T. Rowe Price Group, Inc. · NASDAQ:TROW
T. Rowe Price — finding and funding your why investor seminar
41 slides from T. Rowe Price's investor presentation
Slide 1: Finding and Funding Your “Why”: Workshop for Women
Finding and Funding Your “Why”: Workshop for Women Presenter Name Position Title Date T. R O W E P R I C E 1
Slide 2: We’ll explore three topics
We’ll explore three topics: Finding Funding Why Now? Your “Why” Your “Why” T. R O W E P R I C E 2
Slide 3: Why now?
Why now? T. R O W E P R I C E 3
Slide 4: Women are gaining wealth and influence.
Equal Credit Women are 19th Amendment Opportunity Act made American women are expected to it illegal for lenders to gaining wealth Ratified discriminate based on sex or marital status. control $30 trillion in financial assets. and influence. 1920 1974 2030 Source: McKinsey & Company, “Women as the N
Slide 5: 8 out of 10 women will be solely responsible for finances
8 out of 10 women will be solely responsible for their financial well-being at some point in their lives. Source: UBS, Own Your Worth, 2021. T. R O W E P R I C E 5
Slide 6: The Stories in the Headlines Continue...
The Stories in the Headlines Continue... Women have unique Women earn 82¢ to every financial challenges dollar a man earns1 Women of color earn Only 25% of affluent women are 57¢–64¢ to every dollar comfortable making investment decisions on their own.3 a man earns.2 The average woman can expect 40%
Slide 7: Finding Your “Why”
Finding Your “Why” T. R O W E P R I C E 7
Slide 8: Question 1: Better understand your relationship with money
Question 1 Better understand your relationship with money. Plot your answer to the question below along each scale of 1 to 10. Money Habits: Are you a spender, a saver, or somewhere in the middle? 1 2 3 4 5 6 7 8 9 10 Saver Spender T. R O W E P R I C E 8
Slide 9: Question 2: Does learning about investing rank like a root canal?
Question 2 Does learning about investing rank right up there with having a root canal? Plot your answer to the question below along each scale of 1 to 10. Financial Markets: Are you fascinated by the financial markets, or do you feel discussing financial markets is boring or obligatory? 1 2 3 4 5 6
Slide 10: Question 3: How do you feel about risk?
Question 3 How do you feel about risk? Plot your answer to the question below along each scale of 1 to 10. Values: Do you value financial security, meaning you’re more concerned with preserving the original value of your investments than maximizing growth? Or do you value opportunity and feel comfor
Slide 11: Question 4: How confident are you managing your finances?
Question 4 How confident are you in your ability to manage your finances? Plot your answer to the question below along each scale of 1 to 10. Financial Confidence: Do you feel knowledgeable and capable of handling financial decisions? Or do you feel that you need to learn more about finance and inve
Slide 12: Question 5: Involvement in household finances
Question 5 How much involvement would you prefer to have in your household finances? Plot your answer to the question below along each scale of 1 to 10. Involvement: What is your desired level of involvement in major household financial decisions? 1 2 3 4 5 6 7 8 9 10 Defer to partner on Make all fi
Slide 13: Question 6: How comfortable are you discussing money?
Question 6 How comfortable are you discussing money/your finances? Plot your answer to the question below along each scale of 1 to 10. Communication Style: Do you value privacy when it comes to discussing financial matters? Or are you more open to talking about money? 1 2 3 4 5 6 7 8 9 10 Private Op
Slide 14: Knowing your “why” is key to achieving goals.
Knowing your “why” is key to achieving goals. What drives your behavior and actions? Security Independence Empowerment ? T. R O W E P R I C E 14
Slide 15: Results: Determine your household financial role
Results: Determine your household financial role If you primarily selected... 7-10's 4-6's 1-3's you may be a... you may be a... you may be a... Primary Decision-Maker Shared Decision-Maker Delegating Decision-Maker You make all financial decisions You share financial responsibilities You prefer to
Slide 16: Primary Decision-Maker
Primary Decision-Maker Primary motivation: Independence Role and relationship: In charge of financial decisions Frequent check-ins with financial professional Focused on investment performance/strategy and holistic financial health T. R O W E P R I C E 16
Slide 17: Shared Decision-Maker
Shared Decision-Maker Primary motivation: Empowerment Role and relationship: Makes decisions with partner Annual in-person check-ins with financial professional Focused on progress toward goals and learning T. R O W E P R I C E 17
Slide 18: Delegating Decision-Maker
Delegating Decision-Maker Primary motivation: Security Role and relationship: Limited involvement in investment decisions Check-ins only when needed Focused on family needs and preparing for transitions T. R O W E P R I C E 18
Slide 19: Own Your Role
Own Your Role T. ROWE PRICE INVEST WITH CONFIDENCE®
Slide 20: Funding Your “Why”
Funding Your “Why” T. R O W E P R I C E 20
Slide 21: Funding your “why”: Working with a financial professional
Funding your “why”: Working with a financial professional Investment expertise Decision-making guidance Goal setting Source: UBS, Own Your Worth, 2021 T. R O W E P R I C E 21
Slide 22: Funding your “why”: Generational differences
Funding your "why”: Generational differences Managing student loan debt Beginning to save for retirement Millennials Caring for children and parents Saving for education Adjusting your financial strategy because of Gen Xers divorce, death of spouse Small business owners face challenges o
Slide 23: Funding Your “Why”: Evolving Priorities
Funding Your “Why”: Evolving Priorities Liquidity Longevity Legacy To help provide cash flow For long-term goals and For needs that go for short-term expenses needs beyond your own 1–3 Years 4+ Years Now—Beyond Your Lifetime Source: UBS, Own Your Worth, 2021 T. R O W E P R I C E 23
Slide 24: Be intentional about what you want.
