HOW TO STAY FINANCIALLY FIT

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How to help protect your wealth

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Are you on the right track for your age?

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How can we help you?

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LET’S TALK ABOUT MONEY

Millennials earn 20% less than Boomers did at same state of life.

Wealthy families lose about 70% of their wealth by the second generation, and a stunning 90%

by the third.

https://www.theglobeandmail.com/globe-investor/globe-wealth/eroding-family-fortunes-how-the-cycle-can-be-broken/article33757468/https://www.usatoday.com/story/money/2017/01/13/millennials-falling-behind-boomer-parents/96530338/

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START BY TALKING TO YOUR KIDS

o Show them that things cost money. Help them take money from their jar or piggy bank and have them hand the money to the cashier.

o Help them open a checking and savings account.

o Discuss the pitfalls of a credit card.

o Work on a semester budget.

o Have your kids have some skin in the game

o Pay for their books

o Pay for a semester

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How to help protect your wealth

_____________________________________

Are you on the right track for your age?

_____________________________________

How can we help you?

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The Millennial GenerationBorn: 1981 to 1997

The Baby Boomer GenerationBorn: 1946 to 1964

Generation XBorn: 1965 to 1980

Silent GenerationBorn: 1925 to 1945

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THE SILENT GENERATION

BORN 1925-1945

Characteristics:

o Grew up during the Great Depression and WWII

o Either fought in WWII or were children

o Behaviors are based on experience from the Depression

o Men typically worked while women stayed home to raise the children

o Hardworking and loyal employees

o Strive for financial security

o Measure work ethic on timeliness, productivity, and not drawing attention

http://extension.missouri.edu/extcouncil/documents/ecyl/Meet-the-generations.pdf

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26.9 As of 2017, there were

million Americans that fall under the “silent

generation”

“American Generation Fast Facts.” CNN. August 27th, 2017. http://www.cnn.com/2013/11/06/us/baby-boomer-generation-fast-facts/index.htmlhttp://www.pewresearch.org/fact-tank/2018/03/16/how-millennials-compare-with-their-grandparents/

o A 1951 essay in Time Magazine dubbed the people in this age group as the “Silent Generation” because they were more cautious than their parents.

o The Silent Generation helped share the 20th century pop culture, with iconic filmmakers, television legends and the groundbreaking political satirists.

No members of the Silent Generation

have served as president

The Silent GenerationBorn 1925-1945SAMPLE

THE BABY BOOMER GENERATION

BORN 1946-1964

http://extension.missouri.edu/extcouncil/documents/ecyl/Meet-the-generations.pdf

Characteristics:

o Grew up during the Civil Rights Movement and the Cold War

o Born during the spike of child births after WWII

o Created the term “workaholic”

o Work ethic is measured in hours worked

o Expect loyalty from those they work with

o Teamwork is critical to success

o Referred today as the “Empty Nesters”

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72.5

As of 2017, the number of baby boomers

who were born or immigrated to the U.S. is

about

“American Generation Fast Facts.” CNN. August 27th, 2017. http://www.cnn.com/2013/11/06/us/baby-boomer-generation-fast-facts/index.htmlhttp://www.pewresearch.org/fact-tank/2018/03/16/how-millennials-compare-with-their-grandparents/

o The Baby Boomers were named for an uptick in the post WWII birth rate.

o At the end of 1946 there were approximately 2.4 million baby boomers. In 1964, there were nearly 72.5 million baby boomers.

Bill Clinton was the first baby boomer to serve

as president followed by George W. Bush, Barack Obama and President

Donald Trump

million

The Baby BoomersBorn 1946-1964SAMPLE

THE GENERATION XBORN 1965-1980

http://extension.missouri.edu/extcouncil/documents/ecyl/Meet-the-generations.pdf

Characteristics:

o First generation to develop ease and comfort with technology

o Had to learn to fend for themselves

o They have the “carpe diem” attitude

o Multi-taskers

o Value family time

o Work smarter, not harder

o Expect immediate and ongoing feedback and is comfortable giving feedback to others

o Experience more divorces than any other generation

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64.8

As of 2017, the number of Generation

X-ers was about

“American Generation Fast Facts.” CNN. August 27th, 2017. http://www.cnn.com/2013/11/06/us/baby-boomer-generation-fast-facts/index.html http://www.pewresearch.org/fact-tank/2018/03/16/how-millennials-compare-with-their-grandparents/

o “Class X” was a name of a chapter in a 1983 book, “Class: A Guide Through The American Status System,” by historian Paul Fussell.

o In 2016, the number of millennials and GenXers in the United States passed the number of baby boomers and silent generation, according to the Census Bureau.

