$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$ Wealth Healthy Women Newsletter Healthy Attitudes ==> Wealthy Women [TM] March, 2003 $=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$ IN THIS ISSUE: 1. Note From Your Editor, Lynne 2. Article: The 10 Must-Ask Questions Leading to Money and Investment Savvy 3. Resource Spotlight: Amy Lampert, Registered Investment Advisor & founder of WomensWorth 4. Free teleclasses: Guest Interview with Amy Lampert - March 18 *Rescheduled* Joining Hearts & Wallets Guest Interview with Kathryn Lord - March 12 ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ To subscribe to "Wealth Healthy Women" [TM] send an e-mail to whw-request@WealthHealthy.com with "Subscribe Newsletter" in the subject line. ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ -=- Note From Lynne -=- Dear Reader, These are uncertain times. We are awaiting news about war with Iraq. Reports about our financial markets are glum. Many investors feel they are "on hold," not wanting to make financial moves until there is more clarity about war and the financial markets. While these global events will play out in their own due course, what can the average woman do to feel less helpless and take effective action in her money life? This issue of WHW provides an empowering course of action: Hone your financial intelligence by reading Amy Lampert's "The 10 Must-Ask Questions Leading to Money and Investment Savvy," our feature article. Then, enhance your reading by participating in our March 18 teleclass, with Amy as guest speaker. Benefit from Amy's 20+ years on Wall Street and career-long commitment to empowering women to understand, manage and succeed in their financial lives. Please join us for the "Joining Hearts & Wallets" teleclass with relationship coach Kathryn Lord that is rescheduled for Wednesday, March 12. There is still time to register. See the teleclass section of this issue for instructions. I hope to talk with many of you on March 12 and 18! Warmly, Lynne ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ Lynne Hornyak, Ph.D., Editor e-mail: Lynne@WealthHealthy.com Coaching busy professionals to greater financial freedom and well-being. ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ -=- Feature Article: The 10 Must-Ask Questions Leading to Money and Investment Savvy -=- If you are reading this newsletter, you are likely to be seeking information and advice to become more financially secure and independent. In my experience, the most effective answers come from asking yourself pertinent questions. Based on my 20+ years of working with women and men in the financial arena, I've distilled ten essential questions to guide you on your path to financial savvy. 1. What is my financial objective? Many people base their saving and investing objectives on advice from books and magazine articles written by financial experts. For example, a commonly stated "fact" is that you need 70% of your pre-retirement income for your retirement years. Not only can this "fact" feel discouraging ("I'm never going to save that much"); it can interfere with taking necessary action. In addition, setting quantitative objectives can be particularly difficult when there are competing goals such as saving for retirement at the same time as paying hefty tuition bills for your children. An alternative approach to setting financial objectives is to start with creating a vision of what you want to be doing in retirement and where you want to do it. The next step is to "back in to" the costs by clarifying how you would be willing to live out this vision. People are often surprised by the simplicity they envision, and how much more "do-able" the financial picture becomes. Most importantly, this process helps you clarify what is really meaningful in your life. 2: Are my goals and objectives realistic? This question applies not only to your envisioned goals, but to the assumptions you make about achieving these goals. For example, you are assuming a 12-15% rate of return on a certain investment vehicle; you need to know if that assumption is realistic. If you are basing your expectations solely on the inflated figures quoted in the media, you may be a far cry from your desired nest egg when you retire. It's important to consider the historical performance of investment and savings vehicles in your calculations. Setting realistic goals can be particularly hard when others around you are bragging about their "big hits." However, establishing the right allocation of assets given your time horizon and objectives, and revisiting this allocation at least annually, is more likely to get you where you want to go. This strategy can also help you to avoid "staying too long at the fair", or behaving emotionally in an over-exuberant or overly dismal financial environment. 3. Am I a DIYourselfer or a Delegator? It's useful to figure out if you enjoy learning about money and executing your own strategy, or if you'd rather delegate various tasks. Many investors delegate due to time constraints, lack of expertise or anxiety about decision making. Some delegate but feel guilty that they "should" be managing their own finances. Other people feel overwhelmed by the amount of information that they believe they must digest before making educated decisions and end up making no decisions. There is the reality that a large amount of financial research and information is not unbiased. Consequently you may question the value of advice you receive. On the other hand, many of us know that if we could tap into some good advice we could move the process along more successfully. The most important point here is to recognize that the answer to this question does not need to be either-or. You don't need to "DI All Y" or delegate completely. Finding the right mix for you is the best strategy. 