2. Personal Financial Planning Webinar General Overview Diana Webb, PhD, LUTCF

3. The Financial Planning Process 1. Helping the client: Establish Financial Goals Develop Financial Objectives 2. Analyzing & Evaluation the Client’s Current Financial Status 3. Developing & Communicating Recommendations 4. Implementing the Recommendations 5. Monitoring the Recommendations

4. Tools for Personal Financial Planning 1. Understanding Time Value of Money concept (money today is worth more than in the future (taxes & inflation) 2. Future Value & Compounding of Interest (interest earned on interest) 3. Starting today to save for your future 4. Purchasing Power Risk 5. The government is not here to take care of you

5. What to include in your Financial Plan 1. Foundation (what holds up your financial house)? Protection needs, insurances 2. First floor of your financial house (savings, checking, emergency fund) 2. Second floor of your financial house (retirement accounts, educational funding) 3. Third floor of your financial house, after every floor is built (speculative investments, collections)

6. Phases of Financial Planning Phase One: Accumulation phase age 25-65 working years of your life Phase Two: Distribution phase age 65-85 retirement years of your life Phase Three: Estate Planning making sure your assets go to your heirs

7. Thank you for your participation! Have a question for Dr. Webb? Email her at: webb1cd@cmich.eduwebb1cd@cmich.edu www.global.cmich.edu/pdwebinars