TOOL 6.3 WOMEN IN THE CONSTRUCTION WORKPLACE: PROVIDING EQUITABLE HEALTH AND SAFETY PROTECTION.
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Women and Investing5 Strategies to Help You Take Control
Variable Annuities: • Are Not a Deposit of Any Bank • Are Not FDIC Insured • Are Not Insured by Any Federal Government Agency • Are Not Guaranteed by Any Bank or Savings Association • May Go Down in Value
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Enduring strength
Courage
Strength
Wisdom
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Agenda
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Women as investors 5 Strategies to help youtake control
Be empowered – Take action!
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Women’s earning power and college graduation rates are at all-time highs
• Women control 32% of the world’s wealth, and are likely to see their wealth
reach $93 trillion by 20231
• Women now earn the majority of four-year degrees2
• Women earn 58% of master’s degrees and 53% of doctorates2
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1 Boston Consulting Group, April 20202 Annual Report on US Graduate School Enrollment and Degrees. The Council of Graduate Schools, October 2019
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• 51.5% of all management and professional roles
are held by women1
• 37% of wives earn more than their husbands2
• Women own 13 million businesses in the U.S.,
earning over $1.9 trillion in revenues3
Women’s position in the workforce and earning power are at all-time highs
1 Statistical Overview of Women in the Workplace, Catalyst, August 2018. www.catalyst.org2 Wives who earn more than their husbands 1987–2014, U.S. Bureau of Labor Statistics, 2015. 3 The State of Women-Owned Businesses, American Express, 2019.
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Women earn less moneythan men over their lifetime, reducing their ability to save
• Based on today’s wage gap, women would lose $460,000 over the course of a 40-year career1
• Only 62% of women have a plan to help protect themselves against outliving their savings2
• 56% of married women leave investment decisions to their husbands3
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Unique challenges for women
1 The Lifetime Wage Gap, State by State, National Women’s Law Center, March 2019.2 Nationwide Advisory Solutions Study, 20193 UBS Proprietary Research, 2018
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Unique challenges for women
• The divorce rate among 50-somethings has more than doubled since 19901
• The average U.S. woman becomes widowed at age 592
• Women spend more on healthcare than men over their lifetimes3
• Women are expected to live 81.2 years from birth, outliving their male counterparts by nearly 5 years4
1 Pew Research Center, March 20172 U.S. Census Bureau Data, July 10, 20143 Centers for Disease Control and Prevention, Mortality in the United States 2012, 2013 4 World Health Organization, February 2017
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Knowledge is power
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Presentation title here – month 00, 000
5 Strategies to help you take control
Time & money
Value from variety
Keep as much as you can
Seeking stability
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Knowledge is power
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STRATEGY
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STRATEGY 1: Knowledge is power
Value of knowledgeImpact of guidance
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• Women who use a financial professional are twice as likely to feel on track with their retirement planning
• Feel more confident and more willing to take risks• Save and invest more• Use multiple financial tools
(DC Plan, IRA’s, Mutual Funds, Stocks/Bonds, Annuities)
1 Prudential Study; Financial Experience and Behaviors Among Women, 2014 -2015
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As a means of increasing your peace of mind• Find a financial professional who can give you a
holistic view of assets• Approach the conversation from the position of
“comfort” (i.e., this is for my loved ones)• Determine which product is right based on your
stage in life
STRATEGY 1: Knowledge is power
Protect what mattersLife Insurance and Long-Term Care…have you thought it through?
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Many times people avoid thinking of Life Insurance and Long-Term Care as part of their Financial Plan• Brings about negative emotions• They are covered by their employer• Would rather use the disposable
income for current expenses
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Time & moneyTaking control
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STRATEGY
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STRATEGY 2: Time & money
Why not today?Compounding
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Chart assumes 7% rate of return for illustrative purposes. These figures are not intended to indicate the performance of any specific investments. Taxes and fees were not taken into consideration. Rates of return will vary over time, particularly for long-term investments. Investments offering the potential for higher rates of return also involve a higher degree of risk.
