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Independent women
- 1. w w w. e d u c a t o r s f i n a n c i a l g r o u p . c a INDEPENDENT WOMEN: Financial fundamentals for the female educator
- 2. Independent Women Meet yourmoderator Founder of Moolala (a personal finance training company) Bruce Sellery
- 3. Independent Women Meet yoursubject matter expert Financial Planner – CFP Educators Financial Group Lisa Raponi
- 4. Independent Women About thewebinar • Slides • Taping • Screen • Questions
- 5. Independent Women Agenda 1. Womenand money 2. Determine your path 3. Take control of the wheel 4. Become financially literate 5. Protect you and your family
- 6. Independent Women Women andMoney • 54% describes themselves as family CFO • 60% are the primary wage earners • 49% fear going broke Source: Allianz Life Insurance
- 7. Independent Women Women andMoney Relationships, women and retirement - The "5Ds” : • Death of a spouse (women have longer life spans) • Divorce (a third of all divorces involve couples over 50 years old) • Delayed marriage (women are waiting much longer to get married) • Dumped (women can be either the dumpee or the dumper) • Don't want to be married (many women are content being single) Source: The Single Woman’s Guide to Retirement, by Jane Cullinane
- 8. Independent Women Your financialroundup Net worth statement Net worth statement Total value of assets Total value of assets Total value of liabilities Total value of liabilities Cash flow statement Cash flow statement Total income Total income Total expenses Total expenses
- 9. Independent Women Exercise #1:Net worth statement Bank account $___ RRSP’s $___ Savings $___ House $___ Other $___ Total assets $___ Credit card $___ Car loan $___ Line of credit $___ Mortgage $___ Other $___ Total liabilities $___ Total net worth $ +/- _______
- 10. Independent Women Understand whereyour money goes Total Income Household expenses Debt repayments Short term savings plan Retirement savings plan Surplus/ Shortfall Small shifts can make a huge difference
- 11. Independent Women Exercise #2:Monthly cash flow statement Net household income $___ Rental income $___ Total income $___ Mortgage $___ Groceries $___ Entertainment $___ Car insurance $___ Credit cards $___ RRSP $___ Total expenses $___ Total monthly cash flow $ +/- _______
- 12. Independent Women Determine yourpath 1. Do you want to travel a few times a year? 2. When do you want to retire? 3. Do you want to take advantage of a deferred salary plan? 4. Is buying a home an option for you? 5. What are your family responsibilities now and in the future?
- 13. Independent Women Examples Short termgoals (3-5 years): • buying a new house • saving for your child’s education • taking advantage of the 4 over 5 plan Long term goals (10+ years): • retirement lifestyle • paying off your mortgage • leaving an estate for your family
- 14. Independent Women Exercise #3:What are your goals? Top three short term goals: 1.______________ 2.______________ 3.______________ Top three long term goals: 1.______________ 2.______________ 3.______________
- 15. Independent Women GOT QUESTIONS? WE’VEGOT EDUCATOR- SPECIFIC ANSWERS
- 16. Fixed income Governmentbonds Corporate bonds GICs Equities (stocks) Canadian US International Cash Your investment options Independent Women
- 17. Independent Women Asset allocation Short- term (1-3 years) Mid- term (3-5 years) Long- term (5+ years) •Money market fund • Mortgage and income fund • Bond fund • Mortgage and income fund • Bond fund • Balanced fund • Dividend fund • Balanced fund • Pure Canadian equity fund • Global fund • Sector specific fund
- 18. Independent Women Buckets toplace your money NRA Non- Registered Account TFSA Tax-Free Savings Account RRSP Registered Retirement Savings Plan • Investment income earned is taxed annually (interest/dividend/capital gains) • Any withdrawals may be subject to capital gains tax • Investment income earned is tax-free • Any withdrawals are not taxed • Investment income earned is tax-deferred • Taxed as income upon withdrawal
- 19. Source: Mackenzie Investments Basedon the S&P/TSX Composite Index Dec. 31, 1991 and Dec. 31, 2010. The cycle of investor emotions Independent Women
- 20. Independent Women Take controlof the wheel 1. Pay yourself first 2. Understand credit options 3. Reduce your interest 4. Become debt-free faster “The average female worker earns 71% of what a man does.” MoneySense magazine, November 2010
- 21. Independent Women Use astylist, not a barber Putting away just $100 a month with 5% growth: Compounding Amount Actual Monthly Contributions 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 $0K $10K $20K $30K $40K $50K $60K 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 $0K $10K $20K $30K $40K $50K $60K Source: Go Figure calculations based on $100/month contributions at 5% growth.
