Final 2013 11 04 financial bootcamp for women the basics


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Financial Bootcamp for Women - The Basics. A presentation geared to women beginning to take charge of their financial lives. Simple and easy-to-understand tips.

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  • Does not take into account a wide number of factors such as current health, lifestyle, and family history that could increase or decrease life expectancy. Based on the gender and date of birth you entered (your cohort).Mom: 87.6, Mark: 85.7
  • On Dec. 28, 1967, Muriel "Mickie" Siebert became the first woman to own a seat on the New York Stock Exchange -- a full 175 years after the exchange was founded. According to Siebert, her NYSE member badge was the most expensive piece of jewelry she ever bought (at $445,000), and it was also the hardest earned. She had been turned down by nine prospective sponsors before finding the two she needed to endorse her application.As the lone woman among 1,365 men at the exchange, Siebert wasn't universally welcomed. Headlines such as "Skirt Invades Exchange" and "Powder Puff on Wall Street" conveyed a reluctance on "the Street" to accept a sea change that had been making its way through many other professions for years. In fact, when Siebert purchased her seat, she wasn't issued the standard scroll all new members received, and which she was required to display. She didn't receive it until the following year, when the exchange had a new president.
  • Your investment horizon and long-term financial goals: Your money needs to keep working for you far into the future, even if you’re already retired. Do the work now to project your long-term cash flow.Your return requirements: What kind of return do you need from your portfolio? The answer will tell you how conservative or aggressive your investment strategy needs to be.Your risk tolerance: How far are you willing to go to get the return you need? The higher the return you’d like, the more risk you must take.Your constraints: Constraints are nonnegotiable, period. Maybe you won’t consider certain investments for personal or moral reasons, for example. Maybe you won’t even think about dropping a poorly performing stock from your portfolio because you inherited it from your Great-Aunt Jenny.Your tax situation: Tax-free, lower-yielding municipal bonds may be a good choice for you now — however, taxable, and higher-yielding, bonds may serve you better in retirement, if you end up in a lower tax bracket.
  • Final 2013 11 04 financial bootcamp for women the basics

