Growing your value to women investors Strategies for expanding your practice Not FDIC insured May lose value No bank guarantee
Agenda 1 2 3 4 Growing economic importance Building successful communication Segmenting strategies for practice growth How Putnam can help 2
Growing economic importance
GROWING ECONOMIC IMPORTANCE The biggest emerging market in the world is not China; it s women. We don t pay this market the respect it deserves. SYLVIA ANN HEWLETT Chair and CEO of the Center for Talent Innovation 4
GROWING ECONOMIC IMPORTANCE Women are poised to lead in controlling assets 95% of families will have a woman as the primary financial decision maker at some point in their lives Women are majority owners of 11.6 million businesses, which generate $1.7 trillion in revenues Will control 2/3 of the nation s wealth by year 2030 51% Women control 51% of personal wealth in the United States about $14 trillion Sources: Family Wealth Advisors Council, 2015; BMO Wealth Institute, 2015. 5
GROWING ECONOMIC IMPORTANCE Women s surging economic power EDUCATION PARTICIPATION Women currently earn 57% of bachelor s degrees, 60% of master s degrees, 51% of doctoral degrees 70% of women with children under age 18 participate in the labor force, with 40% being the primary or only breadwinner ELEVATION CONSUMPTION Women hold just over 50% of all management, professional, and related occupations 51% of women see themselves as the CFO of the household 53% are responsible for the household s long-term savings and investments Sources: Center for American Progress, 2017; Department of Labor, 2017, Alliance Life 2016, Allianz. 6
GROWING ECONOMIC IMPORTANCE Women s surging relevance to your practice 38% 90% 53% of women work with a financial advisor (vs. 62% of men) of women on the hunt for an advisor can t find one they connect with gain confidence from advice 67% 62% feel misunderstood would switch advisors (vs. 44% of men) 70% change advisors within one year of the death of a spouse Sources: Empower Lifetime Income Score, 2016; Prudential, 2015; Ernst & Young, 2017; Spectrem Group, 2011, New York Life, 2018, Center of Talent Innovation. 7
Building successful communication
BUILDING SUCCESSFUL COMMUNICATION Women face different challenges EARNINGS GAP Earn only 79 cents for every dollar a man earns INCOME DISRUPTION DUE TO CAREGIVING Lose out on $324,044 in wages and Social Security to care for others LONGEVITY Women now live, on average, 86.6 years versus males who live 84.3 years Sources: Joint Economic Committee, 2016; Rice University, 2015; HealthView Services, 2017; Social Security Administration 9
BUILDING SUCCESSFUL COMMUNICATION Opportunities for advice SOCIAL SECURITY RETIREMENT SAVINGS FINANCIAL PLANNING INVESTMENTS Nearly 55% of Social Security recipients are women * On average, Social Security only replaces about 40% of pre-retirement earnings On average, women may live longer in retirement: A 65- year-old women can expect to live, on average, until age 87, while a 65-year-old man can expect to live to age 84 41% of women wish they had invested more of their money Just over half (52%) of women say they are confident about investing (compared with 68% of men) Over 60% of financial advisors show little to no interest in ESG Investing. The number of HNW women with assets in impact or sustainable investments grew to 18% in 2017 from 9% in 2015 * ssa.gov/pubs/en-05-10127.pdf ml.com/women-financial-wellness-age-wave.html mlaem.fs.ml.com/content/dam/ml/registration/ml-womens-study.pdf U.S. Trust Insights on Wealth and Worth, 2017 **Morgan Stanley Institute for Sustainable Investing, Cerulli Associates. 10
BUILDING SUCCESSFUL COMMUNICATION Women feel a disconnect Women have advice for financial advisors Stop using so much jargon, look out for customer s interests, and maintain a strong code of ethics 71% 90% of women say Wall Street is not in touch with their needs of women do not feel Wall Street pays equal attention to men and women Source: Harnessing the Power of the Purse: Female Investors and Global Opportunities for Growth, Center for Talent Innovation. 11
BUILDING SUCCESSFUL COMMUNICATION Provide a roadmap for financial goals WOMEN S TOP FINANCIAL PRIORITIES While our survey finds that women place a lower priority on saving for retirement than men do (60% vs. 44%), we believe it s a question of, Am I able to save for retirement? rather than, Is saving for retirement important? 64% 57% 44% SHANE BARTLING Senior Consultant, Willis Towers Watson Daily living costs Paying off debt Saving for retirement Source: Willis Tower Watson, 2017 Global Benefits Attitude Survey, 2017. 12
BUILDING SUCCESSFUL COMMUNICATION Communicate your value to women investors SEGMENT POSITION INTEGRATE COMMUNICATE Identify the types of women you work with Define the goals important to those groups Align your value proposition with the needs of your target segments Incorporate these ideas into your online presence Include supporting decision makers in conversations Use social media to identify key prospects and COIs Understand lifestyle goals and savings challenges Create a goals-based plan and educate on solutions 13
