Charting Your Course - A Financial Guide For Women

CHARTING YOUR FINANCIAL
COURSE: A GUIDE FOR WOMEN
C49257
OUR FOCUS TODAY
> EVALUATE YOUR FINANCIAL HEALTH

> SET FINANCIAL GOALS
> MAKE YOUR MONEY WORK FOR YOU
> MANAGING BEING SINGLE AGAIN
> PUT IT ALL TOGETHER YOUR
FINANCIAL PLAN
KEY FINANCIAL
CHALLENGES FOR WOMEN
DID YOU KNOW?*
> Women still earn only 77 cents to a full-time

working mans dollar.
> Two-thirds of all working women earn less
than $30,000 a year in jobs without pensions.
> Over a lifetime, women will spend 27 years
in the workforce, while men will spend
almost 40 years.
* What People Need to Know About Retirement, National Center for Women
and Retirement Research (WISER), 2008.
SAVINGS CHALLENGES
WOMEN MAY FACE
1. May need to save more money
due to longevity
2. May have fewer years to save
the necessary amount
3. May not be able to save as
much from year to year
COMMON MYTHS ABOUT MONEY
> I need to have a lot of money before I can

start investing
> If my spouse has a health and pension plan,
then I dont need to worry about having my own
> Women and men have the same investment goals
COMMON MYTHS ABOUT MONEY

(continued)
> Women and men receive the same

retirement benefits
> Medicare will take care of my
long-term care needs
EVALUATE YOUR FINANCIAL HEALTH
WHERE DO YOU STAND?
> Organize your financial records

> Check your credit rating
> Review your cash flow
> Review your net worth
> Consider what goals you need to save for
EVALUATE YOUR FINANCIAL HEALTH
CASH FLOW AND NET WORTH

WHAT ARE THEY?
CASH FLOW = THE PATH YOUR MONEY TAKES
INCOME
EXPENSES
POSITIVE OR
NEGATIVE?
NET WORTH = RATIO OF WHAT YOU OWN TO WHAT YOU OWE

ASSETS
LIABILITIES
POSITIVE OR
NEGATIVE?
SET FINANCIAL GOALS
WHAT DO YOU WANT TO ACHIEVE?
PLAN FOR YOUR

Short-term financial goals
Long-term financial goals
10
SET FINANCIAL GOALS
SHORT-TERM FINANCIAL GOALS
> Reduce unnecessary expenditures

Use cash flow information
Reduce debt and increase net worth
> Determine savings priorities

Emergency account, auto purchase, other
> Begin or increase savings for goals

Pay yourself first
Check your tax withholding
Start today
11
SET FINANCIAL GOALS
LONG-TERM FINANCIAL GOALS
> Retirement
> Paying off your mortgage
> Protecting your assets
> Building a financial legacy
12
SET FINANCIAL GOALS
INSURANCE STRATEGIES TO
PROTECT YOUR ASSETS
> Life insurance
> Property/casualty and liability insurance
> Disability income insurance
> Long-term care insurance
13
SET FINANCIAL GOALS
INCOME REPLACEMENT
Disability Insurance
Pays a portion of your income if you become disabled
Additional tool to use to try and protect
your assets
Group disability insurance sometimes available
through your employer via
long-term and/or short-term policies
14
SET FINANCIAL GOALS
LONG-TERM CARE INSURANCE
> Helps:
> you afford appropriate care
> protect your savings and assets
> preserve your freedom of choice
in choosing care
15
MAKE YOUR MONEY WORK FOR YOU
SAVING AND INVESTING BASICS
> Pay yourself first!

> Continue making payments to savings when debt
is eliminated
> Increase contributions when you get a raise
> Take advantage of your company match
> Understand the concepts of compounding
and tax-deferred growth
16
LOOKING FOR OPPORTUNITIES IN A DOWNTURN
CONTRIBUTING MORE
2011 LIMITS FOR SALARY DEFERRAL RETIREMENT PLANS*
403(b)
Plans
Only
* Based upon your salary, you may contribute up to the maximum amount under each scenario represented by the different bars.
**You must be an employee of an eligible teaching institution, hospital, church, home health agency or health and welfare service agency to
be eligible for these contribution limits.
17
LOOKING FOR OPPORTUNITIES IN A DOWNTURN
CONTRIBUTING MORE
2011 LIMITS FOR SALARY DEFERRAL RETIREMENT PLANS*
403(b)
Plans
Only
* Based upon your salary, you may contribute up to the maximum amount under each scenario represented by the different bars.
**You must be an employee of an eligible teaching institution, hospital, church, home health agency or health and welfare service agency to
be eligible for these contribution limits.
18
TRADITIONAL AND ROTH IRAs

GREAT FOR ADDITIONAL
RETIREMENT SAVINGS!
YEAR
IRA*
50+
CATCH UP
TOTAL
$ YEARLY
2011*
$5,000
$1,000
$6,000
* After 2010, indexing may be in $500 increments, subject to inflation.

