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A Woman’s Journey. Toward Financial Independence. The good news: Women are more rational, often making them better investors 1 Among full-time, full-year workers, females were more likely to participate in a retirement plan than males 2 - PowerPoint PPT Presentation
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Investing Your Way
Reasons for Optimism
Challenges
Strategies
Agenda
2
Reasons for Optimism
3
4
Reasons for Optimism
Women will surpass men in college degrees (2013-2022)1…
1No commencement speaker will mention the huge gender college degree gap for the class of 2013 favoring women, www.aei-ideas.org, May 2013
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Reasons for Optimism
In 2012, 29% of women out-earned their husbands versus 17.8% in 19871
1Breadwinner Moms, pewsocialtrends.org, May 29, 2013
…income…
6
Reasons for Optimism
…and are taking charge…
Woman-owned small businesses are growing twice as fast as men’s1
of new U.S. jobs will be generated by female-owned companies by 20182
1Women Launching 1,200 New Businesses a Day, New Research Shows, www.americanexpress.com2Fast-Growing Small Businesses Led by Women, www.kiplinger.com, May 2011
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Women lead some of the world’s foremost companies: General Motors, Hewlett-Packard, IBM, PepsiCo, and Lockheed Martin,1 and more
20 years ago there were none
1Number of Fortune 500 women CEOs reaches historic high, http://management.fortune.cnn.com, June 2014
Reasons for Optimism
…and leading
Tend to focus on longer-term, non-monetary goals
More likely to ask for direction
Tend to be more thorough; take more time making decisions
1Women are mostly better investors than men, www.usatoday.com, March 9, 2014
Reasons for Optimism
Three ways women are better investors than men:1
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Reasons for Optimism
Overall mental health improves with age
General life satisfaction increases with age
Women feel less lonely as they grow older; more affirmed and appreciated
1Could Aging Be Good for Women?, www.psychologytoday.com, post published by Susan Nolen-Hoeksema on Jan 12, 2010 in The Power of Women, www.huffingtonpost.coml
Women flourish as they age
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Challenges
11
Who has time to plan?
Challenges
12
Women often play three complex roles within their families
1Connecting with the women in your workforce, Joseph F. Coughlin, www.tiaa-cref.org, retrieved 5/20/15
Challenges
13
1Data source: U.S. Census Bureau, Income and Poverty in the United States: 2013, issued September 2014
Women still earn less than men
Challenges
14
1Your 'High-Earning Years': Salary Secrets For Your 20s, 30s And 40s, forbes.com, 1/13/14
Women reach an income threshold earlier than men
Challenges
Women spend less time in the work force
Challenges
1Data source: Women and Caregiving: Facts and Figures, caregiver.org
Women are main providers of parental care
The average caregiver:1 49-year-old woman married employed caring for her widowed
mother who doesn’t live with her
Challenges
Being a caregiver: Cost to women vs. men1
1The MetLife Study of Caregiving Costs to Working Caregivers, June 2011
Challenges
Life expectancy at age 65:1
16 17 18 19 201Data source: Health, United States, 2011, www.cdc.govLongevity data presented does not reflect mortality from birth statistics available from U.S. Census Bureau.2Aging Women, Living Poorer, contexts.org, Fall 2014
Women may have to manage alone…
Challenges
…and their money has to last longer
Help living independently (as of 20151)
1Genworth 2015 Cost of Care Survey, www.genworth.com
Challenges
Women lack confidence when it comes to investing
1Fidelity's most powerful women on ‘The Confidence Gap,’ http://fortune.com, 9/28/2014
52% of women still think that their husband or male partner does a better job overseeing the family finances.1
Challenges
Many women are less prepared for retirement than men
1The Gendernomics of Retirement Saving, institutional.vanguard.com, September 11, 2014
Average account balances, 20131
Challenges
Strategies
22
Meet with your financial advisor to identify and prioritize your goals
Strategies
Use the workbook to:
Calculate your net worth Tally monthly spending Identify personal goals
Coffee example assumes the savings of $4.50 per latte, three times per week ($13.50). Gym example assumes the savings of $17.50 per week. ATM example assumes the savings of $12.50 per week. Lunch example assumes the savings of $37.00 per week. Retirement money example assumes the savings of $80.50 per week on all items. All of the above savings examples use the average annual rate of the S&P 500 Total Return (11.08%) for the past 75 years. Data Source: Morningstar Direct,1/15.Past performance is not indicative of future results. For illustrative purposes only. Investors cannot invest directly in an index.
