Choose Your Destination

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Choose Your Destination: A Financial Wellness Seminar for Women

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Important Notes

Please be advised that this presentation is for educational purposes only. It is not intended as legal or tax advice. Accordingly, any tax information provided in this presentation 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.

Securities offered through AXA Advisors, LLC (NY,NY 212-314-4600), member FINRA, SIPC. Annuity and insurance products offered through AXA Network, LLC and its subsidiaries. AXA Advisors and AXA Network do not provide tax or legal advice. You should consult with your attorney and/or tax advisor before making final investment or planning decisions.

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Today’s Discussion

Issues Impacting WomenIssues Impacting Women

The Map to Your Destination

Strategies for Each Stage of Life

Financial Strategies in Everyday Life

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Working Women

In the United States:

Women own 28% of all non-farm businesses and employ 7.1 million people1a

38% of females 16 years or older work in management, professional and related occupations, compared with 32% of males1b

Women held 13.5% of Executive Officer positions and 15.2% of the board seats in the Fortune 500 companies in 20092

There were 94,000 female police officers across the country, 14,000 women firefighters, 330,000 lawyers, 266,000 physicians and surgeons, and 36,000 pilots3

Sources:

1) U.S. Department of Commerce, “U.S. Census Bureau News Facts for Features: Women’s History Month: March 2009,” Jan 5, 2009. Data pertains to a) 2002 and b) 2007.

2) Catalyst, “2009 Catalyst Census: Fortune 500 Women Executive Officers and Top Earners”.

3) U.S. Census Bureau, “Statistical Abstract of the United States: 2009”. Note that number of pilots pertains to 2006.

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Issues Impacting Women’s Finances

During the Working Years

Of the estimated 65.7 million Americans who are informal caregivers, 66% are women – and many of them are simultaneously caring for an older relative and raising children or grandchildren

To accommodate caregiving, more than half of employed caregivers have made changes at work, such as going in late or leaving early, or working fewer hours

20% of all caregivers ever employed while involved in caregiving gave up work either temporarily or permanently, or took a leave of absence

Source: Caregiving in the U.S., Executive Summary Nov.2009

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Issues Impacting Women’s Finances

After the Working Years

Worldwide, women have longer life expectancies than men in nearly every society today1

67% of Americans age 85 or older are women2

Women make up 71% of the nursing-home population3

Women are more likely than men to be single, widowed, or divorced in retirement4

Sources: 1) National Vital Statistics Report, vol57 num14, April 17, 2009.2) Population Division, U.S. Census Bureau, May 2009.

3) The National Nursing Home Survey, US. Dept. of Human Services, June 2009. 4) US. Census Bureau Current Population Survey, 2009.

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Issues Impacting Women

The Map to Your DestinationThe Map to Your Destination



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Choosing Your Destination

Shaping your financial wellbeing means more than choosing financial products - it’s about choosing where you want to be tomorrow.

Choosing Your Destination - Four Steps1. Set your goals2. Examine where you are vs. where you want to be

3. Develop a plan to meet your goals4. Activate your plan and stick to it

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Goal Setting

What Are Your Financial Goals?

Short-, Medium- and Long-Term Objectives

For Example:

Short - Out of debt in 3 yrs

Medium - Child starting college in 10 yrs

Long - Retirement nest egg

Of Note:Women who usually work full time have median earnings of $638 per week, or 79.9% of the $798 median for men.

(Source: US Department of Labor Bureau of Statistics, “Highlights of Women’s Earnings in 2008, July 2009)

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Goal Setting

What Are Your Lifestyle Goals?

Examples:

Free Time

Financial Independence

Helping Others

Consider Lifestyle Goals for Today and Tomorrow

Connect Financial and Lifestyle Together

A Tip for Smart PlanningPrepare for both the best- and worst-case scenarios

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Financial Review

Things to Consider

Do you have a written plan?

What is your risk tolerance?

What are the tax implications?

Do the products you own match your goals?

Are your investments coordinated?

