Women and Money Presented by Joyce Lash Family Resource Management Field Specialist 641-464-5003 [email protected].

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

Wealth Management

Balancing Farm Investments with Non-Farm Investments

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

Asset Allocation

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

Questions/ Thoughts

Women and Money

Thanks You!

Joyce Lash Family Resource Management

[email protected] 641-464-5003