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SPRINGFIELD, Mass., April 12 /PRNewswire/ -- When
it comes to financial planning, women across America will want to ask
themselves some personal questions and do some soul-searching throughout
2004 if they want to put plans into action to help them achieve financial
success and security.
That's the conclusion of a group of highly experienced and knowledgeable
female financial professionals from MassMutual Financial Group member
companies, including OppenheimerFunds, Inc.
"As women continue to make broad gains in the workforce, they're
truly on the cusp of enduring financial success," said Susan Sweetser,
second vice president of the Massachusetts Mutual Life Insurance Company
(MassMutual) and head of Women's Markets at MassMutual Financial Group
member companies. "As we approach the IRS tax deadline, this is
typically when many Americans establish, review or revise their financial
plan. It's an ideal time for women to take a good, hard look at what
they need to do today if they want to achieve a financially secure tomorrow."
Sweetser pointed out that women often have complicated personal and
professional lives, and each stage of their life presents different
financial challenges. "At every critical cycle -- whether single,
married or near retirement -- life experiences and circumstances can
potentially strain financial resources," she said. "To help
meet these challenges, we carefully developed a short list of answers
to questions that many women may have regarding their finances."
Sweetser noted that the information is designed to help women take
more control of their financial future.
"Because studies consistently show that women live longer than
men, their money must last longer," said Donna Winn, senior vice
president of the Wealth Management program at OppenheimerFunds, Inc.,
a MassMutual affiliate. "However, many women aren't as involved
as they should be in planning for their own long-term financial future.
Lack of time is a chief concern women often cite, with many women bearing
family caretaking responsibilities as well. So our hope is that access
to quick financial tips can motivate even the busiest of women."
Below are the top 10 questions to ask yourself now:
What do I want to achieve? As with any journey, the path to your financial
future requires a "roadmap." Determine a realistic goal for
where you want to be at this time next year, and determine the best
way to get there. Know exactly where your money is going, and how much
you have for investing. Next, choose your destination by figuring out
your short, intermediate and long-term goals. Don't forget to include
an emergency cash account in your short-term goals.
Will I live "happily ever after?" We hope so. But it always
pays to be prepared, especially since it's commonly recognized that
half of all marriages end in divorce. That's why, regardless of your
income, a prenuptial agreement is something every engaged couple should
consider. These legal arrangements ensure that you will be protected;
you'll also protect any children you may have from a prior relationship.
Importantly, if the marriage doesn't last, your ex cannot make a claim
against the assets you brought into the marriage. And, if you die, your
children will still be entitled to their fair share of your estate.
If you are in a relationship or married, it's best to have a contractual
agreement as to how property should be divided with your partner if
the relationship ends.
How will I protect my loved ones when I pass away? An absolutely essential
-- albeit uncomfortable -- financial question to ask yourself, since
many families rely on two incomes to get by. What if mom dies? Imagine
the consequences without adequate financial protection. Be ready for
the unpredictable. At a minimum, you'll want enough life insurance to
cover your financial debts and funeral. If you have children, you'll
want to leave at least enough to replace your earnings for a certain
period of time, to cover the costs of hiring someone to fulfill your
obligations at home and to pay for your children's college educations.
Many professionals with families seek insurance protection equivalent
to 8 to 15 times their annual earnings to adequately support their families.
And stay-at-home mothers need coverage too. Consider what would it cost
to have someone come into your home to provide quality care for your
children and to run your household if you were no longer able to.
Do I want a stranger making important decisions for my children? Of
course not. So, whether you're 25 or 65, make sure 2004 is the year
you prepare a will. If you die without one, a court will step in and
determine how your assets are allocated (based on each state's law).
If you're a single mom with minor children, the same judge will decide
with whom they will reside. And remember, if you're in a serious relationship
-- but not married -- your significant other may have no rights to your
property, unless your will directs otherwise. Lastly, if this is the
year you expect to reach new stages in life, pull out your existing
will and update it. An up-to-date will can make things much easier for
your beneficiaries during a time of great grief.
Am I invincible? Of course not. What would happen if you were suddenly
disabled by illness or injury and unable to work? Facing the financial
challenges associated with a serious illness or accident -- without
the protection afforded by disability income insurance -- can be devastating.
Group insurance benefits and government programs will cover only portions
of the cost of care and lost income. Including the appropriate level
of disability income insurance protection in your financial plan could
be the difference between helping to maintain your current lifestyle
and perhaps falling surprisingly short of your accustomed standard of
living. If you already have an individual disability income insurance
policy, update it annually to reflect any promotions or large increases
in personal income.
How will I support my aging parents when they can no longer support
themselves? Women often assume the caretaker role in their families.
In fact, according to a 2003 OppenheimerFunds' study, 29 percent of
women said they anticipate supporting their parents one day. Yet, with
women increasingly becoming significant wage earners, they don't have
the flexibility to be executives AND caretakers for their parents. Consider
long-term care insurance for you, your spouse and your parents. Such
insurance isn't just to assist you or the insured in paying bills for
assisted care living at home, in an assisted care facility or nursing
home; it can also help enable the insured to receive care at home for
a much longer period. It can also help protect your estate from being
depleted by the rapidly escalating cost of care.