Age Years
Until 65Monthly
ContributionTotal
Contribution Earnings Total Value
25 40 $189 $90,905 $409,095 $500,000
30 35 $276 $115,920 $384,070 $500,000
35 30 $407 $146,689 $353,311 $500,000
40 25 $614 $184,090 $315,905 $500,000
45 20 $954 $229,023 $270,977 $500,000
50 15 $1,569 $282,229 $217,701 $500,000
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STRATEGY 2: Time & money
But it’s not too late…
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Think positive• Your mortgage may be closer to being paid off• You are in your top earning years• You have a better understanding of retirement income needsCatch-up contributions for age 50+Consolidate retirement accounts for easy management
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STRATEGY 2: Time & money
Don’t be afraid of creating a budget…
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• Creating a budget isn’t about limitations• Understanding cash flow creates options
& opportunities• Consider rising healthcare costs• Leave a cushion
Annual expenses to address during retirementHousing Mortgage, Rent
UtilitiesInsuranceMaintenanceOther
$____________$____________$____________$____________$____________
Food GroceriesDining OutOther
$____________$____________$____________
Transportation Monthly PaymentsInsuranceFuel & MaintenanceOther
$____________$____________$____________$____________$____________
Healthcare & Insurance
Insurance (Health, Life, Long-Term Care, Disability)Co-Pays & Services Not Covered by InsuranceDrugs & Medical SuppliesNursing HomeOther
$____________$____________$____________$____________$____________$____________
Personal Care ClothingProducts & ServicesOther
$____________$____________$____________
Taxes Income TaxesProperty TaxesVehicle Taxes
$____________$____________$____________
Discretionary GiftsCharitable ContributionsEntertainmentRecreation/TravelHobbiesEducationFamily CareOther
$____________$____________$____________$____________$____________$____________$____________$____________
Total of retirement expenses $ ______________
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Value from varietyInvestments
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STRATEGY
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Source: J.P. Morgan Market Insights U.S. Q2 2020
STRATEGY 3: Investments
Stock market since 1900After every decline the market historically bounces back, up over 200% since 2009
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S&P Composite IndexLog scale, annual
1
10
100
1,000
1900 1909 1918 1927 1936 1945 1955 1964 1973 1982 1991 2000 2010 2019
Recessions
Tech boom(1997-2000)
End of Cold War
(1991)
Reagan era(1981-1989)
Post-Warboom
New Deal(1933-1940)
Roaring 20s
Progressive era (1890-1920)
World War I(1914-1918) Great
Depression(1929-1939)
World War II(1939-1945)
Korean War(1950-1953)
Vietnam War(1969-1972)Oil shocks
(1973 & 1979)
Stagflation (1973-1975)
Global financial crisis (2008)
BlackMonday(1987)
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10.19%
8.63%
7.58%
6.64%5.79%
4.99% 4.22%
Fully invested Missed 10 best days Missed 20 best days Missed 30 best days Missed 40 best days Missed 50 best days Missed 60 best days
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Impact of staying in the market
Source: J.P. Morgan Asset Management analysis using data from Bloomberg.
Trying to time the market is extremely difficult. Market lows often result in emotional decision-making. Investing for the long term while managing volatility can result in a better retirement outcome.
