May 22-25, 2016 Los Angeles Convention Center Los Angeles, California

How to Manage Your Money:

Personal Finance 101

Presented by

Brittney Castro, CRPC, AAMSm CFP

FM31

5/25/2016

1:15 PM - 2:45 PM

The handouts and presentations attached are copyright and trademark

protected and provided for individual use only.

How To Manage

Your Money: Personal

Finance 101Presentation by:

Brittney Castro, CFP®, CRPC®, AAMS®

Founder & CEO

Financially Wise Women

About Brittney:

Brittney Castro, CFP®, CRPC®, AAMS® and founder and CEO of

Financially Wise Women, launched her own registered investment

advisory firm in 2013 at the age of 28. In just three short years, she’s

leveraged social media to build a six-figure financial planning firm; launch

an online six-week evergreen product called The Money Class; become

a well-known financial expert for women of all ages; and land national

media recognition from CNN, CNBC, The Wall Street Journal, The New

York Times, CBS, KTLA, Fox 11 News, Glamour, Elle, Marie Claire,

Financial Planning Magazine, Investment News, and Registered Rep

Magazine and many more.

She specializes in working with busy professional and entrepreneurial

women who are passionate about life and want to gain clarity around

their money. Brittney’s mission is to help women plan and create the life

of their dreams, free from anxiety about money. She is known for her

innovative, non-judgmental, compassionate approach to financial

planning. Away from the office, you can find Brittney working out,

drinking green juice, reading, playing at the park with her dog Arya and of

course dancing.

Follow her on twitter at www.twitter.com/brittneycastro.

In this presentation you will learn how to:

• Identify how to budget your money easily and

effectively every month.

• Name the tips to save more of the money you make

without feeling restricted or deprived.

• Discuss how to build cash, pay off your debts and

improve your credit score.

• Describe the basics of investing and retirement

accounts.

• Determine the different types of protection you need

as you build and grow your net worth.

The new way to budget your

money and track your expenses

with ease.

What is a budget?

• A way to track your income and expenses over a period

of time.

Set up your budget following the

“Pay Yourself First” system:

Here is a rough guideline as to how your net income should

be allocated for your different expenses:

50% Fixed Expenses

20% Savings- “Pay Yourself First”

30% Fun/Variable Expenses

Fixed:• Mortgage, rent, utilities, health insurance, groceries

(basic), childcare, tithing, etc.

“Pay Yourself First”/Savings:• Cash cushion, extra debt payments, retirement, home

down payment, etc.

Fun:• Dining out, entertainment, shopping, travel, clothes,

etc.

Example:

Net Income is $6,000 per month:

50% =$3,000 Fixed Expenses

20 % =$1,200 Pay Yourself First=Savings

30% =$1,800 Fun/Variable Expenses

Do you: What If you:

Savings over

15 yr period

Drink 1 latte every morning?Drank 1 latte every other day

(3x/week)?$14,812

Spend $2,500 per year on

clothes, shoes, etc?

Saved $20 per week from

shopping?$32,915

Go out for lunch every day during

the week?

Brown- bagged your lunch

3x/week?$49,372

How does it all add up?Took the money you would

have spent and invested it?$97,099

Little changes really do add up:

Assumptions: Lattes save $9 per week, Shopping saves $20 per week, Brown Bag saves $30 per week. Take savings and invest

monthly for 15 years (monthly Compound interest). All of the above savings use the average annual return of the S&P index for the

past 76 years of 9.92%

This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of

returns used do not reflect the deduction of fees and charges inherit to investing. The S &P 500 is an unmanaged index and cannot

be investing into directly. Past performance is no guarantee of future results.

Schedule weekly “Money Dates”

1. Choose day/time for your money dates.2. Update your budget, track, manage, forecast, review.3. Make them fun and consistent.4. Budgeting tools- bank apps, mint.com, level money app, quicken, etc.5. HAVE FUN!

Build cash, pay off debts and

improve your credit score.

Build a cash cushion:

• Typically you want 3-6 months of committed

expenses in cash accounts.

Why?

• Emergencies

• Opportunities

• Investing- need staying

power

• Insurance deductibles

• Business owner

Set up your bank accounts to work for you:

Checking Account

Savings Account

High yield savings, CD, Money Market,

etc.

Structure your bank accounts:Checking Account:

• Deposit income, pay bills, track expenses.

Savings Account:

• Keep for bigger expenses, emergencies, to

protect against overdraft fees.

CD/Money Market Account/High Yield

savings:

• Use for majority of Cash Cushion, can still

access but more “out of sight, out of mind.”