In the 2016 presidential election, GenerationX-ers and Millennials

made up more than half of the electorate, according to Pew

Research.

million

The Generation XBorn 1965-1980SAMPLE

THE MILLENNIALSBORN 1981-1997

http://extension.missouri.edu/extcouncil/documents/ecyl/Meet-the-generations.pdf

Characteristics:

o Grew up with technology –computers, phones, internet, etc.

o Also known as the “Entitlement generation”

o Boomer and late X’er parents raised them to be sheltered and to constantly build Millennials’ self-esteem

o More ethnically and racially diverse than older generations

o Want to be like their peers but with a unique twist

o Work to live, rather than living to work

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70.15

As of 2017, the number of millennials

ranged from

“American Generation Fast Facts.” CNN. August 27th, 2017. http://www.cnn.com/2013/11/06/us/baby-boomer-generation-fast-facts/index.htmlhttp://www.pewresearch.org/fact-tank/2018/03/16/how-millennials-compare-with-their-grandparents/ http://www.pewresearch.org/fact-tank/2018/04/11/millennials-largest-generation-us-labor-force/http://www.pewresearch.org/fact-tank/2018/03/01/millennials-overtake-baby-boomers/

o The term millennial was introduced in 1992 by Howe and Strauss when their book “Generations” was published.

o More than one-in-three American labor force participants (35%) are Millennials, making them the largest generation in the U.S. labor force.

Millennials are expected to overtake

Boomers in population in 2019 as their

numbers swell to 73 million and Boomers

declined to 72 million.

million

The MillennialsBorn 1981-1997SAMPLE

ACTIVITY

Tell a story about a financial mistake

oHow old were you ?

oWhat happened?

oWhy did it happen?

oWhat did you learn from this?

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HOW TO AVOID PITFALLS AT EVERY AGE

• Build Your Credit

• Save money every month

• Become financially independent

• Start paying off school debts

In your 20’s In your 40’s In your 60’sIn your 30’s In your 50’s

• Start saving for wedding and children in your own account

• Pay off all non-mortgage debt

• Save 6 months worth of income

• Get term life insurance?

• Get credit card debt under control

• Max out retirement contributions

• Rebalance your retirement portfolio’s

• Pay off your mortgage

• Reach your retirement savings goal

• Sell unneeded assets

• Plan your estate

https://www.huffingtonpost.com/simple-thrifty-living/in-your-20s-40s-60s-the-b_b_5686551.html

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Source: Credit Karma

630.23 628.46 629.63

646.53

696.57SAMPLE

GOALS FOR YOUR 20’S

Aim to save 25% of your overall gross pay. This is a combination of your 401K

withholdings, matching funds from your employer and any cash savings that

you have. Make sure your lifestyle

expenses does not exceed 75% of your gross

income.

https://www.cnbc.com/2017/02/22/heres-how-much-money-you-should-have-saved-at-every-age.html

Start contributing 15% to retirement each month.

https://www.thebalance.com/savings-goals-to-reach-in-your-20s-4113000

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o Forgetting to establish a credit history

o Taking out way too many credit cards

o Paying bills late

o Building way too much debt early on

o Using emergency funds for non-emergencies

o Eating out too much

o Not saving for retirement early

o Paying too much in taxeso As much fun as it is to get a big tax return, that means your employer is withholding too much

o Paying too much in rent o No more than 30% of your income

BIGGEST MISTAKES A 20-SOMETHING MAKES

https://www.huffingtonpost.com/gobankingrates/20-things-every-20somethi_b_6146658.html?slideshow=true#gallery/299842/10

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GOALS FOR YOUR 30’S

By age 35, you should have

2xyour salary.

