Transcript 360 Degrees of Financial Success

Financial Planning
Tips for
a Lifetime
Advice from CPAs
360 Degrees of Financial Success
• Realistically answer the question:
– “Are you prepared for your financial future?”
– Pinpoint your specific problem areas
– Highlight steps to turn things around
360 Degrees of Financial Success
• Americans spend 120% of what they make…
– How long will your savings last?
– What can you do to fix the problem if your
savings are nowhere near what they need to
be?
360 Degrees of Financial Success
• THINK SMALL and DO IT REGULARLY
– Thinking small can bring big rewards
• PAY YOURSELF FIRST
• “DON’T TOUCH” account
• The only wrong thing to do is to do nothing about
protecting your financial future
360 Degrees of Financial Success
• Credit card debt
– “How can I avoid the credit card debt
squeeze?”
– “If I’m already there, how do I push my way
out?”
360 Degrees of Financial Success
• Avoiding the credit care squeeze…
– Limit the number of credit cards you use
– Paying the total amount due, never incurring
the interest rates
• Working your way out…
– Stop using credit cards
– Talk to a financial planner
– Work with your creditors
360 Degrees of Financial Success
• Life events that require financial attention
– Parenting
– College
– Jobs/Career
– Home ownership
– Unexpected crisis/Disaster
– The “Sandwich Generation”
– Retirement
– Estate planning
360 Degrees of Financial Success
• Home ownership
– Right time to buy
– Financing
– Monthly mortgage payments
– Real estate attorney
– Future marketability
– Home-owners insurance
360 Degrees of Financial Success
• Parenting
– Teach your children about money
– Manage your finances so your kids will have
every opportunity to become productive,
responsible adults
– You also have to plan for the contingencies
that come with parenting
360 Degrees of Financial Success
• Parenting
– For 5-8 year olds: Start an allowance,
comparison shop
– For 9-12 year olds: Money to supplement their
allowance
– For teens: Money management skills
– For college students: Staying within a budget
360 Degrees of Financial Success
• College
– Financial Aid
– Scholarships and sponsorships
– Part-time jobs
– Delayed admission
360 Degrees of Financial Success
• Career
– 401K plans
– Automatic deposit
– Retirement plans
– Disability and life insurance
– Health insurance
– Unemployment insurance
360 Degrees of Financial Success
• Unexpected Crisis/Disaster
– Divorce
• Do you make enough to support yourself?
• Which assets do you want?
• Can you afford to keep the family house?
• Are you better off selling and dividing up
the proceeds?
360 Degrees of Financial Success
• Unexpected Crisis/Disasters
– Fires
– Floods
– Earthquakes
– Prolonged health issue
– Death of a spouse
360 Degrees of Financial Success
• The “Sandwich Generation”
– Those caught in the middle between raising
and educating their kids and tending to the
needs of aging parents
• Learn about your parents ailments to make a
realistic budgeting assessment
• Know and understand your parents financial
situation and their wishes
360 Degrees of Financial Success
• Retirement
– Start early
– Take full advantage of every retirement option
– Invest the maximum allowed in an IRA
360 Degrees of Financial Success
• Estate Planning
– Be sure you have a will
– Formulate a strategy
360 Degrees of Financial Success
• Financial Circle of Life
– “Hope for the best. Expect the worst.”
– Think Small and Do It Regularly!