knowledge is power financial strategies for women wel… · financial advisor ascendant wealth...

Cierra M Walding, MS, CFP®, CLU®, APMA®

Financial Advisor

Ascendant Wealth Management Group

A private wealth advisory practice of Ameriprise Financial Services,

Inc.

September 16, 2019

Knowledge is power –

financial strategies for women

Investment advisory products and services are made available through Ameriprise Financial Services, Inc., a registered investment adviser.

Ameriprise Financial Services, Inc. Member FINRA and SIPC.

© 2019 Ameriprise Financial, Inc. All rights reserved.

Be Brilliant.®

Ameriprise Financial cannot guarantee future

financial results. Client experiences may vary.

Be inspired.Be there.

Women face unique financial concerns

Women face different financial considerations

The income gap Longer lifespans Multiple roles &

responsibilities

Changes that

impact finances

How to

address the

income gap

1. Negotiate a better salary

2. Maximize workplace benefits

3. Invest wisely to optimize your savings

The income gap

1. Negotiate a better salary

The average job change negotiation

will yield a 4.5% increase in salary.2

The income gap

The average raise is a 2% to 2.5%

increase per year.1

of women negotiate

their salary3

of men negotiate

their salary3

The income gap

1 2018 Compensation Planning Survey, Mercer2 ADP National Employment Survey, May 2017, ADP Research Institute3 Sankar, Carol. “Why Don’t More Women Negotiate?” Forbes, July 2017

84% of employees expect negotiation: Source: salary.com, 2016

Assess any health, life and disability

income insurance

Understand your employer sponsored

retirement plans, like 401(k)s and employer

matching

Utilize tax advantages and investment

options in these plans

Evaluate other benefits your workplace

offers.

2. Make the most of your workplace benefits

The income gap

3. Invest wisely

Together we can:

Determine your risk tolerance

Get invested

Diversify

Stay invested

The income gap

Compared to men, women…

Are risk aware

Are more prepared for problems

Do more research

Sometimes don’t take enough risks

3. Invest wisely:

Determine your risk tolerance

The income gap

Women and Financial Power study, Ameriprise, June 2014.

$0

$100,000

$200,000

$300,000

$400,000

This example is hypothetical and assumes a 6% annual rate of return and is not meant to represent any specific investment, investment strategy

or to imply any guaranteed rate of return. It does not take into account any investment fees or charges, or federal or state taxes that may apply.

Assumes a 6% annual rate of return with earnings reinvested

$419,008

35 45 55 Value at 65

$194,964

$83,830

Investment starting age

Get invested — the high cost of waiting

3. Invest wisely:

The income gap

Look for a mix

of investments

to help reduce risk

Diversify wisely

3. Invest wisely:

The income gap

Diversification does not assure a profit or protect against loss.

Tax diversification:

A mix of investments with

different tax treatments

can help you manage your

tax liability over time.

taxable-out

before-tax or

after-tax in

tax-free outafter-tax in

taxable-out

after-tax in

Tax-free

TaxableTax-deferred

Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney

regarding their specific situation.

Diversify wisely

3. Invest wisely:

The income gap

3. Invest wisely:

$0

$5

$10

$15

$20

$25

$30

$35

Jan Feb Mar Apr May

Avg. cost per

share ($17.24)

10 Shares

30 Shares

15 Shares

20 Shares

12 Shares

If a person invests

$300 per month:

Dollar-cost averaging does not assure a profit or protect against loss in declining markets.

This illustration is hypothetical and is not meant to represent any specific investment or to imply any guaranteed rate of return.

Dollar-cost

averaging

can help

The income gap



responsibilities

Changes that

impact finances

Living Longer

Women live on average

4.8 years longer than men, but

it can be considerably more

The National Vital Statistics Reports, Volume 64, Number 2, February 16, 2016

1. Save more

2. Ensure a balanced portfolio mix

3. Make sure you’re protected

4. Consider working past typical

retirement age

How you can address

longer lifespans

Living longer

1. Save more!

Pay yourself first

Review expenses

Sock away windfalls

Living longer

Tied to your 35 highest

earning years

Certificates

of Deposit

(CDs)

Living longer

Pensions

2. Consider a balanced portfolio mix

Social

Security

Stable sources of income

Growth-oriented investments

Disability income

insurance

Life insurance

Long-term care

insurance

Before you purchase, be sure to ask your sales representative about the insurance policy’s features, benefits and fees, and whether the

insurance is appropriate for you, based upon your financial situation and objectives.

70% of people will need long-term care: Source - U.S. Department of Health and Human Services, National Clearinghouse for Long Term

Care Information, 2012

71% are women: Source -- U.S. Department of Health and Human Services, Nursing Home Data Compendium, 2015

Average annual cost of nursing home: Source - Genworth Cost of Care Survey, June 2018

3. Make sure

you’re protected

Living longer

4. Consider working

past typical retirement age

Living longer

19.8% of people over age 65 were

working at least part-time.4

Working longer also means more years of

compound interest earned

on your investments.

