A Woman’s Guide to Financial Security Project # /31/2008 Hidden bookmark slide – not part of the presentation This is not a complete presentation or module but individual slides designed for use as needed as part of a presentation.

A Woman’s Guide to Financial Security Event and date

Who Are You?

Sister

Mom Who Are You?

Sister Who Are You? Sister Mom Neighbor

Who Are You? Sister Mom Neighbor Best friend

Sister Mom Neighbor Best friend Wife Who Are You?

Sister Mom Neighbor Best friend Wife Co-worker Who Are You?

What Is Important to You? Comfort of home Safety of children Relationships Physical health Financial security

What Is Your Role in the Household? Manage finances Make buying decisions Contribute income Earn primary income

1 U.S. Department of Labor 2 National Center for Women & Retirement Did You Know? Women make up 74% of the elderly poor Average age of widowhood is 56 1 Studies show that 30%–50% of marriages end in divorce 80%–90% of women will be solely responsible for their own finances at some point in their lives 2

Take Control of Your Financial Security

You Can Choose to Be Prepared

What Is Financial Security? Creating an emergency fund Investing for a child’s education Saving for major purchases Providing for an elderly parent Preparing for retirement

Why Is Saving for the Future Important to You? Women earn less Women change job status more often Women live longer

1 U.S. Census Bureau 2 U.S. Dept. of Labor Women Earn Less 2007 median income: 1 ◦ $45,113 for men ◦ $35,105 for women 26% of women workers are employed as part-time workers 2

1 National Center for Policy Analysis 2 Benefits Quarterly Women Change Job Status More Often Women are more likely to leave their jobs for child or elder care 1 On average, a woman takes about 12 years “off” to care for children or elderly parents 2

1 Employee Benefit Research Institute 2 National Center for Policy Analysis Women Change Job Status More Often Women in the workforce have a median job tenure of 4.4 years 1 For every year a woman takes off, it takes her five years to catch up financially 2

Women Live Longer Women live about seven years longer than men 1 U.S. life expectancy for women is 82 years 1 On average, a female retiring at age 55 can expect to live another 27 years 1 1 U.S. Department of Labor

You Have What It Takes to Be an Educated Investor

Let’s Get Started! Understand the basics Choose an investment strategy Put your plan into action

Understand the Basics Stocks and bonds Mutual funds Dollar cost averaging Power of compounding

Stocks and Bonds Fixed Income Assets Bonds Equity Assets Stocks “Loaned” investment“Owned” investment Bonds, money market instruments, Treasury notes, etc. Shares of American and international companies Less volatile returns with reduced risk Volatile returns with increased risk 5–8% historical returns9–12% historical returns Historical returns do not guarantee future returns.

Mutual Funds Pools of money from multiple investors (shareholders) Invested in various securities (stocks, bonds, etc.) in order to achieve a common objective Monitored by a full-time money manager Investments that have a share price (except for a money market fund), yield and return that will vary over time

Dollar Cost Averaging Investing a fixed amount of dollars at set intervals regardless of the price. This concept aims to purchase more shares when the price is low and fewer when the price is high, potentially lowering the average price you pay for your shares over time.

The Power of Compounding To accumulate $100,000 by age 65 Age 50Age 40Age 30 Monthly contribution$290$105$44 Total contributions$52,200$31,500$18,480 Total return$47,800$68,500$81,520 Total accumulation$100,000 Based on hypothetical 8% annual earnings. This is an illustration to show the concept of compounded return and not intended to imply the past or future performance of any of the Funds. This is a hypothetical example for illustration purposes only, not indicative of future fund performance.

Choose an Investment Strategy Need help? Asset allocation approach One-choice approach

Identify Your Investment Phase 1 Step Building phase Growing phase Preserving phase

Determine Your Risk Tolerance 2 Step How much risk can you handle? How much risk do you need?

3 Step Locate your investment phase Identify your risk rating Select Your Investor Profile

32 GuideStone Funds

4 Step Asset Allocation Conservative Allocation Fund Balanced Allocation Fund Growth Allocation Fund Aggressive Allocation Fund Choose Your Funds

4 Step Select Funds Fixed Income Select Funds Equity Select Funds Choose Your Funds

Risk/Reward Characteristics

The One-Choice Approach: MyDestination Funds ® Date target or life cycle funds Comprehensive investment strategy Dynamic asset allocation Fixed retirement date A simplified approach ◦ Stay in a single fund ◦ Make adequate contributions

The MyDestination Funds ® and Asset Allocation Funds attempt to achieve their objectives by investing in the GuideStone Select Funds. By investing in these “fund-of- funds,” you will incur the expenses of the Funds in addition to those of the underlying Select Funds. You may invest in the Select Funds directly. The MyDestination Funds and Asset Allocation Funds are also subject to the risks of the underlying funds that they hold. An investment in the Money Market Fund is not insured or guaranteed by the FDIC or any other governmental agency. Although the fund seeks to maintain a value of $1 per share, it is possible to lose money. Target composition is subject to change.

You should carefully consider the investment objectives, risks, charges and expenses of GuideStone Funds before investing. For a copy of the prospectus with this and other information about the funds please call GUIDE ( ) or visit to view or download a prospectus. You should read the prospectus carefully before investing. GuideStone Funds shares are distributed by PFPC Distributors, Inc., a registered broker-dealer and underwriter of the funds,760 Moore Rd., King of Prussia, PA Shares of the Capital Preservation Funds are issued and offered by GuideStone Financial Resources.

Put Your Plan Into Action Enroll today or increase contributions Find extra money Deal with debt Stay the course!

Enrollment Form and Salary Reduction Agreement

Finding Extra Money Lower your tax withholding through your employer Check fees and interest rates on all credit cards (these can be negotiated) Consider consolidating credit card debt to a low interest or home equity loan Average your utility bills Utilize all “pre-tax” programs offered by your employer Watch ATM and checking account fees Raise deductibles on insurance Consider refinancing your home or car if market interest rates are 1½% lower than what you are paying

Dealing with Debt Good vs. bad debt Warning signs of too much debt The minimum payment trap

Dealing with Debt Avoid the minimum payment trap Assumes $5,000 debt, 16% interest, no additional charges Source: Bankrate.com Monthly PaymentTotal PaidYears to Pay Off Minimum$7,43112 $200 fixed$6, $225 fixed$5, $250 fixed$5,8542

Conquering Bad Debt Stop borrowing Use cash or a debit card instead Prioritize your debt repayment

Using Debt Wisely Importance of your credit history Obtaining your credit report ◦ ◦ Call (877) Correcting mistakes in your credit report

Staying the Course Resist the temptation to “time” the market Invest a percentage of your salary and increase it as you can Review portfolio allocation over time

Take Control — It’s Your Future

Accept the Challenge!

For More Information [Name of presenter] [Presenter’s address] GUIDE ( ) [Presenter’s phone number]

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