Presented by Standard Retirement Services, Inc.

Presented By… [Presenter’s name] [Presenter’s title]

Saving Challenges It’s tough to save for retirement: Mortgages Car loans Child care College tuition Take a good look at your savings and spending habits, and you can probably find money that can be redirected toward your financial future. ©2013 Standard Retirement Services, Inc. Everyday Strategies For Financial Strength

Taking Steps Toward Financial Strength In this workshop, you will learn how to: Measure and evaluate your debt Track your income and expenses Find ways to save for tomorrow – without sacrificing your quality of life today ©2013 Standard Retirement Services, Inc. Everyday Strategies For Financial Strength

Debt-To-Income Ratio Step one Measure your debt What you need: checkbook, register, monthly bills, most recent pay stub Debt-to-income ratio (common debt measurement) Helps lenders decide whether to extend credit Helps you determine whether debt is in healthy range How it works Monthly debt payments (mortgage, credit cards, etc.) Divide by monthly income (before taxes) Resulting number (percentage) is debt-to-income ratio ©2013 Standard Retirement Services, Inc. Everyday Strategies For Financial Strength

Debt-To-Income Ratio Example Your debt-to-income ratio An Example 1 Debt-To-Income Ratio Example Monthly Debt Payments Annual Income Rent $750 Your Salary $35,000 Car Loan $300 Spouse’s salary $25,000 Visa $150 Alimony $0 Store Credit $75 Interest/Dividends $0 Total $1,275 Other income $0 Total $60,000 $60,000 ÷ 12 (months) = $5,000 gross monthly income Your debt-to-income ratio $1,275 ÷ $5,000 = .255 or 25.5 percent This example is hypothetical and for illustrative purposes only. Source: The Ayco Company, L.P. ©2013 Standard Retirement Services, Inc. Everyday Strategies For Financial Strength

Evaluate Your Debt-To-Income Ratio Step one Measure your debt 15% or less Excellent if you have a mortgage; fair if you don’t 16 – 20% Top of the “healthy range,” if you have a mortgage 21 – 35% Most Americans are in this range; make debt reduction your goal 36 – 50% Excessive; may be declined for loans 51% or more Seek credit assistance immediately ©2013 Standard Retirement Services, Inc. Everyday Strategies For Financial Strength

Budgeting Step two Go with the flow Cash-flow planning = budgeting Track income Track spending Find a way to come out ahead Even small changes in your daily spending can – rather painlessly – help you find money to save for your future. ©2013 Standard Retirement Services, Inc. Everyday Strategies For Financial Strength

Small Sacrifices, Big Gains Long-Term Growth Of Savings 1 Small Sacrifices, Big Gains Monthly Value if invested for: Savings 10 years 20 years 30 years 40 years $20 $3,683 $11,859 $30,006 $70,286 $50 $9,208 $29,647 $75,015 $175,714 $75 $13,812 $44,471 $112,522 $263,571 $100 $18,417 $59,295 $150,030 $351,428 This chart is hypothetical and for illustrative purposes only and is not intended to be a projection of future values of any product. This illustration assumes an average annual rate of return equivalent to 8 percent, compounded monthly. The investment return and principal value of an investment will fluctuate and an investor’s interest, when redeemed, may be worth more or less than the original investment. Past performance is no guarantee of future results. ©2013 Standard Retirement Services, Inc. Everyday Strategies For Financial Strength

How Much Do You Need To Save? Step two Go with the flow 39% Percentage of workers who think they need to accumulate at least $500,000 to live comfortably in retirement. Percentage of workers who think they need to accumulate less than $250,000 to live comfortably in retirement. 31% Workers who have performed a retirement needs calculation were twice as likely as those who have not (25 percent vs. 10 percent) to expect they will need to accumulate at least $1 million before retiring. Source: EBRI Retirement Confidence Survey, 2011 ©2013 Standard Retirement Services, Inc. Everyday Strategies For Financial Strength

Finding Money Painlessly Step two Go with the flow Small items to occasionally give up: Lunch out Dinner out Movie ticket DVD rental Vending machine soda Other ways to free up money: Walk, bicycle or use public transportation Refinance credit cards, installment loans and mortgage rates Discontinue unused subscriptions, memberships ©2013 Standard Retirement Services, Inc. Everyday Strategies For Financial Strength

= Invest In Debt Reduction Step two Go with the flow Paying down expensive credit card debt 12 percent credit card interest investment return = ©2013 Standard Retirement Services, Inc. Everyday Strategies For Financial Strength

