This document provides information on challenges women face in retirement planning. It notes that women make up nearly half the U.S. workforce and over half of management and professional jobs. However, women still tend to earn lower pay overall and live longer than men. Women also often take on caregiver roles. The document discusses strategies for women to save more for retirement, such as maximizing contributions to employer retirement plans and IRAs. It emphasizes the importance of diversifying investments, rebalancing portfolios regularly, and working with a financial advisor to develop an effective long-term retirement savings plan.
Entergy Corporation's 2007 annual report summarizes the company's financial results and strategic initiatives for the year. The report discusses Entergy's plans to spin off its non-utility nuclear business and form a nuclear services joint venture. This transaction is aimed at unlocking the full value of the non-utility nuclear assets for shareholders. The report also highlights Entergy's focus on operational excellence, portfolio transformation strategies in its utility business, and regulatory recovery from hurricanes Katrina and Rita.
Private Debt, Public Virtues: On the relationship between welfare and househo...Martino Comelli
The quality of welfare spending, not just the quantity, influences household debt levels between countries. Welfare systems that focus spending on the elderly (high elderly-biased social spending index/EBiSS) correspond to lower borrowing among young people. Younger individuals in countries with more balanced welfare spending have more stable financial expectations, making them less risk-averse and more willing to take on long-term debt like mortgages. The author proposes studying the relationship between different types of welfare regimes and levels of household debt, including consumer credit.
Fifth Third Bancorp reported first quarter 2008 earnings of $292 million, or $0.55 per diluted share, compared to $16 million in the previous quarter and $359 million in the first quarter of 2007. Net interest income increased 11% year-over-year to $826 million due to loan and deposit growth as well as lower funding costs, while the net interest margin declined slightly. Loan balances grew 9% year-over-year led by increases in commercial and residential mortgage loans. Credit costs increased substantially due to deterioration in residential real estate, homebuilder, and development loans.
This document summarizes a study that examines the welfare effects of increasing the retirement age under different pension schemes (defined benefit, notional defined contribution, and funded defined contribution) using overlapping generations models. It finds that increasing the retirement age leads to overall welfare gains in all schemes. The mechanisms through which welfare increases differ across schemes, with labor supply, pensions, taxes, and other macroeconomic variables changing to different degrees depending on the pension design. The study aims to better understand how macroeconomic effects and welfare impacts may vary when the retirement age is increased under different existing pension-benefit linkages.
In 3 sentences:
The document discusses evidence on whether government support crowds out or crowds in private charitable donations. It summarizes several studies that have examined this question at macro, meso, and micro levels. Experimental evidence shows that providing information about an actual funding cut to a charity increased the percentage of people who believed subsidies decreased and the number who donated their rewards, suggesting information can influence giving. However, most people did not change their donation decisions in response to different hypothetical funding scenarios.
Does microfinance reduce rural poverty? Evidence based on long term household...guest9970726
1) The study evaluates the long-term impact of microfinance loans on rural poverty in Ethiopia using a panel dataset over 1997-2006.
2) Results show microfinance loans modestly increased annual household consumption by $23-48 and likelihood of housing improvements by 0.27, but impact is smaller when controlling for time-varying factors.
3) Higher frequency and longer duration of borrowing is associated with larger impacts on consumption and improvements become significant only after several years of borrowing.
How long will Baby Boomers and Gen Xers need to work for a 50, 70, and 80 per...vanderhei
1) The document analyzes how long Baby Boomers and Gen Xers need to work to have a 50%, 70%, and 80% probability of adequate retirement income according to simulations run using the EBRI/ERF Retirement Security Projection Model.
2) The simulations show that deferring retirement increases the probability of having adequate retirement income, with higher probabilities associated with later retirement ages.
3) Continuing to participate in defined contribution plans like 401(k)s after age 64 also increases the probability of having adequate retirement income.
Entergy Corporation's 2007 annual report summarizes the company's financial results and strategic initiatives for the year. The report discusses Entergy's plans to spin off its non-utility nuclear business and form a nuclear services joint venture. This transaction is aimed at unlocking the full value of the non-utility nuclear assets for shareholders. The report also highlights Entergy's focus on operational excellence, portfolio transformation strategies in its utility business, and regulatory recovery from hurricanes Katrina and Rita.
Private Debt, Public Virtues: On the relationship between welfare and househo...Martino Comelli
The quality of welfare spending, not just the quantity, influences household debt levels between countries. Welfare systems that focus spending on the elderly (high elderly-biased social spending index/EBiSS) correspond to lower borrowing among young people. Younger individuals in countries with more balanced welfare spending have more stable financial expectations, making them less risk-averse and more willing to take on long-term debt like mortgages. The author proposes studying the relationship between different types of welfare regimes and levels of household debt, including consumer credit.
Fifth Third Bancorp reported first quarter 2008 earnings of $292 million, or $0.55 per diluted share, compared to $16 million in the previous quarter and $359 million in the first quarter of 2007. Net interest income increased 11% year-over-year to $826 million due to loan and deposit growth as well as lower funding costs, while the net interest margin declined slightly. Loan balances grew 9% year-over-year led by increases in commercial and residential mortgage loans. Credit costs increased substantially due to deterioration in residential real estate, homebuilder, and development loans.
This document summarizes a study that examines the welfare effects of increasing the retirement age under different pension schemes (defined benefit, notional defined contribution, and funded defined contribution) using overlapping generations models. It finds that increasing the retirement age leads to overall welfare gains in all schemes. The mechanisms through which welfare increases differ across schemes, with labor supply, pensions, taxes, and other macroeconomic variables changing to different degrees depending on the pension design. The study aims to better understand how macroeconomic effects and welfare impacts may vary when the retirement age is increased under different existing pension-benefit linkages.
In 3 sentences:
The document discusses evidence on whether government support crowds out or crowds in private charitable donations. It summarizes several studies that have examined this question at macro, meso, and micro levels. Experimental evidence shows that providing information about an actual funding cut to a charity increased the percentage of people who believed subsidies decreased and the number who donated their rewards, suggesting information can influence giving. However, most people did not change their donation decisions in response to different hypothetical funding scenarios.
Does microfinance reduce rural poverty? Evidence based on long term household...guest9970726
1) The study evaluates the long-term impact of microfinance loans on rural poverty in Ethiopia using a panel dataset over 1997-2006.
2) Results show microfinance loans modestly increased annual household consumption by $23-48 and likelihood of housing improvements by 0.27, but impact is smaller when controlling for time-varying factors.
3) Higher frequency and longer duration of borrowing is associated with larger impacts on consumption and improvements become significant only after several years of borrowing.
How long will Baby Boomers and Gen Xers need to work for a 50, 70, and 80 per...vanderhei
1) The document analyzes how long Baby Boomers and Gen Xers need to work to have a 50%, 70%, and 80% probability of adequate retirement income according to simulations run using the EBRI/ERF Retirement Security Projection Model.
2) The simulations show that deferring retirement increases the probability of having adequate retirement income, with higher probabilities associated with later retirement ages.
3) Continuing to participate in defined contribution plans like 401(k)s after age 64 also increases the probability of having adequate retirement income.
This document provides information and advice about boosting retirement savings through various tax-effective strategies. It discusses salary sacrificing to superannuation to reduce tax, making use of the government co-contribution, being aware of the concessional contributions cap, utilizing the spouse super contribution tax offset, claiming deductions for expenses, and prepaying deductible expenses before June 30. It also stresses the importance of starting to save for retirement early, provides tips for doing so, and advises checking that retirement savings are on track to be sufficient.
The document discusses a 2009 reform in Poland that gradually increased the retirement age. It presents the following:
1) The reform eliminated early retirement eligibility for most workers born after 1954 (women) and 1949 (men), increasing the retirement age to 55-60 or 55-65 respectively.
2) Using a regression discontinuity design on longitudinal data, it finds a statistically significant but small discontinuity in transitions to early retirement around the cutoff dates.
3) Placebo tests find similar sized discontinuities in other time periods, suggesting the observed effect may not be caused solely by the reform. The reform had a small impact on retirement behavior relative to its scope.
[ARCHIVE] Aviva Real Retirement report, March 2012Aviva plc
The Aviva Real Retirement Report is a quarterly analysis of the finances and related concerns of people in three stages of retirement, 55-64, 65-74, and over 75.
