The future belongs to those who believe in the beauty of their dreams.
4 Envision the possibilities.
Joining the Peace Corps. Starting your own
business. Learning piano. Biking across
Tuscany. Buying a new home. Finding new ways
to relax. Life has many opportunities whether
you’re starting your first job, starting a family People who write down
or entering retirement. Just ask yourself,
“What could I do next?”
their dreams are much
Financial planning has traditionally been about numbers. How
more likely to achieve them.
much money you have. How much you will need. How long it will
last. Now there is a new way to plan for tomorrow. And it starts
This guide is the first step
with your dreams. to help you think about
Sure, there’s still a lot of math involved. But we’re good at that.
That’s why more people come to Ameriprise for financial planning
your dreams and which ones
than any other company.1 We helped pioneer financial planning
more than 30 years ago and our financial planning process is
are most important. From
defined by the Certified Financial Planner Board of Standards, Inc.
there, we can work together
Our unique and collaborative Dream > Plan > Track >®approach to
financial planning starts with your dreams, not just the numbers. An to help make your vision
Ameriprise financial advisor can help you turn your dreams into reality2
by first helping you define your dreams, then developing your plan and come to life.
tracking progress toward your personal vision of fulfillment.
Take the first step toward the life you’ve imagined — starting with
this Dream Book guide.
Source: SEC Form ADV, Part 1A, Item 5, Dec. 31, 2006. Based on the number of
financial planning clients annually disclosed in Form ADV, Part 1A, Item 5, available at
adviserinfo.sec.gov as of December 31, 2006.
Ameriprise Financial cannot guarantee future financial results.
ameriprise.com 4 1-800-AMERIPRISE
Sit down by yourself or with loved ones and start to
imagine your future. Consider what drives you in your life
and how that has changed over time. Start by recording
where you are today:
What milestones do you see in your future? — start a
family, send kids to college, buy a new home, retire, others
If you could do anything, time and money aside,
what would it be? — spend time with family, buy a
vacation home, start your own business
Top 10 life
What would you like to add in your life? — more time, Become debt
more money, others free
Write a book
Take a cruise
Go to Hawaii
What would you like to reduce in your life? — debt, Travel to
job stress, others Europe
Pay off the
1Source: EONS™, Inc., survey of members over 50, 2007.
What would you like to do?
Use your imagination to create the possibilities for your
future. Does anything stand out as most important?
Top 20 second careers
Career — change careers, start a new business, continue the
1 . Nonprofit executive work you love
2 . Patient representative
3 . Celebrant/religious leader
4 . Financial adviser
5 . Public school teacher
Hobbies — restore an old car, make quilts, garden, write a novel
6 . Appraiser (residential real estate)
7 . College professor
8 . Day care center teacher
9 . IRA specialist
10 . Labor relations manager Volunteer work — build homes for the homeless, volunteer for
a political party, teach people to read
11 . Leasing consultant
12 . Lobbyist
13 . Medical records coding technician
14 . Pension administrator
15 . Religious educator Learning — go back to school, learn another language, get your
16 . Department retail sales manager pilot’s license
17 . Retail sales staff
18 . Staff nurse (RN)
19 . Tax accountant
20 . Tutor Relaxing and enjoying life — travel with family, read more, savor
Source: Research by Money magazine and Salary.com, 2007.
Who do you want to spend time with?
Maintaining social connections can be challenging throughout
our lives. Young parents are often surprised by how much they
miss just talking to adults. The newly self-employed may miss
the “watercooler.” And the loss of work friends is the most
unforeseen challenge of retirement.1 It’s important to take an
active role in building and maintaining your support network
of friends, family and acquaintances throughout your lifetime.
Spouse or partner — consider new activities you may
participate in together.
Family — how far away are your parents, children and
grandchildren? What activities do you like to do together?
Some ways to
Do you desire or need to travel to see family members?
Get out with
Work out at a
Do breakfast, Friends — how much do you like to entertain and
lunch or dinner stay socially active?
Join a cause
you believe in.
New friends — how can you meet new people?
Join a hobby
group. (consider classes, clubs and organizations)
Go back to
Hang out on
New Retirement Mindscape study, conducted in August 2005 by
Ameriprise Financial in conjunction with Age Wave and Harris Interactive.
Source: MayoClinic.com, 2007.
Where do you dream of going?