The illustration discussed is hypothetical, assumes a 6% rate of return and is not

meant to represent any specific investment. It does not consider taxes or fees.4 Bureau of Labor Statistics, Employment Situation Summary, February 1, 2019.



responsibilities

Changes that

impact finances

Women fulfill multiple roles and responsibilities

3. Community1. Familialparent, partner, daughter

2. Workplace

Multiple roles & responsibilities

Parenting is a big

responsibility on all fronts

— including finances:

Average cost of raising a child

through age 17 — $233,6105

Average four year college costs:

Private school — $194,040

In state public school — $85,4806

Your role as a parent

1. Familial:

5Department of Agriculture, January, 2017 6Trends in College Pricing 2018, College Board.


Three questions to ask yourself and

your partner:

Do we talk about financial goals?

Are we both protected if something

unexpected happens?

Do we both have access to all the financial

information we need?

Your role as a partner

1. Familial:


Have your parents planned for their future

care needs?

75% of all family caregivers are female7

Average amount a family caregiver spends

on out-of-pocket costs is $6,954 per year8

Families with the most confidence about their financial

future talk about money and have fewer disagreements

about parental finances9

Start talking about the future today

Your role as a daughter

1. Familial:

7AARP, Family Caregiving and Out-of-Pocket Costs: 2016 Report. 8AARP, “The Cost of Family Caregiving: Out-of-Pocket Spending Surprisingly High”, 20169Family Wealth Checkup study, Ameriprise Financial, 2016.


Women work hard to achieve a work-life balance

2. Workplace:


You are more likely to volunteer…

and make charitable donations

Women often give more

to charity than men

3. Community:

Women’s Philanthropy Institute (WPI) Women Give, 2017.



responsibilities

Changes that

impact finances

1. Divorce

Changes that impact finances

2. Widowhood 3. Unexpected event

1. Divorce can be a

challenging life change that

impacts your finances


Some things you need to know:

Social Security after divorce

Retirement plan benefits after divorce

A new financial reality after divorce

2. Coping with widowhood


Social Security You may be eligible to receive survivor benefits

under your spouse’s retirement benefit.

Retirement plansA widow who is a beneficiary of her deceased

spouse’s qualified retirement plan is able to receive a

distribution from it.

Be sure you understand the potential benefits and risks of an IRA rollover before implementing. As with any decision that has tax implications,

you should consult with your tax adviser prior to implementing an IRA rollover.

3. An unexpected event


Make sure your affairs are in order by

updating:

Beneficiary designations

Power of attorney

Last will and testament

Health care directive

Our

Confident

Retirement®

approach

The Confident Retirement approach is not a guarantee of future financial results.

Covering Essentials

Essentials are the necessities –

the monthly expenses that keep

your life running.

Ensuring Lifestyle

Lifestyle is about the things you

want to do and how you want to

live — today and in the future.

Preparing for

the Unexpected

Unexpected are events that

could derail your financial plan.

Leaving a Legacy

Legacy is about the impact

you’ll make on people, charities

and causes that are important

to you.

Knowledge

is power

The initial consultation provides an overview of financial planning concepts. You will not receive written analysis and/or recommendations.

90% of clients who have had the Confident Retirement conversation feel more confident about retirement. Source: Confident Retirement Client Survey

results from May 2012 through May 2018. All results reflective of top-two box responses (strongly/somewhat agree). The Confident Retirement approach

is not a guarantee of future financial results.

Complimentary Initial Consultation

Beforehand, take the 3-Minute

Confident Retirement® check.

Map out your journey using the

Confident Retirement approach.

Tell me about what’s important to you

Learn about how I work with clients.

Determine if we’re a good match.

Clients should carefully consider the investment objectives, risks, charges, and expenses

associated with a 529 Plan before investing. More information regarding a particular 529 Plan

is available in the issuer’s official statement, which may be obtained from an Ameriprise

financial advisor. Investors should read the 529 Plan’s official statement carefully before

investing.

Clients should also consider, before investing, whether the investor’s or designated beneficiary’s

home state offers any state tax or other state benefits such as financial aid, scholarship funds, and

protection from creditors that are only available for investments in such state’s qualified tuition

program.

The earnings portion of money withdrawn from a 529 plan that is not spent on eligible college

expenses will be subject to income tax, an additional 10% federal tax penalty, and the possibility of a

recapture of any state tax deductions or credits taken.

Investment products are not federally or FDIC-insured, are not deposits or obligations of, or

guaranteed by any financial institution, and involve investment risks including possible loss

of principal and fluctuation in value. Certificates of deposit are FDIC-insured up to $250,000 per

depositor.

Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult

with their tax advisor or attorney regarding their specific situation.

Cierra M Walding, MS, CFP®, CLU®, APMA®Financial Advisor

Ameriprise Financial1400 Central AveFort Dodge, IA 50501

[email protected]

Thank you.

Investment advisory products and services are made available through Ameriprise Financial Services, Inc., a registered investment adviser.

Ameriprise Financial Services, Inc. Member FINRA and SIPC.

© 2019 Ameriprise Financial, Inc. All rights reserved.

knowledge is power financial strategies for women wel… · financial advisor ascendant wealth...

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