7 savvy secrets_rev

Registered Representative, Securities offered through Cambridge Investment Research Inc., a Broker/Dealer, Member
FINRA/SIPC.
Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor.
Cambridge and the Gaxiola Financial Group are not affiliated.

Twitter Handle #TGF2012

This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS
1 not be construed as specific tax, legal, financial planning or investment advice.

Nuveen Investments Wealth Management Services

Women and Money:
Seven Savvy SECRETS to Financial Success

This presentation is provided for informational and educational purposes only and should not be
construed as specific tax, legal, financial planning or investment advice.

© 2011 Nuveen Investments, Inc. For use with Financial Advisors and Clients in Consultation with their Financial Advisors

Agenda

Four Generations of Growth and Change




Growing Up

A woman’s attitude towards money
is largely based on
what society’s expectations
were of women
during her youth.



How Things Have Stayed The Same

Prince Charming Myth

When I grow up,
I’m going to marry
a rich man
who will take care of me
and I’ll live
happily ever after.



How Things Have Stayed The Same

Frog to Prince Ratio 50:1



1. Solid financial foundation
2. Employment benefits
3. Charitable giving
4. Retirement planning
5. Experienced financial counsel
6. Transition planning
7. Staying on track



1. S is for Solid financial foundation

Before anything else, preparation is the key to success.
– Alexander Graham Bell


1. Solid Financial Foundation

Emergency Fund

• How much do you need?

• How should it be invested?

• How should it be titled?



Managing Credit

• Remember Layaway?

• Buy now/Pay forever

• Managing Debt

• Paying Off Debt
‒ Transferring Balances
‒ Payment Strategies



Your FICO Score Matters

• Why it matters

• Monitoring your score



2. E is for Employment benefits

Not taking advantage of an employer’s match is like leaving money on the table


2. Employment Benefits

Traditional 401(k)
• Pre-tax dollars

• Contribution Limits

• Catch-up Contributions

• Employer Matching

• Loans

• Distributions

• Taxation at Time of Distribution



Roth 401(k)
• After-tax dollars

• Contribution Limits

• Catch-up Contributions

• No Employer Matching

• Loans

• Distributions

• Tax-free Growth



Conversion and Rollover Considerations
• During employment

• After termination of employment

Taxation
• Converting from Traditional 401(K) to Roth 401(K)

• Rollover from traditional 401(K) to Traditional IRA

• Rollover from traditional 401(K) to Roth IRA



Business Owners and Self Employed

Qualified Plans

• SEPs and SIMPLEs

• Individual 401(k)

• Other

Nonqualified Plans



3. C is for Charitable giving

Many persons have a wrong idea of what constitutes true happiness. It is not
attained through self-gratification but through fidelity to a worthy purpose.
–Helen Keller


3. Charitable Giving

• Single women give more than single men1

• Married men and married women give more than single men2

• Women who participate in donor education programs are more likely to give3

• 70% of all CEOs and Officers of not-for-profit organizations are women4

Sources: 1The 2010 Study of High Net Worth Philanthropy, sponsored by Bank of America Merrill Lynch, researched and written by The Center on Philanthropy at Indiana
University, November 2010. This study reflects the attitudes and behaviors of more than 800 respondents throughout the United States with household income greater than
$200,000 and/or net worth (excluding the value of their residence) of at least $1,000,000.
2Giving USA, 2010

3“The Case for Better Philanthropy, The Future of Funding for Women and Girls”

4Women & Philanthropy, 2004, and Giving USA, 2006



Ways to be Philanthropic
Inside every woman is a potential major philanthropist waiting to emerge.
–Joan M. Fisher, Philanthropist

Simple Direct Support Donor-Advised Private
Donations Organizations Funds Complex
Foundations



Ways of Transferring Wealth

1. Pay As You Go

2. UGMA/UTMA Accounts

3. 529 Savings Plan

2/3 of grandparents say they want to help fund their grandchildren’s education



4. R is for Retirement planning

57% of women over 65 are facing retirement alone.
–Source: U.S. Census Bureau, Current population Survey, Annual Social and Economic Supplement, 2008,
Internet release date: June 2009


4. Retirement Planning

Today’s retirees are responsible for creating the majority of their retirement income

On your own

44%

18%

63%
19%
19%

Pension Social Secutity Earned Income Investments and other

Source: Income of the Aged Chartbook, 2008, Social Security Administration. Chart of key sources of retirement income for households with annual incomes of $56,000 or more.



