From Here to There:

A Clear View of Retirement

for Women
Gemma Jablonski
Financial Advisor
Direct Phone: 717-560-6870
Email : gemma.jablonski@wfadvisors.com

April 14, 2010

 The material in this seminar is provided for informational purposes only and is not
a solicitation or an offer to buy any security or instrument or to participate in any
trading strategy. The information discussed may not be suitable for all investors.
Investors need to make their own decisions based on their specific investment
objectives, financial circumstances and tolerance for risk. Please contact your
financial professional, legal and/or tax advisor for more information on planning for
retirement. Wells Fargo Advisors is not a legal or tax advisor. However, its
Financial Advisors will be glad to work with you, your accountant, tax advisor and
or lawyer to help you meet your financial goals.

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Introductions

Question one: What unique considerations do women have?

Question two: What do I need to know?

Question three: How can I prepare?

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Question one: What unique
considerations do women have?

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 What unique considerations do women have?
Let’s start talking.

Nobody’s talking about finances.

People “would sooner offer personal guided tours through their medicine
cabinets.” — Lee Eisenberg, The Number

Most Wealthy People Don’t Talk About Money or Plan Ahead, Investment News, July 2005; The Number, Lee Eisenberg, 2006; The Female Brain, Louann
Brizendine, M.D., 2006; U.S. Adults: Word of Mouth Communications, Lucid Marketing, 2006 5
 What unique considerations do women have?
Let’s start talking.

Only 12% of women are confident

they will have enough funds for their
lifetime.

Financial Services Study, Frank About Women 2006

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 What unique considerations do women have?
Women live longer and make less.

Women and Longevity

• Most women should factor 25
to 30 years for retirement.
• If a women lives to the age of 65,
she can expect to live until 85. If she
lives until 75, she can expect to live
until 88.1
• Seven out of 10 “baby boomer”
women are expected to outlive
husbands – leaving widows for 15 to
20 years.2

Health, United States, 2008, Centers for Disease Control and Prevention, 2Elder Issues, Women and Aging, 3/2008
1

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What unique considerations do women have?
The sandwich generation.

• Many Boomers are

depleting their retirement
savings and taking time
out of the workforce
to take care of family.
• Guard against draining
retirement funds for needs
that could be met in other
ways.

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 What unique considerations do women have?
Women are skilled at finances.

Women and investments.

In a recent study and follow-up test
on investment knowledge:
• Women were more likely than
men to gauge their knowledge
low but answer questions
correctly.1
• Men were more likely to gauge
their knowledge high but
answer questions incorrectly.1

Financial Services Study, Frank About Women, 2006

1
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 What unique considerations do women have?
Women are skilled at finances.

Women’s roles in finances.

• Women are more likely to handle the
day-to-day finances.1
• 62 percent of working women provide
half or more of their households’
income.2
• 51 percent of women in the U.S. are
unmarried and managing their own
finances.3
• Women-owned businesses have
grown at twice the rate of all firms.4

1Retirement Fitness Research, Richard Day Research, December 2006; 2Women and Finance, Mintel, 2005; 351% of Women Are Now Living Without a
Spouse, New York Times, 1-16-2007; 4www.cfwbr.org/facts, Top Facts About Women-Owned Businesses, 2007. 10
Question two: What do I need to
know?

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 What do I need to know?
Know your financial temperament.1

ARTISANS
Entrepreneurial and look for
new ways to make money
Act quickly on investments GUARDIANS

Comfortable investing large Cautious with money

sums of money in hopes Value financial security
of large returns over growing wealth

IDEALISTS RATIONALS

Prefer to focus energy on Numbers oriented

goals other than money Consider themselves good
and finances with money
Think of money as a Like to stay involved with
necessary evil investments

1Meir Statman, Ph.D., and Vincent Wood, CFA. “Behavioral Aspects of the Design and Marketing of Financial Products.” The Journal of Investment
Consulting. Summer 2004, Volume 7, Number 1 12
 What do I need to know?
Know your financial temperament.1

Bottom line: What’s

important is you and
your financial advisor
understanding how
you relate to money.

1Meir Statman, Ph.D., and Vincent Wood, CFA. “Behavioral Aspects of the Design and Marketing of Financial Products.” The Journal of Investment
Consulting. Summer 2004, Volume 7, Number 1 13
What do I need to know?
New retirement realities.

