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Life After Graduation

Life After Graduation. Thomas J Canale CLU , CFP. We will talk about. Accumulating Debt Budgeting Group/Company Benefits Insurance (personal and company) Salary vs. Commission Investments Overall Financial Security . Graduating Soon?. Things to think about….

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Life After Graduation

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  1. Life After Graduation Thomas J CanaleCLU, CFP

  2. We will talk about.. • Accumulating Debt • Budgeting • Group/Company Benefits • Insurance (personal and company) • Salary vs. Commission • Investments • Overall Financial Security

  3. Graduating Soon? Things to think about….

  4. Most Students accumulate… Student Loans Multiple Credit Card Debts Poor Marks on Credit Score

  5. Average Amounts of Debt • Wall Street Journal: $23,186 in Student Loans • USA Today: $3,173 in Credit Card Debt • Average credit card interest rate is 27.88% • $475.95 of the average credit card debt is interest • Over 78% of College Students have at least one credit card Wall Street Journal – Sept. 4, 2009 USA Today - April 13, 2009 Creditcards.com survey 2010 Nellie Mae - 2009

  6. Plus expenses after college… • House Payments/Rent • Car Payments/Car Insurance • Health/Dental Insurance • Utility and Cable Bills • Cell Phone Bills • Groceries • Gas • Entertainment

  7. Managing your money • Step 1: Identify your goals. Long or Short • Step 2: Record your income. Variable and Fixed • Step 3: Collect and calculate your expenses • Step 4: Determine Need vs. Want • Step 5: Develop a savings plan for your budget • Step 6: Implement and MAINTAIN a plan

  8. Example Budget

  9. Group Benefits • Life Insurance • Short-term Disability • Long-term Disability • Vision • Dental • Health • 401k

  10. 401k or IRA’s • Do not touch your account until you reach the age of 59 ½ • 10% penalty fee plus taxes if taken out before then • For 401k’s ONLY: Companies usually match a portion of your contribution

  11. Employer Taxes • 1099 • Independent Contractors • W-4 • Determining how much Federal and State taxes to take out during that year • W-2 • Breakdown of what you earned that year and what was withheld for taxes

  12. Benefits: Company vs. Self-employed • Company • Provided for you • Self Employed • Must research the best plan that fits your needs

  13. Salary • Pro’s: • Constant/consistent income • Easier to budget • Con’s: • No overtime pay • Smaller annual increases (if any) • Usually 45+ hours worked per week

  14. Commission • Pro’s: • Virtually unlimited income potential • Pay for performance • Flexible work schedule • No risk of downsizing • Con’s: • Variable pay • Harder to budget

  15. Investments • Cash • Bonds • Less risky, guaranteed payback with interest • Stocks • Involves more risk, but higher payout potential • Mutual Funds • Combining a diverse group of companies

  16. Overall Financial Security • Be aware that a loan and a credit card is BORROWED money • Start budgeting and saving early in your career (the earlier the better) • Be aware of future expenses • Save first and spend last • Determine the best insurance plan to fit your needs • Find out what compensation suits you • Always assess the needs of you and your family first

  17. ON A SIDE NOTE…..Northwestern Mutual’s Internship Program • Actual business experience for your resume • Opportunities to develop yourself and others • Flexible work schedule • Assists with career selection process • “Head start” program for the Northwestern Mutual Financial Network career

  18. Capital Fellows Programs Deloitte LLP Gamin International Google, Inc. J.P. Morgan’s Investment Bank NASA Nickelodeon Animation Studios Northwestern Mutual Financial Network Smithsonian Institution The Boston Consulting Group One of “America’s Top 10Internships" for 15 consecutive years -Vault Guide to Internships, 2011 edition

  19. Compensation • Interns have an opportunity to earn up to $2,000 per stipend period (summer, fall, spring) in addition to commissions. • Bonuses are available during each internship period. • The internship program can provide a solid base for those who choose to pursue a full-time contract after graduation

  20. Contact us for more information Thomas J Canale Tom.canale@nmfn.com 773-380-4019 Visit us at northwesternmutual.com

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