7 savvy secrets_rev

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7 savvy secrets_rev

  1. 1. Registered Representative, Securities offered through Cambridge Investment Research Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and the Gaxiola Financial Group are not affiliated. Twitter Handle #TGF2012 This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS1 not be construed as specific tax, legal, financial planning or investment advice.
  2. 2. Nuveen Investments Wealth Management Services Women and Money: Seven Savvy SECRETS to Financial SuccessThis presentation is provided for informational and educational purposes only and should not beconstrued as specific tax, legal, financial planning or investment advice. © 2011 Nuveen Investments, Inc. For use with Financial Advisors and Clients in Consultation with their Financial Advisors
  3. 3. Agenda Four Generations of Growth and Change Seven Savvy SECRETS to Financial Success This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS3 not be construed as specific tax, legal, financial planning or investment advice.
  4. 4. Four Generations of Growth and Change Growing Up A woman’s attitude towards money is largely based on what society’s expectations were of women during her youth. This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS4 not be construed as specific tax, legal, financial planning or investment advice.
  5. 5. Four Generations of Growth and Change How Things Have Stayed The Same Prince Charming Myth When I grow up, I’m going to marry a rich man who will take care of me and I’ll live happily ever after. This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS5 not be construed as specific tax, legal, financial planning or investment advice.
  6. 6. Four Generations of Growth and Change How Things Have Stayed The Same Frog to Prince Ratio 50:1 This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS6 not be construed as specific tax, legal, financial planning or investment advice.
  7. 7. Seven Savvy SECRETS to Financial Success 1. Solid financial foundation 2. Employment benefits 3. Charitable giving 4. Retirement planning 5. Experienced financial counsel 6. Transition planning 7. Staying on track This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS7 not be construed as specific tax, legal, financial planning or investment advice.
  8. 8. Seven Savvy SECRETS to Financial Success 1. S is for Solid financial foundation Before anything else, preparation is the key to success. – Alexander Graham Bell This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS8 not be construed as specific tax, legal, financial planning or investment advice.
  9. 9. 1. Solid Financial Foundation Emergency Fund • How much do you need? • How should it be invested? • How should it be titled? This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS9 not be construed as specific tax, legal, financial planning or investment advice.
  10. 10. 1. Solid Financial Foundation Managing Credit • Remember Layaway? • Buy now/Pay forever • Managing Debt • Paying Off Debt ‒ Transferring Balances ‒ Payment Strategies This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS10 not be construed as specific tax, legal, financial planning or investment advice.
  11. 11. 1. Solid Financial Foundation Your FICO Score Matters • Why it matters • Monitoring your score This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS11 not be construed as specific tax, legal, financial planning or investment advice.
  12. 12. Seven Savvy SECRETS to Financial Success 1. S is for Solid financial foundation 2. E is for Employment benefits Not taking advantage of an employer’s match is like leaving money on the table This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS12 not be construed as specific tax, legal, financial planning or investment advice.
  13. 13. 2. Employment Benefits Traditional 401(k) • Pre-tax dollars • Contribution Limits • Catch-up Contributions • Employer Matching • Loans • Distributions • Taxation at Time of Distribution This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS13 not be construed as specific tax, legal, financial planning or investment advice.
  14. 14. 2. Employment Benefits Roth 401(k) • After-tax dollars • Contribution Limits • Catch-up Contributions • No Employer Matching • Loans • Distributions • Tax-free Growth This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS14 not be construed as specific tax, legal, financial planning or investment advice.
  15. 15. 2. Employment Benefits Conversion and Rollover Considerations • During employment • After termination of employment Taxation • Converting from Traditional 401(K) to Roth 401(K) • Rollover from traditional 401(K) to Traditional IRA • Rollover from traditional 401(K) to Roth IRA This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS15 not be construed as specific tax, legal, financial planning or investment advice.
  16. 16. 2. Employment Benefits Business Owners and Self Employed Qualified Plans • SEPs and SIMPLEs • Individual 401(k) • Other Nonqualified Plans This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS16 not be construed as specific tax, legal, financial planning or investment advice.
