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BUSINESS w/photo: Women Urged To Take Control Of Their Finances

B Y K AAREN V ALENTA

Women often take control of their finances for the first time in the wake of a

crisis: divorce, illness, unemployment or the death of their spouse.

Though 45 percent of the work force in the United States is female, only one

of every 12 women make their own investment decisions.

Mary Jo Romano, an investment specialist, presented the results of an

Oppenheimer Fund survey to members of the Business and Professional Women's

Club of Newtown at the organization's dinner meeting at the Fireside Inn

Monday evening.

"Eighty to ninety percent of all women will be responsible for their own

finances at some point in their lives," Ms Romano said. "Eighty percent of

retired women have no pension benefits. And 80 percent of the widows who are

living in poverty were not poor before the death of their husband."

Three out of every four women will be single - unmarried, divorced, separated

or widowed - by the time that they die.

"On the average, women live seven years longer than men," Ms Romano said.

"Almost half of all marriages end in divorce. And many women are marrying

later or not at all.

In one of the largest shifts in the national pattern, the number of families

headed by a female has increased by 125 percent since 1960.

"You can imagine the crisis that occurs when these women lose their jobs," she

said.

Mary Jo Romano works for BHCM, Inc., which as Chase Investment Group operates

at the Chase Manhattan Bank. She was accompanied to the BPW meeting by Chase

senior vice presidents Cam Marino, Mary Jane Martucci, Sheela Amembal and by

Joan Murcko, assistant treasurer and manager of the Newtown branch.

"Ninety percent of the women questioned in the Oppenheimer survey said they

did not believe that investing is only a man's job," Ms Romano said. "But only

12 percent of the women make their own investment decisions. That is often

because for many working women, making investment decisions is a job - if they

can turn it over to their husbands, that's one less job they feel they have to

do."

Women as a group start saving later and save less - "too little, too late," Ms

Romano said. Their savings often don't outpace inflation: a 1970 dollar is

worth less than 23 cents today.

"The most important thing for women to learn to do is to pay yourself first,"

she said. "Women tend to put themselves last."

How a woman should invest varies depending on her individual circumstances.

Women shouldn't hesitate to seek financial advise from a professional, any

more than they would hesitate to see a dentist for a toothache.

"A professional financial adviser can help you determine the types of

investments suited to achieving your goals, plan a savings program to help you

build your assets, and explain the potential risks and rewards of different

investments," she said.

You'll want to find out what services a financial adviser offers, what

investment style or philosophy he or she follows, and what the charges, if

any, will be. There aren't any fees to just sit and talk with an investment

counselor, she said.

Investments run the gamut from low to high risk. The higher the risk, the

higher the potential return. Certificates of deposit, treasury bills and money

market funds are considered low risk and are designed for short-term needs.

Bonds, whether corporate, municipal or US Treasury, are extremely

interest-rate sensitive.

"That means if interest rates go down, the value goes up," Ms Romano said.

"But if interest rates go up, the value of bonds go down because they are less

attractive to investors."

Stocks generally are long-term growth investments. While many women view the

stock market as risky, "the greatest risk is that you will not achieve your

financial goals," Ms Romano said.

Mutual funds offer an investor diversification, professional management, easy

access, automatic reinvestment, and affordability (some require as little as a

$25 investment. Under this category, there are stock funds, stock and bond

funds, bond funds, tax-exempt funds and money market funds.

To maintain your lifestyle in retirement, Americans will need an estimated 70

to 80 percent of their pre-retirement income. Most underestimate their needs,

and with Social Security benefits now under pressure, it is likely that women

won't have adequate income unless they begin investing earlier.

"A graph of the stock market over a short period of time may show significant

ups and downs, but when the market is charted for years the overall trend is

up," Ms Romano said. "Investors shouldn't be afraid to buy when the stock

market falls. You can compare buying stock with buying clothing. Buying stock

when the price is down is like buying a blouse on sale."

How much money should a woman invest in growth vehicles like stocks?

Mary Jo Romano said one formula is based on age: subtract your age from 100. A

40-year-old woman, for example, could invest 60 percent of her savings in

growth. A 60-year-old woman, on the other hand, might invest 40 percent.

"The important thing is to start planning now. Next to your physical health,

the single most important factor influencing your future is your financial

well-being," she said.