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7 of the best 10 days occurred within 2 weeks of the 10 worst dayso The best day of 1997 – October 28 –
was only 1 day after the worst day –October 27
o The best day of 2011 – August 9 –was only 1 day after the worst day –August 8
Return of the S&P 500®
Performance of a $10,000 investment between January 2, 1969 and December 31, 2019
$1,410,981
$680,410
$414,513
$265,002$176,330
$119,638 $82,502
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The goals of diversification
• Spread your investment
• Balance risk
• Avoid overlap
• Add asset classes
• Regular reviews
STRATEGY 3: Investments
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Keep as much as you canTax & estate planning strategies
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Tax deferralA robust tax-deferred growth opportunity
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The Power of Tax Deferral (Growth over 20 Years)
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$100,000
$288,474
$466,096
Initialinvestment
Withouttax deferral
With tax deferral,before withdrawal
The Chart below is a hypothetical illustration of the potential advantages of tax-deferred over taxable investments over time. The illustration assumes an annual return of 8% (not guaranteed) and federal a tax rate of 32%
This hypothetical chart does not represent actual performance of any specific product or investment. Withdrawals of tax-deferred earnings are subject to ordinary income tax treatment. A 10% federal tax may also apply if you take the withdrawal before you reach age 59½. Dividends and sales profits on annually taxed investments are generally taxed at capital gains tax rates, which can be lower than ordinary federal income tax rates. Using capital gains tax rates with the taxed-annually investment would reduce the difference between the taxed-annually and tax-deferred accounts shown above. Consider your personal investment horizon and income tax bracket, both current and anticipated, when making an investment decision. These factors, as well as changes in tax rates and the treatment of investment earnings, may further affect the results of this comparison. Actual results will vary. Rates of return will vary over time, particularly for long term investments. Investments offering the potential for higher rates of return also involve a higher degree of risk. Assumes a lump-sum withdrawal or distribution.
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STRATEGY 4: Tax planning
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STRATEGY 4: Estate planning
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• Wills• Durable Power of Attorney• Patient Advocate - Medical Directive• Revocable Trusts• Designating Beneficiaries is essential
— Keep records up to date— Review periodically
Foundations of Estate Planning
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Share your love… Helps to provide confidence that your
assets will be distributed according to your wishes
Promotes honest and productive conversations with your loved ones about your wishes
Reassures your loved ones that they know your wishes and can help to carry them out
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STRATEGY 4: Estate planning
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Seeking stabilityRetirement income planning
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STRATEGY
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STRATEGY 5: Retirement income planning
• Inflation• Sustainable
withdrawal rates• Sequence of returns• Creating sustainable,
consistent income
Investment ChallengesIn distribution
Important note: Projections generated by Morningstar regarding the likelihood of various investment outcomes using the Ibbotson® Wealth Forecasting Engine are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary over time and with each simulation. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. © 2017 Morningstar. All rights reserved. 3/31/2017.
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STRATEGY 5: Retirement income planning
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Investor A Investor B
Initial amount invested $250,000 $250,000
Withdrawal amount @ 3% inflation $12,500 $12,500
Average return: A and B
+6.6% +6.6%
Average market return: Years 1-3
-10.87% +16.83%
Average market return:Years 28-30
Portfolio exhausted by 18 years
-10.87%
Result: How long $ lasted 18 years 30 Years
Result: $ amount left $0 $632,606.11
SusSustainable withdrawal rates
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This example is a hypothetical intended for illustrative purposes only and is not indicative of the actual performance of any particular product. These figures are are not intended to represent the performance of any specific investment, insurance contract, or other financial product. This example does not take into account the impact of any fees or taxes.