Am I "maxed out?" The answer should be yes -- despite your
age -- when it comes to this year's 401(k) plan contributions. If planned
properly, retirement can be a time to enjoy the things you've spent
so much of your professional life working to afford. Remember: women
on average live longer than men -- so odds are your retirement savings
will have to go farther. Make sure you're participating in your employer's
401(k) plan and start making contributions -- even if it's only at the
threshold to receive the company's match. Otherwise, you're leaving
free money on the table. If your employer doesn't provide a 401(k),
then be sure to max out your contribution to an IRA or other tax-qualified
personal retirement instrument. Note: recent tax changes allow those
over age 50 to save more in their 401(k) and IRAs. Lastly, if you are
already maxed out on your 401(k) and IRA contributions, you might consider
additional tax- deferred investing opportunities -- such as a fixed
or variable annuity.
Do I really need to make that impulsive purchase? Pay attention to some
of the small things you buy. Try this: for a month, write down everything
you purchase, and determine which things you can do without. Invest
the money for those non-essential items in mutual funds or pay an insurance
premium, and reap the rewards that can come with making tiny sacrifices.
At some fund companies, including OppenheimerFunds, you can open a mutual
fund account and contribute as little as $50 a month. Most importantly,
you'll be establishing a regular pattern of saving and investing. You
don't have to be a total miser; instead of eating out five times a month,
try cutting back to two.
Can I pay cash? Avoid the temptation of using credit cards to overspend.
Stick to having one credit card for emergencies and to build good credit.
Otherwise, use cash. While interest rates are expected to remain at
near-record-low levels in 2004, the interest rates charged by some credit
card companies on unpaid balances have not followed suit. Make sure
you are aware of your credit card interest rate. It could very well
be more than 20 percent -- far more than the historical average annual
return of most investments. In general, use credit cards only if you
plan on paying off the entire balance every month. What's more, too
many cards could adversely impact your credit rating. If you do have
debt, including school or car loans, make sure you pay bills on time.
You don't want late payment fees on your credit history.
Do you "Teach Your Children Well?" Fiscal responsibility is
not just for adults. Teach your children about money and investing.
Teach them to protect what they have. Teach them how to be responsible
with money. Pass along your unique insights on how to grow and invest
money over time. Show your daughter your quarterly statements. By sharing
what you know, you can help better prepare your children for a more
financially secure tomorrow.
"Whatever the responses to these questions, each woman's financial
situation is unique. The important thing is to plan for the future,"
Sweetser said. "Hopefully, you'll never need to learn firsthand
the value of a prenuptial agreement or disability income insurance,
but, if you do, you'll be glad you're prepared to meet those challenges."
Winn added: "More than ever before, women today need to get involved
and make confident investment decisions. At risk is nothing less than
our future financial independence."
Sweetser recommends that women identify and obtain the assistance of
a good financial professional. While a candidate's credentials should
be checked carefully, Sweetser also suggests that women rely on their
'sixth sense.' "Ask yourself: 'am I comfortable articulating my
goals to this person? Is he/she listening to me? Do I feel respected?'
Go ahead and rely on your intuition. Then get started -- right away
-- on your financial plan."
MassMutual Financial Group
The MassMutual Financial Group is a marketing name for Massachusetts
Mutual Life Insurance Company (MassMutual) and its affiliates, which
include: OppenheimerFunds, Inc.; David L. Babson & Company Inc.;
Cornerstone Real Estate Advisers, Inc.; MML Investors Services, Inc
its broker-dealer subsidiary; The MassMutual Trust Company, FSB; Antares
Capital Corporation; MML Bay State Life Insurance Company; C.M. Life
Insurance Company; and MassMutual International. MassMutual is on the
Internet at www.massmutual.com.
MassMutual is dedicated to helping women meet their financial goals.
To that end, the company's focus on the Women's Markets is guided by
a companywide Women's Business Advisory Board of female executives -
to help empower women to achieve financial success and to enhance the
company's recruitment and retention of female financial professionals.
OppenheimerFunds
OppenheimerFunds, Inc. is one of the nation's largest and most respected
investment management companies. As of December 31, 2003, OppenheimerFunds,
Inc., including subsidiaries and controlled affiliates, managed assets
of more than $150 billion.
OppenheimerFunds was the first major investment firm to research and
address women's unique financial needs. In 1992, the firm's groundbreaking
research on women and their investing habits became the foundation of
our Women & Investing program. Since then, OppenheimerFunds has
invested heavily in educational and advocacy programs for women.
Investors should consider the fund's investment objectives, risks and
charges and expenses carefully before investing. The fund's prospectus
contains this and other information about the fund, and may be obtained
by asking your financial advisor, calling us at 1.800.CALL-OPP (255-5677)
or visiting our website at www.oppenheimerfunds.com. Read the prospectus
carefully before investing. The products and services of the company
and its controlled affiliates include: mutual funds, hedge funds of
funds, qualified retirement plans for individuals and corporations,
privately managed accounts, and investment management for pension plans,
foundations and other institutions OppenheimerFunds is widely recognized
as a leader in educating and empowering investors and for its award-winning
customer service.
OppenheimerFunds, Inc., Two World Financial Center, 225 Liberty Street,
11th Floor, New York, NY 10080
Contact: Jim Lacey Jeaneen Pisarra
MassMutual OppenheimerFunds
413-744-2365 212-323-5178
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