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Welcome to…
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Pam Atkinson
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Meet the Speakers!
Consumer Economics Educators University of Illinois Extension
Kathy Sweedler
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In what state and/or county
are you located?
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Where Are You in the Job Seeking Process?
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a. Not started"b. Applying"c. Interviewing"d. Receiving offers"e. Have a job"
Where are you in the job seeking process?
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Why Do Benefits Matter?
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Increase Your Standard of Living!
Informed Employees are Best-Suited for Making Decisions on Employee-
Sponsored Retirement Plans.!
Make the Most of Compounded Interest!
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What Kind of Benefits Might an Employer Offer?
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What kind of benefits might an employer offer?
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Possible Benefits
Retirement Plans!
Credit bureaus collect
information about your credit use!
Time Off!From Work!
Savings & !Investments! Others!
Defined Benefit!
401(k)!
Etc.!
Vacation!
Sick Leave!
Maternity!
College!
Mutual Funds!
Stock Options!
Wellness!
Insurance!
Etc.!
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Insurance
Disability !
Life !
Unemployment!
Dental!
Vision !
Health!
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How much is health insurance worth as a benefit of employment?
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How Much Is Health Insurance Worth as a Job Benefit?
~ $6,025 annually for single coverage!
~ $16,834 annually for family coverage!
“Employer Health Benefits: 2013 Summary of Findings,” The Kaiser Family Foundation and Health Research and Educational Trust, 2013, http://kff.org/report-section/2013-summary-of-findings/. !
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Which Job Benefits Does YOUR Employer Offer?
Keep in mind that employers !may not have all the benefits,!
…AND you may not be eligible for some benefits.!
Which job benefits does your employer offer?
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Access to Job Benefits
• Retirement Benefits!• Medical Care!• Life Insurance!!
79%!87%!78%!
This slide shows the percent of people with access to job benefits: For professional occupations in private industry, National Compensation Survey: Employee Benefits in the United States, Bureau of Labor Statistics, March 2013.!
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What Kind of Benefits Do You Need?
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Retirement Plans
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Defined Benefit!
Defined Contribution!
28%! 26%!
55%! 38%!
Participation"Access"Type "
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Tax-deferred Savings Plan
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Salary!
Pay Taxes!
Save!
$100! $100!
$0! $28!
$100! $72!
Take Money Home"Save in Tax-Deferred Plan"
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Money from Salary!
Investment Year 1!
Value in Year 20!
Value After Withdrawing Money & Paying Taxes!
$5,000! $5,000!
$5,000! $3,600!
$28,022! $12,368!
$20,176! $12,368!
Non-Tax-Deferred"Tax-Deferred"
More Money to Grow
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Compare benefits when looking for a job
Review your budget before choosing
Coordinate benefits with spouse’s benefits
Review choices annually
Steps for Success….
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Simple 401(k)!
401(k)!
457!
SEP!
Roth IRA!
403(b)!
Simple IRA!
Roth 401(k)!
SURS!
Alphabet Soup?
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Employer Match: A Bonus
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$50/$75 $100/$150 $200/$300
Your Contribution's Value at Retirement!Value With Employer's Match!
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1 day/month paid vacation!
1 day/month paid sick leave!
1 day/month paid time off for vacation OR
sick leave!
2 days/month paid vacation!
Paid health insurance worth $300 a month!
1 day/month paid sick leave!
Job C"Job B"Job A "
On-site child care + $100 discount monthly!
Option to buy group health insurance;
costs $300!
5% salary ($180) contributed to
retirement plan!Free lunch daily!
Comparing Job Benefits
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1 day/month paid vacation!
1 day/month paid sick leave!
1 day/month paid time off for vacation
OR sick leave!
2 days/month paid vacation!
Paid health insurance worth $300 a month!
1 day/month paid sick leave!
Job C"Job B"Job A "
On-site child care + $100 discount
monthly!Option to buy group
health insurance; costs $300!
5% salary ($180) contributed to
retirement plan!Free lunch daily!
$160
$160
$160
$160
$320
$100 $180
$100
$300
$?
Comparing Job Benefits
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How far will my salary go in another city? "• http://cgi.money.cnn.com/tools/costofliving/costofliving.html!• http://www.bankrate.com/brm/movecalc.asp!
Consider Cost of Living Differences
Which Job Benefits Does YOUR Employer Offer? Consider Cost of Living Differences
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Time Makes a Difference
When you ’ re saving for the future, starting NOW makes a big difference.!
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Time Value of Money: The Miracle of Compounding!
Let your money earn money by reinvesting it!"
For example, earn interest on your interest in a savings account, !
OR invest in a retirement plan and reinvest your dividends. !
Which Job Benefits Does YOUR Employer Offer?
Time Value of Money: The Miracle of Compounding!
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Let Your Money Work For You
0!
100!
200!
300!
400!
500!
2! 4! 6! 8! 10! 12! 14! 16! 18! 20! 22! 24! 26! 28! 30!
Invest $100 at 5% Interest for 30 Years and Watch Your Money Grow!
Dollar Amount!
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22-30 (9 Years)!
Total Saved!
Amount Available at 65!
$4,000 annually! $0!
$0! $4,000 annually!
$36,000! $140,000!
$1,063,244! $862,843!
Contributions Made Later"
Contributions Made Early"Age"
31-65 (35 Years)!
*Assumes money earns 9% return!
The Impact of Time on Money
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Goals Are:"
• Specific !
• Measurable !
• Achievable !
• Realistic !
• Timed !
Turn Your Dreams Into Goals
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Example of a Financial Goals List
Date" Goal" Total Dollar
Amount"Target Date to be Done" Date Done"
Dollar Amount Needed "
1/1/2014" Have house down payment"
$6,000" 12/31/2017" $167/ mo. Or $42/ wk. "
1/1/2014" Sign-up for retirement savings plan "
9/15/2014" $250/ paycheck "
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a. Ask questions about benefits from future employers.
b. Set financial goals. c. Save money for retirement within two years of
graduating from college. d. More than one of the above. e. None of the above.
As a result of today’s webinar, what do you plan to do?
Time Value of Money: The Miracle of Compounding! Which Job Benefits Does YOUR
Employer Offer? As a result of today’s webinar,
what do you plan to do?
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!http://goo.gl/TuH1rW !
#UIMoney Or
#GetSavvy
@MoreThanCoupons
@ILStudentMoney
@finwellnessuie
@Pennies4Pigs
@WalletWarrior
@RetireWellUIExt
HASHTAGS
FOLLOW Tweet Chat Wednesday
@ !12:00 PM CST
!
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Register for…
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Stay in Contact with Us!
Financial Wellness!web.extension.illinois.edu/financialwellness!
Student Money Management Center!studentmoney.uillinois.edu!
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Financial Literacy Badges Program
Know the difference between Net & Gross pay.
Learn about your paycheck and other aspects of income through
the Earning Badge!
The Financial Literacy Badges Program is coordinated by USFSCO’s Student Money Management Center. Please direct any questions to [email protected]. Launch of the Financial Literacy Badges program is supported through the Financial Literacy Counts Grant from HigherOne.
More information about the Financial Literacy Badges Program can be found here: GO.UILLINOIS.EDU/FLBADGES
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Questions?
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Thank You