Have an equivalent of your annual salary saved.

If you earn $50,000 a year, aim to have $50,000

in savings when you hit 30.

https://www.cnbc.com/2017/02/22/heres-how-much-money-you-should-have-saved-at-every-age.html

No more student debt!

Not living paycheck to paycheck.

https://www.huffingtonpost.com/pauline-paquin/financial-goals-you-should-reach-by-30_b_9693740.html

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WHAT YOU SHOULD FOCUS ON IN YOUR 30’S

o Advancing in your career

o Rethink your budget

o Adjust your insurance coverage

o Pay off all nonmortgage debt

o Increase your emergency fund

o Save 15% of your income for your retirement

o Have your will and trust written

o Do not try and keep up with the Jones’s

https://www.kiplinger.com/article/saving/T063-C006-S001-10-financial-commandments-for-your-30s.html

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GOALS FOR YOUR 40’S

By age 40, have

3x your annual salary saved

Have

4x by age 45

https://www.cnbc.com/2017/02/22/heres-how-much-money-you-should-have-saved-at-every-age.html

Max out your employee benefits

http://www.bankrate.com/finance/savings/financial-planning-in-your-40s-1.aspx#slide=7

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WHAT YOU SHOULD FOCUS ON IN YOUR 40’S

o Use and pay off your credit cards each month

o Avoid lifestyle inflation

o Boost your retirement contributions and evaluate your retirement account

o Check your asset allocation in your portfolio and see if it makes sense for your current situation

o DON’T raid your retirement accounts for kid’s college and weddings

o What are your retirement goals? How are you going to afford them?

o Make sure your will is in place – trusts and Power of Attorney

o Enjoy your money now!

https://www.forbes.com/sites/jrose/2015/04/06/40-financial-rules-for-40-year-olds/3/

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GOALS FOR YOUR 50’S

By age 50, have

5xyour annual salary saved

Have

6x saved by age 55

https://www.cnbc.com/2017/02/22/heres-how-much-money-you-should-have-saved-at-every-age.html

No more than

36% of your pretax income should go to all debt:

your house, auto loans, credit cards

https://www.cbsnews.com/news/11-financial-goals-to-hit-before-youre-50/

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WHAT YOU SHOULD FOCUS ON IN YOUR 50’S o Debt – tamed

o No more than 36% of your pretax income should go to all debt: your home debt, credit card debt and auto loans

o Have your retirement goals defined

o Bump up your retirement contributions

o Your will – is it updated?

o Start to plan social security

o How much will you get?

o When will you take it out?

o Insurance – review and adjust accordingly to your current situation

https://www.moneytalksnews.com/10-financial-goals-hit-before-youre-50/

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GOALS FOR YOUR 60’S

By age 60, have

7xyour annual salary saved

Have

8xsaved by age 65

https://www.cnbc.com/2017/02/22/heres-how-much-money-you-should-have-saved-at-every-age.html

Reach your retirement savings goals

Sell unneededassets

https://www.huffingtonpost.com/simple-thrifty-living/in-your-20s-40s-60s-the-b_b_5686551.html

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THINGS YOU NEED TO KNOW BEFORE YOU’RE 60 o How much longer do you expect to work?

o What is the best time for you to begin to take Social Security? Your spouces?

o How much guaranteed income do you have?

o What is your safe withdrawal rate?

o Should you let your term life insurance laps?

o Plan for your future health care costs. Do you need long-term care insurance?

o Is your financial planner looking out for your best interest for retirement?

o Have you considered the devastating affects of market drops of 40%, 50% or 60%? http://time.com/money/4079145/10-things-to-know-about-money-before-60/

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How to help protect your wealth

_____________________________________

Are you on the right track for your age?

_____________________________________

How can we help you?

SAMPLE

HOW CAN WE HELP YOU?

Analyze your current situation

Set realistic expectations for your financial future

Meet with you 5 to 6 times over the next year to make sure

you are on the right track

Offer our fiduciary advice and suggested financial

strategies

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