11 Retirement Mistakes


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A Brief review of why everyone needs a written financial plan, one that has been updated within the last 12 months and the 11 mistakes that you do not want to make in your financial plan.

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11 Retirement Mistakes

  1. 1. There are 11 Big Mistakes Employees Retiring Or Changing Jobs Make... And This Story is About How To Avoid Them! According to the Social Security Administration, 96% of Americans are not able to fund a retirement that will last for their lifetime… allowing them to live the lifestyle they wish to live! Are you in the top 4% Has Your Retirement Plan Changed?
  2. 2. You Cannot Afford To Make ANY Mistakes! <ul><li>With the price of your stocks all over the place, how do you decide if you should sell, buy some or wait? </li></ul><ul><li>How should you handle your company retirement benefits? Should you take a lump sum distribution? If so, how? And when? </li></ul><ul><li>Are you protected from traps the IRS has set, as well as from other retirement financial disasters that can actually cause you to lose much more than the IRS ever could take? What about taxes & penalities? </li></ul>
  3. 3. You Cannot Afford To Make ANY Mistakes! <ul><li>What would happen if someone became ill and needed long term nursing care? Who pays? How much? What if you don’t have enough money? What does the government do? Do you have a plan? </li></ul><ul><li>Are your assets titled in the absolute, most dangerous way? Many advisors are giving the wrong advice! </li></ul><ul><li>What kind of insurance should you now have? How much do you need? Why do you need it? </li></ul>
  4. 4. Avoid The Money Traps That Are Set For You! <ul><li>Do you know if you will be likely to have enough money, after taxes, to live your life the way you wish to...For as long as you live? What is your withdrawal rate? Can it change? By who? </li></ul><ul><li>Have you analyzed all the options and choices available to you so you can make educated decisions from a fully informed standpoint? </li></ul>Listening To The Wrong People! Ready for Mistake Number One!
  5. 5. Taxes Pay them Now – Pay Them Later? Not Understanding The Tax Consequences For Investments, IRA's, Pensions, Etc.! “ Uncle Sam&quot; Is A Relative You Should Give As Little As Possible To!” Could You Use A Few Hundred (Or A Few Thousand) Dollars Extra Cash Each Month? The laws are changing and Uncle Sam wants More Money! Mistake Number Two
  6. 6. Are You Losing or Growing? Choosing The Wrong Pension Settlement Option ( 5 Choices)! Will You Have To Go To Work, Because you Outlived Your Retirement Money! ? Please promise us you'll not take &quot;canned&quot; advice, particularly when it comes to monumental decisions like choosing a retirement pay out! Mistake Number Three
  7. 7. Know Before You Need It! Mistake Number 4 Misunderstanding What Medicare And Social Security Does And Doesn't Pay For! The Government Is Not Going To Take Care Of You! And, you must have a plan to address the almost unknown areas that could cause your family some real problems! Don't wait until you've been completely wiped out before you figure them out!
  8. 8. A Tax Trap To Look Out For! Mistake Number Five Getting Caught By The 20% Withholding Penalty For Lump Sum Distributions! How Do You Avoid This or Should You?
  9. 9. Who Owns the Assets? Mistake Number 6 Owning Your Assets The Wrong Way! For example , the most common way that retirees own their home, investments, bank accounts, etc., is in joint tenancy with rights of survivorship .   While this is a simple way to own assets, in many cases, it could be a huge mistake!!!
  10. 10. Why JTWROS May Be Dangerous: <ul><li>   You could pay way more in estate taxes than necessary! </li></ul><ul><li>(We have an executive who came in to see us after his parents died, and wanted to know if we could help him save the 45% of his parent's estate being confiscated by the IRS, which of course was hopeless, since it was all after the fact.) </li></ul><ul><li>If one of you has a liability problem (a car accident, for example) both of you could lose everything ! </li></ul><ul><li>If your marriage goes down the tubes , they can clean out the accounts! </li></ul>
  11. 11. Why? Well, some of the reasons are: <ul><li>If your kids are on the accounts, if they go bankrupt or whatever, YOU could lose YOUR money </li></ul><ul><li>Many employees put their kids on some of their accounts , which later ends up costing gift taxes, and an screw up your family's finances if someone goes into a nursing home. </li></ul>Joint tenancy is, in many cases, a financial disaster waiting to happen!
  12. 12. TAX Traps! Mistake Number 7 Mi sunderstanding Or Not Knowing All The Tax and Other Traps That Surround Your Stock Options are Like Sharks Circling Their Prey! &quot;Alternative Minimum Tax” (AMT)? Have you Heard of It? Are they going to do away with it?
