Exploring your options for a quality retirement

ExploringYour Options
for a Quality Retirement

THANK
YOU FOR
JOINING US!
OUR HOPE TODAY IS TO PROVIDE YOU WITH
SOME VALUABLE INFORMATION, HAVE SOME
FUN, AND ENJOY THIS NEXT HOUR.
WE WOULD LIKE TO WELCOME
YOU TO TODAY’S WORKSHOP
2
2016 | The Society for Financial Awareness

3
EVALUATION FORM
Please review this
form. I will be picking
these up at the end
of the workshop.
Do note – the
backside is to be used
for your specific
questions and issues.

The Key to a Quality
Retirement Is You!
When you retire you’ll
either have the money or
reasons why you don’t.
It’s all about planning.Your
behavior and attitude
today will impact your
cash results for tomorrow.
4

What’s Your Financial Personality?
 Spender – Every month there’s nothing left. Living paycheck to paycheck. No savings, little
put away for retirement, no emergency fund.
 Too Busy – who has time to plan for the future? Living day to day for the moment. Hectic,
out of control.
 Over Analytical - Analysis leading to Paralysis. For whatever reason, too busy creating
spread sheets and doing research as the years go ticking by. Can’t seem to “pull the trigger”.
 Ready, Fire, Aim Investor – has money, wants shortcuts. Take a hot tip and buy. Very little
due diligence; little if any research. Impulsive.
 Concise, Precise, Focused, Act Together – has a plan, follows the proper steps. Has a
budget. Has goals - focused, deliberate, “walks the talk”.
5

Wealth Building is Eroded by…
Debt
Inflation
Taxes
Healthcare Expenses
6

Dealing With
Debt
The privilege of
borrowing other
peoples money
greatly reduces your
ability to save!
$808
Billion
$1.7
Trillion
$2.4
Trillion
1990 2000 2010
7
http://www.federalreserve.gov/

The High Cost Of
Debt
Even at low interest rates,
you could be paying more
than double of what you
borrowed!The blue
cylinders represent a
principal balance while
the orange cylinders
represent interest paid.
15% 22%
$17,839
$47,087
8
This is a hypothetical example for illustrative purposes only.

Inflation is ‘Values’ Natural Predator
$100
$617
$0 $100 $200 $300 $400 $500 $600 $700
1970
2016
9
This example was secured from http://www.usinflationcalculator.com/, according to their online calculator
something that cost $100 in 1970 would cost $617 in 2016. Historically, Inflation increases at a rate of 3% each year.

What Is Your Future Tax
Liability?
You have options to
how you invest for
retirement. In some
instances you can
invest pre-tax dollars,
and in others, after-
tax dollars.
10

Your Tax Situation WILL Change
 The key is to understand that by the time you retire your current
deductions may be unavailable.
 401(k)
 Mortgage Interest
 Children
 This can potentially result in your post retirement tax bracket being
similar to your pre-retirement tax bracket.
 You can mitigate your tax obligations, if you plan accordingly.
11

Planning for Health Care is important
The truth is… we get
old. Our health
concerns widen as we
enter retirement.
Health care is an
important
consideration in your
golden years.
12

T H I N G S TO CO N S I D E R W H E N P L A N N I N G R E T I R E M E N T
Considerations
13

Social Security vs. Self Security
 Question: By the time we do retire, what percentage of
your total monthly income will come from Social Security?
 Question: At Retirement, what will be the “purchasing
power” of tomorrow’s dollars vs. today’s?
14

Inspect What You Expect
Social Security is a
federal insurance
program that offers
supplemental funds
to Americans during
their retirement.
15

Different Income Streams
 Stocks
 Bonds
 Pensions and qualified plans - 401(k)
 Individual Retirement Accounts (IRA)
16

401(k) Qualified Plan
Contribution – Do it!
Your deposits build up for
retirement. Your
contributions reduce your
taxable income.
You have the ability to re-
allocate your portfolio
without any taxable
consequences.
All growth of the entire
portfolio is tax deferred
(your deposits, employer
match if applicable, and
potential investment
growth) .
Withdrawals will be taxed as
ordinary income. If
withdrawals are made prior
to age 59 and ½ a 10%
penalty may apply.
17

Pre-Tax vs. After-Tax Considerations
 Diversify your retirement contributions between pre-tax and after-tax
retirement plans.
 401(k) plan
 you invest pre-tax money, but pay taxes when you withdraw
 Roth IRA
 you invest after-tax money into your Roth IRA, and are not taxed on the
money when you withdraw
 At distribution time, this strategy could be critical to your lifestyle during
those golden years if withdrawals are considered qualified.
18

Pre-Tax Investments After-tax Investments
 Tax-deferred investments like 401(k)
and Traditional IRA
 Allows you to postpone taxes until
you begin withdrawing money
 A Roth IRA is an after-tax investment
that can create a source of tax-free
income in the future.
 Contributions are not tax-
deductible in your saving years, but
tax-free withdrawals can help
reduce your total taxable income
when you reach retirement.
Pre-Tax vs. After-Tax
19

Food For Thought…
 You, not your employer; you, not the government, is responsible for
your retirement.
 When should you do your retirement planning?
 Stay diversified- use asset allocation.
 Create “balance” utilize pre-tax and after-tax strategies.
 Inspect what you expect… monitor your results constantly.
 Planning is the key. Being busy and not paying attention is a cop out…
It’s always about you – stay on it!
20

21
EVALUATION FORM
Please take a
moment to
complete. I will be
collecting these
in a moment.
If you need a pen,
please let me know.

Thank you for your time!
Please complete your Program Evaluation.
We will be picking them up shortly.
Now would be a good time for me to answer
any particular questions you may have.

Exploring your options for a quality retirement

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