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 The Office for Financial Success  Saving  Retirement Investing  What to look for when investing  Types of investments.

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Presentation on theme: " The Office for Financial Success  Saving  Retirement Investing  What to look for when investing  Types of investments."— Presentation transcript:

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2  The Office for Financial Success  Saving  Retirement Investing  What to look for when investing  Types of investments

3  A service of the Department of Personal Financial Planning  Mission: To improve the financial lives of individuals and the advice they receive  We provide one-on-one counseling sessions as well as group workshops & seminars › Major Topics include:  Budgeting  Credit/Debt repayment  Student loans  Taxes

4  Student Financial Counselors  100% Confidentiality  Professionally Trained  Free to MU students  Non-biased information 

5  FREE TAX PREPARATION!  VITA (Volunteer Income Tax Assistance)  The College of Human Environmental Sciences

6 Our office is located in the basement of Stanley Hall – Room 61

7  What about emergencies?  Emergency Savings  Ultimate goal: 3-6 months expenses  Current goal: $1000  Keep it in a liquid account Savings

8  Covers known, but irregular expenses › Car registration; holidays; insurance  Total: $1945 /12 = $165 month  May want to include extra – weddings, baby showers, etc. JanuaryFebruaryMarchApril MayJuneJulyAugust SeptemberOctoberNovemberDecember B-day $30Anniversary $100B-day $50 Vacation $750 Car Registration $215 Christmas $800

9 Retirement 410 K vs. Roth IRA  401 K - Employer sponsored retirement plan  Roth IRA - Individual Retirement Account (IRA)  How you get it: 401K - from your employer Roth IRA - you open with a broker dealer  Contribution amounts 401K - allows for large amounts of investment Roth IRA - only allow for $5,000-$6000 investments per year  Matching 401K - Some employers offer to match a certain amount of your investments Roth IRA - No matching option

10  Investment Options 401K - You can only invest in what the employer offers Roth IRA - you have more control over what you choose to invest in  Tax 401K - Employer invests money before tax so you must pay tax at withdrawal Roth IRA - You have already paid taxes on income so there is no tax paid at withdrawal  Distribution 401K - requires distribution at age 70 1/2. (money can be rolled over into Roth IRA if you do not want the distribution) Roth IRA - no required distribution. It can be left for next generation. Retirement 410 K vs. Roth IRA Cont.

11 Things to consider when investing  Age  Young with a steady income can handle more risk  Older with a fixed income cannot afford to lose a large amount of money  Goals  Saving for your child’s education?  Saving for down payment on home?  Saving for retirement?  Other Risks  Are you a small business owner? You can’t afford too much risk  Does your spouse agree?

12 Types of Investments  Diversify!!!!  If all your money is in one place you could easily lose it all  Spread your money in different industries, types of investments, types of risk  Bonds  Purchasing the company’s debt  Priority for payback means less risk  Pay a fixed amount  Can receive periodic payments  Not very liquid  Stocks  Purchasing part of the company (you are an owner)  You get paid last and hold more risk  You have an opportunity to receive high dividends  Can receive periodic payments  Not very liquid

13 Types of Investments  Mutual Funds  Investing with a group  Allows you to receive a diverse portfolio cheaper  Decreases risk  Liquid  Real estate  Tangible  Little to no inflation risk  Not liquid  Insurance  Whole Life  Allows you to build savings into insurance plan  Somewhat liquid

14  FINPLN 1183 – Financial Success › 1 hour online course › Covers basic financial information – student loans, credit, budgeting, etc.  FINPLN 2183 – Personal & Family Finance › 3 hour course › Goes into detail on budgeting, credit, major purchases, personal income taxes, etc.  FINPLN 4483 – Financial Survival › 1 hour online course › Covers information needed to survive in the work-world – employee benefits, debt repayment, purchasing a home, etc.

15  Set up appointment via Website ›

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