Women and Money Presented by Joyce Lash Family Resource Management Field Specialist

 Understanding Family Living Costs –Integrated into the Farm Spending Plan –Realistic –Based on actual spending

How do you compare? Region $30,084 State of Iowa $34,916 ISU Extension – Economic Profiles Illinois $60,294 Minnesota $80,728 Nebraska $66,126

Non-Farm Families Iowa $48,108 Bureau of Labor Statistics 2009 Midwest $46,551 US Average $49,067

Budget Suggestions ISU - 10% of farm income be allocated for family living expenses 10-15% of the profit be set aside for non-essential purchases

Monitor Family Living Costs Record and stay current on expenses –Account for cash as well as recorded spending –Compare actual costs to projected costs and make adjustments early! –Build in cost of replacing major household items

Impact of Inflation In 2008 the cost of goods rose 3.8% –Clothing costing $1,200 in 2007 would cost you $1,246 in 2008 In 2009 the cost of goods rose.25% In 2010 the cost of goods rose 1.6% Financial Planners typically use 3.5% to reflect the increase in cost of expenses

Wealth Management  Balancing Farm Investments with Non-Farm Investments

1.Organize Your Financial Information 2.Laying the Groundwork 3.Debt Management and Credit Considerations 4.Finding Money to Invest 5.Determine Your Asset Allocation and Risk Tolerance 6.Evaluation Investment Products and Agricultural Oriented Alternatives 7.Evaluating Financial Service Providers and Information Services 8.Investing for Retirement and Estate Planning 11 Supplemental Units

Asset Allocation

Family Financial Snapshot Farm Assets Crops Livestock Prepaid Expenses Feed on Hand Supplies-Tools Accounts Receivable Machinery Farm Land Buildings and Improvements Contracts and Loans Securities, Certificates Personal Assets Checking Savings Money Market Accounts CD’s Home and Household Items Personal Accounts –401(k) –Stocks and Bonds Insurance Jewelry and collectibles Personal Vehicle

Asset Allocation High Risk Crops Livestock Prepaid Expenses Feed on Hand Supplies-Tools Accounts Receivable Machinery Farm Land Buildings and Improvements Contracts and Loans Securities, Certificates Home and Household Items Personal Accounts –401(k) –Stocks and Bonds Jewelry and collectibles Personal Vehicle Low Risk Checking Savings Money Market Accounts CD’s Insurance

The Three Legged Stool 1.Social Security is projected to cover approximately 60% of your income needs 2.Farm Income? 3.Retirement Accounts

Retirement Accounts Work -401(k) or Pension Simple, Keogh, SEP Traditional IRA or Roth IRA Annuities CD’s Money Market Account

Credit Reports Check annually Monitor and make corrections

Questions/ Thoughts

Women and Money Thanks You! Joyce Lash Family Resource Management