Merrill Edge Financial Solutions Advisor

Women and Wealth: Creating
a Strategy That Works for You
Presented by: Dena K. Lewis
Assistant Vice President
Merrill Edge Financial Solutions Advisor™
The information in this presentation is intended to be a general introduction of Merrill Edge’s approach to wealth management. It is not intended to be either a specific offer by any
Merrill Edge entity to sell or provide, or a specific invitation to apply for, any particular product or service.
Merrill Edge offers a broad range of brokerage, investment advisory (including financial planning) and other services. There are important differences between brokerage and
investment advisory services, including the type of advice and assistance provided, the fees charged, and the rights and obligations of the parties. It is important to understand the
differences, particularly when determining which service or services to select.
Any tax statements contained herein were not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state or local tax penalties. Neither
Merrill Lynch nor its Financial Solutions Advisors provide tax, accounting or legal advice. Clients should review any planned financial transactions or arrangements that may have
tax, accounting or legal implications with their personal professional advisors.
Asset allocation, diversification and rebalancing do not assure a profit or protect against a loss in declining markets.
Investing in securities involves risks. There is always the potential of losing money when you invest in securities.
Investments in foreign securities involve special risks, including foreign currency risk and the possibility of substantial volatility due to adverse political, economic or other
developments. These risks are magnified for investments made in emerging markets.
Merrill Edge is available through Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S), and consists of the Merrill Edge Advisory Center (investment guidance) and
self-directed online investing.
MLPF&S is a registered broker-dealer, Member SIPC and a wholly owned subsidiary of Bank of America Corporation.
Banking products are provided by Bank of America, N.A., and affiliated banks, members FDIC and wholly owned subsidiaries of BAC.
Investment products:
Are Not FDIC Insured
Are Not Bank Guaranteed
May Lose Value
© 2012 Bank of America Corporation. All rights reserved. ARX0G6E3 | PPT-12-11-0270 | 6/2012
What we’ll discuss today:
 Women as a force in the economy
and workplace
 The unique challenges women face
 Strategies for retirement planning
 How a Merrill Edge Financial Solutions
Advisors can help
Women: a financial force
Financial preparedness
Ninety-five percent of U.S. women
are involved in household financial
decisions; 25% are the primary
decision makers.1
Are you prepared financially for:
 A long life well into retirement
 What will happen to your loved ones
if you die unexpectedly
 The possibility you, a spouse or a
parent becomes disabled
1 “Financial
Experience & Behaviors Among Women,” 2010–2011 Prudential Research Study,
Women: A force in the economy
Some economic factors about
women today:
 Comprise 43% of top wealth holders1
 Will hold 50% of total private wealth
(estimated to be $22T by 2020).2
 Make more than 80% of all consumer
purchase decisions3
 Spend more than 70% of consumer
dollars worldwide4
G. Raub, “Personal Wealth, 2004,” U.S. Internal Revenue Service, Statistics of Income Division,
Business Review. “The Female Economy “ September 2009
3 A.T. Kearney Consulting Firm, Trendwatching, 2007,
4 Boston Consulting Group “Women Want More: How to Capture Your Share of the World’s Largest, Fastest-Growing Market” August 2009
1 Brian
2 Harvard
Women in the workplace
Some statistics about women in the
 Women comprise 46.7% of the total
U.S. labor force1
 They account for 51.5% of persons
employed in management/professional
 More than 8 million U.S. businesses
are majority women-owned, with an
economic impact of $3 trillion annually,
translating into more than 23 million jobs3
 Women receive more bachelor’s and
advanced college degrees than men4
1 Women’s
Employment During the Recovery, U.S. Department of Labor, 2011,
of Labor Statistics, “Employed persons by detailed occupation, sex, race, and Hispanic or Latino ethnicity,” 2010.
3 The Economic Impact of Women-Owned Businesses in the United States, Center for Women’s Business Research, 2009.
4 U.S. Census Bureau, Current Population Survey, 2010 Annual Social and Economic Supplement, April 2011.
2 Bureau
Unique challenges
Life Expectancy in Years1
Women face unique challenges that
can impact their ability to realize
longer-term goals:
 Increased life expectancy/greater
retirement needs1
 Longer exposure to inflation/increased
health care costs
 Long-term impact of time spent out of
work force2
 Earning 81.2% as much as men as a
full-time worker3
1 U.S.
Census Bureau, Life Expectancy by Sex, Age, and Race: 2008 (most recent statistics).
MetLife Study of Caregiving Costs to Working Caregivers: Double Jeopardy for Baby Boomers Caring for Their Parents, 2011.
3 Bureau of Labor Statistics, Current Population Survey, “Median weekly earnings of full-time wage and salary workers by detailed occupation
and sex, 2010,” April 2011.
2 The
What about your life?
Consider this:
 Are you living for today, maintaining a long-term time frame, or both?
 Is your financial strategy a balance between lifetime financial needs and the
legacy you would like to leave?
