Education? Proven results for employer and employee! Why Adult Financial Literacy Education, and Why Now?

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1 Financial Education and Retirement Institute, Inc. Education Creating Positive Financial A Not For profit corporation dedicated to financialchange literacy and retirement education Why Workplace Financial Literacy Education and Retirement Education? Proven results for employer and employee! This is a must read if you are a... Human Resource Manager Employee Benefits Manager Company President or CEO Chief Financial Officer Why Adult Financial Literacy Education, and Why Now? v Additional fiduciary protection under Department of Labor ERISA rules v Little or no cost to your company. v Numerous employee and company benefits. v Professional and timely education. v The real question is "why would we not do this for our employees?" Call today to learn more about our workplace financial education programs, how they might be structured at your company, and the many benefits. (901) info@financialedinstitute.org

2 What is being said about workplace financial education? In a 2012 survey by SHRM, the Society for Human Resource Management, when HR professionals were asked "in the last 12 months, have employees been more likely to dip into their employer sponsored retirement savings plans more than in previous years," an astonishing 72% either agree or strongly agree. From the same survey, 83% of HR professionals indicated that personal financial challenges have a large or some impact on employee work performance. Ability to focus on work (47%) and overall stress (46%) were reported to be the employee performance aspects most negatively affected. Only 52% of organizations in 2001 offered any kind of employee financial education, unfortunately down from the 2009 level of 64%. From the same survey, a shocking 98% of HR professionals responded that employee financial challenges impact work performance varying from slight to large. The most significant were ability of the employee to focus on work; overall employee stress; overall employee productivity; employee absenteeism or tardiness; overall employee morale; and overall employee health. A 2014 white paper from the University of Wisconsin Cooperative Extension summarized that many employers are motivated to offer financial education in the workplace. However, most employers only offer information on the employer sponsored retirement plan, such as a 401K or 403B, rather than overall retirement planning, risk management, investments. The paper points out the many benefits to both the employer and the employee, as well as access to fundamental education for all aspects of retirement planning, and basic education for family budgeting, banking accounts, insurance needs, income planning, risk management, and managing credit and credit card debt. A 2009 report by the Federal Reserve Bank of Kansas City cites that workplace financial education is appropriate for adult learners. Companies benefit from providing the education, and employees along with their families benefit from direct financial education and access to financial professionals. Financial literacy expert Annamaria Lusardi writes in her blog that "American workers spend an average of 28 hours a month researching personal financial issues. This lost productivity across an organization can be translated into real dollars - as much as $5,000 per employee per year. The collective loss across an organization can quickly have a significant negative impact on the financial performance of the company.

3 COMPANY BENEFITS <<WIN-WIN>> EMPLOYEE BENEFITS Taking advantage of the many company benefits:¹ ü Reduce ERISA fiduciary risk. Employees who make informed decisions in connection with pension and 401k plans are less likely to make claims under ERISA. ü Reduce Reputational Risk. Employees who feel their employer is concerned with their financial health and well being are much less likely to voice negative opinions about their employer. ü Increase Savings. Employees with access to professional financial education or planning resources are more likely to take advantage of flexible spending accounts and other programs that reduce the employers payroll taxes. ü Increase Retention, Less Turnover. Employees who feel their employer cares about their personal financial health are less likely to leave. ü Increase ROI. Financial education results in an ROI of up to 3:1 with results like increased productivity, reducing direct costs, and increasing effectiveness of benefit programs. Sixty five percent of employers said that employees are less productive at work when worried about personal financial issues. ü Reduce employee stress and allows better workforce planning, less attrition, less absenteeism. ü Increase employers ability to attract and retain satisfied employees. Employee Benefits Financial Education and Retirement Institute: As founders of the Financial Education and Retirement Institute, it is our strong belief that the majority of our citizens need a tremendous amount of financial education to increase financial literacy in all areas of life. Statistics in numerous research papers, books, and government agencies such as the FED, Fannie Mae, and numerous universities, continue to point out that Americans in the past have not saved enough for retirement, have withdrawn from their retirement plans prematurely, have borrowed from their retirement plans, and have ceased contributions to their retirement plans. Further, many citizens need basic education with saving money, management of bills and credit card debt, creating a monthly household and operating budget, how to better plan for tax management, risk management such as insurances and financial protection and health care, estate planning, and the large potential risks of long term care needs. We are a not for profit that utilizes financial professionals to provide workplace education for dozens of important financial topics. These are the same educators that are under contract to teach financial literacy for major universities and this is 100% education, therefore no specific investments products or personal private information can be discussed in class.

4 ü Improve decision making and confidence. 70% of employees are not confident in their ability to make the right financial decisions, and 64% are concerned with finding a trusted source to provide financial advice. ü Many employees are challenged financially with either the care of aging parents or adult children moving back into the home. These multi-generational issues face up to 42% of employees in some states. ü Improve understanding of utilization of compensation and benefit programs. ü A reality check to set goals and targets since 54% of employees have not tried to calculate how much they need to save for retirement, 31% of workers have not saved for retirement, 80% cannot accurately predict when they will be eligible for full Social Security benefits, and 70% of workers feel they will need to work in retirement to supplement their income. ü Reduce stress for a more satisfied employee, and a more productive employee. ü Studies show that employees that receive financial education have better savings plans and will utilize company benefits because they understand the programs better. Financial Education & Retirement Institute, Inc Poplar Avenue Suite 150 Memphis, Tennessee Postal Partnering with Companies to offer Financial Literacy Education to employees, their families, staff, and associates in the workplace. With Little or NO cost to the company, this education becomes a Win-Win for the employee, their family, and the company. Mailing Info Here Discover today how workplace financial education can be a winwin for your firm Financial Education and Retirement Institute, Inc. A TN not for profit (901) In Depth financial education to help people make better decisions Don't learn the "hard way" when education can provide decision making tools

5 Education is an employee benefit that will make a real difference All instructors are industry professionals that blend textbook education with real world experiences and processes. CURRENT COURSE OFFERINGS 529 Plans and Estate Planning Banking and Bank Accounts Asset Protection Insurance - Property and Casualty, Liability Buying a Home Caring for your Aging Parents Retirement Your Way (full course) Charitable Giving Comparing Bond Yields Disability Insurance Basics Estate & Inheritance Tax Family Business Succession Planning Financial Aid for College Education Health Care Reform Investing & Account Basics IRA's Life Insurance Basics Landlords & Renting Your Home Life Insurance and Estate Planning Loss of a Spouse Municipal Bond Basics Net Unrealized Appreciation Planning for Incapacity Planning for Remarriage Planning for Social Security Medicare & Medicaid Basics Understanding Your Tax Return Required Minimum Distributions on an IRA Saving For College Long Term Care: What is It? Transition into Retirement Income The Impact of Inflation 401K's versus IRA's Retirement Planning with Annuities Estate Planning Revocable Living Trusts