Potential Sources of Retirement Income - Pensions and Social

Security:
22%
38%

21%
2%
17%
Earnings
Other
OASDI (Social Security)
Pensions and Annuities
Assets

Employee Benefit Research Institute 5/2009

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What do I need to know?
New retirement realities.

In 2008, employer health insurance premiums increased by

five percent – two times the rate of inflation.1
Retiring elderly couples will need
$250,000 in savings just to pay for the
most basic medical coverage.1 $224,000 if
you are a single woman.2 Many experts
believe that this figure is conservative and
that $300,000 may be a more realistic
number.

1
2008, National Coalition on Health Care
2
EBRI, Issue Brief No. 317, May, 2008
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What do I need to know?
New retirement realities.

Inflation:

1999 2009
1st class postage stamp $.33 $.44
Movie ticket $5.08 $7.20
Gallon of gasoline $.95 $1.92
Loaf of bread $.88 $1.40
Dozen eggs $1.08 $3.31
Orange juice $1.78 $2.61

Boxofficemojo.com, 2009
Feb 1999 and Feb 2009 - Bureau of Labor Statistics.com
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 What do I need to know?
New retirement realities.

Income needs in retirement:

Expect you will need to replace 70 to 80% of your pre-retirement
income.

Everyone is different. Some things to consider may include:

 More time to shop around for deals.
 No longer need to devote a portion of income to savings.
 Children leaving home.

Are You Sure You’re Saving Enough For Retirement, National Bureau of Economic Research, Jonathan Skinner, March 2007
1
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 What do I need to know?
Know your sources of retirement income.

How America plans to fund retirement

Retirement accounts 42%
Social Security 30%
Pensions 24%
Home Equity 24%
Part-time work 22%
Savings 20%
Stocks 17%
Inheritance 7%
Annuities or insurance 7%
Rent and royalties 6%

Ten Sources of Retirement Income, US News: April, 2009

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 What do I need to know?
Retirement account options.

IRA Considerations
• Traditional IRA contributions may Types of IRAs:
IMPORTANT: 1
be tax-deductible. Traditional, Roth
Beginning in 2010,
• Roth IRA offers tax-free the income restriction onor Rollover
converting
withdrawals. 1 to a Roth IRA is being lifted and
Spousal
anyone can take advantage of its unique
• $5,000 contribution in 2009; Stretch
benefits. This conversion may include
$1,000 catch-up
converting all contribution
or a portion for
of these retirement
Simplified Employee
ages 50+.
accounts into a Roth IRA: Traditional IRA, Pension (SEP)
Employer-sponsored
• Penalty-free withdrawalsretirement
for first- plan, 403(b),
timeand/or
homeapurchase
governmental
and 457(b).
educational expenses.
• Consolidating IRAs offers better
control, convenience and ability to
add more beneficiaries.
1
Traditional IRA withdrawals are taxed as ordinary income. Qualified Roth IRA distributions are not subject to state and local taxation in most states. Qualified
Roth IRA distributions are also federally tax-free provided a Roth account has been open for at least five years and the owner has reached age 59 ½ or met
other requirements. Both may be subject to a 10% Federal tax penalty if withdrawals are taken prior to age 59 ½.
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 What do I need to know?
Retirement account options.

Employee-sponsored plans
• Contribute as much as you can.
• Matching is “free money.”
• Catch-up contributions are available.
• Avoid cashing out.
• Rollover your 401(k)
Taking a lump sum on a $50,000 401(k):
- $15,000 (taxes)
– $5,000 (penalty)
= $30,000.

Withdrawals are subject to ordinary income tax and may be subject to a Federal 10% penalty if taken prior to age 59 ½. Wells Fargo Advisors does not provide
tax or legal advice. Be sure to consult with your own tax and legal advisors before taking any action that may have tax or legal consequences.
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 What do I need to know?
Retirement account options.

Annuities with living benefits

• Ability to structure annuity to provide
guaranteed income for life.1
• Consistent source of income.
• Tax-advantaged2
• Choice of additional benefits:
o Payouts that offer market participation or
guaranteed rate of return.
o Guarantees for your beneficiaries.

Variable annuities are sold by prospectus. Please consider the investment

objectives, risks, charges and expenses carefully before investing. The
prospectus, which contains this and other information, can be obtained by
calling your financial advisor. Read it carefully before you invest.