  17. 17. Seven Savvy SECRETS to Financial Success 1. S is for Solid financial foundation 2. E is for Employment benefits 3. C is for Charitable giving Many persons have a wrong idea of what constitutes true happiness. It is not attained through self-gratification but through fidelity to a worthy purpose. –Helen Keller This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS17 not be construed as specific tax, legal, financial planning or investment advice.
  18. 18. 3. Charitable Giving • Single women give more than single men1 • Married men and married women give more than single men2 • Women who participate in donor education programs are more likely to give3 • 70% of all CEOs and Officers of not-for-profit organizations are women4 Sources: 1The 2010 Study of High Net Worth Philanthropy, sponsored by Bank of America Merrill Lynch, researched and written by The Center on Philanthropy at Indiana University, November 2010. This study reflects the attitudes and behaviors of more than 800 respondents throughout the United States with household income greater than $200,000 and/or net worth (excluding the value of their residence) of at least $1,000,000. 2Giving USA, 2010 3“The Case for Better Philanthropy, The Future of Funding for Women and Girls” 4Women & Philanthropy, 2004, and Giving USA, 2006 This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS18 not be construed as specific tax, legal, financial planning or investment advice.
  19. 19. 3. Charitable Giving Ways to be Philanthropic Inside every woman is a potential major philanthropist waiting to emerge. –Joan M. Fisher, Philanthropist Simple Direct Support Donor-Advised Private Donations Organizations Funds Complex Foundations This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS19 not be construed as specific tax, legal, financial planning or investment advice.
  20. 20. 3. Charitable Giving Ways of Transferring Wealth 1. Pay As You Go 2. UGMA/UTMA Accounts 3. 529 Savings Plan 2/3 of grandparents say they want to help fund their grandchildren’s education This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS20 not be construed as specific tax, legal, financial planning or investment advice.
  21. 21. Seven Savvy SECRETS to Financial Success 1. S is for Solid financial foundation 2. E is for Employment benefits 3. C is for Charitable giving 4. R is for Retirement planning 57% of women over 65 are facing retirement alone. –Source: U.S. Census Bureau, Current population Survey, Annual Social and Economic Supplement, 2008, Internet release date: June 2009 This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS21 not be construed as specific tax, legal, financial planning or investment advice.
  22. 22. 4. Retirement Planning Today’s retirees are responsible for creating the majority of their retirement income On your own 44% 18% 63% 19% 19% Pension Social Secutity Earned Income Investments and other Source: Income of the Aged Chartbook, 2008, Social Security Administration. Chart of key sources of retirement income for households with annual incomes of $56,000 or more. This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS22 not be construed as specific tax, legal, financial planning or investment advice.
  23. 23. 4. Retirement Planning Today, individuals are inclined to work beyond age 65 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Plan to work in early retirment years 24% Plan to work throughout entire retirement 47% Plan not to work in retirment 16% Source: “MFS Retirement Survey Shows Income Planning Needed for Pre-Retirees,” MFS Investment Management, March 18, 2008 This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS23 not be construed as specific tax, legal, financial planning or investment advice.
  24. 24. 4. Retirement Planning Today, the retirement age reflects that we’re living longer Benefit Reduction Full Retirement Year of Birth1 Retire at Age 622 Age 663 1943-1954 25.00% – 1955 25.83% + 2 months 1956 26.67% + 4 months 1957 27.50% + 6 months 1958 28.36% + 8 months 1959 29.17% + 10 months 1.If you were born on January 1st, you should refer to the previous year. 2.Percentages are approximate due to rounding 3.If you were born on the 1st of the month, we figure the benefit as if your birthday was in the previous month. You must be at least 62 for the entire month to receive benefits. This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS24 not be construed as specific tax, legal, financial planning or investment advice.
  25. 25. 4. Retirement Planning Strategies for Maximizing Social Security “File and Suspend” • High earning spouse files for own benefit at FRA to make low earning spouse eligible for spousal benefit • High earning spouse immediately suspends own benefit to earn delayed credits until age 70 “Claim now, claim more later” • High earning spouse claims spousal benefit at age 66 • Low earning spouse filed for own benefit (at FRA) • High earning spouse switches to own benefit at age 70 Source: Horses Mouth, 5 Keys to Profitable Social Security Planning, Elaine Floyd, CFP® 12/9/2010 This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS25 not be construed as specific tax, legal, financial planning or investment advice.
