Women Invest In Yourself!

Ray Castaldi

President: Castaldi Financial Solutions

Invest In Yourself

Women and investing workshop

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Welcome to Invest in Yourself

Our Goals

To encourage you to share your insight with others as it relates to your financial well-beingTo encourage you to share your insight with others as it relates to your financial well-being

To help you learn from some real-life scenarios women faceTo help you learn from some real-life scenarios women face

To provide actionable ideas to help you establish & maintain your own financial securityTo provide actionable ideas to help you establish & maintain your own financial security

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Women’s Unique Challenges and Opportunities

When Compared to Men, Women:

Earn less

Work fewer years

Live longer

But Also

Women seem to be better at investing¹

1 out of 3 wives earns more than her husband²

Women are more likely than men to participate in a retirement plan³

¹ Kiplinger.com, December 2006. ² Redbookmag.com, March 2005. ³ Employee Benefit Research Institute, November 2005.

Good News … Bad News

Introduction

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So, What Can We Learn From Each Other?

Group 1: What is the best financial decision you ever made?

Group 2: What’s a financial decision you regret, and what did you learn?

Group 3: What is your earliest memory of money and how has that helped or hindered you?

Group 4: What are the two biggest financial challenges you’re facing—and who can help you?

Group 5: What piece of advice do you have for women who are new investors or new to the workplace?

Every Woman Has Things She Can Learn, and Things She Can Teach, About Personal Finances

Introduction

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The Facts of the Matter

Group 1: 25% of women ages 21-34 live paycheck to paycheck

Group 2: Widowed women view themselves as not having the same level of “financial knowledge and confidence” than younger women

Group 3: Most women will receive one inheritance in the next 20 to 30 years

Group 4: Within a year after having a child, most mothers do not return to work and those that do have jobs with fewer hours and lower pay

Group 5: Women save for retirement first, their children’s college second

FALSENearly half of women 21-34 live paycheck to paycheck

FALSENearly half of women 21-34 live paycheck to paycheck

FALSEWidows give themselves an “8” or better on a scale of 1-10 in a study on financial knowledge

FALSEWidows give themselves an “8” or better on a scale of 1-10 in a study on financial knowledge

FALSEMost women receive two inheritances:

One from their parents and one from their spouse

FALSEMost women receive two inheritances:

One from their parents and one from their spouseFALSE

83% of mothers return to work, to the same employer for the same pay/skill level

FALSE83% of mothers return to work,

to the same employer for the same pay/skill levelFALSEWomen typically put saving for

kids’ college ahead of saving for retirement

FALSEWomen typically put saving for

kids’ college ahead of saving for retirement

Are any answers surprising to you?Are any answers surprising to you?

Making Progress

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Common Financial Events

Saving for college

Birth of a child

Getting married

Buying a home

Caring for children/parents

Starting a business

Relocating

Dealing with unexpected changes

Childcare/daycare

Divorce

Inheritance

New job

Promotion

Living alone

Working part time vs. full time

Now for some real-life scenarios…

Making Progress

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Allison Keyes, 28

What are some ways Allison can pay down her debt, and what other things should she consider as a single person?

Group Discussion

I’ve worked hard, and I finally have a good job. My next goal is to buy a condo, but … should I reduce my debt first? I’m not sure what will have the most impact and benefit me more in the long run. Should I pay off more on my car, eliminate some credit card debt, or start paying down some of my student loans?

“”

Financial strategies

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Allison’s Story

Debt management 47% of single women, ages 21 to 34, carry unpaid

credit card balances averaging about $2,000¹

Invest for retirement It’s never too early to begin contributions to an

employer’s 401(k) plan―and starting early is the key!

Disability insurance If you’re single, or are the primary breadwinner, or

have your own business, consider disability insurance

Saving for emergencies Having a cushion—money put aside that can be easily

accessed—can help ease the panic in a crisis situation

¹ The Smith College Program in Financial Education, 2006.

Key Points For Allison to Consider


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Allison’s Story

Item Interest Rate Years

Car 6.58% 5

Student loans 6.00%1 10

Credit cards (rewards program) 19.00% 302

Savings <1.00%

Paying Off Debt Is a Positive

1 Stafford loan in 2008-09 2 www.indexcreditcards.com 10/3/08; www.seekingalpha.com 9/3/08


What would you tell Allison to do?

