2. Building Your Financial House using Maslow’s Hierarchy of Needs Theory Diana Webb, Ph.D. Associate Professor of Finance

3. Maslow’s Hierarchy of Needs Theory

4. Building Your Financial House Get Rich Quick Futures Options Individual Stocks Accounts Savings Emergency Checking Money Market Retirement 401K, IRA Insurances = Protection Health Disability Income Life Long Term Care Auto & Home Retirement

5. Retirement Planning for the 21 st Century 50 years ago Social Security was strong More people were paying in than taking out of the system People worked until they were age 65 Today the Social Security System is weak Living longer due to advances in the medicine More add-ons to Social Security (widows, orphaned children, disabled workers) More people retiring earlier than age 65

6. What do we do now that we understand the Federal Government cannot support our retirement? Plan ahead for our retirement and stop depending on Government Take charge of our lifestyle Begin saving today How do we do this saving for retirement? – Raises at work – Income tax refund – Bonuses – Inheritance

7. Ideas on How to Invest, What to Invest, and Where Mutual FundsIndividual Stocks Government BondsMoney Market Accounts Municipal BondsCorporate Bonds Growth StocksIncome Stocks International StocksInternational Bonds EE Savings Bonds Utilities Real Estate Investment Trusts (REITs)

8. Ideas on How to Open a Retirement Account Employer Plans – 401 K plans – 403 B plans – 457 plans Individual Retirement Accounts – Roth Individual Retirement Accounts – Traditional Retirement Accounts Brokerage Accounts – Online Accounts without using a broker or registered representative – Internet education on investing – Personal Finance class via CMU

9. What to know before you begin investing Your risk analysis Where are you on a scale of 1-10? 1 = Not willing to take any riskConservative 5 = Willing to take some riskModerate 10 = Willing to take a lot of riskAggressive How willing are you to take on risk? – Interest Rate Risk – Stock Market Risk – Economic Risk

10. Funding Your Child’s Future Education 529 College Savings Plans 529 Plans and how they work Setting up a 529 Plan Funding the 529 Plan Advantages Disadvantages Information on 529 Plans

11. Finding Your Financial Direction Using Your Compass Where are you today? Where do you want to be tomorrow? How do you assess where you are today? Hint: take a personal finance class and learn about building your financial house Setting goals Getting rid of debt Starting fresh

12. The Role of Financial Advisor Help you assess what you need Help you plan for the future Help you get organized Help you during life changes Help you realize your dreams of tomorrow How do financial advisors get paid

13. Why & When to Rebalance your Investment Accounts As we get older our investment objectives change Accumulation Stage (ages 25-65) – Your working years – You can be more investment aggressive up to about age 60-65 Stocks Bonds – Prior to retirement, rebalance for more moderate investing Distribution Stage (ages 65-85) – Your retirement years – More moderate investments due to retirement – Keeping up with inflation and taxes, but more moderate – Rebalance more money in moderate to conservative investments Estate Planning Stage (65-?) Where do you want your investments and money to go?

14. Getting Started Where are you today? Take your pulse What debt do you have? Does your debt include Needs or Wants? Track every single cent you spend for 4 months Is more going out for senseless things? Do you see patterns of spending? Can you change those patterns of spending? After the 4 months of record keeping you will know your pulse Now you can begin to build a healthy financial house & remember its all about the money, honey! Sincerely, Dr. Webb