food & finance - financial boot camp for women

Financial Boot Camp for Women (and Men too!)

Food & FinancePresented by: Beacon Wealth Management@BeaconWealth

On Tuesday, March 18, 2014,

16 women and 13 men gathered for “Food &

Finance” our 2nd Financial Boot Camp for

Women session at Le Gourmet Factory

Cooking School in Englewood, NJ.

Who says finance has to be a snoozefest?

Not I.

@tinacpowell

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Important DisclosureEverything in this presentation today is intended to be educational in nature, and hopefully will assist you in reaching your financial goals. However, it is all general in nature, and not specific to any of you or your circumstances.Nothing we say here today can replace real investment advice that is rendered after a thorough review of your financial situation.

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According to testimony before a House Financial Services subcommittee on March 24, 2010, FICO scores are used in

about 10 billion decisions worldwide each year.

Source: http://archives.financialservices.house.gov/media/file/hearings/111/quinn_testimony.pdf

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A credit score represents the likelihood that person will pay his or her debts.

0 FICO stands for Fair, Isaac, and Company (1989)

0 FICO is the best known and most widely used credit score model in the United States

0 FICO model is used by credit reporting bureaus such as Experian, Equifax, and TransUnion to produce FICO score

Source: http://en.wikipedia.org/wiki/Credit_score_in_the_United_States

FACT Act – Fair and Accurate Credit

Transactions Act

Each U.S. resident is entitled to a free report every 12

months.

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The FICO score is a three digit number ranging from 300 - 850.

300

Low Score

850

High Score

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The U.S. average credit score is 687.

Minnesota's average score of 718 tops Experian's most recent list. The U.S. average is 687, with southern states typically reporting lower scores.

Source & Link: http://www.governing.com/gov-data/economy-finance/average-credit-score-by-state.html

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In addition to lending decisions, credit is used for insurance and employment approvals.

Lending

Source: http://banking.about.com/od/creditscoresandreporting/a/whatiscredit.htmImage Source: http://www.texascooking.com/features/april2009-homemade-mayonnaise.htm

Insurance Employment

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What information is not considered by the FICO scoring model?

a) Name of your last employerb) Requests by consumers for their own credit reportc) Interest rate being charged on other accountsd) The value of your assetse) None of the above

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To calculate that score, FICO considers five different factors:

Source: http://archives.financialservices.house.gov/media/file/hearings/111/quinn_testimony.pdfImage Source: http://dietsinreview.s3.amazonaws.com/diet_column/wp-content/uploads/2013/10/DONUTS1.jpg

Payment history

35%

Amounts owed30%

Length of credit history

15%

Pursuit of new credit

10%

Mix of credit 10%

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There is no quick fix for bad credit scores.

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A few guidelines that will very likely impact a consumer’s score in a positive way.

1. Pay your bills on time – consistently.

2. Keep credit card balances low.

5. Be patient – demonstrate your responsible credit habits over time.

4. Check your credit report to ensure its accuracy.

3. Don’t open new credit accounts you don’t need.

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Don’t wait. Now is a perfect time to get credit smart. 3 Great Resources

Federal Trade Commission

http://www.consumer.ftc.gov/articles/0058-credit-repair-how-help-yourself

Credit Repair: How to Help Yourself and know your rights.

Credit Karma™

www.creditkarma.com Free web-based credit and financial management service for U.S. customers.

LifeLock® www.lifelock.com American identity theft protection company which also guards against credit fraud.

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Empowering and informative programs for women. Join us for future events or host your own!Please email tina@bwmllc.comTina Powell, Director of Business Management

Mark Germain, CFP®, MBA, ADPA®and Tina Powell

LinkedIn www.linkedin.com/in/mark-germainwww.linkedin.com/in/tinapowell

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We appreciate your generous participation this evening. We give special thanks to TD Ameritradeand to Nick Prastos, Chef Galit Aboodi, and Alison Gray of Le Gourmet Factory.