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          I.     Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   2

          II.    Five Major Life Transitions . . . . . . . . . . . . . . . . . . . . . . . . .              3

                     ♦    Sudden Inheritance
                     ♦    Divorce
                     ♦    Retirement
                     ♦    Mid-Life Course Correction/Career Change
                     ♦    Death of a Loved One

          III.   Challenges Facing Women Today . . . . . . . . . . . . . . . . . . .                        5

                     ♦    Loss of Focus on Personal Goals
                     ♦    Yielding to Societal Expectations
                     ♦    Lack of Financial Education
                     ♦    Expense of Longevity
                     ♦    Uncoordinated Advice with Other Professionals

          IV.    Guiding Destiny Through Wealth Management . . . . . . . 7

                     ♦ What is Wealth Management?
                     ♦ Wealth Management at Harris Financial Advisors, Inc.
                     ♦ Our Wealth Management Consulting Process

          V.     Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

                     ♦ About Harris Financial Advisors, Inc.

WOMEN IN TRANSITION                                                                     1

    For every woman who finds herself in transition – whether it is from one
    career to another, one household to another, or one stage of life to another –
    every transition presents potential areas of vulnerability, as well as

    Retirement, sudden inheritance, widowhood – these are significant events
    with formidable challenges and personal costs. Yet learning to embrace
    these life transitions can present opportunities for growth and renewal,
    allowing women to guide their destiny.

    Harris Financial Advisors, Inc. took a      ♦ Women are more likely than
    closer look at life’s transitions             men to end life as a single
    through the eyes of affluent women            person, with age 55 the average
    to     determine     how       wealth         age of widowhood in the United
    management services could help                States.
    deliver the lasting foundation for
    lifelong financial security and           In 2008 we interviewed a broad
    personal success.                         spectrum of affluent women in
                                              Southern California representing a
    With over five decades of combined        range of occupations and lifestyles.
    staff experience working with             We learned about the transitions they
    women, we identified several unique       were facing, how they were
    factors that lead women to be more        managing each transition, and the
    financially vulnerable than men:          roadblocks they were encountering.

      ♦ Women are more likely than            Five primary life transitions emerged
        men to postpone their careers or      from our research, each offering its
        experience compromises in their       own set of financial challenges.
        earning capacity and career           Those transitions included sudden
        advancement.                          inheritance, divorce, retirement, mid-
                                              life course corrections or career
      ♦ Women enjoy longer life spans         changes, and death of a loved one.
        than men, living an average of        We’ll now take a closer look at each
        83 years, an additional five to       one.
        seven years longer than men.

2                                                                WOMEN IN TRANSITION
                                               ensure a woman’s rights            are
    Receiving an inheritance is not            protected during this time.
    always the ticket to the happiness-
    ever-after one might imagine. While        Some common financial themes
    an inheritance opens doors to more         addressed during a divorce include
    life options, it brings additional         the division of marital assets and
    responsibility.                            liabilities, alimony obligations, child
                                               support and visitation, the impact of
    A woman might be heiress to assets         taxes, health and life insurance
    accumulated during her parents’            decisions, and estate planning.
    lifetime as a result of their hard work
    and great sacrifice. Often the genesis     Legal and financial professionals
    of the family wealth reaches back          should be chosen wisely to help
    over generations – now it is her turn      navigate through each decision. A
    to determine how to best invest,           coordinated, strong team of advisors
    spend, or share this wealth.               is essential for the desired result.

    The biggest obstacle facing women          RETIREMENT
    who receive a sudden inheritance is a
    lack of preparation. Regardless of         The prospect of retirement can be
    her investing sophistication, she can      immensely exciting, providing more
    find herself thrust into a realm where     time for new experiences. However,
    her financial decisions affect not only    it can also leave a woman with excess
    the rest of her life, but also the lives   idle time for which she is not fully
    of future generations.                     prepared.