Travel is one activity that can satisfy many of your deepest
desires. It can provide solitude, companionship, adventure
or relaxation. The possibilities are endless.
Destination — U.S., overseas, historical sites, places
from your roots, homes of friends or family
Did you know? 1
average U. S.
vacation cost per
day for food and
lodging, for a
family of four is
$269. In 1950
How do you want to travel? — motor home, car,
bicycle, motorcycle, plane, train
states for food
for a family of
Hawaii $650 How much traveling do you want to do? — number
District of of trips each year, duration
New York $326
Who are your travel companions? — spouse or
partner, friends, children, tour groups
Source: AAA’s Annual Vacation Costs Survey, 2007.
Where do you see yourself living?
Where you want to live is an important part of your vision
for the future. Do you want to be part of a community?
Do you want to try a new climate or lifestyle? Do you
want to live in multiple locations?
Stay in the area — loft in the city, current home, smaller/
Move closer to family — spend time with children, grandchildren
Move for work — be in a hot spot for your field, start a business
with a colleague
Relocate near activities you love — vacation home, overseas,
learning community, active outdoor setting
How do you intend to stay healthy and active?
As your lifestyle and your health change throughout life,
think about how you will take care of yourself. Consider
it in broad terms, including mental and physical well-being,
a healthy soul and a nurturing environment.
Physical fitness — join a health club, take walks, learn
martial arts, play golf, buy a home gym, practice yoga
Mental fitness — take classes, go to concerts, play
chess or cards, write a book, practice meditation
Health care — learn about and make the most of your
benefits: health insurance, health savings accounts,
flexible spending accounts, medical help lines, Medicare, Did you know? 1
long-term care, prescription drugs An American
65 in good
health has a
of living to age
85 and a 25%
chance of living
to age 92.
1Source: Current Annuity Mortality Table: Society of Actuaries (2000).
How do you want to make a difference?
Sometimes dreams can include helping others. Think
about the people who matter to you, what you hope the
future holds for them, and how you might help them
realize their own dreams. What organizations or causes
represent your values? How do you want to support them
now and in the future? Think big.
Family — fund education, instill values, teach personal skills
Community — serve on a board, provide volunteer outreach,
do fund-raising, donate money
Friends — form support groups, be a mentor
How do you want to make your lasting mark?
We all have a say in how we’re remembered. Our legacy
is formed by the ideas, actions and causes to which
we dedicate ourselves today. What’s important to you?
What do you want to pass on to others?
Family and friends — children, siblings, parents, friends, pets
What brings you happiness?
Spiritual interests — your place of worship, religious organizations As it turns out, money alone
does not buy happiness.
Having a vision for the future
and planning for that vision
Schools — your alma mater, your family members’ schools
are as important as money
in achieving a fulfilling life.
Charities or causes — food banks, shelters, arts, research
From dreams to reality.
How long will your money last in retirement? Congratulations! Envisioning your dreams and
Thinking ahead to your retirement, you'll need to make sure putting them down on paper is the first step in
you can live your dreams without depleting your savings. So,
how long will your nest egg last? This chart may give you a making them a reality.
rough idea of how long your savings could last if you made
the following monthly withdrawals from your retirement The next step is to prioritize the goals that are
savings. You can use this as a guide to help determine your most important to you and to establish milestones
retirement income. How closely does this align with your
expectations and needs? for reaching them. The most successful goals are
those that follow the STAR technique:
Amount saved You can withdraw this much each month for:
for retirement: 10 years 20 years 50 years 1) Specific
$50,000 $400 $225 $150 2) Time-bound
$100,000 $800 $450 $300 3) Actionable
$150,000 $1,200 $675 $450 4) Relevant
$200,000 $1,600 $900 $600
Remember, you are not alone. Your Ameriprise
$250,000 $2,000 $1,125 $750
$500,000 $4,000 $2,250 $1,500
financial advisor can help you refine your goals
$750,000 $6,000 $3,375 $2,250
and estimate how much money it will take to
$1,000,000 $8,000 $4,500 $3,000 realistically bring your vision to life.
