This Friday, March 9, 2007, CFP Board will host a meeting in Denver to introduce a Second Exposure Draft of proposed revisions to CFP Board's Standards of Professional Conduct. The meeting will take place at 9:00 a.m. Mountain Time at the Brown Palace Hotel in Denver, just across the street from CFP Board's offices.

At the meeting, the Board of Directors and its Ethics Task Force will present the Second Exposure Draft, which incorporates many suggestions we received in response to last year's proposed revisions. Our presentation of the Second Exposure Draft will highlight some of the proposed changes and explain the reasons behind the proposals. For those unable to attend the meeting in Denver, the meeting will be available live through an online Webcast.

After the meeting concludes, we will open the comment period for the Second Exposure Draft, which will run through April 25, 2007.

The members of Board of Directors and Ethics Task Force are committed to making ourselves available during the comment period to discuss and answer questions about the proposed changes. On March 30, 2007, we will hold a Town Hall Meeting to do just that. At the Town Hall Meeting, we will address the comments and questions received during the first few weeks of the comment period, and then we will invite questions and comments from the audience. The meeting will also be available through a live Webcast, and we will be able to address questions and comments from Webcast participants as well. We encourage anyone with an interest in the proposed revisions to participate in the Town Hall Meeting.

While we anticipate the Town Hall Meeting will address many questions about the Second Exposure Draft, we understand that the financial planning profession includes a wide variety of business practices and that some specific questions or concerns may be addressed more effectively in smaller-scale settings. If you are involved with an organization or group that would like to hold a discussion about the Second Exposure Draft with members of the Board of Directors, please let us know so we can make efforts to arrange a meeting.

Ethical standards are one of the most important elements in establishing the public's trust in a profession, and CFP Board's Standards of Professional Conduct is something all CFP® professionals should be proud of. The Board of Directors believes the Second Exposure Draft maintains the integrity of the Standards of Professional Conduct and strengthens them in several appropriate ways. We look forward to presenting this Second Exposure Draft and hope all CFP® certificants and other CFP Board stakeholders are able to take time to thoughtfully consider the proposed changes and to provide us with constructive feedback.

Karen P. Schaeffer, CFP®
2007 Chair, Board of Directors
CFP Board

When she was nine years old, Liz Perle received an unusual gift from her grandmother: a knipple, a small woven metal sack, like a miniature handbag, that could be attached to clothing. Perle's grandmother stuffed $20 into it and told her granddaughter that it was "a just-in-case account. Every woman needs money of her own that her husband never knows about. So she can do what she wants. What she needs. Remember that."

Perle remembered it well, and recounts the incident in her book Money, A Memoir: Women, Emotions, and Cash. The experience took on a new significance, however, after Perle divorced. She had interrupted her career as a publishing executive to follow her husband to Singapore, where his employer had posted him. Shortly after she arrived, though, he said he wanted a divorce. Perle expected to be in Singapore for three years, but instead found herself sleeping on a friend's sofa in San Francisco with her four-year-old son. She had no job and no money. Where was that knipple when she really needed it?

Unfortunately, Perle's story is typical of the financial crises many women face after divorce. How do women get into this post-divorce predicament? And what can they do to prevent it?

There are several social and economic forces working against women after divorce. Many married mothers become financially dependent on their husbands because of the difficulty of combining family and career. "Due to an inability to figure out how to pick my kids up from school and work at the same time, I decide to take a job that pays less but allows more flexibility," Perle writes. "As I rocket back and forth between value systems and roles - traditional male, traditional female - everything starts to feel very all-or-nothing. I provide for my family, or I abandon my family. I feel safe or feel doomed - often in the same afternoon."

