THE MILLENNIAL INVESTOR RVP AARON FISHER READING, PA October 24, 2015

3 BASIC PRESENTATIONS  1. Kitchen Table  2. Young Single Millennial – Eye Opener  3. Back to the Basics: Developing savings and investing habits (Invesco)

KITCHEN TABLE

FINANCIAL INDEPENDENCE NUMBER Your financial independence number is the amount of money you need to accumulate so that when you retire you won’t run out of money and have to go back to work! You want $2,500 per month to retire today… 30 years from now, after 3% inflation… you will need $6,083 per month to buy what $2,500 buys today. Which is $73,000 per year! Your FIN is $1,080,000 This hypothetical example assumes 20 years of retirement income needed, at a 6% post-retirement rate of return and 3% inflation. Hypothetical investment rates assume a nominal 10% rate of return, compounded monthly, and is not indicative of any specific investment. Any actual investment may be subject to taxes and fees, which would lower performance. This example shows a constant rate of return, unlike actual investments, which may fluctuate in value. It is unlikely an investment would grow 10% on a consistent basis, given current market conditions.

FINANCIAL INDEPENDENCE NUMBER: TELL TWO STORIES 3 Legged Stool Saving vs Investing  FIN = $1,000,000  Example: Couple who earns $80,000 a year for 40 years. $3,200,000  Are you going to save your invest your way there?  We need to learn how money works  We have to get our money working hard for us through compound interest.  This leads into the Rule of 72 1.Pension 2.Social Security 3.Personal Savings

YOUNG SINGLE MILLENNIAL

TEACHING MILLENNIALS TO PAY THEMSELVES FIRST The overall average starting salary for Class of 2014 new college graduates currently stands at $48,127, according to the Spring 2015 Salary Survey Do Most People Realize that Saving 10% = Financial Stability? Saving 10 % $48,000 x10% $4,800 a year or $400 a month Able to Spend 90% $48,000 x90% $43,200 a yr. or $3,600 a month

Do People Know How Important it is to Start in Their 20’s?

If someone had shown you this, would you have started saving earlier? If you learned this in your 20’s how much better off would you be in retirement?

BACK TO THE BASICS

Do We Get Taught Where to Put Our Savings? $400 $200 $100 $100

Do People Know What To Do With Their Savings After An Emergency Fund Has Been Established?$400 $200 $200