Women and Investing - Equitable

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Women and Investing5 Strategies to Help You Take Control

Variable Annuities: • Are Not a Deposit of Any Bank • Are Not FDIC Insured • Are Not Insured by Any Federal Government Agency • Are Not Guaranteed by Any Bank or Savings Association • May Go Down in Value

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Equitable Financial Life Insurance Company (NY ,NY)

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2Women and Investing

Enduring strength

Courage

Strength

Wisdom

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Agenda

1 2 3

Women as investors 5 Strategies to help youtake control

Be empowered – Take action!

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Women’s earning power and college graduation rates are at all-time highs

• Women control 32% of the world’s wealth, and are likely to see their wealth

reach $93 trillion by 20231

• Women now earn the majority of four-year degrees2

• Women earn 58% of master’s degrees and 53% of doctorates2

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1 Boston Consulting Group, April 20202 Annual Report on US Graduate School Enrollment and Degrees. The Council of Graduate Schools, October 2019

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• 51.5% of all management and professional roles

are held by women1

• 37% of wives earn more than their husbands2

• Women own 13 million businesses in the U.S.,

earning over $1.9 trillion in revenues3

Women’s position in the workforce and earning power are at all-time highs

1 Statistical Overview of Women in the Workplace, Catalyst, August 2018. www.catalyst.org2 Wives who earn more than their husbands 1987–2014, U.S. Bureau of Labor Statistics, 2015. 3 The State of Women-Owned Businesses, American Express, 2019.

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Women earn less moneythan men over their lifetime, reducing their ability to save

• Based on today’s wage gap, women would lose $460,000 over the course of a 40-year career1

• Only 62% of women have a plan to help protect themselves against outliving their savings2

• 56% of married women leave investment decisions to their husbands3

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Unique challenges for women

1 The Lifetime Wage Gap, State by State, National Women’s Law Center, March 2019.2 Nationwide Advisory Solutions Study, 20193 UBS Proprietary Research, 2018

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Unique challenges for women

• The divorce rate among 50-somethings has more than doubled since 19901

• The average U.S. woman becomes widowed at age 592

• Women spend more on healthcare than men over their lifetimes3

• Women are expected to live 81.2 years from birth, outliving their male counterparts by nearly 5 years4

1 Pew Research Center, March 20172 U.S. Census Bureau Data, July 10, 20143 Centers for Disease Control and Prevention, Mortality in the United States 2012, 2013 4 World Health Organization, February 2017

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Knowledge is power

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Presentation title here – month 00, 000

5 Strategies to help you take control

Time & money

Value from variety

Keep as much as you can

Seeking stability

12345

Women and Investing

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Knowledge is power


STRATEGY

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STRATEGY 1: Knowledge is power

Value of knowledgeImpact of guidance


• Women who use a financial professional are twice as likely to feel on track with their retirement planning

• Feel more confident and more willing to take risks• Save and invest more• Use multiple financial tools

(DC Plan, IRA’s, Mutual Funds, Stocks/Bonds, Annuities)

1 Prudential Study; Financial Experience and Behaviors Among Women, 2014 -2015

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As a means of increasing your peace of mind• Find a financial professional who can give you a

holistic view of assets• Approach the conversation from the position of

“comfort” (i.e., this is for my loved ones)• Determine which product is right based on your

stage in life

STRATEGY 1: Knowledge is power

Protect what mattersLife Insurance and Long-Term Care…have you thought it through?


Many times people avoid thinking of Life Insurance and Long-Term Care as part of their Financial Plan• Brings about negative emotions• They are covered by their employer• Would rather use the disposable

income for current expenses

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Time & moneyTaking control


STRATEGY

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STRATEGY 2: Time & money

Why not today?Compounding


Chart assumes 7% rate of return for illustrative purposes. These figures are not intended to indicate the performance of any specific investments. Taxes and fees were not taken into consideration. Rates of return will vary over time, particularly for long-term investments. Investments offering the potential for higher rates of return also involve a higher degree of risk.

Age Years

Until 65Monthly

ContributionTotal

Contribution Earnings Total Value

25 40 $189 $90,905 $409,095 $500,000

30 35 $276 $115,920 $384,070 $500,000

35 30 $407 $146,689 $353,311 $500,000

40 25 $614 $184,090 $315,905 $500,000

45 20 $954 $229,023 $270,977 $500,000

50 15 $1,569 $282,229 $217,701 $500,000

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But it’s not too late…


Think positive• Your mortgage may be closer to being paid off• You are in your top earning years• You have a better understanding of retirement income needsCatch-up contributions for age 50+Consolidate retirement accounts for easy management

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Don’t be afraid of creating a budget…

15Informed Women Know More

• Creating a budget isn’t about limitations• Understanding cash flow creates options

