2013 Issue 1

E X C L U si V e L Y

f O R

P R ime R ica

C L ien T s

Money Talks Can Protect Your Marriage

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Did you know?
In a recent survey, 20% of divorced or separated people discovered their spouse had a low credit score, and 13% uncovered a huge debt load.1

Are you keeping money secrets? If so, you could be putting your marriage in jeopardy! Money dishonesty can seriously hurt your relationship. Schedule time with your spouse to discuss these key areas:
Spending Habits. A shocking 30% of adults admit they have lied about money to their spouse including hiding purchases.1 Everyone needs some personal spending money, but if you are regularly hiding purchases or lying to your spouse about spending, consider the long-term negative effects it could have on your relationship. Credit Card Debt. Do you have credit card debt you are hiding from your spouse? If so, schedule time ASAP to discuss it with your spouse and come up with a plan to pay it off. Your Primerica representative can help you gain control and get on the path to financial freedom. Monthly Budget. Planning and sticking to a household budget is the first step in taking control of your joint finances. Many experts recommend the following breakdown: 35% housing (mortgage, rent, utilities, insurance); 20% transportation (car payments, insurance, repairs, gas) 15% debt (credit cards, student loans, tax and medical); 20% other (food, clothing, entertainment, childcare, charity); 10% savings (pay yourself first!).
1 Money, July 2012 2 Ibid 3 Money, December 2011

20%

Long-term Financial Goals. This includes saving for things like education for the kids and retirement. At what age do you hope to retire? A whopping 62% of couples dont agree on their expected retirement age.2 Get on the same page so you can start saving now and reach your goals. Other Existing Debt. Do you or your spouse have any outstanding loans you have not discussed (including personal loans, or loans owed to family members?). If so, now is the time to share that information. Can it be tough to talk money with your spouse? Sure! Nine out of 10 married people say they avoid it.3 But sitting down to discuss finances regularly is one of the best moves you can make to protect your marriage! To get started, contact your Primerica Representative and ask for a free, confidential Financial Needs Analysis. Its a great way to sit down with your spouse and start a conversation about your shared finances and lay the groundwork for a happy future!

1Half of Divorced Couples Blame Financial Infidelity For Uprooting Their Marriage, Businessinsider.com, May 23, 2012

INSIDE
Financially Stressed? What Counts as an Emergency? How to Save More This Year

solutions

Did you know?

Two out of three Americans report feeling stressedand list their nancial situation as the main contributing factor.1 Here are some moves you can make to feel better about your nances this year.
Meet with your Primerica representative regularly. A recent survey showed that people who work with a financial services professional are more than twice as likely to feel comfortable with their current financial situation as those who do not.2 Ask your representative for a free, updated Financial Needs Analysis (FNA). It can help you see if you are on track to meet your financial goals. Know your number. How much do you need to save in order to retire? People who have calculated that number have saved more than those who have not.3 Yet, just 42% of workers have done the math!4 Own life insurance. People who do not own life insurance are 45% more likely to feel highly stressed than those who do.5 Even among those who do own it, 43% say they probably dont have enough.6 Your Primerica representative can help you determine the right amountand with low-cost term insurance, its cheaper than you think to put your mind at rest!
1 Americans Worry About Finances, Do Little About Them, FA News, July 17, 2012 2 Ibid 3 Money, July 2012 4 Ibid 5 Americans Worry About Finances, Do Little About Them, FA News, July 17, 2012 6 Ibid

Make These Moves!

Financially Stressed?

Top Money Lies

(in order)
1. Hiding a purchase 2. Secretly lending money to a family member 3. Credit card debt 4. Credit card purchases
Couples Fess Up to How Often They Lie About Money, Businessinsider. com, October 26, 2012

58%
Quick Tip:
Couples who take the time to regularly discuss money do better financially!
Money, December 2011

44%

Ready for Retirement?