If you invested the money you would’ve spent on all of these items, you’d have: $160,962
Do You: What if You:Savings Over 15-Year Period:
Drink a gourmet coffee every morning?
Have a gym membership you don’t use?
Head for the closest ATM?
Go out for lunch every day during the week?
Brewed your own coffee at home 3 times per week?
Bought a treadmill?
Used your bank’s or a no-fee ATM?
Brown-bagged your lunch?
$26,994
$34,992
$24,994
$73,982
Why Small Expenses Matter
Protect Your Budget
Strategies
Focus on the fundamentals of investing
3/31/04 3/05
500
1000
1500
2000
S&P 500 Index
2
100
150
200
250
300
350
400
450
500
CNBC
Vie
wer
ship
(in
thou
sand
s)1
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.Index descriptions are included on last slide. For Illustrative purposes only. The performance shown is index performance and is not indicative of any Hartford mutual fund. Investors cannot invest directly in an index.1Data Source: Nielson Media Research/Zero Hedge, June, 20142Data Source: Yahoo Finance, 1/15
3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/14 6/30/14
25
3/13
Avoid investing undue attention in the negative
Strategies
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.Index descriptions are included on last slide. For Illustrative purposes only. The performance shown is index performance and is not indicative of any Hartford mutual fund. Investors cannot invest directly in an index.1Data Source: Yahoo Finance, 1/152Data Source: Investment Company Institute, 1/15
12/31/14
26
1/07 1/08 1/09 1/10 1/11 1/12 1/13 1/14500
1000
1500
2000
-$800
-$700
-$600
-$500
-$400
-$300
-$200
-$100
$0
$100Auto
Industry’sbailout
unveiled
“Flash Crash”:Dow plummets
999 points
BP oil spill
Fed announces third round of Quantitative Easing (QE3)
80,000 people riot asGreece signs austerity
measures
Standard& Poor’slowers the U.S. credit rating
Fed launchessecond round
of QuantitativeEasing (QE2)
Lehman & Washington Mutual bankruptcies
TARP signed into law
Fed launchesQuantitative Easing (QE1)
Unemployment rate hits 10.2 percent
Bear Stearns sells for one-tenth of its market
price
Supercommittee fails to agree on
Deficit Reduction Plan
Facebook IPO disappoints
Sequesterbudget cuts
begin
U.S. GovernmentCloses for Business
Troubled Debut of Affordable Care Act
Dom
estic
Equ
ity M
utua
l Fun
d Fl
ows (
in b
illio
ns)2
S&P
500
Inde
x1
Detroit files fornation’s largest public
Sector bankruptcy
Ebola outbreak
Focus on the fundamentals of investingIf it’s not clear, that doesn’t mean it’s bad
Strategies
27
If you’re approaching or already in retirement
Simplify multiple IRA accounts by consolidating Take Required Minimum Distributions to avoid
IRS penalties Get the most out of Social
Security—know your options Control how beneficiaries
receive distributions
Strategies
There might be additional fees involved in consolidating your IRA accounts.
Investing Your Way
28
Reasons for OptimismAdvantages women have
ChallengesSpecific factors to recognize
StrategiesTake control of your future
Main Idea
29
Use your strengths to proactively take control of your future
Next steps:
1 2 3Complete pages7-8 of the workbook
Make an appointment
with your advisor
Collaborate to create or refine your future
strategy
Next Steps
SEM_WI 9/15 118102-1
All investments are subject to risk including the loss principal.
Investors should carefully consider the investment objectives, risks, charges, and expenses of Hartford Funds before investing. This and other information can be found in the prospectus and summary prospectus, which can be obtained by calling 888-843-7824 (retail) or 800-279-1541 (institutional). Investors should read them carefully before they invest.
Hartford Funds are underwritten and distributed by Hartford Funds Distributors, LLC.
This seminar has been funded in whole or in part by Hartford Funds Distributors, LLC.
All information and representations herein are as of 9/15 unless otherwise noted.