IRA contribution limits rise for deductible and nondeductible. Traditional and Roth IRAs.
Eligibility to participate in a Roth IRA is subject to income limits.
19
INVESTMENT CONSIDERATIONS
> Investment Risk

> Volatility
> Diversification and Asset Allocation
> Expenses Matter
There is no account fee to own a TIAA-CREF IRA; however, brokerage transaction fees may apply. In addition,
investors are subject to the underlying funds portfolio management fees and expenses.
20
IMPORTANCE OF ASSET ALLOCATION AND DIVERSIFICATION
DIVERSIFICATION CAN HELP

REDUCE PORTFOLIO VOLATILITY*
1926 TO 2010
$10,000
Ending
Wealth
$1,000
$100
$10
$1
$.10
1926
1934
1943
1952
1961
1970
1979
1988
2010
Average
Return
$2,976
9.87%
$133
$93
5.93%
5.48%
$21
3.62%
$12
2.99%
Stocks
Corporate Bonds
Government Bonds
Treasury Bills
Inflation
* Diversification is a technique to help reduce risk. There is no absolute guarantee that diversification will protect against a loss of income. Past
performance is no guarantee of future results.
Source: Ibbotson Associates, a wholly owned subsidiary of Morningstar, Inc. Hypothetical value of $1 invested at year-end 1925. Assumes
reinvestment of income and no transaction costs or taxes. Chart illustrates returns from 1/1/1926 to 12/31/2010.
Benchmarks: S&P 500 Index, Ibbotson U.S. Long Term Corporate Bonds, Ibbotson U.S. Long Term Government Bonds, Ibbotson U.S. 30-Day
Treasury Bills, U.S. Consumer Price Index for All Urban Consumers (CPI-U). You cannot invest directly in an index.
21
TYPES OF RISK
> Interest-Rate Risk

> Inflation Risk
> Market Risk
> Foreign Investment Risk
> Market-Timing Risk
22
SIGNIFICANT DOWNTURNS
ARE NOT UNCOMMON
PERIOD
9/29-6/32
6/46-4/47
8/56-2/57
8/57-12/57
1/62-6/62
2/66-9/66
12/68-6/70
1/73-9/74
1/77-2/78
12/80-7/82
9/87-11/87
6/90-10/90
7/98-8/98
9/00-9/02
11/07 2/09
LENGTH
34 months
11 months
7 months
5 months
6 months
8 months
19 months
21 months
14 months
20 months
3 months
5 months
2 months
25 months
16 months
DECLINE IN S&P 500
-83.4%
-21.0%
-10.2%
-15.0%
-22.3%
-15.6%
-29.3%
-42.6%
-14.1%
-16.9%
-29.5%
-14.7%
-15.4%
-44.7%
-50.9%
Next?
Source: Ibbotson Associates, Inc.; Final Period Source: CREF Investments. Both Sources: Large Company Stocks Standard & Poors
500, which is an unmanaged group of securities and considered to be representative of the stock market in general. The data assumes
reinvestment of all income and does not account for taxes or transaction costs. The average return represents a compound annual return. An
investment cannot be made directly in an index. Past performance is not a guarantee of future results.
23
UNDERSTANDING EQUITY
MARKET VOLATILITY
Equity markets
Constantly react to events and conditions
Small changes in equity assumptions often equate
to large changes in equity values
Changes in equity assumptions often include
reactions to events
24
LOOK FOR THE SILVER LINING

IN VOLATILE TIMES
> When share prices are lower
Dollar cost averaging*
Systematic transfers*
> When interest rates are declining

Refinance your mortgage
Transfer credit card balance to lower rates
> Take advantage of new tax laws

Increased investment opportunities
* Please be advised that systematic investing does not assure a profit, and does not protect against loss in declining
markets. In addition, such a plan involves continuous investment in securities regardless of fluctuating prices, and
the investor should consider his/her financial ability to continue purchases through periods of low price levels.
25
UNDERSTANDING EQUITY
MARKET VOLATILITY
Remember
The trade-off for higher returns is higher risk
in the equity markets
Diversifying asset allocations can mitigate risk
Diversification is a technique to help reduce risk. There is no absolute guarantee that diversification will protect
against a loss of income..
26
UNDERSTANDING DIVERSIFICATION
Spreads risk among different
asset classes
Potentially reduces overall
portfolio volatility
Investment performance for
individual asset classes will vary
To diversify, allocate assets
Non-Equities
Equities
Across Asset Classes