& opportunities• Consider rising healthcare costs• Leave a cushion

Annual expenses to address during retirementHousing Mortgage, Rent

UtilitiesInsuranceMaintenanceOther

$____________$____________$____________$____________$____________

Food GroceriesDining OutOther

$____________$____________$____________

Transportation Monthly PaymentsInsuranceFuel & MaintenanceOther

$____________$____________$____________$____________$____________

Healthcare & Insurance

Insurance (Health, Life, Long-Term Care, Disability)Co-Pays & Services Not Covered by InsuranceDrugs & Medical SuppliesNursing HomeOther

$____________$____________$____________$____________$____________$____________

Personal Care ClothingProducts & ServicesOther

$____________$____________$____________

Taxes Income TaxesProperty TaxesVehicle Taxes

$____________$____________$____________

Discretionary GiftsCharitable ContributionsEntertainmentRecreation/TravelHobbiesEducationFamily CareOther

$____________$____________$____________$____________$____________$____________$____________$____________

Total of retirement expenses $ ______________

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Value from varietyInvestments


STRATEGY

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Source: J.P. Morgan Market Insights U.S. Q2 2020

STRATEGY 3: Investments

Stock market since 1900After every decline the market historically bounces back, up over 200% since 2009


S&P Composite IndexLog scale, annual

1

10

100

1,000

1900 1909 1918 1927 1936 1945 1955 1964 1973 1982 1991 2000 2010 2019

Recessions

Tech boom(1997-2000)

End of Cold War

(1991)

Reagan era(1981-1989)

Post-Warboom

New Deal(1933-1940)

Roaring 20s

Progressive era (1890-1920)

World War I(1914-1918) Great

Depression(1929-1939)

World War II(1939-1945)

Korean War(1950-1953)

Vietnam War(1969-1972)Oil shocks

(1973 & 1979)

Stagflation (1973-1975)

Global financial crisis (2008)

BlackMonday(1987)

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10.19%

8.63%

7.58%

6.64%5.79%

4.99% 4.22%

Fully invested Missed 10 best days Missed 20 best days Missed 30 best days Missed 40 best days Missed 50 best days Missed 60 best days

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Impact of staying in the market

Source: J.P. Morgan Asset Management analysis using data from Bloomberg.

Trying to time the market is extremely difficult. Market lows often result in emotional decision-making. Investing for the long term while managing volatility can result in a better retirement outcome.

Women and Investing

7 of the best 10 days occurred within 2 weeks of the 10 worst dayso The best day of 1997 – October 28 –

was only 1 day after the worst day –October 27

o The best day of 2011 – August 9 –was only 1 day after the worst day –August 8

Return of the S&P 500®

Performance of a $10,000 investment between January 2, 1969 and December 31, 2019

$1,410,981

$680,410

$414,513

$265,002$176,330

$119,638 $82,502


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The goals of diversification

• Spread your investment

• Balance risk

• Avoid overlap

• Add asset classes

• Regular reviews



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Keep as much as you canTax & estate planning strategies


STRATEGY

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Tax deferralA robust tax-deferred growth opportunity

Women and Investing

The Power of Tax Deferral (Growth over 20 Years)

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$100,000

$288,474

$466,096

Initialinvestment

Withouttax deferral

With tax deferral,before withdrawal

The Chart below is a hypothetical illustration of the potential advantages of tax-deferred over taxable investments over time. The illustration assumes an annual return of 8% (not guaranteed) and federal a tax rate of 32%

This hypothetical chart does not represent actual performance of any specific product or investment. Withdrawals of tax-deferred earnings are subject to ordinary income tax treatment. A 10% federal tax may also apply if you take the withdrawal before you reach age 59½. Dividends and sales profits on annually taxed investments are generally taxed at capital gains tax rates, which can be lower than ordinary federal income tax rates. Using capital gains tax rates with the taxed-annually investment would reduce the difference between the taxed-annually and tax-deferred accounts shown above. Consider your personal investment horizon and income tax bracket, both current and anticipated, when making an investment decision. These factors, as well as changes in tax rates and the treatment of investment earnings, may further affect the results of this comparison. Actual results will vary. Rates of return will vary over time, particularly for long term investments. Investments offering the potential for higher rates of return also involve a higher degree of risk. Assumes a lump-sum withdrawal or distribution.

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STRATEGY 4: Tax planning

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STRATEGY 4: Estate planning


• Wills• Durable Power of Attorney• Patient Advocate - Medical Directive• Revocable Trusts• Designating Beneficiaries is essential

— Keep records up to date— Review periodically

Foundations of Estate Planning

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Share your love… Helps to provide confidence that your

assets will be distributed according to your wishes

Promotes honest and productive conversations with your loved ones about your wishes

Reassures your loved ones that they know your wishes and can help to carry them out

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STRATEGY 4: Estate planning

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Seeking stabilityRetirement income planning


STRATEGY

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STRATEGY 5: Retirement income planning

• Inflation• Sustainable

withdrawal rates• Sequence of returns• Creating sustainable,

consistent income

Investment ChallengesIn distribution

Important note: Projections generated by Morningstar regarding the likelihood of various investment outcomes using the Ibbotson® Wealth Forecasting Engine are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary over time and with each simulation. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. © 2017 Morningstar. All rights reserved. 3/31/2017.