Presentation slides for the SMSF Tax Planning webinar presented by Aaron Dunn of the SMSF Academy on 24 April 2013.
With the growing number of self-managed super funds, the need to appropriately plan and take advantage of the various contribution, pension, investment strategy and tax issues all lead to the value of discussing some key tax planning strategies with SMSF trustees.
If you wish to view the webinar recording, this can be purchased for $99 (incl. GST). You can visit the SMSF Academy online store to purchase this recording, https://nq129.infusionsoft.com/app/storeFront/showCategoryPage?categoryId=9
Inequality in an OLG economy with heterogeneous cohorts and pension systemsGRAPE
Marcin Bielecki, Krzysztof Makarski and Joanna Tyrowicz
GRAPEjFAME & University of Warsaw & National Bank of Poland
International Workshop Economic Growth, Macroeconomic Dynamics and
Agents’ Heterogeneity, St. Petersburg, 2017
Is the retirement age increase in Poland still necessary given the 1999 reform of the pension system? EmerytGRAPE analysis with the use of OLG model answers this question.
This document summarizes a study that analyzes the macroeconomic and welfare effects of increasing the retirement age under different pension systems (defined benefit, notional defined contribution, and funded defined contribution). It finds that increasing the retirement age is universally welfare improving. Specifically, it leads to a decrease in average labor supply but an increase in aggregate labor supply. Capital and output per capita decrease due to lower savings. The positive welfare effects are enhanced when productivity increases with age.
Katrina Kosec - If You Give it, Trust Will Come: The Impacts of Community-Man...IFPRI SIG
"If You Give it, Trust Will Come: The Impacts of Community-Managed Cash Transfers" - Katrina Kosec
SIG 2015 Workshop "Integrating Multi-level Governance into the Post-2015 Development Agenda: Opportunities, Trade-offs, and Implications", Nov 9-10, 2015
Inequality in an OLG economy with heterogeneous cohorts and pension systemsGRAPE
The document analyzes how inequality changes in an overlapping generations economy with heterogeneous cohorts and pension systems. It finds that wealth and consumption inequalities increase due to demographic transitions and a pension reform from defined benefit to defined contribution systems. Minimum pensions can reduce inequality increases from the reform by 40-50% by raising incomes at the bottom, but have little effect on preferences. Contribution caps have a negligible impact on inequality. Overall, demographic changes contribute more to rising inequalities than the pension system reform.
Larry Dowell - Insights from the 2012 MACE Compensation & Benefits SurveyDowell Management
The document is a summary of the 2012 MACE Compensation & Benefits Survey. It provides information on participation, demographics of chamber executives, compensation and benefits. Key findings include that participation was up from 2010, the average age of a chamber executive is 44.7, the average salary is $65,239, and around half of chambers contribute to medical insurance costs.
Inequalities in an OLG economy with heterogeneous cohorts and pension systemsGRAPE
1) A pension system reform from defined benefit to defined contribution in Poland would likely increase consumption inequalities but decrease wealth inequalities.
2) The demographic transition alone would increase consumption inequalities more than the pension reform.
3) Minimum pensions could reduce the rise in consumption inequality from the pension reform by around 40% by targeting those with lower incomes, but would slightly increase consumption by reducing savings incentives. The effects of contribution caps would be negligible.
Inequality in an OLG economy with heterogeneous cohorts and pension systemsGRAPE
This document discusses inequality in an overlapping generations economy with heterogeneous cohorts and pension systems. It motivates the study by noting that wealth inequality has increased due to demographic transitions and pension reforms from defined benefit to defined contribution systems. The document outlines an overlapping generations model with ex ante heterogeneity in endowments and preferences within cohorts to examine the distributional effects of pension reforms and policy instruments. Key results presented are that a reform from defined benefit to defined contribution pensions increases both wealth and consumption inequality, and that a minimum pension reduces inequality from the reform by 40-50% by affecting the endowments margin.
Rise White Paper The Utility Of Illiquiditymangojulie
This document discusses how annuitization could provide greater utility and value for retirees than is commonly assumed, if presented in the proper context. It uses a hypothetical example to show that annuitizing a portion of assets can generate the same level of retirement income while requiring fewer total assets than a withdrawal strategy, freeing up assets for other purposes. While behavioral studies often find a preference for lump sums, this may be due to not presenting the choice as one between income streams of different levels. Framing annuitization as generating pension-like income could change perceptions of its value.
This document provides an overview of the role of cash value life insurance in retirement planning. It discusses how cash value life insurance can provide benefits if the policyholder dies, becomes disabled, or lives to retirement. The document outlines how cash value life insurance can serve as a source of retirement income through policy loans and withdrawals. It also notes various tax advantages of cash value life insurance, such as tax-deferred growth and income tax-free death benefits. The document aims to educate readers on how cash value life insurance products work and their potential benefits for retirement planning.
This document discusses preparing for retirement and outlines a 4-stage process: 1) Saving - accumulating savings toward retirement goals; 2) Receiving - being eligible to withdraw assets from qualified plans; 3) Managing - drawing income from retirement savings; 4) Transferring - passing retirement assets to beneficiaries. It addresses common questions about saving enough for retirement and managing assets in retirement, and outlines factors like inflation, longevity, and investing that impact whether savings will last through retirement.
The document examines retirement savings levels among today's retirees based on a 2012 survey. It finds that one-quarter of retirees have less than $1,000 in savings, while just over half have at least $10,000. Around one-third are able to afford one year in a private nursing home. About one-quarter have over $100,000 in savings, while only 15% have savings exceeding $250,000. In general, the document suggests that many retirees are underprepared financially for multi-decade retirements based on the levels of savings reported.
Individual disability insurance is important because most people's greatest asset is their ability to earn an income. Statistics show that about 1 in 3 women and 1 in 4 men will be disabled for 3 months or longer at some point in their career. Disability can jeopardize one's finances and quality of life. The key sources of disability income are employer-provided short-term and long-term disability insurance, Social Security, and individual disability insurance policies. It is important to understand the benefits and limitations of different policies to ensure adequate financial protection in the event of a disability.
An Enhanced Annuity pays a higher retirement income if you have a medical condition that reduces your life expectancy, as the insurance company expects to pay out for a shorter period. Research shows over two-thirds of retirees could benefit from an Enhanced Annuity, with smokers receiving up to 13% more income and the seriously ill receiving significantly higher incomes. Consulting an advisor can help determine if an Enhanced Annuity makes sense for an individual based on their health and maximize their retirement income.
A document discusses accumulating funds in a deferred fixed interest and indexed annuity for retirement. It describes how annuities can be used to systematically save money and guarantee retirement income that cannot be outlived. It then provides details on sources of retirement income, obstacles to retirement planning, and how annuities can help overcome those obstacles by allowing tax-deferred growth and converting savings into guaranteed lifetime income.
Under-discussed challenges of dementia home care in India (Ardsicon2017)Swapna Kishore
This document discusses under-discussed challenges related to dementia home care in India. It focuses on four key topics: financial problems, situations where caregivers have a history of past abuse, lack of support for understanding and acting on a diagnosis, and lack of support for late-stage dementia care. For financial problems, it notes that dementia care costs are unaffordable for most Indian families and discusses how caregiving responsibilities often force family members to reduce or quit their income sources. It also discusses how a history of past abuse between the caregiver and person with dementia can complicate the caregiving relationship and challenges caregivers may face in these situations if this topic remains undiscussed. The document calls for more open discussion of
This document provides information and advice about boosting retirement savings through various tax-effective strategies. It discusses salary sacrificing to superannuation to reduce tax, making use of the government co-contribution, being aware of the concessional contributions cap, utilizing the spouse super contribution tax offset, claiming deductions for expenses, and prepaying deductible expenses before June 30. It also stresses the importance of starting to save for retirement early, provides tips for doing so, and advises checking that retirement savings are on track to be sufficient.
The document discusses a 2009 reform in Poland that gradually increased the retirement age. It presents the following:
1) The reform eliminated early retirement eligibility for most workers born after 1954 (women) and 1949 (men), increasing the retirement age to 55-60 or 55-65 respectively.
2) Using a regression discontinuity design on longitudinal data, it finds a statistically significant but small discontinuity in transitions to early retirement around the cutoff dates.
3) Placebo tests find similar sized discontinuities in other time periods, suggesting the observed effect may not be caused solely by the reform. The reform had a small impact on retirement behavior relative to its scope.