This conflict leads many women to interrupt or scale back their careers to focus on their children. Ann Crittenden, author of The Price of Motherhood, estimates that college-educated women with one child lose about $1 million in earnings over their working lives when they downshift or stop working altogether to care for children. According to MsMoney.com, on average, women live seven years longer than men, earn 25% less, and take 11 years out of the workforce. During that time, they are not building up savings, they are not funding their pensions, and they are not contributing towards Social Security. So it's no surprise that after a divorce, mothers suffer a dramatic drop in income and standard of living. "Most mothers tumble down the economic ladder after they divorce," write Elizabeth Warren and Amelia Warren Tyagi in The Two-Income Trap. "The drop is hardest for women in the middle and upper classes, since they have farther to fall."

But there are also psychological forces at play. Women tend to feel less confident than men about their financial abilities. As a result, some women may be all too eager to cede financial control to their spouses. In "Men, Women ... and Money," Money magazine cites a Merrill Lynch survey that found 47% of women felt they were not knowledgeable about investing; 30% of men felt the same way. Perle cites a study of job negotiating skills by Lisa Barron, professor of organizational behavior at the University of California, Irvine, in which 85% of men said they knew what they were worth; a similar number of women said they weren't sure.

Perle also quotes Stephen Goldbart, co-director of the Money, Meaning, and Choices Institute, on the different ways men and women can approach financial issues: "There are strong gender differences when it comes to money - differences of identity and of historical roles. For men, the interplay of money and love and power has not really changed in thousands of years; they have always been the providers, and their identities and power come from this old survival-based role." For women, though, the roles have changed - dramatically. And many women, like Perle, can sometimes feel miscast. "Long ago, and not entirely consciously, I made a quiet contract with cash," Perle writes. "I would do what it took to get it - work hard, marry right - but I didn't want to have to think about it. I simply wanted to know I would be financially secure ... I've signed over a lot of power to anyone or anything that promised to make me feel financially safe - no matter what the consequences."

Those consequences can be dire. That's why Ginita Wall's advice to female clients is: Be prepared. "Always keep your career options open," says Wall, a CERTIFIED FINANCIAL PLANNER™ professional and co-founder of the Women's Institute for Financial Education (WIFE). "Maintain your working skills, or develop them if you don't have them. Educate yourself about investment and personal finance. You don't get married expecting to get divorced. But you don't get on the freeway expecting to get in an accident either, yet you still wear a seatbelt."

Wall counsels her clients to put their financial safety first even before they tie the knot. "Talk about financial issues with your spouse before he becomes your spouse," she says. "Discuss what each of you assumes the financial obligations will be, what happens if you have kids." Wall suggests prenuptial agreements can be effective at avoiding trouble later, especially if there are specific assets to protect. As the circumstances of a marriage change - a business is sold, debt is taken on, a second home is acquired - these agreements should change as well.

If divorce does happen, Wall urges clients to stay calm and don't rush through the process: "It sounds like crazy advice to tell someone not to get personally involved in their own life, but emotions run high and can lead women to make decisions that are financially unwise. Sit down, go over the finances and try to look 20 years into the future to see where you will need to be. Women should take at least as long to plan their divorces as they did to plan their weddings."

Important steps in that planning process include gathering financial documents (Wall even suggests women should look through the trash if necessary to see what a soon-to-be ex-spouse may have left behind) and recalibrating priorities based on what is likely to be a significantly reduced income. And tie up loose ends: women should change their wills; name new beneficiaries for insurance policies and annuities; create trusts for minor children. These things are much tougher to deal with ten years down the road. Finally, they need to make pension arrangements. "Women often have ten or 20 years after a divorce to plan for retirement, and you can build a pretty good pension in that time," says Wall.

Citing the 1993 book Our Turn: The Good News About Women and Divorce, Wall says that in many respects women are more successful on their own. Based on a survey of about 350 white middle-aged, middle-class divorced women, the authors found that 82% of participants described themselves as personally stronger and more independent after leaving their marriages. The one area in which women were not better off: money. There are no quick fixes for that, but Wall suggests that planners can help women create a better financial picture for themselves by helping them make informed decisions. "I know it's easier said than done," she says, "but divorce can be a new beginning rather than a bad ending."

This is the second in a series of three articles on women and money. Next month: Women, money and retirement.

