatory language within a trustee, the level of discretion connected to a trusts; letters of intent. Traditional estate plans flexible, long-term trust – the choice of who will would sometimes contain carrots for good behav- serve in this role, and the amount of information ior; for example, for every dollar of income the ben- you provide to this individual or institution at the eficiary earns, the trustee shall make a “matching” time you create and execute the plan, might be the distribution from the trust fund. They also occa- most important decision you will make throughout sionally included sticks in order to discourage “bad” the estate planning process. behavior – for example, distributions for uses other than education may be made only once the bene- First, you should understand what your fiducia- ficiary has earned a bachelor’s degree. The values ry’s responsibilities will include. There are many these types of restrictions seek to encourage are professional and procedural jobs a fiduciary must objectively good – earning one’s own income is complete in addition to the perhaps daunting task rewarded (by a dollar-for-dollar increase in pay of managing family dynamics and requests for dis- from the trust), and education is important. How- tributions. Every state has a different set of laws, ever, what about a brother and sister, one of whom but in each state, failing to fulfill one’s fiduciary is a teacher with a low income (but contributing sig- duties can result in a lawsuit and personal liability. nificantly to improvement of local education) and the other a corporate attorney with a high income A fiduciary must review and understand the doc- who has no time to spend it? Were the grantor alive, ument by which she is appointed – a last will and she might say that these two high-achieving sib- testament or a trust agreement. This will likely lings should receive equal distributions, or even require some guidance from an attorney in the case that the teacher should receive more, in order to of an individual fiduciary. The fiduciary must also supplement a salary that is not enough to make identify and understand the assets of the trust or ends meet in a high-cost city. If the restrictive lan- estate because she will be responsible for manag- guage is built into the actual trust agreement – ing those assets, which may be as simple as hiring the written document signed by the grantor and a financial advisor to invest cash or as complicated the trustee – the trustee may have a difficult time as running an operating business until a competent modifying the distribution standard. If, however, successor is identified. Therefore, it is important to the trust agreement provides that the trustee may consider what your assets are and who would be make distributions at any time for any reason, then best positioned to manage them in your absence. the trustee is able to make decisions about the Filing tax returns and preparing accountings of use of trust funds using facts the grantor did not trust and estate activity also fall to the fiduciary have at the time she signed the trust. This again and will likely require professional assistance. points to the importance of choosing a fiduciary

Fall 2019 | 15 | PHILANTHROPY & WEALTH PLANNING

On the “softer” side, a trustee is required to with the job, as well as the values you wish to act in the best interests of the beneficiaries, pass on to future generations through your to be impartial to the extent there are con- estate plan. flicting interests among beneficiaries and to 4. Identify Your Values communicate with the beneficiaries. These A hallmark of an duties become particularly relevant where a A hallmark of an enduring estate plan is that trustee has authority to make discretionary it is built around core values – the “why” “ distributions to one or more beneficiaries. behind estate planning decisions. enduring estate Beneficiaries may request distributions, fight plan is that it is amongst each other about distributions or A good place to begin is with a family time- have differing opinions on how trust assets line, identifying how values have shaped your built around core should be invested – and the trustee may find family’s history and listing and prioritizing herself in the middle of these disagreements. the items that truly matter to you. What values – the ‘why’ recurring values-based messages did you People often name family members as hear growing up? What messages do you behind estate fiduciaries because it is a common choice want to pass along to the next generation? and because those are the people we trust Where do you spend your time and your planning deci- most; however, in selecting a fiduciary, it is financial capital? important to consider not only the profes- sions. Therefore, sional responsibility and liability associated Next, start building a plan around those with the position, but also the dynamic you values. For example, if you want your kids to tax efficiency want the trustee to have with the beneficia- be philanthropic, it is best not to simply leave ries. It may be a family member, or it may them a pool of charitable assets and expect alone is not be a corporate fiduciary that will not face them to operate a foundation without any personal or emotional angst as a result of prior guidance. In their younger years, com- sufficient.” its objective decisions. One option that rep- municate about how and why you give, and resents a middle ground is to give a family include them in your site visits and charitable member you trust the power to remove and giving decisions. With this approach, your replace a corporate trustee. Whatever your values will be instilled in the next generation decision, it is good practice to communicate organically. They may take an interest in a with the person or entity you wish to name different type of charity, but they will carry to ensure that everyone is on the same page on your legacy of philanthropy. about the role and responsibility associated