  26. 26. 4. Retirement Planning The Medicare Part D Prescription Drug Coverage The Doughnut Hole* – The gap in coverage where the participant must pay 100% of the next $3,610 of prescription drug charges. This results in a total out of pocket expense on the first $6,440 in prescriptions of $4,550. After doughnut hole, coverage resumes with participant paying 5% (after $6,440 in prescriptions) $2,530 $3,610 $6,447.50 *Some coverage variability exists; this is a general description Source: College For Financial Planning This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS26 not be construed as specific tax, legal, financial planning or investment advice.
  27. 27. Seven Savvy SECRETS to Financial Success 1. S is for Solid financial foundation 2. E is for Employment benefits 3. C is for Charitable giving 4. R is for Retirement planning 5. E is for Experienced financial counsel The world is full of experts, but great communicators are always in short supply. –Nick Murray, The New Financial Advisor This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS27 not be construed as specific tax, legal, financial planning or investment advice.
  28. 28. 5. Experienced Financial Counsel What Advised Investors Say The "value I have received from my financial advisor was more 79% than worth the cost“ Their portfolio has done better over the past two years compared 62% with most people they know Advisor "did not explain the risks of the market as well 12% as he/she should have" Source: Envestnet, National surveys of 1,023 investors with $250,000 in assets or more and 504 financial advisors were conducted via the internet between April 14 and 30, 2010 for advisors and April 21 and 27 for investors by the national polling firm of Mathew Greenwald & Associates. This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS28 not be construed as specific tax, legal, financial planning or investment advice.
  29. 29. 5. Experienced Financial Counsel Integrated Wealth Management Tax Planning Family Governance Risk Management Legacy Planning Charitable Solutions Retirement Advice Liability Management Investment Guidance Neither Nuveen Investments Wealth Management Services nor its employees offer tax or legal advice. You must consult with your personal legal or tax advisor regarding your personal circumstances.. This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS29 not be construed as specific tax, legal, financial planning or investment advice.
  30. 30. 5. Experienced Financial Counsel Build a Relationship with your Financial Advisor • Keep them involved in your progress • Use them as a resource • Take part in review meetings This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS30 not be construed as specific tax, legal, financial planning or investment advice.
  31. 31. 5. Experienced Financial Counsel Know what there is and where to find it • Location of important financial documents and/or computer files • Telephone numbers of financial counselors – Financial Advisor – Accountant – Attorney • Debts and Assets – Dollar amount of your debts and assets – Retirement Assets – Debt repayment schedules • Insurance Coverage – Home owners – Life/Health/Disability/Long term care – Automobile This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS31 not be construed as specific tax, legal, financial planning or investment advice.
  32. 32. Seven Savvy SECRETS to Financial Success 1. S is for Solid financial foundation 2. E is for Employment benefits 3. C is for Charitable giving 4. R is for Retirement planning 5. E is for Experienced financial counsel 6. T is for Transition planning 90% of women will be the sole financial decision-maker at some point in their life. –Source: Center for Women’s Business Research 2006 This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS32 not be construed as specific tax, legal, financial planning or investment advice.
  33. 33. 6. Transition Planning Death of a Spouse • General Statistics • Sorting through and making changes to paperwork – Beneficiary – Checking, savings and brokerage accounts – Wills – Powers of Attorney • Health Insurance – COBRA – Individual coverage • Impact of changes to retirement planning – Retirement accounts – Life insurance proceeds – Change in financial goals – Long Term Care This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS33 not be construed as specific tax, legal, financial planning or investment advice.
  34. 34. 6. Transition Planning Divorce • Cash Flow Issues • Distribution of assets and liabilities • After the divorce is final – Sorting through and making changes to paperwork – Understanding impact of changes to retirement planning – Lifestyle changes – Wealth transfer This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS34 not be construed as specific tax, legal, financial planning or investment advice.
