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Women & Investin g Make It Happen! A How-to Workshop on Achieving Your Financial Goals
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Women & InvestingWomen & Investing

Make It Happen!A How-to Workshop on

Quick QuizQuick QuizQuick QuizQuick Quiz

_____% of women end up managing their own _____% of women end up managing their own finances at some point in their livesfinances at some point in their lives

a)a) 10-20%10-20%

b)b) 55-60%55-60%

c)c) 80-90%80-90%

d)d) 95-100%95-100%

c) 80-90%c) 80-90%

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Most stock market investors get wiped out at least Most stock market investors get wiped out at least once in their lifetime.once in their lifetime.

a)a) TrueTrue

b)b) FalseFalse

Quick QuizQuick QuizQuick QuizQuick Quiz

FalseFalse

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If a 45-year old woman plans to retire at age 60, how If a 45-year old woman plans to retire at age 60, how many years can she expect to live in retirement?many years can she expect to live in retirement?

a)a) 10 years10 years

b)b) 12 years12 years

c)c) 19 years19 years

d)d) 21 years21 years

d) 21 yearsd) 21 years

Quick QuizQuick QuizQuick QuizQuick Quiz

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If inflation is 4% per year, how much would a \$50 If inflation is 4% per year, how much would a \$50 restaurant dinner for two cost in 10 years?restaurant dinner for two cost in 10 years?

a)a) \$54\$54

b)b) \$60\$60

c)c) \$74\$74

d)d) \$80\$80

c) \$74c) \$74

Quick QuizQuick QuizQuick QuizQuick Quiz

Over the last 30 years, which of the following Over the last 30 years, which of the following investment classes had the greatest overall investment classes had the greatest overall appreciation?appreciation?

a)a) U.S. corporate bondsU.S. corporate bonds

b)b) U.S. treasury notesU.S. treasury notes

c)c) StocksStocks

d)d) CDsCDsWI0000.307.1005September 30, 2005

c) Stocksc) Stocks

Quick QuizQuick QuizQuick QuizQuick Quiz

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Women & Investing Agenda

Women Today

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Women TodayWomen Today

Women & InvestingSM

Women & InvestingSM

Hold 46% of management and professional jobs

Represent nearly 16% of all corporate officers in the Fortune 500

One in 11 women is an entrepreneur

Nearly half of all privately-held U.S. firms are 50% or more women-owned

Sources of data: Hartford Courant, 3/25/03; 2002 Catalyst Census of Women Corporate Officers and Top Earners in the Fortune 500; Center for Women’s Business Research, 2004.

Women Today

Moving Up in the Workplace

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Comprise 1.3 million of the top wealth-holders, with a combined net worth of almost \$1.8 trillion

43% of those with \$500,000+ in financial assets are women

Control almost 60% of wealth in the U.S. Are the primary purchasing decision-makers in 80% of

nation’s householdsBuy nearly half of all new cars20% of first-time homebuyers are single women

Comprise 1.3 million of the top wealth-holders, with a combined net worth of almost \$1.8 trillion

43% of those with \$500,000+ in financial assets are women

Control almost 60% of wealth in the U.S. Are the primary purchasing decision-makers in 80% of

nation’s householdsBuy nearly half of all new cars20% of first-time homebuyers are single women

Sources of data: Business and Professional Women/USA, Women’s Philanthropy Institute, 2002; Merrill Lynch World Wealth Report, 2002; National Foundation of Women Business Owners; OppenheimerFunds Inc.; The Trendsight Group; CNW Research, as cited on www.womanmotorist.com; National Association of Realtors, as cited on Business Women’s Network, www.bwni.com.

Women Today

More Economic Clout

44% consider themselves very or somewhat knowledgeable

55% have a “save for tomorrow” attitude

64% say that the more money they have, the better they feel about themselves

73% feel more knowledgeable because they are working with a financial advisor

44% consider themselves very or somewhat knowledgeable

55% have a “save for tomorrow” attitude

64% say that the more money they have, the better they feel about themselves

73% feel more knowledgeable because they are working with a financial advisor

Source of data: Women & InvestingSM Study 2005, OppenheimerFunds.

Women TodayMore Knowledgeable Investors

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63% do not understand how a mutual fund works

Only 52% have invested for retirement

Source of data: Women & InvestingSM Study 2005, OppenheimerFunds.

Women Today

But, Still Progress to be Made

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67% responsible for balancing the checkbook

65% responsible for paying bills

54% responsible for developing or maintaining a budget

67% responsible for balancing the checkbook

65% responsible for paying bills

54% responsible for developing or maintaining a budget

Women Today

Responsible for “Chores”

WI0000.307.1005September 30, 2005 Source of data: Women & InvestingSM Study 2005, OppenheimerFunds.Source of data: Women & InvestingSM Study 2005, OppenheimerFunds.

