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INDEPENDENT WOMEN:Financial fundamentals for the female educator

Independent Women

Meet your moderator

Founder of Moolala(a personal finance training company)

Bruce Sellery

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Meet your subject matter expert

Financial Planner – CFPEducators Financial Group

Lisa Raponi

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About the webinar• Slides

• Taping

• Screen

• Questions

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Agenda

1. Women and money

2. Determine your path

3. Take control of the wheel

4. Become financially literate

5. Protect you and your family

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Women and Money

• 54% describes themselves as family CFO

• 60% are the primary wage earners

• 49% fear going broke

Source: Allianz Life Insurance

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Women and MoneyRelationships, 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

Independent Women

Your financial roundup

Net worth statementNet worth statement

Total value of assets

Total value of assets

Total value of liabilities

Total value of liabilities

Cash flow statementCash flow statement

Total income

Total income

Total expenses

Total expenses

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 $ +/- _______

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Understand where your money goes

TotalIncome

Household expenses

Debt repayments

Short termsavings plan

Retirement savings plan

Surplus/Shortfall

Small shifts can make a huge difference

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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 $ +/- _______

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Determine your path1. 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?

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Examples

Short term goals (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

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Exercise #3: What are your goals?

Top three short term goals:

1.______________2.______________3.______________

Top three long term goals:

1.______________2.______________3.______________

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GOT QUESTIONS? WE’VE GOT EDUCATOR-

SPECIFIC ANSWERS

Fixed income

Government bonds Corporate bonds GICs

Equities (stocks)

Canadian US International

Cash

Your investment options

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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

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Buckets to place your money

NRANon-

Registered Account

TFSATax-Free Savings Account

RRSPRegistered 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

Source: Mackenzie InvestmentsBased on the S&P/TSX Composite Index Dec. 31, 1991 and Dec. 31, 2010.

The cycle of investor emotions

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Independent Women

Take control of the wheel

1. Pay yourself first2. Understand credit options3. Reduce your interest4. Become debt-free faster

“The average female worker earns 71% of what a man does.”MoneySense magazine, November 2010

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Use a stylist, not a barberPutting 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.

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Types of debt: 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

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Stop paying high 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!

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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

Independent Women

Accelerate your mortgage 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)

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Protect you and your family

Wills

Powers of attorney• Financial property• Personal care

Insurance

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Ask for advice

• Seek out a highly accredited Financial Planner

• Work with someone who understands you as an educator

• Be involved

• Have regular contact

• Take action

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GOT QUESTIONS? WE’VE GOT EDUCATOR-

SPECIFIC ANSWERS

Percentage of women who…

Become financially literate

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Financial literacy is a ‘click’ away

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Create your net worth and monthly cash flow statements (i.e. use our Go Figure online tool)

Determine your financial goals

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Call us/visit us online: 1.800.263.9541,www.educa to rs f i nanc ia lg roup .ca

Homework

A women is like 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

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DisclaimerThe information provided 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.

www.educatorsfinancialgroup.ca

Independent Women

THANK YOU