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Not FDIC Insured
May Lose Value
No Bank Guarantee
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A strong foundation
Source: Bureau of Labor Statistics, Women in the Labor Force: A Databook, 2011.
More likely (than men) to attend college
More than half of management and professional jobs
47%
Nearly half of the U.S. labor force
52%74%
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The challenges
• Earnings (still) tend to be lower overall
• Likely to live longer
• Often in the role of caregiver
• Investment behavior is more cautious
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Receiving lower overall pay
Sources: National Committee on Pay Equity, 2011; The WAGE Project, 2013.
Today
Women are
paid 77 cents for every dollar earned by a man
At retirement
This estimated wage gapcould cost the averagefull-time woman worker
$700,000 to$2 million over thecourse of her work life
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Enjoying a long retirement
Source: Social Security Administration, 2012.
Health-care costs will outpace therate of inflation
The average woman
who retires at age
65 today can expect
to live 20 years in
retirement
A longer lifespan means more years in retirement
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Taking care of others
Source: U.S. Department of Health and Human Services, Office on Women’s Health, July 2012.
More than half of employed women caregivers adjust their work schedules to provide care
61%of those who provide unpaid care to an elderly or disabled adult are women
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Being too conservative
.
Sources: Hewitt Associates, "Total Retirement Income at Large Companies: The Real Deal," July 2008; Society of Actuaries, “Risks and Process Retirement Survey Report,” May 2008, which is the most recent data available.
Women’s
patience in
investing is
often rewarded
However, being tooconservative cannegatively affectyour retirementsavings goals
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Strategies to move your retirement planin the right direction
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Will you need more incomein retirement?
*U.S. Dept. of Labor, 2012 Consumer Expenditure Survey Report (based on 2011 data).**Consumer Price Index, 2013, for the period 1948-2012.
The average household requires $49,705 annually, or $994,100 over 20 years, before inflation*
Long-term inflation averages 3.52% per year**
Expenses
Wealthpreservation
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Do you know how muchyou’ll need to save?
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2012 Retirement Confidence Survey.
Less than$250,000
Less than$500,000
Less than$1,000,000
At least$1,000,000
Survey responses
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Because reality can be startling
Assumes 25 years of retirement, and a retirement nest egg growing at 6% annually, compounded monthly and adjusted for 3% inflation.
If your currentannual income is You’ll need to save
$50,000 $890,000
$100,000 $1,800,000
$250,000 $3,600,000
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Save as much as you can 2013 limit
Your employer’s retirement planBefore-tax contributions, tax-deferred earnings
$17,500Traditional IRABefore-tax contributions (if you qualify), tax-deferred earnings
$5,500
Roth IRAAfter-tax contributions, tax-free withdrawals
$5,500Additional contributions for those age 50 and over
Employer’s retirement plan $5,500
Traditional or Roth IRA$1,000Source: IRS, 2013.
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Social Security won’t cover it all
* In today’s dollars. Assumes retirement at age 66.The maximum Social Security benefit in 2012 for an individual at full retirement age (66) is $30,156. Sources: Bureau of Labor Statistics, Highlights of Women’s Earnings in 2011, Social Security Administration, 2013.
What you canexpect fromSocial Security*
Annual income of full-time worker(age 60)
Single Men
Single Women
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Actively manage your nest egg
• Diversify to reduce risk, while seeking to optimize returns
• Rebalance regularly
• Take sustainable withdrawals
Diversification and rebalancing will not necessarily prevent you from losing money; however, they may reduce volatility and potentially limit downside losses.
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Stocks felt the boom and bust of the 1990s and early 2000s.
$504,181Jan. 1993
$1,264,859
Dec. 2012
Diversification can helplower volatility
Illustration is based on a hypothetical investment of $500,000 in the S&P 500 Index. The S&P 500 Index is an unmanaged index of common stock performance. You cannot invest directly in an index. Annual withdrawals are $25,000 increased by 3% annually for inflation
Annual withdrawal: $25,000
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Diversification can helplower volatility
Illustration is based on a hypothetical investment of $500,000 in the S&P 500 Index and the Barclays U.S. Aggregate Bond Index. The Barclays U.S. Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed-income securities. You cannot invest directly in an index Annual withdrawals are $25,000 increased by 3% annually for inflation
Bonds were steady,but lagged behind stocks.