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Risk/Reward Pyramid

Investments are subject to market risk, will fluctuate and may lose value. 1) Risk may vary dependent upon the type of option strategies. 2) Risk may vary dependent upon the type of underlying investments. 3) Risk may vary dependent upon the type of underlying investment options. 4) Risk may vary dependent upon the type of underlying funds, generally chosen based on the age of the child. Balanced Variable Variable Life

Funds Annuities* Insurance* 529 Plans**

Fixed Annuities Traditional Life Insurance

INCREASING RISKIncreasing Potential Return

Options1

CommoditiesPenny Stocks

Alternative Investments2

Derivatives

Individual Stocks

Small-Cap Funds

High-Yield Bonds

Collectibles

Large-Cap Funds

High-Quality Municipal & Corporate Bonds & Funds

Certificates Money Market Treasuries:

of Deposit Funds Bills, Notes, Bonds

Fixed Annuities Traditional Life Insurance

Savings: Home Equity: Insurance: Retirement Funding:

6-8 Months Mortgage Life, Disability Income, Qualified Plans,

Net Salary Insurance Health, Long-Term Care Pensions, IRAs

Incr

easi

ng

Ris

k

Moderate Risk

Speculative

Balanced Variable Variable Life 529

Funds Annuities3 Insurance3 Plans4

High Risk

Low Risk

Foundation

STABILITY OF PRINCIPALReduced Potential for Return

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Strategies for Each Stage of LifeStrategies for Each Stage of Life


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Taking Care of Yourself

Retirement

Savings & Investments

Annuities

Qualified Plans

Retirement Accounts

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Taking Care of Yourself

It’s never too earlyLet’s take a look at two hypothetical women who each invest $3,000 per year into a retirement account with 6% annual compound interest:

The one who starts at age 23 can have $559,523 by age 65

The one who starts at age 30 can have $354,363 by age 65

It’s never too lateA woman who starts at age 50 and invests $10,000 per year at the same hypothetical 6% annual compound interest can have $178,821 by age 65

If she invests $15,000 each year instead, she can have $268,232 by age 65

Hypothetical example for illustrative purposes only. Not indicative of any specific investment. Does not take into account the impact of fees, inflation or taxes.

$3,000

Ret

irem

ent S

avin

gs

23 30 65Age

$354,363

$559,523

$15,000

Ret

irem

ent S

avin

gs

50 65Age

$10,000

$178,821$268,232

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Taking Care of Others

Children – College Planning

529 Plans

UGMAs

Coverdell Education Savings Accounts (formerly called Education IRAs)

Of Note:Total four-year private-college costs for a freshman beginning college in 2010 is $100,572*.

*Tuition and fees only. Excludes other college costs such as room and board, books, etc.

(Source: The College Board – “Trends in College Pricing 2009” )

Academic Year

Private Four-Year

Public Four-Year

1978–79 $9,903 $2,303

1988–89 $14,857 $2,929

1998–99 $19,825 $4,376

2009–10 $26,273 $7,020

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Teaching children about finances can begin as soon as children enter school.

Of Note:Currently, most teens say they learn about money from their parents. An encouraging two-thirds say one way they learned about finances was school lessons. But disturbingly, 51% say they've acquired their financial skills through trial and error.

(Source: consumeraffairs.com/news04/2009/03/teens money.html)

Save Spend Give


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Seniors

Long-Term Care

Estate Planning

Of Note:In 2009,41.2 million people aged 18 or older had some type of activity limitation.1

11 million needed assistance from others to perform everyday activities.1

By 2020, 12 million people will need long term care.2

Sources: 1. www.census.gov/press release, Facts for Features May 2009 2. www.longtermcare.gov/LTC, National Clearinghouse for LTC Info Oct. 2008

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Leaving a Legacy

Life Insurance

Estate Planning

Gifting Strategies

A Tip for Smart Planning:Leaving everything to your spouse could cost your heirs large amounts in estate taxes.

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Business Planning

Future Business Owners

Number of women-owned firms rapidly increasing

Answer to the work/life question

Semi-retirement

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Business Planning

Current Business Owners

Balancing personal and business finances

Business protection

Employee needs

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Financial Strategies in Everyday LifeFinancial Strategies in Everyday Life

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What’s Standing in the Way

Common Roadblocks

Busy Lifestyle

Preconceived notions

Attitudes about money

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What’s Standing in the Way

What You Can Do

Examine what might be keeping you from your goals

Work with a financial professional

Stay focused on the big picture

Reward yourself

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Choosing A Financial Professional

Possible Questions to Ask:

What type of clients do you usually work with?

What is your area of specialty?

What licenses and degrees do you hold?

How do you communicate with clients? How often?

Do you offer annual reviews?

How are you compensated?

How long have you been in the business?

What do you think is the most important part of a financial strategy and/or investing?

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Q & A

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Thank You

Choose Your Destination

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