A brief overview of investing for retirement

1. Smart Devotees
Finish Rich
A Presentation by Krishna Gopal das (ACBSP),
Executive Director ,
Vedic Community Foundation, Inc.

2. • VCF, a 501c3, provides donors with education
and tax advantage vehicles for contributing to
temples and related projects promoting Vedic
Culture.
• It provides projects worldwide with exposure to
donors along with cost effective processing of
donations to them including investment
securities, cash, checks, credit cards and other
assets.

3. Financial Management
Agenda:
Dabir Khas aka Rupa Goswami
Why invest and save
When to invest
What to invest in
How much to invest
Estate Planning (Condensed)
Conclusion

4. dabir khas aka Rupa Goswami

5. Why Invest & Save
2 x 3 x 5 x 365 x 20
=$219,000
The cost of Bhoga
Retirement

6. When to invest – The power of Compounding
$5,000 every year for the next 10 years at an average
rate of return of 10% equals $1,044,698 in 36 years
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
AxisTitle
Axis Title

7. What to invest in
Loan
 Savings Account
 CDs
 US Treasuries
 Govt. Agency Bonds
 Municipal Bonds
 Corporate Bonds
 Preferred Stock
 Emerging Market Debt
 Fixed Annuities
 Income Mutual Funds
Own
 Real Estate
 Commodities (Gold)
 Stocks
◦ Small cap
◦ Mid cap
◦ Large cap
◦ Value
◦ Growth
◦ Domestic
◦ Foreign
◦ Emerging Markets
 Equity Mutual Funds
 Variable Annuities

8. How much to invest (in what)
Cash, MM, CDs
Growth
Established
Income
Loan Investments
Bonds, Preferred Stock
Growth & Income
Dividend Stocks
A.G. 12% +
8-10%
6%-8%
4%-6%
1%-3%
Rate of ReturnPercentage of Portfolio
5-10%
15-20%
30%-40%
30%-50%
5%-10%
The average
rate of inflation
3%

9. Conclusion
Points to consider & understand in investing
• Risk Tolerance
• Timeline
• Values
• Purpose
• Different types of Risk
• Established Financial Goals
Thank you – Hare Krishna

10. Retirement Planning
Retirement Vehicles – Which one is right for you
Agenda
• Why save for retirement
• Retirement Vehicles Defined
• Retirement Vehicles Details
• 401k Rollover
• Why consolidate
• What is an RMD
• What happens when you pass on

11. Why Save for Retirement
• The Raising cost of Living- Inflation
• Potential short coming of Social Security
• Have the “ability” to retire
• Have stress free Vanaprastha life
• Independence & Freedom

12. What is your Actual income?
Giving 50% of your income example of
$1,000 weekly
Mortgage, taxes &
ins.
Car payment, gas
Ins.
Food, Education,
Clothing
Disposable income
give 50% of this

13. Work for life or Be Happy

14. Retirement Vehicles
Defined
• IRA (Individual Retirement Account)
• Roth IRA
• SEP IRA (Simplified Employee Pension Plan)
• SIMPLE IRA (Savings Incentive Match Plan for Employees)
• 403B Saving Plan for public Ed. Org. & non Profits
• 401K Employer Sponsored Retirement Plan
• Profit Sharing & Money Purchase Plan

15. IRA (Individual Retirement Account)
Contribution Guidelines
• Investments Grow Tax deferred
• Contributions from Earned Income
• Contribution Limits - $5,500 + $1,000 if 50 & older
• Tax deductible contribution
• Can contribute even with a Company 401K*
• MAGI $56,000 Single - $110,000 Married
• Can contribute up to age 70.5 with earned income
• Deadline to contribute – April 15th 2015
Withdrawal Guidelines
• 59.5 years of age without 10% penalty
• Exceptions –Disability, first time owner, higher Ed., military
reservist, Med exp. Above 7.5% of AGI, Health Insurance
Premiums, Equal payments over life time
• Withdrawal is taxed as earned income
• 70.5 Required Minimum Distribution (RMD)