- James Geary

Online Resources
A selection of Web sites focusing on women and money:

MsMoney.com
MsMoney.com aims to teaches the fundamentals of financial health, wealth building, career expansion and life skills that relate to money issues. The site features introductory content for people learning to take charge of their finances and start financial planning. The Women's Corner section of the site addresses women's unique financial strategies.

Wider Opportunities for Women (WOW)
WOW works nationally to build pathways to economic independence for America's families, women, and girls. WOW's educational programs emphasize literacy, technical and non-traditional skills, the welfare-to-work transition and career development. WOW leads the National Women's Workforce Network, which is comprised of organizations committed to increasing access to well-paid work for women and girls, and the Family Economic Self-Sufficiency Project.

Wi$e Up
Wi$e Up is a financial education project aimed at women between the ages of 22 and 35. Wi$e Up's programs, developed by the U.S. Department of Labor Women's Bureau, are offered online as well as in classroom settings.

Women's Institute for Financial Education (WIFE)
This non-profit organization is dedicated to providing financial education to women in their quest for financial independence. Founded by Candace Bahr and Ginita Wall, WIFE describes its mission as "empowering women to succeed and prosper."

When asked to name the person or thing that has influenced them most, many people will cite an inspirational teacher or a life-changing book. Two recent CFP Board grant recipients - Jean Lown, founder of Financial Planning for Women and a professor at Utah State University, and Roslyn Donald, business librarian at the San Mateo Public Library - are demonstrating how professors and librarians can help people change their financial lives, too.

Jean Lown, a professor in the Family, Consumer, and Human Department at Utah State University, started Financial Planning for Women (FPW) about ten years ago. "It began as a series of informal talks with women about financial issues," Lown recalls. "But the people who came said, 'We need more.'" So Lown gave it to them, in the form of free monthly seminars to educate and empower women about personal finance and investing. She will use the CFP Board grant to promote her workshops through poster and online advertising and to purchase personal finance books and other educational materials for participants.

Lown is often asked why she specifically addresses women's personal finance issues. Why not just run uni-sex workshops? Lown can cite a lot of reasons. For starters, women typically earn less than men and tend to invest more conservatively. They often interrupt their careers - and therefore their earning potential - to raise children and are less likely to take part in employer-sponsored retirement plans. They live longer on average than men and have a greater chance of falling into poverty in old age. Plus, even today, too many married women leave the finances to their husbands; when their husbands die, these women find themselves unprepared to make crucial decisions.

That was certainly the case for one 53-year-old woman who got in touch with Lown after her husband was diagnosed with early onset Alzheimer's. "The couple have a house that might be their only real asset," Lown says. "She can't work and he's headed for a nursing home. They face huge costs for care. I advised her that it was time to see an elder care and estate-planning attorney. Women are more likely to be on their own at some time in their lives. They are financially more vulnerable. They need to know and understand more." So, while Lown never turns away men from her workshops, she has pretty powerful reasons to focus on women.

The workshops, which attract women from northern Utah and southeast Idaho, cover topics such as how to choose a financial planner, how to handle long-term care issues, and the basics of taxes and investments. Lown also tries to respond to events. After Hurricane Katrina, for example, she organized a seminar on insurance, since the part of Utah in which the university is located is prone to earthquakes. To encourage women to act on what they learn at FPW, Lown hands out a Personal Finance Action Plan and urges participants to take concrete steps towards reducing debt, increasing savings or planning for retirement.

One FPW participant did end up taking decisive action. After attending workshops for several years, she felt confident enough to take charge of the finances of her mother, who was paying unnecessary bank charges and falling prey to door-to-door salesmen. She eventually got her own and her mother's financial houses in order. "Women say the workshops have turned their lives around," Lown says. "Now they're teaching their kids how to handle money." And the CFP Board grant is paying dividends, too. After blanketing the town and campus with leaflets advertising the January workshop, Lown says some 75 people turned up, three times the usual number.

