Hartford Business Journal

20 Hartford Business Journal • April 17, 2017 www.HartfordBusiness.com OTHER VOICES Positive trends developing between public, private sectors By Vanessa E. Rossitto D espite Connecticut facing another year of difficult budgetary talks, there seems to be some positive develop- ments on the horizon. Much more than in previous years, the public and private sectors are making the effort to talk with one another and work together on potential solu - tions for economic development. This is good news — we have a much better chance of seeing a beneficial outcome if all parties in Connecticut attempt to be on the same page. The Connecticut Business and Indus- try Association (CBIA) has implemented an enhanced program to get businesses and law- makers talking with each other this year. It is called "Adopt a Legislator," and connects indi- vidual business own- ers with lawmakers in an attempt to facili- tate an understanding of the needs of Con- necticut businesses and the challenges the state is facing. Additionally, Gov. Dannel P. Malloy has teamed up with CBIA to visit businesses and promote smart economic development. These are both smart strategies, which foster the spirit of collabora- tion and can lead to genuine progress. For years Connecticut has had a reputa- tion of being less friendly to businesses and economic development, but it doesn't have to remain that way. There are numerous recent examples of the business community work- ing with municipalities to find pathways to shared success. The key is thinking local; this is where so many of the best ideas for public- private collaborations originate, and success at the local level will no doubt have a strong impact on the entire state. Bristol is a prime example, where the expansive development of ESPN has had a profound effect on the overall success of the city. Municipalities such as Southington and New Britain have engaged in campaigns to pro- mote themselves in holistic ways, from residen- tial life to social life to business development. In West Hartford, the success of the town's center and adjoining Blue Back Square shows what can happen when government works with the business community. In Bloomfield, a recent influx of new busi- nesses has led to an increase in housing, which is yielding positive results across the board. These are real-time, real-world exam- ples of how collaboration can work, and these efforts can be replicated throughout the state. The natural starting point for the business and public sectors is a very simple one, but one whose importance cannot be overstated — they need to communicate. They need to be speaking with one another, finding shared challenges and pain points and considering shared opportunities and solutions. Progress can never occur in a vacuum; in fact, the opposite is true. Economic develop- ment can only work with an open dialogue between our business leaders and our politi- cal leaders. And the tone being set this year by the CBIA, state government leaders and local government leaders working more close- ly together shows just how possible this really is. The formula is simple: Connection rather than division, partnership rather than working in a vacuum, and a strategic approach between the public and private sectors that sets clear goals and strategies to achieve them. Business friendliness and sound govern- ment policy do not have to be mutually exclu- sive concepts. The key should be embracing these positive changes we are now seeing and building on them. Our entire state, and every sector within it, will benefit from it. n Vanessa E. Rossitto is a partner with West Hartford accounting firm BlumShapiro and director of the firm's government ser- vices group. OTHER VOICES Gender investment gap another challenge to tackle By Magdalena G. Johndrow R ecently the internet has been flood- ed with news coverage about the bronze "Defiant Girl" statue placed in front of the iconic bull on Wall Street in honor of International Women's Day. Being a woman in finance I must admit that I was excited that attention is being called to the gender disparity both with regards to wages and C-suite executive positions in the financial industry. This symbolic gesture got me thinking about what we could do as women to take matters into our own hands, so that we do not have to wait for big corporations to make space on their executive boards for women. Many of us speak about the gender wage gap, but few have heard of the greater gen- dered shortfall: the investment gap. Women on average have 50 percent less in their retirement accounts than men do. By not investing at early stages, women miss out on thousands of dollars from com- pound interest lost over time. So, while it's great for a woman to make an equal salary to her male coun- terpart, he will presumably con- tinue to be much wealthier if he invested even 10 percent of that salary, while a woman puts hers into a traditional savings account. For example: Let's say Joe and Mary are both 25 years old and both earn $100,000 a year. They make the same sal- ary in the same position. Joe adds $10,000 of his salary into an investment account and it grows at a hypothetical 8 percent per year with annual compounding. By the time Joe retires in 45 years, he will have saved approximately $4.17 mil- lion. Meanwhile, Mary who simply put away $10,000 annually in her savings account ends up with $450,000 in 45 years, roughly $3.7 million less than Joe. Of course, wages and investment are not a zero-sum game. The purpose is not necessarily to outperform your male col- league, but rather, to achieve financial independence. Until women are finan- cially equal to men, we cannot be disc- nering in our job choices, in our familial and reproductive choices, and in our rela- tionship choices. Most importantly, as the age-old saying goes "money is power," and until women reach a similar net worth to men, we will be hard-pressed to see an equal amount of women land C-suite positions. You might ask yourself why more finan- cial professionals aren't speaking directly to women about the investment gap. The fact is, the industry has been dominated by men, with women representing only approximately 15 percent of financial advi- sors in the United States. Like at many other points in history, we as women must carve out our own space within the financial world. Women need more representation in the industry. Women often approach investing differ- ently: We are more g o a l s - o r i e n t e d rather than simply looking to "beat the market." We often must take a leave from our careers to care for children or aging parents. We are our family's planners, wanting to leave a nest-egg behind for future generations. Just think of where all of us defi- ant women and girls can be if we carve out our piece of financial power and hold it in our own hands. n Magdalena G. Johndrow is an associate financial advisor at Farmington River Financial Group. She recently joined Farmington River Financial Group from Wall Street, where she most recently worked at JPMorgan. HARTFORDBUSINESS.COM POLL Does having a wider array of restaurants and cuisines available locally make you more likely to dine out? ● Yes ● No To vote, go online to HartfordBusiness.com. Last week's poll results: Does CT need a law to guarantee equal pay for women? 24.1% Yes 75.9% No Vanessa E. Rossitto Magdalena G. Johndrow OPINION & COMMENTARY ▶ ▶ Business friendliness and sound government policy do not have to be mutually exclusive concepts. ▶ ▶ Until women are financially equal to men, we cannot be discnering in our job choices, in our familial and reproductive choices, and in our relationship choices. Send Us Your Letters The Hartford Business Journal welcomes letters to the editor and guest commentaries for our opinion pages. Electronic submissions are preferred and welcome at: editor@HartfordBusiness.com.

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