Disclosures
The information provided here is for informational purposes only. It is not an offer to buy or sell any of the securities, insurance products,
investments or other products named.
This material is derived from sources believed to be reliable, but its accuracy and the opinions based thereon are not guaranteed.
Citigroup Inc. and its affiliates do not provide tax or legal advice. To the extent that this material or any attachment concerns tax
matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by
law. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.
© 2015 Citigroup Inc. Citigold provides clients with access to enhanced levels of services and benefits from Citibank, N.A. (“Citibank”) and its
affiliates in the U.S. Citibank provides banking and lending services, including the Citigold Account package. Citi Personal Wealth Management, a
business of Citigroup Inc., offers investment products through Citigroup Global Markets Inc. (“CGMI”), member SIPC. Accounts carried by
Pershing LLC, member FINRA, NYSE, SIPC. Citigroup Life Agency LLC (“CLA”) offers insurance products. In California, CLA does business as
Citigroup Life Insurance Agency, LLC (license number 0G56746). Citigold Relationship Managers and Private Client Relationship Managers are
employees of Citibank, N.A. and are employees and registered representatives of CGMI and agents for CLA. Citibank, CGMI and CLA are
affiliated companies under the common control of Citigroup Inc.
Life Stages: Starting Out
We often take on substantial debt when we’re younger,
expecting that we’ll have many years to repay the loans.
•
Student loans
—potential payback through increased earning power
•
Credit cards
—may need to get a joint card with a parent
Life Stages: Working Years
Through your 30s and 40s, your debts may continue to climb.
•
Loans to buy first and second homes
•
Lines of credit for large unplanned expenses, buying cars,
remodeling projects
Life Stages: Approaching Retirement
Be cautious about taking on more debt—and aim to be
debt-free before you quit the workforce.
•
Weigh investment opportunities against return from debt repayment.
•
Consider extra principal payments to get your mortgage paid off
by retirement.
Smarter Debt Management
•
Before taking on debt, think carefully about
whether you can manage the loan payments.
•
Understand the 28%/36% debt-to-income ratios
for mortgages.
•
Consider the after-tax cost of your debts.
•
If you use credit cards to cover monthly costs
and earn rewards, try to pay off the balance
every month.
•
Weigh the advantages and risks of both secured
and unsecured debt.
How to Look Creditworthy
•
Get your credit report:
•
Ask yourself these questions:
Am I paying bills (e.g., utilities) on time?
What’s the impact on my credit if I cancel credit
Does it help or hurt to use a variety of
credit: credit cards, auto loans,
mortgages, personal loans?
Real Estate: When to Consider Purchasing
You believe you’ll own the
house long enough to build up equity.
You have a secure job.
You have enough for a down payment.
Real Estate: Advantages of Homeownership
Imputed rent
Potential price appreciation
Tax deduction
Forced savings
Key Issues: Should You Refinance?
•
Factor in job security, income
stability and time frame.
•
Calculate how long it will take to
recoup the refinancing costs
through lower monthly payments.
•
Make sure you’re making an
apples-to-apples comparison.
Key Issues: Should You Pay Down Debt?
•
It’s a tough decision given today’s low mortgage rates.
•
Compare the after-tax cost of your debt to investment opportunities.
•
You could fall into a tax trap if you carry debt into retirement.
Over time, more of each monthly payment goes toward reducing your mortgage’s
principal balance.
Principal
vs.
Interest
Monthly Interest
Payment
Key Issues: Too Much Debt?
I N C O M E
D E B T
Compare debt payments to income
Go on a cash diet
Focus on paying down high-cost debt
Seven Questions to Ask Yourself
What is in my credit report and what’s my credit score?
1
2
3
4
5
6
If I’m hit with a sudden cash need, do I have easy access to
borrowed money?
Would it make financial sense to pay down debt—or are there
better uses for my savings?
Could I lower my borrowing costs?
Citigold: A World of Benefits
•
Dedicated Home
Lending Officers to
provide guidance when
you apply for a first
mortgage
1
•
Access to dedicated
Citigold Customer
Service Representatives
•
Assistance from Citi
®
Identity Theft Solutions,
if needed
•
Waived fees on select
products and services
1
•
Competitive interest
rates on select deposit
products and preferred
pricing for select loans
and lines of credit
1,2
•
Earn highest maximum
monthly points for certain
products and services
linked to enrolled
checking accounts
1,3
•
Potential to work with a
Citigold Relationship
Manager at Citibank
4
•
Professional guidance,
tools and resources
from Citi Personal
Wealth Management
Financial Advisors
•
Access to experienced
professionals, tailored
information and
financial education
•
3,000+ Citibank
branches and 10,000+
Citibank ATMs worldwide
•
Waived foreign
exchange fees when
using your Citibank
Banking Card for ATM
withdrawals or debit card
purchases in
participating countries
1
Access and service
Recognition and
benefits
Guidance
Global benefits
1 Requires a checking account in a Citigold Account Package.
2 Loans and lines subject to credit approval. Certain limitations may apply.
3 Separate enrollment of eligible consumer checking account in Citi Thank You Rewards required. Eligible customers with a checking account in the Citi Private Bank Account, Citigold Account of the Citibank
Account Packages can enroll their checking accounts in ThankYou Rewards. Eligibility and participation are subject to terms, conditions and restrictions. Customer must be a citizen or resident alien of the United States (U.S) with a valid U.S. taxpayer identification number. Taxes, if any, are customer's responsibility. You must complete 1 qualifying Bill Payment and 1 qualifying Direct Deposit each statement period in order to earn monthly ThankYou Points for eligible products and services linked to your checking account. Citigold and Citi Private Bank clients who do not complete these transaction requirements can earn points at a reduced level.
4 The Relationship Manager Service may be made available to select high net worth clients who have a Citigold Account Package, maintain a minimum balance of two hundred fifty thousand dollars ($250,000) in
combined deposit, retirement and investment accounts ("Required Balance") and whose financial needs and activities in Citi's sole determination are appropriate for the Service. The Required Balance of $250,000 or more to be maintained during a consecutive 6 month period is calculated as the average of the closing account balance(s) on periodic (e.g., monthly) statements(s) for deposits in your Citibank, N.A. retail bank account(s), retirement accounts, and investments held in your linked CPWM account(s) and annuity positions shown on linked CGMI statements (except for tax-qualified annuities which includes annuities that qualify under Sections 401, 403, 408 and 457 of the Internal Revenue Code).
Citigold provides clients with access to enhanced levels of services and benefits from Citibank, N.A. (“Citibank”) and its affiliates in the U.S. Citibank provides banking and lending services, including the Citigold
