Money MattersMoney MattersClass 6Class 6

Managing Job LossManaging Job Loss

Plan AheadPlan Ahead

Understand your Company’s BenefitsUnderstand your Company’s Benefits

Understand your current Financial Understand your current Financial SituationSituation

Planning AheadPlanning Ahead

Build an Emergency Fund: 3-6 month Build an Emergency Fund: 3-6 month expensesexpenses

Develop a budgetDevelop a budget Contribute to a 401(k), if availableContribute to a 401(k), if available Do not take loans from your 401(k)Do not take loans from your 401(k) Use credit wiselyUse credit wisely

Company BenefitsCompany Benefits

What benefits do I have?What benefits do I have? What are the time frames for continuing What are the time frames for continuing

coverage?coverage? How do I continue my medical coverage How do I continue my medical coverage

under cobra?under cobra? What job loss services are available?What job loss services are available? How do I get unemployment benefits?How do I get unemployment benefits?

Do I qualify for public assistance such as Do I qualify for public assistance such as food stamps?food stamps?

Am I entitled to sick pay? Vacation Pay? Am I entitled to sick pay? Vacation Pay? Severance Pay?Severance Pay?

How can I rollover my 401(K) plan?How can I rollover my 401(K) plan?

Current Financial StatusCurrent Financial Status

Assess your short-term situationAssess your short-term situation Make a list of all financial resourcesMake a list of all financial resources

• CashCash• SavingsSavings• Severance paySeverance pay• Unemployment benefits Unemployment benefits

Make a list of how much you oweMake a list of how much you owe• Mortgage / rentMortgage / rent• Credit cardsCredit cards• LoansLoans• Other debtOther debt

Set-up a short-term budgetSet-up a short-term budget What is your bottom-line monthly needs to What is your bottom-line monthly needs to

pay your billspay your bills Cut expenses in every way possibleCut expenses in every way possible Make arrangements with creditors to reduce Make arrangements with creditors to reduce

payments temporarilypayments temporarily Project your cash flow. How long can you Project your cash flow. How long can you

afford to be out of work?afford to be out of work?

Use all FSA, before your employment Use all FSA, before your employment endsends

Spend and Invest lump sums wiselySpend and Invest lump sums wisely

What to avoidWhat to avoid

Using Credit cardsUsing Credit cards Increasing debtIncreasing debt

Filing for bankruptcyFiling for bankruptcy

Using your 401(k) savingsUsing your 401(k) savings

Essential DocumentsEssential Documents

Personal IdentificationPersonal Identification LegalLegal DeathDeath WorkWork SchoolSchool Banking / FinancialBanking / Financial

Personal IdentificationPersonal Identification

Driver’s LicenseDriver’s License Green CardGreen Card Birth CertificateBirth Certificate PassportPassport Social Security CardSocial Security Card

Legal DocumentsLegal Documents

Legal ProceedingsLegal Proceedings ContractsContracts WarrantiesWarranties Marriage CertificateMarriage Certificate Divorce DecreeDivorce Decree

Death DocumentsDeath Documents

WillWill Funeral ArrangementsFuneral Arrangements Living WillLiving Will Death CertificateDeath Certificate

Work DocumentsWork Documents

History of work experienceHistory of work experience Information about past employersInformation about past employers

NameName AddressAddress Phone NumberPhone Number Position Held / Duties PerformedPosition Held / Duties Performed

TrainingTraining

School DocumentsSchool Documents

TranscriptsTranscripts Photocopy or original Photocopy or original

ChildrenChildren Immunization RecordImmunization Record Report CardsReport Cards IEPsIEPs Names / Addresses of School AttendedNames / Addresses of School Attended

Banking / Financial DocumentsBanking / Financial Documents

Checking accountsChecking accounts Savings accountsSavings accounts IRA statementsIRA statements 401(k) statements401(k) statements Investment RecordsInvestment Records Account DisclosuresAccount Disclosures Account ID infoAccount ID info Monthly statementsMonthly statements

How Long to Keep RecordsHow Long to Keep Records

TYPE TIME

Taxes 7 years

IRA contributions Permanently

Retirement Plan Statements Permanently

Bank Records Permanently - Statement

Pay Check Stubs 1 Year

Bills 1 year to permanently

Brokerage Statements Until you sell the securities

Credit Card Statements 7 years

Long-Term StorageLong-Term Storage

Fireproof Box at home or safe-deposit Box Fireproof Box at home or safe-deposit Box at your bankat your bank

To prevent Identity TheftTo prevent Identity Theft Shred all documents with account numbers Shred all documents with account numbers

and personal identification numbersand personal identification numbers

Identity TheftIdentity Theft

Identity theft occurs when someone obtains Identity theft occurs when someone obtains your personal information and use it to your personal information and use it to commit fraud.commit fraud.

8 million Americans are victims each year8 million Americans are victims each year

Protect Your IDProtect Your ID

Guard your information onlineGuard your information online Clear your logins and passwordsClear your logins and passwords Change your logins and passwords monthlyChange your logins and passwords monthly Pay for online purchases with a credit cardPay for online purchases with a credit card

Check your bank and credit card statementsCheck your bank and credit card statements Verify your mailing address with the post office Verify your mailing address with the post office

and financial institutionsand financial institutions Beware of phishing scamsBeware of phishing scams Monitor your credit reportMonitor your credit report Shred and destroy sensitive documentsShred and destroy sensitive documents

Online SecurityOnline Security Safe GuardSafe Guard

Account Numbers Account Numbers Personal Identification NumbersPersonal Identification Numbers

Change Your Passwords FrequentlyChange Your Passwords Frequently Be careful using Wi-Fi Be careful using Wi-Fi Avoid going to your account on computers that are not Avoid going to your account on computers that are not

your ownyour own Install firewalls and spyware on your computersInstall firewalls and spyware on your computers Be sure Financial web pages are secure and encryptedBe sure Financial web pages are secure and encrypted Log Out Completely Log Out Completely If you think your security has been breached. Contact If you think your security has been breached. Contact

your financial institutions immediately.your financial institutions immediately.

InvestingInvesting

InvestingInvesting

The act of choosing products and The act of choosing products and strategies to make that money grow!strategies to make that money grow!

The prospective of time:The prospective of time: Short-term (1-2 years), savingsShort-term (1-2 years), savings Mid-to-Long term (3-10 years), investing Mid-to-Long term (3-10 years), investing

                                                                                          

Quote of the DayQuote of the Day

"A big part of financial freedom is having "A big part of financial freedom is having your heart and mind free from worry about your heart and mind free from worry about the what-ifs of life.”the what-ifs of life.”

-Suze Orman -Suze Orman