CPA Mobilization Kit: Parenthood

1. CPA Mobilization Kit: Parenthood

2. Achieving Your Financial Goals

3. Achieving Your Financial Goals • • Set Clear Goals • • Resolve to Spend Less • • Create an Emergency Fund • • Make Saving a Priority

4. Achieving Your Financial Goals • • Reduce Credit Card Debt • • Evaluate Your Insurance Coverage • • Think Taxes

5. Budgeting • • Gross monthly income • • Net income • • Fixed expenses • • Flexible expenses

6. Budgeting • • Discretionary expenses • • Total it up • • Increase your savings • • Programs like Quicken can help

7. Making College a Reality • • Implement a savings blitz • Tighten the belt • Tuition management services • Sec. 529 Plans • Coverdell Education Savings Accounts

8. Making College a Reality • • Financial aid • Scholarships or grants • Student or parent loans • Work-study

9. Making College a Reality • • Seek out scholarships • • Tap your home equity • • Comparison shop • • NO RETIREMENT LOANS

10. Protecting Your Family Through Insurance • • Life insurance • Choosing coverage • How much can you afford? • How much is needed? • For how long? • Protection or investment?

11. Term vs. Permanent • • Term • Largest death benefit for the dollar • Annual renewable and level premium • Return-of-premium

12. Term vs. Permanent • Permanent • Combines a death benefit with an investment • Part of the premium is invested, building cash value • Higher premiums • Whole life, universal or variable life

13. Term vs. Permanent • • Whole life • • Universal life • • Variable life

14. Health Insurance • • Don’t go bare • •HMOs • • PPOs • • POS

15. Health Insurance • • Flexible Spending Accounts • COBRA • Medicare • Medicaid

16. Long-Term Disability Insurance • • Benefit Amount • Term of Benefits • Elimination Period • Noncancelable • Guaranteed Renewables • Own Occupation or Any Occupation

17. Government-sponsored Disability Benefits • • Workers’ Compensation • Social Security Disability • Veterans Benefits • Federal Employees Retirement System

18. Teaching Your Child Money Management • Elementary School • Piggy bank • Allowance • Teach value • Save for a special item

19. Teaching Your Child Money Management • Middle School • Increase responsibilities and decisions • Open a bank account • Encourage comparison shopping • Help understand needs vs. wants • Encourage donating time, money

20. Teaching Your Child Money Management • High School • Be consistent • Create a budget • Part-time job • Apply for college scholarships and financial aid

21. Savings and Investing • • Start small • • Contribute to your retirement plan • • Save through payroll deduction plans • • Set up an automatic investment plan • • Round up your mortgage

22. Savings and Investing • • Bank your raises • • Keep paying off a loan • • Pay off your credit cards • • Reinvest dividends • • Keep track of where the money goes

23. Investing in Your Future • • Asset Allocation • Stocks • Bonds • Cash Equivalents

24. Investing in Your Future • • Asset allocation is ongoing • • Diversification • • Life circumstances • • Investment goals, timeframe and tolerance

25. Investment Options • Short-Term Investments • CD • Money Market Funds • Savings Account

26. Investing in Your Future • • Long-Term Investments • Mutual Funds • Stock • Bonds

27. Investing in Your Future • • Retirement Specific Investments • 401(k) • IRA • Social Security

28. Estate Planning • •  Durable Power of Attorney • Advanced Medical Directive • A Will • A Trust

29. Estate Planning • • Estate • Estate Tax • Executor • Trustee • Principal • Beneficiary • Probate

30. Thank You!