Pay off debts effectively:1. Acknowledge the debt you have.

2. Accept the debt you have and forgive yourself.

3. Create a game plan.

4. Make additional payments.

5. Celebrate mini milestones.

Acknowledge the debt you have:

• We live in a debt nation.

• You are not a bad person because you have debt.

• Get clear about the facts.

• List out all your debts- type, balance, interest rate,

minimum payment.

Accept the debt you have and forgive yourself:

• Forgive yourself from the past.

• Be present with what is.

• Write a letter to your debt.

• Set an intention for paying off your debts.

Choose a debt reduction game plan:The Snowball Method:

• Start by paying the minimum on all debts and

allocate additional debt payments toward the

debt with the lowest balance while

simultaneously paying the minimums on the rest

of your debts.

The Avalanche Method:

• Start by paying the minimum on all debts and

allocate any additional debt payments toward the

debt with the highest interest rate while

simultaneously paying the minimums on the rest

of your debts.

Make additional debt payments:

• How much of your 20% can be allocated toward

extra debt payments?

• Work with your financial planner to help you figure

this out.

• Make your extra debt payments automatic.

Celebrate mini successes:

• Set up mini goals to stay motivated.

• Remember your intention for being debt free.

Debit card vs. secured card vs. credit card:Debit card:

• Connected to your checking account.

• Overdraft fees may apply.

• ATM to withdrawal and deposit money.

Credit Card:• Borrow money from credit card company up to a limit.

• Charged an interest rate for any unpaid balance.

• Affects your credit score.

Secured Card:• Acts like a credit card except you attach money to the

account to act as collateral if you don’t pay off your bill

every month.

• Affects your credit score.

The best way to use credit cards:

• Charge expenses that you KNOW you can PAY OFF every month.

• This will help your credit score.• Bankrate.com• Dinkytown.net

Understand your credit report:• Your credit report is like a file on you and your

credit history.

• It basically tells lenders how risky of a

borrower you are.

• So when it comes time to purchasing your

new home or new car, you want your credit

report and credit score to be in top financial

shape!

Understand your credit score:

• Credit score, also known as your FICO score, is

calculated using the information from your credit

report.

• Can range from 300-850.

• Over 760 considered excellent.

• Request your credit report today by logging onto

one of the three different credit reporting bureaus:

Equifax, Experian, or TransUnion.

• You can also visit creditkarma.com to view your

credit score for free on a regular basis.

The 5 factors that contribute to your credit score:

• Payment History- 35% of your score.

• Total Amount Owed- 30% of your score.

• Length of Credit History- 15% of your score.

• New Credit- 10% of your score.

• Types of Credit Used- 10% of your score.

The goal is for your score to be above 760.

This means you have excellent credit.

Why do you need to invest your

money?

Investing basics:

The effect of inflation

$0

$50,000

$100,000

$150,000

$200,000

$250,000

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39

Purchasing power of $200,000 at 3% annual inflationTo

da

y's

Do

lla

rs

Year

Investing basics:

The effect of compounding

$0.00

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

$700,000.00

$800,000.00

20

23

26

29

32

35

38

41

44

47

50

53

56

59

62

65

Beginning at age 20 Beginning at age 35 Beginning at age 45

$3,000 annual investment at 6% annual growth, assuming

reinvestment of all earnings and no tax.

This is a hypothetical example and is not intended to reflect the actual performance of any

investment.

$120,000$254,400

$679,500

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29

Year

Investing basics:

The effect of

compounding • $5,000 invested annually

• 6% annual growth rate

• All earnings reinvested

This is a hypothetical

example and is not

intended to reflect the

actual performance of

any specific investment.

Investment fees and

expenses, and taxes are

not reflected. If they

were, the results would

have been lower.

“Rule of 72”

72 ÷ Rate of Return = Years Needed to Double in

Value

Growth of annual $5,000

investments

Rule of 72

4%

18 yrs 9 yrs

8%72 72

Year Amount

1 10,000

19 20,000

37 40,000

55 80,000

Year Amount

1 10,000

10 20,000

19 40,000

28 80,000

37 160,000

46 320,000

55 640,000

*The rule of 72 is a mathematical concept and does not guarantee investment results nor

functions as a predictor of how an investment will perform. It is an approximation of the impact of

a targeted rate of return. Investments are subject to fluctuating returns and there is no assurance

that any investment will double in value.