Within Asset Classes
*Diversification does not guarantee against losses
27
ASSET CLASSES
> Guaranteed*
> Money Market
> Fixed Income
> Real Estate
> Equities
* Guaranteed by the claims-paying ability of the issuer.
28
BUILDING YOUR PORTFOLIO

WITH TIAA-CREF
> Option A Create

your own allocation
Use our Asset
Allocation Evaluator
Have an allocation
prepared
> Option B Select one

of our model portfolios
29
WELL HELP YOU

ALLOCATE YOUR PORTFOLIO
CONSERVATIVE
* Based on the claims-paying ability of TIAA. The specific asset allocations shown in the model portfolios were generated
by Ibbotson Associates, one of the nations leading financial advisors. They are based on well-known optimization
techniques, using historical return, volatility and correlation data from indexes like the Russell 1000 stock index. This
optimization procedure is based on assumptions about historical market data, and future market conditions may vary
from these assumptions. The model portfolios presented here were not created specifically for you and may not take
into account your particular retirement goals or investment preferences. The ultimate allocation decision is up to you
after you have considered investment information that pertains to your own personal circumstances.
30
WELL HELP YOU

MODERATELY
CONSERVATIVE
31
WELL HELP YOU

MODERATE
32
WELL HELP YOU

MODERATELY
AGGRESSIVE
WELL HELP YOU

AGGRESSIVE
MANAGING YOUR INVESTMENTS
TIAA-CREF LIFECYCLE FUNDS*:

Asset allocations become more conservative as you approach retirement. As with all
mutual funds, the principal value isnt guaranteed. Also, the target date of the Lifecycle
Fund is an approximate date when investors may begin withdrawing from the fund.
2050
FUND
2025
FUND
2045
FUND
2040
FUND
2035
FUND
2020
2015
2010
FUND
FUND
FUND
Equity Funds
Fixed-Income Funds
2030
FUND
Retirement
Income
Fund
* In addition to the fees and expenses associated with the Lifecycle Funds, there is exposure to the fees and expenses associated with the
underlying investment options. Please note that TIAA-CREF Lifecycle Funds are actively managed, so their asset allocations are subject to
change and may vary from those shown or discussed. Approximately seven to ten years after a Lifecycle Funds target date, the fund may
merge into the Lifecycle Retirement Income Fund or a similar fund.
COMPARE EXPENSES
$10,000 INVESTED OVER 30 YEARS EARNING 6%
2.00%
1.50%
0.50%
EXPENSES
This chart assumes expenses are withdrawn from the account at year-end, based on year-end assets. It is presented for illustrative purposes only and does
not reflect actual performance, deduction of taxes or predict future results of any TIAA-CREF account. Before committing money to an account, be sure to
check its expenses. Refer to the prospectuses available at this seminar for current expenses. However, lower expenses do not mean higher returns.
36
MANAGING BEING SINGLE AGAIN
BECOMING SINGLE AGAIN
If youve become single as a result of being:

Widowed
Divorced
Separated from a long-term partnership
37
IMPORTANT STEPS TO TAKE
Address your emotional needs

Take time for yourself to adjust
Seek professional advice as needed
Ask questions
Assess your finances

Gather important documents
Create new cash flow and net worth statements
Review investing and insurance needs
Check your credit rating/score
38
DIVORCE AND YOUR

RETIREMENT PLANS
> Division of retirement accounts
> Social Security benefits
> Review documents
Beneficiary designations
Property title
> Review your asset allocation after

accounts are divided
39
PUT IT ALL TOGETHER
YOUR FINANCIAL PLAN
> Pay off high interest credit card debt

> Have a financial security fund of in case
of an emergency like a loss of a job
> Buy or evaluate your existing insurance
to protect your family and property
> Have a will and a living will
40
PUT IT ALL TOGETHER
YOUR FINANCIAL PLAN
> If you have a mortgage, understand the rate

and options for refinancing to save money
> Maximize your saving through your employers
retirement plan
> Identify your tolerance for risk for your
investments and align with your asset allocation
> Understand asset diversification, market volatility
and options for allocating your retirement savings
including Lifecycle funds
41
PUT IT ALL TOGETHER
YOUR FINANCIAL PLAN
> Strongly consider opening or contributing

to an IRA to supplement your employer
sponsored savings plan
> If your asset levels are considerable,
consider creating an estate plan for
long term security for your family
> See an Individual Consultant if you need
help building an financial plan
42
OUR SOCIAL MEDIA PROPERTIES