  13. 13. Taxes & Inflation Mistake Number 8 Thinking &quot;Risk&quot; Just Involves Losing Principle! 4.00% interest earned x 28% tax = 1.12 % lost to taxes 2.88% net after tax yield . less 3.50 % inflation Negative (0.62%) True return Can you afford the Guarantee with no upside?
  14. 14. What Do YOU Need and Why? Mistake Number Nine Paying For The Wrong Kinds, and Wrong Amounts, Of Insurance! Many of our retired clients find they can get more coverage in the areas they do need , and eliminate or reduce coverage on stuff they don't need , and save hundreds or thousands of dollars in the process!
  15. 15. Whoops? Mistake Number 10 Planning For Your Retirement When You Are Already Retired! We have people coming in our office, constantly asking the same question: “ We are going to retire next year, will we have enough money to retire and live the same lifestyle for the rest of our lives?&quot; Depends!
  16. 16. Do You Now Have a Written Financial Plan? So, if you're not yet retired, you need to do some detailed planning right NOW! Don't wait until you are retired. Now, if you're already retired, it's never too late to start or update your planning. Which brings us to the most important mistake of all to avoid: Mistake Number 11 Not Doing Consistent, Careful, Ongoing Planning!
  17. 17. Design Your Financial Game Plan! <ul><li>Figure out where you are today . </li></ul><ul><li>Figure out where you want to be . </li></ul><ul><li>Get a true understanding of the options you have available to you. (Not from biased sources.) </li></ul><ul><li>Develop a plan that will provide the right &quot;course&quot; to follow. </li></ul>
  18. 18. Design Your Financial Game Plan! <ul><li>Make the changes necessary to get the plan going. </li></ul><ul><li>Watch your progress , and make the proper adjustments to keep the plan &quot; on course &quot;. </li></ul>
  19. 19. Common Thread! Or, like most of us, are you &quot;winging it&quot; as you go along??? In all the years we've been helping people win the “Game of Money”, and when studying the characteristics of families who are truly financially independent, we find one common theme: 
  20. 20. Common Thread! Not their age, nor occupation, nor sex, nor income, nor any of those things. None of those... The one common attribute is that they make a constant effort to plan for their future .
  21. 21. 70-Minute Asset Management Review A Free Consultation To Find Out Exactly What You Are Feeling About Your Money , A &quot;Diagnosis&quot;, If You Will. NO PRESSURE. NO SALES. NO HASSLES! In Today's Skeptical And Fearful Society, Any Attempt To Pressure Someone , Or Trying To Sell Them Something That Isn't Right , Will Assure The Prospect Will Run For The Hills!
  22. 22. Get Control Back Through Planning! Life is too short to &quot;fight&quot; people who don't really want to PLAN FOR THE FUTURE. I hope this story about building a map for your life's road makes sense. I also hope you are thinking a lot about your own life , and whether or not you feel in control of it . Or whether it is controlling you!
  23. 23. What’s the Next Step? <ul><li>No Plan – don’t let today go by without calling and making an appointment to get a FREE Financial Needs Analysis that includes becoming debt free at retirement! </li></ul><ul><li>Old Plan – pull it out and review it. Is this the plan you are working? If Not – toss it and consider you have no plan and follow above. </li></ul><ul><li>Working Current Written Plan – get it update the world has changed in the last year! </li></ul>
  24. 24. Who Do You Recommend <ul><li>Everyone situation is different </li></ul><ul><li>All Solutions are Fact Dependent </li></ul><ul><li>There is no One right answer </li></ul><ul><li>Take an Educational Approach </li></ul><ul><li>Don’t Pay a fee for a Plan </li></ul><ul><li>Let your advisor compete for your business </li></ul><ul><li>Need a recommended professional? </li></ul>
  25. 25. Trusted Advisor <ul><li>Email me at [email_address] in 100 words or less tell me your story, what part of the country you live, and best day and time for appointment </li></ul><ul><li>I will email you the name and number of a trusted advisor that will meet with you a minimum of three times, prepare you a plan, make suggested changes, and help you implement your plan within a 30 day period. </li></ul>
  26. 26. Get Started today! <ul><li>The Time Value of Money </li></ul><ul><li>Time and Consistency </li></ul><ul><li>The Current Market Conditions </li></ul><ul><li>Dollar Cost Averaging </li></ul><ul><li>Guaranteed Lifetime Income </li></ul><ul><li>Participation in Market recovery </li></ul><ul><li>And the Theory of Decreasing Responsibility </li></ul><ul><li>Any good advisor will cover these points and much more in the three interview! </li></ul>
  27. 27. Hope You Enjoyed My Story <ul><li>Vote for me and make a commitment to get your plan in writing this month! </li></ul><ul><li>Let me know your success stories: </li></ul><ul><li>Email: [email_address] </li></ul><ul><li>Enjoy you Journey to Your Retirement! </li></ul>