Women & Investing: Take Control of Your Wealth Proper Planning

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1 Kathleen M. Palumbo Senior Director Investments Peter C. Palumbo Financial Advisor Women & Investing: Take Control of Your Wealth Proper Planning

2 Women & Investing: Take Control of Your Wealth Financial understanding can help women invest and preserve their money wisely. Oppenheimer & Co. Inc. ( Oppenheimer ) is a leading national investment boutique with over 3,000 experienced professionals in major financial centers and local communities across the United States. Over 1,300 Oppenheimer Financial Advisors, with extensive experience in the industry, help successful individuals, families, corporate executives, businesses and institutions grow, manage and preserve their financial assets. With offices located throughout the United States and South America and investment banking operations in the U.K., Asia and Israel, Oppenheimer has a unique combination of local presence and national resources that enables its Financial Advisors to provide attentive, personalized service and services tailored for each client. Oppenheimer professionals have earned it an excellent reputation among investors by being responsive to client needs, operating with the highest standards of objectivity and integrity and putting clients interests first. 2

3 Women & Investing: Take Control of Your Wealth As a woman, you have probably spent a great deal of time on the job or at home meeting other people s needs. At Oppenheimer, your financial needs come first. Our goal is to help insure your financial goals are understood and, to the best of our abilities, met by: Listening. Your Financial Advisor listens as you explain your short- and long-term goals and draws you out to get a full picture of your responsibilities. Responding. First, your Financial Advisor analyzes what you ve said, then responds with an investment strategy designed with your objectives, your risk tolerance and your goals in mind. Implementation. Your Financial Advisor shows you a variety of investments selected from our open-architecture platform with your needs in mind. Offering Informed Choices. Your Financial Advisor shows you a variety of investments, products and services selected as the likeliest to help you achieve your goals. My mother told me to be a lady. And for her, that meant be your own person, be independent. Ruth Bader Ginsburg Following Up. Your investments are monitored and, as needed, rebalanced. You receive regular reports and are encouraged to speak with your Financial Advisor whenever you have questions. Oppenheimer offers access to a full range of traditional and nontraditional products and services. Our goal is to help you with investment strategies for your needs, both immediate and long term. 3

4 Putting Your Savings Where Your Goals Are Women become Supreme Court Justices, ambassadors and members of Congress or the Cabinet, college presidents and CEOs. They raise their families and rebuild their community. None of these women achieves her goals without intense thought, planning and effort. Something curious may happen, though. Women who have already demonstrated the ability to make good decision sometimes lack confidence that they know enough to manage their own investments. We at Oppenheimer are convinced that your basic sense and life experience can help you educate yourself about investments what types you feel comfortable with; what level of risk you feel comfortable with and how to select an experienced Financial Advisor with whom you can develop a working relationship based on mutual respect and trust. We ask justice, we ask equality, we ask that all the civil and political rights that belong to citizens of the United States, be guaranteed to us and our daughters forever. At Oppenheimer, our Financial Advisors are dedicated to working with you over the long run to develop strategies that will help you maintain your life and your money your way. Declaration for Women, July

5 Planning Considerations Because your skill sets have already brought you this far, you can logically assume you can learn how to make prudent financial decisions. When women thrive, all of society benefits, and succeeding generations are given a better start in life. Kofi Annan Women may have a different relationship to money than most men. You re likely to live an average of five years longer. When a loved one needs care, chances are that you ll be the one to provide or arrange for it. You re likelier to take time off work to raise children and care for elderly parents, meaning that you may have less time to contribute to your retirement plans. You may have already used your savings in a family crisis. Do any of the following statements sound familiar? You want to learn more about how your financial and life goals mesh. You have decided that you need a financial-planning strategy that uses long- and short-term investments and insurance to help you reach your financial goals. You used to permit another family member to handle your financial concerns, but now find this unacceptable. You ve put off learning about investments and fear risk as an investment tool. You ve let emotions, hindsight or hearsay drive previous investment decisions and are determined not to do that again. Your investments have been either too scattered or too concentrated. You re concerned about reclaiming your savings. 5

6 From Day-to-Day Investments to Investment Strategy Managing your wealth is a lifelong process of educated decisionmaking that should evolve in parallel with your life s progress. Starting Out. Develop habits for good fiscal health. Establish Yourself. Craft strategies to create and manage future wealth. Building Wealth. Broaden your strategies to help increase and preserve wealth. Vintage Years. Enjoy what you have created, live comfortably in retirement and create a lasting family, philanthropic or cultural legacy. Financial literacy is based on common sense, good fiscal habits and expanding knowledge base. Once you decide to participate in, rather than delegate investment decisions, consider taking the following steps outlined in the next few pages to help work towards building, or enhancing your financial foundation. 6