[ARCHIVE] Aviva Real Retirement report, March 2012Aviva plc
The Aviva Real Retirement Report is a quarterly analysis of the finances and related concerns of people in three stages of retirement, 55-64, 65-74, and over 75.
Presentation slides for the SMSF Tax Planning webinar presented by Aaron Dunn of the SMSF Academy on 24 April 2013.
With the growing number of self-managed super funds, the need to appropriately plan and take advantage of the various contribution, pension, investment strategy and tax issues all lead to the value of discussing some key tax planning strategies with SMSF trustees.
If you wish to view the webinar recording, this can be purchased for $99 (incl. GST). You can visit the SMSF Academy online store to purchase this recording, https://nq129.infusionsoft.com/app/storeFront/showCategoryPage?categoryId=9
Inequality in an OLG economy with heterogeneous cohorts and pension systemsGRAPE
Marcin Bielecki, Krzysztof Makarski and Joanna Tyrowicz
GRAPEjFAME & University of Warsaw & National Bank of Poland
International Workshop Economic Growth, Macroeconomic Dynamics and
Agents’ Heterogeneity, St. Petersburg, 2017
Is the retirement age increase in Poland still necessary given the 1999 reform of the pension system? EmerytGRAPE analysis with the use of OLG model answers this question.
This document summarizes a study that analyzes the macroeconomic and welfare effects of increasing the retirement age under different pension systems (defined benefit, notional defined contribution, and funded defined contribution). It finds that increasing the retirement age is universally welfare improving. Specifically, it leads to a decrease in average labor supply but an increase in aggregate labor supply. Capital and output per capita decrease due to lower savings. The positive welfare effects are enhanced when productivity increases with age.
Katrina Kosec - If You Give it, Trust Will Come: The Impacts of Community-Man...IFPRI SIG
"If You Give it, Trust Will Come: The Impacts of Community-Managed Cash Transfers" - Katrina Kosec
SIG 2015 Workshop "Integrating Multi-level Governance into the Post-2015 Development Agenda: Opportunities, Trade-offs, and Implications", Nov 9-10, 2015
Inequality in an OLG economy with heterogeneous cohorts and pension systemsGRAPE
The document analyzes how inequality changes in an overlapping generations economy with heterogeneous cohorts and pension systems. It finds that wealth and consumption inequalities increase due to demographic transitions and a pension reform from defined benefit to defined contribution systems. Minimum pensions can reduce inequality increases from the reform by 40-50% by raising incomes at the bottom, but have little effect on preferences. Contribution caps have a negligible impact on inequality. Overall, demographic changes contribute more to rising inequalities than the pension system reform.
Larry Dowell - Insights from the 2012 MACE Compensation & Benefits SurveyDowell Management
The document is a summary of the 2012 MACE Compensation & Benefits Survey. It provides information on participation, demographics of chamber executives, compensation and benefits. Key findings include that participation was up from 2010, the average age of a chamber executive is 44.7, the average salary is $65,239, and around half of chambers contribute to medical insurance costs.
Inequalities in an OLG economy with heterogeneous cohorts and pension systemsGRAPE
1) A pension system reform from defined benefit to defined contribution in Poland would likely increase consumption inequalities but decrease wealth inequalities.
2) The demographic transition alone would increase consumption inequalities more than the pension reform.
3) Minimum pensions could reduce the rise in consumption inequality from the pension reform by around 40% by targeting those with lower incomes, but would slightly increase consumption by reducing savings incentives. The effects of contribution caps would be negligible.
Inequality in an OLG economy with heterogeneous cohorts and pension systemsGRAPE
This document discusses inequality in an overlapping generations economy with heterogeneous cohorts and pension systems. It motivates the study by noting that wealth inequality has increased due to demographic transitions and pension reforms from defined benefit to defined contribution systems. The document outlines an overlapping generations model with ex ante heterogeneity in endowments and preferences within cohorts to examine the distributional effects of pension reforms and policy instruments. Key results presented are that a reform from defined benefit to defined contribution pensions increases both wealth and consumption inequality, and that a minimum pension reduces inequality from the reform by 40-50% by affecting the endowments margin.
Rise White Paper The Utility Of Illiquiditymangojulie
This document discusses how annuitization could provide greater utility and value for retirees than is commonly assumed, if presented in the proper context. It uses a hypothetical example to show that annuitizing a portion of assets can generate the same level of retirement income while requiring fewer total assets than a withdrawal strategy, freeing up assets for other purposes. While behavioral studies often find a preference for lump sums, this may be due to not presenting the choice as one between income streams of different levels. Framing annuitization as generating pension-like income could change perceptions of its value.
This document provides an overview of the role of cash value life insurance in retirement planning. It discusses how cash value life insurance can provide benefits if the policyholder dies, becomes disabled, or lives to retirement. The document outlines how cash value life insurance can serve as a source of retirement income through policy loans and withdrawals. It also notes various tax advantages of cash value life insurance, such as tax-deferred growth and income tax-free death benefits. The document aims to educate readers on how cash value life insurance products work and their potential benefits for retirement planning.
This document discusses preparing for retirement and outlines a 4-stage process: 1) Saving - accumulating savings toward retirement goals; 2) Receiving - being eligible to withdraw assets from qualified plans; 3) Managing - drawing income from retirement savings; 4) Transferring - passing retirement assets to beneficiaries. It addresses common questions about saving enough for retirement and managing assets in retirement, and outlines factors like inflation, longevity, and investing that impact whether savings will last through retirement.
The document examines retirement savings levels among today's retirees based on a 2012 survey. It finds that one-quarter of retirees have less than $1,000 in savings, while just over half have at least $10,000. Around one-third are able to afford one year in a private nursing home. About one-quarter have over $100,000 in savings, while only 15% have savings exceeding $250,000. In general, the document suggests that many retirees are underprepared financially for multi-decade retirements based on the levels of savings reported.
Individual disability insurance is important because most people's greatest asset is their ability to earn an income. Statistics show that about 1 in 3 women and 1 in 4 men will be disabled for 3 months or longer at some point in their career. Disability can jeopardize one's finances and quality of life. The key sources of disability income are employer-provided short-term and long-term disability insurance, Social Security, and individual disability insurance policies. It is important to understand the benefits and limitations of different policies to ensure adequate financial protection in the event of a disability.
An Enhanced Annuity pays a higher retirement income if you have a medical condition that reduces your life expectancy, as the insurance company expects to pay out for a shorter period. Research shows over two-thirds of retirees could benefit from an Enhanced Annuity, with smokers receiving up to 13% more income and the seriously ill receiving significantly higher incomes. Consulting an advisor can help determine if an Enhanced Annuity makes sense for an individual based on their health and maximize their retirement income.
A document discusses accumulating funds in a deferred fixed interest and indexed annuity for retirement. It describes how annuities can be used to systematically save money and guarantee retirement income that cannot be outlived. It then provides details on sources of retirement income, obstacles to retirement planning, and how annuities can help overcome those obstacles by allowing tax-deferred growth and converting savings into guaranteed lifetime income.
Under-discussed challenges of dementia home care in India (Ardsicon2017)Swapna Kishore
This document discusses under-discussed challenges related to dementia home care in India. It focuses on four key topics: financial problems, situations where caregivers have a history of past abuse, lack of support for understanding and acting on a diagnosis, and lack of support for late-stage dementia care. For financial problems, it notes that dementia care costs are unaffordable for most Indian families and discusses how caregiving responsibilities often force family members to reduce or quit their income sources. It also discusses how a history of past abuse between the caregiver and person with dementia can complicate the caregiving relationship and challenges caregivers may face in these situations if this topic remains undiscussed. The document calls for more open discussion of
The document discusses challenges retirees face with managing their finances, including market volatility, longevity risks, healthcare costs, and inflation. It notes that average healthcare costs for a retiree are around $230,000 and that historically low-risk investments have not kept pace with inflation. The document advocates creating a customized portfolio that includes sources of steady income to outpace inflation and maintain one's standard of living in retirement. It also notes looming issues with Social Security and Medicare funding shortfalls that may require benefit adjustments.
This document provides an overview of long-term care planning and insurance. It begins with introductory information and disclaimers. It then discusses the potential costs of long-term care based on average earnings over a career. Several facts about long-term care needs and costs are presented. Common misconceptions about who pays for long-term care are addressed. The benefits of long-term care insurance for protecting assets are described. Tax treatment of long-term care insurance premiums and benefits is summarized. Considerations for evaluating long-term care insurance policies are outlined. The document concludes by emphasizing the importance of financial management for writing one's life story.
