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A Woman’s Journey

A Woman’s Journey. Toward Financial Independence. The good news: Women are more rational, often making them better investors 1 Among full-time, full-year workers, females were more likely to participate in a retirement plan than males 2

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A Woman’s Journey

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  1. A Woman’s Journey Toward Financial Independence

  2. The good news: • Women are more rational, often making them better investors1 • Among full-time, full-year workers, females were more likely to participate in a retirement plan than males2 • Women are now the leading or solo breadwinners in 40 percent of households3 14 Ways Women Are Better Investors Than Men, money.usnews.com, 12/17/13 2 Employee Benefit Research Institute (EBRI) Fast Facts, November 26, 2013, #2573 Breadwinner Moms, pewsocialtrends.crg, 5/29/2013

  3. 59%women age 65 and older rely onSocial Securityfor more than half their income.3 Average yearly benefit:$12,1884 • The bad news: • In a 2011 survey, less than 30% of women considered themselves “confident” investors.1 • Women, on average, have saved less for retirement than men.2 1Girls Just want to Have Funds, http://online.wsj.com, 4/21/2011 2Institute for Women’s Policy Research Fact Sheet, iwpr.org, January 20123Social Security Administration, “Income of the Population 55 or Older, 2010,” Tables 9.B1, March 2012 4Social Security Is Important to Women, ssa.gov, February 2013

  4. A Woman’s Unique Challenges In general, women: • Earn less • Live longer • Spend fewer years in the work force • Must confront the “what-if” factor 1. 2. 3. 4.

  5. A Woman’s Unique Challenges 1. Women Earn Less Than Men • Real median earnings of men and women age 15 and older who worked full-time, year-round $50,000 $40,000 $30,000 $20,000 $10,000 $0 MEN: $49,398 WOMEN: $37,791 Data source: Institute for Women’s Policy Research, The Gender Wage Gap, www.iwpr.org, March 2013

  6. A Woman’s Unique Challenges 2. Women Live Longer Than Men • By 2030, there will be 40 million women age 65 and older compared to 32 million men1 • Women represent 83% of the population age 100+ years2 • 1 Administration on Aging, September 20082Age & Sex Composition, 2010: 2010 Census Briefs, www.census.gov, issued May 2011 Life expectancy at age 65: Female: 20 Years Male: 18 Years 15 16 18 20 17 19 • Data source: Health, United States, 2011, www.cdc.govLongevity data presented does not reflect mortality from birth statistics available from U.S. Census Bureau.

  7. A Woman’s Unique Challenges 3. Women Spend Less Time in the Work Force 45%of female baby boomers don’t have a retirement strategy.1 1Women's Retirement Planning Woefully Inadequate, Study Finds, www.huffingtonpost.com, 3/26/13

  8. A Woman’s Unique Challenges 4. Women Must Confront the “What-if” Factor: What if… • I develop serious health problems? • I get divorced or am widowed? • I outlive my savings? • inflation gets worse?

  9. A Woman’s Unique Challenges Average expenditures per year for a married couple with no children1 4. The What-If Factor:What if My Husband Dies? 1 Data source: Consumer Expenditure Survey, 2012(U.S. Dept. of Labor, Bureau of Labor Statistics, 2013) 2 Data source:Women’s Institute for a Secure Retirement, 5/06 Do you have a plan for how to pay for your ongoing expenses and make up for the lost income?

  10. Overcoming Challenges 1. 2. 3. 4. YOU CAN: • Identify and prioritizeyour goals • Start with a budget and develop a strategy • Focus on the fundamentals of investing • Talk to a financial professional

  11. Overcoming Challenges 1. Identify and Prioritize Your Goals • Retirement • Housing • College education • Business • Passing on wealth What’s important to you?