Just 44% of women have estimated their retirement expenses, compared to 58% of men.
Money, July 2012

Make Good Intentions Automatic

Did you know that many retirement plans allow you to automatically increase your savings percentage each year to allow for raises? This is a great way to force yourself to save more each year. Look at the difference an increase of 1% each year could make!
Value after 35 years, starting at $65,000 gross pay and $20,000 balance1

Do You DollarCost Average?

If not why not? When you dollar-cost average, you invest a set amount of money on a regular basis, regardless of whether prices are up or down. This approach forces you to buy more of a security when its cheap.1 Saving in this manner minimizes risk and keeps you on a steady path. 2,3
1 Kiplingers, November 2012 2 Business.time.com, November 15, 2012 3 Dollar-cost averaging is a technique for lowering average cost per share over time. Dollar-cost averaging cannot assure a profit or protect against a loss in declining markets. Investors should consider their ability to continue to invest in periods of low-price levels.

Constant 3% rate 2

$1.06 million $1.85 million

Increases 1% each year (3% year one, 4% year two, etc.) 3

1 Assumes 3% raises, 7% nominal rate of return, compounded monthly 2 Includes company match of 3% 3 To maximum of 13% (10% + 3% company match)

their partner (includes hiding purchases).

Money, July 2012

30% $750
Adults who have lied about money to Amount consumers plan to spend over the holidays (including gifts, cards, food/candy & decorations.)
National Retail Federation, www.nrf.com, October 17, 2012

What Counts as An Emergency?

You know you need to create an emergency fundfor lifes unexpected expenses but what counts as an emergency?
The idea is to use this account only for truly unexpected expenses such as car and home repairs. Regular purchases like clothes and food do not count. The purpose of the fund is to prevent you from having to use your credit card. With a proper emergency fund (three to six months income) you should not need to use your credit card for unexpected expenses.

Did you know?

People who work with a financial services professional are more than twice as likely to feel comfortable with their current financial situation as those who do not.
Americans Worry About Finances, Do Little About Them, Financial Advisor, July 17, 2012

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Save More This Year

Did you know that 40% of Americans have $500 or less in savings,1 and 45% of Canadians have no emergency savings.2 Are you disappointed in your cash stash? Here are some strategies to help you raise the funds:
Group Your Goals. What do you want to achieve financially this year? Studies show that people who set fewer, more integrated goals save nearly five times as much as those who set many unrelated ones.3 To make them stick, try putting three main goals under an umbrella theme. For example, saving for retirement, education and an emergency fund could go under the theme improving our financial security. Make It Tangible. If you really want to reach your goals, take steps to make them tangible. For example, people who label their savings accounts with specific goals put away 31% more than those who dont.4 Similarly, try using a picture as a reminder of what (or who) you are saving for and keep it in your wallet or on your computer as a reminder. Do you already have funds automatically deducted from your paycheck for your 401(k)? Why not try the same approach when it comes to your other savings goals such as college savings and emergency fund? Fewer than 40% of savers do this.5 When the money doesnt appear in your account, you are less likely to spend it.

How to

Securities offered by PFS Investments Inc., Duluth, GA 30099. Primerica and PFS Investments Inc. are affiliate companies. In Canada, mutual funds offered through PFSL Investments Canada Ltd, Mutual Fund Dealer 2000 Argentia Road, Plaza V, Ste. 300, Mississauga, ON L5N2R7. 1Survey: 40 Percent of Americans Have $500 or Less in Savings, www.philadelphia.cbslocal.com, October 19, 2012 2 45% of Canadians Have No Emergency Savings, The Canadian Press, August 13, 2012 3 Money, July 2012 4 Ibid 5 Ibid
2013 Primerica /A8872 / 45266 / 1.13 / 12PFS649-2

Autopilot Your Savings.

www.primerica.com

solutions
Contact your Primerica representative for an updated Financial Needs Analysis. Its free, condential, and it could change your life!