Financial Health Checkup 2019 WVASFAA Spring Conference Stonewall Resort March 26-28, 2019 Financial Health Checkup Presented by: Amber shor, CLTC, First United Bank & Trust Passing the Torch – Taking Our Resources and Community Higher Passing the Torch - Taking Our Resources and Community Higher

Pyramid of Needs Over a lifetime, most people experience many different financial needs that can summarized into three stages: risk management, wealth accumulation and wealth preservation and distribution. A foundation of risk management is the key to protecting yourself and those you care about against the financial challenges associated with injury, illness and the risk of outliving their income. Passing the Torch – Taking Our Resources and Community Higher Passing the Torch - Taking Our Resources and Community Higher

Risk Management Health Insurance Disability Insurance Life Insurance Long Term Care Emergency Fund Passing the Torch – Taking Our Resources and Community Higher Passing the Torch - Taking Our Resources and Community Higher

Life Insurance Covers debt, funeral expenses, and income replacement. It covers the needs of your family when you are gone. You either LOVE someone or OWE someone! Term ~ Inexpensive, Increasing cost with age, and only enforced for a set amount of time. But…. “What if you live…?” Permanent ~ builds cash value, earns dividends, level premiums, lasts as long as live. Passing the Torch – Taking Our Resources and Community Higher Passing the Torch - Taking Our Resources and Community Higher

Long Term Disability Insurance Protect your most importance asset: The ability to earn an income! If you were sick or injured and could not work, what would you do? How long would your savings last if your income stopped? What impact would it have on your retirement? Could you afford to take a 6 month vacation? Do you think your employer would continue to pay you if you couldn’t work due to an injury or illness? Group Long Term Disability (Employer Plans) Usually covers 60% of Income (Taxable, Hard to qualify for full amount, and Coverage is limited) Individual Long Term Disability Coverage (can supplement group and bump up to 80% of income, Tax-free, Coverage is flexible, and lasts until retirement) Passing the Torch – Taking Our Resources and Community Higher Passing the Torch - Taking Our Resources and Community Higher

Long Term Care Protect the emotional, physical, and financial well being of your family. Currently $7,000 a month for LTC costs in WV. Covers: In Home Care, Assisted Living Facility, Nursing Home Care, Nurse Training Allowance, Medical Rehab Due To an Injury. Talk to your parents! This event could fall on your shoulders. Passing the Torch – Taking Our Resources and Community Higher Passing the Torch - Taking Our Resources and Community Higher

EMERGENCY FUND THREE TO SIX MONTHS OF INCOME In liquid cash vehicles (Savings Account or Money Market) USED FOR A SUDDEN FINANCIAL EVENT LIFE NEEDS (car breaks down, need a new hot water tank, etc.) SHORT TERM INJURY OR SICKNESS Passing the Torch – Taking Our Resources and Community Higher Passing the Torch - Taking Our Resources and Community Higher

Wealth Accumulation Retirement Planning, Saving for Children’s Education, or any other financial goals that you may have. It’s important to save in the most tax efficient manner. Take advantage of Employer’s Matching Contributions. None available? Start your own Roth IRA. Or do both! Start Early (Compound Interest is POWERFUL) Establish Tax Free Retirement Vehicles. Diversify your investments/assets. Passing the Torch – Taking Our Resources and Community Higher Passing the Torch - Taking Our Resources and Community Higher

Wealth Preservation & Distribution Protect everything you worked hard to accumulate. Having a guaranteed income in Retirement. Protecting against the risk of a Long Term Care event. Having the ability to distribute wealth to loved ones and charities in a tax efficient manner through Trusts and proper Estate Panning. Passing the Torch – Taking Our Resources and Community Higher Passing the Torch - Taking Our Resources and Community Higher

Know Where Your Money is Going 65% of Americans don’t have a budget Record your expenses Make a budget Choose something to save for Watch your savings grow You can’t plan for the future if you don’t know where your money is going Passing the Torch – Taking Our Resources and Community Higher Passing the Torch - Taking Our Resources and Community Higher

Costs to Include in Your Retirement Budget Don’t buy what you can’t afford, and live within your means. Retirement Bills Housing Medicare premiums Health Care Taxes Food Emergencies Entertainment Travel Grandchildren Leaving a legacy Passing the Torch – Taking Our Resources and Community Higher Passing the Torch - Taking Our Resources and Community Higher

Establish a Budget Develop and stick to a weekly, monthly, and yearly budget. Financial Planning is hard to do if you overspend your lifestyle. Will dictate when you can Retire. Always remember to Pay Yourself First! “Don’t have a champagne lifestyle on a beer budget” – Herm Edwards (Former NFL head coach) Passing the Torch – Taking Our Resources and Community Higher Passing the Torch - Taking Our Resources and Community Higher

Overview Get paid what you are worth and spend less than you earn. Establish credit Stick to a Budget Pay off credit card debt Contribute to a retirement plan. Have a savings plan Invest! Maximize your employment benefits Review your insurance coverage Passing the Torch – Taking Our Resources and Community Higher Passing the Torch - Taking Our Resources and Community Higher

Thank you! Passing the Torch – Taking Our Resources and Community Higher Passing the Torch - Taking Our Resources and Community Higher