About meEric J. Negron, AWMA®Qualifications:Accredited WealthManagement Advisor™Series 7Series 6Series 66Series 63Licensed Insurance Agent
You have to have a planRetirement Only 16% of workers are very confident about having enough money for a comfortable retirementNOW FUTURE Source: 2010 Retirement Confidence Survey: Confidence Stabilizing, But Preparations Continue to Erode. EBRI Issue Brief, March 2010
Define your dreams
Develop your plan
Expenses shift over time
This used to be enoughINCOMEGOAL PERSONAL SAVINGS SOCIAL SECURITY COMPANY PENSION
Future income sourcesINCOMEGOAL PERSONAL SAVINGS SOCIAL SECURITY COMPANY PENSION
Replace your paycheck
Guaranteed income Variable annuities are insurance products that are complex long-term investment vehicles that are subject to market risk, including the potential loss of principle invested. Before you invest, be sure to ask your financial professional about the variable annuity’s features, benefits, risks and fees, and whether the variable annuity is appropriate for you, based on your financial situation and objectives. All guarantees are based on the continued claims-paying ability of the issuing company and, on variable annuities, do not apply to the performance of the variable subaccounts which will vary with market conditions.
Planning for retirement dollarsTARGETNET INCOME $2k PERSONAL SAVINGS $2k SOCIAL SECURITY COMPANY PENSION $1k This illustration is hypothetical and is not meant to represent any specific investment or to imply and guaranteed rate of return.
Planning for retirement dollarsTARGETNET INCOME$5k/mo INCOME ANNUITY $1k PERSONAL SAVINGS $1k $2k SOCIAL SECURITY COMPANY PENSION $1k This illustration is hypothetical and is not meant to represent any specific investment or to imply and guaranteed rate of return.
Your nest egg – is it enough?ANNUALAMOUNT $40k $85k $100kDESIREDRETIREMENT $964k $2.05M $2.41MNEST EGG Assumes an after-tax portfolio with a tax rate of 25%, 7% annual yield (a moderately aggressive risk tolerance portfolio), 4% annual inflation, and depletion of funds after a 30-year retirement. Does not take account of investment or product fees or state taxes, if any. Income is increased annually at rate of inflation. This information is shown for illustrative purposes only, and does not represent any specific product or investment. Your actual investment results will vary.
How should you invest? FAR FROM NEAR IN RETIREMENT RETIREMENT RETIREMENT Asset allocation does not assure a profit or protect against loss in declining markets.
Understand your risks HEALTH UNEXPECTED MARKET WITHDRAWAL CARE LONGEVITY INFLATION EVENTS VOLATILITY RATE NEEDSHealth care needs Unplanned The growing The risk of outliving Some economists Pulling too muchtend to increase developments in interconnectedness one’s assets is of believe that inflation from savings earlywith age and health your life can have of world economies great concern in a is likely to climb in in retirementcare costs are ever a major impact on and the ever- time of rising life the years ahead, increases the riskrising. your finances, increasing speed of expectancies and but even at low that you could potentially forcing global capital flows earlier retirements. rates, inflation can outlive your money. you to withdraw have made the deteriorate the money from savings markets more buying power of and perhaps even volatile than ever. your savings. jeopardize your Volatility can be retirement particularly accounts. damaging to a portfolio during retirement.
Long-term care70% of Americans will need daily help because of a disability. (Source: Testimony of Kathy Greenlee Assistant Secretary Administration on Aging U.S. Department of Health and Human Services Before the Special Committee on Aging United States Senate, May 26, 2011)
Tax treatment matters TAX- FREE TAX- TAXABLE DEFERRED Ameriprise Financial and its representatives do not provide tax or legal advice. Consult your tax advisor or attorney regarding specific tax issues.
Some attractive features… 1 After-tax dollars Tax-free withdrawals 2 ROTH IRA 3 Limits on contributions No limits on conversions 4 A Roth IRA is tax free as long as you leave the money in the account for at least 5 years and are 59 1/2 or older when you take distributions or meet another qualifying event, such as death, disability or purchase of a first home.
Keep on track
It’s all about balanceSECURITY ENJOYMENT
When do you withdraw? AGE AGE AGE 55 59 .5 70 .5 MAY INCUR NO MUST START PENALTY THE FLOW A PENALTY
How much can you withdraw?Amount saved Withdrawn amountfor retirement per month At 10% rate At 4% rate $1MM $8,300 $3,300 FOR 15 YEARS FOREVER