Variable annuities are long-term investments suitable for retirement funding and are subject to market fluctuations and investment risk. 1Guarantees are
subject to the claims-paying ability of the issuer. 2Wells Fargo Advisors is not a tax or legal advisor. Be sure to consult with your own tax and legal advisors
before taking any action that may have tax or legal consequences
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 What do I need to know?
Make time work for you.

Investor A Investor B

Years until Retirement 20 10

Amount/Month $1,800 $1,800

Total Amount Invested $432,000 $216,000

Annual Yield 8% 8%

Value at Age 65 $1,030,788 $326,310

For illustrative purposes only. Does not reflect the performance of any specific investment and ignores the impact of taxes. Monthly investment of $1,800 occurs
at the beginning of each month and assumes an 8% average annual yield.
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 What do I need to know?
Key considerations.

• Consider saving at least 10% of your income by investing in an

employer-sponsored plan as well as your individual investment accounts.
• Think about establishing an education savings account if you have
40s •
children.
Carefully manage your use of debt as you balance everyday and major
purchases with retirement planning.
• Try to set aside three to six months’ expenses for emergency or job loss.
• Create a will and update it regularly.
• Consider maintaining separate accounts in your own name.

• Establish a formal plan for retirement with specific goals.

• Consider consolidating investment accounts to simplify and consider

50s
the benefits of professional money management.
• Try to work on increasing your savings rate to 20% or more.
• Take advantage of IRA catch-up contributions.
• Look into long-term care insurance.
• Ensure your beneficiaries are updated on all accounts.

Insurance products are offered through non-bank insurance agency affiliates of Wells Fargo & Company and are underwritten by unaffiliated insurance
companies. Wells Fargo Advisors, LLC, is a separate non-bank affiliate of Wells Fargo & Company.
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 What do I need to know?
Key considerations.
• Refresh your retirement plan.
• Plan a withdrawal strategy to help make your income last.
• Consider steps to help protect your future income-producing assets.

60s •
•
Ensure your beneficiaries are updated on all accounts.
Consider a Stretch IRA strategy to potentially extend tax-deferred growth
to your heirs.1
• Review your will and make any necessary updates.
• Review business agreements and transfer plans if you own a small
business.
• Review your income plan regularly to help ensure it is meeting your
financial needs during retirement.
• Invest time in activities that are important to you such as travel, family
or volunteering.

70s • Supplement Medicare with insurance to ensure you have the coverage
level you need.
• Consider gifting strategies for your heirs or charitable organizations that
interest you.
• Seek advice on business transfer planning if you are still running a
business and keep your will updated.
1
Stretch IRA Strategies are designed for investors who will not need the money in the account for their own retirement. There is no guarantee there will be assets
remaining in the account at the time of the IRA owner’s death. Wells Fargo Advisors does not provide tax or legal advice. Be sure to consult with your own tax
and legal advisors before taking any action that may have tax or legal consequences.
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Question three: How can I
prepare?

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 How can I prepare?
The importance of asset allocation.

Asset Allocation is the way your money is divided among your investments,
e.g., stocks, bonds and money-market instruments. A study of large pension
funds showed this single factor accounted for 91.5 percent of the eventual
outcome of an investment program.*

By comparison, investment selection and market timing accounted for just 4.6
and 2.2 percent, respectively.

Asset Allocation 91.5%

Investment Selection 4.6%
Market Timing 2.2%
Other Factors 1.7%

*Source: Brinson, Singer and Beebower, “Determinants of Portfolio Performance,” Financial Analysts Journal, May/June 1991. Asset allocation/investment timing
cannot eliminate the risk of fluctuating prices and uncertain returns.
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How can I prepare?

?
Find out what is important to you.

Traveling?
Living in a foreign country?
Moving closer to family?
Buying a bigger house?
Buying a smaller house?
Owning two smaller houses?
Retiring at 55? 60? 75?
Starting a new career?
Creating a new business?
Quitting work tomorrow?
Paying for my child’s education?
Paying for my grandchild’s education?
Going back to school?
Giving more to charity?
Having a building named after me?
Driving my dream car?
Doing more for my parents?
Helping my child buy his/her first home?

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How can I prepare?
Envision your dreams and your goals.

Your Goals
and Priorities

Confidence
Your Assets Score Statistical
and Income Modeling

Bottom Line: Am I going to be ok?

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How can I prepare?
Envision your dreams and your goals.

Retirement
Retirement Age
Income

Education Goals

Dreams and Estate and

Major Purchases Legacy

Bottom Line: What will your retirement look like?

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How can I prepare?
Envision your dreams and your goals.