Roslyn Donald, business librarian at the San Mateo Public Library, will use the library's CFP Board grant to increase her community's financial literacy, too. San Mateo's population is diverse and multilingual. Roughly 20% of residents are Hispanic; another 22% are Asian. "Money is an emotional topic," Donald says, "and people are more comfortable talking about it in their own language. So we want to offer a planning for college workshop, for example, in all three languages: English, Spanish and Chinese."

Donald will use the CFP Board funds to create a "financial planning in a box" package of workshops, resource lists and marketing materials that can be adapted and used by public libraries anywhere in the U.S. Workshops will cover topics such as planning for college, as well as the financial consequences of bereavement and divorce, the basics of IRAs and how to prepare for a first-time home purchase. There is also a librarian training component that outlines fundamental financial resources, explains how to compile a community needs assessment and provides a bibliography of essential financial planning books and investment advisory resources. Most libraries don't have the resources to create programs like this, Donald points out. But using San Mateo's initiative as a resource and model, they will find it much easier to reach underserved populations.

The impact of the library's financial planning resources can be dramatic. Donald tells the story of one elderly woman who called the library and asked, "What's an annuity?" "This woman's husband had recently passed away," Donald recalls, "and she had to take over the finances, something she had never done before. A salesperson was pressuring her into buying an annuity over the phone, saying she had to act now or she would lose lots of money. I suggested she tell the salesperson to go jump in a lake and then explained to her how the library could help her learn about annuities."

Patrons of the San Mateo Public Library can learn about a lot more than just annuities, though. The library has a broad range of business and economics books, including five copies of How To Be A Weekend Entrepreneur - all five copies of which, Donald says, are out on loan all the time. Job seekers use the library's extensive databases to research prospective employers and can consult the collection for tips on how to write a killer résumé. Users can even access the online databases and investment advisory services from home through their computer.

"Your library card is the most important card in your wallet," Donald says. "A library is community gathering place, a center for adult education. Librarians can organize information and provide unbiased recommendations. Once people get through the doors here, they are universally floored by what's on offer." Donald clearly has formidable resources. Now all she needs is a local CERTIFIED FINANCIAL PLANNER™ professional who's fluent in Chinese!

Read more about projects receiving funding through CFP Board's 2006 Financial Planning Grants program.

Proposed Revisions to CFP Board's Ethical Standards to Be Released for Comment

CFP Board's Board of Directors will release a Second Exposure Draft of proposed revisions to the ethical standards for CFP® certification on March 9, 2007 for a period of public comment. In 2005, the Board of Directors began a review of CFP Board's ethics-related functions. CFP Board released an initial Exposure Draft of proposed revisions to its ethical standards in July 2006 and received more than 300 responses to that draft. The comments to the original Exposure Draft provided many perspectives and information that proved valuable in the Board's review of the proposed revisions. The Board has incorporated suggestions from many of those comments in a Second Exposure Draft of proposed revisions that will be released for public comment and discussion beginning March 9, 2007.

The Second Exposure Draft and related materials, including side-by-side comparisons of the language in the current Standards of Professional Conduct and the language in the proposed revisions, will be available on CFP Board's Web site at: www.CFP.net/aboutus/Exposure_Draft.asp

The Board is soliciting comments on the Second Exposure Draft until April 25, 2007, and all CFP Board stakeholders are encouraged to review the Second Exposure Draft and provide CFP Board with comments and feedback. Interested stakeholders can go to CFP Board's Web site to complete a survey or send written comments via e-mail to mail@CFPBoard.org or by mail to:

CFP Board
Attn: Ethics Task Force
1670 Broadway, Suite 600
Denver, CO 80202

The Board of Directors will review the comments at its meeting in May 2007. If the Board approves the revisions, an effective date of January 1, 2008 is anticipated.

Second Exposure Draft Release Meeting: Denver, March 9, 2007, 9:00 a.m. (MT)

On March 9, 2007, members of CFP Board's Board of Directors and Ethics Task Force will present a Second Exposure Draft of proposed revisions to CFP Board's ethical standards at a public meeting at the Brown Palace Hotel in Denver, Colorado at 9:00 a.m. (Mountain Time).

