Getting Fiscally Fit 7/2/2016 WE WOULD LIKE TO WELCOME YOU TO TODAY S WORKSHOP THANK YOU FOR JOINING US! EVALUATION FORM

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1 Getting Fiscally Fit WE WOULD LIKE TO WELCOME YOU TO TODAY S WORKSHOP 2 THANK YOU FOR JOINING US! O U R H OP E TODAY I S TO P ROV I D E YOU W I T H S OM E VA LUA BLE I NFORMAT I O N, H AV E S O ME F U N, A ND ENJOY T H I S NEX T H O U R. 3 EVALUATION FORM Please review this form. I will be picking these up at the end of the workshop. Do note the backside is to be used for your specific questions and issues. 1

2 4 Goals require time & commitment. Don t Procrastinate! Take Control! Planning can be confusing. There are many aspects to getting fiscally fit. When Will Your Financial Journey Begin? Getting Fiscally Fit 5 Challenges Planning for Tomorrow Gaining Control Building an Emergency Fund Increasing Cash Flow 6 Being Fiscally Fit is following a set of behaviors that will help lead you to Financial Independence. Adjust the way you think and talk to yourself about determining your financial place in life. Commit to replace your old habits with successful habits. Nothing will change until you do! Overcoming Our Challenges 2

3 Understanding Challenges 7 Working into Retirement Longer Life Expectancy A New Standard of Living The impact of inflation Social Security is not adequate for retirement Personal Savings is insufficient Median Income is down 8 Common Challenges: Debt $2.4 Trillion According to the Federal Reserve s G.19 Report, $1.7 Trillion outstanding credit card debt is $825 Billion. $808 Billion FinAid reports student loan debt stands at $1.047 Trillion Source - The High Cost of Credit 9 $2,000 Credit Card Balance $200,0000 Mortgage $6,742 $9,000 $600,000 $326,063 $8,000 $7,000 $6,000 $2,994 $500,000 $400,000 $212,931 $5,000 $4,000 $300,000 $3,000 $200,000 $2,000 $1,000 $100,000 $0 $0 16% 29% 5% 7% Principal Interest Principal Interest This credit card example assumes an individual carrying a $2,000 balance making only minimum monthly payments on their account(s) approximately 2.5 to 3% of their balance. The mortgage example is based on a $200,000 mortgage loan with a 30 year repayment term. These hypothetical examples are for illustrative purposes only. 3

4 Getting Out of Debt 10 Debt Snowball Method Modified Snowball Method Credit Counseling 11 Develop a Budget Examine your Income vs. Expenses Ask yourself some hard questions: Can I afford my lifestyle? Do I need to increase my income? What can I live without? Gaining Control Through Budgeting 12 What can you do to generate more income? What skills do you have that can help you generate revenue? Cash Flow Management 4

5 13 Plan for life s unexpected emergencies by setting up an Emergency Savings fund. Set aside at least 3-6 months worth of expenses to help cope with life's emergencies. Emergencies can happen to anyone, anytime! Seek conservative savings vehicles that keep pace with inflation. Building an Emergency Fund 14 A rule stating that in order to find the number of years required to double your money at a given interest rate. For example, if you want to know how long it will take to double your money at 8% interest, divide 8 into The Rule of and you get nine years. Building For Your Future 15 Stocks Bonds Pensions and qualified plans - 401(k) Mutual funds Individual Retirement Accounts (IRA) 5

6 Time Not Timing 16 $2,500,000 $2,000,000 $2,010,977 $1,859,015 $1,500,000 $1,000,000 $909,731 $839,343 $500,000 $399,641 $367,038 $0 20 vs vs vs. 41 This hypothetical example assumes annual $3,000 IRA contributions are made on January 1 each year beginning at the specified age and continuing until age 70. Assumes annual rate of return of 8%. Assumes annual tax-deferred compounding in an IRA. Final account balances are prior to any distributions and taxes will be due upon distribution. This hypothetical example is for illustrative purposes only and does not represent the performance of any security. Withdrawals from an IRA prior to age 591/2 are subject to a 10% IRS penalty and ordinary income taxes. Getting To The Next Level 17 When was the last time you made a budget? Do you have a debt repayment strategy? How much are you putting into savings? How much is in your emergency fund? Have you talked to a financial planner? 18 You, and you alone must be responsible for your own Fiscal Fitness! It s Up To You! 6

7 19 EVALUATION FORM Please take a moment to complete. I will be collecting these in a moment. If you need a pen, please let me know. Thank you for your time! Please complete your Program Evaluation. We will be picking them up shortly. Now would be a good time for me to answer any particular questions you may have. 7