Women and InvestingThe Female Economy

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“Serving the needs of others is the onlylegitimate business today.” A.P. Giannini

That philosophy was unshakeable. When San Francisco was struck by amassive earthquake in 1906, A.P. Giannini rescued the bank’s safe from fire. Hequickly helped rebuild the city, offering generous loans to women and menfrom a makeshift desk on the docks, with only a handshake as collateral. 2

• 14 years after the earthquake, women made a significant step forward when the 19th

Amendment to the U.S. Constitution was ratified Aug. 18, 1920.

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Some Perspective

1 year later…

• Giannini’s “Women’s Bank” opened in June 1921. Taking up the entire upper floor of the bank’s headquarters in San Francisco, it had a staff of twelve female officers and employees. The purpose of the bank was to promote their “economic independence”.

• As one female writer in Boston put it, “the great success of the only bank in America that is administered, staffed and maintained solely by women … should give every male banker in the country deep pause.”

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"We're on the brink of a massivepower shift, a grinding of the gearsof history into a new humancondition. It's a world wherewomen can, if they choose, seizethe reins of economic control.” “Influence” Maddy Dychtwald: Author

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The New“She-conomy”

Economically:• Women Account for 64% of the $20 Trillion Spent Annually on Consumer Goods Worldwide1

• Women Control 51.3% of the Nation’s Private Wealth1

• Women Will be Responsible for Roughly $5 Trillion of Additional Earned Income Globally over the Next Five Years2

1 Source: CNNMoney.com, “The Female Economy: What Women Want.” August 20, 20092 “Woman Power: The Rise of the Sheconomy.” Time. November 22, 2010

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Women Have Comea Long Way

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Women Have Come a Long WayIn Business Ownership:• For the past two decades, majority women-owned firms have continued to grow at nearly two times the rate of all firms (42% vs. 24%)• More than 50% of firms are owned by women (10.4 million), employing more than 12.8 million people, and generating $1.9 trillion in sales• By 2013, more than 64% of all small businesses will be owned by women

www.womenonbusiness.com/facts-about-women-owned-businesses/“A Man’s Undercover Mission into the World of Women Leaders”;April 7, 2010 in The Glass Hammer.com

Women Have Comea Long Way

In the Workplace:• Nearly 52% of the Workforce is Comprised of Women• Women Account for More Than 50% of High-Paying Occupations in the U.S.Source: Employment Policy Foundation, www.dol.gov/wb/stats. 2008

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But Women Still FaceUnique Challenges

Compared to Men,Women Typically:• Earn Less • Spend Fewer Years in the Workforce• Live Longer • Have Other Concerns

Women Process Information &Make Purchasing DecisionsDifferently than Men:• 59% of women feel misunderstood by food marketers• 66% feel misunderstood by health care marketers• 74% feel misunderstood by automotive marketers • 84% feel misunderstood by investment marketers

http://she-conomy.com/report/facts-on-women/

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… And FeelMisunderstood

Source: Institute for woman’s policy research: September 2010

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Women Continue to Earn Less than Men

Women’s Challenges

Source: Bureau of Labor Statistics American Time use Survey: 2011

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Women Spend Less Time in the office

Women’s Challenges

Source: Centers for Disease Control Dr. Gayles 5-12-2011

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Women Live Longer than MenAggregate Life Expectancies

for Men and Women age 65

Women’s Challenges

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Women’s Challenges

Women Have Other ConcernsLong-Term Health Care• Women represent 87% of the recipients of long-term careFinancial Security• 45% of older women living alone are living in or near povertyLiving Alone• 88% of women age 75 or older are living alone

1COWL.com2Seniors-site.com: Women going it aloneAARP Public Policy Institute

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Taking Control of YourFinancial Future

Three Important Steps• Develop a Financial Plan• Grow Knowledge of Investing Fundamentals• Talk to your Financial Professional

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Develop a Financial Plan

Identify Your Financial Goals• Child’s or Grandchild’s Education• Financial Security—Now and in Retirement• Retirement Years and Lifestyle

Review Your CurrentFinancial Situation• Income and Expenses• Net Worth• Retirement Programs—Employer and Personal• Insurance• Beneficiary Designations

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Grow Knowledge ofInvesting Fundamentals

Effects of:• Inflation on Purchasing Power• Taxes on Portfolio Growth• Making Decisions Based on Emotion

Understand the:• Role of Asset Allocation• Advantages of Investing in Stocks

Inflation Based on US BLS CPI All Urban NSA

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Value of $100 from December 1999 to March 2011

Effects of Inflation

Hypothetical value of $10,000 invested in stocks. This example is for an investor in the 28% bracket using the 2008 tax code. Assumes an 8% annual total return. Estimates are not guaranteed. This is for illustrative purposes only and not indicative of any investment. © 2009 Morningstar, Inc. All rights reserved. 3/1/2009 19

Benefits of Deferring Taxes

Effects of Taxes

Returns and principal invested in stocks are not guaranteed. Withdrawals of tax-deferred accumulations are subject to ordinary income taxes. A 10% federal tax penalty may apply to withdrawals made before age 59½. This material was not intended or written to be used, and cannot be used, to avoid penalties imposed under the Internal Revenue Code. This material was written in whole or in part to support the promotion or marketing of the transaction(s) or matter(s) addressed in this material. Anyone to whom any transaction or concept addressed in this material is promoted, marketed, or recommended should seek and rely on advice from an independent tax advisor based on the person’s particular circumstances.This is for illustrative purposes only and not indicative of any investment. © 2009 Morningstar, Inc. All rights reserved. 3/1/2009

* Balanced Portfolio is based on 60% S&P 500 and 40% Barclays Capital US Aggregate Bond; rebalanced monthly.** Start Dates: 1987 Market Crash - 10/26/1987, S&L Crisis - 10/11/1990, LTCM Bailout - 10/5/1998, Dot Com Crash - 4/9/2001, Sept 11 Attacks - 9/17/2001, Housing Bubble - 2/23/2009Past performance is no guarantee of future results. Returns reflect the percentage change in the index level from the end of the month in which the event occurred to one month,six months, one year, three years and five years after. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. © 2009 Morningstar, Inc. All rights reserved. 3/1/2009

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Making Decisions Based on Emotion

Investing Based on YourUnique Situation and Goals• Use a mix of stocks, bonds, cash and perhaps other asset classes

• Each asset class has its own risk and return characteristics

• Your portfolio’s asset allocation should be designed to provide the overall risk and return you seek

© 2009 Morningstar, Inc. All rights reserved. 3/1/2009

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Role of Asset Allocation

Different levels of risks are associated with different types of investments. Your financial professional can help you create an asset allocations with the right balance between risk and reward.

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SummaryRemember:

• Women Influence Today’s Economy, Businesses and Workplace

• Women Face Unique Financial Challenges • Women Should Develop a Financial Plan with a Financial Professional

• Women Should Grow Their Knowledge of Investing Fundamentals

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Questions?