Ask yourself… What’s my “why”? Be intentional Take some time to consider: about what – What is my financial vision you want. for myself? – What is my financial vision for my family? – What is my financial vision for my legacy? T. R O W E P R I C E 24
Slide 25: Why Now, Finding Your Why, Funding Your Why recap
Finding Funding Why Now Your “Why” Your “Why” Women have more power Reflect and define what Be intentional about getting and influence and offer a motivates you and how you involved at a level that’s right different perspective—your want to be involved in the for you. voice should be heard. financia
Slide 26: Actions to take tomorrow
Actions to take tomorrow: Understand Your Relationship With Money Better understand your relationship with money Find a “why” that motivates you to Find Your take action “why” Gain confidence and set an example for the next generation by becoming a money mentor Schedule a meeting with your f
Slide 27: Appendix
APPENDIX T. R O W E P R I C E 27
Slide 28: We continue to see a savings gap with the next generation
We continue to see a savings gap with the next generation Working millennial women who are saving in 401(k)s have comparable education to their male counterparts, but… Lower median personal income Lower median contribution rates (6% compared with 8% for their male counterparts) Lower median 401(k) b
Slide 29: How to close the investing gap
How to close the investing gap SAVINGS BENCHMARKS BY AGE—AS A MULTIPLE OF INCOME 15 15% Savings Benchmark Range Approximate Midpoint * 12 11x Multiples of Income *INCLUDING 9x 9 COMPANY MATCH 7x 6 5x Investors should strive to 3x 6% 3 SAVE 2x AT LEAST 1x 0 ½x Consider increasing contributions by 2%
Slide 30: Starting early can enable you to save less and accumulate more
Starting early can enable you to save less and accumulate more Compounded savings over 45 years, saving $500 per month. Years of Saving Account Value at Age 65 no contributions 35 years $861,000 10 years no contributions $981,000 45 years $1,779,771 Age 20 30 65 This chart is for illustrative purpos
Slide 31: Short term liquidity needs
Short term liquidity needs Emergency Reserves Adequate savings can prevent the need to use credit cards or raid retirement accounts. Set aside 3 to 6 Months of Expenses Build over time 20 % of Income T. R O W E P R I C E 31
Slide 32: Managing debt
Managing debt If debt payments are prohibiting saving for your “why”: Target debt Target high-interest debt (credit cards) and accelerate payments Set a timetable Continue payments T. R O W E P R I C E 32
Slide 33: Short term liquidity needs
Short term liquidity needs Emergency Reserves Adequate savings can prevent the need to use credit cards or raid retirement accounts. Set aside Build over time 1 to 2 Years T. R O W E P R I C E 33
Slide 34: Managing debt
Managing debt If debt payments are prohibiting saving for your “why”: Target debt Target high interest debt (credit cards) and accelerate payments Set a timetable Set a timetable (for example, one to three years) Continue payments T. R O W E P R I C E 34
Slide 35: Managing debt
Managing debt Behavioral Approach Economic Approach Tackle lowest balances first and Target highest-interest cards first accelerate payments and accelerate payments $2,500 $1,000 $500 $200 29% 16% 14% 11% Once a card is paid off, reallocate payments to the next card you plan to tackle. T. R O W E P
Slide 36: Managing debt
Managing debt If debt payments are prohibiting saving for your “why”: Target debt Target high interest debt (credit cards) and accelerate payments Set a timetable (for example, Set a timetable one to three years) Continue payments Continue making regular payments on other kinds of debt, like student
Slide 37: Social Security: Survivor benefits
Social Security: Survivor benefits To maximize your survivor benefit, higher earner should claim later Claiming Early Maximize Survivor Benefit $50,000 $50,000 Higher 40,000 40,000 Earner Survivor 30,000 30,000 Higher Earner HIS 20,000 20,000 Survivor SURVIVOR 10,000 Lower Earner HERS 10,000 Lower E
Slide 38: Asset allocation
Asset allocation ■ Stocks ■ Bonds ■ Money Market/Stable Value 90%–100% 90%–100% 80%–100% Age: Stocks Age: Stocks Age: Stocks 20s 0%–10% 30s 0%–10% 40s 0%–20% Bonds Bonds Bonds 45%–65% 30%–50% 65%–85% Stocks Stocks Stocks 30%–50% Age: 40%–60% Age: Age: Bonds 70s and Bonds 50s 15%–35% 60s over Bonds 0
Slide 39: Asset allocation assumptions
Asset allocation assumptions Our asset allocation models are designed to meet the needs of a hypothetical investor with an assumed age 65 retirement and a withdrawal horizon of 30 years. The model allocations are based upon an analysis that seeks to balance long‐term return potential with anticipate
Slide 40: Important Information
Important Information This material is provided for informational purposes only and not intended to be investment advice or a recommendation to take any particular investment action. Information and opinions, including forecasts and forward-looking statements, presented have been obtained or derived
Slide 41: Thank You
Thank You CCON0160194 202309-3104873 T. R O W E P R I C E 41
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