Segmenting strategies for practice growth
SEGMENTING STRATEGIES FOR PRACTICE GROWTH Segments and niches SEGMENTS TRANSITIONAL NICHES Co-habitation and partnerships Newly independent and remarried Financial caregivers GROWING LITERACY Millennials professionals Client beneficiaries/heirs Supporting decision makers ACCUMULATING WEALTH Established professionals Business owners/self-employed Working mothers Supporting decision makers DISTRIBUTING WEALTH Retirees Supporting decision makers 15
SEGMENTING STRATEGIES FOR PRACTICE GROWTH GROWING LITERACY Growing literacy Millennial professionals Client beneficiaries/heirs Supporting decision makers HOW TO CONNECT Maintain active presence on social media to build your brand Conduct financial check-ups for beneficiaries Leverage alumni networks Set up a booth at a bridal expo Conduct mock interviews Consulting contracts Target young professionals networking groups Build relationships with realtors PLANNING IDEAS Debt management Bucketed saving/investing Managing workplace benefits 401(k) guidance Systematic investing Tax awareness Health savings accounts ESG incorporation Insurance 16
SEGMENTING STRATEGIES FOR PRACTICE GROWTH ACCUMULATING WEALTH Accumulating wealth Established professionals Business owners/ Self-employed Working mothers Supporting decision makers HOW TO CONNECT Build your brand on social media/offer Virtual Meetings Offer current client referrals Provide a free speaker from the Social Security Administration Institute family wealth days Offer day care providers Host lunch and learns for small business owners Build your own bring a friend networking event PLANNING IDEAS Saving for retirement Debt management Tax planning Asset protection College savings Building home equity Estate planning Insurance Claiming Social Security 17
SEGMENTING STRATEGIES FOR PRACTICE GROWTH DISTRIBUTING WEALTH Distributing wealth Retirees Supporting decision makers HOW TO CONNECT Offer current client referrals Network with independent living organizations, estate attorneys, and senior organization leaders Connect with charitable organizations Help clients establish a donor-advised fund Craft an I love you letter Host retirement seminars in: Over-age-55 residential communities Country clubs/tennis clubs PLANNING IDEAS Income in retirement Drawdown strategy/rmds Navigating Medicare Claiming Social Security Estate planning Tax planning Insurance coverage Charitable giving Donor-advised funds College savings 18
SEGMENTING STRATEGIES FOR PRACTICE GROWTH TRANSITIONAL NICHES Cohabitation and partner households GROWING LITERACY ACCUMULATING WEALTH HOW TO CONNECT Create a family chart to determine who financial stakeholders are in current client s families Partner with realtors to identify couples and partners with a financial advice need Keep in touch with other household members by recognizing birthdays or key life events Gift a financial plan to a newly engaged or partnered beneficiary PLANNING CONSIDERATIONS Special considerations for health insurance IRA account limitations Taxation options Revocable trusts Healthcare proxys/directives Durable power of attorney Irrevocable life insurance trust DISTRIBUTING WEALTH 19
SEGMENTING STRATEGIES FOR PRACTICE GROWTH TRANSITIONAL NICHES Newly independent and remarriage GROWING LITERACY ACCUMULATING WEALTH DISTRIBUTING WEALTH HOW TO CONNECT Use FindLaw.com to find divorce attorneys and estate planners to partner with Create a financial life book to help guide decision making Create a consulting tree to become a key resource to divorcing clients Build an ongoing personal relationship with supporting decision-makers well before wealth transfer PLANNING IDEAS Budgeting Insurance coverage Tax considerations Fixed annuity planning Investment education Beneficiary designation Long-term care Remarriage considerations Estate planning 20
PRACTICE TRANSITIONAL NICHES Financial caregivers GROWING LITERACY ACCUMULATING WEALTH HOW TO CONNECT Partner with local senior organizations to host educational events on financial caregiving. Ask current clients if they need support with financial coordination for a loved one Use 2-1-1 to connect and establish relationships with key non-profits. Ask current clients about their plan for financial care in later years PLANNING IDEAS Durable power of attorney Healthcare proxy Budgeting Government benefit support Account inventory Estate planning Long-term care Asset protection DISTRIBUTING WEALTH 21
HOW PUTNAM CAN HELP Next steps 1 2 3 4 Individualized training for your practice Request a follow-up with a Putnam Specialist Call your Putnam Consultant (1-800-354-4000) Visit putnam.com/advisor 22
FOR INVESTMENT PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION. For informational purposes only. Not an investment recommendation. This information is not meant as tax or legal advice. Please consult with the appropriate tax or legal professional regarding your particular circumstances before making any investment decisions. Putnam Retail Management putnam.com 23