growing your value to women investors · sources: center for american progress, 2017; department of...
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Not FDIC insured
May lose value
No bank guarantee
Growing your
value to women
investors
Strategies for expanding your practice
For investment professional use only. Not for public distribution.
PPT012 310073 8/18
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Agenda
Growing economic importance
Building successful communication
Segmenting strategies for practice growth
How Putnam can help
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Growing
economic
importance
For investment professional use only. Not for public distribution.
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The biggest emerging market in the world
is not China; it’s women. We don’t pay
this market the respect it deserves.
SYLVIA ANN HEWLETT Chair and CEO of the Center for Talent Innovation
GROWING ECONOMIC IMPORTANCE
For investment professional use only. Not for public distribution.
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Women are poised to lead in controlling assets
• 95% of families will have a woman as the primary
financial decision maker at some point in their lives
• Women are majority owners of 11.6 million
businesses, which generate $1.7 trillion in
revenues
• Will control 2/3 of the nation’s wealth by year 2030
Sources: Family Wealth Advisors Council, 2015; BMO Wealth Institute, 2015.
Women control 51%
of personal wealth
in the United States —
about $14 trillion
51%
GROWING ECONOMIC IMPORTANCE
For investment professional use only. Not for public distribution.
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Women’s surging economic power
Sources: Center for American Progress, 2017; Department of Labor, 2017, Alliance Life 2016, Allianz.
Women currently earn
57% of bachelor’s degrees,
60% of master’s degrees,
51% of doctoral degrees
70% of women with children
under age 18 participate in the
labor force, with 40% being the
primary or only breadwinner
Women hold just over
50% of all management,
professional, and related
occupations
GROWING ECONOMIC IMPORTANCE
EDUCATION PARTICIPATION
ELEVATION
51% of women see themselves as
the CFO of the household
53% are responsible for the
household’s long-term savings and
investments
CONSUMPTION
For investment professional use only. Not for public distribution.
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Women’s surging relevance to your practice
Sources: Empower Lifetime Income Score, 2016; Prudential, 2015; Ernst & Young, 2017; Spectrem Group, 2011, New York Life, 2018, Center of Talent Innovation.
feel misunderstood
62%
67%
70% change advisors within
one year of the death
of a spouse
would switch advisors
(vs. 44% of men)
of women work with a
financial advisor
(vs. 62% of men)
38%
GROWING ECONOMIC IMPORTANCE
of women on the hunt
for an advisor can’t find
one they connect with
90%
gain confidence from
advice53%
Building
successful
communication
For investment professional use only. Not for public distribution.
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Women face different challenges
Sources: Joint Economic Committee, 2016; Rice University, 2015; HealthView Services, 2017; Social Security Administration
Earn only 79 cents for
every dollar a man earns
EARNINGS GAP
Lose out on $324,044
in wages and Social
Security to care for others
INCOME DISRUPTIONDUE TO CAREGIVING
Women now live, on
average, 86.6 years
versus males who live
84.3 years
LONGEVITY
BUILDING SUCCESSFUL COMMUNICATION
For investment professional use only. Not for public distribution.
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Opportunities for advice
• * ssa.gov/pubs/EN-05-10127.pdf
• † ml.com/women-financial-wellness-age-wave.html
• ‡ mlaem.fs.ml.com/content/dam/ML/Registration/ml-womens-study.pdf
• §U.S. Trust Insights on Wealth and Worth, 2017
• **Morgan Stanley Institute for Sustainable Investing, Cerulli Associates.
• Impact investing and/or Environmental, Social and Governance (ESG) managers may take into consideration factors beyond traditional financial information to select securities, which could result in relative investment
performance deviating from other strategies or broad market benchmarks, depending on whether such sectors or investments are in or out of favor in the market. Further, ESG strategies may rely on certain values based criteria
to eliminate exposures found in similar strategies or broad market benchmarks, which could also result in relative investment performance deviating.