Today, individuals are inclined to work beyond age 65

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Plan to work in early retirment years 24%

Plan to work throughout entire retirement 47%

Plan not to work in retirment 16%

Source: “MFS Retirement Survey Shows Income Planning Needed for Pre-Retirees,” MFS Investment Management, March 18, 2008



Today, the retirement age reflects that we’re living longer

Benefit Reduction Full Retirement
Year of Birth1
Retire at Age 622 Age 663
1943-1954 25.00% –

1955 25.83% + 2 months

1956 26.67% + 4 months

1957 27.50% + 6 months

1958 28.36% + 8 months

1959 29.17% + 10 months

1.If you were born on January 1st, you should refer to the previous year.
2.Percentages are approximate due to rounding
3.If you were born on the 1st of the month, we figure the benefit as if your birthday was in the previous month. You must be at least 62 for the entire month to receive benefits.



Strategies for Maximizing Social Security

“File and Suspend”
• High earning spouse files for own benefit at FRA to
make low earning spouse eligible for spousal benefit
• High earning spouse immediately suspends own benefit
to earn delayed credits until age 70

“Claim now, claim more later”
• High earning spouse claims spousal benefit at age 66
• Low earning spouse filed for own benefit (at FRA)
• High earning spouse switches to own benefit at age 70

Source: Horses Mouth, 5 Keys to Profitable Social Security Planning, Elaine Floyd, CFP® 12/9/2010



The Medicare Part D Prescription Drug Coverage

The Doughnut Hole* – The gap in coverage where the participant must pay 100% of the next $3,610 of
prescription drug charges. This results in a total out of pocket expense on the first $6,440 in prescriptions of
$4,550. After doughnut hole, coverage resumes with participant paying 5% (after $6,440 in prescriptions)

$2,530 $3,610 $6,447.50

*Some coverage variability exists; this is a general description
Source: College For Financial Planning



5. E is for Experienced financial counsel

The world is full of experts, but great communicators are always in short supply.
–Nick Murray, The New Financial Advisor


5. Experienced Financial Counsel

What Advised Investors Say

The "value I have received from
my financial advisor was more 79%
than worth the cost“

Their portfolio has done better
over the past two years compared 62%
with most people they know

Advisor "did not explain
the risks of the market as well 12%
as he/she should have"

Source: Envestnet, National surveys of 1,023 investors with $250,000 in assets or more and 504 financial advisors were conducted via the internet between April 14 and 30, 2010 for advisors and April 21 and 27 for
investors by the national polling firm of Mathew Greenwald & Associates.



Integrated Wealth Management

Tax Planning
Family Governance
Risk Management
Legacy Planning
Charitable Solutions
Retirement Advice
Liability Management
Investment Guidance

Neither Nuveen Investments Wealth Management Services nor its employees offer tax or legal advice. You must consult with your personal legal or tax advisor regarding your
personal circumstances..