The document discusses the need to plan for extended care as people are living longer lives and may require assistance with daily activities or suffer from cognitive impairments. It notes that over 12 million Americans currently require some form of extended care, with costs averaging tens of thousands per year. The document promotes purchasing long term care insurance now at a younger age to protect assets and have more options for care settings if extended care is needed.
The document discusses the need and costs of long-term care, who requires it, who pays for it, and how long-term care insurance can help protect individuals and their families from the high financial costs of long-term care. Many Americans will require long-term care services as they age and chronic illnesses increase, yet most do not realize that private health insurance like Medicare does not cover these costs, leaving most to pay out-of-pocket. The document advises getting long-term care insurance in one's 50s to help cover long-term care costs that can deplete an individual's savings and lower their quality of life.
This document discusses key factors in retirement planning, including increased life expectancy, inflation, declining pensions, and health care costs. It outlines 5 steps for retirement planning: 1) set goals, 2) estimate expenses, 3) determine resources, 4) estimate savings needed, and 5) make adjustments if savings are insufficient. The document emphasizes starting to save early, maximizing tax-deferred savings plans, diversifying investments, and seeking professional financial planning assistance.
Virtual report launch: Slipping between the cracks? Retirement income prospec...ILC- UK
Find out more and see a recording of the event here: https://ilcuk.org.uk/report-launch-the-forgotten-generation-retirement-income-prospects-of-generation-x/
The document discusses demographic data showing that the population of women religious is aging rapidly, with 35% over age 75 in 2008 projected to increase to 76% by 2023. This aging will impact services communities can provide and financial sustainability. Most communities are underfunded for retirement needs, and innovative approaches are urged to bridge the gap between current realities and future goals to support aging sisters and ministry work.
WFG - Helping People Create Better Financial Futurespetervinhong
This presentation gives an overview of why WFG associates go to work each day: to build and protect wealth for families and individuals. It overviews the six components of WFG\'s financial needs analysis and describes fundamental financial concepts and strategies - such as the rule of 72 - that can help people secure their financial futures.
This document provides an overview of World Financial Group, which helps clients build and protect wealth through savings, insurance, and investment products. It discusses the company's mission to help families achieve financial security and independence through creating relationships based on trust and referrals. The document also summarizes some basic financial concepts around managing money, such as the power of compound interest over time, understanding risk and return, and reducing taxes.
This is a Sample of a Research Report valued at over $80,000 containing millions of dollars worth of research data that shows why approx 95% of retirement plans FAIL.
The full version is also available at no cost.
Anyone who wants to retire MUST see this valuable information.
You will learn how much is needed to retire, see historic investment returns, why most plans are losing 44% they don't know about, how inflation devastates most plans, where 90% of millionaires made their money and most importantly discover a safe and affordable alternative
Enjoy and more importantly plan wisely for your future!
This document discusses the importance of long term care insurance for both employers and employees. It notes that over 1 in 3 Americans receiving long term care are working age adults, and the average nationwide cost of nursing home care is $76,000 per year. Long term care insurance can help cover these costs and protect savings. The document advocates that employers offer long term care insurance as an employee benefit, as it can help with employee retention and reduce absenteeism from caregiver responsibilities.
This document discusses the importance of long term care insurance for both employers and employees. It notes that over 1 in 3 Americans receiving long term care are working age adults, and the average nationwide cost of nursing home care is $76,000 per year. Long term care insurance can help cover these costs and protect savings. The document advocates that employers offer long term care insurance as an employee benefit, as it can help with employee retention and reduce absenteeism from caregiver responsibilities.
This document provides an overview of the flexible benefits offered by Sogeti USA to its employees. It outlines the company's commitment to building long-term relationships with employees and creating a healthy work-life balance. The core benefits offered at no cost to employees include life insurance, short-term disability, long-term disability, an employee assistance program, and adoption assistance. Employees can also choose from medical, dental, vision, and prescription drug plans administered by Aetna, with no premium costs. Additional benefits include a 401(k) retirement plan, personal time off, paid holidays, education reimbursement, and service milestone awards.
Similar to Putnam Investments: Pathway to Independence (20)
The document provides details about the Boston Celtics' historic parquet floor. It notes that the floor has been witness to 17 championship banners and is considered one of the most storied surfaces in sports. It is where Celtic pride and legacy of winning took shape. The parquet floor has a detailed intricate pattern and was originally constructed from limited wood sources during WWII. Putnam Investments is proud to partner with the Celtics and be the first logo placed on the parquet floor in front of the bench.
Putnam Investment's 2015 Financial Advisors and Social Media SurveyPutnam Investments
Putnam Investments surveyed over 800 financial advisors to learn more about how they are using social media for business. The findings are the fourth annual iteration of the study.
Financial advisors are increasingly using social media for business purposes. A survey of over 700 advisors found that 75% use social media for business, with LinkedIn being the primary network used by 55% of advisors. Younger advisors and women tend to use social media more, and it is proving effective for many advisors, with 66% reporting having gained new clients through social media. Facebook use is also on the rise among advisors.
U.S. equities continued their impressive advance, with
no significant declines during the quarter. In Europe, policy changes may function as an important tailwind for growth and market performance. Globally, M&A activity has been on the rise, giving a boost to equity prices across the market-cap spectrum. The current bull market has been significant — in terms of both length and magnitude.
The global economy is improving overall, with the U.S. and U.K. leading the way. We expect higher GDP growth from the U.S. to support risk assets in the third quarter. We continue to expect a rise in U.S. interest rates in 2014, though eurozone policy may help slow a near-term increase. We favor credit, prepayment, and liquidity risks, which we express in allocations to mezzanine CMBS, peripheral European sovereigns, select EM sovereigns, and interest-only (IO) CMOs.
Signs of inflation will raise the stakes for the Fed’s policy communications. Favorable conditions for leveraged strategies could reverse quickly. Reasonable valuations and the Fed’s policy goals continue to support risk assets.
We expect rate volatility to remain high as Fed tapering continues and as the U.S. labor market struggles to normalize. In Europe, the European Central Bank has moved a step closer to easier monetary policy, which may drive further spread compression in peripheral sovereign bonds. Recent stability in emerging-market asset markets suggests better data for developing countries could be on the horizon. Our outlook for credit, prepayment, and liquidity risks remains positive.
As Fed tapering unfolds, we expect to see stronger growth from developed markets, while emerging markets in aggregate may experience further currency and capital market weakness. In the United States, declining labor participation continues to drive falling unemployment figures, and may harbor the beginning of a wage inflation surprise.
• We expect credit, liquidity, and prepayment risks will continue to
be rewarded by the market in the months ahead, while interestrate
risk remains unattractive due to its asymmetric risk profile.
No bubble trouble; stocks are still reasonably priced. This credit cycle has unique characteristics that continue to make high-yield bonds attractive. Interest-rate volatility poses greater risk than higher rates themselves.
This document discusses factors that determine how prepared households are for retirement. It introduces the Putnam Lifetime Income Score (LIS), which estimates the percentage of pre-retirement income a household is likely to replace during retirement. The document then outlines three key characteristics of households most prepared for retirement according to their LIS: having access to an employer retirement plan, saving at least 10% of income, and working with a financial advisor. It also notes the importance of planning for healthcare costs in retirement.
The document summarizes Putnam's fixed-income outlook for Q4 2013. It discusses:
1) The Fed surprised markets by not tapering its bond-buying program, keeping rates low for longer but also increasing rate volatility driven by economic data.
2) Putnam believes the decline in labor participation may be more structural than cyclical, potentially leading to rapid policy tightening in 2014 if unemployment falls quickly.
3) Securitized sectors like agency mortgage-backed securities and commercial mortgage-backed securities benefited from Fed policy and remained overweight positions.
If U.S. politics do not derail the recovery, pent-up demand can drive faster economic growth. Fixed-income outflows appear likely to continue, pushing rates higher.
- 50% of financial advisors say their companies impose no restrictions on using social media for business purposes from any location or device.
- Advisors see social media's role in marketing increasing as it is a faster and more cost-effective way to reach clients.
- The majority of advisors use LinkedIn for business purposes like cultivating new clients and relationships. Many have increased their LinkedIn usage as they better understand how to leverage it.
