CPA Mobilization Kit: Parenthood

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CPA Mobilization Kit Parenthood
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Achieving Your Financial Goals
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Achieving Your Financial Goals

• Set Clear Goals
• Resolve to Spend Less
• Create an Emergency Fund
• Make Saving a Priority

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Achieving Your Financial Goals

• Reduce Credit Card Debt
• Evaluate Your Insurance Coverage
• Think Taxes

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Budgeting

•  Gross monthly income
• Net income
• Fixed expenses
• Flexible expenses

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Budgeting

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

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Making College a Reality

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

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Making College a Reality

• Financial aid
• Scholarships or grants
• Student or parent loans
• Work-study

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Making College a Reality

• Seek out scholarships
•  Tap your home equity
• Comparison shop
• NO RETIREMENT LOANS

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Protecting Your Family Through Insurance

• Life insurance
• Choosing coverage
• How much can you afford?
• How much is needed?
• For how long?
• Protection or investment?

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Term vs. Permanent

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

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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

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Term vs. Permanent

•  Whole life
•  Universal life
•  Variable life

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Health Insurance

•  Dont go bare
• HMOs
• PPOs
• POS

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Health Insurance

•  Flexible Spending Accounts
• COBRA
• Medicare
• Medicaid

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Long-Term Disability Insurance

• Benefit Amount
• Term of Benefits
• Elimination Period
• Noncancelable
• Guaranteed Renewables
• Own Occupation or Any Occupation

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Government-sponsored Disability Benefits

• Workers Compensation
• Social Security Disability
• Veterans Benefits
• Federal Employees Retirement System

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Teaching Your Child Money Management

• Elementary School
• Piggy bank
• Allowance
• Teach value
• Save for a special item

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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

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Teaching Your Child Money Management

• High School
• Be consistent
• Create a budget
• Part-time job
• Apply for college scholarships and financial aid

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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

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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

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Investing in Your Future

•  Asset Allocation
• Stocks
• Bonds
• Cash Equivalents

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Investing in Your Future

•  Asset allocation is ongoing
• Diversification
•  Life circumstances
•  Investment goals, timeframe and tolerance

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Investment Options

• Short-Term Investments
• CD
• Money Market Funds
• Savings Account

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Investing in Your Future

•  Long-Term Investments
• Mutual Funds
• Stock
• Bonds

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Investing in Your Future

•  Retirement Specific Investments
• 401(k)
• IRA
• Social Security

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Estate Planning

•   Durable Power of Attorney
• Advanced Medical Directive
• A Will
• A Trust

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Estate Planning

•  Estate
• Estate Tax
• Executor
• Trustee
• Principal
• Beneficiary
• Probate

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Thank You!