1. Distributions from Retirement Plans
Retirement Matters
Here to serve.
Please Call/Email with any questions.

2. Financial Matters SeriesFinancial Matters Series
Securities and Investment Advisory services offered through Transamerica Financial Advisors, Inc. (TFA), a registered investment advisor. Member FINRA & SIPC.
Non-Security products and services are not offered through TFA. Providence Wealth Partners LLC and TFA are not affiliated. We are licensed to sell securities in the
following states: CA, CO, IL, IN, MN, OR and TN. This should not be considered a solicitation in any other state. Due to various state regulations and registration
requirements concerning the dissemination of information regarding investment products and services, we are currently required to limit access of the following pages to
individuals residing in states where we are currently registered. A broker/dealer, investment advisor, BD agent or IA rep may only transact business in a particular state
after licensure or satisfying qualifications requirements of that state, or only if they are excluded or exempted from the states broker/dealer, investment advisor, or BD
agent or IA rep requirements, as the case may be; and follow-up, individualized responses to consumers in a particular state by broker/dealer, investment advisor, BD
agent or IA rep that involve either the effecting or attempting to effect transactions in securities or the rendering of personalized investment advice for compensation, as
the case may be, shall not be made without first complying with the states broker/dealer, investment advisor, BD agent or IA rep requirements, or pursuant to an
applicable state exemption or exclusion.
Please visit us at:
www.ProvidenceWealthPartners.com

3. Retirement Income Sources

4. Distribution Decisions
1. What to Take First
2. How to Take Distributions
3. Investment Strategies
4. Rules to Remember
5. Benefits and Beneficiaries

5. What to Take First
Taxable Accounts
Tax-Deferred Accounts
Tax-Exempt Accounts
(Savings and Investments)
(Traditional IRAs, 401(k) & 403(b) plans)
(Roth IRAs)

6. What to Take First

7. Click to Play

8. How to Take Distributions
Option 1.......Leave it Alone
Option 2.......Lump Sum
Option 3.......Rollover
Option 4.......Annuity
Option 5.......Combination

9. IRA Rollover
Source: Investment Company Institute, 2011. Results are from a survey of employees retiring between 2002 and 2007.
86% 21%
14%
65%Spent
all of the
proceeds
Reinvested
some or
all of the
proceeds
Rolled over
all to an IRA
Rolled over
some to
an IRA,
reinvested
some
outside an
IRA, and/or
spent some
Considerations
• Continued tax deferral
• Control
• Generally, more investment options
• Mandatory distributions at
age 70½ (traditional)

10. Investment Strategies
Mutual funds and variable annuities are sold only by prospectus only. You should consider the charges, risks, expenses, and
investment objectives carefully before investing or entering a contract. A prospectus containing this and other information about the
investment company or insurance company can be obtained from your financial professional. Read it carefully before you invest or
send money.
Protecting
Principal
Generate
Income
Growth
Potential
•
Individual bonds
•
Income-oriented
mutual funds
•
Fixed annuities
•
Individual stocks
•
Growth-oriented
mutual funds
•
Variable annuities
•
Certificates of
Deposit
•
Money market
funds

11. 80%
Stocks
Bonds
Cash
Cash
Bonds
Stocks
20%
10%
20%
10%
60%
Investment Strategies
Source: Thomson Reuters, 2012
Past performance does not guarantee future results. Actual results will vary.
Aggressive Portfolio
Best Year.........33.6%
Worst Year.....-32.8%
Average..........8.8%
Conservative Portfolio
Best Year...............16.8%
Worst Year...........-13.2%
Average..............5.7%

12. The $
100,000 Difference
This is a hypothetical example used for illustrative purposes only. It is not representative of any specific investment or combination of
investments. Past performance does not guarantee future results. Actual results will vary.
$
700,000
Start Year 20Year 10
$
500,000
$
300,000
$
100,000
$
200,000
$
400,000
$
600,000
$545,187
$305,551
Aggressive Portfolio
Conservative Portfolio

13. Strategy #1: Mutual Funds

14. Strategy #2: Split Annuities
$150,000
$150,000
$300,000
$100,000
$100,000
$250,000
$400,000
$50,000
$50,000
$200,000
$350,000
Start
Year
Start
Year 1
1
2
2
3
3
4
4
5
5
6
6
7
7
8
8
9
9
10
10
This is a hypothetical example used for illustrative purposes only. It is not representative of any specific investment or combination of
investments. Past performance does not guarantee future results. Actual results will vary.
$270,226
$129,774
Generates $1,253 per month
in income (at 3%)
Rebuilds Principal at 4%
$400,000 divided into two pools

15. Strategy #3: Combination
This is a hypothetical example used for illustrative purposes only. It is not representative of any specific investment or combination of
investments. Past performance does not guarantee future results. Actual results will vary.
$150,000
$100,000
$50,000
1 2 3 4 5
$150,000
$100,000
$50,000
1 2 3 4 5 6 7 8 9 10
$300,000
$200,000
$400,000
$100,000
1 2 3 4 5 6 7 8 9 10
$119,653
$100,138
$180,209
Generates $2,150 per month in
income (at 3%) during years 1-5
Generates $2,150 per month in income (at 3%)
during years 6-10
Builds value (at 4%)
Rebuilds principal (at 8%)
Start
Year
Start
Year
Start
Year
$400,000 divided into three pools

16. Source: Internal Revenue Service, 2011
Rules to Remember
•
Required Minimum Distributions
- Age 70½
- Based on age, account value,
and life expectancy
•
Excess accumulation penalty
- 50% of amount not distributed
as required

17. More Rules to Remember
Source: Internal Revenue Service, 2011
•
Age 59½
Exceptions to rule
- Unreimbursed medical expenses
- Disabled
- Higher education expenses
- Buy or build a first home

18. Beneficiaries
•
Naming your spouse
as beneficiary
•
Naming someone
other than your
spouse as beneficiary

19. 73.9%
Retire Early
26.1%Retire at “Normal Age”
When Should You Begin Taking
Social Security Benefits?
Source: Social Security Administration, 2012; average monthly benefit for a retired worker.
Age Matters
Age 62 $923/mo.
Age 67 $1,230/mo.
Age 70 $1,549/mo.
Who’s Early? Who’s Late?

20. Distributions from Retirement Plans

21. Financial Matters SeriesFinancial Matters Series
Dr. Allen R. Rumble, RFC
ARumble@ProvidenceWP.com
www.ProvidenceWealthPartners.com
Securities and Investment Advisory services offered through Transamerica Financial Advisors, Inc. (TFA), a registered investment
advisor. Member FINRA & SIPC. Non-Security products and services are not offered through TFA. Providence Wealth Partners LLC
and TFA are not affiliated. We are licensed to sell securities in the following states: CA, CO, IL, IN, MN, OR and TN. This should not
be considered a solicitation in any other state. Due to various state regulations and registration requirements concerning the
dissemination of information regarding investment products and services, we are currently required to limit access of the following
pages to individuals residing in states where we are currently registered. A broker/dealer, investment advisor, BD agent or IA rep may
only transact business in a particular state after licensure or satisfying qualifications requirements of that state, or only if they are
excluded or exempted from the states broker/dealer, investment advisor, or BD agent or IA rep requirements, as the case may be; and
follow-up, individualized responses to consumers in a particular state by broker/dealer, investment advisor, BD agent or IA rep that
involve either the effecting or attempting to effect transactions in securities or the rendering of personalized investment advice for
compensation, as the case may be, shall not be made without first complying with the states broker/dealer, investment advisor, BD
agent or IA rep requirements, or pursuant to an applicable state exemption or exclusion.