Women focus on financial planning

Dealing with financial affairs is at the top of many a person's list of New Year's resolutions.

Last month Bend resident Stephen Hood, owner of LifePlan Advisors, Inc., a Sisters registered investment advisory and financial planning firm, offered a workshop titled "Lifetime Financial Security, a Women's Perspective" at the Sisters Library.

The free program, geared especially for women, was a part of the Deschutes County Library's ongoing adult lecture and workshop series that explores a variety of subjects.

"I was attracted (to the workshop) because it was more geared toward women," said Sisters resident Sharon Sharpnack. "It seems like financial planning classes for the general population go so fast. Most men are more versed."

Providing women with tools to make effective investment decisions is key to their financial security. According to Hood, whether married or single, women should attain financial advice as early as possible. Ninety percent are in charge of their own finances at some point in their lives, he said.

The path to financial security offers many challenges. Hood told The Nugget that on the average women earn 25 percent less than men, making their pension and social security benefits smaller. Still, they live longer, and 75 percent of them are eventually widowed.

"Here's one statistic that jumped out at me that I was not aware of. The average age of widowhood is 56," said Hood. "I find that very surprising."

Hood went on to note that statistics show that 87 percent of adults living in poverty are women.

"Often times the man will die and the pension will die with him, and then social security benefits go down," Hood said.

Although banks are FDIC insured and people feel comfortable using them, realistically women must look beyond keeping their money in the bank. The interest they can earn there is simply too low.

"If they paid 12 percent interest rates, we'd probably have all of our money there, but it doesn't work that way," Hood said. "That's the reason we go outside of bank accounts and do other things."

Hood advises women to cautiously weigh potential rate of return against risk before making an investment. He also suggests attaining a

referral for a financial advisor from a trusted person.

"Don't go to your brother-in-law. Ask for a referral from your accountant, your attorney or somebody you respect who has knowledge in the world of finance," he said.

Additionally, he cautions women before making an investment to evaluate whether a financial adviser is compensated through fees, commissions or some combination of the two. When a financial adviser works on a "fee for services" basis, the client knows up front what costs will be.

"The conflicts of interest are also removed from the situation," Hood said.

Some viable investments, however, are structured to only pay a commission and cannot be purchased on any other basis.

Hood has been in the business of financial planning for 27 years and works with his wife, Sue. The couple, who are long-time Oregonians, moved to Central Oregon a little over a year ago after spending several years in Melbourne,

Florida.

"We missed home, and we moved back," said Hood. For more information about the services the couple offer, visit their Web site www.

allweatherinvestors.com.