Protect Your Budget

When you create a budget, you are accounting for every expenditure during a month or year. However, the first thing that ruins even the best plans is an emergency or an unexpected expense, such as an auto repair. It is essential to your financial health that you establish an emergency cash reserve.

Purpose of Emergency Fund

• Deal with inevitable, unexpected expenses by minimizing disruption and avoiding having to go into debt.

• Take greater risks with the rest of your assets.

• Place your emergency money where you can access it easily and without penalty.

Financial experts generally recommend that the emergency fund be equal to between three and six months' spending money. Do you have enough in your emergency reserve fund? See the Financial Overview Quick Report.

Tips for Establishing an Emergency Reserve

• Deduct regularly from each paycheck or transfer from your checking account each month into your emergency account.

• Shop around to find a money market or savings account with a relatively high yield.

• Use an equity line of credit against your home as your emergency source so that your emergency money is not sitting in a lower yielding liquid account.

Unfortunately, budgeting is not a one-time event. Budgeting is an ongoing process. This means that you should continue to track your expenses to ensure you are managing your budget effectively.

Monitor and Adjust

• Are you doing everything you can to improve your cash flow and reduce income taxes?

• Is your money working as hard as you are?

• Stay focused on your cash management goals.

See Monitoring Worksheet to print your budget with an Actual Costs column. Make copies of this worksheet so that each month you can compare your budget to how you actually spent money.

If you were right on, fantastic! If you were off, find out what went wrong and make the necessary adjustments. A budget is always a work in process. Life events can require that you make adjustments. However, keep in mind the principles discussed in this course, and stay focused on all your cash management goals.

Congratulations, you have now completed the Money Management Course, the basis to your financial success.

Important Notice about Purchasing a VALIC Annuity From Us

To help the government fight the funding of terrorism and money-laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who purchases certain annuity products. What this means for you: When you purchase certain annuity products from us, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may ask to see your driver's license or other identifying documents.

Annuities and insurance products are offered by The Variable Annuity Life Insurance Company (VALIC), AIG Annuity Insurance Company, AIG-affiliated insurance companies or other approved companies. Each underwriting company is financially responsible for its own insurance products.

Securities and investment advisory services are offered by AIG Retirement Advisors, Inc., member FINRA, SIPC and an SEC-registered investment advisor.

AIG Retirement is the marketing name for the group of companies comprising AIG Retirement Advisors, Inc.; AIG Retirement Services Company; and The Variable Annuity Life Insurance Company (VALIC); each of which is a subsidiary of American International Group, Inc.

This information is general in nature and may be subject to change. Neither VALIC nor its financial advisors or other representatives give legal or tax advice. Applicable laws and regulations are complex and subject to change. For legal or tax advice concerning your situation, consult your attorney or professional tax advisor.