1. 10 Concepts for a Better Financial Future

2. How Much do You Need In Retirement? $200,000 ? $500,000 ? $1,000,000 ? $2,000,000 ?

3. Lesson One “Pay yourself first” The foundation of financial success is to spend less than you earn. For every dollar you make, invest 10 cents before doing anything else. It’s simple, easy, and effective

4. Lesson Two “Start Early” The young have an incredible advantage in investing - TIME Three things determine how much an investment will be worth: 1.The amount invested 2.The rate of return 3.How long the money is invested “Rule of 72”

5. So you want to be a millionaire? Assume you want to be millionaire by age 65? How much would you have to invest each month to have $1,000,000 – we will assume a 9% return Starting AgeMonthly Investment 16 $112 25 $247 35 $611 45 $1,629 55 $5,485 Starting today is better than waiting….compounding interest! “It’s a beautiful thing!” – See ChartSee Chart

6. Lesson Three “Make your money work” Most people work very hard for their money, but forget to ask their money to return the favor. If you want to be financially successful, you need your money to grow. Why? The dreaded word……Inflation Movie Ticket Disneyland New Car 20 years ago $3.55 $16.50 $11,925 10 years ago $4.35 $33.00 $15,900 Now $6.21 $53.00 $28,410 Warren Buffett's Rule #1 of Investing: Don't Lose Money.

7. Lesson Four “Own, Loan, and Save” There are three ways to invest: Own Buying common stock gives you ownership * Higher return/High risk of loss Loan Buying a bond represents a loan to a company or the government Save A certificate of deposit or a savings account preserves your money * Safe investment/Low return Most people should have some of each – Stocks for growth; Bonds for income; Savings for stability

8. Lesson Five “Owning Stock” Buying stock makes you an owner of the company When buying stock, think about the business you’re investing in. It’s what your buying

9. Lesson Six “Don’t get emotional” It’s easy to get greedy in a rising market It’s easy to get scared in a falling market Acting on greed or fear is a bad idea Whenever you make an investment decision ask yourself: Am I acting on greed, fear or facts? ** Remember to focus on investing on long term.

11. Lesson Seven “Use debt sensibly” Debt is just a tool. You can use it to dig yourself into a hole or to build a better financial future. What debt does for you depends on what you purchase with that debt. Good debts: At the end of your loan, your total payments are less than the current value of the purchase There are more bad debts than good debts

12. Lesson Eight “Take the match; Grow tax free” Extra money is good….taxes are not! At some point, you will probably be eligible for a retirement plan such as a 401(k)(b) – Less tax and employee match contributions “Pre-tax vs. post-tax” 401 (k) Roth IRA

13. Lesson 9 “Don’t touch the 401(k) or Roth” You have worked hard…you need a vacation. Sparkling blue waters of Aruba…sounds great! – Lets take money out of your 401(k) – NOT A GOOD IDEA! Here is what it will actually cost you: Travel agency: $5,000 But, because of taxes and penalties you have to take $8,333 from your 401(k) to get $5,000 If you left your money in your 401(k) – that money would be worth $123, 206 Over 20 year retirement, it could be worth $232,596 in income

14. Lesson 10 “Needs vs. Wants” We all have to spend money on our basic needs: transportation, housing and food However: Luxury car: $600 month or Sensible car: $200 month Dining out: $40 per person or Dining in: $15 per person