Women step up hunt for financial advice

When she first approached financial advisers after her divorce, the men she talked to left her feeling uncomfortable. One told her, "I'll take care of your money, dear, just like I would my mother's."

She eventually found a woman financial planner who specializes in women clients.

Indeed, finding an adviser that one trusts can be tough for anyone, but especially challenging for women. Surveys show that women haven't been served well by traditional financial services institutions.

"We see an inherent bias," says Lisa Caputo, president of Women & Company, a new membership organization affiliated with Citigroup that aims to guide women in their financial lives. She cites firms that insist on sending their statements in the name of the male head of the household, even though his wife and daughter also have accounts.

Now some financial planners, especially women, have made sensitivity to women's issues a priority. Some have centered their practices on female clients – a loyal and lucrative niche. Major financial institutions have followed suit by targeting the women's market with specialized products and services.

Women's Financial Network, an offshoot of discount brokerage Muriel Siebert & Co., was founded a year and a half ago when Ms. Siebert realized she didn't have many female customers. WFN offers the same services at the same rates as the parent company, but with extra features such as a free weekly newsletter, web-based education, and toll-free telephone access to financial guides.

Citigroup launched Women & Company last year with the aim of educating and advising women and with an eye to winning loyalty for Citigroup services in general.

The organization charges a $125 annual fee for unlimited telephone access to financial planners trained especially for women, web-based financial-planning software and educational materials, regional events, and discounts on services such as child care, insurance, and nanny payroll preparation.

"Looking at national data, 80 percent of consumption decisions are made by women in the family, yet women say what they are most concerned about is lack of knowledge of finance and financial management," says Mahnaz Mahdavi, an economics professor at Smith College and director of the school's new Women's Financial Independence program. "We want to emphasize the importance of financial literacy for all, but especially for women."

The Smith program aims to teach students practical money-management skills before they graduate into the real world. And, so far, students have been overwhelmingly enthusiastic about the initiative.

"As I graduate I will use what I learned in personal finance to pay off my student loans," says Yakhara Sembene, a Smith sophomore. "At least you don't feel like you're working in the dark. You've got a path."

Although taking charge of finances is important for both sexes, women often face greater challenges than men. On average, women:

• Live seven years longer than men.

• Earn 76 cents for each dollar men earn.

• Spend 11 years out of the workforce to care for children or elderly parents.

• Qualify for lower Social Security benefits than men do, and have lower retirement-account balances.

• Are more likely to work for a company that does not offer retirement-savings benefits.

• Have higher healthcare expenses.

• Often have more difficulty establishing credit than men do.

Bookstores and the Internet are full of advice on personal finance. The following resources may be especially helpful for women. Also keep an eye out for women's groups or investment firms that offer seminars. Smart Women Finish Rich: 7 Steps to Achieving Financial Security and Funding Your Dreams By David Bach Broadway Books, $13.95 paper)

Prince Charming Isn't Coming: How Women Get Smart About Moneys By Barbara Stanny (Penguin, $12.95 paper)

Women & Company, a membership organization that aims to educate and advise women on financial planning, www.womenandco.com, 888-679-9255 ($125 annual membership fee).

Women's Financial Network, a discount brokerage and educational website, www.wfn.com.

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