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Investor A Investor B

Initial amount invested $250,000 $250,000

Withdrawal amount @ 3% inflation $12,500 $12,500

Average return: A and B

+6.6% +6.6%

Average market return: Years 1-3

-10.87% +16.83%

Average market return:Years 28-30

Portfolio exhausted by 18 years

-10.87%

Result: How long $ lasted 18 years 30 Years

Result: $ amount left $0 $632,606.11

SusSustainable withdrawal rates

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This example is a hypothetical intended for illustrative purposes only and is not indicative of the actual performance of any particular product. These figures are are not intended to represent the performance of any specific investment, insurance contract, or other financial product. This example does not take into account the impact of any fees or taxes.

Age Annual Return

Year End Value Age Annual

ReturnYear End Value Age Annual

ReturnYear End Value Age Annual

ReturnYear End Value

65 $1,000,000 78 -15% $3,265,247 65 $1,000,000 78 -15% $1,116,291

66 5% $1,050,000 79 5% $3,428,510 66 -25% $750,000 79 -26% $826,056 67 28% $1,344,000 80 14% $3,908,501 67 -14% $645,000 80 22% $1,007,788 68 22% $1,639,680 81 24% $4,846,541 68 -10% $580,000 81 23% $1,239,579 69 -5% $1,557,696 82 14% $5,525,057 69 16% $673,380 82 16% $1,437,912 70 20% $1,869,235 83 8% $5,967,062 70 21% $814,790 83 9% $1,567,324 71 19% $2,224,390 84 -16% $5,012,332 71 5% $855,529 84 23% $1,927,808 72 23% $2,736,000 85 5% $5,262,949 72 -16% $718,645 85 19% $2,294,092 73 9% $2,982,240 86 21% $6,368,168 73 8% $776,136 86 20% $2,752,910 74 16% $3,459,398 87 16% $7,387,075 74 14% $884,795 87 -5% $2,615,264 75 23% $4,255,059 88 -10% $6,648,367 75 24% $1,097,146 88 22% $3,190,623 76 22% $5,191,172 89 -14% $5,717,596 76 14% $1,250,747 89 28% $4,083,997 77 -26% $3,841,468 90 -25% $4,288,197 77 5% $1,313,284 90 5% $4,288,197 Ave. Return 6.00% 6.00%

“Up” Market — Mrs. Green “Down” Market — Mrs. Blue


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Age 5% Annual Withdrawals

Annual Return

Year End Value Age 5% Annual

WithdrawalsAnnual Return





Year End Value

65 $1,000,000 78 $50,000 -15% $3,265,247 65 $1,000,000 78 $50,000 -15% $1,116,291

66 $50,000 5% $1,050,000 79 $50,000 5% $3,428,510 66 $50,000 -25% $750,000 79 $50,000 -26% $826,056

67 $50,000 28% $1,344,000 80 $50,000 14% $3,908,501 67 $50,000 -14% $645,000 80 $50,000 22% $1,007,788

68 $50,000 22% $1,639,680 81 $50,000 24% $4,846,541 68 $50,000 -10% $580,000 81 $50,000 23% $1,239,579

69 $50,000 -5% $1,557,696 82 $50,000 14% $5,525,057 69 $50,000 16% $673,380 82 $49,291 16% $1,437,912

70 $50,000 20% $1,869,235 83 $50,000 8% $5,967,062 70 $50,000 21% $814,790 83 $0 9% $1,567,324

71 $50,000 19% $2,224,390 84 $50,000 -16% $5,012,332 71 $50,000 5% $855,529 84 $0 23% $1,927,808

72 $50,000 23% $2,736,000 85 $50,000 5% $5,262,949 72 $50,000 -16% $718,645 85 $0 19% $2,294,092

73 $50,000 9% $2,982,240 86 $50,000 21% $6,368,168 73 $50,000 8% $776,136 86 $0 20% $2,752,910

74 $50,000 16% $3,459,398 87 $50,000 16% $7,387,075 74 $50,000 14% $884,795 87 $0 -5% $2,615,264

75 $50,000 23% $4,255,059 88 $50,000 -10% $6,648,367 75 $50,000 24% $1,097,146 88 $0 22% $3,190,623

76 $50,000 22% $5,191,172 89 $50,000 -14% $5,717,596 76 $50,000 14% $1,250,747 89 $0 28% $4,083,997

77 $50,000 -26% $3,841,468 90 $50,000 -25% $4,288,197 77 $50,000 5% $1,313,284 90 $0 5% $4,288,197

Ave. Return 6.00% 6.00%

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This example is a hypothetical intended for illustrative purposes only and is not indicative of the actual performance of any particular product. These figures are are not intended to represent the performance of any specific investment, insurance contract, or other financial product. This example does not take into account the impact of any fees or taxes.