  35. 35. 6. Transition Planning Estates and Trusts • Estate Planning – Distribution of wealth after passing – Estate, gift, and generation-skipping transfer taxes – Estate tax exclusion amount – Titling of assets – Probate process – Planning for disability or incapacity • Trusts – Benefits and costs – Role in estate planning – Common types This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS35 not be construed as specific tax, legal, financial planning or investment advice.
  36. 36. 6. Transition Planning Specific Concerns for Female Creators of Wealth Wealth Transfer Strategies - Qualified Terminal Interest Property (QTIP) Available Exemption Amount Credit Shelter Beneficiaries Trust At the death of the second spouse Children of First QTIP Trust Marriage Balance Unlimited Martial Deduction This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS36 not be construed as specific tax, legal, financial planning or investment advice.
  37. 37. Seven Savvy SECRETS to Financial Success 1. S is for Solid financial foundation 2. E is for Employment benefits 3. C is for Charitable giving 4. R is for Retirement planning 5. E is for Experienced financial counsel 6. T is for Transition planning 7. S is for Stay on track Even if youre on the right track, youll get run over if you just sit there –Will Rogers This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS37 not be construed as specific tax, legal, financial planning or investment advice.
  38. 38. 7. Staying on Track Female College Enrollment Total Fall Enrollment in Degree-Granting Institutions 60% 56% 57% 54% 50% 40% 40% 29% 30% 20% 10% 0% 1947 1967 1987 1997 2008 Source: U.S. Department of Education, National Center for Education Statistics, Biennial Survey of Education in the United States; Opening Fall Enrollment in Higher Education, 1963 through 1965; Higher Education General Information Survey (HEGIS), "Fall Enrollment in Colleges and Universities" surveys, 1966 through 1985; and 1986 through 2008 Integrated Postsecondary Education Data System, "Fall Enrollment Survey" (IPEDS-EF:86-99), and Spring 2001 through Spring 2009. (This table was prepared September 2009.) This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS38 not be construed as specific tax, legal, financial planning or investment advice.
  39. 39. 7. Staying on Track Guarding Against Identity Theft • Checking Account Balance • What’s in your wallet? • Gel Pens • Secure Websites Handbag image This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS39 not be construed as specific tax, legal, financial planning or investment advice.
  40. 40. 7. Staying on Track What is a secure website? • HTTPS (Hyper Text Transfer Protocol Secure) is a secure version of the Hyper Text Transfer Protocol (http). • Secure means of transferring data where secure ecommerce transactions, such as online banking transactions and other financial transactions are involved. • https:// = Secure Site • Don’t forget to check for the “S” http/https image This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS40 not be construed as specific tax, legal, financial planning or investment advice.
  41. 41. 7. Staying on Track In 2009, 8 million firms were at least 50% owned by women Employing more than 23 million workers Generating nearly $3 trillion in revenues to the U.S. economy Source: Center for Women’s Business Research, “The Economic Impact of Women-Owned Businesses in the United States”, October 2009 This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS41 not be construed as specific tax, legal, financial planning or investment advice.
  42. 42. Seven Savvy SECRETS to Financial Success 1. Solid financial foundation 2. Employment benefits 3. Charitable giving 4. Retirement planning 5. Experienced financial counsel 6. Transition planning 7. Staying on track This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS42 not be construed as specific tax, legal, financial planning or investment advice.
  43. 43. Resources • Women & Money, Owning the Power to Control Your Destiny, Suze Orman, 2007 • Women Don’t Ask, Linda Babcock and Sara Laschever, 2007 • Reinventing Fundraising: Realizing the Potential of Women’s Philanthropy, Sondra C. Shaw and Martha A. Taylor, 1995 • Women’s Philanthropy Institute: http://www.philanthropy.iupui.edu/philanthropicservices/WPI/ • Pink Magazine: http://www.pinkmagazine.com The opinions expressed in these resources do not necessarily reflect the views of Nuveen Investments. Nuveen assumes no liability for the content of any resource provided, including, without limitation, the accuracy, subject matter, quality or timeliness of the content. The fact that such resources have been provided does not constitute an endorsement, authorization, sponsorship by or affiliation with Nuveen with respect to any resource provided or its sponsor. This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS43 not be construed as specific tax, legal, financial planning or investment advice.