Sacrifice career and earnings to meet family needs

Continue to earn less than men

Longer life expectancies

Sacrifice career and earnings to meet family needs

Continue to earn less than men

Longer life expectancies

Sources of data: Women’s Institute for a Secure Retirement and National Center for Women’s Retirement Research; Stephen J. Rose and Heidi I. Hartman, Institute for Women’s Policy Research Report, “Still a Man’s Labor Market: The Long-Term Earnings Gap,” 2004; United States Department of Health and Human Services, 2003; National Center for Women and Retirement Research, 1996.

Sources of data: Women’s Institute for a Secure Retirement and National Center for Women’s Retirement Research; Stephen J. Rose and Heidi I. Hartman, Institute for Women’s Policy Research Report, “Still a Man’s Labor Market: The Long-Term Earnings Gap,” 2004; United States Department of Health and Human Services, 2003; National Center for Women and Retirement Research, 1996.

Women TodaySome Things Haven’t Changed

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WI0000.307.1005September 30, 2005

Women & InvestingSM

Women & InvestingSM

RET

URN

RISK

Goals

Travel Family College Later Years Where to Live Elderly Parents

List exact financial goals in workbook:

Personal

Career

Loved ones

List exact financial goals in workbook:

Personal

Career

Loved ones

Where You’re Going

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Rate in order of priority: A = MUST ACHIEVE

B = LIKE TO ACHIEVE

C = CAN LIVE WITHOUT

Rate in order of priority: A = MUST ACHIEVE

B = LIKE TO ACHIEVE

C = CAN LIVE WITHOUT

Which Goals Matter the Most?

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WI0000.307.1005September 30, 2005

Establish a Target Goal

Select one “A” goal to be your target for workshop

Visualize your goal Write down specifics – time frame,

estimated cost, etc. Share

List barriers or “bumps in the road”: Situations

Events

Attitudes

Habits

Relationships

List barriers or “bumps in the road”: Situations

Events

Attitudes

Habits

Relationships

Identify Potential Challenges

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WI0000.307.1005September 30, 2005

Women & InvestingWomen & Investing

Where are you now?• Pull your financial paperwork together

• Take stock and determine net worth

• Track your money and monitor cash flow

Where are you now?• Pull your financial paperwork together

• Take stock and determine net worth

• Track your money and monitor cash flow

Get Organized

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Open an automatic savings plan1

First build an emergency fund Then save for your goals

Open an automatic savings plan1

First build an emergency fund Then save for your goals

Pay Yourself First

1. Systematic investing does not assure a profit and does not protect against loss in declining markets.1. Systematic investing does not assure a profit and does not protect against loss in declining markets.

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Emergency Reserves

Deal with Debt

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Owe Less, Save More

To pay off \$2,000 at 18%:To pay off \$2,000 at 18%:

Monthly Monthly Time Time TotalTotal Payment Payment Required Required InterestInterest

\$ 50 (minimum)\$ 50 (minimum) 5 Years5 Years \$1,003 \$1,003

\$ 100\$ 100 2 Years2 Years \$353\$353

Difference:Difference: 3 Years3 Years \$650 \$650 in Interestin Interest

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Foundation Savings

Monies You “Loan”

• CDs

• Annuities

• US Savings Bonds

Plan a Secure Future

Save through a tax-advantaged plan: Tax-deferred investment growth If employer plan, potential for pretax

contributions, possible company match If Traditional IRA, contributions might be tax

deductible If Roth IRA, tax-free withdrawals

at retirement

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1st Year1st Year 25th Year25th YearAnnual Contribution RateAnnual Contribution Rate0

100,000

200,000

300,000

400,000

\$500,000Annual Contributions:Annual Contributions: Balance in 25 Years:Balance in 25 Years:

\$5,000\$5,000 \$255,567\$255,567

\$7,500\$7,500 \$383,351\$383,351

\$7,500 + \$1,250 match\$7,500 + \$1,250 match \$447,242\$447,242

WI0000.307.1005September 30, 2005 Assuming an annual growth rate of 5% per year.Assuming an annual growth rate of 5% per year.

Certificates of Deposit

For large amounts of money, the most effective way to utilize CDs is to ladder them.

1 year, 2 year, 3 year, 4 year, 5 year This effectively allows you to either hold on

sliding interest rates or capitalize on increasing interest rates.

Guaranteed Annuities

Safety of Principle – Tax Deferred GrowthFixed Bonus Indexed

Floor Interest Sliding or Fixed

Interest Penalties at the

back end

Floor InterestBonus Upon

DepositSliding or Fixed

InterestPenalties at the

back end

Floor Interest Interest Indexed

to Market Returns

Penalties at the back end

Guaranteed Annuities

Generally the higher the rate of return, the longer and the steeper the penalty.