Plan It Forward – Make It Fun Step two Go with the flow Save without sacrifice by planning forward A few ideas to get you going: Visit local movie theater on discount days or early in the day when tickets cost less Place hold on latest bestseller at local library Take advantage of two-for-one dinner specials ©2013 Standard Retirement Services, Inc. Everyday Strategies For Financial Strength

Green = Easy savings ($20.50 in four days!) A Few Days In A Spending Diary Step two Go with the flow Sunday $10.00 Long-distance phone calls to catch up with friends (use email or free video calling services like Skype or FaceTime more often) $4.00 New release DVD rental (even though we have premium cable channels) Tuesday $75.00 Groceries (forgot coupons and didn’t make a list beforehand) $15.95 Bought new CD (check out used next time) Monday $2.50 Breakfast from the vending machines at work again! $7.50 Lunch: hot sandwich and soda at deli (think about brown-bagging it a couple of days a week) Wednesday $35.00 Monthly payment to fitness center (think about exercising at home) $4.00 Late fee on return of DVD $2.50 Bagel and juice on the way to work (eat at home or bring breakfast to work) Green = Easy savings ($20.50 in four days!) ©2013 Standard Retirement Services, Inc. Everyday Strategies For Financial Strength

Avoid 5 Common Spending Mistakes Step two Go with the flow Buying on impulse. Take 24 hours to “cool down” before making big purchase. Borrowing against your future. Don’t buy small purchases on credit or neglect to fund retirement. Buying new, not used. Consider buying used, especially high-ticket items like cars and boats. Blowing the budget on unexpected bills. Set aside money for unplanned emergencies. Buying the newest, the biggest, the best. Peace of mind from living within means outweighs short-term thrill (and long-term anxiety) of upscale lifestyle. ©2013 Standard Retirement Services, Inc. Everyday Strategies For Financial Strength

Using The Workbook Step three Take it to another level Gather your records. Gather income and spending records (receipts, checkbook registers, statements, etc.). Add it all up. Add up all sources of income (wages, interest, dividends, etc.). Don’t forget the tax man. Taxes include federal, state, local and FICA (Social Security and Medicare). Categorize expenses. Use spending diary or Monthly Expense Summary worksheets to review expenses. Find the bottom line. Determine if your bottom line has “excess income” or “excess expenses.” If you have excess income, consider redirecting all or a portion of this amount into your retirement plan account. ©2013 Standard Retirement Services, Inc. Everyday Strategies For Financial Strength

The Most Important Step Is Up To You Even with considerable debt, you can begin moving toward financial independence. Debt-to-income ratio of 21 or higher: Pay off high-interest debt Debt reduction comes before saving Debt-to-income ratio of less than 21: and Save money in your retirement plan ©2013 Standard Retirement Services, Inc. Everyday Strategies For Financial Strength

Sign Up Today If you are not participating in your retirement plan, sign up today. Contact your employer’s Human Resources or Retirement Planning department. Someone there can help get you started. ©2013 Standard Retirement Services, Inc. Everyday Strategies For Financial Strength

Additional Resources The Financial Literacy and Education Commission www.mymoney.gov The website for the Employee Benefits Security Administration of the U.S. Dept. of Labor website includes links to other sites and publications. (Under Consumer Information, go to Retirement Savings) www.dol.gov/ebsa Choose to Save®: a program of the Employee Benefit Research Institute (EBRI) www.choosetosave.org One of the largest and most accurate lists of online coupon codes to help you find free shipping or big discounts on your next purchase www.retailmenot.com This website includes money- and time-saving tips for parents www.mommysavers.com ©2013 Standard Retirement Services, Inc. Everyday Strategies For Financial Strength

Thank You!

Employers and plan participants should carefully consider the investment objectives, risks, charges and expenses of the investment options offered under the retirement plan before investing. The prospectuses for the individual mutual funds and each available investment option in the group annuity contain this and other important information. Prospectuses may be obtained by calling 877.805.1127. Please read the prospectus carefully before investing. Investments are subject to market risk and fluctuate in value. The Standard is the marketing name for StanCorp Financial Group, Inc. and its subsidiaries. StanCorp Equities, Inc., member FINRA, distributes group annuity contracts issued by Standard Insurance Company and may provide other brokerage services. Third-party administrative services are provided by Standard Retirement Services, Inc. Investment advisory services are provided by StanCorp Investment Advisers, Inc., a registered investment advisor. StanCorp Equities, Inc., Standard Insurance Company, Standard Retirement Services, Inc., and StanCorp Investment Advisers, Inc. are subsidiaries of StanCorp Financial Group, Inc. and all are Oregon corporations. Copyright © 2013 Standard Retirement Services, Inc. All rights reserved RP 16458-PPT (3/13)