The document discusses Putnam's outlook on various fixed income asset classes in light of the Federal Reserve signaling that it may begin tapering its quantitative easing program. It finds that while interest rates may remain volatile in the near future, many spread sectors now offer attractive risk-adjusted returns. Specifically, it believes mortgage-backed securities, high yield bonds, bank loans, and select investment grade corporate bonds in sectors like utilities and energy provide opportunities for investors. While term structure risk from rising rates remains, security selection and tactical strategies can help add value.
Retirement planning should be based on an understanding of generating a lifetime income stream. Putnam’s Lifetime Income experience has demonstrated a positive influence on participant savings behavior. The U.S. Department of Labor’s goal of adding lifetime income illustrations on pension benefit statements advances the effort to help retirement plan participants make better savings decisions. Rules governing the distribution of this information should be flexible and open to innovation.
Municipal bond prices moved lower during the second quarter, as fears about the Federal Reserve tapering its stimulus program rattled the financial markets. While a handful of states still face some budget pressure for the remainder of their 2013 fiscal year, 45 states reported that they are likely to meet or exceed their revenue projections for fiscal year 2013. Interest-rate volatility and the longer term prospect of higher rates have reinforced our bias toward a more limited duration stance. We continue to overweight essential-service revenue bonds, as well as the A-rated and BBB-rated segments of the market. Our outlook calls for defaults to remain low and continued gradual economic recovery.
Global bond markets fell in May and June, as investors contemplated the end of massive liquidity from the U.S. Federal Reserve’s bond-buying program. The fund’s overweight exposure to the strengthening U.S. dollar aided performance during the quarter, as did our holdings of commercial mortgage-backed securities. Our mortgage credit holdings and our allocation to high-yield bonds generated positive returns early in the period before investors began to shed risk in May, but the positions remained positive overall for the quarter. We have a generally positive outlook for global economic growth and are seeking to capitalize on opportunities in spread sectors exhibiting improved relative value.
The portfolio’s pro-cyclical bias was beneficial as we continued to see a shift in favor of cyclical stocks over defensive sectors. Over the past few years, we have seen a significant expansion in the universe of companies with the ability and willingness to pay a dividend. Given the speed with which stocks have advanced and the introduction of increased interest-rate volatility, I would describe my outlook for equities as cautious for the short term.
Christian persecution in Islamic countries has intensified, with alarming incidents of violence, discrimination, and intolerance. This article highlights recent attacks in Nigeria, Pakistan, Egypt, Iran, and Iraq, exposing the multifaceted challenges faced by Christian communities. Despite the severity of these atrocities, the Western world's response remains muted due to political, economic, and social considerations. The urgent need for international intervention is underscored, emphasizing that without substantial support, the future of Christianity in these regions is at grave risk.
https://ecspe.org/the-rise-of-christian-persecution-in-islamic-countries/
projet de traité négocié à Istanbul (anglais).pdfEdouardHusson
Ceci est le projet de traité qui avait été négocié entre Russes et Ukrainiens à Istanbul en mars 2022, avant que les Etats-Unis et la Grande-Bretagne ne détournent Kiev de signer.
21062024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
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22062024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
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Importance of Staying Connected with the World of Politics.pdfJaydenIrish
Discover the power of staying updated on the latest political events at Mecella! Our dedicated Politics section offers comprehensive coverage, insightful analysis, and expert commentary. Stay informed with recent political events, breaking news and in-depth articles on worldwide political developments. Join us in understanding the world of politics!
19 जून को बॉम्बे हाई कोर्ट ने विवादित फिल्म ‘हमारे बारह’ को 21 जून को थिएटर में रिलीज करने का रास्ता साफ कर दिया, हालांकि यह सुनिश्चित करने के बाद कि फिल्म निर्माता कुछ आपत्तिजनक अंशों को हटा दें।
#WenguiGuo#WashingtonFarm Guo Wengui Wolf son ambition exposed to open a far...rittaajmal71
Since fleeing to the United States in 2014, Guo Wengui has founded a number of projects in the United States, such as GTV Media Group, GTV private equity, farm loan project, G Club Operations Co., LTD., and Himalaya Exchange.
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Paper by Daniel Angus, Stephen Harrington, Axel Bruns, Phoebe Matich, Nadia Jude, Edward Hurcombe, and Ashwin Nagappa, presented at the ICA 2024 conference, Gold Coast, 22 June 2024.
17062024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
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Federal Authorities Urge Vigilance Amid Bird Flu Outbreak | The Lifesciences ...The Lifesciences Magazine
Federal authorities have advised the public to remain vigilant but calm in response to the ongoing bird flu outbreak of highly pathogenic avian influenza, commonly known as bird flu.
20062024_First India Newspaper Jaipur.pdfFIRST INDIA
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CLICK:- https://firstindia.co.in/
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La defensa del expresidente Juan Orlando Hernández, declarado culpable por narcotráfico en EE. UU., solicitó este viernes al juez Kevin Castel que imponga una condena mínima de 40 años de prisión.
Apna Punjab Media is a Punjabi newspaper that covers local and global news, cultural updates, and community events. It's a trusted source for Punjabi-speaking communities, offering a mix of traditional values and modern insights into Punjab's vibrant life and heritage.
19 जून को बॉम्बे हाई कोर्ट ने विवादित फिल्म ‘हमारे बारह’ को 21 जून को थिएटर में रिलीज करने का रास्ता साफ कर दिया, हालांकि यह सुनिश्चित करने के बाद कि फिल्म निर्माता कुछ आपत्तिजनक अंशों को हटा दें।
ACSA confirms operational readiness ahead the arrival of Heads of State at OR...
Putnam Investments: Pathway to Independence
1. Not FDIC May Lose No Bank
Insured Value Guarantee
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2. A strong foundation
Nearly half of the U.S. 47%
labor force
More than half of
management and professional
51%
jobs
More likely (than men)
to attend college 74%
Source: Bureau of Labor Statistics, Women in the Labor Force: A Databook, 2010.
EO013 270090 10/11 |2
3. The challenges
• Earnings (still) tend to be lower overall
• Likely to live longer
• Often in the role of caregiver
• Investment behavior is more cautious
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4. Receiving lower overall pay
Today At retirement
This estimated wage gap
could cost the average
Women are paid
full-time woman worker
77 cents for $700,000 to
every dollar
earned by a man $2 million over the
course of her work life
Source: National Committee on Pay Equity, September 2010.
EO013 270090 10/11 |4
5. Enjoying a long retirement
Health-care costs
The average woman will outpace the
who retires at age 65 rate of inflation
today can expect to live A longer lifespan
21 years in retirement means more years
in retirement
Source: Social Security Administration, 2011.
EO013 270090 10/11 |5
6. Taking care of others
61% More than half
of those who of employed
provide unpaid women caregivers
care to an elderly adjust their work
or disabled adult schedules to
are women provide care
Source: U.S. Department of Health and Human Services, Office on Women’s Health, May 2008, which is the most recent data available.
.
EO013 270090 10/11 |6
7. Being too conservative
However, being too
Women’s patience conservative can
in investing is negatively affect
your retirement
often rewarded savings goals
Sources: Hewitt Associates, "Total Retirement Income at Large Companies: The Real Deal," July 2008; Society of Actuaries, “Risks and
.Process Retirement Survey Report,” May 2008, which is the most recent data available.
EO013 270090 10/11 |7
8. Strategies to move your
retirement plan
in the right direction
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9. Will you need more income
in retirement?
The average household
Expenses requires $49,067 annually,
or $981,340 over 20 years,
before inflation*
Wealth Long-term inflation
preservation averages 3.24% per year**
* U.S. Dept. of Labor, 2010 Consumer Expenditure Survey Report (based on 2009 data).
** Consumer Price Index, 2011, for the period 1913-2010.
EO013 270090 10/11 |9
10. Do you know how much
you’ll need to save?
Survey responses
Less than 31%
$250,000
Less than 50%
$500,000
Less than 72%
$1,000,000
At least 17%
$1,000,000
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2011 Retirement Confidence Survey.
EO013 270090 10/11 | 10
11. Because reality can be startling
If your current
annual income is You’ll need to save
$50,000 $890,000
$100,000 $1,800,000
$250,000 $3,600,000
Assumes 25 years of retirement, and a retirement nest egg growing at 6% annually, compounded monthly and adjusted for 3% inflation.