Not Enough Target Pause

Confidence

Bottom Line: How confident am I?

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 How can I prepare?
Envision example: The Bennetts

Pam Joe
Age 54 Age 60
Advertising Sales EMT Supervisor
Makes $90k / year Makes $60k / year

What ifs
• Retirement – when and how
much?
• Mountain cabin

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How can I prepare?
Envision example: The Bennetts

Bank Accounts $30,000

Investment Accounts $200,000

Retirement Accounts
401(k)s $400,000 $250,000

Annual Savings $30,000

Projected Pensions
and Social Security $62,761

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 How can I prepare?
Envision example: The Bennetts

Ideal Recommended Acceptable

Pam – Retires In: 1 Year 3 Years 5 Years

Joe – Retires In: 1 Year 3 Years 5 Years

Retirement Income $95,000 $93,000 $85,000

Portfolio (% Stocks) 60 80 90

Confidence Score

57 82 96

The following information is hypothetical and is provided for informational purposes only. The solutions discussed may not be suitable for your personal
situation, even if it is similar to the example presented. Investors should make their own decisions based on their specific investment objectives and financial
circumstances. It should not be assumed that the recommendations made in this situation achieved any of the goals mentioned.

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 How can I prepare?
Envision example: The Bennetts
Buy a Log Cabin
Initial Buy Mountain and Work 2
Recommendation Cabin Years Longer

Pam – Retires In: 3 Year 3 Years 5 Years

Joe – Retires In: 3 Year 3 Years 5 Years

Retirement Income $93,000 $93,000 $93,000

Portfolio (% Stocks) 80 80 80

Mountain Cabin 200,000 200,000

Confidence Score

67 81 82
The following information is hypothetical and is provided for informational purposes only. The solutions discussed may not be suitable for your personal
situation, even if it is similar to the example presented. Investors should make their own decisions based on their specific investment objectives and financial
circumstances. It should not be assumed that the recommendations made in this situation achieved any of the goals mentioned.

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 How can I prepare?
Ongoing review.

$1,000,000

$900,000
90
Investments

$800,000

$700,000 75
$600,000

$500,000
Toda
$400,000 y
54 55 56 57 58 59 60
Age

The Target Zone may help you evaluate your Recommended Plan. It does not represent a projection of future portfolio values. The target zone graph is shown in
actual dollars, Envision uses Monte Carlo simulations, which are based on historical and hypothetical information; there is no guarantee that actual future
investments will perform in accordance with the simulated trials.
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How can I prepare?
Important information.

• IMPORTANT: The projections or other information generated by Envision

regarding the likelihood of various investment outcomes are hypothetical
in nature, do not reflect actual investment results, and are not guarantees
of future results. Results may vary with each use and over time.

• Envision Methodology, Selection Criteria and Key Assumptions:

Envision’s simulation model incorporates assumptions on inflation,
financial market returns and relationships between these variables based
on an analysis of historical data. Using Monte Carlo simulation and data
provided by the Center for Research in Securities Pricing, Envision
simulates thousands of potential outcomes over a lifetime of investing.
The varying historical risk, return and correlation between the assets is
based on the indexes over several market cycles. If the indexes do not
provide enough historical data to gauge asset-class performance, we may
use the data of related asset classes. Elements of this report’s
presentations and simulation results are under license from Financeware,
Inc., patents pending. Copyright: 2009 Financeware, Inc. All rights
reserved.

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How can I prepare?
What to expect from your Financial Advisor.

 Written plan clearly reflecting your goals and vision for the
future.
 Regular updates on progress toward meeting established
goals.
 Formal meetings with advisor at least twice each year.
 Check-ins with advisor every 30-60 days.
 Timely advisor follow up that meets your needs.
 Financial advisor who listens to your needs and objectives and
creates a customized plan around them.

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How can I prepare?
Learn, engage and grow.

• The most important thing to do is get started.

• Complimentary Envision consultation
• EnvisionYourGoals.com
• Wellsfargoadvisors.com
• Good reading

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Any questions?

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Thank you

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Insured Guarantee value
Wells Fargo Advisors, LLC, Member SIPC, is a registered broker-dealer
and a separate non-bank affiliate of Wells Fargo & Company. Insurance
products are offered through our affiliated nonbank insurance agencies.
Wachovia is a Wells Fargo Company.

© 2009 Wells Fargo Advisors, LLC. All rights reserved. 1009-0242A

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