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TRANSCRIPT
Money Smart, Measure Smarter:
Boost Your Financial Literacy Programs &
Measure Their Impact
March 16, 2017
Today’s Speakers
Emily PlagmanProject Manager
Public Library Association
Tom ManganelloSenior Counsel
Securities and Exchange
Commission’s Office of Investor
Education and Advocacy
Today’s Agenda
• Overview of the SEC
• Investing Basics
• Investor Education Resources
• Avoiding Fraud
• Overview of PLA’s Project Outcome
• Measuring the Outcomes & Impact of Your Financial
Programming
• Announcements
• Q&A
Understanding Investing and Avoiding Fraud
Resources from the SEC
Tom Manganello March 16, 2017
Office of Investor Education and Advocacy
U.S. Securities and Exchange Commission
Public Library Association Project Outcome Webinar
SEC Disclaimer
The SEC’s Office of Investor Education and Advocacy is providing this information as a service to investors. This is not a statement of official SEC policy or a legal interpretation. If you have questions about the meaning or application of a particular law or rule, please consult with a lawyer who specializes in securities law.*
*Portions of this presentation have been adapted from a presentation of the FINRA Investor Education Foundation.
What We Will Cover
I. Overview of the SEC
II. Investing Basics
III. Investor Education Resources
IV.Avoiding Fraud
I. Overview of the SEC
SEC’s Mission
➢ Protect Investors
➢Maintain Fair, Orderly, and Efficient Markets
➢ Facilitate Capital Formation
SEC Oversees and Regulates
• 12,200 investment advisers
• 10,500 mutual funds and ETFs
• 4,500 broker-dealers
• 450 transfer agents
• 21 national securities exchanges
• 10 credit rating agencies
• 8 active clearing agencies
• 5 self-regulatory organizations
• 9,000+ reporting companies
Other SEC Responsibilities
➢ Reviews disclosures of approximately 9,000 reporting companies
➢ Conducts routine and for-cause examinations of broker-dealers and other market participants
➢ Enforces the federal securities laws. In FY 2016, collected more than $4 billion from more than 850 enforcement actions
Size of the Markets SEC Oversees
➢ $66 trillion -- assets under management of SEC-registered investment advisers
➢ $15 trillion+ -- assets under management of mutual funds
➢ $70 trillion -- annual trading volume in equity markets
Office of Investor Education & Advocacy
➢ Responds to complaints and inquiries from investors, and provides educational programs and materials
➢ Processes nearly 20,000 complaints, questions and other contacts from investors annually
➢ Investor.gov is our online resource to help investors make informed investment choices and avoid fraud
Office of Investor Education & Advocacy
Target Audiences:
• Seniors
• Military
• Millennials
• Affinity Groups
• General Population
Office of Investor Education & Advocacy
Outreach locations include:
• Libraries
• Military installations
• Schools
• Community centers
• Retirement/senior centers
• Fairs and conferences
II. Investing Basics
Saving vs. Investing
Saving:
The money you earn but don’t spend
Investing:
Making that money grow
Why You Can’t Just Stick Your Money Under the Mattress
1990 Ford MustangConvertible GT
$18,805
2017 Ford MustangConvertible GT
Premium $43,595
Source: Autotrader.com Source: Ford.com
Compound Interest
If your rate of
return is…
Start Investing Early
Investing from Age 18-27
Investing from Age 31-64
Years Contributing
10 34
Annual Contribution
$2000/year $2000/year
Total Contribution
$20,000 total $68,000 total
Avg. Annual Rate of Return
7% 7%
Value at Age 65
$337,774 $256,518
All investments have risk
Investment Risks/Returns
Stocks
Stocks, also called “equities,” give stockholders a share of ownership in a company
Benefits:
• Capital appreciation if share price rises
• Dividends if company distributes earnings to stockholders
• Ability to vote shares and influence the company
Risks:
• Share prices can decrease
• Companies can go bankrupt
• Money you invest is not federally insured
Bonds
Bonds are debt securities, similar to IOUs
Benefits:
• Predictable income stream (usually pay interest twice a year)
• Return of principal after bond matures
Risks:
• Credit risk
• Interest rate risk
• Inflation risk
• Call risk
Managing Risk
Manage risk with asset allocation and diversification
