“ I can’t wait. In ten years I’ll be retired. Doing what I always wanted to do − teaching kids how to explore the ocean. I’m online everyday watching my savings grow and counting the days until I retire…” “ I may never be able to retire. The market almost completely ate up my savings. Now the best I can hope for is to teach my grandkids how to dive, and maybe volunteer at the community center on weekends. I’m disappointed.”
Today’s Realities Tomorrow’s Goals HOW ARE YOU FEELING?
<ul><li>Ameriprise Financial: A history of helping </li></ul><ul><li>our clients through challenging times </li></ul><ul><li>Strong and stable </li></ul><ul><li>Focus on our clients’ goals and dreams </li></ul><ul><li>114 year history of helping clients through all types of economic change </li></ul>
THIS IS A HIDDEN SLIDE <ul><li>It contains scripting for AASI advisor use only. </li></ul>
Ameriprise Financial and its representatives or affiliates do not provide tax or legal advice. Consult with your tax advisor or attorney regarding specific tax/legal issues.
UNDERSTANDING YOUR PERSONAL GOALS Cash to cover unexpected events. Minimize my taxes. Retire with financial security. Buy a new home. Ensure my family is taken care of if I am injured or worse. More control Less control Less expense More expense Goals
A NEW PERSPECTIVE ON YOUR FINANCES Cash to cover unexpected events. Minimize my taxes. Retire with financial security. Ensure my family is taken care of if I am injured or worse.
LIQUIDITY, HAVING WHAT YOU NEED WHEN YOU NEED IT Cash <ul><li>Expenses </li></ul><ul><li>Debt </li></ul><ul><li>Long-term (mortgages) </li></ul><ul><li>Short-term (home equity) </li></ul><ul><li>Revolving (credit card or balance transfer) </li></ul>Liabilities Every day cash Short-term emergency Reserve
MANAGING LIQUIDITY MORE EFFICIENTLY Create a budget surplus: Shift the focus from your immediate needs and fund your emergency reserves and saving and investment bucket by automatically “paying yourself first”. Use lower interest options to pay down your most expensive debt. Investment decisions should be made based on your investment objectives, risk tolerance and financial position, and not on the basis of this presentation. Consult an investment professional to discuss which options might be suitable for your situation. Ameriprise Financial cannot guarantee future financial results. Home equity loans and lines of credit are not available in Texas.
A NEW PERSPECTIVE ON LIQUIDITY <ul><li>What steps have you taken to build your emergency fund? </li></ul><ul><li>How is your spending plan helping you to reduce debt? </li></ul><ul><li>What ideas do you have for improving your cash management? </li></ul><ul><li>What help could you use? </li></ul>
A DISCIPLINED INVESTMENT APPROACH HAS NEVER BEEN MORE CRITICAL <ul><li>Understanding emotional investing </li></ul>Optimism Relief Hope “ Things may be turning around.” Excitement Thrill Optimism “ Wow, I am making money. I feel good about this investment.” Euphoria Point of maximum financial risk Fear Denial “ This is just a temporary setback.” Desperation Anxiety Panic Capitulation Despondency “ I think I need to sell.” Depression Point of maximum financial opportunity Source: Radarwire.com. A product of Simon Economic Systems, Ltd.
TAKE ACTION: SAVING MORE Dollar-cost averaging does not guarantee a profit or protect against losses in a declining market. Investors should consider their ability to continue investing during periods of low markets. This type of plan involves continuous investment in securities, regardless of fluctuating price levels. This illustration is hypothetical and is not a forecast or guarantee of specific investment results. Average price per share: (10 + 8 + 5 + 7 + 9 + 10) / 6 = $8.17 Average cost per share: (600 / 77.9) = $7.70 Month You invest Share price Shares purchased January $100 ÷ $10 = 10 February $100 ÷ $8 = 12.5 March $100 ÷ $5 = 20 April $100 ÷ $7 = 14.3 May $100 ÷ $9 = 11.1 June $100 ÷ $10 = 10 Total $600 = 77.9