4. How do I become a smart consumer? Many women report "glazing over" when figuring out the right questions to ask about financial issues. Yet, consider the growing effectiveness among women regarding issues of their health and health care. Scrutinizing and asking the right questions about medical care is a great model for being a smart consumer about financial well-being. Unfortunately, most providers of financial services are also manufacturers of financial products. There are many costs hidden or not fully disclosed which make the sale more profitable to the company and to the person selling you the product. Costs are often disclosed in documents that the average person is un-inclined to sit down and read with a magnifying glass. So, the important questions to ask are: What is the relationship between the person advising you and the manufacturer ? What are the costs? What am I getting for my money? What is in it for the advisor and company if I purchase this product or service? Are there any other ways I can purchase the same product or execute the same strategy at a lower cost? Comparison shop if you can or seek the advice of an unbiased person. 5. What is the worst case/best case scenario? Assessing the worst case and best case scenarios enables you to evaluate your feelings towards risk and your true comfort level. Unfortunately it is the exceptional financial advisor who helps individual investors identify the true worst case scenarios. However, a good rule of thumb is: No matter how much a particular investment vehicle or strategy is touted, if it can't pass the "Maalox" test, you probably should adopt another strategy. Another rule of thumb is to accurately evaluate the risks of NOT executing a strategy in addition to the risks of doing so. 6. How do I monitor my strategy? First of all it is important to determine if your goal or objective has a long-term or short-term horizon. Be really specific about the time horizon. Quantify it. There are issues related to liquidity that influence whether or not you should adopt a specific strategy for the time you have to reach your goal. Setting specific time frames allow you to know when and how often to evaluate the performance of your strategy. If you are lucky enough to reach your performance goals before the time allotted, the strategy should be reversed NO MATTER WHAT. It is just as important to know when to walk away due to UNDER-performance. Often investors live with their mistakes for too long because of the financial and emotional factors involved in "cutting your losses." Consequently it is important to determine the costs of premature reversal at the outset. Perhaps it will be much easier to walk away from a mistake if you realize that everyone, even professional portfolio managers, make mistakes nearly 50% of the time. 7. Do I know how to communicate about my financial and investment strategies? Many women describe difficulties discussing money with spouses, family members, bosses and financial professionals. Their confidence is diminished by their perception that they don't know enough about money or the issues involved, that they don't even know what questions to ask. A way out of this dilemma is to ask yourself some questions, such as: Can I articulate my needs and objectives? What can I say comfortably to my significant others (spouse, children, parents, siblings, investment advisor, lawyer, accountant, etc)? When do I find myself speechless or de-skilled? What am I telling myself at those times? Are others doing or saying things that de-authorize me in some way? What can I do about this? 8. Do I have a system for organizing my financial affairs? It's hard to take action when you can't find the right financial statement or piece of paper. And, so much paper gets generated by financial services companies that it can be overwhelming. One solution to the "paper trap" is to create a binder with tabs for each financial account, enabling you to place your monthly or quarterly statements in the binder as you receive them. Another solution is to consolidate your assets at one financial institution. There are custodians who can consolidate all your IRAs, Roth IRAs, Rollover IRAs, mutual fund accounts, credit card accounts, and checking accounts into one account. Just make sure you understand the monthly, quarterly or annual fees. Spreadsheets or computer applications such as Quicken and Microsoft Money can simplify the way that you track income, expenses and your budget. 9. Do I have money harmony? For many of us, money is a metaphor for other basic concerns such as power, influence, freedom, status, and especially for women, security. Getting straight with money doesn't happen until one understands what money stands for. Ask yourself this question: If I had an excess of money what would I do with it? You will be surprised what the answer to that question will tell you about the underlying issue. And often it becomes clearer that money isn't the only way to tackle the issue or concern. Since the answers change depending on life stage and circumstances, it's good to take stock every once in a while�especially at the time of life transitions. 10. What are the next steps I can take to get closer to my goals? Think "small steps." There is a continuum of behaviors and tasks that will get you to your goals. Steps might include taking a seminar or reading articles on personal finance, using a computer program to track expenses or set up a budget, committing to a monthly automatic payment to your retirement account, devising an action plan, hiring a financial advisor or money coach. And don't forget to appreciate that each step you take is an investment in your financial security and independence. ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ -=- Resource Spotlight: Interview with Amy Lampert, Registered Investment Advisor & Founder of WomensWorth -=- $=$ Tell us about your business as a women's investment counseling and education company. The vision for WomensWorth grew out of my 20+ years on Wall Street in the personal wealth management channel. I saw how inappropriately those giving advice treated and communicated with women. And I saw major differences in the needs of people who "played" the stock market and those who were investing serious assets for retirement and future needs. I have an educational background in instructional design, and I love teaching (my first career) and designing curriculum. So WomensWorth is just my doing what I know and love put into action! WomensWorth targets women, but frequently we end up also helping the men in their lives with whom they deal around finances and money. If I had to state our mission in one word it would be empowerment -- much like WealthHealthy. We help our clients through workshops, teleclasses, one-on-one coaching, and support groups. $=$ How long have you been in this business? The company was formed in 1998. I'm pleased to say that we are growing, including developing strategic alliances like the one we have with WealthHealthy. $=$ Do you work with a specific group of women clients? We work with all women who need and want our advice and counsel. Interestingly, it does turn out that many of our clients are "boomer" women in the "sandwich generation" -- responsible for not only aging parents, but for yet-to-be- college-educated children, not to mention their own retirement savings needs. Many companies and providers target what are referred to as "high net worth" or "ultra net worth" audiences. WomensWorth clients often tell us that we were the only company that was willing to work with them because they are "middle market investors." Our fees are reasonable -- most work is done by hourly fees -- so we have a diversified client base, and that's how I like it! We also offer workshops that may be more affordable to some women. $=$ What do you think you do best as an investment advisor? EMPOWER AND DEMYSTIFY $=$ What do you see as women's strengths in the investment arena? Lack of impulse and greed. $=$ What do you see as pitfalls for women in investing? I see three key pitfalls: 1) Understanding the cost/benefit of risk/reward; 2) buying into the notion that there is so much to know they must delegate decision making to an "expert;" and 3) glazing over when finances come up! $=$ Can you share with our readers any new trends that you see emerging in investments? Let me first make a distinction between trends and new products. There is a new "product" born every minute on Wall Street, all of them under the guise of increasing "accessibility" to the average investor. I don't think that is what you mean. As for meaningful trends in the way that individuals manage and thrive in their financial world, I do see a trend, which is driven by the web, of more do-it-yourselfers. However, this trend is a double-edged sword, with benefits and risks. $=$ If a reader would like to know more about your services, how can they do that? WomensWorth has a website in-progress: www.Womensworth.com. Information can be requested by submitting an e-mail through the website or to alampert@Womensworth.com. ...Indicate whether you prefer to receive information electronically or by snail mail. Thanks, Amy! ~ ~ ~ ~ ~ ~ Reading Resources: If you have read a book that has made a difference in your money life, send a one or two paragraph review to Lynne@WealthHealthy.com. As long as it meets certain editorial guidelines, We will publish your review in a future issue, with full credit to you! ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ -=- WealthHealthy Announcements -=- $=$ March Teleclasses $=$ -= THE 10 MUST-ASK QUESTIONS FOR FINANCIALLY SAVVY WOMEN =- Guest Interview with registered investment advisor Amy Lampert, founder of WomensWorth This is your chance to benefit from Amy's 20+ years of experience on Wall Street and with WomensWorth, the women's investor education and counseling company that she founded. Amy will elaborate on the "10 Questions" and address your specific questions as well. When: Tuesday, March 18 7:00 - 8:00 PM Eastern Time Where: The comfort of your home or office! When you register, you will receive the telephone number to call for the teleclass. Cost: FREE How do I register? E-mail Lynne@WealthHealthy.com, with "Register March 18" in the Subject line. In the body of the mail, please include your first name, preferred e-mail address for us to send you the phone number, and any questions for Amy. ~ ~ ~ ~ ~ **RESCHEDULED** JOINING HEARTS AND WALLETS Guest Interview with relationship coach Kathryn Lord, LCSW, "The CyberRomance Coach." When: Wednesday, March 12 7:00 - 8:00 PM Eastern There's still time to register - send an e-mail with "Register March 12" to Lynne@WealthHealthy.com. Include your first name, preferred e-mail address, and any questions for Kathryn. ~ ~ ~ ~ ~ **Upcoming Teleclass** Tuesday, April 22: Retirement Readiness - Are You on Track? Guest Interview with Denise Fort, Financial Advisor, American Express 7:00 - 8:00 PM Eastern Look for an article and interview with Denise in the April issue of Wealth Healthy Women. ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ To hear a 10-minute description of the WealthHealthy approach, as well as a bit about me, you can call 1-212-461-2660. If you are interested in coaching, simply e-mail me at Lynne@WealthHealthy.com or call me at (202) 387-5923. Please include your name, e-mail address, phone number and brief description of your interest in being coached. ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ Pass this newsletter along to friends, family, and colleagues who also may be interested in moving toward greater financial freedom and well-being. They can subscribe at http://WealthHealthy.com or by sending an e-mail to whw-request@WealthHealthy.com with "subscribe newsletter" in the subject line. ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ PLEASE NOTE: Wealth Healthy Women [TM] is intended for informational and educational purposes only. It is not a substitute for financial, legal, accounting, psychotherapeutic, or other professional advice and consultation. ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ Copyright 2000-2003 Lynne Hornyak. All rights reserved. The above material is copyrighted but you may retransmit or distribute it to whomever you wish as long as not a single word is changed, added or deleted, including the contact information. However, you may not copy it to a website without my permission. Reprint permission will be freely granted upon request. Advance written permission must be obtained for any reprinting of this material in modified or altered form. ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ $=$ CONTACT INFORMATION $=$ Lynne Hornyak, Ph.D. WealthHealthy.com Phone: (202) 387-5923 Fax: (202) 244-3373 e-mail: Lynne@WealthHealthy.com Web: http://WealthHealthy.com