    1. 1. Financial Bootcamp for Women – The Basics By Tina Powell Beacon Wealth Management Monday, November 4, 2013 1
    2. 2. Important Disclosure Everything in this presentation today is intended to be educational in nature, and hopefully will assist you in reaching your financial goals. However, it is all general in nature, and not specific to any of you or your circumstances. Nothing we say here today can replace real investment advice that is rendered after a thorough review of your financial situation. 2
    3. 3. Tonight’s Agenda • A Personal Story – Tina Powell • Women and Money – Research and Insights • Bootcamp Action Plan – Mark Germain, CFP®, MBA, ADPA® • • • • • • Getting Your Financial House In Order Retirement: Start Early Defining Your Investment Strategy Tax Efficiency Estate Planning Basics Frequently Asked Questions • Next steps 3
    4. 4. Personal Story Managing Member/Director of Business Management, Bea con Wealth Management Me and my dad in Houston, Texas - 2003 4
    5. 5. The house does not rest upon the ground, but upon a woman. ~Mexican Proverb Read 5
    6. 6. Health and Life Expectancy • A woman turning age 65 today can expect to live, on average, until age 86. • A man reaching age 65 today can expect to live, on average, until age 84. • About one out of every four 65-year-olds today will live past age 90, and one out of 10 will live past age 95. Source: Social Security Administration 6
    7. 7. Source: Social Security Life Expectancy Calculator 7
    8. 8. Women, Work, and Caregiving • The percentage of family or informal caregivers who are women range from 59% to 75%. • The average caregiver is age 46, female, married and working outside the home earning an annual income of $35,000. • The toll that caregiving takes is not just financial; higher levels of depression, anxiety, and other mental health challenges are common. • Female caregivers may spend as much as 50% more time providing care than male caregivers. • The value of the informal care that women provide ranges from $148 billion to $188 billion annually. Source: Family Caregiver Alliance 8
    9. 9. The Female Caregiver • Significantly less likely to receive a pension and, when they do, the pension is about half as much as those that men receive. • Likely to spend an average of 12 years out of the workforce raising children and caring for an older relative or friend. • Caregivers who return to full-time employment after caregiving are more likely to: • Earn lower wages • Have a “benefit-poor” job • Receive reduced retirement benefits. Source: Family Caregiver Alliance 9
    10. 10. 10
    11. 11. Bootcamp Action Plan Mark Germain, CFP®, MBA, ADPA® – Founder and CEO Norman Sohn, MD, MBA – Managing Director Beacon Wealth Management 11
    12. 12. Your Financial House In Order First Step Formulate plan What you owe Organize financial documents What you own 12
    13. 13. Where Is It? Partial List • • • • • • • • • • • Birth certificate Passport Valid driver’s license Marriage license Divorce decree Prenup agreements Bank accounts Saving accounts Investment accounts Retirement accounts College savings accounts • • • • • • • • • • • Tax returns Wills Trusts Powers of attorney Health care proxy Insurance policies Real estate deeds Credit cards Keys/combinations Online passwords Bills 13
    14. 14. Online Tools to Make It Easy • Free online tool • Aggregates checking, savings, investment accounts • Create personal statements • Analyze spending and create budgets eMoney Advisor • For Beacon clients • Aggregates checking, savings, invest ment accounts plus miles, hotel, etc. • Create personal statements • Analyze spending and create budgets • Online repository to store important info you can access from anywhere 14
    15. 15. Retirement: Start Early • • • • • • Graph Source: The Digerati Life 401k IRA ROTH IRA ROTH 401k Contribution limits RMDs – Required Minimum Distribution 15
    16. 16. Calculating Retirement • • • • • How much do I need for retirement? Do you want to maintain your current lifestyle? Are you married? Different tax and social security benefits Location of residency makes a difference Calculate based on a % of pre-retirement income or desired income • Establish goals and time horizons 1. 2. 3. 4. Increase savings rate Adjust retirement lifestyle Work longer at current job Work part-time during retirement 16
    17. 17. Defining Your Investment Strategy Asset allocation is the practice of dividing resources among different categories such as stocks, bonds, mutual funds, investment partnerships, real estate, cash equivalents and private equity. The theory is that the investor can lessen risk because each asset class has a different correlation to the others; when stocks rise, for example, bonds often fall.  Your investment horizon and long-term financial goals  Your return requirements  Your risk tolerance  Your constraints  Your tax situation Source: 17
    18. 18. Tax Efficiency Sale of stock • Capital Gains Tax • Long-term • Short-term • Dividend Income Tax • Cost-basis • Wash rule • RMDs 18
    19. 19. Estate Planning Basics • Must work with an estate planning attorney • Wills and trusts • All required documents • Important decisions to make • • • • • Beneficiaries and contingent beneficiaries Naming an executor Guardianship of your children Appointing a trustee Passing assets to next generation • While you are alive • Health care proxy • Living will • Power of attorney 19
    20. 20. Frequently Asked Questions • What is the difference between the Dow, S&P 500, and Nasdaq? • Why should I care about how the stock market did today if I don’t own stocks? • Can you explain the role of the Federal Reserve and Janet Yellen? • What is inflation? Is it something I have to worry about? • Do I need insurance and long-term care? • Is social security going to end? • I’m not rich. Do I still need to do a will? • What is considered a good rate of return on my investments? • How good are annuities and reverse mortgages? 20
    21. 21. Next Steps 1. 2. 3. 4. 5. Join our mailing list Participate in the Financial Bootcamp for Women Series Follow us on Beacon Blog, LinkedIn, and Twitter Enjoy a complimentary 1-hour consultation Financial Bootcamp for Women Package - $2,500. • • • • • Scans of your original documents Help you organize your financial information Traditional organizer Set up an online eMoney personal financial profile 2nd opinion of your current investment accounts 21
    22. 22. Contact Twitter Mark Germain, CFP®, MBA, ADPA® YouTube @tinacpowell /tinapowell /tina.s.powell user/shecapital Pinterest SlideShare Google+ Blog tinacpowell inapowell Twitter Tel: (201) 447-9500 E-Mail: Facebook tinacpowell Tina Powell LinkedIn LinkedIn Website Blog YouTube @mark_germain /mark-germain user/beaconwealthnj Tel: (201) 447-9500 E-Mail: Beacon Wealth Management, LLC 505 Main Street, Suite 214, Hackensack, NJ 07601 Tel: (201) 447-9500 22
    23. 23. Thank you! Special thanks to Lois Blumenfeld-Sohn and Norman Sohn, MD, MBA 23