Mutual Funds and Exchange-Traded Funds
Mutual funds and exchange-traded funds pool money from many investors and invest in securities such as stocks and bonds
Why they are popular:
Risks:
Typically the same as the underlying securities
Other Products Often Marketed to Investors
Product Common Risks
Variable AnnuitiesInvestment product with insurance features to receive a stream of payments over time
Investment risk; charges for early withdrawal; complicated tax rules
Real Estate Investment Trusts (REITs)Investment product in income-producing real estate
Liquidity, share value transparency, and fees can vary among publicly traded REITs and non-traded REITs
Master Limited Partnerships (MLPs)Investment product in cash-generating assets like oil and gas pipelines
Concentrated exposure to a single industry or commodity; governance features that can favor management over investors
Exchange Traded Notes (ETNs) Unsecured debt obligations of financial institutions
Complex valuation and fees; risk of issuer default and market risk; price volatility and liquidity risk
Fees
All investments have fees
And they matter
Impact of Fees
Impact of Fees
FINRA Fund Analyzer
www.FINRA.org/fundanalyzer
III. SEC Investor Education Resources
Investor.gov
Investor.gov
Investor.gov
Investor.gov
Investor.gov
Compound Interest Calculator
Savings Goal Calculator
Investor Alerts and Bulletins
Recent Investor Alerts and Bulletins
• Robo-Advisers
• How Fees and Expenses Affect Your Investment Portfolio
• Be on the Lookout for Advance Fee Fraud
• Top Tips for Selecting a Financial Professional
• Alert for Seniors: Five Red Flags of Investment Fraud
• Crowdfunding for Investors
• Planning for Diminished Capacity and Illness
Ten Ways to Use Investor.gov
SEC.gov
SEC Publications in Spanish
Investor.gov en Español
SEC Publications
www.consumerfinance.gov/library-resources
Tips to Help Avoid Fraud
➢ Be aware of red flags and common persuasion tactics
➢ Research the financial professional
➢ Research the investment product
Red Flags of Fraud
➢ It sounds too good to be true: Any investment that sounds too good to be true probably is
➢ Pressure to buy RIGHT NOW: Don’t be pressured into buying an investment before you have a chance to investigate the “opportunity”
➢ Lack of documentation: Be skeptical of investments without documentation reflecting the promoter’s claims
Incredible Gains!
Breakout Stock Pick!
Huge Upside, No Risk!
Unsolicited Offers to Invest
➢ Investment fraudsters look for victims through social media
➢ If you receive a “can’t miss” offer from someone you don’t know, your best move may be to pass up the “opportunity”
Investor.gov
Investor.gov
Persuasion Tactics of Fraudsters
Source: FINRA Investor Education Foundation
Responding to a Sales Pitch
Sales Pitch video
Source: FINRA Investor Education Foundation
Research the Investment Professional
➢ Check whether the person is registered
➢ Check the background of the broker or investment adviser:
• Any disciplinary actions
• A history of customer complaints
• Previous employment
Investor.gov
IAPD
Research the Investment
➢ Find out whether the company is registered with the SEC – this provides access to important information about the company
➢ Investors can check EDGAR, the SEC’s online database of corporate filings
➢ Scams often involve unregistered companies
EDGAR
Stay informed and in touch…
On Twitter: @SEC_Investor_Ed
On Facebook: SECInvestorEducation
Office of Investor Education and AdvocacyU.S. Securities and Exchange Commission
100 F Street NE, Washington, DC 20549-0213
Investor Assistance: 800-732-0330 | [email protected]
Investor.gov
www.facebook.com/SECInvestorEducation
@SEC_Investor_Ed
Contact Us
SEC Outreach Contacts
Atlanta Regional Office [email protected]
Miami Regional [email protected]
Boston Regional Office [email protected]
New York Regional Office Elizabeth Goody [email protected]
Chicago Regional Office Emlee Hilliard-Smith, [email protected]
Philadelphia Regional Office [email protected]
Denver Regional Office [email protected]
Salt Lake Regional Office [email protected]
Fort Worth Regional Office [email protected]
San Francisco Regional [email protected]
Los Angeles Regional Office [email protected]
Office of Investor Education & Advocacy SEC [email protected]
What questions do you have?