  44. 44. Glossary of Terms 529 plan is a tax-advantaged investment vehicle in the United States designed to encourage saving for the future higher education expenses of a designated beneficiary. It is named after section 529 of the Internal Revenue Code. The detailed behavior of 529 plans is determined by state legislation, and while most plans allow investors from out of state, there can be significant state tax advantages and other benefits, such as matching grant and scholarship opportunities, protection from creditors and exemption from state financial aid calculations, for investors who invest in 529 plans within their state of residence. Donor-Advised Fund is a charitable giving vehicle set up under the tax umbrella of a public charity, which acts as sponsor to many Funds. Private Family Foundation has an endowment fund with which it invests and then uses the investment returns to fund public charities. If a private foundation does not invest in public charities then the private foundation may directly perform the function of a public charity by using the investment returns as the funding. Private Operating Foundation is any private foundation that spends at least 85% of its adjusted net income or its minimum investment return, whichever is less, directly for the active conduct of its exempt activities. Certain private foundations that provide long-term care facilities are treated as operating foundations only for the purposes of the excise tax on failure to distribute income. A Qualified Terminal Interest Property Trust or “QTIP” is an irrevocable trust that is created at the death of the grantor, often in conjunction with a Credit Shelter Trust. It can be drafted to preclude the surviving spouse from appointing the remainder to a second spouse or children from a second marriage. Roth 401(K) is a type of employer-sponsored retirement plan that allows a worker to save for retirement on a post-tax elective deferral basis. Supporting organization is a public charity created by the U.S. Internal Revenue Code in 26 USCA 509(a)(3). A supporting organization either makes grants to, or performs the operations of, a public charity similar to a private foundation. Traditional 401(K) is a type of employer-sponsored retirement plan that allows a worker to save for retirement while deferring income taxes on the saved money and earnings until withdrawal. All assets in 401(k) plans are tax deferred. UGMA/UTMA state laws that allow any adult to contribute to a custodian account in a minor childs name without having to name a legal guardian or establish a trust. This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS44 not be construed as specific tax, legal, financial planning or investment advice.
  45. 45. Important Disclosures For use by financial advisors and clients in consultation with their financial advisors. Clients should consult their financial advisors regarding any unknown terms and concepts. Financial advisors should consider the suitability of the manager, strategy and program for its clients on an initial and ongoing basis. This presentation is provided for educational and informational purposes only, and should not be construed as specific tax, legal, financial planning or investment advice. The statements contained herein are the opinions of Nuveen Investments Wealth Management Services. All opinions and views constitute our judgments as of the date of writing and are subject to change at any time without notice. Please note that this information should not replace a client’s consultation with a professional advisor regarding their tax situation. Nuveen is not a tax advisor. Clients should consult their professional advisors before making any tax or investment decisions. This presentation should not be regarded by recipients as a substitute for the exercise of their own judgment. This presentation contains numerous assumptions. Different assumptions could result in materially different results. Neither Nuveen Investments nor any of its affiliates, directors, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of this presentation. Certain information was obtained from third party sources, which we believe to be reliable but not guaranteed. All investments carry a certain degree of risk, including possible loss of principal, and there is no assurance than an investment will provide positive performance over any period of time. Past performance is no guarantee of future results. This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS45 not be construed as specific tax, legal, financial planning or investment advice.
  46. 46. Nuveen Investments Wealth Management ServicesWomen and Money:Seven Savvy SECRETS to Financial Success This presentation is provided for informational and educational purposes only and should not be construed as specific tax, legal, financial planning or investment advice. 06/11 For use with Financial Advisors and Clients in Consultation with their Financial Advisors
  47. 47. Registered Representative, Securities offered through Cambridge Investment Research Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and the Gaxiola Financial Group are not affiliated. Twitter Handle #TGF2012 This presentation is provided for informational and educational purposes only and should NUVEEN INVESTMENTS47 not be construed as specific tax, legal, financial planning or investment advice.

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