August 27, 2006

Women learning how to invest, manage money

By Marty Primeau

Lori Williams knows exactly what to do with all the financial statements that arrive in the mail.The 46-year-old Amarillo woman shoves the papers into a cute, peach-colored bag she periodically drops off at A.G. Edwards & Sons."When I sold my house, I realized I needed a financial adviser," the single mother of four said. "I'm just not good with numbers, and -- honestly -- I'm just not interested. But I know I should be."

Women's feelings about money was the focus of "Women, Money and Power" a recent study conducted by Harris Interactive. The survey involved nearly 3.200 adults, 1,200 of them men and 2,000 women.Although American women are increasingly better educated and likely to have careers, the study found they're still uncertain about their financial futures.When asked, "How secure do you feel financially?" only 10 percent of female respondents said they felt extremely secure."It was the most eye-opening aspect of the study," said Mark Zesbaugh, president and chief executive of Allianz Life, one of the study sponsors.

Women also are increasingly likely to find themselves responsible for managing their own financial affairs. Some never marry, others are divorced, and many outlive their husbands."I'm learning more and more to make myself ready for the future," said Jo Ann Cruz-Perez, a single working mother. "I can't be complacent because I don't have someone to lean on. I have to learn it."She has attended financial seminars and visited with a consultant to make sure she will have enough savings for her son's education and her retirement.

The role women want for themselves is changing, too, said Ken Dychtwald, an expert on aging and president of the Age Wave research and advisory service in California."The historical pattern was that men earned a family's livelihood, bought insurance, dealt with stocks and bonds," he said. "Women took care of the household and domestic finances."But women are taking on more of a family's overall responsibilities as they earn more and seek more equality in their relationships."It's a transition, like the time when women were first entering in the work force in large numbers in the 1960s," Dychtwald said.

Asked what the barriers were to getting involved in managing savings and investments, more than 40 percent of the women surveyed said a lack of knowledge was the biggest impediment. Others said they found finances to be confusing or said they were too busy with families or their careers."I'm the one picking up the girls from volleyball and taking the clothes to the laundry," Williams said. "I don't have the time."

They're also insecure, the study showed.For example, 51 percent said they were perceptive people, but just 13 percent said they were perceptive about money and investing; 46 percent said they were intuitive, but just 11 percent said they were intuitive about money and investing."When it comes to purchasing stocks, I'll point out that something looks good," said Kathy Sheldon, marketing director for her husband's accounting firm. "But I tend to defer to Terry. I wouldn't be comfortable placing an order to buy or sell."But she believes women are becoming more savvy about their financial affairs."These days we're inundated with information," she said.

Asked what they would advise their daughters or granddaughters, older women suggested the younger women should start planning early, become knowledgeable about investing and not become dependent on others for financial security.They also suggested the younger women develop a financial plan and put money aside "that is just yours."Sheldon said she told her girls to put as much money into 401(k) plans as possible.Allianz's Zesbaught said about 40 percent of women have worked with a financial adviser and those are the ones who descibe themselves as more confident about money.What they want, he said, was less worry, less aggressive investing, more simplicity and easier access to understandable information."I feel secure with my money guy," Williams said. "Though he gets a lot of kidding when I bring in my peachy pink bag."