- 22. Independent Women Types ofdebt: the pros and cons Vehicle Pro Con Personal Loan • Set payment term • Can be paid off anytime • Higher rate of interest Credit Card • Low minimum payment • Revolving limit • High interest rate • Can have debt for life Line Of Credit • Revolving limit • Can be paid off anytime • Like a low-interest credit card • No set payment term • Can have debt for life Mortgage • Set payment term • Lowest borrowing rate • Pre-payment restrictions • Long amortization • Not easily refinanced
- 23. Independent Women Stop payinghigh interest rates =The average department store credit card charges 20% The average bank credit card interest rate = 14% Low-rate line of credit through Educators = 4% The average line of credit interest rate = 8% Use our online Debt Calculator to see how much money you could be saving by switching to a low-rate line of credit through us!
- 24. Independent Women Take control– take action • Stop paying high interest rates • Consolidate high-interest debt if possible • Increase amount/frequency of payment(s) • Round up payment to nearest $100 • List all balances from highest to lowest - Record interest rates for each debt - Pay the highest rate with the lowest balance first
- 25. Independent Women Accelerate yourmortgage payments: Look for more ways to save *Over the duration of the mortgage – based on a $200,000 mortgage at a 5-year fixed term/25-year amortization period and a 4% rate. Payment Strategy Total Mort. Payment Interest/Time Saved* (Over life of mortgage) Slow and steady (Regular) $1,052.00 (per month) None Accelerated $526.00 (bi-weekly) $16,849.00 (plus 3 years off amortization) Accelerated + (Add $180) $706.00 (bi-weekly) $53,826.00 (plus 11 years off amortization) Turbo charged (Add $180 + $5,000 annual lump sum) $706.00 (bi-weekly) $72,513.00 (plus 15 years off amortization)
- 26. Independent Women Protect youand your family Wills Powers of attorney • Financial property • Personal care Insurance
- 27. Independent Women Ask foradvice • Seek out a highly accredited Financial Planner • Work with someone who understands you as an educator • Be involved • Have regular contact • Take action
- 28. Independent Women GOT QUESTIONS? WE’VEGOT EDUCATOR- SPECIFIC ANSWERS
- 29. Percentage of womenwho… Become financially literate Independent Women
- 30. Independent Women Financial literacyis a ‘click’ away
- 31. Independent Women Create yournet worth and monthly cash flow statements (i.e. use our Go Figure online tool) Determine your financial goals Sign up for eNews Call us/visit us online: 1.800.263.9541, www.educatorsfinancialgroup.ca Homework
- 32. A women islike a circle, within her is the power to CREATE, NURTURE, and TRANSFORM. -Diane Mariechild Take the time to create your own roadmap, nurture your mind with information so you can transform your goals into reality with the help of Educators Financial Group. Final thoughts Independent Women
- 33. Independent Women Disclaimer The informationprovided is general in nature and is provided with the understanding that it may not be relied upon as, nor considered to be, the rendering of tax, legal, accounting or professional advice. Attendees and readers should consult a financial planner and their own accountant and/or legal advisor for specific advice related to their circumstances. Educators Financial Group will not be held responsible or liable for any losses, costs, damages or expenses incurred by reason of reliance as a result of the aforementioned information. The information presented was obtained from sources that are believed to be reliable. However, Educators Financial Group can not guarantee their completeness or accuracy. Commissions, trailing commissions, management fees and expenses may all be associated with mutual funds. Please read the simplified prospectus before investing. Mutual funds are not guaranteed, their value changes frequently and past performance may not be repeated.
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