We believe the following six guiding principles can help families create life-affirming, enduring, effective wealth plans: • Communication and trust are critical to preserving family wealth and values

• Raising financially responsible children is a lifelong endeavor

• Children should be allowed to take risks and make independent decisions

• Everyone should be at the table

• Privacy should be respected, but secrets are risky

• Children learn by watching their parents

For more details, read our article that explores the six guiding principles on bbh.com, “What We Believe: Principles of Successful Wealth Planning.”

16 | Women & Wealth Magazine 5. Communicate with Your Family Choose the best time to share. Choose a time when family members are receptive and The estate planning process involves not your stories will be heard. only what goes into the plan, but what you do with it once it is complete. In this regard, Record your stories. As you think about communication with family members is vital. and share the stories that have influenced In fact, without effective, thoughtful commu- your values, record them in writing or nication, your family risks losing control of video. This process helps to preserve past its wealth, which happens to approximately experiences and formative moments for 70% of families by the second generation, your descendants. according to The Williams Group’s study refer- enced earlier. In 97% of those cases, the loss For more on the criticality of intergenera- of control related to a lack of communication. tional communication around wealth values, Meanwhile, as noted, poor legal, tax and/or read our fall 2017 feature article, “Love and investment advice was to blame in just 3% Money: Why Communicating Values Matter.” of cases. Conclusion You can hedge against this risk of loss with a robust communication plan that establishes Successful estate planning is about more the family’s mission, builds and retains trust than tax efficiency. One way to mitigate the and adequately prepares heirs to become unpredictable nature of the future is to create stewards of the family’s wealth. a resilient plan that meets your family’s needs through succeeding generations. You can Start with storytelling. What family stories achieve this by embracing flexibility, center- have shaped your values? Share these stories ing your plan on your values and communi- with your children and other family members cating with your fiduciaries and your family. to honor the experiences of those who came before.

Create family traditions. Traditions are a way to bring your values to life, which helps the next generation carry them into the future.

Fall 2019 | 17 | BUSINESS & INVESTING

Growing into Future the By Jules Pieri An excerpt from Co-Founder and CEO, The Grommet Jules Pieri’s book,

“How We Make Stuff Now”

18 | Women & Wealth Magazine Here are a few ways you might think about product line extensions:

• Good, better, best. You might consider “knocking yourself off” to pre-empt competition and to have Growinginto the Grommet Makers enter their businesses with wildly an appropriate value/price point for various tiers different ambitions about growth. Some never intend of retailers. Future to leave their day job but want to have an engaging side By Jules Pieri hustle. Some Makers know from the start that they plan • Adding SKUs. For some products, adding addi- Co-Founder and CEO, The Grommet for their first product to be a springboard to a full-time tional SKUs is the fastest way to create an engaging endeavor and sustainable business. Others hedge their display at retail. bets with a “wait-and-see” attitude. • Adding related products. Ideally you will have Because the obstacles to growth are unique to every anticipated a full line of products right from the company and the ambitions of the founders are equally start so that your company name and visual iden- diverse, there are few universally true growth hacks. tity can easily accommodate line extensions. This But for the Maker looking to scale, cycling through the is harder said than done, as so many Makers start below pool of options is a productive place to start. with one genius problem solver and do not foresee “what’s next.” Create New Products • Building exclusive SKUs. [O]ne of the most pow- This scaling option is equal parts necessary, expensive erful tools to increase a retailer’s purchase order is and fun. It’s fun because the joy of creating products to offer them an exclusive range of your product. is why you get into this business in the first place. It’s expensive, in the same way developing the original Licensing product was. It’s necessary for a host of reasons: to stay Some Makers take their product to a limited point of ahead of the competition, to command more shelf development and then license their intellectual prop- space and thus open up retailer doors, to create more erty to a larger company. [I]n virtually all categories of scale in the business to cover your fixed costs. Twice the retail, the large players who have a private-label busi- products to sell can mean twice the revenue. ness are actively engaged in licensing IP. Tradeshows are the fastest and least expensive way to get a face-to-face meeting with a potential licensor. Outside trade shows, identifying the company matches and the right person at the target company will require research. Contact the legal department (they handle the backend of these contracts), and they can refer you to the appropriate person/team.