Annual withdrawal: $25,000
$509,588Jan. 1993
$542,427Dec. 2012
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Diversification can helplower volatility
Illustration is based on a hypothetical investment of $500,000 in the S&P 500 Index, the Barclays U.S. Aggregate Bond Index, and a diversified portfolio composed of a 25% investment in the S&P 500 Index and a 75% investment in the Barclays U.S. Aggregate Bond Index. Refer to slide 19 for index definitions. You cannot invest directly in an index. Annual withdrawals are $25,000 increased by 3% annually for inflation. Diversified portfolio is rebalanced annually.
A diversified portfolio outpaced bonds with far less volatility.
Annual withdrawal: $25,000Annual withdrawal: $25,000
$508,236Jan. 1993
$789,994Dec. 2012
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Diversify across opportunities
Past performance does not indicate future results.Indexes are unmanaged and show broad market performance. It is not possible to invest directly in an index.
Highestreturn
Lowestreturn
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
U.S. Small-Cap Growth Stocks | Russell 2000 Growth Index International stocks | MSCI EAFE IndexU.S. Large-Cap Growth Stocks | Russell 1000 Growth Index U.S. Bonds | Barclays U.S. Aggregate Bond Index
U.S. Small-Cap Value Stocks | Russell 2000 Value IndexCash | BofA Merrill Lynch U.S. 3-Month Treasury Bill Index
U.S. Large-Cap Value Stocks | Russell 1000 Value Index
Changes in market performance, 1992–2012
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Active rebalancing
Stocks
Bonds
Balancedportfolio
Out-of-balanceportfolio
Stocks are represented by the S&P 500 Index and bonds by the Barclays U.S. Aggregate Bond Index. Indexes are unmanaged and represent broad market performance. It is not possible to invest directly in an index. Data is historical. Past performance is not a guarantee of future results. Diversification and rebalancing will not necessarily prevent you from losing money; however, they may reduce volatility and potentially limit downside losses.
Without rebalancing: The market controls asset allocation
29%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
33%
67% 71%
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Active rebalancing
Stocks
Bonds
Balancedportfolio
Stocks are represented by the S&P 500 Index and bonds by the Barclays U.S. Aggregate Bond Index. Indexes are unmanaged and represent broad market performance. It is not possible to invest directly in an index. Data is historical. Past performance is not a guarantee of future results. Diversification and rebalancing will not necessarily prevent you from losing money; however, they may reduce volatility and potentially limit downside losses.
With rebalancing: Asset allocation remains consistent
67%
33%
57%
43%
67%
33%
67%
33%Balancedportfolio
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
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Putnam Dynamic Asset Allocation Funds
• Asset class diversification
• Global investment perspective
• Active rebalancing
• Individual security selection
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80%
20%
60%
40%30%
70%
Putnam’s three diversified fundsChoices for investors with different objectives
Amount allocated to
stocks
Amount allocated to
bonds
GrowthFund
BalancedFund
ConservativeFund
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How long will your savings last?
This example assumed a 95% probability rate. These hypothetical illustrations are based on rolling historical time period analysis and do not account for the effect of taxes, nor do they represent the performance of any Putnam fund or product, which will fluctuate. These illustrations use the historical rolling periods from 1926 to 2010 of stocks (as represented by an S&P 500 composite), bonds (as represented by a 20-year long-term government bond (50%) and a 20-year corporate bond (50%)), and cash (U.S. 30-day T-bills) to determine how long a portfolio would have lasted given various withdrawal rates. A one-year rolling average is used to calculate performance of the 20-year bonds. Past performance is not a guarantee of future results. The S&P 500 Index is an unmanaged index of common stock performance. You cannot invest directly in an index.
0
10
20
30
40
50
Years
Percentage of your portfolio’s original balance withdrawn each year
It depends on how much you withdraw each year.
10%will last10
years
9%will last11year
s
4%will last
37 years
5%will last22
years
6%will last17
years
7%will last14
years
8%will last12
years
3%will last
50+ years
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Put your plan into action
• Understand your investment challenges and consider how they may impact your retirement
• Develop an effective retirement plan to determine what you can do today to ensure you’ll have the income you’ll need later on
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Prepare for the unexpected
• Life events– Family and home emergencies
– Change in health
– Change in career or income
– Divorce or death of a spouse
• Estate planning
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Work with a financial advisor
• Be actively engaged in the management of your money and review your financial plan regularly
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A BALANCED APPROACH
A WORLD OF INVESTING
A COMMITMENT TO EXCELLENCE
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Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus, or a summary prospectus if available, containing this and other information for any Putnam fund or product, call your financial representative or call Putnam at1-800-225-1581. Please read the prospectus carefully before investing.
Putnam Retail Management putnam.com
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