Starting Your Career Off Right

1
Starting Your Career Off Right
2
The Job Offer

• Take your time
• Salary
• Check out surveys
• Talk to recruiters
• Scan job postings
• Ask friends and associates
• What can you expect?
• Vacation and other perks

3
The Job OfferBenefits

• Insurance
• Medical
• Prescription drug coverage
• Vision
• Dental
• Disability
• Life
• Your contributions

4
The Job Offer

• Company background
• Favorable industry
• Your interest
• Job duties
• Advancement opportunities
• Corporate culture
• Supervisor

5
Achieving Your Financial Goals
6
Achieving Your Financial Goals

• Set clear goals
• Resolve to spend less
• Create an emergency fund
• Make saving a priority

7
Achieving Your Financial Goals

• Reduce credit card debt
• Evaluate your insurance coverage
• Think taxes

8
Budgeting

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

9
Budgeting

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

10
Student Loans

• The sooner, the better
• Grace period
• Repayment options
• 10 years
• Budget
• Dont default

11
Credit Cards

• Be aware of teaser rates
• Stick with one credit card
• Pay in full every month

12
Credit Cards

• Pay on time
• Avoid cash advances
• Protect your credit history

13
Credit Cards

• Dont exceed your credit limit
• Review statements carefully
• Report lost or stolen cards immediately
• Protect personal information

14
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

15
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

16
Investing for Wealth

• The power of compound interest
•  Rule of 72
• 72/236
• 72/612
• 72/89

17
Investing for Wealth

•  Planning for wealth
•  Make the most of a 401(K)

18
Investing in Your Future

•  Asset Allocation
• Stocks
• Bonds
• Cash Equivalents

19
Investing in Your Future

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

20
Investing in Your Future

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

21
Investing in Your Future

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

22
Investment Options

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

23
Protecting Your Family Through Insurance

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

24
Term vs. Permanent

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

25
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

26
Term vs. Permanent

•  Whole life
•  Universal life
•  Variable life

27
Health Insurance

•  Dont go bare
• HMOs
• PPOs
• POS

28
Health Insurance

•  Flexible Spending Accounts
• COBRA
• Medicare
• Medicaid

29
Long-Term Disability Insurance

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

30
Government-sponsored Disability Benefits

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

31
Get Tax Smart

• Get credit for care
• Make retirement plan contributions
• Improve your recordkeeping
• Plan your investment gains

32
Get Tax Smart

• Give away some assets
• Use your vacation home wisely
• Get advice early

33
Disaster Preparedness
34
Protect Your Property

• Install smoke detectors
• Elevate utilities to upper floor
• Clear surrounding brush
• Secure objects that could fall

Adapted from American Red Cross, Financial
Preparations
35
Do a Thorough Home Inventory

• Record location of all original documents
• Make visual record of your possessions
• Record model and serial numbers

Adapted from American Red Cross, Financial
Preparations
36
Do a Thorough Home Inventory

• Photograph home exterior
• Make copies of receipts
• Get professional appraisals

Adapted from American Red Cross, Financial
Preparations
37
Insurance for Your Home

• Replacement coverage
• Reappraisals
• Replacement cost of possessions
• State-operated Federally operated pools

Adapted from American Red Cross, Financial
Preparations
38
Insurance if You Rent

• Location
• Renters insurance
• Comparison shop

Adapted from American Red Cross, Financial
Preparations
39
Cash Personal Belongings

• Stash some cash
• Emergency fund
• Credit card
• Evacuation box
• Safe deposit box

Adapted from American Red Cross, Financial
Preparations
40
Do What You Can!
41
More on Natural Disasters

• Red Cross
• FEMAwww.fema.gov
• NEFEwww.nefe.org

42
Thank You!