    DIVORCE                                    Regardless of the lifestyle chosen in
                                               retirement, the affluent woman
    Divorce can be a distressing, painful      should clarify what she wants from
    life transition. Often women feel          retirement and be prepared to
    disconnected from the life they knew       identify any obstacles, roadblocks, or
    and     apprehensive     about    the      fears about her retirement transition.
    unknown world they are stepping
    into.     When facing a divorce,           A woman should know how long her
    competent counsel is essential to          money will last under various
                                               spending assumptions.

WOMEN IN TRANSITION                                                                     3
      It is imperative to model       and          ♦ What investment or financing
      evaluate multiple income        and            is necessary to launch her
      expense scenarios carefully.    This           dream?
      information alone can have      life-
      changing consequences.                       ♦ What is the worst that could
                                                     happen if plans do not work as
      Other issues to address include the            envisioned?
      amount and timing of Social Security
      benefits,   proper    handling    of         ♦ Is there an exit plan or fallback
      employer plan rollovers, healthcare            strategy?
      coverage, and risk management
      options such as life and long term        A trusted advisor/coach can be
      care insurances.                          invaluable during this exploratory

      MID-LIFE COURSE                           DEATH OF A LOVED ONE
                                                When a woman loses a spouse, a
      Mid-life course corrections and           child, or another loved one, it is
      career changes can take many forms.       emotionally devastating.       Women
      It may mean transitioning from one        who have experienced this loss
      industry to another or the sale or        frequently     and      wisely   seek
      purchase of a business. It can also       individual or group counseling.
      mean departing from a career              Grieving is a process that includes
      entirely to perform “life-calling”        several stages, each of which must be
      work or significant volunteer             processed and experienced until one
      opportunities.                            reaches acceptance. At that point,
                                                she can begin to grow again.
      While moving from one life path to
      another may certainly have exciting       A strong support system, including
      and fulfilling advantages, a woman        family, friends, and clergy, can be of
      needs to understand both the              immense help during this rebuilding
      benefits and drawbacks of this            process.    Beyond that, a trusted
      transition.     Some questions to         financial professional who helps
      carefully consider are:                   direct the monetary decisions and
                                                acts as a supportive team player can
         ♦ Will the new opportunity             greatly relieve stress and preserve
           support or enhance her current       net worth during this difficult time.
           standard of living?

4                                                                WOMEN IN TRANSITION

    Twenty-first century women have resources available for personal growth far
    beyond their mothers and grandmothers before them. Today women enjoy
    increasing status in all walks of American life, unlimited skill availability
    through education, and opportunities for change as close as the click of a
    computer’s mouse.

    However, these opportunities do not overcome the human condition that change
    is difficult. HFA’s experience in serving women finds that even the best
    educated and most highly skilled women struggle with one or more of the
    challenges below when cast into a major life transition:


    Women often neglect to identify and       the husband’s career and being the
    embrace what is truly important to        supportive spouse and mother. If
    them, as they shoulder more and           part time work is involved, it is
    more responsibility at home, in their     generally used to facilitate and
    careers, and volunteering in the          further the spouse’s career.
    community. Their dreams may have
    been put on hold years ago. They          LACK OF FINANCIAL EDUCATION
    have not taken the time or energy
    needed to circle back to themselves       Faced with so many responsibilities,
    to make their own dreams a reality.       women are often uninformed of the
                                              magnitude of the financial risks they
    YIELDING TO SOCIETAL                      face. They can also be unaware of
    EXPECTATIONS                              the possible outcomes ahead should
                                              their family’s circumstances change.
    Women are more likely than men to
    postpone their own careers or make        Many women sign joint tax returns
    compromises in their earning              year after year without knowledge of
    capacity and career advancement           the source of family income or
    while raising children. Often the         investments made. Women often
    woman’s focus is on the nurturing of      have little knowledge of existing
                                              wills and trusts and are unclear as to