Please share your questions in chat
Measuring the Outcomes
of Your Financial Programming
#ProjectOutcome
About Project OutcomeFREE for all
Public Libraries!
www.projectoutcome.org
Surveys for 7 Library Service Areas
Measuring Outcomes
Outcomes:
✓ KNOWLEDGE
✓ CONFIDENCE
✓ BEHAVIOR CHANGE
✓ AWARENESS
+ What did patrons like most?
+ What can the library do to improve?
Free Project Outcome Training Resources
• Getting Started
• Surveys
• Data Collection
• Data Analysis
• Taking Action
• From the Field
Webinar Archives
• Outcome Measurement Made Easy with PLA’s Project Outcome
• How to Successfully Roll Out Project Outcome in Your Library
Measuring Outcomes
How can library staff members know how financial
programs are impacting patrons?
Measure
Outcomes
Measuring Outcomes
Program Examples
• Money Smart
• Social Security & Retirement Planning Seminar
• Investment Resources at Your Library
• How to Protect & Grow Your Assets in Unstable Markets
• Financial Fraud Protection
• Financial Planning (personal or to start a business)
Measuring Outcomes: IMMEDIATE
KNOWLEDGE
CONFIDENCE
BEHAVIOR CHANGE
AWARENESS
Measuring Outcomes: IMMEDIATE
KNOWLEDGE
CONFIDENCE
BEHAVIOR CHANGE
AWARENESS
Measuring Outcomes: FOLLOW-UP
BEHAVIOR CHANGE:
TASK COMPLETION
USE OF SKILL
ACCESSING RESOURCES
www.projectoutcome.org
Tips for Success
Getting Survey Responses
• Be clear about why you’re surveying & how constructive
feedback will help the library
• Face-to-face with patrons increases response rate
• Keep surveys short & simple (Project Outcome model)
From the Field: One library had staff blow bubbles after a Storytime
program to keep the children engaged until the parents completed
the surveys
Tips for Success
Reduce Survey Bias
• Consistent administration
• Clear instructions
• Anonymous survey submission
• No incentives
From the Field: Project Outcome libraries reported that engaging with
patrons as “partners” has led to more constructive feedback
Tips for Success
Survey Results: What to Look For
• Examples of success (what worked well)
• Opportunities for improvement (what didn’t work)
• Suggestions for new programs/services
• Ways to improve survey administration
From the Field: Identifying quick wins with programming
improvements help build staff buy-in and future use of surveys
Tips for Success
Sharing Survey Results
• Community snapshots, not research-focused
• Be transparent about findings & methodology
• Small numbers of responses are okay
From the Field: Project Outcome libraries reported that their boards
liked the increased transparency libraries are providing when sharing
outcome data
From the Field
Somerset County Library System, New Jersey
Programs Measured
• Financial Planning for Families with Special Needs, 1/24/17
10 responses
• Foundations of Financial Literacy, 6/7/16
5 responses
• How to Make a Financial Plan, 3/18/16
12 responses
From the Field
From the Field
The library was an
undiscovered asset
(business wise) so I’m just
excited to learn about these
services.
Novel finance ideas, not just
conventional.
Liked Most For Improvement
Very good talk, not a sales
job!
Very pertinent,
knowledgeable. Made
complex issues clear, great
speaker.
Using Outcome Data
• Program Improvements
• Communication
• Strategic Planning
• Increase Funding
• Partnerships
Additional Information & Updates
#ProjectOutcome
Free Preconference at ALA Annual
Project Outcome: Simple Tools to Measure Our
True Impact on the People We Serve
Friday, June 23, 9:00 AM - 4:00 PM
Chicago, Illinois
Registration is open now!
Next Webinar – Save the Date
Using Project Outcome to Measure & Build a Better
Summer Library Program
Thursday, April 27, 2017
1-2 pm Central
Registration is open now!
www.projectoutcome.org
New Survey Portal – Coming Soon
• Surveys in the current portal will be cut off by April 30
• All historical data will be transferred to the new system
• More customization
• Ability to add up to 3 additional questions
• Customized report building
If you haven’t already…
• Sign up on the Project Outcome website
• Browse free training resources
• Join the Project Outcome Facebook group
• Follow Project Outcome on Twitter
• Continue the conversation on Community of Practice
www.projectoutcome.org
Community of Practice
www.projectoutcome.org
Thank you!
Emily PlagmanProject Manager
Public Library Association
Tom ManganelloSenior Counsel
Securities and Exchange
Commission’s Office of Investor
Education and Advocacy