Age Annual Return
Year End Value Age Annual
ReturnYear End Value Age Annual
ReturnYear End Value Age Annual
ReturnYear End Value
65 $1,000,000 78 -15% $3,265,247 65 $1,000,000 78 -15% $1,116,291
66 5% $1,050,000 79 5% $3,428,510 66 -25% $750,000 79 -26% $826,056 67 28% $1,344,000 80 14% $3,908,501 67 -14% $645,000 80 22% $1,007,788 68 22% $1,639,680 81 24% $4,846,541 68 -10% $580,000 81 23% $1,239,579 69 -5% $1,557,696 82 14% $5,525,057 69 16% $673,380 82 16% $1,437,912 70 20% $1,869,235 83 8% $5,967,062 70 21% $814,790 83 9% $1,567,324 71 19% $2,224,390 84 -16% $5,012,332 71 5% $855,529 84 23% $1,927,808 72 23% $2,736,000 85 5% $5,262,949 72 -16% $718,645 85 19% $2,294,092 73 9% $2,982,240 86 21% $6,368,168 73 8% $776,136 86 20% $2,752,910 74 16% $3,459,398 87 16% $7,387,075 74 14% $884,795 87 -5% $2,615,264 75 23% $4,255,059 88 -10% $6,648,367 75 24% $1,097,146 88 22% $3,190,623 76 22% $5,191,172 89 -14% $5,717,596 76 14% $1,250,747 89 28% $4,083,997 77 -26% $3,841,468 90 -25% $4,288,197 77 5% $1,313,284 90 5% $4,288,197 Ave. Return 6.00% 6.00%
“Up” Market — Mrs. Green “Down” Market — Mrs. Blue
STRATEGY 5: Retirement income planning
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Age 5% Annual Withdrawals
Annual Return
Year End Value Age 5% Annual
WithdrawalsAnnual Return
Year End Value Age 5% Annual
WithdrawalsAnnual Return
Year End Value Age 5% Annual
WithdrawalsAnnual Return
Year End Value
65 $1,000,000 78 $50,000 -15% $3,265,247 65 $1,000,000 78 $50,000 -15% $1,116,291
66 $50,000 5% $1,050,000 79 $50,000 5% $3,428,510 66 $50,000 -25% $750,000 79 $50,000 -26% $826,056
67 $50,000 28% $1,344,000 80 $50,000 14% $3,908,501 67 $50,000 -14% $645,000 80 $50,000 22% $1,007,788
68 $50,000 22% $1,639,680 81 $50,000 24% $4,846,541 68 $50,000 -10% $580,000 81 $50,000 23% $1,239,579
69 $50,000 -5% $1,557,696 82 $50,000 14% $5,525,057 69 $50,000 16% $673,380 82 $49,291 16% $1,437,912
70 $50,000 20% $1,869,235 83 $50,000 8% $5,967,062 70 $50,000 21% $814,790 83 $0 9% $1,567,324
71 $50,000 19% $2,224,390 84 $50,000 -16% $5,012,332 71 $50,000 5% $855,529 84 $0 23% $1,927,808
72 $50,000 23% $2,736,000 85 $50,000 5% $5,262,949 72 $50,000 -16% $718,645 85 $0 19% $2,294,092
73 $50,000 9% $2,982,240 86 $50,000 21% $6,368,168 73 $50,000 8% $776,136 86 $0 20% $2,752,910
74 $50,000 16% $3,459,398 87 $50,000 16% $7,387,075 74 $50,000 14% $884,795 87 $0 -5% $2,615,264
75 $50,000 23% $4,255,059 88 $50,000 -10% $6,648,367 75 $50,000 24% $1,097,146 88 $0 22% $3,190,623
76 $50,000 22% $5,191,172 89 $50,000 -14% $5,717,596 76 $50,000 14% $1,250,747 89 $0 28% $4,083,997
77 $50,000 -26% $3,841,468 90 $50,000 -25% $4,288,197 77 $50,000 5% $1,313,284 90 $0 5% $4,288,197
Ave. Return 6.00% 6.00%
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This example is a hypothetical intended for illustrative purposes only and is not indicative of the actual performance of any particular product. These figures are are not intended to represent the performance of any specific investment, insurance contract, or other financial product. This example does not take into account the impact of any fees or taxes.
STRATEGY 5: Retirement income planning
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“Up” Market — Mrs. Green “Down” Market — Mrs. Blue
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STRATEGY 5: Retirement income planning
Creating an income plan
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• Understand how expenses change in retirement
• Review all sources of retirement income
• Non-discretionary expenses should be covered by guaranteed income
• Proactive Social Security strategies
• Annuities could meet multiple goals:— Guaranteed income for life* potential— Market participation— Asset protection— Death benefit options
*Guarantees within an annuity are based upon the claims-paying ability of the issuing company.