Fall 2019 | 19 | BUSINESS & INVESTING

“My own playbook for figuring out the next moves for The Grommet is largely based on continually asking people in my network what is working for them. The problems of scaling are universal, but the solutions can be quite creative.”

Typically, Makers who gain a successful license have Trade Administration, through its U.S. Commercial Ser- begun to produce their product and have gained some vice, operates a network of 107 Export Assistance Centers distribution before a licensing deal will be struck. The in major cities across the country. The export and industry licensor will quite often redesign and re-engineer the specialists employed there can help you find appropriate product to take out costs or improve its commercial distributors in your target markets.” appeal. They will take over its manufacturing and usu- ally give it a new brand identity. The Maker thus puts Low(ish)-Cost Marketing Initiatives for the future of their product in the hands of the licensor. Scaling [S]ome options for building the business become a bit Successfully licensing a product can open doors to sim- more viable with growth. ilar future licenses, and some Makers happily stay in the realm of “serial inventor” rather than business builder. • Hire a PR firm or consultant. A public relations firm Hire an International Distributor is an expensive option … expect to pay $5,000 a month. But a part-time independent contractor While Makers are highly variable in their use of reps for can take on your PR outreach work for a fraction sales in their home country, it is the rare Maker who of the cost. does not engage an international distributor. These distributors are dedicated to one or many countries and • Build a content machine. [G]enerally speaking, have retail reach that a Maker would have a hard time content pros are affordable and a great move as accessing on their own. The contracts can be exclusive soon as you can contract them. Just make sure their or nonexclusive on a country-by-country basis. content execution is tied to the SEO goals you have established for your business so that the content Key questions to ask an international distributor include: really does drive inbound traffic to your site or to the retailers who stock your product. • Which brands do you represent, and what are the sales volumes by country? • Set up an ambassadors program. Once you have a bit of bulk in your customer list, there will be fans • Where do you sell these products? of your company and products who will be natural candidates to become volunteer spokespeople and • What are the minimum sales volumes I can expect amplifiers of your mission. This effort is a cousin to a in XYZ country? perks/rewards and referral programs. Rewards and referrals are especially effective for a business which • What support do you expect from me? expects a frequency of purchase.

• Will I get paid at time of shipping my goods? Raise Capital If you have a business that is already scaling with a clear • Ask for an example engagement contract (and get path to profitability and an attractive set of options for good counsel on term and termination). an exit, taking on equity capital could become a viable choice. However, the most frequent way Grommet In terms of finding an international distributor, a good Makers do this is with a series of crowdfunding cam- place to start is with the federal government. David paigns. These campaigns are spaced out in terms of years, Archer, president of International Business Trainers, not months, and require a level of attention and focus relates, “[T]he Department of Commerce’s International that makes the funds anything but free money.

20 | Women & Wealth Magazine Double Down on Retail Distribution Beyond building your wholesale business via reps, distributors, exclusive products and tiered good/better/ best product extensions, there are three other routes to building your retail footprint.

