Transcript Society of Financial Service Professiona Financial

Financial Planning for a Life with Multiple Sclerosis
A presentation by the
Society of FSP and the National MS Society
Who is the Society of
Financial Service Professionals?
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National organization established in 1928
Our Delaware Chapter began in 19??
14,000 Board certified/credentialed professionals
Hold one or more professional designations
Financial planning, insurance, accounting & law
Ethical code, continuing education & networking
Society of FSP
and
Financial Education Partners
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FEP is a Community Outreach Program
Has collaborative agreements with NMSS
Specialized programs & assistance
Goal is to enhance financial literacy
Provide guidance; act as a resource
At no cost; we are all volunteers
How we can help you…
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Provide one on one counseling – free!
On specific issues within our expertise
Typically: financial & estate planning,
insurance, legal guidance & COBRA
No duplication of other available services
Coordinated with state NMSS chapter
The #1 Goal: Getting organized
“A journey of a thousand miles
must begin with a single step”
Lao-Tsu
Using the “Adapting” Manual
Much of the information in these slides is
covered in your Adapting manual.
The corresponding page number in the
manual is shown at the bottom of the slide.
Please refer to the manual for further
information on the subject matter.
Keep an up to date file for these
Important Documents
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Birth certificate
Social Security card
Marriage certificates, marital documents
Military papers
Durable power of attorney
Health-care directives
Will, Trust documents
Adapting: Page 9
Maintain a file for these also…
Personal documents/statements:
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Policies: Life, health, disability and LTC
Investment/retirement account information
Savings/checking statements
Mortgage documents
Loans and credit card statements
Employee benefits statements
Tax returns; federal and state
Adapting: Page 9
Professional advisor information
Keep a list of their names and numbers
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Case worker
Medical, pharmacy information
Accountant/tax preparer
Financial planner
Insurance professional
Attorney
Others, emergency contacts
Adapting: Page 10
Managing my finances correctly!
Taking control of your finances means:
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Knowing what you have and what you owe
Making positive changes as needed
Spending wisely…with a plan
Saving for the future
Staying focused
Adapting: Page 42
Managing your expenses….
A saving and spending plan
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Fill out your “Income” spread sheet
Next list all your “Expenses”
Then subtract expenses from income
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Rejoice if it is a positive number!
If it isn’t…you have some homework to do
Then set your short term goals
Work up to longer term goals
Stay focused!
Adapting: Pages 43, 44 & 45
Where do I stand now?
If I am saving a little “extra money”
every month then…
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Planning for the future is very important
Have a “Rainy day” fund…this is a must!
Unexpected things can happen…quite often!
Inflation makes things and services cost more
Adapting: Page 49
Suppose I am over spending?
Prioritize and make needed changes:
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Manage your credit card debt wisely
Review your budget for improvements
Track spending; eliminate non essentials
Consider a life style change
Prioritize your spending & needs
Measure progress towards your goal
Be patient, change takes time
Adapting: Pages 46 & 47
Have a Spending Plan…
a financial wish list!
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List your budget goals…all of them
Estimate time to reach each goal
Figure out the cost
Determine how much to save regularly
Prioritize your goals; #1, #2, #3, etc
Create a time table to reach them
Stay focused!
Adapting: Pages 42, 43, 44, 45 & 46
Sage advice about credit card debt
Some wise suggestions:
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Pay it down…not just the minimum payment
Call the card issuer, ask for better terms
Credit counseling may bring lower payments
Bankruptcy is an option, but not a good one
There is no “easy answer”
Adapting: Page 47
Be Smart, use Credit Cards Wisely!
Let’s look at Mr and Mrs Frivolous:
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Received a new credit card
Charged a $5,000 home theater system
Cut up card; never used it again
Paid minimum each month: $10 or 2%
18% annual interest rate
What did it cost to pay it off?
How long did it take to pay it off?
Wow! I can’t believe it…
I only charged $5,000 on it!
Repaid $17,883
Over 43 years
To pay off the debt by
paying the minimum
amount each month
Identity Theft…the silent thief!
It can happen to you at any time
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Caution is the best deterrent; be alert!
Guard your personal information carefully
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Do NOT give it out on the phone or internet
Beware of internet scams; they look real
Minimize number of credit cards
Review credit card statements for “errors”
Check your credit record annually; it is free
Simple things you can do
to minimize identity theft
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Buy a shredder and use it
Don’t leave mail sitting in your mail box
Closely monitor all your financial accounts
Use a “hard wired” computer;
“wireless” can be intercepted and tapped into
Protect your pass words; change often
Safe guard your computer from “spyware”
What about my investments?
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Have reasonable needs and financial goals
A long term investment plan and outlook is best
Proper asset allocation is important
Fund plan with appropriate investments
Periodically monitor and rebalance if needed
Don’t invest in things you don’t understand or need
Work with an advisor who:
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Understands your financial needs
Will assist you in working towards your goals
Adapting: Page 47 & 48
Estate Planning is important!
A logical process with several documents
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Will: Valid, accurate, complete and up to date
Durable Power of Attorney
Health-Care Proxy and Living Will
Special Needs Trust – possibly
Life insurance polices/correct beneficiaries
Other legal documents as needed
Adapting: Pages 62, 63, 64 & 65
Bringing it all together…
A time tested approach that works!
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Maintain up to date files of all documents &
financial information in a safe place
Keep an eye on your spending:
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Appropriate cash management is a priority
Stay within reasonable goals
Manage credit card debt wisely
Save for the future
Stick with suitable investments; avoid risk
Early estate planning is always smart
Evaluate where you stand at least annually
Staying focused will help
you achieve your goals!
“We all have ability…
the difference is how we use it.”
Stevie Wonder
Thanks for joining us today!
This community outreach program
has been presented by:
The Society of FSP Foundation
and its
Financial Education Partners
In cooperation with the
National MS Society
Delaware Chapter
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