Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, January 30, 1995 TAG: 9502020009
SECTION: EXTRA PAGE: EXTRA EDITION: METRO
SOURCE: ALMENA HUGHES STAFF WRITER
DATELINE: LENGTH: Long
Unfortunately, most women don't share her savvy - a condition that Allison hopes to help change.
On Thursday at the YWCA Central Center in downtown Roanoke, and on April 13 at the YWCA, Salem, Allison will present "Financial Planning for Women 40+," free seminars on investing geared to the 40-plus age group, but open to any age or gender.
"Age 40 is sort of a milestone for many people," Allison explained. "People younger than that are raising kids, and it takes most of their discretionary income to do so. But around 40 is when people really start looking at retirement planning, although you should look at it at 25.
``Also, as people approach 40, their children are getting old enough where they start thinking about college. You should start when you have an infant, but people don't."
Allison, and statistics, say that age 40 and older is when many women find themselves alone, often for the first time in their lives, because of divorce or widowhood.
"Many of these women, especially the older ones, had allowed the men in their lives to make the financial decisions," Allison said, noting that probably 75 percent of her clients are actually over age 50.
She said it's been her experience that most women want to understand their financial options and make their own choices. However, statistics show that some demographic groups are less likely to move ahead with financial plans.
During the recent "Sister to Sister" conference for black women in Richmond, Herb Jones, an investment representative for Edward D. Jones & Co., pointed out that although they collectively earn more than $4.5 billion per year, blacks are 2.5 times less likely than whites to invest in financial assets.
"Many don't understand wealth accumulation, and out of fear or lack of trust or whatever they fail to use investment professionals," Jones said.
Allison said that many of her clients are black, but, "I think maybe if there were more African-American brokers, there might be more African-American investors. It's that way with women; the more female brokers we get, the more female investors," she said.
People who lived through the Depression are another investing-shy demographic group.
"They are extremely distrustful of risking their funds. They like to stick to conservative, no-risk investments. My own parents fall in that category. It was only after they had children in this business that they moved beyond investing only in CDs and savings accounts," said Allison, whose brother and sister-in-law are investment brokers in Savannah, Ga.
A third group that shies away from investing is people with less formal education.
"They often limit their investments to stock in the companies they work for because it's something they know, trust and understand," Allison observed.
She and Jones agreed that education about investing is what's needed to help all groups secure their financial futures.
"It's a very common misconception that you have to have thousands of dollars to begin investing," Allison said. "But Certificates of Deposit and things of that nature are available in $1,000 increments. Mutual funds, which are a great way to get involved in stock investing, have $250 minimums that can be added to in $50 increments. That's doable. The key is to start now and invest regularly. The period of time rather than the amount is what counts," she said.
She said that she prefers to recommend percentages of income rather than specific amounts to invest, citing 20 percent of income as a good average. She said that other basics for investing include to work with someone whom you trust; start by setting aside some savings for emergencies; diversify your investments, perhaps in a mutual fund, and build from there; and work out a plan and stick with it.
Allison said that people can call brokers and request generic information, which is usually sent without any further obligation. And there are literally hundreds of good books on investing to read. She said she would not suggest financial magazines as a resource, however, because they seemed to only recommend paid advertisers' products.
"Do some day-to-day life research," Allison advised. "While you're in a restaurant or out shopping, make note of who's doing well or who's not. Those are hints. Most products out there are made by corporations that you can buy stock in. And don't wait for a windfall; there'll always be something that comes up to divert you," Allison warned.
Obviously, a one-hour seminar won't allow enough time for Allison to impart 25 years' worth of investment knowledge. She said that during her talk she plans to cover basics such as reading the financial news; the differences among the four areas of investing: equity (stocks); debt (bonds and CDs); natural assets (real estate, art, precious metals); partnerships; and some general rules to follow for investing. She said she hopes attendees will come with plenty of questions.
She said that her motivation for presenting the seminars is in part a desire to return something to the YWCA, which has meant a lot to her personally. She is currently president of its board of directors.
"I don't think it would be proper for me to tout any of our company's products. I assume people will know my name and where I work," Allison said. "This is educational, not sales."
She said that if a lot of interest is shown in her basic coverage of investing, she might make future presentations on intermediate investing or investing for retirees.
"We want to do what the community needs," she said.
Allison's seminar is part of a free series. Participants are invited to bring lunch to eat during the talk, if desired. Free beverages will be provided.
"Financial Planning for Women 40+": Thursday, noon-1 p.m. YWCA Central Center, 605 First St. S.W., Roanoke.
by CNB