hickam air force base financial management. brian s.c. ching senior vice president financial advisor...
TRANSCRIPT
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Hickam Air Force Base
Financial Management
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Brian S.C. ChingSenior Vice President
Financial Advisor
Wedbush Morgan Securities(808) 532-9292
* This information is provided for compliance purposes, only, and is not intended to be a solicitation.
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Hickam Air Force Base - Financial Management
Why Do We Need Money? Tripling Effect Savings – Start Early Debt Management Create A Budget Types of Investment Accounts
Wedbush Morgan Securities and its representatives are not tax advisors. The information presented is deemed reliable but not guaranteed to its accuracy. Please consult your tax advisor for details and your personal tax implications before investing.
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Hickam Air Force Base - Financial Management
Why Do We Need Money?
Essentials: Food, Clothes, Home, etc. Luxuries: Travel, Cars, Electronics, Sports
Activities, etc.
Savings for the Future: Retirement, Children,
Education, Home Purchase, etc.
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Emergency Savings and Benefits
3-6 Months of Expenses
Benefits
Medical
Dental
Vision
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Hickam Air Force Base - Financial Management
Tripling Effect – Cost of Living
Postage Stamp $0.13 - $0.44Bus Fare $0.25 - $2.25Pay Phone $0.10 - $0.50
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Hickam Air Force Base - Financial Management
Savings - Starting Early
$100 per month @ 10% for 10 years = $20,146
$100 per month @ 10% for 20 years = $72,399
$100 per month @ 10% for 30 years = $207,929
$ 0 per month @ 10% for 30 years = $0
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Financial Markets1925 - 2008
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Hickam Air Force Base - Financial Management
Debt Management
Credit CardsWhen Is Debt OK?Bad Credit and Bankruptcy
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Hickam Air Force Base - Financial Management
Create A Budget
Know Where Your Money Is GoingLive Within Your Means
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1001 Bishop StreetPauahi Tower, Suite 650Honolulu, HI 96813
Date __________________ 800-354-8009 808-532-9699 Fax
Brian S.C. Ching, Financial AdvisorVice PresidentRetirement Planning Specialist808-532-9292 808-221-3592 Cellular
Budget Worksheet for
INCOME: Primary Individual's Income $Secondary Individual's IncomeRental IncomeOther IncomeTotal Income (A) $
EXPENSES: Mortgage (Rate: _____% - Var. or Fixed / _____ Years Remaining) $Maintenance FeesRentCar Loan (Rate: _____% - Var. or Fixed / _____ Months Remaining)Personal Loan (Rate: _____% - Var. or Fixed / _____ Months Remaining)Personal Loan (Rate: _____% - Var. or Fixed / _____ Months Remaining)Credit Cards (Rate: ________% - Var. or Fixed)Credit Cards (Rate: ________% - Var. or Fixed)Credit Cards (Rate: ________% - Var. or Fixed)TelephoneElectricityWaterGasCableCellular PhonePagerCar InsuranceGasolineFoodHousehold SuppliesEntertainmentClothingLife InsuranceMiscellaneousMiscellaneousMiscellaneousTotal Expenses (B) $
Net Cash Flow Before Savings (A - B) $
Allowance for Savings (C) $
Excess Cash Flow for Personal Spending (A - B - C) $
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Hickam Air Force Base - Financial Management
Types of Investment Accounts
PersonalEmployer Sponsored Retirement PlansIndividual Retirement Accounts (IRAs) –
Traditional and RothEducation Savings Plan529 PlanInsurance
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Employer Sponsored Retirement Plans
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Thrift Savings Plan (TSP), 401(k) Plans, 403(b) Plans, SEP, Deferred
Compensation, Profit Sharing, Money Purchase Plan, . . .
Tax Deferral Employee Elective Deferral Matching Contributions Employer Contributions Loan Provisions
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Traditional IRA vs. Roth IRA(Individual Retirement Accounts)
Traditional IRA
Annual Contributions - Tax Deductible $5,000 Max. Starting in 2008
Catch-Up Provision
Tax Deferred Growth
Roth IRA
Annual Contributions - Not Tax Deductible $5,000 Max. Starting in 2008
Catch-Up Provision
Tax Deferred Growth
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Traditional IRA vs. Roth IRA(Individual Retirement Accounts)
Traditional IRA
Withdrawal - after age 59½
Taxable
Roth IRA
Withdrawal - after five years
and age 59½
Tax-Free
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Roth IRAWithdrawals
Roth IRA
Withdrawal - prior to age 59½ Taxed and 10% penalty, except:
First time home purchase Qualified higher education expenses Catastrophic Medical Expenses Payment of Medical Insurance Premiums
during periods of unemployment Substantially equal, periodic payments
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Education Savings Plan Annual Contributions - Not Tax Deductible
$2,000 Maximum Annual Contribution Up to Beneficiary’s 18th birthday
Tax Deferred Growth
Tax-Free Withdrawals Qualified elementary, secondary, and higher
education expenses
Withdrawal - other than for education Taxed and 10% penalty Must be withdrawn by Beneficiary’s 30th birthday
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529 Plan
Contributions - Not Tax Deductible Up to $65,000 Per Contributor or $130,000 for a
Married Couple
Tax Deferred Growth
Tax-Free Withdrawals
Withdrawal - other than for education Taxed and 10% penalty May change Beneficiary and Participant
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Insurance
Replace Lost Income Stream
Provide Financial Security
Protect Assets
Term vs. Whole Life
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Taxed Growth vs. Tax-Free GrowthAssumed Annual Growth: 10%
Note: These figures are only estimates and do not represent any particular investment.
$8,033.89
$13,455.00
0
2000
4000
6000
8000
10000
12000
14000
16000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Years Invested
Val
ue
Taxed GrowthTax-Free Growth
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Taxed Growth vs. Tax-Free GrowthAssumed Annual Growth: 20%
Note: These figures are only estimates and do not represent any particular investment.
$29,481.56
$76,675.20
0
1000020000
3000040000
5000060000
7000080000
90000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Years Invested
Val
ue
Taxed GrowthTax-Free Growth
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Stocks
Bonds
CDs
Mutual Funds
SavingsTradi
tiona
l IRA
Tradi
tiona
l IRA
Roth IRA
Roth IRA
Inve
stmen
t
Acct
Education Acct
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You Can Be Young Without Money, But You Can’t Be Old Without It.
Tennessee Williams