The Northwestern Mutual Life Insurance Company – Milwaukee, WI Life After Graduation Thomas J Canale CLU, CFP

Life After Graduation (August 2011)The Northwestern Mutual Life Insurance Company – Milwaukee, WI We will talk about.. Accumulating Debt Budgeting Group/Company Benefits Insurance (personal and company) Salary vs. Commission Investments Overall Financial Security

Life After Graduation (August 2011)The Northwestern Mutual Life Insurance Company – Milwaukee, WI Things to think about….

Life After Graduation (August 2011)The Northwestern Mutual Life Insurance Company – Milwaukee, WI Most Students accumulate… Student Loans Multiple Credit Card Debts Poor Marks on Credit Score

Life After Graduation (August 2011)The Northwestern Mutual Life Insurance Company – Milwaukee, WI Average Amounts of Debt Wall Street Journal: $23,186 in Student Loans USA Today: $3,173 in Credit Card Debt –Average credit card interest rate is 27.88% –$ of the average credit card debt is interest Over 78% of College Students have at least one credit card Wall Street Journal – Sept. 4, 2009 USA Today - April 13, 2009 Creditcards.com survey 2010 Nellie Mae

Life After Graduation (August 2011)The Northwestern Mutual Life Insurance Company – Milwaukee, WI Plus expenses after college… House Payments/Rent Car Payments/Car Insurance Health/Dental Insurance Utility and Cable Bills Cell Phone Bills Groceries Gas Entertainment

Life After Graduation (August 2011)The Northwestern Mutual Life Insurance Company – Milwaukee, WI Managing your money Step 1: Identify your goals. Long or Short Step 2: Record your income. Variable and Fixed Step 3: Collect and calculate your expenses Step 4: Determine Need vs. Want Step 5: Develop a savings plan for your budget Step 6: Implement and MAINTAIN a plan

Life After Graduation (August 2011)The Northwestern Mutual Life Insurance Company – Milwaukee, WI Example Budget CategoryMonthly Budget AmountActual AmountDifference INCOME: Wages/Income Variable Income INCOME SUBTOTAL EXPENSES: Taxes Rent/Mortgage Student Loans Credit Card Payments Utilities Groceries/Food Clothing Shopping Entertainment Miscellaneous/Other EXPENSES SUBTOTAL NET INCOME (Income - Expenses)

Life After Graduation (August 2011)The Northwestern Mutual Life Insurance Company – Milwaukee, WI Group Benefits Life Insurance Short-term Disability Long-term Disability Vision Dental Health 401k

Life After Graduation (August 2011)The Northwestern Mutual Life Insurance Company – Milwaukee, WI 401k or IRAs Do not touch your account until you reach the age of 59 ½ 10% penalty fee plus taxes if taken out before then For 401ks ONLY: Companies usually match a portion of your contribution

Life After Graduation (August 2011)The Northwestern Mutual Life Insurance Company – Milwaukee, WI Employer Taxes 1099 –Independent Contractors W-4 –Determining how much Federal and State taxes to take out during that year W-2 –Breakdown of what you earned that year and what was withheld for taxes

Life After Graduation (August 2011)The Northwestern Mutual Life Insurance Company – Milwaukee, WI Benefits: Company vs. Self-employed Company –Provided for you Self Employed –Must research the best plan that fits your needs

Life After Graduation (August 2011)The Northwestern Mutual Life Insurance Company – Milwaukee, WI Salary Pros: –Constant/consistent income –Easier to budget Cons: –No overtime pay –Smaller annual increases (if any) –Usually 45+ hours worked per week

Life After Graduation (August 2011)The Northwestern Mutual Life Insurance Company – Milwaukee, WI Commission Pros: –Virtually unlimited income potential –Pay for performance –Flexible work schedule –No risk of downsizing Cons: –Variable pay –Harder to budget

Life After Graduation (August 2011)The Northwestern Mutual Life Insurance Company – Milwaukee, WI Investments Cash Bonds –Less risky, guaranteed payback with interest Stocks –Involves more risk, but higher payout potential Mutual Funds –Combining a diverse group of companies

Life After Graduation (August 2011)The Northwestern Mutual Life Insurance Company – Milwaukee, WI Overall Financial Security Be aware that a loan and a credit card is BORROWED money Start budgeting and saving early in your career (the earlier the better) Be aware of future expenses Save first and spend last Determine the best insurance plan to fit your needs Find out what compensation suits you Always assess the needs of you and your family first

Life After Graduation (August 2011)The Northwestern Mutual Life Insurance Company – Milwaukee, WI ON A SIDE NOTE….. Northwestern Mutuals Internship Program Actual business experience for your resume Opportunities to develop yourself and others Flexible work schedule Assists with career selection process Head start program for the Northwestern Mutual Financial Network career

Life After Graduation (August 2011)The Northwestern Mutual Life Insurance Company – Milwaukee, WI One of Americas Top 10 Internships" for 15 consecutive years Capital Fellows Programs Deloitte LLP Gamin International Google, Inc. J.P. Morgans Investment Bank NASA Nickelodeon Animation Studios Northwestern Mutual Financial Network Smithsonian Institution The Boston Consulting Group -Vault Guide to Internships, 2011 edition

Life After Graduation (August 2011)The Northwestern Mutual Life Insurance Company – Milwaukee, WI Compensation Interns have an opportunity to earn up to $2,000 per stipend period (summer, fall, spring) in addition to commissions. Bonuses are available during each internship period. The internship program can provide a solid base for those who choose to pursue a full-time contract after graduation

Life After Graduation (August 2011)The Northwestern Mutual Life Insurance Company – Milwaukee, WI Contact us for more information Visit us at northwesternmutual.com Thomas J Canale