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Welcome ! Presenter:. Who We Are: A leadership and advocacy organization for those who provide, support and benefit from financial planning.

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Presentation on theme: "Welcome ! Presenter:. Who We Are: A leadership and advocacy organization for those who provide, support and benefit from financial planning."— Presentation transcript:

1 Welcome ! Presenter:

2 Who We Are: A leadership and advocacy organization for those who provide, support and benefit from financial planning.

3 Standard of Care All financial planning services will be delivered in accordance with the following standard of care: Put the client's best interests first; Act with due care and in utmost good faith; Do not mislead clients; Provide full and fair disclosure of all material facts; and Disclose and fairly manage all material conflicts of interest.

4 Code of Ethics Integrity Objectivity Competence Fairness Confidentiality Professionalism Diligence From its earliest designs, the Financial Planning Association (FPA) included a mandate that members adhere to a Code of Ethics that reflects their commitment to help clients achieve their life goals. All FPA members are asked to commit to this Code, CFP® certificants and non-CFP certificants alike. FPA's Ethics Committee is charged by the Board of Directors with reviewing alleged violations to the Code of Ethics and advising staff on ways to enhance awareness by FPA members of their obligations under the Code.

5 National Website o General Public Tab o Planner Search o Request Speakers o Educational Seminars o Tools & Resources

6 FPAs Website Tabs Life Goals Life Crisis Find a Planner Ask A Planner Whats Financial Planning Glossary

7 FPA Resources o Tip of the Week o Articles o Checklists o Brochures o Audio & Video o Hot Topics

8 Contact us – Locally Contact us – Nationally PLAN (7526)

9 Money Matters Ka-ching!

10 Your generation has incredible spending power. $100 Billion spent a year of your own money, plus you influence how your parents spend billions more.

11 What do YOU do with money?

12 Spending Money Where do you buy? Whats the connection between earning and spending? What is your spending personality? Do you know where your money goes? That money talks, I'll not deny, I heard it once: It said, "Goodbye." ~Richard Armour

13 TRUE OR FALSE? Most millionaires work in glamorous jobs, such as sports, entertainment, or high tech FALSE Most millionaires work in ordinary jobs including: welding contractors, owners of mobile-home parks & paving contractors

14 What is important to you? familyhealthhappinesshonesty powergenerosity recreationpeace of mind making a difference Solitude integrityromance honor Acceptance freedomstatusfunwealth workfriendsspirituality Independencecreativityadventurebalance love servicelearning explorationbeautyintegrity educationfinancial security relationships

15 Should you buy it? Does your spending relate to your values? We can tell our values by looking at our checkbook stubs. ~Gloria Steinem

16 Whats Worth More to You? A Bottle of Soda Every Day or $921,971? Save and Invest Just $1.50 Per Day ($45.63 per month) Assumes Monthly Compounding at % or 10.36% per year Age When You Start Investing Amount Saved Per Month # of Years Spent Investing # of Months Total Amount Invested Value of Investment at Age 67 17$ $27,375$921,971 22$ $24,638$548,228 27$ $21,900$325,121 32$ $19,163$191,935 37$ $16,425$112,429 42$ $13,688$64,967 47$ $10,950$36,635 52$ $8,213$19,722 57$ $5,475$9,625 62$ $2,738$3,598

17 This chart shows how much you would accumulate by age 65 if you invest $2,000 each year starting at age 25 vs. starting at age 35, 45, or 55. The Magic of Compounding 25 $0 $200 $400 $ $0 $200 $400 $600 $800 $822,180 $359,532 $145,237 $45,977

18 By starting 10 years earlier, Investor A saved $40,000 less but retired with almost $250,000 more than Investor B. By Starting Early, You Can Save Less but Have More

19 Time Can Work For You, or Against You… Inflation: the tendency for prices to rise over time. Inflation Erodes the Purchasing Power of Your Money! You can help overcome inflation by starting to save at an early age.

20 The Impact of Inflation 1 Source: Energy Information Administration. 2 Source: The College Board, Trends in College Pricing. 3 Source: Motion Picture Association of America. Gallon of Unleaded Regular Gas 1 Private Four-Year College tuition 2 Movie Ticket $0.61 $1.16 $1.36 $1.89 $ $2,117 $9,340 $17,123 $19,710 $31, $2.00 $2.75 $3.55 $5.00 $6.00 $7.00 $

21 TRUE OR FALSE? 4 out of 5 Millionaires are college graduates TRUE

22 We know youve heard it before, but… An investment in knowledge always pays the best interest. ~Benjamin Franklin Its true! Check out the stats…

23 Education = Earning potential The more education you complete, the more choices you have and the higher your average annual salary could be. $1,500,000 $2,000,000 High School 2 Year 4 Year Lifetime Earnings

24 Saving vs. Investing SAVE for short-term goals INVEST for long-term goals Saving is putting money aside and not wasting it. Investing is putting your time or money into something with the hope of getting something greater in return – invest to make a profit. Investing involves risk; the more risk, the greater the possible reward.

25 The safe way to double your money is to fold it over once and put it in your pocket. ~Frank Hubbard

26 Types of Investments Savings (short-term) Bank Accounts – checking and savings CDs Savings Bonds Money Market Accounts Investments (long-term) Stocks Bonds Mutual Funds

27 We are made wise not by the recollection of our past, but by the responsibility for our future. ~George Bernard Shaw

28 Build Emergency Savings Pay for College Save for Retirement Today Buy New Home Investment Objective – what are you saving for? Time Horizon – When do you need to use the money? Risk Tolerance – How comfortable are you with the markets ups and downs?

29 What Can You Do NOW? Be smarter about your spending Shop around for the best deals Dont buy on impulse Use coupons or wait for sales Always use cash

30 What Can You Do NOW? Start saving NOW in a bank account for money youll need in the short term. Spend money only on what you NEED (and plan for spending on things you WANT). LIST your financial goals – with as much detail as possible. Save $150 for a new skateboard. Avoid spending on junk food to save for a new pair of jeans.

31 How Do You Open an Account? Savings Account: Need Social Security number or ITIN Need state issued photo ID No minimum age to open Savings Account If under 18, must be secondary account w/ parent/guardian Checking Account: Need Social Security number or ITIN Need State issued photo ID Must be 16 years or older. If under 18, must be secondary account w/ parent/guardian

32 You got to be careful... if you don't know where you're going, you might not get there. ~Yogi Berra

33 Lets review Time value of money More education means more choices NOW is the time to start saving…any amount is better than nothing!

34 Thank You! Curriculum Development Committee: Beth Albrecht, BestPrep Carla Barker, Northwestern Mutual John Comer, Comer Consulting LLC Mike Eckert, Cornerstone Capital Management Andy Fishman, Affiance Financial Shawn Jacobson, Legacy Financial Advisors Bob Kaitz, BestPrep Steve Lear, Affiance Financial Nicole Middendorf, Strategic Financial Janet Stanzak, Financial Empowerment Bonnie Vagasky, BestPrep BestPrep gratefully acknowledges the Foundation for Financial Planning for providing financial support to fund this project. We also are indebted to the Financial Planning Association of Minnesota for their help in creating and piloting this presentation.

35 Contact us – Locally Contact us – Nationally PLAN (7526)


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