Build a Relationship with your Financial Advisor
• Keep them involved in your progress
• Use them as a resource
• Take part in review meetings



Know what there is and where to find it
• Location of important financial documents and/or
computer files
• Telephone numbers of financial counselors
– Financial Advisor
– Accountant
– Attorney
• Debts and Assets
– Dollar amount of your debts and assets
– Retirement Assets
– Debt repayment schedules
• Insurance Coverage
– Home owners
– Life/Health/Disability/Long term care
– Automobile



6. T is for Transition planning

90% of women will be the sole financial decision-maker at some point in their life.
–Source: Center for Women’s Business Research 2006


6. Transition Planning

Death of a Spouse
• General Statistics

• Sorting through and making changes to paperwork
– Beneficiary
– Checking, savings and brokerage accounts
– Wills
– Powers of Attorney
• Health Insurance
– COBRA
– Individual coverage
• Impact of changes to retirement planning
– Retirement accounts
– Life insurance proceeds
– Change in financial goals
– Long Term Care



Divorce
• Cash Flow Issues

• Distribution of assets and liabilities

• After the divorce is final
– Sorting through and making changes to
paperwork

– Understanding impact of changes to
retirement planning

– Lifestyle changes

– Wealth transfer



Estates and Trusts
• Estate Planning
– Distribution of wealth after passing
– Estate, gift, and generation-skipping transfer taxes
– Estate tax exclusion amount
– Titling of assets
– Probate process
– Planning for disability or incapacity
• Trusts
– Benefits and costs
– Role in estate planning
– Common types



Specific Concerns for Female Creators of Wealth
Wealth Transfer Strategies - Qualified Terminal Interest Property (QTIP)

Available Exemption
Amount

Credit Shelter Beneficiaries
Trust

At the death of the
second spouse

Children of First
QTIP Trust
Marriage

Balance Unlimited
Martial Deduction



6. T is for Transition planning
7. S is for Stay on track

Even if you're on the right track, you'll get run over if you just sit there
–Will Rogers


7. Staying on Track

Female College Enrollment

Total Fall Enrollment in Degree-Granting Institutions
60% 56% 57%
54%
50%
40%
40%
29%
30%

20%

10%

0%
1947 1967 1987 1997 2008

Source: U.S. Department of Education, National Center for Education Statistics, Biennial Survey of Education in the United States; Opening Fall Enrollment in Higher
Education, 1963 through 1965; Higher Education General Information Survey (HEGIS), "Fall Enrollment in Colleges and Universities" surveys, 1966 through 1985; and 1986 through
2008 Integrated Postsecondary Education Data System, "Fall Enrollment Survey" (IPEDS-EF:86-99), and Spring 2001 through Spring 2009. (This table was prepared September
2009.)


7. Staying on Track

Guarding Against Identity Theft
• Checking Account Balance
• What’s in your wallet?
• Gel Pens
• Secure Websites

Handbag image


7. Staying on Track

What is a secure website?
• HTTPS (Hyper Text Transfer Protocol Secure) is a
secure version of the Hyper Text Transfer Protocol
(http).
• Secure means of transferring data where secure
ecommerce transactions, such as online banking
transactions and other financial transactions are
involved.
• https:// = Secure Site
• Don’t forget to check for the “S”

http/https image


7. Staying on Track

In 2009, 8 million firms were at
least 50% owned by women
Employing more than 23 million workers
Generating nearly $3 trillion in revenues
to the U.S. economy

Source: Center for Women’s Business Research, “The Economic Impact of Women-Owned Businesses in the United States”, October 2009



1. Solid financial foundation
2. Employment benefits
3. Charitable giving
4. Retirement planning
5. Experienced financial counsel
6. Transition planning
7. Staying on track


Resources

• Women & Money, Owning the Power to Control Your Destiny, Suze Orman, 2007
• Women Don’t Ask, Linda Babcock and Sara Laschever, 2007
• Reinventing Fundraising: Realizing the Potential of Women’s Philanthropy, Sondra C. Shaw
and Martha A. Taylor, 1995
• Women’s Philanthropy Institute: http://www.philanthropy.iupui.edu/philanthropicservices/WPI/
• Pink Magazine: http://www.pinkmagazine.com

The opinions expressed in these resources do not necessarily reflect the views of Nuveen Investments. Nuveen
assumes no liability for the content of any resource provided, including, without limitation, the accuracy, subject
matter, quality or timeliness of the content. The fact that such resources have been provided does not constitute an
endorsement, authorization, sponsorship by or affiliation with Nuveen with respect to any resource provided or its
sponsor.


Glossary of Terms

529 plan is a tax-advantaged investment vehicle in the United States designed to encourage saving for the future higher
education expenses of a designated beneficiary. It is named after section 529 of the Internal Revenue Code. The detailed
behavior of 529 plans is determined by state legislation, and while most plans allow investors from out of state, there can be
significant state tax advantages and other benefits, such as matching grant and scholarship opportunities, protection from
creditors and exemption from state financial aid calculations, for investors who invest in 529 plans within their state of residence.
Donor-Advised Fund is a charitable giving vehicle set up under the tax umbrella of a public charity, which acts as sponsor to
many Funds.
Private Family Foundation has an endowment fund with which it invests and then uses the investment returns to fund public
charities. If a private foundation does not invest in public charities then the private foundation may directly perform the function
of a public charity by using the investment returns as the funding.
Private Operating Foundation is any private foundation that spends at least 85% of its adjusted net income or its minimum
investment return, whichever is less, directly for the active conduct of its exempt activities. Certain private foundations that
provide long-term care facilities are treated as operating foundations only for the purposes of the excise tax on failure to
distribute income.
A Qualified Terminal Interest Property Trust or “QTIP” is an irrevocable trust that is created at the death of the grantor, often in
conjunction with a Credit Shelter Trust. It can be drafted to preclude the surviving spouse from appointing the remainder to a
second spouse or children from a second marriage.
Roth 401(K) is a type of employer-sponsored retirement plan that allows a worker to save for retirement on a post-tax elective
deferral basis.
Supporting organization is a public charity created by the U.S. Internal Revenue Code in 26 USCA 509(a)(3). A supporting
organization either makes grants to, or performs the operations of, a public charity similar to a private foundation.
Traditional 401(K) is a type of employer-sponsored retirement plan that allows a worker to save for retirement while deferring
income taxes on the saved money and earnings until withdrawal. All assets in 401(k) plans are tax deferred.
UGMA/UTMA state laws that allow any adult to contribute to a custodian account in a minor child's name without having to
name a legal guardian or establish a trust.


Important Disclosures

For use by financial advisors and clients in consultation with their financial advisors. Clients should
consult their financial advisors regarding any unknown terms and concepts. Financial advisors
should consider the suitability of the manager, strategy and program for its clients on an initial and
ongoing basis.

This presentation is provided for educational and informational purposes only, and should not be
construed as specific tax, legal, financial planning or investment advice. The statements contained
herein are the opinions of Nuveen Investments Wealth Management Services. All opinions and
views constitute our judgments as of the date of writing and are subject to change at any time
without notice. Please note that this information should not replace a client’s consultation with a
professional advisor regarding their tax situation. Nuveen is not a tax advisor. Clients should
consult their professional advisors before making any tax or investment decisions. This
presentation should not be regarded by recipients as a substitute for the exercise of their own
judgment. This presentation contains numerous assumptions. Different assumptions could result in
materially different results. Neither Nuveen Investments nor any of its
affiliates, directors, employees or agents accepts any liability for any loss or damage arising out of
the use of all or any part of this presentation. Certain information was obtained from third party
sources, which we believe to be reliable but not guaranteed. All investments carry a certain degree
of risk, including possible loss of principal, and there is no assurance than an investment will
provide positive performance over any period of time. Past performance is no guarantee of future
results.


Nuveen Investments Wealth Management Services

Women and Money:

This presentation is provided for informational and educational purposes only and should not be
construed as specific tax, legal, financial planning or investment advice.

06/11 For use with Financial Advisors and Clients in Consultation with their Financial Advisors

Registered Representative, Securities offered through Cambridge Investment Research Inc., a Broker/Dealer, Member
FINRA/SIPC.
Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor.
Cambridge and the Gaxiola Financial Group are not affiliated.

Twitter Handle #TGF2012


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