Money MattersMoney MattersClass 6Class 6
Managing Job LossManaging Job Loss
Plan AheadPlan Ahead
Understand your Company’s BenefitsUnderstand your Company’s Benefits
Understand your current Financial Understand your current Financial SituationSituation
Planning AheadPlanning Ahead
Build an Emergency Fund: 3-6 month Build an Emergency Fund: 3-6 month expensesexpenses
Develop a budgetDevelop a budget Contribute to a 401(k), if availableContribute to a 401(k), if available Do not take loans from your 401(k)Do not take loans from your 401(k) Use credit wiselyUse credit wisely
Company BenefitsCompany Benefits
What benefits do I have?What benefits do I have? What are the time frames for continuing What are the time frames for continuing
coverage?coverage? How do I continue my medical coverage How do I continue my medical coverage
under cobra?under cobra? What job loss services are available?What job loss services are available? How do I get unemployment benefits?How do I get unemployment benefits?
Do I qualify for public assistance such as Do I qualify for public assistance such as food stamps?food stamps?
Am I entitled to sick pay? Vacation Pay? Am I entitled to sick pay? Vacation Pay? Severance Pay?Severance Pay?
How can I rollover my 401(K) plan?How can I rollover my 401(K) plan?
Current Financial StatusCurrent Financial Status
Assess your short-term situationAssess your short-term situation Make a list of all financial resourcesMake a list of all financial resources
• CashCash• SavingsSavings• Severance paySeverance pay• Unemployment benefits Unemployment benefits
Make a list of how much you oweMake a list of how much you owe• Mortgage / rentMortgage / rent• Credit cardsCredit cards• LoansLoans• Other debtOther debt
Set-up a short-term budgetSet-up a short-term budget What is your bottom-line monthly needs to What is your bottom-line monthly needs to
pay your billspay your bills Cut expenses in every way possibleCut expenses in every way possible Make arrangements with creditors to reduce Make arrangements with creditors to reduce
payments temporarilypayments temporarily Project your cash flow. How long can you Project your cash flow. How long can you
afford to be out of work?afford to be out of work?
Use all FSA, before your employment Use all FSA, before your employment endsends
Spend and Invest lump sums wiselySpend and Invest lump sums wisely
What to avoidWhat to avoid
Using Credit cardsUsing Credit cards Increasing debtIncreasing debt
Filing for bankruptcyFiling for bankruptcy
Using your 401(k) savingsUsing your 401(k) savings
Essential DocumentsEssential Documents
Personal IdentificationPersonal Identification LegalLegal DeathDeath WorkWork SchoolSchool Banking / FinancialBanking / Financial
Personal IdentificationPersonal Identification
Driver’s LicenseDriver’s License Green CardGreen Card Birth CertificateBirth Certificate PassportPassport Social Security CardSocial Security Card
Legal DocumentsLegal Documents
Legal ProceedingsLegal Proceedings ContractsContracts WarrantiesWarranties Marriage CertificateMarriage Certificate Divorce DecreeDivorce Decree
Death DocumentsDeath Documents
WillWill Funeral ArrangementsFuneral Arrangements Living WillLiving Will Death CertificateDeath Certificate
Work DocumentsWork Documents
History of work experienceHistory of work experience Information about past employersInformation about past employers
NameName AddressAddress Phone NumberPhone Number Position Held / Duties PerformedPosition Held / Duties Performed
TrainingTraining
School DocumentsSchool Documents
TranscriptsTranscripts Photocopy or original Photocopy or original
ChildrenChildren Immunization RecordImmunization Record Report CardsReport Cards IEPsIEPs Names / Addresses of School AttendedNames / Addresses of School Attended
Banking / Financial DocumentsBanking / Financial Documents
Checking accountsChecking accounts Savings accountsSavings accounts IRA statementsIRA statements 401(k) statements401(k) statements Investment RecordsInvestment Records Account DisclosuresAccount Disclosures Account ID infoAccount ID info Monthly statementsMonthly statements
How Long to Keep RecordsHow Long to Keep Records
TYPE TIME
Taxes 7 years
IRA contributions Permanently
Retirement Plan Statements Permanently
Bank Records Permanently - Statement
Pay Check Stubs 1 Year
Bills 1 year to permanently
Brokerage Statements Until you sell the securities
Credit Card Statements 7 years
Long-Term StorageLong-Term Storage
Fireproof Box at home or safe-deposit Box Fireproof Box at home or safe-deposit Box at your bankat your bank
To prevent Identity TheftTo prevent Identity Theft Shred all documents with account numbers Shred all documents with account numbers
and personal identification numbersand personal identification numbers
Identity TheftIdentity Theft
Identity theft occurs when someone obtains Identity theft occurs when someone obtains your personal information and use it to your personal information and use it to commit fraud.commit fraud.
8 million Americans are victims each year8 million Americans are victims each year
Protect Your IDProtect Your ID
Guard your information onlineGuard your information online Clear your logins and passwordsClear your logins and passwords Change your logins and passwords monthlyChange your logins and passwords monthly Pay for online purchases with a credit cardPay for online purchases with a credit card
Check your bank and credit card statementsCheck your bank and credit card statements Verify your mailing address with the post office Verify your mailing address with the post office
and financial institutionsand financial institutions Beware of phishing scamsBeware of phishing scams Monitor your credit reportMonitor your credit report Shred and destroy sensitive documentsShred and destroy sensitive documents
Online SecurityOnline Security Safe GuardSafe Guard
Account Numbers Account Numbers Personal Identification NumbersPersonal Identification Numbers
Change Your Passwords FrequentlyChange Your Passwords Frequently Be careful using Wi-Fi Be careful using Wi-Fi Avoid going to your account on computers that are not Avoid going to your account on computers that are not
your ownyour own Install firewalls and spyware on your computersInstall firewalls and spyware on your computers Be sure Financial web pages are secure and encryptedBe sure Financial web pages are secure and encrypted Log Out Completely Log Out Completely If you think your security has been breached. Contact If you think your security has been breached. Contact
your financial institutions immediately.your financial institutions immediately.
InvestingInvesting
InvestingInvesting
The act of choosing products and The act of choosing products and strategies to make that money grow!strategies to make that money grow!
The prospective of time:The prospective of time: Short-term (1-2 years), savingsShort-term (1-2 years), savings Mid-to-Long term (3-10 years), investing Mid-to-Long term (3-10 years), investing
Quote of the DayQuote of the Day
"A big part of financial freedom is having "A big part of financial freedom is having your heart and mind free from worry about your heart and mind free from worry about the what-ifs of life.”the what-ifs of life.”
-Suze Orman -Suze Orman