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Allison’s Story

1) Set up an emergency fund

2) Check your credit score for free once a year Experian: www.experian.com 1-888-397-3742 Equifax: www.equifax.com 1-800-685-1111

3) Create a budget aimed at paying off debt Renegotiate a lower interest rate with your creditors

and consolidate balances where possible. Use credit wisely. Money not spent on credit card payments could go to: Investing more to your 401(k) each month Building up your emergency fund

Action Steps


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Sue Robinson, 34

What are some factors Sue should consider?

Group Discussion


When we found out we were having a baby, we were so excited. Now that it’s getting closer, we don’t know what to do first. I’m not sure if I’ll want to extend my maternity leave, work part-time, or stay at home. Should we look for a bigger home, start saving for college, or get life insurance?

“”

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Sue’s Story

Life insurance A good rule of thumb for a policy is 6-8x your salary

Flexible work arrangements Working from home, telecommuting, or job sharing.

A recent survey showed that 85% of recruiters have had candidates turn down a job because it lacked work/life balance¹

Increase savings Bump up savings in case you pause in your work career


Key Points For Sue to Consider

What other advice would you offer Sue?1 Association of Executive Search Consultants, 2007

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Sue’s Story

1) Check out your employer’s life insurance policies and determine if you need more coverage or additional policies. Find out about your company’s policy on working part-time or from home or job sharing

2) Ask about your company’s policy on working part-time or from home or job sharing. Read more at “Workplace Flexibility 2010”

¹

3) If you stay home, still contribute to a retirement account

4) Complete a beneficiary review and update your will to add children

5) Consider naming a guardian for your child


Action Steps

¹ http://www.law.georgetown.edu/workplaceflexibility2010

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Andrea Caponi, 45

What advice would you give Andrea?

Group Discussion


I married my college boyfriend at 25 and worked for a few years before we started our family. When the youngest started school six years ago, I began volunteering in the public schools and at our local hospital. Fast forward to now, and my husband and I are in the midst of a divorce. I have the three kids with me most of the time, the oldest of which will start college in the Fall. Financially, it’s been a huge adjustment, and I need to go back to work. I’ve been out of the workforce for 17 years now and don’t know where to start.

“”

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Andrea’s Story

Analyze tax consequences of asset division Owning the family house may sacrifice the

share of pension and retirement assets

Educate self on family finances Review bank statements, tax returns, paystubs,

cancelled checks and determine a household budget

Consider an “interim” job An interim, not-quite-perfect job can assist

with bills and the need for benefits


Key Points For Andrea to Consider

What other advice would you offer Andrea?

“A woman’s economic lifestyle drops by 27% in the first year after a divorce”¹

¹ Leslie Bennetts, The Feminine Mistake, 2007

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Andrea’s Story

1) Update beneficiaries, wills, and other documents and records

2) Know where you stand financially to understand where the money goes

3) For resources: Visit www.irelaunch.com or Read “Career Track: A Guide for Stay-At-Home

Moms Who Want to Return to Work” byCarol Fishman Cohen and Vivian Steir Rabin

4) Consider freelancing or part-time projects or take catch-up courses to brush up on trends


Action Steps

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Andrea’s Story

5) Create a resume using resume creation software available online or at any library Should focus on skills and abilities,

not just chronological work history A volunteer position at the hospital could mean:

Chairwoman of the fundraising committee that raised $2 million dollars in new funds, a 21% increase

Learned how to deal with stressful situations and streamlined forms process as emergency room volunteer

Created, funded and launched a children’s story hour for patients in extended care

Many, if not all, skills learned are transferable!


Action Steps, continued

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Has anyone here experienced something similar?

Jenny Wong, 55

Group Discussion


My mother was diagnosed with Alzheimer’s two years ago. Recently, she’s had a couple of accidents in her home, so she’s moving in with us—me, my husband, and my two teenagers still at home. She’s still with it much of the time, but her information is in complete disarray. I can barely keep up with her prescriptions and medical appointments. She’s nervous about her money, not sure how much or where it all is. I’m considering leaving my job to care for my mother full time. I’m worried that my mother may have to go to a nursing home.