The pie is the same size, if you are getting a benefit somewhere (ie. interest rate), they are taking it away in another area (ie. higher penalty)

Guaranteed Annuities

Annuitizing Period Certain

Risk Management

Investments That You “Own”

Inflation Hedge

Invest Wisely

Determine an asset allocation based on: Financial objectives Investment time horizon Tolerance for risk

Determine an asset allocation based on: Financial objectives Investment time horizon Tolerance for risk

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Plan a Secure Future

Save through a tax-advantaged plan: Tax-deferred investment growth If employer plan, potential for pretax

contributions, possible company match If Traditional IRA, contributions might be tax

deductible If Roth IRA, tax-free withdrawals

at retirement

WI0000.307.1005September 30, 2005

1st Year1st Year 25th Year25th YearAnnual Contribution RateAnnual Contribution Rate0

100,000

200,000

300,000

400,000

\$500,000Annual Contributions:Annual Contributions: Balance in 25 Years:Balance in 25 Years:

\$5,000\$5,000 \$255,567\$255,567

\$7,500\$7,500 \$383,351\$383,351

\$7,500 + \$1,250 match\$7,500 + \$1,250 match \$447,242\$447,242

WI0000.307.1005September 30, 2005 Assuming an annual growth rate of 5% per year.

Investments That You “Own”

Stocks Bonds Mutual Funds Variable Annuities

Inflation Hedges

Bonds Stocks\$10,000 - \$20,000 - \$30,000

Set Dividends

Fluctuating Value

Callable

Rating (AAA to B)

Common / Preferred

Price per Share Fluctuates

Fluctuating Dividends

Money that You “Loan” Investments That You “Own”

Mutual Funds

A company that invests in various stocks/bonds

Price per share fluctuates Front/back end load (A, B, C-shares) Management Fees 12b1 Fees

Mutual Fund Styles

Value Blend GrowthLarge

Medium

Sm

all

Mutual Fund Sectors

Mutual Fund Fees

Front end load (A & C shares) Deferred Load (B & C shares) Management Fees 12b1 Fees

Variable Annuities

Tax Deferred Growth Backend Fees Annual Administration Fee Mortality and Expense Fees Internal Administration Fees Rider Fees Sub-Account Fees

Variable Annuities

Options*: Guaranteed 5-6% Return Guaranteed 6-7% Income

* All options have additional basis point fees and these are not available on all * All options have additional basis point fees and these are not available on all variable annuities.variable annuities.

What You See…

May Not Be What You Get

S&P 500Index

Average Mutual Fund Investor

2.57%

12.22%

Average Annual total Returns 1984-2002

Source: Dalbar, Inc.

Modern Portfolio Theory (MPT)

The 1952 publication "The Modern Portfolio Theory" by Harry M. Markowitz revolutionized portfolio development.

An approach to choosing investments allowing investors to quantify and control the amount of risk they accept and amount of return they achieve in their portfolios. It shifts the emphasis away from analyzing the specific security in the portfolio and towards determining the relationship between risk and reward in the total portfolio.

Save for College

529 Savings Plans: Qualified withdrawals free of federal

income tax No income limitations High contribution ceiling Parents maintain control

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The Federal law exempting earnings on qualified withdrawals from federal income taxes expires on December 31, 2010, unless extended by Congress. State tax treatment varies and investors should investigate whether their state offers a 529 plan.

The Federal law exempting earnings on qualified withdrawals from federal income taxes expires on December 31, 2010, unless extended by Congress. State tax treatment varies and investors should investigate whether their state offers a 529 plan.

Aggressive Inflation Hedge

High Risk

More Confident About Having More Confident About Having Money for the FutureMoney for the FutureMore Confident About Having More Confident About Having Money for the FutureMoney for the Future66%66%66%66%

Source of data: Women & InvestingSM Study 2005, OppenheimerFunds.Source of data: Women & InvestingSM Study 2005, OppenheimerFunds.WI0000.307.1005September 30, 2005

What you need to know: Family cash flow Net worth Investments Insurance Employment benefits Will Where everything is

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Optimize your financial position: Review finances Agree on a budget Discuss and plan for long-term goals Split financial tasks Don’t lose sight of big picture

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What Have We Learned?

Women Today Women today are more successful than ever, but

still face financial challenges

Setting Your Goals Prioritize and plan for goals

Achieving Your Goals Don’t lose sight of big picture – there are a lot of

solutions to overcome challenges

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Next Steps

1. Work with an expert

2. Implement specific solutions

Don’t Forget…

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Finally…

help Stick with it

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Women & InvestingWomen & Investing

Questions?

This presentation has been filed as a complete presentation, is not meant to be used as individual slides and every slide must be shown during a seminar. These views represent the opinions of OppenheimerFunds as of 9/30/05, are subject to change based on market conditions and are not intended as investment advice—consult your financial advisor. Past performance does not guarantee future results. Due to ongoing market volatility, current performance may be more or less than the results shown in this presentation. The performance information does not show the effects of income taxes on an individual’s investment. Taxes may reduce your actual investment returns or any gains you may realize if you sell your investment. An investor’s shares, when redeemed, may be worth more or less then the original cost. Investors should be aware that there are risks inherent in investing in securities.

Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, calling us at 1.800.525.7048 or visiting our website at www.oppenheimerfunds.com. Read prospectuses carefully before investing.

Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.Two World Financial Center, 225 Liberty Street, New York, NY 10281-1008©Copyright 2005 OppenheimerFunds Distributor, Inc. All rights reserved.WI0000.307.1005 September 30, 2005