• Pop-up stores. Holiday markets are one traditional expression of this opportunity. On a more year-round basis, LovePop has created a network of kiosks in train stations and malls where customers can touch and feel their products and be constantly updated with new designs. There is a whole industry forming to fill the excess retail space across the U.S. In addition, real estate companies building and managing mixed use developments are looking to enliven the streetscape of their projects and local areas. Scaling is, by definition, a never-ending activity for the business. • Established retailers have started to capitalize on their foot traffic and real estate locations by renting My own playbook for figuring out the next moves for The space to brands. Grommet is largely based on continually asking people in my network what is working for them. The problems • Your own stores. Examples of DTC companies of scaling are universal, but the solutions can be quite expanding into physical retail are rampant. While on creative. In a fast-moving world of marketing platforms, the one hand I am convinced of the brand-building technologies and shifting consumer behaviors, we can benefits of these shops, these companies tend to easily miss trends and opportunities. As a CEO, I find also have deep bank accounts funded by venture myself heading out to events with a general sense of capitalists so the economics of these stores may be dread and “I am too busy for this” and almost 100% of the quite warped by that unusual condition. time come back with a new idea or important contact. I have learned to trust the universe and the likely benefits of these efforts.

And sometimes – the best times – the real magic happens when you just try something that you haven’t seen anywhere, and that novelty or special arbitrage opportunity puts unexpected wind in your sails, and you ride that condition as long as you can or until others discover it.”

This article is an excerpt from Pieri’s recent book, “How We Make Stuff Now.” For more information, visit howwemakestuffnow.com.

Fall 2019 | 21 | FIVE QUESTIONS WITH... MAURA CUNNINGHAM

➊ Tell us about why you decided to form Rock The Street, Wall Street (RTSWS).

In a word, aloneness. I was often the only woman in the room, or part of the same small group of women each year, at national financial industry conferences. This was true for 25 years. After retiring from the industry, I thought, “What could have been better about my experience in finance?” And it came to me – more female colleagues and friends. I believe that I would be a different person today if I had more women around me at work, rather than always being the sole female. In my practice, too, I noticed that no matter how hard I tried to get my clients’ wives or daughters interested in the financial affairs of their family, they’d brush it aside with a comment like, “That’s for the men.”

I started examining the reasons behind why there are so few women in the industry. I went back to graduate school to pursue a master’s degree in civic leadership, thinking I would find out why and when girls lose interest in finance. My thesis examined why girls’ interest in math starts to wane at age 9 in the U.S. I researched the cultural influences behind this problem, which is unique to America and Western Europe – they don’t have this problem in China, Russia and East- ern European countries. I implemented a community solution, which was a financial literacy program designed to re-engage girls with math in a more tangible way. What was once a one-time experiment is now a national nonprofit organization with programs in 28 high schools across 15 cities.