EO013 270090 10/11 | 11
12. Save as much as you can
2011 limit
Your employer’s retirement plan $16,500
Before-tax contributions, tax-deferred earnings
Traditional IRA $5,000
Before-tax contributions (if you qualify), tax-deferred earnings
Roth IRA $5,000
After-tax contributions, tax-free withdrawals
Additional contributions for those age 50 and over
Employer’s retirement plan $5,500
Traditional or Roth IRA $1,000
Source: IRS, 2011.
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13. Social Security won’t cover it all
$50,908
$38,272
Annual income of
full-time worker
(age 60) $17,520
$14,460
What you can
expect from
Social Security*
Single Men Single
Women
* In today’s dollars. Assumes retirement at age 66.
The maximum Social Security benefit in 2011 for an individual at full retirement age (66) is $28,392.
Sources: Bureau of Labor Statistics, Highlights of Women’s Earnings in 2010, Social Security Administration, 2011.
EO013 270090 10/11 | 13
14. Actively manage your nest egg
• Diversify to reduce risk, while seeking
to optimize returns
• Rebalance regularly
• Take sustainable withdrawals
Diversification and rebalancing will not necessarily prevent you from losing money; however, they may reduce volatility and potentially limit downside
losses.
EO013 270090 10/11 | 14
15. Diversification can help
lower volatility
Stocks felt the boom
and bust of the 1990s
and early 2000s.
$500,000 $1,703,459
Jan. 1991
Dec. 2010
Annual withdrawal: $25,000
Illustration is based on a hypothetical investment of $500,000 in the S&P 500 Index. The S&P 500 Index is an unmanaged index of common stock
performance. You cannot invest directly in an index.
EO013 270090 10/11 | 15
16. Diversification can help
lower volatility
Bonds were steady,
but lagged behind
stocks.
$500,000
Jan. 1991 $716,709
Annual withdrawal: $25,000 Dec. 2010
Illustration is based on a hypothetical investment of $500,000 in the S&P 500 Index and the Barclays Capital U.S. Aggregate Bond Index. The Barclays
Capital U.S. Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed-income securities. You cannot invest directly in an index
EO013 270090 10/11 | 16
17. Diversification can help
lower volatility
A diversified portfolio
outpaced bonds with
far less volatility.
$500,000
Jan. 1991 $1,029,714
Annual withdrawal: $25,000 Dec. 2010
Illustration is based on a hypothetical investment of $500,000 in the S&P 500 Index, the Barclays Capital U.S. Aggregate Bond Index, and a diversified
portfolio composed of a 25% investment in the S&P 500 Index and a 75% investment in the Barclays Capital U.S. Aggregate Bond Index. Refer to
slides 15 and 16 for index definitions. You cannot invest directly in an index. Annual withdrawals are $25,000 increased by 3% annually for inflation.
Diversified portfolio is rebalanced annually.
EO013 270090 10/11 | 17
18. Diversify across opportunities
Changes in market performance, 1991–2010
1991 1995 2000 2005 2010
Highest
return
Lowest
return
U.S. Small-Cap Growth Stocks | Russell 2000 Growth Index International stocks | MSCI EAFE Index
U.S. Large-Cap Growth Stocks | Russell 1000 Growth Index U.S. Bonds | Barclays Capital U.S. Aggregate Bond Index
U.S. Small-Cap Value Stocks | Russell 2000 Value Index Cash | BofA Merrill Lynch U.S. 3-Month Treasury Bill Index
U.S. Large-Cap Value Stocks | Russell 1000 Value Index
Past performance does not indicate future results.
Indexes are unmanaged and show broad market performance. It is not possible to invest directly in an index.
EO013 270090 10/11 | 18
19. Small-Cap Growth Stocks are represented by the Russell 2000 Growth Index, which
is an unmanaged index of those companies in the Russell 2000 Index chosen for their
growth orientation.
Large-Cap Growth Stocks are represented by the Russell 1000 Growth Index, which
is an unmanaged index of capitalization-weighted stocks chosen for their growth
orientation.
Small-Cap Value Stocks are represented by the Russell 2000 Value Index, which is an
unmanaged index of those companies in the Russell 2000 Index chosen for their value
orientation.
Large-Cap Value Stocks are represented by the Russell 1000 Value Index, which is an
unmanaged index of capitalization-weighted stocks chosen for their value orientation.
International Stocks are represented by the MSCI EAFE Index, which is an
unmanaged index of international stocks from Europe, Australasia, and the Far East.
U.S. Bonds are represented by the Barclays Capital U.S. Aggregate Bond Index, which is
an unmanaged index used as a general measure of fixed-income securities.
Cash is represented by the Bank of America Merrill Lynch U.S. 3-Month Treasury Bill
Index, which is an unmanaged index used as a general measure for money market or cash
instruments.
EO013 270090 10/11 | 19
20. Active rebalancing
Without rebalancing: The market controls asset allocation
Stocks
Bonds
67% 57%
33% 43%
Out-of-
Balanced balance
portfolio portfolio
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Stocks are represented by the S&P 500 Index and bonds by the Barclays Capital U.S. Aggregate Bond Index. Indexes are unmanaged and represent broad
market performance. It is not possible to invest directly in an index. Data is historical. Past performance is not a guarantee of future results. Diversification
and rebalancing will not necessarily prevent you from losing money; however, they may reduce volatility and potentially limit downside losses.
EO013 270090 10/11 | 20
21. Active rebalancing
With rebalancing: Asset allocation remains consistent
Stocks
Bonds
67% 57%
67% 67%
33% 43%
33% 33%
Balanced Balanced
portfolio portfolio
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Stocks are represented by the S&P 500 Index and bonds by the Barclays Capital U.S. Aggregate Bond Index. Indexes are unmanaged and represent broad
market performance. It is not possible to invest directly in an index. Data is historical. Past performance is not a guarantee of future results. Diversification
and rebalancing will not necessarily prevent you from losing money; however, they may reduce volatility and potentially limit downside losses.
EO013 270090 10/11 | 21
22. Putnam Asset Allocation
Funds
• Asset class diversification
• Global investment perspective
• Active rebalancing
• Individual security selection
EO013 270090 10/11 | 22
23. Consider these risks before investing:
Putnam Asset Allocation Funds can invest in international investments,
which involve risks such as currency fluctuations, economic instability,
and political developments.
The funds invest some or all of their assets in small and/or midsize
companies. Such investments increase the risk of greater price
fluctuations. The use of derivatives involves special risks and may result
in losses.
The funds can also have a significant portion of their holdings in bonds.
Mutual funds that invest in bonds are subject to certain risks including
interest-rate risk, credit risk, and inflation risk. As interest rates rise,
the prices of bonds fall. Long-term bonds have more exposure to
interest-rate risk than short-term bonds. Lower-rated bonds may offer
higher yields in return for more risk. Unlike bonds, bond funds have
ongoing fees and expenses.
EO013 270090 10/11 | 23
24. Putnam’s three diversified funds
Choices for investors with different objectives
Growth Balanced Conservative
Portfolio Portfolio Portfolio
20% 30%
40%
60% 70%
80%
Amount allocated to stocks
Amount allocated to bonds
EO013 270090 10/11 | 24
25. How long will your savings last?
It depends on how much you withdraw each year.
50
40
30
Years
20
10 3% 4% 5% 6% 7% 8% 9% 10%
will last will last will last will last will last will last will last will last
50+ years 37 years 22 years 17 years 14 years 12 years 11 years 10 years
0
Percentage of your portfolio’s original balance withdrawn each year
This example assumed a 95% probability rate. These hypothetical illustrations are based on rolling historical time period analysis and do not account for the
effect of taxes, nor do they represent the performance of any Putnam fund or product, which will fluctuate. These illustrations use the historical rolling
periods from 1926 to 2010 of stocks (as represented by an S&P 500 composite), bonds (as represented by a 20-year long-term government bond (50%)
and a 20-year corporate bond (50%)), and cash (U.S. 30-day T-bills) to determine how long a portfolio would have lasted given various withdrawal rates. A
one-year rolling average is used to calculate performance of the 20-year bonds. Past performance is not a guarantee of future results. The S&P 500 Index
is an unmanaged index of common stock performance. You cannot invest directly in an index.
