Money Smart, Measure Smarter: Boost Your Financial Literacy Programs & Measure Their Impact. March 16, 2017

Transcription

1 Money Smart, Measure Smarter: Boost Your Financial Literacy Programs & Measure Their Impact March 16, 2017

2 Today s Speakers Tom Manganello Senior Counsel Securities and Exchange Commission s Office of Investor Education and Advocacy Emily Plagman Project Manager Public Library Association

3 Money Smart Week April 22-29,

4 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

5 Understanding Investing and Avoiding Fraud Resources from the SEC Office of Investor Education and Advocacy U.S. Securities and Exchange Commission Public Library Association Project Outcome Webinar Tom Manganello March 16, 2017

6 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.

7 What We Will Cover I. Overview of the SEC II. Investing Basics III. Investor Education Resources IV.Avoiding Fraud

8 I. Overview of the SEC

9 SEC s Mission Protect Investors Maintain Fair, Orderly, and Efficient Markets Facilitate Capital Formation

10 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

11 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

12 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

13 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

14 Office of Investor Education & Advocacy Target Audiences: Seniors Military Millennials Affinity Groups General Population

15 Office of Investor Education & Advocacy Outreach locations include: Libraries Military installations Schools Community centers Retirement/senior centers Fairs and conferences

16 II. Investing Basics

17 Saving vs. Investing Saving: The money you earn but don t spend Investing: Making that money grow

18 Why You Can t Just Stick Your Money Under the Mattress 1990 Ford Mustang Convertible GT $18,805 Source: Autotrader.com 2017 Ford Mustang Convertible GT Premium $43,595 Source: Ford.com

19 Compound Interest If your rate of return is

20 Start Investing Early Years Contributing Annual Contribution Total Contribution Avg. Annual Rate of Return Value at Age 65 Investing from Age $2000/year Investing from Age $2000/year $20,000 total $68,000 total 7% 7% $337,774 $256,518

21 All investments have risk

22 Investment Risks/Returns

23 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

24 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

25 Managing Risk Manage risk with asset allocation and diversification

26 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

27 Other Products Often Marketed to Investors Product Variable Annuities Investment product with insurance features to receive a stream of payments over time Real Estate Investment Trusts (REITs) Investment product in income-producing real estate Master Limited Partnerships (MLPs) Investment product in cash-generating assets like oil and gas pipelines Exchange Traded Notes (ETNs) Unsecured debt obligations of financial institutions Common Risks Investment risk; charges for early withdrawal; complicated tax rules Liquidity, share value transparency, and fees can vary among publicly traded REITs and non-traded REITs Concentrated exposure to a single industry or commodity; governance features that can favor management over investors Complex valuation and fees; risk of issuer default and market risk; price volatility and liquidity risk

28 Fees All investments have fees And they matter

29 Impact of Fees

30 Impact of Fees

31 FINRA Fund Analyzer

32 III. SEC Investor Education Resources

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34 Investor.gov

35 Investor.gov

36 Investor.gov

37 Investor.gov

38 Investor.gov

39 Compound Interest Calculator

40 Savings Goal Calculator

41 Investor Alerts and Bulletins

42 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

43 Ten Ways to Use Investor.gov

44 SEC.gov

45 SEC Publications

46 SEC Publications in Spanish

47 Investor.gov en Español

48 SEC Publications

49 IV. Avoiding Fraud PSA video

50 Tips to Help Avoid Fraud Be aware of red flags and common persuasion tactics Research the financial professional Research the investment product

51 Red Flags of Fraud It sounds too good to be true: Any investment that sounds too good to be true probably is Incredible Gains! Breakout Stock Pick! Huge Upside, No Risk! 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

52 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

53 Video

54 Investor.gov

55 Investor.gov

56 Persuasion Tactics of Fraudsters Source: FINRA Investor Education Foundation

57 Responding to a Sales Pitch Sales Pitch video Source: FINRA Investor Education Foundation

58 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

59 Investor.gov

60 IAPD

61 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

62 EDGAR

63 Stay informed and in touch

64 Whistleblower s Office

65 On

66 On Facebook: SECInvestorEducation

67 Contact Us Office of Investor Education and Advocacy U.S. Securities and Exchange Commission 100 F Street NE, Washington, DC Investor Assistance: help@sec.gov Investor.gov Outreach@SEC.gov

68 SEC Outreach Contacts Atlanta Regional Office Boston Regional Office Chicago Regional Office Emlee Hilliard-Smith, Denver Regional Office Miami Regional Office New York Regional Office Elizabeth Goody Philadelphia Regional Office Salt Lake Regional Office Fort Worth Regional Office Los Angeles Regional Office San Francisco Regional Office Office of Investor Education & Advocacy SEC Headquarters

69 What questions do you have? Please share your questions in chat

70 #ProjectOutcome Measuring the Outcomes of Your Financial Programming

71 About Project Outcome FREE for all Public Libraries!

72 Surveys for 7 Library Service Areas

73 Measuring Outcomes Outcomes: KNOWLEDGE CONFIDENCE BEHAVIOR CHANGE AWARENESS + What did patrons like most? + What can the library do to improve?

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75 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

76 Measuring Outcomes How can library staff members know how financial programs are impacting patrons? Measure Outcomes

77 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)

78 Measuring Outcomes: IMMEDIATE KNOWLEDGE CONFIDENCE BEHAVIOR CHANGE AWARENESS

79 Measuring Outcomes: IMMEDIATE KNOWLEDGE CONFIDENCE BEHAVIOR CHANGE AWARENESS

80 Measuring Outcomes: FOLLOW-UP BEHAVIOR CHANGE: TASK COMPLETION USE OF SKILL ACCESSING RESOURCES

81

82 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

83 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

84 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

85 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

86 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

87 From the Field

88 From the Field Liked Most For Improvement Very good talk, not a sales job! Novel finance ideas, not just conventional. Very pertinent, knowledgeable. Made complex issues clear, great speaker. The library was an undiscovered asset (business wise) so I m just excited to learn about these services.

89 Using Outcome Data Program Improvements Communication Strategic Planning Increase Funding Partnerships

90 #ProjectOutcome Additional Information & Updates

91 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!

92 Next Webinar Save the Date Using Project Outcome to Measure & Build a Better Summer Library Program Thursday, April 27, pm Central Registration is open now!

93 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

94 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

95 Community of Practice

96 Thank you! Tom Manganello Senior Counsel Securities and Exchange Commission s Office of Investor Education and Advocacy Emily Plagman Project Manager Public Library Association