16. Roth IRA
Contribution Guidelines
 Investments Grow Tax Free
 Contribution Limits - $5,500 + $1,000 50 & older
 After Tax Contribution
 Full contribution if MAGI $107K or $169K married
 No age limit on contributions
 Contributions are from earned income
 Deadline to contribute – April 15th 2015
Withdrawal Guidelines
• 59.5 years of age without 10% penalty
• Exceptions –Disability, first time owner, higher Ed., military
reservist, Med exp. Above 7.5% of AGI, Health Insurance
Premiums, Equal payments over life time
• Withdrawals are tax free
• No RMD

17. Simplified Employee Pension Plan
Sep IRA
Contribution Guidelines
• Best used by self employed business owner
• Contributions are tax deducible
• Investments grow tax deferred
• Contributions up to 25% of Compensation
• Contribution limits $52,000 of $260,000
• Contribution deadline Company tax filing date
Withdrawal Guidelines
• Same restriction as IRA
• Taxes as earned income

18. SIMPLE IRA
Guidelines
 Best used for companies of 25 or less
 Contributions are pre-tax
 Either dollar for dollar contribution of 3% match
or 2% of all eligible employees
 Employees up to 100% compensation or $11,500
 50+ $14,000
 Investments grow tax deferred
 Withdrawals are taxed as earned income
 25% early withdrawal penalty first two years
 Plan Set up between January 1 and October 1 of tax year
 More cost effective to establish than 403B or 401K

19. 403 (b) Plan
Guidelines
 Typically used by Educational and Non-Profits org.
 Individual contribution limit is $16,500
 Total maximum combined contribution is $49,000
 Contributions are taxed deferred
 Withdrawals are taxed as earned income

20. 401 (k) Plan
Guidelines
 Typically used by larger corporations
 Can be a one person “UniK”
 Flexible plan with employer contributions
 Individual can contribute up $17,500
 Maximum combined contribution $52,000
 Employer and Employee can deduct contributions pre tax
 Investments generally limited to Mutual funds
Withdrawal Guidelines
 Same as other plans
 Can borrow against the balance

21. Profit Sharing & Money Purchase
Guidelines
 Flexible Plan designed to reward long term
employees
 Employer can contribute up to 25% of
compensation or $52,000
 Contributions are tax deductible
 Can hold all types of investments
Withdrawal Guidelines
 Same as other plans

22. 401k Rollover
What is it and why
 Moving investments from a former company
plan to IRA
 Protects assets should the company change
 Provides for greater investment choices
 Gives more individual control
 Tax advantges for dependents

23. Why Consolidate Plans
Benefits
 “Don’t keep all your eggs in one
basket”
 “But keep them all on the same
ranch”
 Investment overlap
 Better oversite and management
 Easier for dependents dealing with
estate

24. Required Minimum Distribution
RMD Explained
 Must Begin Distribution at 70.5 years old
 Taxed as earned income
 Based on life expectancy and total amount in
plan
 Increases every year
 Continues to pay out to dependents
 Does not apply to Roth IRA
 You can disclaim the inherited IRA

25. Retirement Plan at passing
What happens
 Becomes a Decedent IRA
 Distributions Begins or continue
 Based in combined life expectancy
 Taxed to the Dependent as ordinary income
 Not subject to the early withdrawal 10% penalty
 Seek a qualified professional

26. Estate Planning
(condensed)
Agenda:
25 Documents –You Need Before you Die
Online Wills or a real Attorney
Advantages of a Trust
Charitable Financial Gifting
Conclusion – Work with an Estate Planning
Attorney

27. Essentials
-Will & Trust
-Letter of instruction
Bank Accounts
-List of Accts
-Name & Passwords
-Safe Deposit Box
Life Ins. & Retire
-Ind. Accounts
-401K Accounts
-Pension documents
-Annuity contracts
Marriage & Divorce
-Marriage License
-Divorce Papers
Health-Care Essentials
-Medial History
-Health-care directive
-Release Authorization
-Living Will
-Do not resuscitate order
Proof of Ownership
Housing Deed
Vehicle titles
Investment Holdings
Tax Returns
I am going
to live forever
(not)

28. Online Wills & Trust

29. Advantages of a Trust
1. Avoid Probate
2. Accept a “Pour over Will”
3. Management from the Grave
4. Protect your Estate
5. Provide funds for Special Needs
6. Provide funds for Education
7. Avoid Taxes
8. Provide funds for Charity

30. Work with an Attorney & a Financial Advisor
Thank you- Hare Krishna

31. Conclusion
Chant Hare Krishna and be happy