$2,000,000 $16,000 $9,000 $6,000
Withdrawal rates shown are based on an average pre-tax rate of
return of 9.6% and blended tax rate of 20%. Annual rate of withdrawal
assumptions (as a percentage of savings): 10-year projection — 9.6%;
20-year projection — 5.4%; 50-year projection — 3.6%. Withdrawal
rates are based on a 75% likelihood of success for an investor. Success
is defined as meeting your income need every year of the projection,
adjusted for inflation. Average pre-tax rate of return is hypothetical and
is not representative of the actual rate of return you would experience.
Blended tax rate is determined by dividing an investor’s total tax liability
by their total income. Consult with your tax advisor about your personal
situation as your holdings and blended tax rate will likely differ from this
illustration. Ameriprise Financial does not provide tax advice.
Turn your dreams into goals.
You may find the following format useful in getting more
specific about your most important dreams. First, write
out each dream using the STAR technique (specific, time-
bound, actionable, relevant). Then, prioritize your dreams
and work with your Ameriprise financial advisor to develop
Dream #1 pecific. ise .
an t to achie
ve? Be s
se ve n -d ay A lask an c r u your plan and track your progress along the way.
do you w
(S) What i ly r e u n i on on a
H os t a fam a Be l, G ran d m a Pa t, e ll y, L isa ,
ln vi t e G ran es, Ju d y, Sh a w n , E ll i e , Dream #1
N a t h an , Ja (S) What do you want to achieve? Be specific.
G re g an d S
ri n g 2 0 09
a deadlin 1 7 ,0 0 0
(T) By when?
$12 ,0 0 0 - $
h will it c
to take? t
you need in e h o w m u ch i
action t t o d e t e rm
to a t rave l age n
1) Ta lk 12 pe ople . i ly sh i r ts,
w i ll c os t for all bu d ge t: c r u ise , fam (T) By when? Set a deadline.
2) D e t
e rm i n e ove r on e y. w How much will it cost?
m or abo u t h o
$1 0 0 spe n d i n g e ri prise fi n an c ial ad vis (A) What action steps do you need to take?
lk t o o u r A r e am .
h is d
t o a c h i e ve t 1)
y is it rele d
lf on track, wh t w e c a h ol
(R) To ke
m i ly m e m ori es t h a
To c r e a t e fa est o f o u r li ves. an opp or t u n
i ty 3)
on t o for t h e r n an d gran d c h i ld r e n
i ld r e
Gi ve o u r c h t o t h e r wise a f ford . 4)
t h e y c o u ld
(R) To keep yourself on track, why is it relevant?
Dream #2 Dream #3
(S) What do you want to achieve? Be specific. (S) What do you want to achieve? Be specific.
(T) By when? Set a deadline. (T) By when? Set a deadline.
How much will it cost? How much will it cost?
(A) What action steps do you need to take? (A) What action steps do you need to take?
(R) To keep yourself on track, why is it relevant? (R) To keep yourself on track, why is it relevant?
Dream #4 You may also find this worksheet useful in seeing
the overall picture of the dreams you hope to achieve.
(S) What do you want to achieve? Be specific.
Planning for your dreams
Worksheet — example
One-time costs Ongoing costs
Dream/Goal Cost Year needed Cost per year # of years Start date
Travel to see siblings $10,000 15 2007
Cabin $40,000 2008 $15,000 15 2007
College for kids $50,000 8 2010
(T) By when? Set a deadline.
Boat $40,000 2011
How much will it cost?
Family cruise to Alaska $12,000 2009
(A) What action steps do you need to take?
Planning for your dreams
2) One-time costs Ongoing costs
Dream/Goal Cost Year needed Cost per year # of years Start date
(R) To keep yourself on track, why is it relevant?
Take a look at the dreams you’ve described. You will probably
see that some require more financial planning than others.
That’s why it’s important to share your Dream Book guide with
those close to you and your financial advisor. Working with an
advisor, you can begin to see your personal priorities, create a
plan that includes your dreams and track your ongoing progress.
28 ameriprise.com 1-800-AMERIPRISE
We’re redefining financial planning
with Dream Plan Track ® .
Now that you’ve completed your Dream Book guide, you
are one step closer to making your dreams a reality. At
this point, you have envisioned the possibilities for your
future and defined and prioritized your goals. Are you
ready to take the next step?
Call your financial advisor to help turn your dreams
into goals with financial solutions.
To find a financial advisor, call 1-800-AMERIPRISE
or visit ameriprise.com.
Reevaluate your situation regularly as your dreams
may change over time.