CPA Mobilization Kit: Parenthood

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Achieving Your Financial Goals

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Achieving Your Financial Goals

• Set Clear Goals • Resolve to Spend Less • Create an Emergency Fund • Make Saving a Priority

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Achieving Your Financial Goals

• Reduce Credit Card Debt • Evaluate Your Insurance Coverage • Think Taxes

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Budgeting

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

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Budgeting

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

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Making College a Reality

• Implement a savings blitz o o Tighten the belt Tuition management services o o Sec. 529 Plans Coverdell Education Savings Accounts

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Making College a Reality

• Financial aid o o o Scholarships or grants Student or parent loans Work-study

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Making College a Reality

• Seek out scholarships • Tap your home equity • Comparison shop • NO RETIREMENT LOANS

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Protecting Your Family Through Insurance

• Life insurance • Choosing coverage o How much can you afford?

o o o How much is needed?

For how long?

Protection or investment?

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Term vs. Permanent

• Term o Largest death benefit for the dollar o o Annual renewable and level premium Return-of-premium

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Term vs. Permanent

• Permanent o o Combines a death benefit with an investment Part of the premium is invested, building cash value o o Higher premiums Whole life, universal or variable life

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Term vs. Permanent

• Whole life • Universal life • Variable life

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Health Insurance

• Don’t go bare • HMOs • PPOs • POS

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Health Insurance

• Flexible Spending Accounts • COBRA • Medicare • Medicaid

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Long-Term Disability Insurance

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

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Government-sponsored Disability Benefits

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

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Teaching Your Child Money Management Elementary School

• Piggy bank • Allowance • Teach value • Save for a special item

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Teaching Your Child Money Management Middle School

• Increase responsibilities and decisions • Open a bank account • Encourage comparison shopping • Help understand needs vs. wants • Encourage donating time, money

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Teaching Your Child Money Management High School

• Be consistent • Create a budget • Part-time job • Apply for college scholarships and financial aid

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

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

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

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

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Investing in Your Future

• Asset Allocation o o o Stocks Bonds Cash Equivalents

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Investing in Your Future

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

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Investment Options

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

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Investing in Your Future

• Long-Term Investments o o o Mutual Funds Stock Bonds

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Investing in Your Future

• Retirement Specific Investments o o o 401(k) IRA Social Security

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Estate Planning

• Durable Power of Attorney • Advanced Medical Directive • A Will • A Trust

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Estate Planning

• Estate • Estate Tax • Executor • Trustee • Principal • Beneficiary • Probate

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Thank You!

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants