0 financial fitness: what every woman should know by linda descano, cfa chief operating officer...

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Financial Fitness: What Every Woman Should Know

ByLinda Descano, CFA

Chief Operating OfficerWomen and Company

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Disclosure Statement Women and Company is not registered as a broker-dealer nor as an investment advisor. Brokerage services and/or investment advice are available to Women and Company members through Citigroup Global Markets Inc., member SIPC, and Citicorp Investment Services, member NASD/SIPC, and affiliates of Citibank. All references to Women and Company Financial Professionals refer to registered representatives who are employees of Smith Barney, a division of Citigroup Global Markets Inc., or Citicorp Investment Services that have elected to service Women and Company members. Through Women and Company, members can access information about Women and Company Financial Professionals; however, Women and Company does not recommend or otherwise assist a member in selecting a specific financial professional. Members are free to select financial professionals other than those affiliated with Citigroup. Other financial professionals may offer similar services at different or lower rates than Citigroup Global Markets Inc. or Citicorp Investment Services. Women and Company and Women & Co. are registered service marks of Citigroup Inc. Women and Company is a division of Citigroup. Smith Barney is a division of Citigroup Global Markets Inc. Citigroup Global Markets Inc. and Citicorp Investment Services are subsidiaries of Citigroup Inc. The Women and Company program is a resource within Citigroup accessed by its numerous subsidiaries for assistance in better serving the women's market. In consideration of this assistance, certain of such subsidiaries, including Citigroup's Global Consumer Group and Smith Barney, a division of Citigroup Global Markets Inc., reimburse certain expenses of Women and Company. Neither Women and Company, Smith Barney nor Citicorp Investment Services provide legal or tax advice; you should consult with your own tax or legal advisors.

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How Well Do You Know the Financial Facts of A Woman’s Life??

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THE FACTSTHE FACTS

About what percent of wives outearn their

husbands?

10% 30% 50%

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THE FACTSTHE FACTS

About what percent of wives outearn

their husbands?

About one-third.Source: Business Week, 2003

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THE FACTSTHE FACTS

Who tend to be better investors – all-women

investment clubs or all-male clubs?

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THE FACTSTHE FACTS

Who tend to be better investors – all-women investment clubs or all-

male clubs?

All-Women Investment ClubsAll-female investment clubs outpaced all-male investment clubs with average compounded lifetime annual returns of 23.8% vs. 19.2%.

Source: Wow! Facts, 2002

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THE FACTSTHE FACTS

What percentage of your pre-retirement income will you need to

maintain your lifestyle after you stop working?

40% 75% 90%

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THE FACTSTHE FACTS

What percentage of your pre-retirement income will you need

to maintain your lifestyle after you stop working?

75-90%Source: American Savings Education Council, 2004

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THE FACTSTHE FACTS

What is the likelihood that a 65-year old woman will live until age

88?

25% 50% 75%

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THE FACTSTHE FACTS

What is the likelihood that a 65-year old woman will live until age

88?

50%And there’s a 25% chance that she’ll live

until age 94.Source: MetLife Mature Market Institute, 2004

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THE FACTSTHE FACTS

Who’s at more risk of outliving their savings – men or women?

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THE FACTSTHE FACTS

Who’s at more risk of outliving their savings – men or women?

Source: National Council of Women’s Organization, 2003; The National Women’s Health Information Center, 2003

Women

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Are You Prepared?

Ten Steps to Financial Fitness

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1. Organize A Support Network

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2. Get Your Financial Paperwork in Order

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3. Get Educated About Your Money

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4. Prepare A Household Budget

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5. Determine Your Money Goals and Values

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6. Develop a “Life” Plan – And Stick To It

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7. Address the “What Ifs”

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8. Evaluate Your Own Long-Term Care Needs

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9. Protect the Wealth You Are Accumulating

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10. Stay Informed and Engaged

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Financial Education on Life’s Financial Issues

Access to Consultative Resources on Issues with Short-and Long-Term Financial Consequences: Taxes, Real Estate and Care Giving

Savings and Discounts on Various Products

Access to the Resources of Citigroup

The Women and Company Membership

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Women and Companywww.womenandco.com