TAKE CHARGE OF
YOUR FINANCIAL
FUTURE
A Woman’s Guide to
Investing for Retirement
www.protective.com
www.protective.com
CAC.5068
(05.13)
TODAY,
I set a new goal.
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TODAY,
I found my inspiration.
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TODAY,
I started investing
in me.
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TODAY,
I reached a little higher.
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TODAY,
I’m an example…for her.
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TODAY,
I began to paint
a new picture
of my future.
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TODAY,
I get to make the
decisions.
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TODAY,
I feel confident
about tomorrow.
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TODAY,
I’m building a plan
that’s unique to me.
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TODAY
is a new day.
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TAKE CHARGE OF
YOUR FINANCIAL
FUTURE
A Woman’s Guide to
Investing for Retirement
www.protective.com
www.protective.com
CAC.5068
(05.13)
Taxes and investment advice
Protective Life Insurance Company, Protective Life and Annuity Insurance Company and
Investment Distributors, Inc. are not registered as investment advisors and this brochure
is not intended to provide investment advice. Following this presentation, contact your
Financial Advisor for investment advice specific to your situation.
This presentation contains statements regarding the tax treatment of certain financial
assets and transactions. You should consult your legal or tax adviser regarding your
individual situations before making any tax-related decisions.
The tax information within this presentation represents only our current understanding of
the law in general and are not to be relied upon by Purchasers. The tax treatment of life
insurance, Individual Retirement Accounts (IRAs), Income, estate, gift, and generation
skipping tax rules are subject to change at any time. Neither Protective Life nor its
representatives offer legal or tax advice.
www.protective.com
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Agenda
• Why take charge of your financial future
now?
• Setting your financial goals
• How will you get there?
• Building your portfolio
• How do you get started?
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Why take charge of your financial
future now?
What does the future hold?
Uncertainty.
– Economy
– Pensions
– Medicare
– Social Security
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Why take charge of your financial
future now?
• Other concerns for women:
– Lower earnings
– Longevity
– Widowhood
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TODAY,
I set goals that I
know I can reach.
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What do you want to achieve?
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Setting your financial goals
• Keep a picture of your goal in mind to
help you focus on reaching it.
• Quantify your goal to make it easier to
plan.
• Create your plan to begin investing for
retirement.
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How will you get there?
• “Finding” money
• Asset growth
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THE LATTE FACTOR:
Sacrifice small, daily
purchases to “find” money
to invest.
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How will you get there?
The Latte Factor
$6 day
7 days a week
52 weeks a year= $2,184 a year
Saved
Invested
Interest
Final balance
$2184/year
$2,184/year for
20 years
5%
$74,972
$43,776 TOTAL
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How will you get there?
How long will it take me to double my money?
Use the Rule of 72.
72 ÷ interest rate = number of years
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How will you get there?
• Compounding
– Time is money
– The sooner you start to invest, the
less you will need to invest in total.
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How will you get there?
Compounding
Two different approaches: Jennifer and Ann
Jennifer
Ann
Investments at
ages 22 – 42
(20 years)
Investments at
ages 43-67
(25 years)
Interest
Final
balance
$2,000/year
for 20 years
$40,000 total
$0
7%
$476,150
$0
$2,000/year
for 25 years
$50,000 TOTAL
7%
$135,352
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TODAY,
I figured out the tools that could
get me from here to there.
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Building your portfolio
• Tax-deferred savings: more money to you
• Investment vehicles:
– 401(k) and 403(b) plans
– IRAs
– Annuities
– Life insurance
– Stocks, bonds, mutual funds
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Building My Portfolio
• Take advantage of your workplace savings
plan:
– 401(k)/403(b)
– Tax-deferred contributions
– Employer match
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Building your portfolio
• 401(k) and 403(b) plans
Who
Tax
advantages
Contributions
401(k)
Companysponsored
Before tax
dollars
Up to $17,500
(an addt’l $5,500 if Taxable
over 50)
403(b)
Nonprofit,
educationsponsored
Before tax
dollars
Up to $17,500
(an addt’l $5,500 if Taxable
over 50)
Withdrawals
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Building your portfolio
• IRA Basics
Who can
participate?
Anyone
Traditional
under age
IRA
70½
Roth IRA
Anyone
Tax
advantages
Contribution
limits
Before tax
dollars
Up to $5,500
(up to $6,500 if
over 50)
After-tax
dollars
Up to $5,500
(up to $6,500 if
over 50)
Withdrawals
Taxable
Required after
70½
Tax-free
No required
age
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Building My Portfolio
• Stocks, bonds and mutual funds:
Accumulation with varying levels of risk
– Bonds: fixed-income security, low risk
– Stocks: higher potential for returns, higher risk
– Mutual funds: invest in stocks, bonds, and
other assets; professionally managed
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Building your portfolio
• Another investment option: Annuities
– Contract with an insurance company
– Regular payments
– Protect a portion of your retirement from
volatility risk
– Offer opportunities for tax-deferred growth
– Draw from your retirement income
– Provide payments for life
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Building your portfolio
• A nontraditional investment choice:
Life Insurance
– Build cash value
– Long-term investment
– Tax advantages
– Dual protection
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TODAY,
I thought about
my retirement,
with confidence.
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Where do you start?
• Review your notes and booklet.
• Establish your goals.
• Determine how you will start building your
money to invest.
• What is your “latte factor”?
• Meet with your advisor to help you determine
your next steps.
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Where do you start?
When meeting with your advisor, bring
along:
• Your goals
• Important documents
• Recent statements
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Important Information
Protective and Protective Life refer to Protective Life Insurance Company (PLICO) and its affiliates,
including Protective Life & Annuity Insurance Company (PLAICO). Insurance products issued by
PLICO in all states, except New York, and in New York by PLAICO. Securities offered by Investment
Distributors, Inc. (IDI). IDI is the principal underwriter for registered products issued by PLICO and
PLAICO. All three companies are located in Birmingham, AL. Product availability and features may
vary by state. Each company is solely responsible for the financial obligations accruing under the
policies it issues.
Variable annuities are long-term investments intended for retirement planning and involve market risk
and the possible loss of principal. Investments in variable annuities are subject to fees and charges
from the insurance company and the investment managers.
Investors should carefully consider the investment objectives, risks, charges and
expenses of a variable annuity before investing. This information is contained in
the prospectus for a variable annuity and its underlying investment options.
Prospectuses may be obtained by calling Protective Life at 800.456.6330.
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Questions and Answers
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