The reception area of the investment firm Dean Witter Reynolds Inc. in Oak Brook is tastefully decorated in what might be described as an exclusive men`s club look.
The doors leading to the area are of solid-looking wood; the colors of the furnishings are dark blue and maroon. There are drawings on the walls of men in red coats on strong horses taking part in a fox hunt.
Yet, the masculine decor belies an important fact. Nationally, the firm`s clients are nearly equally divided between the sexes. They are 55 percent male and 45 percent female.
Today, women in Du Page County and elsewhere have more economic opportunities and financial clout than ever before. Whether single or married, young or old, retired, working or raising a family, women are actively concerned about the state of their financial health.
It`s a trend that is being seen in Du Page. Lisa Palmer, a certified financial planner with Tax and Investment Strategies Inc. in Naperville, said, ”Even when I deal with couples, I`ve seen a switch to where the woman is becoming more concerned, more vocal, wants to know more about the financial state of the family unit.”
Palmer believes that news-making events during the last decade, such as the Tax Reform Act of 1986, the stock market crash of 1987 and the recession and war of 1990-91 are contributing to heightened concern on the part of both men and women for solid financial planning.
Other factors adding up to greater participation by women in money matters are the larger number of dual-income households, the higher number of single working women, and the greater number of families that are headed solely by women.
In Du Page County, according to the 1980 census, the number of females living alone or with other unrelated persons was 24,838, compared to 8,955 in the 1970 census. The number of female-headed families, with no husband was 14,394, up substantially from the 3,960 in the previous count.
The fact that women often outlive their spouses is another reason for women to be concerned about their financial affairs over the long term. In Du Page in 1980, the number of females over 65 was 28,134, compared to 16,564 in 1970.
While the 1990 census figures in these specific areas have yet to be released, it is unlikely they will decrease. Margo Schreiber, administrator of the Du Page County Human Services Department, said larger numbers of people are seeking budget counseling classes and information on financial assistance through her department than ever before. Many of her clients are single, divorced mothers or female senior citizens on fixed incomes.
According to Palmer, the financial planner, it is often an emergency or important life transition that brings people to her office.
”Usually, it`s a crisis that inspires someone to seek financial advice. They have had a death in the family, are going through a divorce or are facing early retirement.”
For one of Palmer`s clients, the motivation was a job change. Jo Anne H. Miller, director of software development for Tellabs in Lisle, wanted professional advice when she needed to reinvest money she had accumulated in a pension fund at her last job.
Miller, who has a master`s degree in business administration, said, ”I know how to read the Wall Street Journal, but I don`t have time to monitor the financial pages on a daily basis. I can`t watch every nuance of my investments or be knowledgeable about every new financial product that comes on the market. So that`s why I hired a professional.”
Palmer is working with Miller and her husband, Richard, to develop a detailed financial plan with a focus of achieving the couple`s goal of saving for a comfortable retirement.
Miller said she enjoys working with Palmer because she receives informed advice, but Palmer leaves the decisions up to her clients.
”The information is there, but the control is mine,” explained Miller.
Palmer said she is seeing more and more dual-income couples. Often, they are contemplating a wedding and seek Palmer`s input before tying the knot.
”It`s something of a trend. The people are usually two people who have established themselves and are trying to find someone who is objective to help them pull it all together so they can start their life together and set goals together.”
A certified financial planner such as Palmer can advise clients on all aspects of personal finance, from disability insurance to investment and tax planning. Just about anyone can put out a shingle and call him or herself a financial planner, but a certified financial planner receives the designation from the International Board of Standards and Practices or Certified Financial Planners in Denver.
An investment broker such as Kim Telfer, who is an account executive at Dean Witter Reynolds Inc. in Oak Brook, limits her focus to investment strategies.
”My object is to keep income steady, to preserve the principle and to help my clients maintain their standard of living,” said Telfer, who also conducts workshops on investing.
Telfer said that when a married man makes an appointment to see her, she requires that his wife attend.
”I insist that the wife come in and learn, especially in retirement planning. Women outlive men, and often today people receive lump-sum pensions which they invest. The wife needs to know what`s going on,” she said.
She finds that ”women are more particular. They will ask more questions before they will trust you.”
When she encounters fear about investing or about taking responsibility for financial security, Telfer chalks it up to a lack of education.
She recalls one seminar during which she advised the audience to build up an emergency fund that would cover living expenses for at least three to six months in case of a hardship like a job loss or sickness.
”A woman in the audience raised her hand and said that she didn`t need it because she had very good credit and that she could get cash in case of an emergency,” Telfer said with a grimace.
Changing such attitudes, and seeing their clients take control of their financial lives, is something that brings a feeling of satisfaction to both Telfer and Palmer.
Palmer recalled watching a woman who was confused and emotionally stressed at the time of a divorce grow more confident as she took control of her life and finances.
The woman had been awarded a cash settlement in her divorce. She had the goal of paying for her child`s college education, which she continues to work toward.
”But she really knows what she wants to do with her money versus saving a couple thousand dollars and saying, `Let`s go to the department store,”`
Palmer said.
Ann Diamond, a certified financial planner with Citibank in New York who recently conducted financial planning seminars for women in the Chicago area, urges women to put their financial goals in writing.
”It makes you really home in on what`s important to you,” she said.
Among her other recommendations, she advises women to take stock of assets and liabilities, make a written budget of some type, have an emergency fund, save at least 10 percent of earnings, establish credit, get educated and stay motivated.
Seeking the advice of a certified financial planner like Palmer would cost from $900 to $5,000 on a yearly retainer basis. On an hourly basis, fees are from $40 to $75 per hour.
Diamond said people may need professional advice at some point, but a less costly way for women to start their education is to read the business or financial pages of newspapers and magazines or to take advantage of seminars offered at colleges or other institutions.
As for staying motivated, Diamond said, ”We`re all going to fall off the track sometime. That`s when you need to revisit your goals.”
Putting off taking charge of personal finance is the worst thing one can do, the money managers agree.
”Procrastination is in itself a decision,” Telfer said. ”I`d rather have a choice over what my ending will be, as opposed to the fairy tale that someone will take care of you, or everything just will work out, because it might not.”
