Embed Size (px)
Citation preview
WelcomeFour Steps to Financial Success
Financial Management for 1099’s
FocusOn®
DisclosureNorthwestern Mutual Financial Network
Northwestern Mutual Financial Network is the marketing name for the sales and distribution arm of The Northwestern Mutual Life Insurance Company (NM), Milwaukee, WI (life insurance, annuities, and disability income insurance) and its subsidiaries and affiliates. Securities offered through Northwestern Mutual Investment Services, LLC (NMIS), a wholly owned company of NM and a member of the NASD and SIPC. Northwestern Long Term Care Insurance Company, Milwaukee, WI (long-term care insurance), a subsidiary of NM.
Introduce
Educate
Illustrate
Workshop Objectives
6 Steps to Financial SuccessSteps toFinancial Success
1. PROTECT WHAT YOU HAVE
2. TAKE CONTROL OF YOUR CASH FLOW
3. INVEST WISELY
4. MANAGE YOUR TAXES
4
Top Insurance Concernsfor Individuals
1. Medical insurance
2. Disability income insurance
3. Life insurance
PROTECT WHAT YOU HAVE
Medical Insurance Maze
Individual v. Group coverage
PPO v. HSA– HSA = No copay– HSA = contribute pre-tax dollars into a tax-
free savings account for medical expenses or retirement
Deductible– Higher deductible = lower monthly payment
The Golden Goose or the Egg?
What is your most important asset?– Home? Car? 401(k)? . . . YOU!
Can it happen to you?– 1 in 3 – A disabling injury occurs every 1.5 seconds
Employer disability insurance – unknown facts– Can you live on 35% of your income?– 2 years, sweep floors, fired, can’t save for retirement
1. How much do I need?
2. What type of policy?
3. Who gets the money?
Three CriticalLife Insurance Questions
PROTECT WHAT YOU HAVE
6 Steps to Financial SuccessSteps toFinancial Success
1. PROTECT WHAT YOU HAVE
2. TAKE CONTROL OF YOUR CASH FLOW
3. INVEST WISELY
4. MANAGE YOUR TAXES
4
Cash Management Process
TAKE CONTROL OF YOUR CASH FLOW
1. Assess your current situation
2. Build a cash reserve
3. Pay down your credit cards
6 Steps to Financial SuccessSteps toFinancial Success
1. PROTECT WHAT YOU HAVE
2. TAKE CONTROL OF YOUR CASH FLOW
3. INVEST WISELY
4. MANAGE YOUR TAXES
4
Three Buckets of Money
Short-term
Mid-term
Long-term
Long-Term Bucket
Make Grow Take Rules Volatile
__ __ 59 ½, 15k
Tax + 10%,
Yes
__ __ 59 ½, 45k, Tax + 10%
Yes
Any Amount
Yes
__ __ Any Amount
No /Yes
401(k)
SEP
Mutual Funds
Life Insurance
6 Steps to Financial SuccessSteps toFinancial Success
1. PROTECT WHAT YOU HAVE
2. TAKE CONTROL OF YOUR CASH FLOW
3. INVEST WISELY
4. MANAGE YOUR TAXES
4
Taxes Are Not Equal
Source: Joint Economic Committee, U.S. Congress, 2004
53.8% of federal income taxes
are paid by the wealthiest 5% of taxpayers.
The wealthiest 5% are households with over $126,525 in adjusted gross income.
53.8%
MANAGE YOUR TAXES
Source: Congressional Joint Economic Committee, 2003
The top 25% are households with adjusted gross incomes over $56,085.
The top 25% of taxpayers pay
83% of all federal income
taxes.
83%
Taxes Are Not Equal
6 Steps to Financial Success
1. PROTECT WHAT YOU HAVE
2. TAKE CONTROL OF YOUR CASH FLOW
3. INVEST WISELY
4. MANAGE YOUR TAXES
Steps toFinancial Success4
Where Do You Go from Here?
Complimentary consultation
Thank You Thank You