 Are you familiar with your investment portfolio? Do you feel you have the right
mix of stocks, bonds and cash to help meet your investment needs?
 Have you determined your tolerance—both financial and emotional—
for investment risk?
 Have you worked to develop strategies to help meet your philanthropic goals?
 Do you have a will and/or trusts? If so, are they current?
Saving for Retirement
Impacts to lifetime earnings
The earnings gap between genders and career interruptions may hinder
a woman’s lifetime earnings
U.S. Department of Labor
U.S. Bureau of Labor Statistics June 2010
Contribute as much as you can
Contribute the maximum to your 401(k) plan or IRA, including
catch-up contributions
Individual Retirement
Accounts (IRAs)1
EmployerSponsored Plans2
under age 50
Age 50+ catch-up
under age 50
Age 50+ catch-up
1 Contribution
2 These
limits are for traditional and Roth IRAs.
contribution limits apply to 401(k), 403(b) and 457b plans.
Start investing early
Career interruptions can be challenging for saving for retirement.
However, investing early can help you later
 Starting at age 22 invests $3,000 per year
for 43 years until her retirement
 Her balance at age 65: $1,067,849
 Starting age 22 invests $3,000 per year
for 8 years.
 She then leaves the workforce until
she is 50
 She then returns for 15 more years and
contributes $6,000
 Her balance at age 65: $726,250
Hypothetical example3, assumes an 8% annual return in a brokerage IRA
1 The
data illustrated in the bar graph is hypothetical and not indicative of the performance of any particular investment. Chart assumes annual IRA
contributions made on January 1 each year of investing. Assumes annual rate of return of 8% on a non-FDIC insured brokerage investment and
tax-deferred compounding in an IRA. Past performance is no guarantee of future results. An account may earn more, may earn less, or may incur
a loss. Final account balances are prior to any distributions, fees, and taxes which would lower the ending balance. Taxes may be due upon
distribution. You may be subject to a 10% additional federal tax if you withdraw prior to age 59½. Investing in this manner does not ensure a profit
or guarantee against loss. Investing in securities involves risks due to price fluctuations.
Explore your tax-deferred account options
There are a variety of retirement account solutions to consider
Do you have access to
a 401(k) right now?
 YES: Maximize contributions
to employer-sponsored
retirement plans or at least
contribute enough to earn the
company match available.
Have you changed jobs?
 YES: Roll over your 401(k)
or other employersponsored retirement plan
from a previous employer
into an IRA.
 NO: Open an IRA and
maximize contributions
including “catch-up”
contributions (if eligible)
Are you married and not in
the workforce?
 YES: Participate in a
‘Spousal IRA’ if eligible
Investment strategies to help meet
your financial goals
Your strategy shaped by your life
Consider this:
 Find the appropriate asset mix for
your goals, timetable and risk
 Keep your accounts diversified to
help protect against market volatility
 Consider whether your investment
selections are likely to keep up with
 Rebalance regularly*
 Review your strategy with your
Financial Solutions Advisor at least
once a year as you near retirement
*Asset allocation, diversification and rebalancing do not assure a profit or protect against loss in declining markets.
A strategy defined by your goals
Your overall investment
strategy depends on:
 Your goals, timetable and
tolerance for risk
? ?
 A balance of stocks, bonds
and cash
 Monitoring and rebalancing
your portfolio
Determining an appropriate asset allocation
Merrill Edge Asset Allocation Models
Source: Bank of America Merrill Lynch Research Investment Committee (RIC) Report, January 2012. Models are for illustrative purposes only.
Merrill Lynch has changed the allocations for each model in the past and may change the allocations in the future, depending upon research and
investment strategy recommendations.
Choices within each asset class
Bonds: Income generation
 Corporate
 Municipal
Stocks: Portfolio growth
 Dividends
 Market capitalization
 International/Emerging markets
Other assets
 Real assets, cash
 Private equity, hedge funds
Some or all alternative investments may not be suitable for certain investors. Many alternative investment products, specifically private equity and
most hedge funds, require purchasers to be “qualified purchasers” within the meaning of the federal securities laws (generally, individuals who own
at least $5 million in “investments” and institutional investors who own at least $2.5 million in “investments,” as such term is defined in the federal
securities laws). No assurance can be given that any alternative investment’s objective will be achieved. Many alternative investment products are
sold pursuant to exemptions from securities registration and, for example, may not be subject to the same regulatory requirements as mutual funds or
other registered securities. In addition to certain general risks, including but not limited to risk of loss of principal, illiquidity of certain investment
vehicles and lack of transparency with respect to fund portfolio holdings, each product will be subject to its own risks, including strategy and market
risk. Certain alternative investments result in the investors’ receipt of tax reporting information.
This information is for illustrative purposes only. It is not intended to serve as investment advice since the availability and effectiveness of any strategy
is dependent upon your individual facts and circumstances.
Merrill Edge Wealth Management Process
We can help you organize your financial life.
 We help you look at your financial life in total and
establish objectives that balance several goals
simultaneously, such as a child’s education, your
retirement and your wealth transfer plan.