EO013 270090 10/11 | 25
26. Put your plan into action
• Understand your investment challenges and consider
how they may impact your retirement
• Develop an effective retirement plan to determine
what you can do today to ensure you’ll have the
income you’ll need later on
EO013 270090 10/11 | 26
27. Prepare for the unexpected
• Life events
– Family and home emergencies
– Change in health
– Change in career or income
– Divorce or death of a spouse
• Estate planning
EO013 270090 10/11 | 27
28. Work with a financial advisor
• Be actively engaged in the management of your
money and review your financial plan regularly
EO013 270090 10/11 | 28
29. A BALANCED APPROACH
A WORLD OF INVESTING
A COMMITMENT TO EXCELLENCE
EO013 270090 10/11 | 29
30. Investors should carefully consider the investment
objectives, risks, charges, and expenses of a fund
before investing. For a prospectus, or a summary
prospectus if available, containing this and other
information for any Putnam fund or product, call
your financial representative or call Putnam at
1-800-225-1581. Please read the prospectus
carefully before investing.
Putnam Retail Management
putnam.com
EO013 270090 10/11 | 30
Welcome. Today, we’re going to talk about saving for retirement and preparing for a financially sound and satisfying future. We’ll learn about the challenges and discuss time-tested investment principles for growing and monitoring your savings so you can feel confident and secure about your retirement journey.
Women have made great strides with finances. More women are working full time Women compose 47% of the total U.S. workforce In 2009, 66 million women are employed in the United States — down slightly from the all-time high of 68 million in 2008. The largest percentage of employed women (51%) work in management, professional, and related occupations. Greater potential for higher education Among those who graduated high school in 2009, a greater percentage of women (72%) than men (66%) enrolled in college that fall. Sources: Bureau of Labor Statistics, Women in the Labor Force: A Databook , 2010.
Despite the gains made in the areas of earnings and investing, challenges remain. Of course, all investors confront hurdles on their way to reaching their goals. But let’s review challenges that are more unique to women: Earnings (still) tend to be lower overall Likely to live longer (yes, it’s a challenge!) Women often assume the role of caregiver More cautious investment style
Let’s take a closer look at these challenges. At work: Equal pay has been the law since 1963. But today, more than 45 years later, women are still paid less than men — even with similar education, skills, and experience. In 2009, women were paid only 77 cents for every dollar a man was paid, according to the U.S. Census Bureau. Economist Evelyn Murphy, president and founder of The WAGE Project, estimates the wage gap costs the average full-time U.S. woman worker between $700,000 and $2 million over the course of her work life. Statistics provided by the Older Women’s League at www.owl-national.org and the National Committee on Pay Equity, 2010.
In life: In planning for retirement, it is important to consider how long you might live. And women today are living longer than men. If you are celebrating your 65th birthday today, you can expect to live an average of 21 more years. What’s more, the majority of people age 85 and older are women. One challenge with longevity is that, statistically, as people age they find themselves paying more and more on health-care and related expenses. Fifty-six percent of women are worried about paying for long-term health-care costs in retirement versus 45% of men. It is important to recognize that inflation is different for seniors because of health care. Health-care costs are projected to rise 8% annually over the next 20 years. Make sure your retirement income plan takes a longer life span and an increase in health-care costs into account.
At home: Of all the unpaid caregivers who provide care to the elderly and disabled, 61% are women. This commitment to the care of others takes its toll on the careers of these women, who are forced to be home — and therefore away from the workplace — more than they otherwise would be. In fact, according to the U.S. Department of Health and Human Services, more than half of employed women caregivers make adjustments to their work schedules in order to provide care.
Studies have shown that experienced women investors actually earn better returns overall than men because they are more patient investors and don't jump in and out of the market as often. But studies also have found that women tend to invest more conservatively than men, often sticking with “safe” but low-returning vehicles such as savings accounts. This has an obvious impact on all aspects of one’s financial life, but particularly retirement. By focusing on preserving your portfolio’s principal rather than achieving returns, you may give up the growth necessary to reach your long-term savings goals 65% of women are likely to make riskier investments, compared to 71% of men. 26% of women are likely to make changes to their investments, compared to 30% of men. 62% of women worry about their investments keeping pace with inflation in retirement, compared to 51% of men. 52% are worried about depleting their savings, versus 37% of men. Sources: Hewitt Associates, “Total Retirement Income at Large Companies: The Real Deal,” July 2008; Society of Actuaries, “Risks and Process Retirement Survey Report,” May 2008.
A long and happy retirement is on most everyone’s wish list. Understanding the challenges you’ll face on your path to retirement is an important step in taking control of your financial future. Let’s discuss how you work toward reaching your retirement goals with strategies that keep your retirement income plan headed in the right direction.
While financial planners suggest you may need to carry at least 80% of your working income into retirement, just how hard your income must work is often underestimated. Your earnings may be less than expected You are living longer You are spending more for rising expenses like health care You are taking care of others – that you may or may not have expected to take care of Retirement requires a lot of savings. And with the challenges at hand – plus the signs of rising inflation – how you save requires careful planning.
Let’s look at how much money people think they need to save for their retirement. The vast majority estimate they need to save less than $1 million, and more than 30% put the figure under $250,000. As you’ll see, these estimates fall far short of reality.
First, we all need to recognize that the actual numbers associated with retirement savings goals can be daunting. How big of a nest egg do you think you’ll need to replace an annual income of $50,000 over a 25-year retirement? (Solicit responses from the audience.) You’ll need nearly $900,000, assuming a 6% rate of return on the savings and a 3% rate of inflation. To replace $100,000, that’s fairly straightforward — you can quickly do the math: you’ll need approximately $1.8 million. What about $250,000 in income? (Solicit responses from the audience.) It’s a whopping $3.6 million.
Actively saving is key, and to help you work toward achieving your financial retirement goal, it’s important to take advantage of the tax-sheltered plans available to you. These include your employer’s retirement plan such as a 401(k), a Traditional IRA, and a Roth IRA. As you can see, each type of plan has specific limits on the contributions you can make per year, but the overall savings opportunities are significant.
While Social Security is a form of an income stream, it’s important to understand that it will provide only a fraction of the income you will need in retirement. Many overestimate the amount of income they will receive from their savings and wind up relying more heavily on Social Security to pay the bills. To maintain your standard of living in retirement, you will have to make up the difference through your own savings and investments. [The maximum Social Security benefit in 2011 for an individual at full retirement age (66) is $28,392.] And if you are married, it’s important to note that the age at which your spouse starts taking Social Security benefits can affect your long-term benefits. Most married men start claiming Social Security benefits at age 62 or 63, far short of the age that maximizes the value of the average household’s benefits. What results is a much lower long-term survivor benefit amount. If your husband postpones when he claims his benefit, you can significantly increase your long-term benefit. Sources: EBRI, 2007; Center for Retirement Research at Boston College, 2008.
Now that you know how much you’ll need to save and are considering how to take advantage of the tax-sheltered plans available to you, you should also be actively managing your retirement portfolio to help ensure it lasts over your lifetime. You can achieve this by: Diversifying to reduce risk, while optimizing your return. Rebalancing regularly so that you do not lose your target asset mix. Taking sustainable withdrawals – the rate at which you withdraw assets makes a huge difference in how much you end up with down the road.
Diversification is important. How you spread your money across different types of investments may help smooth the market’s ups and downs. Let’s take a look at how it works. Here, we see the performance of a $500,000 investment in ONLY stocks. This takes into account an annual withdrawal — $25,000 in the first year, which is adjusted for inflation in later years. As you can see, the investment grew over time, but it was a bumpy road.
In this illustration, the yellow line shows the performance of an investment in ONLY bonds, which are more conservative than stocks. A much smoother ride — but not a lot of growth.
Now let’s take a look at how a diversified portfolio would have performed (75% bonds/25% stocks). It has less volatility than an all-stock portfolio, and a much higher ending value than an all-bond portfolio. Markets are unpredictable, and over time, different types of investments outperform others. A portfolio that has too many eggs in one basket not only misses investment opportunities in certain areas, but also runs the risk of being overly concentrated in the wrong areas.
