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Steps you can take to ensure your financial security. Oscar Biondolillo Thomas J. Canale, Clu , CFP, ChFc The McTigue Financial Group. Take Control of Your Financial Future. Use the Internet to obtain information Northwesternmutual.com Themint.org Seek advice from a professional
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Steps you can take to ensure your financial security Oscar Biondolillo Thomas J. Canale, Clu, CFP, ChFc The McTigue Financial Group
Take Control of Your Financial Future • Use the Internet toobtain information • Northwesternmutual.com • Themint.org • Seek advice from a professional • accountant, lawyer, financial professional
What does money mean to you? • What impact have finances played on your life so far? • How does it tie into your vision for the future and the goals you have for your self?
What We’ll Cover • Identify your financial planning “personality” • Actions you can take today • Highlight what to get ready for as you step into your career
4 Different Approaches to Your Financial Future • Goal Setters • Procrastinators • Dreamers • Pretenders • Which approach do you take?
Goal-Setters • Place priority onfinancial well-being • Know what theywant for their future • Create detailed plans to achieve dreams • Need to review plans for re-balancing
Procrastinators • Know what makes for financial health • Find it difficult to shake unhealthy financial habits • Need a dose of discipline
Dreamers • Can imagine the future: the cars, the house, the vacations, the lifestyle, etc… • Feel their financial health slipping away • Haven’t taken the necessary steps to accomplish their goals • Often don’t know where to start
Pretenders • False optimists live for today with no thought of the future • Assume there is plenty of time to work out the details to achieve their dreams • Believe in the possibility of finding miracle cures to their financial woes
Behavioral Economics Not just WHAT, but WHY we behavethe way we do can help us gain a new understanding of money management! People are rational • Smart decision makers • Learn quickly • Choose right financial products, career, level of savings People are people • Prone to error, irrationality and emotion • Act in ways inconsistent with financial well-being
Basic Fundamentals • Objective is to have freedom to choose • It’s never too soon or late to start • Taking simple steps will help ensure financial health • There’s no “magic pill.” Individuals need to determine tactics that will meet their own lifestyle and address chronic behaviors • Concept analogous to dieting
What You Can Do Today • Create a budget and determine your net worth… • What do you think you spendvs actually spend? • What have you saved, relative to what you have earned?
Creating a Budget • Complete the budget worksheet being handed out • Can you account for the money you are spending each month? • How does your savings/income compare to your monthly costs? • Build Good Habits • Start saving money NOW • Establish/preserve good credit • Live within your means
Determine your net worth • What have you earned to date? • How have you saved AND invested in the past? • Begin Putting Money in Buckets • Short-term • Mid-term • Long-term
Fill Your Buckets • Activity: Think about the next 1, 5 and 10 years of your life • What personal, professional and financial goals do you have for yourself at those different milestones? • What action do you need to take today in order to achieve those goals? • How much money will need to go into each savings bucket for you to achieve those goals?
Your Most Important Asset • What do you think will be your most valuable asset throughout your life? • Vehicles: What would your dream car cost? • Home: How expensive do you think your home will be? • Financial Portfolio: What would you like your net worth to be? How will you be able to afford all of these things?
Starting With Your First Paycheck • Enroll in your retirement plan • Talk with a financial expert about additional insurance coverage • Pay yourself first. Make saving part of your regular budget -- just like payingthe electric bill – and leverage the savings “buckets” you created.
What to Plan for as you enter your full-time career • Leverage Company Benefits • Understand “Good Debt” vs. “Bad Debt” • Plan for the stuff no one tells you to plan for • Professional Attire • Cost of Your Job • Weddings: Yours & Other People’s • Understand and protect your most important asset
Women should pay particular attention to these points… • Women are likely to live longer than men, hence require additional retirement savings • Women often prefer to work with another female professional