| NEW YORK, July 16
NEW YORK, July 16 Is there a target on the back
of my dress? Because it feels like there is a target on the back
of my dress.
It was painted there by the financial services industry,
which has grown hyper-aware of the fact that women have a lot of
money and are about to have a lot more.
According to a 2009 study from the Boston College's Center
on Wealth and Philanthropy, women will inherit 70 percent of the
money that gets passed down over the next two generations, and
that excludes the increasing amounts they earn on their own.
Women already own more than half of the investible assets in the
Companies like Bank of America's Merrill Lynch, Prudential
Financial Inc and TD Ameritrade are studying the investing
behavior of women, in the hopes of winning more of our dollars.
They know that when a husband dies, his widow often switches
Indeed, the Certified Financial Planning Board of Standards
is trying to lure more women to the business of financial
Sallie Krawcheck, who ran Merrill at Bank of America,
recently bought a women's network and started a mutual fund that
seeks to invest in companies led or heavily influenced by women.
Last week, Barclay's Bank PLC moved in the same direction,
creating a Women in Leadership index and related investments.
It's great to be wooed, but it's also scary to be the focus
of a great marketing effort. It could all end badly if the
industry simply pink-washes inferior financial products.
Here are a few bits of advice for women and Wall Street, as
they circle each other warily:
There will be questions. Women are infamous in some
financial advisory circles because we ask so many more questions
than men. That is good. Do not invest in something you don't
understand. Advisers who want us to invest in complex products
and services need to be willing to explain them clearly and
FEMALE ADVISERS NOT NECESSARY
We don't need our advisers to be women. It's not like going
to a gynecologist. A male financial adviser is fine with me, as
long as he's competent, straightforward and good with my money.
We also don't need pink folders for our statements or
ladies' investment products. We like green, and want the
products and services that will secure our money and make it
Funds that invest in women-led companies may do well in the
future; there's some research that diverse boards govern winning
companies. But women and men should be cautioned not to be
over-dependent on niche funds and not to overpay for them.
KEEP COSTS LOW
Women control most household income and tend to be price and
budget conscious. So don't try to win us with high-priced mutual
funds when there are less expensive ones that do the job.
Don't charge us a lot to recommend a generic plain-vanilla
index fund portfolio we could find on our own.
WOMEN, WORRY LESS
Survey after survey reveal that women are more afraid of
managing money than men (which is not the same thing as being
worse at it) and they are more afraid of market risks than are
Women keep a lower proportion of their money in stocks than
men do, even though women live longer and the stock market has
long proven itself to be the best place for long-term investors
to keep money.
ADVISERS, WORRY MORE
A good adviser won't prey on those fears; she or he will
help female clients overcome their worries and invest in
low-cost products that balance risks and rewards.
And if they don't? There's another new company out there
that is explicitly targeting women investors. It's called
(Editing by Bernadette Baum)