Building Financial Security

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  • The planning process for qualified retirement plans mirrors the model designed for retail clients. You’re familiar with the financial security pyramid, which is applicable to the business retirement market as well.
  • The planning process for qualified retirement plans mirrors the model designed for retail clients. You’re familiar with the financial security pyramid, which is applicable to the business retirement market as well.
  • The planning process for qualified retirement plans mirrors the model designed for retail clients. You’re familiar with the financial security pyramid, which is applicable to the business retirement market as well.
  • The planning process for qualified retirement plans mirrors the model designed for retail clients. You’re familiar with the financial security pyramid, which is applicable to the business retirement market as well.
  • The planning process for qualified retirement plans mirrors the model designed for retail clients. You’re familiar with the financial security pyramid, which is applicable to the business retirement market as well.
  • The planning process for qualified retirement plans mirrors the model designed for retail clients. You’re familiar with the financial security pyramid, which is applicable to the business retirement market as well.
  • The planning process for qualified retirement plans mirrors the model designed for retail clients. You’re familiar with the financial security pyramid, which is applicable to the business retirement market as well.
  • The planning process for qualified retirement plans mirrors the model designed for retail clients. You’re familiar with the financial security pyramid, which is applicable to the business retirement market as well.
  • Building Financial Security

    1. 1. Your Total Financial Picture<br />You<br />Investments<br />Retirement Plans<br />Estate Plans<br />Assistance to family members<br />Debt Management<br />Insurance<br />Asset Allocation<br />Wills<br />College Funding<br />Consumer<br />Health<br />Investments<br />Long Term<br />Trusts<br />Living Expenses<br />Mortgage<br />Disability<br />Employer Retirement Plans<br />Intermediate Term<br />Heirs<br />Long-Term Elder Care<br />Business<br />Life<br />IRAs<br />Short Term<br />Charities<br />Long-Term Care<br />Annuities<br />
    2. 2. Building Financial Security<br />WealthPreservation& Distribution<br />WealthAccumulation<br />RiskManagement<br />
    3. 3. Building Financial Security<br />Aggressive<br />RISK<br />Liability Insurance<br />Health Insurance<br />Disability Insurance<br />Life Insurance<br />Long-Term Care Insurance<br />Little to No Risk<br />Conservative<br />RiskManagement<br />
    4. 4. Building Financial Security<br />Aggressive<br />Home Equity<br />RISK<br />Money Market Funds<br />Cash Value Life Insurance<br />Cash<br />Checking & Savings Accounts<br />Certificates of Deposit<br />Very Low Risk<br />Conservative<br />WealthAccumulation<br />“Reserves”<br />
    5. 5. Building Financial Security<br />Aggressive<br />Municipal Bonds<br />RISK<br />Government Bonds<br />Corporate Bonds<br />Moderate Risk<br />Bond Mutual Funds<br />Immediate Annuities<br />Income Producing Real Estate<br />Lower Risk<br />Conservative<br />WealthAccumulation<br />“Income Generating”<br />
    6. 6. Building Financial Security<br />Aggressive<br />Common Stock<br />High Risk<br />RISK<br />Stock Mutual Funds<br />Personal Business<br />Variable Annuities<br />Moderate Risk<br />Variable Life Insurance<br />ETF & Index Funds<br />Conservative<br />WealthAccumulation<br />“Growth”<br />
    7. 7. Building Financial Security<br />Aggressive<br />Very High Risk<br />RISK<br />Futures<br />Options<br />Collectibles<br />Commodities<br />Precious Metals<br />Conservative<br />WealthAccumulation<br />“Speculative”<br />
    8. 8. Building Financial Security<br />Aggressive<br />Wills & Trusts<br />RISK<br />Annuities<br />Conservative Asset Allocation<br />Income Producing Investments<br />Dividends from Cash Value Life Insurance<br />Long-Term Care Insurance<br />Low Risk<br />Conservative<br />WealthPreservation& Distribution<br />
    9. 9. Your Most Important AssetYour potential income to age 65<br />Annual Income<br />
    10. 10. Your Future Financial SecurityA secure financial future will not come by chance<br />I encourage you to ask yourself these questions:<br /><ul><li> How much am I saving now?
    11. 11. If I continue to save as I have in the past, how much money will I have in ten years?
    12. 12. Am I satisfied with my current level of savings?
    13. 13. Will I save systematically to reach my financial goals?</li></ul>When I say “saving systematically” I am really asking you to consider if you:<br /> ► Spend first and then save<br /> OR<br /> ► Save first and spend what is remaining<br />
    14. 14. Paying Yourself FirstA strategy for regular investing<br />What can you do today to help secure your financial future?<br />Pay yourself first by regularly investing some of your discretionary income. Dollar-cost averaging is a good systematic way to accomplish this.<br />What is dollar cost averaging?<br />Dollar-cost averaging is a strategy that involves investing a fixed amount of money in an investment at regular intervals. For instance, you could invest $50 from each paycheck. Dollar-cost averaging offers several key advantages to investors:<br /><ul><li>It’s smart – You automatically buy more shares when prices are low and fewer when prices are high. The result: Your average cost per share is less than your average price per share.
    15. 15. It’s disciplined – Dollar cost averaging takes the emotion out of investing and offers you the opportunity to take advantage of market highs and lows.
    16. 16. It’s sound – Dollar-cost averaging helps you avoid the pitfalls of market timing or investing based on guessing future market directions.
    17. 17. It’s prudent – Investing a lump sum can put a large amount of money at risk. When you use dollar-cost averaging, you’re placing smaller amounts at risk – spread out over time.</li></li></ul><li>Dollar-Cost AveragingA strategy for regular investing<br />Dollar-cost averaging may be for you if:<br /><ul><li> You can commit a fixed amount of money every month to an investment
    18. 18. You take a long-term perspective with you investments
    19. 19. You can resist the temptation to withdraw assets or stop monthly investments when the market is fluctuating or volatile</li></ul>This hypothetical example is for illustrative purposes only and is not intended to represent the performance of any particular<br />Investment product or real investor. Past performance cannot guarantee comparable future results; current performance may <br />be higher or lower.<br />
    20. 20. The Price of Procrastination<br />When it comes to saving money, time can be your best friend or your worst enemy. Procrastination can be expensive. The longer you wait to begin saving for retirement, the more you’ll have to save each month to build an adequate nest egg.<br />As this chart illustrates, someone who starts saving at 25 may be able to accumulate $1 million at 65 by saving just $286 per month. However, someone who waits until 35 to begin saving will have to contribute more than twice that amount monthly to make up for lost time.<br />
    21. 21. Take Action Today to Achieve Financial Security Tomorrow<br />The Process:<br /><ul><li> Identify your needs – The Needs Analysis
    22. 22. Build a solid financial foundation first – Risk Management
    23. 23. Asses your risks
    24. 24. Build your reserves
    25. 25. Commit to saving systematically – Wealth Accumulation
    26. 26. Save 10% to 20% of your annual income
    27. 27. Consider these points:
    28. 28. What is my tolerance for risk?
    29. 29. What are the impacts of taxes?
    30. 30. What is a reasonable or needed rate of return?
    31. 31. Build a solid retirement income strategy – Wealth Preservation & Distribution
    32. 32. Consider your estate planning needs – Wealth Preservation & Distribution</li></ul>WealthPreservation& Distribution<br />AssetAccumulation<br />RiskManagement<br />

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