Women and Investing

“Up” Market — Mrs. Green “Down” Market — Mrs. Blue

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Creating an income plan


• Understand how expenses change in retirement

• Review all sources of retirement income

• Non-discretionary expenses should be covered by guaranteed income

• Proactive Social Security strategies

• Annuities could meet multiple goals:— Guaranteed income for life* potential— Market participation— Asset protection— Death benefit options

*Guarantees within an annuity are based upon the claims-paying ability of the issuing company.

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Spousal benefits

Social Security benefits

Divorcee benefits Survivor benefitso A spouse can get 50% of

primary worker’s benefits

o A spouse will get the higher of their own benefit or the spousal benefit- ‘Deemed Filing’

o Primary earner must be collecting to have spouse be eligible

o Suspension of benefits eliminates spousal option

o Former spouses – If age 62 or older, a divorcee may qualify for benefits on a former spouse’s record under certain conditions

o A surviving divorced spouse could get the same benefits as a widow (survivors benefits) provided that the marriage lasted 10 years or more and the individual remains unmarried

o A surviving spouse will receive the higher of the either their own benefit or their deceased spouse’s benefit

o The surviving spouse must be at least 60 years old and must be married for at least 9 months prior to spouse’s death

o Not a ‘deemed filing’ - Surviving spouse still has the option to collect survivor benefit and then ‘switch’ to their own retirement benefit to take advantage of ‘Delayed retirement credits’


*All benefits are subject to the retirement earnings test limits if claimed prior to full retirement age

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What can a variable annuity offer…


• Investment opportunity• Potential of guaranteed stream of lifetime

income• Guaranteed death benefit• Tax deferral

For a prospectus, which contains more complete information including investment objectives, risks, charges, and expenses, please contact your financial professional. Please read the prospectus carefully before you invest or send any money.

Schedule an appointment to speak to your financial professional about putting these strategies in place!

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Be EmpoweredTake action!


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Next steps


Estate planning• Calculate your net worth• Review titling of assets• Designate beneficiaries• Complete a “Share Your Love Family Discussion

Guide”Investing • Consider tax-deferred retirement accounts• Consider investments that match your risk

tolerance with your return expectations• Understand investment challenges in retirement

Retirement income planning• Review proactive Social Security

strategies• Consider the value of guaranteed

income over the long term• Consider the use of annuities or

other tax deferred investment accounts to defer income taxes

Start today! Work with a financial professional you trust and one who understands you

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Thank you.


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Important informationAn annuity is a long-term financial product designed for retirement purposes. There are fees and charges associated with an annuity contract, which include, but are not limited to, operations charges, sales and withdrawal charges, administrative fees, and additional charges for optional benefits. Withdrawals are subject to ordinary income tax treatment and, if taken prior to age 591/2, may be subject to an additional 10% federal income tax penalty. Variable annuities are subject to investment risks, including the possible loss of principal invested.

Variable annuities are sold by prospectus only, which contains more complete information about the policy, including risks, charges, expenses and investment objectives. You should review the prospectus carefully before you invest or send any money. Contact your Financial Professional for a copy of the current prospectus.

Please be advised that this document is not intended as legal or tax advice. Accordingly, any information provided in this document is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. The tax information was written to support the promotion or marketing of the transaction(s) or matter(s) addressed and you should seek advice based on your particular circumstances from an independent tax advisor. Equitable Financial Life Insurance Company, its distributors and their respective representatives do not provide tax, accounting or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state or local tax penalties.

Variable annuities and life insurance are issued by Equitable Financial Life Insurance Company (Equitable Financial) (NY, NY); life insurance is issued outside of New York by Equitable Financial Life Insurance Company of America (Equitable America) (AZ stock company, main administrative office; Jersey City, NY). Co-distributors are Equitable Advisors, LLC, (member FINRA, SIPC) (Equitable Financial Advisors in MI & TN) and Equitable Distributors, LLC. The obligations of Equitable Financial and Equitable America are backed solely by their own claims paying ability.

Equitable is the brand name of the retirement and protection subsidiaries of Equitable Holdings, Inc., including Equitable Financial Life Insurance Company (NY, NY); Equitable Financial Life Insurance Company of America, an AZ stock company with main administrative headquarters in Jersey City, NJ; and Equitable Distributors, LLC. Equitable Advisors is the brand name of Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI & TN).

© 2020 Equitable Holdings, Inc. All rights reserved.

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