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
Women face different financial considerations
The income gap Longer lifespans Multiple roles &
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.
Women face different financial considerations
The income gap Longer lifespans Multiple roles &
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.
Multiple roles & responsibilities
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:
Multiple roles & responsibilities
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.
Multiple roles & responsibilities
Women work hard to achieve a work-life balance
2. Workplace:
Multiple roles & responsibilities
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.
Women face different financial considerations
The income gap Longer lifespans Multiple roles &
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
Changes that impact 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
Changes that impact finances
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
Changes that impact finances
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
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.