22 | Women & Wealth Magazine ➋ RTSWS makes the M in STEM more companies whose products they consume. and we provide visibility into the type of approachable to students by giving them Our alumnae tell us that they used to tune job opportunities that exist. Our mentoring the resources, tools and education to close out of math because it was mostly irrele- program is quite powerful, enabling girls to the gender gap in finance. Why do you vant, boring word problems. Now, they find receive 1-to-1 or 2-to-1 guidance to answer think many girls and young women lack themselves following the news and under- their questions about choosing the right confidence about finance and math? standing the usefulness of what they are college or career path, finding internship learning in math class. It’s critical for them positions and addressing other curiosities A combination of societal influences in to understand that finance isn’t archaic and they have about finance careers. the U.S. stacks the deck against girls when mysterious; we provide context for how it comes to math. Unconscious biases are finance affects their personal lives and the It’s an encouraging, supportive environ- ingrained in parents, teachers and kids. At role that it plays in supporting their families, ment that allows girls to speak – and think home, many parents still encourage their communities, businesses and governments – more freely than they might in a mixed sons to study math and science and their across the globe. gender classroom. daughters to pursue dance and literature. In elementary school, many teachers – 90% The next generation entering the workforce What advice would you give your of which are female – have little to no cer- – both girls and boys – is passionate about ➎ younger self? tification in math. Teachers will even say, “I social activism. To attract younger talent, the hate math.” Their “math anxiety” transfers financial services industry must do a better I would say, “Have a headset of abundance, to the girls in the room, but not the boys. job of demonstrating how it contributes to rather than a headset of scarcity.” When I was (There are 12-year longitudinal studies on improving communities and emphasize on Wall Street, women worked under the this by the University of Chicago.) The girls how employees can help “make a difference” assumption that there was room for only one begin to think that it’s socially acceptable in their roles. When you provide that con- of us at the top, because there were so few of for them to opt out of math. nection, it changes perceptions. Regardless us. A headset of abundance creates a more of the career path they ultimately pursue, easygoing atmosphere in which to work. By high school, girls develop a mindset we arm girls with the knowledge that under- We need to have a little more fun with work. where they say to each other that they “can’t standing the basics of finance gives them Network more with other women at work do math” and see their girlfriends downplay- power – both personally and professionally. – reach out to a female colleague to grab ing their math competencies. By college, lunch, play tennis or find another fun activ- this results in girls opting out of finance Why do you think a dispropor- ity outside of work that can help strengthen and economics classes – women represent ➍ tionate number of RTSWS’s graduates your relationships. Another option is to find only one in 10 students in these classes. I go on to pursue a career in finance or group volunteer opportunities. Each of our have an employee who graduated from col- economics? schools has a sponsor – and that company lege a few years ago, and she was the only typically supplies most of the volunteers for female in her calculus class of 50 students Part of the problem is that girls avoid that program; our volunteers tell us that they at a university with more than 25,000 stu- math and finance because they don’t see not only enjoy the feel-good benefit, but it dents! When I was in college, I was the only women in the field and don’t see their gives them a chance to meet and connect woman among a class of 35 men, so the girlfriends selecting it as an option. Our with other women in the firm who work in needle hasn’t moved at all. program is intentional in its female-centric different departments. approach – all the volunteers who teach Girls need more visible female role models our classroom-based workshops and serve who can encourage their math interests, as mentors are women working in finance show them that much of finance is noth- roles. This approach provides girls with ing more than first-year algebra and provide real role models to whom they can ask a realistic picture of what a math-oriented pointed questions and offers the social career looks like. infrastructure to start them on their future career journey. What advice or experiences do ➌ We create an environment that counters you share with girls and young women the negative perceptions of finance as to encourage their interest in financial a “man’s world.” In addition to teaching literacy? financial literacy, we help girls separate It’s all about relevancy. When researching fact from fiction about women in finance my thesis, I conducted 24 field interviews – for instance, how financial institutions with academics, who repeatedly stressed with a more diverse workforce in key roles, the importance of relevancy when teaching. such as portfolio managers, tend to out- We refresh our curriculum every summer perform those that don’t. Girls leave the and pull in news headlines on issues that program understanding that the financial our students are concerned about and on industry desperately needs more women,

Fall 2019 | 23 | SPOTLIGHT Fifty Years of Family Business A Conversation with Cervera Real Estate