7 Developing Your Own Financial Infrastructure Build a team. If your parents encouraged you to save, they were your first financial advisors. Now you need more than that. For example, you may want a tax professional, a lawyer, an insurance agent and a mortgage broker as well as a Financial Advisor. Oppenheimer has the capability to combine investment, insurance and other services so you can streamline your personal financial operations. A vital tenet of our Financial Advisors is that they sit on the same side of the table as our clients. We welcome your CPA, attorney and other financial professionals to become part of our strategy sessions. 7

8 Developing Your Own Financial Infrastructure Adapt your investment strategies to your life. As you evolve from just saving to investing, your portfolio could take many forms. Some of the most common are: 401(k) or 403(b) IRA Roth IRA Trust Accounts Professional managed accounts You may also have other assets: a business, a home, a second home, an inheritance, perhaps collections of art objects or other valuables. You and your financial team should integrate these assets into your overall wealth management strategy. 8

9 Developing Your Own Financial Infrastructure Learn the different types of available investments. The market consists of a complex array of investment products and strategies, not all of which will be right for you. You need to understand how they work, how they work together, and what makes the most sense for your goals and your life. Women s empowerment is intertwined with respect for human rights. Mahnaz Afkhami Stocks Bonds Mutual funds College funds Professional managed accounts Retirement accounts And many more 9

10 Developing Your Own Financial Infrastructure A Financial Advisor can help you choose accounts and product types that are appropriate for the various stages of your life. Tax Implication. Seek to understand the tax consequences of your investments and how best to try to keep what you have worked so hard to save. Oppenheimer & Co. Inc. does not give legal or tax advice. However, your Financial Advisor will work with clients, their attorneys and tax professionals to ensure all of their needs are met and properly executed. 10

11 Developing Your Own Financial Infrastructure Retirement and Passing on Your Wealth. You have worked hard to amass your wealth, from defining your goals to meeting them, choosing advisors, coordinating investments and always maintaining clarity on what you want. As you look toward the future, consider the following questions: How should I fund my retirement? What can I expect from Social Security? How do I factor inflation into my retirement strategies? You should maintain or update documents such as trusts, your will, a living will, powers of attorney and medical powers of attorney. These documents should be readily available to loved ones as well as your professional team because they will speak for you and how you wish to be treated when or if you cannot. The retirement solutions you arrive at will help you make the next series of decisions. What long-term-care policy is best designed to care for me? How can I best structure my estate to provide for loved ones and manage tax consequences wisely? How can I continue to support my philanthropic goals? 11

12 Financial Preparation What other questions do I need answered? is one of the most valuable questions you can ask about anything. When it comes to financial preparation, we suggest asking: What should be considered for beneficiaries? If you are married or in a domestic partnership, learn what legal arrangements are in place in case you or your partner passes on. This means making sure all beneficiary designations are correct and current. Even if you are single, you should update the names of beneficiaries for any major life events such as marriage, divorce, widowed or family expansions. What exactly is success? For me it is to be found not in applause, but in the satisfaction of feeling that one is realizing one s ideal. Anna Pavlova ( ) How should I allocate my assets? Being too conservative or hoping things will all work out somehow will probably do more harm than good. To determine which assets will work well for you and with one another, you need the assistance of an experienced Financial Advisor who will help you work towards your financial goals as well as how much investment risk you are comfortable taking. The right Financial Advisor will help you grow your knowledge as well as your wealth. How do I learn what can I expect from Social Security? Benefit statements are sent out on your birthday. However, you can contact the Social Security Administration to get an estimate or calculate them by going to How do I factor inflation into my retirement strategies? In 25 years, everything you buy will cost about twice as much as it does now. So, if you ve estimated you need $75,000 to live on, 25 years from now, you may need $150,000 just to retain your current standard of living. 12

13 Financial Preparation Financial literacy although it may never be too late to learn, the best time to start is now. What other questions do I need answered? is one of the most valuable questions you can ask about anything. When it comes to financial preparation, we suggest asking: How can I develop tax smarts? Your tax professional, like your Financial Advisor, is a resource and, we hope, a trusted source of knowledge. Make certain that you learn what you need to know at least, enough to think about the tax consequences before you make a major financial decision. Your Financial Advisor will be happy to consult with your tax advisor. How do I manage my finances in my later years? As increasing numbers of people attain greater ages, you will need to prepare so you can live well without the risk your money will run out. Many consider a long term care policy to ensure that they will have the health care they need in later life. Discuss with your Financial Advisor investment strategies that can help you keep growing your assets even after you are retired or, alternatively, to withdraw them in such a way that you do not run through them all. How do I control how my wealth is distributed after death? There are many ways of declaring your intentions in addition to a Will. Estate-planning solutions can help protect your heirs from problems such as asset transfers, intellectual property and care of minors. If you have knowledge, let others light their candles in it. Margaret Fuller Adding an Oppenheimer Financial Advisor to your team means a knowledgeable, experienced professional will help you consolidate your retirement accounts, savings and other assets into one long-term investment strategy designed to accommodate each phase of your life, your ability to tolerate risk, your financial goals and a reality check about whether you re making and/or saving enough to achieve them. 13

