Post on 15-Jan-2016
Online Investment Education for Farm Households
Jason Johnson - Texas AgriLife ExtensionRuth Hambleton - University of Illinois Extension Bob Wells and Tim Eggers - Iowa State University
Nancy Porter - University of Clemson
The project is guided by a team of 14 members from 10 states and USDA/CSREES. http://collaborate.extension.org/wiki/OIE_Team
Percent of Agricultural Producers Experiencing Financial Stress Now or Will Within the Next 3 Years
Experiencing Stress Now
5% or
less
6% to
10%
11% to
20%
21% to
30%
More than 30%
0%
5%
10%
15%
20%
25%
30%
35%
40%
NationallyTexas
Will Experience Stress – Next 3 Yrs.
5% or
less
6% to
10%
11% to
20%
21% to
30%
More than 30%
0%
5%
10%
15%
20%
25%
30%
35%
40%
NationallyTexas
Changes in Documentation Required of Producers Requesting Financing from Lenders in Recent Months
Decreased No Change Increased Slightly Increased Substantially
1%
25%
57%
17%
7%
17%
59%
17%
Nationally Texas
• Investing for Your Future• Online Investor Education for Farm Households– Financial Industry Regulatory Authority
Investor Education Foundation• Annie’s Project role in piloting IFYF for Farm
Families
Farm Crew:Tim Eggers, Ruth Hambleton, Bob Wells, and Jason Johnson
What We’ve Learned – Internet Access
What We’ve Learned – Internet Usage
What We’ve Learned – Products & Investments
What We’ve Learned – Investment Portfolios
IFYF for Farm Families Units 1-11Increased confidence in off farm investment principles and products
Activity #1 - Complete the Emergency Financial First Aid Kit.Objective - Identify and organize all pertinent financial documents. This serves as a checklist, record, and organizational tool for important accounts, contacts, account numbers, and policies. Beneficiaries are reviewed for relevant accounts.
Activity #2 - Complete an Integrated Business Balance Sheet & Personal Net Worth Statement.Objective - Combine personal and business assets/liabilities so that personal and business asset allocation can be examined separately or together.
Activity #3 - Complete the “Ideal” and “Current” Asset Allocation ReviewObjective - Review alternative asset classes in a portfolio approach framework. Compare desired asset allocation strategy with current asset allocation strategy to identify possible areas to expand investments to become more diversified.
Ideal Allocation Current Allocation
Activity #4 - Complete the Estimated Expenses & Emergency Cash Reserves WorksheetObjective - Estimate monthly family expenditures and identify the appropriate emergency cash reserves to be retained in readily available savings accounts.
Activity #5 - Evaluate “on-line” and “brick and mortar” money market, certificate of deposit, savings, and checking account options.Objective -Identify the most appropriate source for providing these services. Identify higher-interest earning accounts and institutions compared to existing providers.
Activity #6 - Obtain a free credit report detailing personal credit history and credit accounts.Objective - Examine credit history, open lines of credit, available credit limits, and current balances related to personal financial accounts. Check for errors and inspect all current liabilities.
Activity #7 - Obtain UCC (Uniform Commercial Code) Lending RecordsObjective - Search UCC Records to determine if personal or business property has been pledged or is encumbered. Use UCC records to discover the availability of assets for attachment or seizure and the financial relationship between entities.
Activity #8 - Objectively Evaluate Insurance Needs (life, health, disability, etc.)Objective - Assess insurance needs. The emphasis here is to determine your needs and then practice consumerism to find the best provider and cost combination.
Activity #9 - Complete the Investment Risk Tolerance Quiz (for each financial decision maker in the family/operation).Objective -Assess risk tolerance for those instrumental in the financial responsibilities of the family and business.
Activity #10 - Evaluate local brokerage and “on-line” discount brokerage options.Objective -Evaluate the alternative brokerage options to facilitate investments in bonds, stocks, exchange traded funds, and other investment assets “off the farm.”
Activity #11 - Complete the Retirement Estimator for Farm FamiliesObjective - Estimate the income needs and potential sources of funds for a comfortable retirement.
Activity #12 - Evaluate alternative Individual Retirement Account (IRA) types for individuals and alternative retirement plans for businesses.Objective - Compare retirement program type details to ensure that participants are utilizing the most appropriate plans for their individual and business circumstances.
Activity #13 - Complete the Estate Planning Questionnaire and Farm Asset/Management Transfer PlanObjective - Assess the current value of the estate, titling of assets, and communicate farm asset management plans.
Activity #14 - Evaluate Potential Financial Advisors using the Financial Advisor QuestionnaireObjective - Evaluate the credentials, services, and compensation basis for potential financial advisors. This activity will help you make informed decisions about engaging a potential financial advisor based on the information they provide.
What are we evaluating
• Effectiveness of the online curriculum for its users
• Overall design of the online program (simplicity)
• Activities contained within online program• Content of the program relevant to the topic• Navigation and instructions of the online
program• Logistical and performance items of the
online program
How will we evaluate
ParticipantsEmailed aninvitation tocomplete a 25question survey
FacilitatorsFollow up phoneinterview
March-May 2009