WEALTH BUILDING babm.com/wealthbuilding


14 | JUN/JUL/AUG 2012


TEN THINGS PROFESSIONAL WOMEN SHOULD KNOW ABOUT THEIR FINANCIAL FUTURE


Article written by McGraw Hill and provided courtesy of Morgan Stanley Smith Barney Financial Advisor Douglas Reller


1. ANTICIPATE THAT YOU ARE LIKELY TO LIVE A LONG LIFE AND PLAN ACCORDINGLY. In fact, according to U.S. Census Bureau statistics, a woman who reaches age 50 today without serious health problems can anticipate celebrating her 92nd birthday. Women in the United States, on average, will live to reach 81.1 years of age, compared with men’s life expectancy of just 76.2. 1


DOUGLAS K. RELLER Douglas K. Reller is a Financial Advisor, Financial Planning Specialist for


Morgan Stanley Smith Barney, 100 North Tampa Street, Suite 3000, Tampa, FL 33602. To contact Douglas Reller, please call 813-227-2121, email: douglas.k.reller@mssb.com, http://fa.smithbarney.com/reller/


So if you’ve always left money matters to your husband, start learning why you need to know how to manage on your own.


2. BEWARE OF BEING OVERLY CONSERVATIVE IN YOUR INVESTMENTS. While there is a correlation between your age and the amount of risk you should assume when investing, being too conservative can seriously erode the value of a retirement account. You may need to rely on this money for 30 years or more. That’s why you should think of retirement as a long-term investment. Consider keeping a significant portion of your portfolio in stocks, as long a possible.


3. PAY YOURSELF FIRST. INVEST FOR YOUR FUTURE NOW. By investing systematically over a period of time, you will be surprised how fast your nest egg can grow. Hypothetically, if at age 25 you began investing about $5,000 per year ($417 per month) and earned an 8% return, you could build a nest egg of about $1.3 million at age 65.


4. CHOOSE AN IRA THAT’S RIGHT FOR YOU. Take advantage of complimentary IRA and pension calculators, or ask your Financial Advisor to run a calculator for you, to compare the projected results of contributing to different types of accounts, including transferring assets from a traditional IRA to a Roth IRA.


5. FUND YOUR IRA, 401(K) OR OTHER EMPLOYER- SPONSORED PROGRAM TO THE MAXIMUM. You can build up a good portion of your retirement savings if you contribute the maximum allowable amount into deferred income plans, such as a 401(k). You will you reduce your current taxable income, and the tax-deferred compounding feature of these plans allows you to accumulate more than you would in a comparable account that taxes earnings each year.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44