WOMEN IN TRANSITION                                                                    5
    how much life insurance is available      too late to propose tax-saving
    should her husband pass away.             strategies. Attorneys work when
                                              they are retained, which means
    EXPENSE OF LONGEVITY                      women need to be proactive and
                                              know the specific tasks that need to
    On average, women live five to seven      be    accomplished.      Often,   the
    years longer than men.          This      accountants and attorneys are not
    additional longevity has a cost. For      aware they are on the same team and
    some it may mean more time to             therefore coordination is absent.
    travel, enjoy life, and spend quality
    time with family.                         The insurance or investment product
                                              specialist can seem to be focused
    For others, it may mean costly stays      only on making the sale and does not
    in healthcare facilities during life’s    know if and where their product fits
    later years.                              into a woman’s overall financial
                                              picture. This can result in plans that
    Most women do not want to burden          do not support or may even
    their children. Women prefer to           undermine each other.          Advice
    have plans in place for the type of       coordination is imperative for
    long term care they desire, usually in    meaningful results.
    the familiar surroundings of their
    own home, if possible. The bottom
    line -- women need to plan for and        _________________________________
    finance more years in retirement.

                                              The good news is that today’s well-
    UNCOORDINATED ADVICE             WITH     advised women in transition have
    OTHER PROFESSIONALS                       not only overcome many of these
                                              challenges but have embraced the
    Women       who       have    multiple    opportunities offered by change to
    professional       advisors       often   guide their own destiny.        An
    experience a lack of coordination         important component of their
    among them. This can frustrate a          success is the understanding and
    clear plan of action and often leads to   employment of wealth management
    inaction.                                 techniques.    Let’s now turn our
                                              discussion to wealth management.
    For example, accountants are often
    retained only at tax time to record
    what transpired in the previous year,

6                                                                WOMEN IN TRANSITION

    To best understand wealth management, it is first important to understand who
    wealth managers are and who they are not. Advisors can fall into three
    categories – investment generalists, product specialists, and wealth managers.


    These advisors offer a broad range of      clients’ goals. We at Harris Financial
    investment products but do not             Advisors, Inc. use the wealth
    specialize in a single type of product.    management process, encompassing
    They do not make consulting an             all facets of a woman’s life and
    essential part of their business           allowing women to align their
    model, tending instead to be               financial goals with their personal
    transactional.                             values.

    PRODUCT SPECIALISTS                        Wealth management consists of three
                                               interrelated disciplines, including
    These advisors focus exclusively on a      investment consulting, advanced
    single type of product as a solution.      planning,     and        relationship
    The product may be a managed               management:
    account, stocks, annuities, or other
    fixed-income alternative.        Like      1. INVESTMENT CONSULTING
    investment      generalists,    these
    advisors do not have a consultative        This is the ongoing management of
    orientation and also tend to be            investments over time to help
    transactional.                             achieve financial goals. It requires
                                               advisors to deeply understand the
    WEALTH MANAGERS                            woman’s most important challenges
                                               and an investment plan that takes
    Wealth     managers     go     beyond      her time horizons and tolerance for
    investments and products, taking a         risk into careful consideration. It
    highly       comprehensive         and     also requires frequent monitoring of
    consultative approach to construct         her portfolio and financial life over
    integrated solutions to meet their         time so that adjustments can be made
                                               as needed.