Become a Fan
Follow us on
Facebook.com/TIAA-CREF
Twitter.com/TC_Talks
Join your peers in
iPhone App
redefining retirement
iTunes podcasts
43
TAKE THE NEXT STEP
Call us at 800 842-2252

Visit us at tiaa-cref.org
Please note: Neither TIAA-CREF nor its affiliates provide legal or tax advice. Please consult with
your advisors. TIAA-CREF products may be subject to market and other risk factors. See the
applicable product literature, or visit www..tiaa-cref.org for details.
TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors
Services, Inc., members FINRA, distribute securities products. Annuity contracts and certificates
are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement
Equities Fund (CREF), New York, NY. The tax information contained herein is not intended to be
used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties that may be
imposed on the taxpayer. It was written to support the promotion of the products and services
addressed herein. Taxpayers should seek advice based on their own particular circumstances
from an independent tax advisor. This discussion is general in nature, is intended for
informational purposes only and is not intended to provide specific advice or recommendations for
any individual or organization. The circumstances surrounding each situation differ.
2011 Teachers Insurance and Annuity Association College Retirement Equities Fund
(TIAA-CREF), 730 Third Avenue, New York, NY 10017
44
IMPORTANT INVESTMENT
INFORMATION
You should consider the investment objectives,
risks, charges and expenses carefully before
investing.
Please call 877 518-9161 or visit tiaa-cref.org for
a prospectus that contains this and other
information.
Please read the prospectus carefully before
investing.
TIAA-CREF IS HERE FOR YOU

tiaa-cref.org
Life
Insurance
College
savings and
other priorities
Taxadvantaged
saving
No-fee IRAs*
Brokerage
Services
Mutual
Funds
* There is no account fee to own a TIAA-CREF IRA; however, brokerage transaction fees may apply.
In addition, investors are subject to the underlying funds portfolio management fees and expenses.
The products and services referenced above are offered by various entities within the TIAA-CREF
group of companies.
46

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CHARTING YOUR FINANCIAL

COURSE: A GUIDE FOR WOMEN

OUR FOCUS TODAY

> EVALUATE YOUR FINANCIAL HEALTH

DID YOU KNOW?*

> Women still earn only 77 cents to a full-time

COMMON MYTHS ABOUT MONEY

> I need to have a lot of money before I can

COMMON MYTHS ABOUT MONEY

> Women and men receive the same

EVALUATE YOUR FINANCIAL HEALTH

WHERE DO YOU STAND?

> Organize your financial records

EVALUATE YOUR FINANCIAL HEALTH

CASH FLOW AND NET WORTH

NET WORTH = RATIO OF WHAT YOU OWN TO WHAT YOU OWE

SET FINANCIAL GOALS

WHAT DO YOU WANT TO ACHIEVE?

PLAN FOR YOUR

SET FINANCIAL GOALS

SHORT-TERM FINANCIAL GOALS

> Reduce unnecessary expenditures

> Determine savings priorities

> Begin or increase savings for goals

SET FINANCIAL GOALS

LONG-TERM FINANCIAL GOALS

SET FINANCIAL GOALS

SET FINANCIAL GOALS

SET FINANCIAL GOALS

LONG-TERM CARE INSURANCE

MAKE YOUR MONEY WORK FOR YOU

SAVING AND INVESTING BASICS

> Pay yourself first!

LOOKING FOR OPPORTUNITIES IN A DOWNTURN

LOOKING FOR OPPORTUNITIES IN A DOWNTURN

MAKE YOUR MONEY WORK FOR YOU

TRADITIONAL AND ROTH IRAs

* After 2010, indexing may be in $500 increments, subject to inflation.

MAKE YOUR MONEY WORK FOR YOU

> Investment Risk

IMPORTANCE OF ASSET ALLOCATION AND DIVERSIFICATION

DIVERSIFICATION CAN HELP

MAKE YOUR MONEY WORK FOR YOU

> Interest-Rate Risk

MAKE YOUR MONEY WORK FOR YOU

DECLINE IN S&P 500

MAKE YOUR MONEY WORK FOR YOU

MAKE YOUR MONEY WORK FOR YOU

LOOK FOR THE SILVER LINING

> When interest rates are declining

> Take advantage of new tax laws

MAKE YOUR MONEY WORK FOR YOU

MAKE YOUR MONEY WORK FOR YOU

Across Asset Classes

*Diversification does not guarantee against losses

MAKE YOUR MONEY WORK FOR YOU

* Guaranteed by the claims-paying ability of the issuer.

MAKE YOUR MONEY WORK FOR YOU

BUILDING YOUR PORTFOLIO

> Option A Create

> Option B Select one

MAKE YOUR MONEY WORK FOR YOU