Financial Management: Section 1

Examining Risk Management

www.free-retirement-plan.com

Financial Security - What Is It?

Why is money a problem for some people?
Worries
Delays
Worries
Regrets
Delays
Regrets
And a solver
of problems for others?
Confidence
Actions
Goals problem
Confidence
for some
Actions
Goals

people?

And a problem-solver
for others?
Financial security means different things to different people.

Financial Security - Defined

A feeling of confidence that
you will aA feeling of

confidence that you will

achieve your financial goals
through the actions you are
taking today.
chieve your
financial goals through
the actions you are
taking today.

Wealth
Preservation
& Distribution

Wealth
Accumulation

Risk Management

Knowledge and actions work together to build financial security.

Do You Have Financial Confidence Now?

Things that concern many
people

Healthcare
Real Estate
Taxes
Investments
Job Security
Savings
Disability
Social Security
Insurance
Inflation
College costs

Taxes
Investments
Job security
Savings
Disability
Social Security
Insurance
Inflation
College costs

ealth care

Discussing your concerns can help build financial confidence.

A Structure for Lifetime

Financial Security

Wealth
Preservation
& Distribution

Wealth
Accumulation

Risk Management

Financial security can be achieved across all life stages.

Risk Management: A Strong Foundation

Life insurance
Risk Management Items
1.Life Insurance
2.Disability Income
Insurance
3.Long-term Care
Insurance
4.Health Insurance
5.Auto and Home Owners
Insurances

insurance

Risk Management

Lifetime financial security is built on a foundation of risk management.

www.free-retirement-plan.com

Protect Your Most Valuable Asset

Potential come to Age 65

Potential Income to Age 65

Age
30
40
50

$50K Income
$1,750,000
$1,250,000
$ 750,000

$100K Income
$3,500,000
$2,500,000
$1,500,000

$200K Income
$7,000,000
$5,000,000
$3,000,000

What are you going to accomplish

with this money? Spend it? Save it? Put
it towards your goals for the future?
50$

750,000

1,500,000

3,000,000

Your ability to earn an income is your most valuable asset.

How Much Life Insurance?

Objective

His

Income Replacement
Pay Off Mortgage
Education Funds
Emergency Fund

Income Replacement

His

Hers

Hers

??

Pay Off Mortgage

Education Funds
Emergency Fund
TOTAL

The answer depends on what you want and need to accomplish.

What are your Chances of

Needing Disability Income
Insurance?

Here are the odds of needing Disability

Income replacement.

www.free-retirement-plan.com

Which Job is more Appealing

Job A
$5,333/ month as long
as you are able to
work
=============
$0 if you unable to
work as a result of
an illness or injury

Job B
$5,186 / month as long
as you are able to
work
==============
$4,150 per month after
taxes if you are
unable to work due
to an illness or injury

Does it make sense to insure a job. How will you

fund your retirement in Job A, in the event of
illness or injury?

If we assume an annual increase of 5.8% in costs

How will you cover the cost of care for

yourself? For your spouse? For BOTH of you?

Risk Management Summary

Addressing Lifes
Financial Risks
Premature Death
Disability defined as
sick, hurt or unable to
work
Cost of Care associated
with injury, illness or
declining health
www.free-retirement-plan.com