INT’L STOCKS MSCI EAFE Index DIVERSIFIED PORTFOLIO Hypothetical portfolio with quarterly rebalancing and an equal weighting in each of the indices listed against loss. TEMPERING THE MARKET THROUGH DIVERSIFICATION *Data as of 12/31/08. Source: Morningstar Direct. Past performance does not guarantee future results. Diversification and asset allocation do not guarantee overall portfolio profit and do not protect against loss. It is not possible to invest directly in any of the unmanaged indices shown. There is no assurance that a secondary market will be available for real estate invest trust, which may hinder attempts to sell the investment. Diversification helps you spread risk throughout your portfolio, so that investments that do poorly may be balanced by others that do relatively better. Diversification is not a guarantee of overall portfolio profit of protection against loss. SMALL CAP VALUE 14.02% REAL ESTATE 12.35% BONDS 8.44% HIGH YIELD BONDS 5.28% DIVERSIFIED PORTFOLIO -1.87% LARGE CAP VALUE -5.59% MID CAP STOCKS -5.62% LARGE CAP GROWTH –20.42% INT’L STOCKS -21.21% BONDS 10.25% REAL ESTATE 3.58% HIGH YIELD BONDS -1.41% SMALL CAP VALUE -11.43% DIVERSIFIED PORTFOLIO -11.74% LARGE CAP VALUE -15.52% INT’L STOCKS -15.66% MID CAP STOCKS -16.19% LARGE CAP GROWTH -27.88% SMALL CAP GROWTH 48.54% SMALL CAP VALUE 46.03% MID CAP STOCKS 40.06% INT’L STOCKS 39.17% REAL ESTATE 36.18% DIVERSIFIED PORTFOLIO 33.58% LARGE CAP VALUE 30.03% LARGE CAP GROWTH 29.75% HIGH YIELD BONDS 28.97% BONDS 4.10% REAL ESTATE 33.16% SMALL CAP VALUE 22.25% INT’L STOCKS 20.70% MID CAP STOCKS 20.22% DIVERSIFIED PORTFOLIO 16.63% LARGE CAP VALUE 16.49% HIGH YIELD BONDS 11.13% LARGE CAP GROWTH 6.30% BONDS 4.34% INT’L STOCKS 14.02% REAL ESTATE 13.82% MID CAP STOCKS 12.65% DIVERSIFIED PORTFOLIO 7.46% LARGE CAP VALUE 7.05% LARGE CAP GROWTH 5.26% SMALL CAP VALUE 4.71% HIGH YIELD BONDS 2.74% BONDS 2.43% REAL ESTATE 35.97% INT’L STOCKS 26.86% SMALL CAP VALUE 23.48% LARGE CAP VALUE 22.25% DIVERSIFIED PORTFOLIO 17.97% MID CAP STOCKS 15.26% HIGH YIELD BONDS 11.85% LARGE CAP GROWTH 9.07% BONDS 4.33% LARGE CAP GROWTH 11.81% INT’L STOCKS 11.63% BONDS 6.97% MID CAP STOCKS 5.60% DIVERSIFIED PORTFOLIO 2.19% HIGH YIELD BONDS 1.87% LARGE CAP VALUE -0.17% SMALL CAP VALUE -9.78% REAL ESTATE -17.55% SMALL CAP GROWTH -9.23% SMALL CAP GROWTH -30.26% SMALL CAP GROWTH 14.31% SMALL CAP GROWTH 4.15% SMALL CAP GROWTH 13.35% SMALL CAP GROWTH 7.05% 2001 2002 2003 2004 2005 2006 2007 BONDS 5.24% HIGH YIELD BONDS -26.16% SMALL CAP VALUE -28.92% LARGE CAP GROWTH -38.44% SMALL CAP GROWTH -38.54% LARGE CAP VALUE -36.85% REAL ESTATE -39.20% MID CAP STOCKS -41.46% INT’L STOCKS -43.06% 2008* DIVERSIFIED PORTFOLIO -28.58%
A NEW PERSPECTIVE ON INVESTING <ul><li>What proactive steps have you taken to adjust your investing strategies based on changes in the economy? </li></ul><ul><li>What kind of help could you use to get back on track toward reaching your longer-term financial goals? </li></ul>Investment decisions should be made based on your investment objectives, risk tolerance and financial position, and not on the basis of this presentation. Ameriprise Financial cannot guarantee future financial results.
YOU CAN’T ELIMINATE RISKS, BUT YOU CAN PREPARE FOR THEM Worries What if I get injured and can’t work anymore? What if I get hurt or a family member gets sick? What if I get into a car accident or my home is damaged? What if I pass away? Who will take care of my children? What if a loved one has to go into a nursing home? Solution Disability income Health care coverage Auto and Home Insurance Life Insurance Long-term care
COMPREHENSIVE PROTECTION REVIEW <ul><li>One comprehensive protection tool set </li></ul><ul><li>Legacy & Survivor Protection </li></ul><ul><li>Disability </li></ul><ul><li>Long Term Care </li></ul><ul><li>Retirement Income </li></ul><ul><li>Healthcare </li></ul>
A NEW PERSPECTIVE ON PROTECTION <ul><li>Consider the protection strategies you already have in place: what seems to be working for you? </li></ul><ul><li>Do you have gaps in your protection strategy? </li></ul>
TAX-DIVERSIFY YOUR PORTFOLIO Neither Ameriprise Financial nor any of its representatives or agents provides tax advice. Taxable Tax-free Tax-deferred
THIS IS A HIDDEN SLIDE <ul><li>It contains scripting for presenter use only. </li></ul>
ONE TIME OPPORTUNITY: ROTH IRA CONVERSION IN 2010 15% 25% 35%
A NEW PERSPECTIVE ON TAX PLANNING <ul><li>What tax-advantaged investments have you already included in your financial plan? </li></ul><ul><li>What types of tax-advantaged investments would you be interested in adding to your portfolio? </li></ul>
WHERE CAN YOU GO FROM HERE? Your meeting with an Ameriprise financial advisor will include a review of your existing financial situation and potential opportunities, gaps, or general strategies. You will not receive an extensive review or financial advisory services for which fees are charged. Attend another workshop: Learn more about the individual cornerstones. Meet with a financial advisor for your own personal New Perspective review.