1. Presented by Standard Retirement Services, Inc.

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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. Small Sacrifices, Big Gains
Long-Term Growth Of Savings 1
Small Sacrifices, Big Gains
Monthly Value if invested for:
Savings years years years years
$ $3, $11, $30, $70,286
$ $9, $29, $75, $175,714
$ $13, $44, $112, $263,571
$ $18, $59, $150, $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

10. 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

11. 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

12. = 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

13. 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

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

15. 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

16. 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

17. 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

18. 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

19. Additional Resources
The Financial Literacy and Education Commission
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)
Choose to Save®: a program of the Employee Benefit Research Institute (EBRI)
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
This website includes money- and time-saving tips for parents
©2013 Standard Retirement Services, Inc Everyday Strategies For Financial Strength

20. Thank You!

21. 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 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 PPT (3/13)