• Nearly 55% of
Social Security
recipients are women*
• On average,
Social Security only
replaces about 40%
of pre-retirement
earnings
SOCIAL SECURITY
• On average, women
may live longer in
retirement: A 65-
year-old women can
expect to live, on
average, until age 87,
while a 65-year-old
man can expect to
live to age 84
RETIREMENT SAVINGS
• 41% of women wish
they had invested
more of their money†
• Just over half (52%) of
women say they are
confident about
investing (compared
with 68% of men)‡
FINANCIAL PLANNING
BUILDING SUCCESSFUL COMMUNICATION
• Over 60% of financial
advisors show little to
no interest in ESG
Investing**
• The number of HNW
women with assets in
impact or sustainable
investments grew to
18% in 2017 from 9%
in 2015 †
INVESTMENTS
For investment professional use only. Not for public distribution.
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Women feel a disconnect
Source: Harnessing the Power of the Purse: Female Investors and Global Opportunities for Growth, Center for Talent Innovation.
of women do not feel
Wall Street pays equal attention
to men and women90%
of women say Wall Street is not
in touch with their needs71%
BUILDING SUCCESSFUL COMMUNICATION
Stop using so much
jargon, look out for
customer’s interests,
and maintain a
strong code of ethics
Women have advice
for financial advisors
For investment professional use only. Not for public distribution.
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Provide a roadmap for financial goals
Source: Willis Tower Watson, 2017 Global Benefits Attitude Survey, 2017.
BUILDING SUCCESSFUL COMMUNICATION
64%57%
44%
Daily living costs Paying off debt Saving for retirement
WOMEN’S TOP FINANCIAL PRIORITIES
While our survey finds that women
place a lower priority on saving for
retirement than men do (60% vs.
44%), we believe it’s a question of,
‘Am I able to save for retirement?’
rather than, ‘Is saving for
retirement important?’
SHANE BARTLINGSenior Consultant, Willis Towers Watson
For investment professional use only. Not for public distribution.
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Communicate your value to women investors
• Identify the types of
women you work with
• Define the goals
important to those
groups
SEGMENT
• Align your value
proposition with the
needs of your target
segments
• Incorporate these
ideas into your
online presence
POSITION
• Include supporting
decision makers in
conversations
• Use social media to
identify key prospects
and COIs
INTEGRATE
BUILDING SUCCESSFUL COMMUNICATION
• Understand lifestyle
goals and savings
challenges
• Create a goals-based
plan and educate on
solutions
COMMUNICATE
Segmenting
strategies for
practice growth
For investment professional use only. Not for public distribution.
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Segments and niches
SEGMENTING STRATEGIES FOR PRACTICE GROWTH
DISTRIBUTING WEALTH
• Retirees
• Supporting decision makers
GROWING LITERACY
• Millennial professionals
• Client beneficiaries/heirs
• Supporting decision makers
ACCUMULATING WEALTH
• Established professionals
• Business owners/Self-employed
• Working mothers
• Supporting decision makers
• Co-habitation and
partnerships
• Newly independent
and remarried
• Financial caregivers
TRANSITIONAL NICHESSEGMENTS
For investment professional use only. Not for public distribution.
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Growing literacy
• Debt management
• Bucketed saving/Investing
• Managing workplace benefits
• 401(k) guidance
• Systematic investing
• Tax awareness
• Health savings accounts
• ESG incorporation
• Insurance
• Maintain active presence on
social media to build your brand
• Conduct financial check-ups for beneficiaries
• Leverage alumni networks
• Set up a booth at a bridal expo
• Conduct mock interviews
• Consulting contracts
• Target young professionals networking groups
• Build relationships with realtors
HOW TO CONNECT PLANNING IDEAS
• Millennial
professionals
• Client
beneficiaries/heirs
• Supporting
decision makers
SEGMENTING STRATEGIES FOR PRACTICE GROWTH GROWING LITERACY
For investment professional use only. Not for public distribution.