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Spousal benefits
Social Security benefits
Divorcee benefits Survivor benefitso A spouse can get 50% of
primary worker’s benefits
o A spouse will get the higher of their own benefit or the spousal benefit- ‘Deemed Filing’
o Primary earner must be collecting to have spouse be eligible
o Suspension of benefits eliminates spousal option
o Former spouses – If age 62 or older, a divorcee may qualify for benefits on a former spouse’s record under certain conditions
o A surviving divorced spouse could get the same benefits as a widow (survivors benefits) provided that the marriage lasted 10 years or more and the individual remains unmarried
o A surviving spouse will receive the higher of the either their own benefit or their deceased spouse’s benefit
o The surviving spouse must be at least 60 years old and must be married for at least 9 months prior to spouse’s death
o Not a ‘deemed filing’ - Surviving spouse still has the option to collect survivor benefit and then ‘switch’ to their own retirement benefit to take advantage of ‘Delayed retirement credits’
STRATEGY 5: Retirement income planning
*All benefits are subject to the retirement earnings test limits if claimed prior to full retirement age
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STRATEGY 5: Retirement income planning
What can a variable annuity offer…
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• Investment opportunity• Potential of guaranteed stream of lifetime
income• Guaranteed death benefit• Tax deferral
For a prospectus, which contains more complete information including investment objectives, risks, charges, and expenses, please contact your financial professional. Please read the prospectus carefully before you invest or send any money.
Schedule an appointment to speak to your financial professional about putting these strategies in place!
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Be EmpoweredTake action!
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Next steps
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Estate planning• Calculate your net worth• Review titling of assets• Designate beneficiaries• Complete a “Share Your Love Family Discussion
Guide”Investing • Consider tax-deferred retirement accounts• Consider investments that match your risk
tolerance with your return expectations• Understand investment challenges in retirement
Retirement income planning• Review proactive Social Security
strategies• Consider the value of guaranteed
income over the long term• Consider the use of annuities or
other tax deferred investment accounts to defer income taxes
Start today! Work with a financial professional you trust and one who understands you
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Thank you.
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Important informationAn annuity is a long-term financial product designed for retirement purposes. There are fees and charges associated with an annuity contract, which include, but are not limited to, operations charges, sales and withdrawal charges, administrative fees, and additional charges for optional benefits. Withdrawals are subject to ordinary income tax treatment and, if taken prior to age 591/2, may be subject to an additional 10% federal income tax penalty. Variable annuities are subject to investment risks, including the possible loss of principal invested.
Variable annuities are sold by prospectus only, which contains more complete information about the policy, including risks, charges, expenses and investment objectives. You should review the prospectus carefully before you invest or send any money. Contact your Financial Professional for a copy of the current prospectus.
Please be advised that this document is not intended as legal or tax advice. Accordingly, any information provided in this document is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. The tax information was written to support the promotion or marketing of the transaction(s) or matter(s) addressed and you should seek advice based on your particular circumstances from an independent tax advisor. Equitable Financial Life Insurance Company, its distributors and their respective representatives do not provide tax, accounting or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state or local tax penalties.
Variable annuities and life insurance are issued by Equitable Financial Life Insurance Company (Equitable Financial) (NY, NY); life insurance is issued outside of New York by Equitable Financial Life Insurance Company of America (Equitable America) (AZ stock company, main administrative office; Jersey City, NY). Co-distributors are Equitable Advisors, LLC, (member FINRA, SIPC) (Equitable Financial Advisors in MI & TN) and Equitable Distributors, LLC. The obligations of Equitable Financial and Equitable America are backed solely by their own claims paying ability.
Equitable is the brand name of the retirement and protection subsidiaries of Equitable Holdings, Inc., including Equitable Financial Life Insurance Company (NY, NY); Equitable Financial Life Insurance Company of America, an AZ stock company with main administrative headquarters in Jersey City, NJ; and Equitable Distributors, LLC. Equitable Advisors is the brand name of Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI & TN).
© 2020 Equitable Holdings, Inc. All rights reserved.
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