 We’ll work with you to build an investment strategy that
allows the different pieces of your financial life to work
together, taking into consideration not only your various
goals, but also the levels of risk you’re prepared to take
to pursue them.
 The strength of your strategy will mean little if it falls
short at execution. We draw from a vast array of
proprietary and nonproprietary products to help you
customize integrated solutions.
 Your relationship with us should be based on
accountability. That means we’ll meet with you to help
you review your progress, measure results against your
objectives and make adjustments as necessary.
Retirement Income Strategies
Longer life expectancy, longer retirement
How long must your
money last?
Life Expectancy Beyond Retirement at Age 65
 People are now
living longer in
50% chance of living to 85
Age 65
25% chance of living to 92
 You may need
income for 20
to 30 years after
your paychecks stop
50% chance of living to 88
Age 65
Age 65
25% chance of living to 94
at least one person has a 50% chance of living to 92
at least one person has a 25% chance of living to 97
A healthy 65 year old female has a 50%
chance of living until 88 or 23 more years.
Source: Annuity 2000 Mortality Table, Society of Actuaries. Figures assume you are in good health.
You need answers to plan effectively
Retirement income planning can help you answer these critical questions
What kind of lifestyle do I want?
When can I retire?
How much will I need?
How can I make sure I don’t run out of money?
How can I recover from losses in my portfolio?
How will I know if I’m on track?
Create a retirement income plan
Understanding your income and expenses can help you structure an
investment strategy to meet essential and discretionary expenses
Consider solutions with a guaranteed*
income stream like annuities to help
meet your essential daily living expenses
Target Spending Level
*All annuity contract and rider guarantees, or annuity payout rates, are backed by the claims
paying ability of the issuing insurance company. They are not backed by Merrill Lynch or its
affiliates, nor do Merrill Lynch or its affiliates make any representations or guarantees regarding
the claims-paying ability of the issuing insurance company. Variable annuities are sold by
prospectus only. Before investing, investors should carefully consider the investment
objectives, risks, charges and expenses of the variable annuity and its underlying investment
options. The current contract prospectus and underlying fund prospectuses provide this and
other important information. Please contact your Financial Solutions Advisor to obtain the
prospectuses. Please read the prospectuses carefully before investing or sending money
Draw Down
Structuring your portfolio for now and later
Merrill Edge uses a threepronged investment
approach to help meet
your needs throughout
 Create an asset allocation
strategy that reflects your
Wealth Transfer
 Align investment objectives,
liquidity and risk tolerance
 Consider various
tax implications
 Asset allocation does not
assure a profit or protect
against loss in declining
Estate planning considerations
The importance of estate planning
Estate planning includes:
 Financial strategy that incorporates
investments, retirement accounts,
life insurance, trusts
 Legal documents as required by state law
 Tax planning as per federal and
state tax laws
 Beneficiary Planning
Special considerations:
 Durable power of attorney
 Living will
 HIPAA health care authorization and release
Distributing your assets per your wishes
Living Trust
 Provides for the distribution of
assets after your death
 Provides benefits while you are
still alive, including during
incapacitation, and after death
 Applies to assets owned in your
name not otherwise the subject of
beneficiary designations
 Allows limited probate
proceedings for pour-over will
 Does not address lifetime
planning, e.g., incapacity
 Applies to all assets titled in the
name of the trust
 Is subject to probate proceedings
 Addresses lifetime management
of assets
 Requires court-appointed personal
 Requires grantor-appointed
Beneficiary planning
It is important to make
appropriate beneficiary
designations to ensure that:
 Your assets pass to your
beneficiaries according to
your wishes
 Your assets avoid the potential
delay and expense of probate
 Your beneficiaries have the
opportunity to extend or “stretch”,
the tax-deferred earning period
of the assets
Putting it all together
Do you have any questions?
We’ve discussed:
 Women as a financial force
 Retirement
 Investment strategies to help
meet your financial goals
 Philanthropy
 Caregiving
 Estate planning strategies
Building and enriching your financial life
 Enjoy a single, comprehensive view of your Merrill Edge and
Bank of America account balances for easier financial management.
 We offer brokerage accounts and IRAs through Merrill Edge, and
checking accounts and CDs through Bank of America, N.A.
 Call the Merrill Edge Advisory Center to speak with one of our
Financial Solutions Advisors.
 We will give you personalized advice and guidance for your
specific situation.
 Merrill Edge clients enjoy clear and transparent pricing.
 Talk to us about our simple account fees, flat rate equity trades
and other benefits.
Building and enriching your financial life
Merrill Edge
Financial Solutions
 Dena Lewis
Merrill Edge Financial Solutions Advisor™
678-686-7364 / [email protected]
 Contact your local Financial Solutions Advisor:
Merrill Edge
Advisory Center
Dena K. Lewis
678-686-7364 / [email protected]
 Go to or
Bank at Work
888-609-4650 to learn more.
Have your money
working for you.
Thank you

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