CFP Board 2006 Annual Meeting Los Angeles

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CFP Board2006 Annual MeetingLos Angeles

• Holding the Keys to the American Dream
• Why U.S. Workers Need You

Sally Hass sally.hass_at_weyerhaeuser.com August
2006
CFP live presentation-hass
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Why I was invited to speak

• Longest running large scale Life Planning Program
  in corporate America
• Viewed as a model program by numerous benchmark
  studies

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But what I am going to present today?

• Why Weyerhaeuser Life Planning programs are
  fabulous
• Share lessons learned from 20 years of financial
  education inside a Fortune 500 Company
• Financial education is a winning proposition for
  the employer, the employee and for the financial
  service professional
• Why working in the financial services profession
  could be the critical component to your own
  health, wealth and happiness

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About Sally
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Things I care about

• Being relevant
• Learning
• Making a difference in the lives of individual
  employees
• Nurturing Workplace Life Financial Planning
  Education
• Staying upright

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About Weyerhaeuser
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What we provide
Evening sessions
Mini meetings
1 day programs
Brown Bags
Hybrids
2 ½ day Healthy, Wealthy Wise seminar
Webinars
Plus 50 Seminars
New Hire Webinars
½ day sessions
Vanguard sessions
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Objectives of Workplace Education at Weyerhaeuser

• Help our employees be successful in their careers
  and in their lives
• We dont believe our employees should spend their
  careers with us and retire anywhere near the
  poverty levelwe help them build significant
  assets for retirement
• 401(k)
• Pension
• Profit Sharing
• Protect them from catastrophic health care costs
• Active health care
• Pre Post 54 Retiree health care
• Long Term Care group plan

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Through our Education Communication efforts.

• ..we want our employees to partner with us to
• Be good consumers of benefits
• Be informed and make good choices
• Take full advantage of what the company is
  providing
• Keep themselves healthy
• Appreciate their benefits which helps with
  retention
• Trying to motivate them to take meaningful action
  to plan for their future

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Mini experience..

• Turn to the person sitting
• Next
• In back of
• In front of
• Or find anyone
• And share.

3 things you are looking forward to in
retirement and 1 thing you are concerned about
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Visualize!
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What is Life Planning?

• A way to insure that all the pieces of the puzzle

Health
Financial
Educa-tion
Spiritual
Leisure
Legal
Growth
Relation-ships
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• come together into a meaningful, rich life!

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Secret

• We start everything with the
• employees lives and wrap the
• content around them

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Lessons learned

• People dont know what they dont know
• To motivate people to act you must put the
  content in the context of their life goals-
• Get them excited about their life and the
  possibilities
• Imbed life planning with financial planning
• When talking about money anxiety is present
• What you deliver must be upbeat, interactive and
  motivational

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Lessons learned, continued

• Employee privacy needs to be factored in
• Do include spouses/partners
• Change the note
• Change the instrument

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Lessons learned, continued

• If the presenter is coming from a place where
  they care about the learning and the relationship
  there is a high probability that participants
  will take action
• Lastly
• This approach changes lives at all levels

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At virtually all levels of income working
Americans have a gap in their synapses that is a
form of financial insanity

• Dual income 175,000 per year
• Have put away nothing to fund H.S. children's
  college
• Maxed out credit cards, pay 30,000 yearly in
  interest charges
• High fees to payday loans
• Driving two late model leased cars
• No equity in 500,000 home despite having lived
  there for 10 years
• Earns 35,000 per year
• In 2 years has increased credit card debt to
  90,000 interest payments are 900 a month
• Earns 40,000 per year
• Cant participate in 401(k) because of
• Student loans
• New car
• Golf course membership

Getting control of is the doorwaytowell
being to happiness
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• Your knowledge, your skills
• are key to stopping the
• financial insanity of American workers
• 70 of working Americans are living pay check to
  pay check
• Highest number of home foreclosures in history
• 2005 negative savings rates
• Highest number of bankruptcy filings

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The historical employer perspective about
education

• Confined to providing specific information about
  employer sponsored benefit programs
• 401(k) participation
• 401(k) investment choices and risks
• Regulation 86-1 requires us to communicate
  benefits but prohibits financial advice

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Lets talk about whats changing that is going to
cause employers to want to do significantly more
workplace education
The Case forWorkplaceLife and Retirement
EducationSallys 10 Factors
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People costs are increasing in the total cost of
doing business

• When an asset or raw material goes up management
  pays attention and cares more

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Value Disconnect
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Competition for Talent
Future
Past
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Same worker educational levels are going
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More Decisions More Complexity More Tradeoffs
with the Paycheck

• FSAs
• HSAs
• 401(k)s
• Pension
• Roth IRA
• 529

• Life Style Accounts
• HMOs
• LTC
• Order of Distributions
• Taxes
• Insurance
• __________
• __________
• __________

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Paycheck stress equates to Employee stress and
direct Employer costs

• 750 2,000 annually on employees poor money
  management behaviors
• 450 300

Positive outcomes if good money habits
Dr. E. Garman/Personal Finance Employee
Education Foundation Inc.
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• Times are changin
• Social Security
• PBGC
• World Economics
• Medicare Solvency
• Outsourcing

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VS.
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Employers can for relatively few dollars spent on
education affect employees

• Loyalty
• Attitude
• Retention
• Productivity
• Life quality

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Quick review of 10 Factors..

• Employee costs as part of conducting business are
  increasing
• You may actually be spending more on employees in
  compensation and wages but the perceived value
  may be going down
• Increasing you will need to compete for talent
  and to market to existing employees
• Due to dimensions of diversity the challenge of
  education and communication requires more
  attention
• There is more to talk about and employees need
  help managing their money

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Quick review of 10 Factors, continued..

• Poor money habits is a direct cost to the bottom
  line
• Employees are anxious
• You are spending money now why not make the
  expenditure effective
• If you dont educate employees about basic money
  management and the financial services industry
  some of them will lose their nest egg due to poor
  decisions
• Employees are already devoting time to this
  building an efficient delivery system

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Why working in the financial services profession
could be the critical component to your own
meaning and fulfillment in your third
age/retirement
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Positive Psychology In a Nut Shell

• Seligman/Csikszentmihalyi/Cooperrider/
  Clifton/Bukingham
• Three roads to happiness
• Pleasure
• Engagement (depth of involvement)
• Meaning (using personal strengths for a higher
  purpose)

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About your brain?

• The Owners Manual for the Brian Dr. Pierce J
  Howard, PH.D.
• Medication
• Chronic disease
• Extended grief
• Alcohol
• Unfavorable environment
• Sedentary lifestyle
• High blood pressure
• Lack of stimulation
• Malnutrition
• Depression
• Lack of a stimulation partner
• Inflexible Personality
• No desire to learn

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Why should workplace be the beachhead to improve
financial literacy?

• Its where the workers are
• They do have money
• Workers are in the best position to take
  advantage and put to immediate use basic
  financial education
• In essence workers know how to make money but not
  how to manage it

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You have the
ability through your work to

• help Americans get control of
• which is a doorway to
• well-being and to happiness

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Staying engaged in this profession can contribute
to your own.

• Health
• Wealth
• Happiness

My hope is that you will expand your efforts
inside the workplace
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What You Know Is Needed

• My wish for you is that your reach is far

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In spite of illness in spite even of the
archenemy sorrow, one can remain alive long past
the usual date of disintegration if one is
unafraid of change, insatiable in intellectual
curiosity, interested in big things, and happy in
small ways.
Edith Wharton
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Thank you