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Women are becoming more financially savvy, prominent and confident in the world of investing. For the financial advisor who is attuned to how female investors think, this is a business-building opportunity. Keeping in mind that women often make decisions—including financial ones—based on relationships, the right advisor can tailor their business approach to become a trusted and valuable source of information and guidance.

The pros and cons of the opportunity

As female investors become more financially empowered, they have more reasons than ever to own their financial future. Consider the pros and cons that affect this demographic.

Pro: Women are planning for the future.

According to a LIMRA study, when asked what is their most important reason for saving is, 54% of women responded that they are saving for retirement. Women tend to be longer-term thinkers—an enviable trait, as so many people have underestimated how much is needed to live in retirement and then find themselves falling short.

Source: LIMRA, “Gender Matters: Retirement Savings of Working Men and Women,” February 2011.

Con: Many women leave the workforce for a number of years to care for a family. For those women, making up those missed savings becomes a top priority. Women also tend to plan for the futures of their family, and may fund their children’s education before their own retirement.

Solution: Women saving for retirement have many options to help reach their savings goals. IRAs—both traditional and Roth—offer the benefits of tax-deferral for faster retirement saving.

Pro: Women are earning more money.

The truth is women are making more money in the workforce than ever before. In 2009, women accounted for 51% of all workers in high-paying management, professional and related occupations.

Source: U.S. Department of Labor, Women’s Bureau, 2009.

Con: With increased wealth, many clients are opting for self-directed investment plans, without the knowledge and guidance of a financial advisor. Women are more likely to accept investment advice from someone other than a reputable advisor. In the February 2011 study on gender matters from LIMRA, 72% of women indicated that they get their information on financial products and services from the internet or books, magazines and newspapers.

Solution: Working women should be participating in their employer-sponsored plan, if one is available. If employer-matching contributions are available, women should consider their ability to contribute at least as much as the match amount to make the most of their money. Advisors can extend their advice and guidance to reach beyond assets under their management. Clients, especially those who are self-directing their retirement investments, can benefit from—and will probably value—the guidance of a trusted advisor.

For broker/dealer use only. Not for use with the public.

Pro: Women tend to outlive men.

Statistically, women live roughly eight years longer than men, which suggests that many women will eventually become financially independent. Some data sources suggest that as many as 75% of women will eventually become widowed. Those women will benefit from having financial knowledge and confidence before they are put on the spot.

Con: Living longer increases the chances of health issues and the potential need for long-term care. Women need to consider how they would cover the expenses of an illness or long-term care. For women, especially those who are widowed, the odds of needing long-term care are significant. One study revealed that of those receiving long-term care benefits, 41% were single women, many of whom were widowed. A recent Lincoln Financial Group® study reports that 75% of those surveyed would use their savings to fund long-term care. Most Americans don’t have a real plan in place to pay for the significant cost of long-term care, which, Federal data estimate can cost in excess of $60,000 per year. For the average U.S. family with $120,000 in savings, the expense of long-term care will quickly deplete those savings.

Source: Lincoln Financial “Life Stages Survey: Long-term Care,” October 2010.

Solution: Several investment products, including life insurance, can help ensure that a surviving spouse receives the income they need. Women should make sure they understand any spousal considerations of all of their financial contracts and policies, while their spouse is still alive. Annuities can often be structured to provide a guaranteed lifetime income for one or two lives. They also offer the potential for future growth and many feature death benefit protection.

Pro: Women are making the family’s financial decisions.

Women are becoming more financially savvy, and are either participating in or driving the financial decisions that affect their family.

Con: Currently, one in eight Americans age 40 to 60 is a member of the “sandwich generation”—those who are sandwiched between raising children and caring for elderly parents. And, as more individuals retire without enough savings to live on, this group continues to grow. For women, who are often tasked with taking care of aging parents both physically and fiscally, the impact of healthcare expenses and long-term care can be more than financial.

Solution: It’s the nature of many women to put their family first. However, women need to keep their own financial goals in mind and communicate those plans to family members. There are steps women can take to prepare loved ones for potential healthcare and long-term care costs. Encourage women to get their family together and discuss long-term care and estate planning options. Estate planning is essential to ensure that assets are utilized and distributed according to a client’s goals and objectives.

For broker/dealer use only. Not for use with the public.

Empowering women to drive their financial future

For many women, obtaining the right financial advice is more than simply picking up the phone or using one of the many online investment websites. Empowered women do the homework and get thorough information from reputable sources. According to Mintel, 39% of female investors say their primary source of investment ideas are their investment advisors. According to Susan Menke, vice president and behavioral economist at Mintel, “Women are much more likely than men to look to a trusted advisor to give them investment ideas.”

Source: Mintel Oxygen Reports: “Financial Advisors Can Benefit by Reaching Out to Women,” March 2011.

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| |Lincoln Financial Distributors, Inc., a broker/dealer, is the wholesale distribution organization|

|[pic] |of Lincoln Financial Group. Lincoln Financial Group is the marketing name for Lincoln National |

| |Corporation and its affiliates. Affiliates are separately responsible for their own financial |

| |and contractual obligations. |

|©2011 Lincoln National Corporation | |

| |For broker/dealer use only. Not for use with the public. |

|LCN1104-2053199 | |

|5/11 Z01 | |

|Order code: LFG-WI-ARC018 | |

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|[pic] | |

Financial advisors have the opportunity to be the trusted and valuable resource for women investors. Understanding the nature and needs of women—which differ from those of their male counterparts—is the first step toward empowering your female clients and evolving your business.

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An empowering opportunity

Helping your female clients own their financial future

The long-term effects of Social Security for women

Previous generations relied heavily on Social Security to provide all or some of their retirement income. But for women in particular, it’s important to remember that Social Security will provide only a portion of retirement income, leaving clients on the hook to make up the difference. However, most married men still begin claiming Social Security benefits at age 62 or 63, several years short of the age that maximizes the value of the average ho[?] |ÎÏ ç y~•–˜›¾¿ìï?

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