In summary, investing allows us to grow

our money faster than inflation

overtime.– Don’t put off investing

– The sooner you start, the longer your investments

have to grow

– Playing “catch-up” later can be difficult and expensive

Basic Investing Tips

Asset Allocation

Portfolio Performance *

• 91.5% Asset Allocation

• 4.6% Security Selection

• 1.8% Market Timing

• 2.1% Other Factors

*Source: “Determinants of Performance”, Brinson &

Beebower

Financial Advisor Picks:

Diversification

$100,000 Invested at 8% for 25 Years

$684,848

The Power of Diversification

At 15%At

10%

At 7%At 5%

The Power of Diversification

Investing Do’s and Don’ts

Do:

1. Your research

2. Read about investment options

3. Invest for the long-term

4. Understand the risks of investing

5. What to expect when investing

6. Hire help when needed

Don’t:

1. Invest blindly

2. Invest for short term goals

3. Allow your emotions to get involved

4. Listen to all chicken little

5. Compare your investment plan to

others

6. Be afraid to ask more questions

Types of Retirement

Accounts

Traditional IRA Roth IRA

NO Taxes Ø

Tax deduction

(pre-tax

contribution)

TAXES $

No Tax

Deduction

(after-tax

contribution)NO Taxes

Ø

Tax

deferred

growth

NO Taxes Ø

Tax deferred

growth

TAXES $

Fully taxable

(ordinary

income taxes)

59 ½ yrs old

NO TAXES Ø

Income tax

free

59 ½ yrs old

*Note future tax laws can change at any time and may impact the benefits of Roth IRAs. Their

tax treatment may change.

IRA vs. Roth IRA

Steps to opening up an investment

account:

1. Choose a brokerage firm.

2. Open up the account.

3. Fund the account.

4. Buy investments within the account.

5. Review every 6 months.

How to get the right insurance

policies in place to protect your

family.

Get the right insurance in place.

• Health insurance.

• Disability insurance.

• Life insurance.

• Liability insurance.

• Property insurance.

• Worker’s compensation insurance.

• Key employee insurance.

• Long-term care insurance.

Disability insurance:

• What happens if you are too sick or injured to work?

• Review your options at work and enroll in disability

insurance coverage.

Life insurance:

• Simply put, you get life insurance if you love someone or

owe someone.

• Types- Group term, individual term, whole life, universal

life, etc.

Long-term care insurance:

• LTC Insurance is like health insurance, it's for a really big

events, the kind that could cause you to use up all your

savings and assets.

• "The #1 fear retirees have is the fear of running out of

money.“ - Forbes Magazine

Here’s what you learned in this presentation:

• Identify how to budget your money easily and effectively

every month.

• Name the tips to save more of the money you make without

feeling restricted or deprived.

• Discuss how to build cash, pay off your debts and improve

your credit score.

• Describe the basics of investing and retirement accounts.

• Determine the different types of protection you need as you

build and grow your net worth.

Additional resources:

• Financially Wise Toolkit which includes:

• Dream Worksheet

• “9 Steps to Becoming…” eBook

• Life Stage Financial Checklists

• Weekly videos with finance tips

www.financiallywisewomen.com

Call To Action:

• Take action on one thing you learned today in the

next 48 hours.

Thank you!

Brittney Castro, CFP®, CRPC®, AAMS®

CERTIFIED FINANCIAL PLANNERTM practitioner

Founder & CEO

Financially Wise Women

8391 Beverly Blvd. #375

Los Angeles, CA 90048

P: 323.852.3182

F: 323.852.3183

http://www.financiallywisewomen.com/

www.twitter.com/brittneycastro

www.facebook.com/financiallywisewomen

www.facebook.com/brittneycastro

www.youtube.com/brittneycastro

Brittney@financiallywisewomen.com

Financially Wise Women is a registered investment adviser offering advisory

services in the State of California and in other jurisdictions where exempted.

The opinions voiced in this material are for general information only and are not intended to

provide specific advice or recommendations for any individual. To determine which investment(s)

may be appropriate for you, consult your financial advisor prior to investing.

There is no assurance that the techniques and strategies discussed are suitable for all investors

or will yield positive outcomes. The purchase of certain securities may be required to affect some

of the strategies. Investing involves risks including possible loss of principal. This information is

not intended to be a substitute for specific individual tax or legal advice. We suggest that you

discuss your specific situation with a qualified tax or legal advisor.

This is a hypothetical example and is not representative of any specific situation. Your results will

vary. The hypothetical rates of returns used do not reflect the deduction of fees and charges

inherit to investing. The S &P 500 is an unmanaged index and cannot be investing into directly.

Past performance is no guarantee of future results.

All performance referenced is historical and is no guarantee of future results. All indices are

unmanaged and may not be investing into directly.

Your opinion matters!

Please take a moment now to

complete the evaluation.

Thank You!