“”

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Jenny’s Story

Long-Term Care (LTC) Insurance An insurance policy that provides benefits to

the chronically ill or disabled over a long period of time; appropriate for those 50 or older and reasonably healthy

Adult daycare resources www.seniorresource.com offers information

to impaired seniors and their caregivers


¹ Source: John Hancock Financial Services, 2005

Key Points For Jenny to Consider

“Of the people who reach age 65, 60% may need long-term care at some point during their life”¹

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Jenny’s Story

1) Look into long term care insurance for you and your partner, pending age/health and other eligibility requirements

2) Complete a financial checklist—including Power of Attorney options—while your mother is still cognizant

3) Recommend meeting with an independent financial professional—ensuring Jenny’s mom that her assets are protected

4) Create a will or estate plan

5) Check pension and/or vesting requirements before leaving your job


¹ Source: John Hancock Financial Services, 2005

Action Steps

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Ellen Anderson, 72

What advice would you offer Ellen?

Group Discussion


I was a teacher in the public schools for 40 years before retiring with a pension. I was married to my high school sweetheart at 21, and he passed this year, just after we’d celebrated our 50th anniversary. I have my pension as well as my late husband Don’s Social Security, and some stocks and mutual funds. But I worry that it won’t be enough. I’m concerned about the rising price of prescription medications, as well as how long I’ll be able to live on my own for, without assistance. My children are grown, and don’t live nearby, but I’d like to leave a legacy for my three grandchildren, however small it may be.

“

”

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Ellen’s Story

Estate planning Not just for “after death,” estate planning touches

on wills, trusts, annual gifting, creating and updating beneficiaries, naming an executor and establishing Power of Attorney

Leave a legacy More than 40% of grandparents currently

spend $2,000+ annually on their grandchildren and 65% plan to contribute to their grandchildren’s college education¹


¹ The Hartford, 2008

Key Points For Ellen to Consider

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Ellen’s Story

1) Create a will and estate plan

2) Assess IRA options to avoid spousal continuation mistakes

3) Establish a Roth IRA for grandchildren with taxable income―set the next generation on the right track to retirement

4) Seek professional advice―there’s never a wrong time to get expert help


Action Steps

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What Did We Learn From These Women?


Be prepared for emergencies

Insure for the unexpected

Reduce debt

Create a will and an estate plan

Contribute the max to retirement plans

Invest for the long term

Consolidate accounts for convenience

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The Right FinancialProfessional Can Help

Financial Consultants can help with investments, retirement and estate planning

Insurance Planners give advice for protecting against unexpected occurrences

Accountants can offer knowledge of tax issues, and in some cases, investments and estate planning

Lawyers provide advice on wills, trusts, all level of estate and probate services, as well as some complicated financial transactions

Wrapping Up

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So, What Did We Learn From Each Other?

Learn from past mistakes and others’ knowledge

Talk to women you work with and who work for you, in your classes, on your sports teams, and in your groups and organizations

Extending your network and sharing your story are mutually beneficial activities

Checked named beneficiaries

Consolidate accounts for ease and convenience

Keep asking, learning and sharing

Wrapping Up

Help Others Take Action and Succeed

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Resources

10 Proven Strategies guide from John Hancock

“Make Money Not Excuses” by Jean Chatzsky

First women-focused site, www.wife.org(Women’s Institute for Financial Education)

For boomers, www.aarp.org, www.eons.com, www.boomertown.com

For life, work and financial issues, www.pinkmagazine.com

Talk with your financial adviser

Wrapping Up

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For prospectuses or for performance current to the most recent month-end, call your financial professional or John Hancock Funds at 1-800-225-5291, or visit our Web site at www.jhfunds.com.

DisclosuresA fund’s investment objectives, risks, charges and expenses should be considered carefully before investing. The prospectus includes this and other important information about the fund. To obtain a prospectus, call your financial professional, John Hancock Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.

This material does not constitute tax, legal or accounting advice and neither John Hancock nor any of its agents, employees or registered representatives are in the business of offering such advice. It was not intended or written for use and cannot be used by any taxpayer for the purpose of avoiding any IRS penalty. It was written to support the marketing of the transactions or topic it addresses. Anyone interested in these transactions or topics should seek advice based on his or her particular circumstances from independent financial advisers.

John Hancock Funds, LLC • MEMBER FINRA | SPIC 601 Congress Street, Boston, MA 02210-2805 • www.jhfunds.com

NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.

WIPPT 1/09

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Thank You For Attending!

Women Invest In Yourself!

Economy & Finance

Transcript of Women Invest In Yourself!