WOMEN IN TRANSITION                                                                     7
                                               HARRIS FINANCIAL ADVISORS (HFA)
    This goes beyond investments and
    considers all other aspects that are       The qualified team of personal
    important in a woman’s life.               wealth managers at HFA practices a
    Components of advanced planning            disciplined wealth management
    include wealth enhancement (income         process. We serve as a woman’s
    tax strategies), wealth transfer (estate   chief financial officer, implementing
    planning), wealth protection (risk         appropriate investment plans and
    mitigation), as well as charitable         coordinating a team of accounting
    giving strategies.                         and legal professionals to manage
                                               retirement and estate strategies.
                                               We are dedicated to providing a
    True wealth managers are focused on        customized financial roadmap for
    building relationships within three        each woman. We monitor that
    groups.     The first and most             roadmap consistently to ensure it
    important relationship is with the         continues to reflect her goals and
    woman in transition herself. To            values, making course corrections
    address her needs effectively, they        when appropriate.
    must foster a solid, trusted
    relationship with her.      Second,        We believe financial education is
    wealth managers must manage a              empowerment. We regularly and
    network of related professionals –         empathetically     keep      women
    experts they coordinate with to            informed through discussion on
    address her specific needs. Finally,       important financial and life choices.
    wealth managers must be able to            We believe that an understanding of
    work effectively with her existing         one’s financial matters is an
    professional advisors, such as her         important element in a woman’s
    attorneys and accountants.                 sense of success and personal
    The wealth management process
    facilitates a healthy partnership with     The chart on page 10 outlines our
    the woman and the advisor.           It    wealth management process.
    provides a powerful road map that
    aligns a woman’s values with her
    resources, helps her make smart
    decisions about her money, and
    allows her to guide her destiny.

8                                                                WOMEN IN TRANSITION


      At our initial meeting, we conduct a discovery interview to help articulate the
      challenges you face in identifying all that is important to you. We carefully examine
      your current situation and the goals you would like to achieve in your lifetime.


      During this meeting, we present our analysis of your current situation and our
      recommendations for ways we can bridge the gaps to help you reach your financial
      goals. This plan forms the foundation of all our work together.


      At this meeting, we are ready to make a mutual decision about our firm’s ability to
      add value to your financial future and whether or not we should proceed. We will
      then execute the documents necessary to put your investment plan into action.


      After the investment plan is in place, we look at all other aspects that are important
      to you, including wealth enhancement (income tax strategies), wealth transfer (estate
      planning), wealth protection (risk mitigation) and charitable giving.


      These meetings, which we schedule at intervals convenient for you, provide us an
      opportunity to review any major changes in your personal or financial situation and
      make adjustments to your wealth management plan accordingly.

WOMEN IN TRANSITION                                                                     9

    Affluent women who are facing a major life transition can learn to direct
    and guide their own destiny.

    The ongoing wealth management             We work as a team of experienced
    process is designed to effectively        professionals and provide a safe and
    address the unique and specific           caring environment to explore
    financial needs of women in               personal goals.
                                              Our consultative process brings us
    By partnering with a wealth manager       together with our clients’ other
    who uses a caring, consultative           advisors, such as accountants and
    process, affluent women can identify      estate planning attorneys, in order to
    life goals and address personal           provide a well-coordinated team of
    roadblocks.                               professionals to design solutions and
                                              deliver unbiased advice.
    Through education and a clear, easy-
    to-follow financial process, women        We help our clients preserve their
    can maximize the probability that         wealth and have the income they
    financial and life goals will be          need now and ample resources for
    achieved, gain the confidence to take     the rest of their lives.
    action and find personal peace-of-
    mind.                                     We bring clarity and control to our
                                              client’s  financial   lives   while
    HARRIS FINANCIAL ADVISORS, INC.           maximizing their probability of
                                              achieving all that is important to
    We are a fee-based, wealth                them.
    management firm specializing in
    investment consulting, advanced           In every aspect of our work we make
    planning, and expert relationship         an uncompromising commitment to
    management. We serve as personal          provide world-class service and to
    wealth managers for women and             meet      every     client’s  highly
    families facing major life transitions    individualized     needs.        The
    such as retirement, inheritance, or       relationships we develop are life-
    death of a spouse.                        long and often extend into future

10                                                               WOMEN IN TRANSITION
       TORRANCE, CA  90505 
       PHONE: (310) 791‐3226 
             FAX:   310) 791‐3229 

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