At the March 9, 2007, meeting, CFP Board's Board of Directors and Ethics Task Force will introduce a Second Exposure Draft of proposed changes to CFP Board's ethical standards, highlight some of the significant proposed changes, explain the reasons behind those proposals, and provide information about the comment period that will take place following the announcement. The meeting is informational in purpose, but those in attendance will have an opportunity to speak with the Board members and CFP Board staff following the presentations.

If you are able to attend the meeting in Denver, please notify CFP Board by calling 303-839-0657 or sending an e-mail to mail@CFPBoard.org.

Those unable to attend the meeting in Denver will be able to view the meeting through a live Webcast. Register for the online Webcast.

CFP Board Town Hall Meeting: Denver, March 30, 2007, 9:00 - 11:00 a.m. (MT)

CFP Board will hold a Town Hall Meeting on March 30, 2007 at the Brown Palace Hotel in Denver, Colorado at 9:00 a.m. (Mountain Time). At the meeting, members of CFP Board's Board of Directors and Ethics Task Force will provide comments on the Second Exposure Draft of proposed revisions to CFP Board's ethical standards and respond to questions and comments from the audience.

If you are able to attend the Town Hall Meeting in Denver, please notify CFP Board by calling 303-839-0657 or sending an e-mail to mail@CFPBoard.org.

Those unable to attend the Town Hall Meeting in Denver will be able to participate in the meeting through a live Webcast. Register for the online Webcast. Questions and comments may be submitted to the Board of Directors and Ethics Task Force during the meeting through the Webcast interface.

A recording of the Webcast presentation of the Town Hall Meeting will also be available after the meeting concludes.

CFP Board-Registered Programs Celebrate 20th Anniversary

While the number of current CFP® certificants in the U.S. neared the 55,000 milestone at the end of February 2007, another milestone for CFP® certification was being celebrated in Texas. Texas Tech University recently hosted a 20/20 Celebration from that recognized the 20th anniversary of the first 20 financial planning educational programs to be registered with CFP Board.

Soon after CFP Board was established in 1985, it introduced a process through which financial planning educational programs could register their programs with CFP Board. Today there are more than 320 CFP Board-Registered Programs at 203 institutions across the country. The availability of quality education programs that provide training in the knowledge and skills necessary to provide competent financial planning services is one of the primary factors that has contributed to the growth of CFP® certification.

CFP Board appreciates the contributions of all of Program Directors, educators and administrators, and we salute the 17 institutions that registered the first 20 educational programs with CFP Board 20 years ago:

Boston University
Campbell University
City University
College for Financial Planning
Georgia State University
Golden Gate University
Mercyhurst College
Metropolitan State College of Denver
New York University
Oakland University
Purdue University
San Diego State University
Texas Tech University
University of Dallas
University of North Texas

2007 Financial Planning Grants Program Application Deadline Extended to March 15

CFP Board has extended the deadline for submitting applications for CFP Board's 2006 Financial Planning Grants program from March 1, 2007 to March 15, 2007.

CFP Board's 2007 grant program is designed to provide financial support to sustainable projects that reach non-traditional populations and encourage them to benefit from financial planning. For more information about the program, visit CFP Board's Web site at www.CFP.net/teamup/grants.asp.

A confirmation of receipt was recently sent to all applicants whose proposals have been received at CFP Board. If you sent an application but did not receive a confirmation, or if you have any question about whether CFP Board received your application, please send your questions or another copy of your proposal to grants@CFPBoard.org.

If you are interested in this opportunity but have not yet submitted a proposal, please send CFP Board your proposal through the online grant application form or by e-mail to grants@CFPBoard.org, no later than March 15, 2007.

Assist with Financial Planning Awareness Programs at Bronx Community College

Bronx Community College seeks CFP® professionals to assist with the development of a financial planning education series for their students, alumni and the nearby community.

In 2006, CFP Board provided grant funding to support Bronx Community College's development of an innovative program to increase financial planning awareness among their students and the nearby community. In addition to integrating a financial planning introduction in required freshman orientation courses, the grant-funded project is also developing training programs and workshops for the school's students, Career Counselors, Business Club and alumni community.

