Women and Money Presented by Joyce Lash Family Resource Management Field Specialist 641-464-5003...
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Transcript of Women and Money Presented by Joyce Lash Family Resource Management Field Specialist 641-464-5003...
Women and MoneyPresented by
Joyce LashFamily Resource Management Field Specialist
641-464-5003 [email protected]
Understanding Family Living Costs– Integrated into the Farm Spending
Plan– Realistic– Based on actual spending
How do you compare?
• Region 18 2007 - $30,084• State of Iowa 2007 - $34,916 ISU Extension – Economic Profiles
• Illinois 2007 - $60,294• Minnesota 2008 - $80,728• Nebraska 2008 - $66,126
Non-Farm Families
• Iowa 2008 - $48,108• Bureau of Labor Statistics 2009 Midwest $46,551
US Average $49,067
Budget Suggestions
• ISU - 10% of farm income be allocated for family living expenses
• 10-15% of the profit be set aside for non-essential purchases
Monitor Family Living Costs
• Record and stay current on expenses–Account for cash as well as
recorded spending–Compare actual costs to
projected costs and make adjustments early!
–Build in cost of replacing major household items
Impact of Inflation
• In 2008 the cost of goods rose 3.8%– Clothing costing $1,200 in 2007
would cost you $1,246 in 2008• In 2009 the cost of goods
rose .25%• In 2010 the cost of goods rose
1.6%• Financial Planners typically use
3.5% to reflect the increase in cost of expenses
1. Organize Your Financial Information2. Laying the Groundwork3. Debt Management and Credit Considerations4. Finding Money to Invest5. Determine Your Asset Allocation and Risk Tolerance6. Evaluation Investment Products and Agricultural
Oriented Alternatives7. Evaluating Financial Service Providers and
Information Services8. Investing for Retirement and Estate Planning
11 Supplemental Units
Family Financial Snapshot
Farm Assets• Crops• Livestock• Prepaid Expenses• Feed on Hand• Supplies-Tools• Accounts Receivable• Machinery• Farm Land• Buildings and Improvements• Contracts and Loans• Securities, Certificates
Personal Assets• Checking• Savings• Money Market Accounts• CD’s• Home and Household Items• Personal Accounts
– 401(k)– Stocks and Bonds
• Insurance• Jewelry and collectibles• Personal Vehicle
Asset AllocationHigh Risk• Crops• Livestock• Prepaid Expenses• Feed on Hand• Supplies-Tools• Accounts Receivable• Machinery• Farm Land• Buildings and Improvements• Contracts and Loans• Securities, Certificates• Home and Household Items• Personal Accounts
– 401(k)– Stocks and Bonds
• Jewelry and collectibles• Personal Vehicle
Low Risk
• Checking• Savings• Money Market
Accounts• CD’s• Insurance
The Three Legged Stool
1. Social Security is projected to cover approximately 60% of your income needs
2. Farm Income?3. Retirement Accounts
Retirement Accounts
• Work -401(k) or Pension• Simple, Keogh, SEP• Traditional IRA or Roth IRA• Annuities• CD’s• Money Market Account
Credit Reports
• Check annually• www.annualcreditreport.co
m• Monitor and make
corrections