Provide exceptional service, and you will be successful. That’s real estate maven Alicia Cervera’s advice when it comes to best serving clients, and it appears to be working. Over the past 50 years, she and her two daughters, Veronica Cervera Goeseke, CEO, and Alicia Cervera Lamadrid, managing partner, have built and grown Cervera Real Estate into a leading Miami-based real estate company, which has represented exclusively more than 120 luxury buildings in the city and has multiple offices to handle its luxury real estate resale business. The company’s success is built on long-term, trust-based client relationships, half a century of understanding the local market in Miami, understanding cultural nuances in a diverse city and a commitment to strong family values. We recently sat down with Alicia Cervera, Veronica Cervera Goeseke and Veronica’s daughter Alexandra Goeseke Cervera. Alexandra and Alicia Lamadrid Paysse, another third-generation member, are already asserting themselves as the next generation of leaders. During our conversation, we spoke about playing the long game when it comes to best serving clients, navigating the complexities of a family business and planning for succession. I should have bought more for myself. My grandmother always said that a woman who owns real estate is a wealthy woman. We spend all More from this interview can be found in the third quarter 2019 issue our time nurturing others, but we also need to nurture ourselves, and of Owner to Owner, available on bbh.com part of that involves protecting ourselves financially and nurturing Brown Brothers Harriman: Alicia, what has been the most reward- our assets. What better place to start than real estate? ing part of the journey? I also would have been more of a risk-taker, which I guess is related. Alicia Cervera: For me, the most rewarding part is always when Alexandra Goeseke Cervera: I will get back to you in a few years! women approach me on the street and say, “I’m so glad to meet you in person because you did so much for women.” It warms my AC: I would tell myself to enjoy life. Life is a precious gift, and you heart to hear that I have opened so many doors and inspired people. have to learn how to enjoy every second.

BBH: What advice would you give your younger self? Interview conducted by Jake Turner and Kaitlin Barbour, and article written by Kaitlin Barbour. Veronica Cervera Goeseke: My advice to my younger self would be that in the process of having sold so much real estate to other people,

24 | Women & Wealth Magazine BBH Partners with Rock The Street, Wall Street

While there are plenty of alarming statistics about how few girls literacy instruction, the Wall Street experience, which includes a choose to pursue careers in finance, Rock The Street, Wall Street BBH site visit, and mentorship pairings. (RTSWS) – a new Brown Brothers Harriman (BBH) charitable partner in New York – has a more encouraging statistic to share: RTSWS “The RTSWS partnership furthers our commitment to engage and graduates are four times more likely to pursue degrees in finance, support women as they create and manage wealth,” said Adrienne economics, accounting or related fields than the U.S. national average Penta, head of BBH’s Center for Women & Wealth. “Although women for undergraduate females. are increasingly controlling wealth, they often seek additional confidence when it comes to investing and finance. Programs like RTSWS RTSWS is a financial literacy program that provides financial and that engage girls and young women are critical to ensuring that investment education to high school girls to spark their interest in women are proactive in making financial decisions for themselves finance. As many girls opt out of math due to a lack of real-world and their families and that they sit at the table from the beginning.” role models, RTSWS elects to have female professionals teach financial and investment education – helping girls to see themselves in RTSWS programs provide a strong focus on the barriers that need financial roles. Participants learn about positive money manage- to be removed and the types of interventions that “lift” students’ ment habits and the capital markets while simultaneously experi- interest, commitment and ability to persist in the M of the STEM encing the real-world application of the math content they learn fields. RTSWS offers programming in 30 high schools across 17 cities, in the classroom. including New York, and more than 1,700 girls have completed the program since the organization’s founding in 2013. Over the past “We are extremely excited about our sponsorship of Millennium three years, RTSWS students have averaged an 88% increase in finan- High School, located just down the block from our New York office, cial literacy understanding from the start of the year to the end of and the collaboration between our BBH Affinity Network Commu- the year. nities (BANC) and BBHcares volunteers in support of this program,” shared Marla Barr, BBH’s head of diversity, inclusion and employee “With BBH backing our program, we’re able to influence the lives of engagement. “The school supports many dedicated high school more girls this year,” said Maura Cunningham, RTSWS founder and students within our beautifully diverse city.” CEO. “Creating a more robust pipeline of women entering finance must start in high school. Many girls adjust their college searches The partnership is part of BBH’s Sustainable BBH program, which is and their career direction after completing our program. And all of centered on the positive impact the firm is making through its ongo- them leave the experience with greater fiscal confidence that will ing commitments to clients, employees and communities. BBH BANC benefit them throughout their lives.” volunteers will partner with RTSWS on three programs: financial

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PB-03116-2019-09-26 Expires 9/30/2021