  12. Overcoming Challenges 2. Start with a Budget, Develop a Strategy • Little indulgences add up • Get rid of high-interest debt • Contribute the max to your 401(k) • Know where your retirement income is coming from

  13. Overcoming Challenges 2. Start with a Budget, Develop a Strategy Little Expenses Can Really Add Up Savings Over 15-Year Period: Do You: What if You: Brewed your own coffee at home 3 times per week? $26,488 • Drink a gourmet coffee every morning? Bought a treadmill? $34,337 • Have a gym membership you don’t use? • Head for the closest ATM? $24,526 Used your bank’s or a no-fee ATM? • Go out for lunch every day during the week? Brown-bagged your lunch? $72,598 Not have any money to savefor retirement? Took the money you would have spent on all of these items and invested it? $157,951 Coffee example assumes the savings of $4.50 per latte, three times per week ($13.50). Gym example assumes the savings of $17.50 per week. ATM example assumes the savings of $12.50 per week. Lunch example assumes the savings of $37.00 per week. Retirement money example assumes the savings of $80.50 per week on all items. All of the above savings examples use the average annual rate of the S&P 500 Total Return (10.88%) for the past 75 years. Data Source: Morningstar Direct,1/14. Past performance is not indicative of future results. For illustrative purposes only. Investors cannot invest directly in an index.

  14. Overcoming Challenges Additional Weekly Savings Can Really Add Up $300,000 $200,000 $100,000 $0 From Age 25 to Age 65$285,107 $20/WEEK INVESTED (assumes 8% growth rate) From Age 40 to Age 65$82,744 This hypothetical example is for illustrative purposes only and is not indicative of any particular investment. The final balances shown do not reflect any taxes or penalties that may be due upon distribution.

  15. Overcoming Challenges 3. Focus on the Fundamentals of Investing • Understand the effects of inflation • Understand the effects of taxes • Know the advantages of diversification and equities • Don’t panic over the press

  16. 3. 3. Focus on the Fundamentals of Investing Focus on the Fundamentals of Investing Assumes an initial investment of $10,000 on 1/31/50. Assumes an initial investment of $10,000 on 1/31/50. $9,394,034 $10,000,000 Average Annualized Returns Average Annualized Returns $3,343,652 $1,000,000 $417,885 $150,172 $100,000 $10,000 $1,000 1950 1960 1970 1980 1990 2000 2013 Data source: Thomson Reuters, 1/14. INDEX PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Assumes no taxes or transaction costs. Indices are unmanaged and not available for direct investment. The S&P 500 Index is a composite of 500 of the largest companies in the United States. Barclays Long Gov’t Index is based upon all publicly issued long-term government debt securities. U.S. 30-day Treasury Bills (T-Bills) Index is based upon the average monthly yield of 30-day Treasury Bills. Stock: A share of ownership or equity in a corporation. A corporation's financial performance chiefly determines the value of its stock. Stocks are typically more volatile than other investment commodities, such as bonds or T-Bills. Stocks are also known as equities. Bond: A debt security issued by a company, municipality, or government agency. A bond investor lends money to the issuer and, in exchange, the issuer promises to repay the loan amount on a specified maturity date; the issuer also must pay the bondholder periodic, fixed interest payments over the life of the loan.Cash: Cash investments, including T-Bills, provide liquidity and have the lowest risk-and-return characteristics of any class. T-Bills are issued and backed by the full faith and credit of the U.S. Government. All investments are subject to risk, including the possible loss of principal. Fixed income securities are subject to interest-rate risk (the risk that the value of an investment decreases when interest rates rise), credit risk, and call risk.Diversification neither ensures a profit nor protects against a loss.

  17. 3. Focus on the Fundamentals of Investing After periods of decline, the market has always recovered Dow Jones Rolling 10-Year Average Annual Returns (12/31/1910–12/31/2013) 10-Year Average Annual Returns % 1910 1915 1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2013 10-Year Ranges PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. Assumes reinvestment of income and no transaction costs or taxes. This data is for illustrative purposes only. Indices are unmanaged, are not available for direct investment, and do not represent the performance of any of any particular investment. The Dow Jones Industrial Average (DJIA) is an unmanaged price weighted index of 30 of the largest, most widely held stocks traded on the NYSE. Data source: Ned Davis Research, 2/14.

  18. Overcoming Challenges 4. Talk to a Financial Professional • Experience • Time • Resources • Knowledge • Investment planning • Investment discipline

  19. This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice. Investors should carefully consider the investment objectives, risks, charges, and expenses of Hartford Funds before investing. This and other information can be found in the prospectus and summary prospectus, which can be obtained by calling 888-843-7824 (retail) or 877-836-5854 (institutional). Investors should read them carefully before they invest. Hartford Funds are underwritten and distributed by Hartford Funds Distributors, LLC. This seminar has been funded in whole or in part by Hartford Funds Distributors, LLC. All information and representations herein are as of 2/14 unless otherwise noted. SEM_WI 2/14 104327-3

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