14 Retirement: Hatching Your Nest Egg Most Americans spend more time planning for vacations and holidays than planning for their retirement. Women & Investing Over 75% of women are widowed at an average age of 56, 1 in 4 of these women are broke within two months of being widowed.* This month we re focused on Retirement: Hatching Your Nest Egg. Women have truly become a force to be reckoned with in the workplace and society at large 51% of management and professional jobs are held by women in 2010.** Women have more economic clout. As many as 9 out of 10 women will be solely responsible for their finances at some point in their lives. The consequences of such circumstances can financially cripple many women. * National Center for Women and Retirement Research, August 2009 ** The Economist: We Did It! What happens when women are over half of the workforce (01/02/10) 14

15 Retirement Services: Proper Planning Save for Your Retirement Traditional IRA for you, your spouse and your children Roth IRA for contributions and conversions Rollover IRAs don t forget your 401(k) account Plan for Your Retirement Retirement Reality Check Oppenheimer has tools that can help you determine if you re on track for a comfortable retirement Roth or Traditional? we can help you to make this important decision, whether it s your 401(k) or your IRA IRA Consolidation bring your IRAs under one roof for comprehensive oversight, fee reduction and simplification Invest for Your Retirement Access to a wide variety of non-proprietary mutual funds, private investment managers and alternative investments for qualified investors 15

16 Professional Profile Kathleen M. Palumbo Kathleen M. Palumbo Senior Director - Investments Phone: (314) kathy.palumbo@opco.com Peter Charles Palumbo Financial Advisor Phone: (314) peter.palumbo@opco.com Biography Kathy Palumbo joined Oppenheimer & Co. Inc. in Today, she is the thought leader of an established, wellrespected practice. She is not a traditional stock picker, but rather a seasoned investment advisor who seeks to differentiate herself from other advisors by providing customized financial solutions to clients striving to optimize professional money management and estate planning strategies. Before coming to Oppenheimer, Kathy spent 5 years at Stifel Nicholas. Prior to that, she made a career change that turned the skills she had learned as a Registered Nurse from the healthcare industry into the financial services industry. A graduate of St. Louis University, Kathy holds the General Securities Representatives License (Series 7) and Uniform Investment Adviser Law Examination (Series 65). She is also licensed as an agent in Insurance/Annuities in a number of states. Oppenheimer & Co. Inc. One North Brentwood Blvd., Suite 600 St. Louis, MO Peter Charles Palumbo Biography Peter Palumbo joined Oppenheimer & Co. Inc. after more than ten years of experience in advertising and marketing. As part of The Palumbo Group, he is dedicated to providing the group s clients with smoothly functioning and caring service. He provides customized financial solutions to clients and strives to optimize professional money management and estate planning strategies for wealth transfer between generations. Peter graduated from Marquette University with a double major in marketing and organizational management. He holds the General Securities Representatives License (Series 7) and Uniform Investment Adviser Law Examination (Series 65). Fax: (314) Toll Free: (800)

17 Important Information This presentation is intended for informational purposes only and is subject to change without notice. Oppenheimer Asset Management is the name under which Oppenheimer Asset Management Inc. (OAM) does business. OAM and the Oppenheimer Trust Company are wholly owned subsidiaries of Oppenheimer Holdings Inc., which also wholly owns Oppenheimer & Co. Inc. (Oppenheimer), a registered broker/dealer and investment adviser. Securities are offered through Oppenheimer. For further information about the products/programs available and their suitability for your portfolio, please contact your Oppenheimer Financial Advisor. Any discussion of securities, including any hedge funds or other alternative investments, should not be construed as a recommendation or an offer or solicitation to buy or sell interest in any such securities. Securities products offered or sold by Oppenheimer will not be endorsed or guaranteed by Oppenheimer and will be subject to investment risks, including the possible loss of principal invested. Alternative investments are made available only to qualified investors and involve varying degrees of risk. Neither Oppenheimer, OAM, nor the Oppenheimer Trust Company provide legal or tax advice. However, your Oppenheimer Financial Advisor will work with clients, their attorneys and their tax professionals to help ensure all of their needs are met and properly executed Oppenheimer & Co. Inc. Oppenheimer & Co. Inc. Transacts Business on All Principal Exchanges and Member SIPC. All rights reserved. No part of this presentation may be reproduced in any manner without the written permission of Oppenheimer. G RM2 17