Financial Bootcamp for Women - The Basics. A presentation geared to women beginning to take charge of their financial lives. Simple and easy-to-understand tips.
2. Important Disclosure
Everything in this presentation today is intended to be
educational in nature, and hopefully will assist you in reaching
your financial goals. However, it is all general in nature, and not
specific to any of you or your circumstances.
Nothing we say here today can replace real investment advice
that is rendered after a thorough review of your financial
situation.
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3. Tonight’s Agenda
• A Personal Story – Tina Powell
• Women and Money – Research and Insights
• Bootcamp Action Plan – Mark Germain, CFP®, MBA, ADPA®
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Getting Your Financial House In Order
Retirement: Start Early
Defining Your Investment Strategy
Tax Efficiency
Estate Planning Basics
Frequently Asked Questions
• Next steps
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5. The house does not rest upon the ground, but upon a woman.
~Mexican Proverb
Read
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6. Health and Life Expectancy
• A woman turning age 65 today can expect to live, on average,
until age 86.
• A man reaching age 65 today can expect to live, on average,
until age 84.
• About one out of every four 65-year-olds today will live past
age 90, and one out of 10 will live past age 95.
Source: Social Security Administration
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7. Source: Social Security Life Expectancy Calculator
http://www.ssa.gov/cgi-bin/longevity.cgi
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8. Women, Work, and Caregiving
• The percentage of family or informal caregivers who are
women range from 59% to 75%.
• The average caregiver is age 46, female, married and working
outside the home earning an annual income of $35,000.
• The toll that caregiving takes is not just financial; higher levels
of depression, anxiety, and other mental health challenges are
common.
• Female caregivers may spend as much as 50% more time
providing care than male caregivers.
• The value of the informal care that women provide ranges
from $148 billion to $188 billion annually.
Source: Family Caregiver Alliance
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9. The Female Caregiver
• Significantly less likely to receive a pension and, when they
do, the pension is about half as much as those that men
receive.
• Likely to spend an average of 12 years out of the workforce
raising children and caring for an older relative or friend.
• Caregivers who return to full-time employment after
caregiving are more likely to:
• Earn lower wages
• Have a “benefit-poor” job
• Receive reduced retirement benefits.
Source: Family Caregiver Alliance
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11. Bootcamp Action Plan
Mark Germain, CFP®, MBA, ADPA® – Founder and CEO
Norman Sohn, MD, MBA – Managing Director
Beacon Wealth Management
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12. Your Financial House In Order
First Step
Formulate
plan
What you
owe
Organize
financial
documents
What you
own
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13. Where Is It? Partial List
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Birth certificate
Passport
Valid driver’s license
Marriage license
Divorce decree
Prenup agreements
Bank accounts
Saving accounts
Investment accounts
Retirement accounts
College savings accounts
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Tax returns
Wills
Trusts
Powers of attorney
Health care proxy
Insurance policies
Real estate deeds
Credit cards
Keys/combinations
Online passwords
Bills
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14. Online Tools to Make It Easy
Mint.com
• Free online tool
• Aggregates checking,
savings, investment
accounts
• Create personal
statements
• Analyze spending and
create budgets
eMoney Advisor
• For Beacon clients
• Aggregates
checking, savings, invest
ment accounts plus
miles, hotel, etc.
• Create personal
statements
• Analyze spending and
create budgets
• Online repository to
store important info you
can access from
anywhere
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16. Calculating Retirement
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How much do I need for retirement?
Do you want to maintain your current lifestyle?
Are you married? Different tax and social security benefits
Location of residency makes a difference
Calculate based on a % of pre-retirement income or desired
income
• Establish goals and time horizons
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Increase savings rate
Adjust retirement lifestyle
Work longer at current job
Work part-time during retirement
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17. Defining Your Investment Strategy
Asset allocation is the practice of dividing resources among different
categories such as stocks, bonds, mutual funds, investment
partnerships, real estate, cash equivalents and private equity.
The theory is that the investor can lessen risk because each asset class
has a different correlation to the others; when stocks rise, for example,
bonds often fall.
Your investment horizon and long-term financial goals
Your return requirements
Your risk tolerance
Your constraints
Your tax situation
Source: About.com
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18. Tax Efficiency
Sale of stock
• Capital Gains Tax
• Long-term
• Short-term
• Dividend Income Tax
• Cost-basis
• Wash rule
• RMDs
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19. Estate Planning Basics
• Must work with an estate planning attorney
• Wills and trusts
• All required documents
• Important decisions to make
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Beneficiaries and contingent beneficiaries
Naming an executor
Guardianship of your children
Appointing a trustee
Passing assets to next generation
• While you are alive
• Health care proxy
• Living will
• Power of attorney
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20. Frequently Asked Questions
• What is the difference between the Dow, S&P 500, and Nasdaq?
• Why should I care about how the stock market did today if I
don’t own stocks?
• Can you explain the role of the Federal Reserve and Janet Yellen?
• What is inflation? Is it something I have to worry about?
• Do I need insurance and long-term care?
• Is social security going to end?
• I’m not rich. Do I still need to do a will?
• What is considered a good rate of return on my investments?
• How good are annuities and reverse mortgages?
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21. Next Steps
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Join our mailing list
Participate in the Financial Bootcamp for Women Series
Follow us on Beacon Blog, LinkedIn, and Twitter
Enjoy a complimentary 1-hour consultation
Financial Bootcamp for Women Package - $2,500.
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Scans of your original documents
Help you organize your financial information
Traditional organizer
Set up an online eMoney personal financial profile
2nd opinion of your current investment accounts
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Does not take into account a wide number of factors such as current health, lifestyle, and family history that could increase or decrease life expectancy. Based on the gender and date of birth you entered (your cohort).Mom: 87.6, Mark: 85.7
On Dec. 28, 1967, Muriel "Mickie" Siebert became the first woman to own a seat on the New York Stock Exchange -- a full 175 years after the exchange was founded. According to Siebert, her NYSE member badge was the most expensive piece of jewelry she ever bought (at $445,000), and it was also the hardest earned. She had been turned down by nine prospective sponsors before finding the two she needed to endorse her application.As the lone woman among 1,365 men at the exchange, Siebert wasn't universally welcomed. Headlines such as "Skirt Invades Exchange" and "Powder Puff on Wall Street" conveyed a reluctance on "the Street" to accept a sea change that had been making its way through many other professions for years. In fact, when Siebert purchased her seat, she wasn't issued the standard scroll all new members received, and which she was required to display. She didn't receive it until the following year, when the exchange had a new president.
Your investment horizon and long-term financial goals: Your money needs to keep working for you far into the future, even if you’re already retired. Do the work now to project your long-term cash flow.Your return requirements: What kind of return do you need from your portfolio? The answer will tell you how conservative or aggressive your investment strategy needs to be.Your risk tolerance: How far are you willing to go to get the return you need? The higher the return you’d like, the more risk you must take.Your constraints: Constraints are nonnegotiable, period. Maybe you won’t consider certain investments for personal or moral reasons, for example. Maybe you won’t even think about dropping a poorly performing stock from your portfolio because you inherited it from your Great-Aunt Jenny.Your tax situation: Tax-free, lower-yielding municipal bonds may be a good choice for you now — however, taxable, and higher-yielding, bonds may serve you better in retirement, if you end up in a lower tax bracket.