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It’s Your Money!

It’s Your Money!. Week 1: Introduction and Quiz. Financial and Estate Literacy, Inc. ABOUT US Mission Statement Providing resources people need to make confident financial and estate decisions Non Profit - 501(c)3 organization Sponsored by Charitable Organizations Pure education

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It’s Your Money!

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  1. It’s Your Money! Week 1: Introduction and Quiz

  2. Financial and Estate Literacy, Inc. ABOUT US • Mission Statement • Providing resources people need to make confident financial and estate decisions • Non Profit - 501(c)3 organization • Sponsored by Charitable Organizations • Pure education MORE INFO... Please visit our website FELit.org

  3. Workshop Rules • NO COMMERCIAL OR FOR PROFIT SPONORS • NO SPEAKER WILL RECEIVE ATTENDEES’ CONTACT INFORMATION • NO FINANCIAL OR INSURANCE PRODUCT WILL BE SOLD • NO CHARITY WILL SOLICIT A DONATION FROM ATTENDEES

  4. Quiz 1. Women are better money managers than men TRUE. Generally more cautious and deliberate 2. A fixed annuity is regulated by the SEC and generally offers protection from inflation FALSE. Insurance not regulated by SEC. “Fixed” annuity not regulated 3. Insurance agents are required by California law to be compensated through commissions TRUE. It’s the law

  5. 4. The first question you should ask a Financial Advisor is about their education & experience FALSE. “How are you paid?” 5. The Securities Investor Protection Corporation was chartered by congress to combat fraud FALSE. Protects you from broker theft or bankruptcy 6. It is normal for your investments to go up and down TRUE.

  6. 7. Declining interest rates make bond funds appreciate in value TRUE. It is an inverse relationship 8. If you owe a lot of money at death or are concerned with fraudulent claims at the time of death you probably better off going through probate and not have a living trust TRUE. We will not sell the idea of a living trust! 9. Money market funds lend out their money for up to 90 days TRUE.

  7. 10. People are very rational when it comes to their money FALSE. Almost never 11. An advisor is legally obligated to serve your best interests FALSE. “Suitability” standards for brokers 12. Key issues to review before investing are: your time horizon, cash flow needs, risk tolerance, future income requirements and your tax situation TRUE. Before you invest a dime a person should go through all of these issues

  8. 13. Suppose you have $100 in a savings account earning 2% interest per year. After 5 yrs, would you have more than $102, exactly $102 or less than $102? MORE THAN $102 14. Imagine that the interest rate on your savings account is 1% a year and inflation is 2%/year. After 1 year, would the money in the account buy more than it does today, exactly the same, or less? LESS THAN TODAY 15. If interest rates rise, what will typically happen to bond prices? Rise, fall, stay the same, or no relationship? BOND PRICES WILL FALL

  9. 16. A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less TRUE. 17. Buying a single company’s stock usually provides a safer return than a stock mutual fund FALSE.

  10. “Ask First!” Form • We will use this form to introduce the workshop speakers. It will include some of the following information • Education • Credentials • Licenses • Legal Services • Method of compensation • Contact information

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