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Accumulating wealth
SEGMENTING STRATEGIES FOR PRACTICE GROWTH ACCUMULATING WEALTH
• Saving for retirement
• Debt management
• Tax planning
• Asset protection
• College savings
• Building home equity
• Estate planning
• Insurance
• Claiming Social Security
• Build your brand on social media/Offer
“Virtual” Meetings
• Offer current client referrals
• Provide a free speaker from the Social Security
Administration
• Institute family wealth days
• Offer day care providers
• Host “lunch and learns” for small business
owners
• Build your own “bring a friend” networking event
HOW TO CONNECT PLANNING IDEAS
• Established
professionals
• Business owners/
Self-employed
• Working mothers
• Supporting
decision makers
For investment professional use only. Not for public distribution.
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Distributing wealth
• Income in retirement
• Drawdown strategy/RMDs
• Navigating Medicare
• Claiming Social Security
• Estate planning
• Tax planning
• Insurance coverage
• Charitable giving
• Donor-advised funds
• College savings
• Offer current client referrals
• Network with independent living organizations,
estate attorneys, and senior organization leaders
• Connect with charitable organizations
• Help clients establish a donor-advised fund
• Craft an “I love you” letter
• Host retirement seminars in:
− Over-age-55 residential communities
− Country clubs/tennis clubs
HOW TO CONNECT PLANNING IDEAS
• Retirees
• Supporting
decision makers
SEGMENTING STRATEGIES FOR PRACTICE GROWTH DISTRIBUTING WEALTH
For investment professional use only. Not for public distribution.
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Cohabitation and partner households
• Special considerations for
health insurance
• IRA account limitations
• Taxation options
• Revocable trusts
• Healthcare proxys/directives
• Durable power of attorney
• Irrevocable life insurance trust
• Create a “family chart” to determine who
financial stakeholders are in current client’s
families
• Partner with realtors to identify couples and
partners with a financial advice need
• Keep in touch with other household members
by recognizing birthdays or key life events
• Gift a financial plan to a newly engaged or
partnered beneficiary
HOW TO CONNECT PLANNING CONSIDERATIONS
GROWING LITERACY
ACCUMULATING WEALTH
DISTRIBUTING WEALTH
SEGMENTING STRATEGIES FOR PRACTICE GROWTH TRANSITIONAL NICHES
For investment professional use only. Not for public distribution.
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Newly independent and remarriage
• Budgeting
• Insurance coverage
• Tax considerations
• Fixed annuity planning
• Investment education
• Beneficiary designation
• Long-term care
• Remarriage considerations
• Estate planning
• Use FindLaw.com to find divorce attorneys and
estate planners to partner with
• Create a financial life book to help guide decision
making
• Create a consulting tree to become a key
resource to divorcing clients
• Build an ongoing personal relationship with
supporting decision-makers well before wealth
transfer
HOW TO CONNECT PLANNING IDEAS
SEGMENTING STRATEGIES FOR PRACTICE GROWTH TRANSITIONAL NICHES
GROWING LITERACY
ACCUMULATING WEALTH
DISTRIBUTING WEALTH
For investment professional use only. Not for public distribution.
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Financial caregivers
• Durable power of attorney
• Healthcare proxy
• Budgeting
• Government benefit support
• Account inventory
• Estate planning
• Long-term care
• Asset protection
• Partner with local senior organizations to host
educational events on financial caregiving.
• Ask current clients if they need support with
financial coordination for a loved one
• Use 2-1-1 to connect and establish relationships
with key non-profits.
• Ask current clients about their plan for financial
care in later years
HOW TO CONNECT PLANNING IDEAS
SEGMENTING STRATEGIES FOR PRACTICE GROWTH TRANSITIONAL NICHES
GROWING LITERACY
ACCUMULATING WEALTH
DISTRIBUTING WEALTH
For investment professional use only. Not for public distribution.
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Next steps
HOW PUTNAM CAN HELP
1
2
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Individualized training for your practice
Request a follow-up with a Putnam Specialist
Call your Putnam Consultant (1-800-354-4000)
Visit putnam.com/advisor
For investment professional use only. Not for public distribution.
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FOR INVESTMENT PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
For informational purposes only. Not an investment recommendation.
This information is not meant as tax or legal advice. Please consult with the appropriate tax or legal professional regarding your
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