There are a variety of opportunities to get involved in this program, from providing financial planning training to the project coordinator, speaking or leading workshops and serving on the program's Advisory Board. CFP® professionals interested in participating should contact Lorna Chan, Project Coordinator, at 718-289-5421 or by e-mail to Lorna.Chan@bcc.cuny.edu.

Money Mentors Sought for 2007 Money Conference in Springfield, MA

The Financial Education Division for the Massachusetts State Treasury seeks CFP® certificants to participate as Money Mentor volunteers at the 2007 Money Conference on March 24, 2007 in Springfield, Massachusetts. The Conference is a free event designed to educate people about better ways to manage their money, develop retirement and investment strategies, and increase their financial knowledge. In addition to workshops presented by leaders in the financial services industry, the Conference offers attendees the opportunity to meet one-on-one with Money Mentors who will meet with individuals, couples, and families for approximately 15-20 minutes to help them gain direction for the next steps in their financial future.

The Money Conference will be held at The Western New England College in Springfield, Massachusetts on Saturday, March 24, 2007 from 8:00 a.m. to 2:30 p.m. and over 400 attendees of all ages and economic backgrounds are expected. Breakfast, lunch and childcare will be provided at no cost. Money Mentors will be required to volunteer for 1 hour and 30 minutes from 12:00 p.m. to 1:30 p.m.

If you are interested in volunteering as a Money Mentor, please contact Leanne Martin, Director of Financial Education Division for the Massachusetts State Treasury at Leanne.Martin@state.ma.us or 617-367-6900, ext 613. For more information on The Money Conference, visit www.themoneyconference.com.

The Money Camp's Financial Literacy Training Intensive Program

In honor of Financial Literacy Month in April, The Money Camp, in conjunction with BizWorld and Junior Achievement, is hosting a Financial Literacy Training Intensive program of advanced training for everyone in the financial literacy arena. This new event, to be held in Santa Barbara, California on April 25-28, 2007, is designed to assist those who are already teaching financial literacy to kids and adults by providing them with compelling information and resources and training them to use advanced, powerful and effective teaching methods.

Since 2002, The Money Camp has taught thousands of kids and adults how to make, manage and multiply their money in a camp-like setting. Their mission is to empower people to create financial freedom, and they accomplish this with an innovative approach that involves accelerated teaching techniques, role-playing, games, and other activities. They hope to have Money Camps all over the world by 2010 and, they're doing this by training others to host their own Money Camp programs.

The Financial Literacy Training Intensive program will take place in Santa Barbara, CA from April 25-28, 2007. To learn more or register for this unique opportunity, visit www.themoneycamp.com/intensive or call 800-928-1932 or 805-957-1024.

Participate in the 2007 Financial Planning Clinic in Boston on August 4

CFP Board welcomes CFP® professionals to participate in the 2007 Financial Planning Clinic by providing free financial planning information to people interested in experiencing the benefits of financial planning. The Clinic will be held Saturday, August 4, 2007 at the Sheraton Boston Hotel from 10:00 a.m. to 2:00 p.m.

At the Clinic, volunteer CFP® professionals will meet one-on-one with individuals and families to answer their financial questions. The Boston Financial Planning Clinic builds on the success of the 2006 Financial Planning Clinic in Los Angeles, where thousands of individuals, couples and families received answers to their financial questions from CFP® professionals. We expect the Boston event to draw an even larger crowd.

CFP® certificants interested in participating may apply online or contact CFP Board by e-mail at clinic@CFPBoard.org or by phone at 800-487-1497 with the following information:

• Name
• Phone Number
• E-mail Address
• Mailing Address
• If you are multi-lingual, the languages you would like to use at the Financial Planning Clinic.
• The general financial planning topics you are most interested in discussing with attendees.

Only CFP® certificants in good standing with CFP Board may participate. For additional information about the 2007 Financial Planning Clinic, visit www.CFP.net/clinic.