While stocks, bonds, and cash have performed consistently over decades, there is another important lesson to be learned from history: Markets are unpredictable in the short run. In any given year, it is impossible to predict which investments will lead markets, and which will lag. This chart ranks the winners and losers in each year, including value stocks, growth stocks, international stocks, and bonds. Each type of investment has its own color. The winners are on the top row, and the losers are on the bottom. Do we see a pattern? No, not really. That’s because there is no pattern. Over 20 years, there have been 16 changes in market leadership. Often, the top-performing investment one year falls into the lower half in the next year. Even though it’s impossible to predict which type of investment will be at the top or bottom from one year to the next, a diversified portfolio can provide more consistent returns.
This shows the indexes used to represent the asset classes on the preceding slides. U.S. Small Cap Growth stocks are represented by the Russell 2000 Growth Index. U.S. Large Cap Growth stocks are represented by the Russell 1000 Growth Index. U.S. Small Cap Value stocks are represented by the Russell 2000 Value Index. U.S. Large Cap Value stocks are represented by the Russell 1000 Value Index. International stocks are represented by the MSCI EAFE Index. U.S. bonds are represented by the Barclays Capital U.S. Aggregate Bond Index. Cash is represented by the Bank of America Merrill Lynch U.S. 3-Month Treasury Bill Index.
If you invested in a diversified portfolio of stocks and bonds more than one year ago, don’t assume that it is still diversified in the way you intended. Over time, changes in markets can have a pronounced impact on your portfolio, making it either more risky or more conservative than you intended. A portfolio that is not regularly rebalanced, as in this illustration, will drift with market performance and can become unbalanced over time, giving investors a very different allocation and possibly more risk.
If you invested in a diversified portfolio of stocks and bonds more than one year ago, don’t assume that it is still diversified in the way you intended. Over time, changes in markets can have a pronounced impact on your portfolio, making it either more risky or more conservative than you intended. A portfolio that is not regularly rebalanced, as in this illustration, will drift with market performance and can become unbalanced over time, giving investors a very different allocation and possibly more risk.
Now that we have an understanding of the benefits of investing with a diversified strategy, I would like to tell you about Putnam Asset Allocation Funds, which have pursued such a strategy since 1994. For over 15 years, Putnam has managed these funds with a consistent approach. Putnam’s Global Asset Allocation philosophy has four key components. Broad portfolio diversification across multiple asset classes In all market conditions, each fund invests in a variety of securities across global stock and bond markets, as well as cash investments. This allows each fund to participate in a greater number of investment opportunities and manage risk. Global investment perspective Today, every investment decision needs to be made in a global context. In managing these funds, the portfolio managers analyze global markets, sectors, and securities to understand the risks and opportunities. Active management and rebalancing are part of the disciplined process for managing the funds. The portfolio managers seek to keep the return potential and risk profile consistent over time by actively pursuing opportunities and regularly rebalancing each fund to keep allocations near their target weightings. The benefit of this process is that there is professional oversight that each fund has the appropriate long-term allocations to achieve its goals. Selection of individual securities The funds invest in individual stocks and bonds, not other funds, to make the most of Putnam’s security selection, while helping to reduce the potential for overlapping holdings.
These are the risks associated with the funds. Putnam Asset Allocation Funds can invest in international investments, which involve risks such as currency fluctuations, economic instability, and political developments. The funds invest some or all of their assets in small and/or midsize companies. Such investments increase the risk of greater price fluctuations. The use of derivatives involves special risks and may result in losses. The funds can also have a significant portion of their holdings in bonds. Mutual funds that invest in bonds are subject to certain risks including interest-rate risk, credit risk, and inflation risk. As interest rates rise, the prices of bonds fall. Long-term bonds have more exposure to interest-rate risk than short-term bonds. Lower-rated bonds may offer higher yields in return for more risk. Unlike bonds, bond funds have ongoing fees and expenses. Putnam Asset Allocation: Growth Portfolio, Balanced Portfolio, and Conservative Portfolio are series of Putnam Asset Allocation Funds, a registered investment company.
The pie charts of the three asset allocation funds show their investments across diverse asset classes. The strategic allocations of each fund address the distinct investment objectives of each fund — which one you choose depends on your life stage and tolerance for risk. Three of these funds — the Growth Portfolio, the Balanced Portfolio, and the Conservative Portfolio — have track records of over 15 years. The Growth Portfolio is structured with the goal of outperforming the U.S. stock market over time, but has a strategic allocation to bonds to reduce volatility. The Balanced Portfolio pursues total return with a classic 60/40 blend of stocks and bonds. The Conservative Portfolio places an emphasis on preserving investors’ capital and invests a majority of its assets in bonds
One of the important expectations to manage is how much you can withdraw from your portfolio if you want it to last. This idea is called “sustainable withdrawals.” This chart takes a balanced portfolio mix of 60% equities, 30% fixed income, and 10% cash, then shows how long it would have lasted at different withdrawal rates based on historical performance. What’s interesting is that, because we’re dealing in percentages, the dollar amount of your nest egg doesn’t matter. Whether you have $100 or $100,000, 50% is still half. The chart shows that if you take 10% out of your savings each year, you can expect your savings to last about 10 years. Based on this mix, savings at a 6% annual withdrawal rate, increased each year to keep up with inflation, will last around 16 years. If you want to plan for a retirement income stream that lasts more than 20 years, you’d need to consider withdrawing 5% per year or less. The moral of this story is that you should try to limit your annual withdrawals to allow your savings to last throughout your retirement.
Let’s talk about how to put the ideas we’ve reviewed today into actionable next steps. By taking the time today to learn more about saving for retirement and investment strategies that can help you prepare for a financially sound and satisfying future, you have already put yourself on the road to financial independence. To gain confidence and security about your retirement journey, be sure to understand and acknowledge the challenges you face and how they may impact your retirement. Think critically about your expenses today to help you develop an effective retirement plan that will help you achieve the income you’ll need later on. Key components you need to think about to help put your plan into action: How much will you need? Make an estimate of how much monthly or annual income you will need in retirement. What are your sources of retirement income? Think about what sources of retirement funds will be available and how much you will receive from each, including Social Security, employer retirement plans, and your own personal savings. How long will you live? In planning for retirement, it is important to consider how long you might live. What if your spouse dies first? If you are married, find out which benefits will continue if you or your spouse should die first. How will the cost of living change in the future? When you estimate your retirement income needs, remember to include the impact of inflation. How will you pay for health care? Consider how you will pay your medical bills. How will you manage your retirement money? Consider how you will manage your funds and what the right mix of investments is for your retirement needs. Investments include stocks, bonds, annuities, money market funds, your home, other real estate, and other savings.
Expect the unexpected. Unplanned illnesses, unanticipated expenses, or accidents can devastate your finances. Review and confirm that your insurance coverage is sufficient – life, health, homeowner’s, and auto. Have a plan to weather the storm of a change in career or income so you don’t have to dip into your retirement plan savings. Unfortunately, half of all marriages end in divorce and over 75% of women are eventually widowed. Thus, many who counted on dual incomes at retirement may have to scramble to make ends meet. Be prepared to manage your own finances. Have an estate plan – it is basically an exit strategy. It organizes your assets in such a way as to leave as much to your loved ones as possible. Estate taxes can be as high as 50% if your estate is valued at more than $1 million. If your estate is valued less than that, you can pass your assets to your loved ones without an estate tax. An estate planning attorney can help guide you through the complex laws regarding estate taxes. Other aspects of estate plans deal with the creation of legal documents such as a will, power of attorney, testamentary, letter, and more. Locate and review your financial papers (individual and joint accounts and policies) Confirm that beneficiary designations are accurate and make changes where necessary. Don’t limit your review to accounts, and check all deeds and titles to real property. This can help your heirs avoid the often costly and time-consuming probate process. Make time to re-review to ensure the paperwork stays current. Guarding yourself from hardship associated with life’s unexpected events is a key component of any well-built financial plan.
Stay invested and be engaged in the management of your money. Don’t defer financial decision-making to others, but rather seek out a financial advisor you can trust. He/she can help you develop a strategy that best suits your situation and can help you set up a plan to ensure your money is there for you in retirement – and most importantly – that it will last throughout your retirement journey. Thank you for joining me today.
Since 1937, when George Putnam created a diverse mix of stocks and bonds in a single, professionally managed portfolio, Putnam has championed the balanced approach. Today we offer investors a world of equity, fixed-income, multi-asset, and absolute-return portfolios to suit a range of financial goals. Our portfolio managers seek superior results over time, backed by original, fundamental research on a global scale. We believe in the value of experienced financial advice, in providing exemplary service, and in putting clients first in all we do.