Citibank Florida Offers Wealth-Building Tips and Seminars to Help Win the Race to Financial Security; Gains on Savings Vehicles Have Outpaced This Year's S&P 500.

Business Editors

MIAMI--(BUSINESS WIRE)--Aug. 28, 2000

The unprecedented growth in the economy over the past several years has encouraged more and more Americans to invest in the market. With the Dow Jones Industrial Average hitting 11,000 this year, and stories of thousands of new millionaires being minted every day, it's hard not to be enthusiastic about the potential to build wealth through investing. In Florida alone, there are 160,000 millionaires, with the under-50 being the fastest growing segment. However, in the new economy, many are overlooking the benefits of a savings plan, as evidenced by this June's national savings rate of 0.1 percent of personal disposable income.

"Savings are critical to a successful wealth-building program," says Cali Garcia-Velez, President, Citibank Florida. "Start early, and save regularly. These steps, taken together, are a guaranteed path to growing your money. There are three reasons why I can say this with certainty - market volatility, compounding, and the FDIC."

Market Volatility: Many feel that the only way to really advance one's financial situation is by investing in the market, whether through mutual funds, individual stocks or some other investment strategy. But a look at how the S&P 500 performed for the first 6 months of this year shows a decline of -0.4%. During the same time, money allocated to a savings vehicle could easily have earned a guaranteed APR of 6%. While investment in the market can lead to larger returns, a portfolio that includes a savings component provides some balance should stock picks not perform as well as expected.

Compounding: The benefits of compounding increase exponentially over time, making a proportionately larger contribution to overall wealth as savings mature. This point is very clearly illustrated when looking at specific examples of how time and various rates can affect one's savings.

The FDIC: The Federal Deposit Insurance Corporation is an independent insurance agency created by Congress in 1933 to maintain stability and public confidence in the nation's banking system by insuring deposits. This insurance covers an individual for up to $100,000 in savings deposits at any bank in the U.S. While this may not seem critical in a period of strong economic growth, it is reassuring to know that your money is protected - an assurance that does not come with other investments.

F. Scott Wells, CFP, of Evensky, Brown & Katz and President of the Financial Planning Association of Miami-Dade, advises that "The percent of money allocated to savings versus investments and other financial instruments depends entirely on an individual's current financial situation, financial objectives, and plans to reach those objectives. From there, it's just a matter of choosing the right savings vehicle for that individual's needs."

It's such an important concept that Citibank Florida offers the following tips to help everyone get started and stay on track with a savings plan.

4 Tips for Wealth-Building through Saving

1. Get motivated. A look at some compounding charts demonstrates how an intelligent savings plan can help you build wealth.

2. Do a financial needs analysis. You must take an objective look at your current financial situation - which may already include significant savings - and define your goals before creating the right savings plan for you.

3. Stay involved. Review your plan periodically to see if it needs to be adjusted due to a change in financial situation or goals.

4. Watch your money grow. Guaranteed rates and insurance can only mean an increase in the value of your savings contribution. So relax - watching your money grow is the best motivator of all.

While savings rates are falling, the same U.S. Census Bureau survey indicated that there is an estimated $2,882 billion dollars already socked away in U.S. time and savings deposits. The financial services industry has a variety of products available to help these savers maximize the returns on these funds.

"Citibank is committed to financial literacy and we encourage everyone - new savers and established savers alike - to come in for a complimentary financial needs analysis, or just pick up one of our free monthly savings calculators, to see how you can build wealth through savings. Then we can suggest the savings vehicle that will best meet your overall financial objectives. There are too many life goals - weddings, homeownership, retirement - not to take advantage of this opportunity," continued Garcia-Velez.

Citibank Florida is offering thirty-one free Wealth-Building Seminars on money management throughout the tri-county area. Seminar topics range from Debt Management, to Women and Investing, to Small Business Retirement Plans, among others. For seminar schedules check your local newspaper calendars, or for more information on Citibank's current Money Market and Certificate of Deposit rates, log onto www.citigroup.com.

Citibank has served the consumer banking community in Florida since 1984. The bank has Financial Centers in Florida located in Miami-Dade, Broward and Palm Beach counties, along with operations centers in Tampa and Jacksonville. Citibank invests in Florida communities through contributions, technical assistance and employee volunteerism. The company is a vigorous supporter of public education, and in 1987 introduced the Citibank Success Fund, which has become a national model for innovative, school-based programs. In addition to other community activities, Citibank is proud to be a major corporate sponsor of the Miami Heat.

Citibank is a member of Citigroup, a premier financial services company providing some 100 million consumers, corporations, governments and institutions in 100 countries with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage and asset management. The 1998 merger of Citicorp and Travelers Group brought together such brand names as Citibank, Travelers, Salomon Smith Barney, CitiFinancial, and Primerica under Citigroup's trademark red umbrella. Additional information may be found at www.citigroup.com.

Note: Media can receive the complimentary monthly savings calculators and the tri-county schedule for the free Citibank Florida Wealth-Building Seminars, as well as coordinate interviews or backgrounders with Citibank Florida President, Cali Garcia-Velez, by contacting Amy Federman.