1. TOPIC 8: RISKS YOU FACE WHEN ENTERING THE WORKFORCE Group 6:

2. Reasons to Start  Only 4% of Americans have adequate capital stowed away for retirement  63% are dependent on Social Security, friends or charity  62% of people retire with less than $25,000 in assets  Only 4% of young workers are taking full advantage of their workplace retirement plans

3. Common Mistakes  Procrastination  Plan to just rely on Social Security benefits  Fail to seek expert financial and retirement guidance

4. Entering the Workforce  Marriage/Children/Divorce  Investor Education  Buyouts/Mergers Risks That You May Face

5. Why Marriage? The Average age of a Bride in the USA is 25.3 People start their careers between ages 20-26 The Average age of a Groom in the USA is 26.9

6. Risks of Marriage  Average wedding cost is $20,000  30% of couples pay for their own wedding  A couple needs more money to retire than one person alone  One spouse could become disabled or unfit to work  Credit Ratings and Accumulated Debt  Divorce  Number of children and when you have them

7. Mitigate Marriage Risk  Contributions are not tax deductible in current year People are most likely in a lower tax bracket at the beginning of their career  Not taxed when withdrawn in retirement Protects you from unpredictable tax increases in the future Roth IRA

8. Mitigate Marriage Risk  Insurance Some employers offer disability insurance Workers Compensation Life Insurance  Credit Checks Know your spouse’s credit history and debt accumulation Responsible Financing

9. Mitigate Marriage Risk  Children reduce total household wealth by 3% per child  May reduce household to one income  Delay retirement savings  Save early for all your children  Be aware of the expenses and the timeline on which they occur Risks of ChildrenMitigate the Risks

10. Mitigate Marriage Risk  Potentially lose accumulated savings and assets  Become self sufficient when not prepared to do so  Prenuptial Agreement  Know the benefits of having your name on marital assets  Separate retirement plans  Establish your own credit Risks of DivorceMitigate the Risks

11. Why Investor Education? Prevent common mistakes from occurring When, what, where and how will you invest? Comfortable managing large sums of money

12. Investor Education Risks  Do you know how to maximize your investments? There are many routes to take when planning for retirement, each one suiting a different individual  Can you trust someone else with your money? In a world filled with greed, an individual or whole company may cut corners for their benefit and not your own Manage your Own Account Consult with Professionals

13. Mitigate Investor Education Risks  Take advantage of workshops and classes that offer insight into the world of investments  Weigh the options of each potential investment before deciding  Keep informed on what is happening with your own accounts  Use recommendations when making decisions on who to trust with investments  Place retirement assets in several locations, diffusing risk Educate Yourself Remember, It is Your Money

14. Mitigate Investor Education Risks  Do not require a large up-front investment  Come with some degree of risk, along with stability  Has flexibility to move money into other funds Mutual Funds

15. Why Buyouts and Mergers? The business world is not stable May cause changes in company policy Mergers and acquisitions frequently occur

16. Buyouts and Mergers  Expansion of market share  Acquisition of new lines of distribution or technology  Reduction of operating costs  A company’s assets may be undervalued and sold for a profit Reasons Companies May Merge or Face a Buyout

17. Buyouts and Mergers  70% of mergers fail to increase shareholder value  Retirement plans may change if the company you work for changes hands during your employment Risks

18. Buyouts and Mergers  You can have your own IRA to which you contribute and have full control, regardless of the situation of your employer  Don’t make assumptions that policies will remain constant  Being flexible while you are still young may provide greater opportunities Mitigate risks

19. Our Advice To You Never too Early to Start Saving Educate Yourself