Transcript CPA Financial Literacy Mobilization Toolkit for Career

Starting Your Career Off Right
The Job Offer
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Take your time
Salary
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Check out surveys
Talk to recruiters
Scan job postings
Ask friends and associates
What can you expect?
Vacation and other perks
The Job Offer—Benefits
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Insurance
o Medical
o Prescription drug coverage
o Vision
o Dental
o Disability
o Life
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Your contributions
The Job Offer
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Company background
Favorable industry
Your interest
Job duties
Advancement opportunities
Corporate culture
Supervisor
Achieving Your Financial Goals
Achieving Your Financial Goals
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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
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Gross monthly income
Net income
Fixed expenses
Flexible expenses
Budgeting
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Discretionary expenses
Total it up
Increase your savings
Programs like Quicken can help
Student Loans
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The sooner, the better
Grace period
Repayment options
o 10 years
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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
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Don’t exceed your credit limit
Review statements carefully
Report lost or stolen cards immediately
Protect personal information
Savings and Investing
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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
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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=36
72/6=12
72/8=9
Investing for Wealth
• Planning for wealth
• Make the most of a 401(K)
Investing in Your Future
• Asset Allocation
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Stocks
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Bonds
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Cash Equivalents
Investing in Your Future
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Asset allocation is ongoing
Diversification
Life circumstances
Investment goals, timeframe and tolerance
Investing in Your Future
• Long-Term Investments
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Mutual Funds
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Stock
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Bonds
Investing in Your Future
• Retirement Specific Investments
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401(k)
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IRA
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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
• Term
o Largest death benefit for the dollar
o Annual renewable and level premium
o Return-of-premium
Term vs. Permanent
• Permanent
o Combines a death benefit with an investment
o Part of the premium is invested, building cash value
o Higher premiums
o Whole life, universal or variable life
Term vs. Permanent
• Whole life
• Universal life
• Variable life
Health Insurance
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Don’t go bare
HMOs
PPOs
POS
Health Insurance
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Flexible Spending Accounts
COBRA
Medicare
Medicaid
Long-Term Disability Insurance
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Benefit Amount
Term of Benefits
Elimination Period
Noncancelable
Guaranteed Renewables
Own Occupation or Any Occupation
Government-sponsored Disability Benefits
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Workers’ Compensation
Social Security Disability
Veterans Benefits
Federal Employees Retirement System
Get Tax Smart
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Get credit for care
Make retirement plan contributions
Improve your recordkeeping
Plan your investment gains
Get Tax Smart
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Give away some assets
Use your vacation home wisely
Get advice early
Disaster Preparedness
Protect Your Property
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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
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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
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Photograph home exterior
Make copies of receipts
Get professional appraisals
Adapted from American Red Cross, Financial Preparations
Insurance for Your Home
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Replacement coverage
Reappraisals
Replacement cost of possessions
State-operated; Federally operated pools
Adapted from American Red Cross, Financial Preparations
Insurance if You Rent
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Location
Renter’s insurance
Comparison shop
Adapted from American Red Cross, Financial Preparations
Cash & Personal Belongings
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Stash some cash
Emergency fund
Credit card
Evacuation box
Safe deposit box
Adapted from American Red Cross, Financial Preparations
Do What You Can!
More on Natural Disasters
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Red Cross
FEMA—www.fema.gov
NEFE—www.nefe.org
Thank You!