Starting Your Career Off Right

The Job Offer

• Take your time• Salary

o Check out surveyso Talk to recruiterso Scan job postingso Ask friends and associates

• What can you expect?• Vacation and other perks

The Job Offer—Benefits

• Insuranceo Medical

o Prescription drug coverageo Visiono Dental

o Disabilityo Life

• Your contributions

The Job Offer

• Company background• Favorable industry• Your interest• Job duties• Advancement opportunities• Corporate culture• Supervisor

Achieving Your Financial Goals

Achieving Your Financial Goals

• Set clear goals• Resolve to spend less• Create an emergency fund• Make saving a priority

Achieving Your Financial Goals

• Reduce credit card debt• Evaluate your insurance coverage• Think taxes

Budgeting

• Gross monthly income• Net income• Fixed expenses• Flexible expenses

Budgeting

• Discretionary expenses• Total it up• Increase your savings• Programs like Quicken can help

Student Loans

• The sooner, the better• Grace period• Repayment options

o 10 years

• Budget• Don’t default

Credit Cards

• Be aware of teaser rates• Stick with one credit card• Pay in full every month

Credit Cards

• Pay on time• Avoid cash advances• Protect your credit history

Credit Cards

• Don’t exceed your credit limit• Review statements carefully• Report lost or stolen cards immediately• Protect personal information

Savings and Investing

• Start small• Contribute to your retirement plan• Save through payroll deduction plans• Set up an automatic investment plan• Round up your mortgage

Savings and Investing

• Bank your raises• Keep paying off a loan• Pay off your credit cards• Reinvest dividends• Keep track of where the money goes

Investing for Wealth

• The power of compound interest• Rule of 72

72/2=3672/6=1272/8=9

Investing for Wealth

• Planning for wealth• Make the most of a 401(K)

Investing in Your Future

• Asset Allocationo Stockso Bondso Cash Equivalents

Investing in Your Future

• Asset allocation is ongoing• Diversification• Life circumstances• Investment goals, timeframe and tolerance

Investing in Your Future

• Long-Term Investmentso Mutual Fundso Stocko Bonds

Investing in Your Future

• Retirement Specific Investmentso 401(k)o IRAo Social Security

Investment Options

Short-Term Investments• CD• Money Market Funds• Savings Account

Protecting Your Family Through Insurance

• Life insurance• Choosing coverage

o How much can you afford?o How much is needed?o For how long?o Protection or investment?

Term vs. Permanent

• Termo Largest death benefit for the dollaro Annual renewable and level premiumo Return-of-premium

Term vs. Permanent

• Permanento Combines a death benefit with an investmento Part of the premium is invested, building cash valueo Higher premiumso Whole life, universal or variable life

Term vs. Permanent

• Whole life• Universal life• Variable life

Health Insurance

• Don’t go bare• HMOs• PPOs• POS

Health Insurance

• Flexible Spending Accounts• COBRA• Medicare• Medicaid

Long-Term Disability Insurance

• Benefit Amount• Term of Benefits• Elimination Period• Noncancelable• Guaranteed Renewables• Own Occupation or Any Occupation

Government-sponsored Disability Benefits

• Workers’ Compensation• Social Security Disability• Veterans Benefits• Federal Employees Retirement System

Get Tax Smart

• Get credit for care• Make retirement plan contributions• Improve your recordkeeping• Plan your investment gains

Get Tax Smart

• Give away some assets• Use your vacation home wisely• Get advice early

Disaster Preparedness

Adapted from American Red Cross, Financial Preparations

Protect Your Property

• Install smoke detectors• Elevate utilities to upper floor • Clear surrounding brush• Secure objects that could fall

Adapted from American Red Cross, Financial Preparations

Do a Thorough Home Inventory

• Record location of all original documents• Make visual record of your possessions• Record model and serial numbers

Adapted from American Red Cross, Financial Preparations

Do a Thorough Home Inventory

• Photograph home exterior• Make copies of receipts• Get professional appraisals

Adapted from American Red Cross, Financial Preparations

Insurance for Your Home

• Replacement coverage• Reappraisals• Replacement cost of possessions• State-operated; Federally operated pools

Adapted from American Red Cross, Financial Preparations

Insurance if You Rent

• Location• Renter’s insurance• Comparison shop

Adapted from American Red Cross, Financial Preparations

Cash & Personal Belongings

• Stash some cash• Emergency fund• Credit card • Evacuation box• Safe deposit box

Do What You Can!

More on Natural Disasters

• Red Cross• FEMA—www.fema.gov• NEFE—www.nefe.org

Thank You!