IRI President and CEO--and Mother of Three--Promotes Financial Knowledge as Bridge to Financial Security

WASHINGTON, D.C. - The Insured Retirement Institute (IRI) today released the top 10 financial tips for college graduates from IRI President and CEO Cathy Weatherford.

"As we offer our congratulations and best wishes to the class of 2012, it is important to remind them that their education is not over," said IRI President and CEO Cathy Weatherford. "College graduates will be entering the workforce at a challenging time and will need to be smart and savvy when it comes to their personal finances in order to maximize their paychecks and their savings. Research shows a link between financial knowledge and both financial planning and savings levels. As a parent or a financial professional, the best thing we can do for young people--as they pack up their dorm rooms and head into the next phase of their lives--is to provide them with the best resources and information so that they can make the best financial decisions and attain financial security throughout their lives."

Weatherford's tips for college graduates:

1) Create a budget that includes savings and commit to it. Savings are not what remain of your paycheck after paying for expenses--they should be included as a budgetary item.

2) Pay off any debt and do not add to it. Pay off debt with the highest interest rates first. Make sure you understand your student loan obligations and develop a plan to pay them down.

3) Do not carry debt on your credit card. Credit cards can be convenient and can help establish a good credit history, which could be beneficial down the road. But excessive credit card usage can lead to financial distress. To steer clear of trouble, pay off your entire credit card balance each month.

4) Your salary may only be part of your compensation package. When evaluating a job offer, consider benefits such as health insurance, retirement contributions, and any additional perks.

5) Participate in your employer's retirement plan and contribute enough to maximize your employer's match. This is money you have earned as part of your compensation package; do not leave it on the table.

6) Boost your savings by taking advantage of tax breaks that provide incentives to save for retirement. Retirement plans such as a 401(k) allow you to save using pre-tax dollars, and your money can then grow on a tax-deferred basis. These incentives will allow your dollar to go further in the near term.

7) Consider the long-term advantages of a ROTH IRA. To fund a ROTH plan you will need to use after-tax dollars, but the money will grow tax-free. Your distributions in retirement will not be taxed either.

8) Save your receipts. Add up how much you are spending on daily expenses such as lunch and coffee. The total may surprise you and will help you develop a better understanding between "needs" and "wants." As a result, you may discover that you are happier packing your own lunch and brewing coffee at home.

9) Be a smart customer when it comes to banking. Shop around for the best deals from banking service providers. Do not pay unnecessary banking fees, including ATM fees or minimum balance fees, and search for the best interest rates.

10) Education does not stop now that you have earned your diploma. Take the initiative to keep learning, especially when it comes to personal finances. If you require assistance, your employer may have resources available to you or you can discuss your financial goals with a financial advisor.

About the Insured Retirement Institute: The Insured Retirement Institute (IRI) is a not-for-profit organization that for twenty years has been a mainstay of service, commitment and collaboration within the insured retirement industry. Today, IRI is considered to be the authoritative source of all things pertaining to annuities, insured retirement strategies and retirement planning. IRI proudly leads a national consumer education coalition of nearly twenty organizations and is the only association that represents the entire supply chain of insured retirement strategies: our members are the major insurers, asset managers, broker dealers and more than 150,000 financial professionals. IRI exists to vigorously promote consumer confidence in the value and viability of insured retirement strategies, bringing together the interests of the industry, financial advisors and consumers under one umbrella. IRI's mission is to: encourage industry adherence to highest ethical principles; promote better understanding of the insured retirement value proposition; develop and promote best practice standards to improve value delivery; and to advocate before public policy makers on critical issues affecting insured retirement strategies and the consumers that rely on their guarantees. Visit www.IRIonline.org today to experience the vast resources of the Insured Retirement Institute for yourself.

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