FINANCIAL PLANNING IN YOUR FUTURE

FINANCIAL PLANNING IN YOUR FUTURE

A SEMINAR PRESENTED BY

DR. AA NEIDERMEYER

SEMINAR TOPICS

• INITIATE A PFP PERSPECTIVE

• DEVELOP A PLANNING BASE

• ESTABLISH A SEQUENCE OF GOALS

• PROTECTION

• ACCUMULATION FOR ????

• TAX PLANNING• RETIREMENT

PLANNING• ESTATE

PLANNING• ACTION !!!!

INITIATION OF A PFP PERSPECTIVE

• ATTITUDE TOWARD MONEY

• WILLINGNESS TO ASSUME RISK

• AWARENESS OF YOUR PERSONAL SITUATION

• WILLINGNESS TO ACTIVELY MANAGE YOUR ALTERNATIVES

DEVELOPMENT OF A PLANNING BASE

• ESTABLISHMENT OF A PERSONAL BUDGET: ACTUAL / IMPLICIT

• DETERMINATION OF PERSONAL BALANCE SHEET

• DOCUMENTATION OF THE ABOVE IN WRITTEN FORMAT

ESTABLISH GOALS

• GOALS SHOULD BE BOTH TIME-BASED AND QUANTIFIED IN DOLLAR TERMS (IF POSSIBLE)

• GOALS SHOULD BE ACHIEVABLE

• BENCHMARKS SHOULD BE UTILIZED TO MEASURE PROGRESS

REPRESENTATIVE GOALS

• $4,000 FOR A VACATION IN SUMMER

• PAYOFF CHARGE CARD DEBT WITHIN 12 MONTHS

• ESTABLISH A 2 MONTH EMERGENCY FUND WITHIN 18 MONTHS

• RETIRE A MILLIONAIRE AT AGE 55

PROTECTION AGAINST

• PREMATURE DEATH

• DISABILITY

• MEDICAL CARE

• PROPERTY LIABILITY

• UNEMPLOYMENT

PROTECTION AGAINST PREMATURE DEATH

• PERSONAL HEALTH AWARENESS

• INSURANCE

• ENTITLEMENT PROGRAMS

• BUY-SELL AGREEMENTS

• PENSION BENEFITS

PROTECTION AGAINST DISAB ILITY

• EMPLOYER-PROVIDED POLICIES

• SELF-PROVIDED POLICIES

• POLICY CONSIDERATIONS:DEFINITION OF DISABILITY

WAITING PERIODBENEFIT PERIOD

PROTECTION AGAINST MEDICAL EXPENSES

• EMPLOYER-PROVIDED BASIC AND MAJOR MEDICAL POLICIES

• PARTICIPATION IN WELLNESS PROGRAMS

• AWARENESS OF THE STOP-LOSS PROVISION OF EXISTING POLICIES

PROTECTION AGAINST PROPERTY LOSSES /

LIABILITY• RISKS:

-OWNERSHIP-RENTALS-HIRING-CONTRACTS-VOLUNTEER ACTIVITIES

PROTECTION FROM LOSSES

• COORDINATION OF LIABILITY COVERAGE UNDER EXISTING INSURANCE POLICIES

• UMBRELLA LIABILITY POLICY

• RESTRICT INVOLVEMENT

PROTECTION AGAINST UNEMPLOYMENT

• DIVERSIFICATION OF EMPLOYMENT BACKGROUND

• CREATE / EXPLOIT A NICHE

• NETWORK

• CONTINUOUSLY ENGAGE IN SELF-IMPROVEMENT ACTIVITIES

ACCUMULATION

ACCUMULATION FOR

• AN EMERGENCY FUND

• FAMILY PURPOSES

• RETIREMENT

• ????

ACCUMULATION MODES

• REGULAR BANK VEHICLES

• FIXED - DOLLAR INVESTMENTS

• VARIABLE - DOLLAR INVESTMENTS

• COMMODITIES

• COLLECTIBLES

• MATTRESS

FIXED-DOLLAR INVESTMENTS

• CERTIFICATES OF DEPOSIT

• CERTIFICATES OF DEPOSIT

• PREFERRED STOCK

• BONDS

VARIABLE - DOLLAR INVESTMENTS

• MUTUAL FUNDS

• COMMON STOCK

• REAL ESTATE

• ANNUITIES

• COMMODITIES

TAX PLANNING

TAX PLANNING TECHNIQUES

• CONSIDER THE TAX CONSEQUENCES OF EACH INVOLVEMENT

• TRY TO MAINTAIN OPEN - FACT TAX SITUATIONS

• LOOK FOR AVAILABLE EXCLUSIONS / DEDUCTIONS

RETIREMENT PLANNING

THE THREE Y’S

• YOUR OUTLOOK

• YOU LOOK AT OTHERS

• YOU LOOK AT YOURSELF

RETIREMENT PRESSURES

• FINANCIAL

• BOREDOM

• LACK OF COMMUNICATION

• HEALTH

• THREAT OF THE UNKNOWN

RETIREMENT TIMING

• EARLY

• MANDATORY

• VOLUNTARY

• FLEXIBLE

STEPS TO AN ACTIVE RETIREMENT

• RECREATION

• HOBBIES

• TRAVEL

• RELAXING

• SOCIALIZING

• PROPER FINANCING

RETIREMENT FINANCING

• ESTABLISH YOUR NEEDS EARLY

• FUND YOUR ANTICIPATED NEEDS

• PACE YOUR ENJOYMENT OF EACH OF THE ABOVE

ESTATE PLANNING

ESTATE PLANNING PRINCIPLES

• STIPULATE WHO WILL RECEIVE WHAT

• WORK TO REDUCE TRANSFER COSTS

• PROVIDE NECESSARY LIQUIDITY FOR THE ESTATE

• DECIDE WHO WILL ADMINISTER

KEY PLANNING VEHICLES

• DRAFT / EXECUTE A WILL

• EXECUTE A POWER OF ATTORNEY

• EXECUTE A LIVING WILL

• EXECUTE A PRE-PLANNED FUNERAL ARRANGEMENT

ACTION

REQUIRED FOLLOW-UP

• IMPLEMENT YOUR CHOSEN PLANNING TECHNIQUES

• MONITOR PERIODICALLY TO ASSURE MOVEMENT TOWARD CHOSEN ENDS