The document discusses strategies for making retirement savings last throughout retirement. It recommends delaying taking Social Security payments until age 70 for increased monthly checks. It also suggests balancing one's portfolio among stocks, bonds, and real estate for diversification and income. The document warns of potential retirement scams and provides tips for avoiding fraud. It notes that withdrawing funds early from 401(k)s incurs penalties and lost growth potential.

1. Making Retirement
Funds Last

2. Making Retirement Savings Last
About the PICPA
The Pennsylvania Institute of Certified Public
Accountants (PICPA) is a professional association of
more than 22,000 members working together to
improve the profession and serve the public interest.

3. Making Retirement Savings Last
Reality Check
• Many are unprepared for the reality of retirement
• Life expectancies are going up—retirement may last
longer than you expect (25-30 years)
• How much you withdrawal early on in your
retirement will greatly impact your later finances

4. Making Retirement Savings Last
Delay Taking SS Payments
• If you delay receiving your Social Security benefits
until after your retirement age, your check will
increase
– If you wait until 67, there’s an 8% increase
– If you wait until age 70, there’s a 35% increase
• You must start collecting at age 70

5. Making Retirement Savings Last
Balance Your Portfolio
• Put money into a diversified portion of stocks,
bonds, and real estate that pays dividends
• Ladder your bonds
– In your portfolio, ensure that your fixed income
securities have significantly different maturity
dates

6. Making Retirement Savings Last
Immediate Annuities
• Put money in an insurance contract that pays a fixed
rate of return
• Comparison shop!
• Annuities tie up your money—you’ll have no access
to it for a certain period of time

7. Making Retirement Savings Last
Other Options
• Reverse mortgages
• Only collect the interest from certain retirement plans
• Longevity insurance

8. Making Retirement Savings Last
Tips
• Get good, objective advice
• Monitor your funds yearly
• Try to live on non-retirement assets to let your
401(k) and IRAs grow as long as possible

9. Making Retirement Savings Last
Early 401(k) Withdrawals
• There is a 10% penalty for early distributions
– Early is anything before the age of 59 ½
– Regular income taxes must also be paid on amounts
withdrawn
• Some exceptions:
– You die and bequeath the account
– You become disabled
– You terminate employment and are 55+ years old

10. Making Retirement Savings Last
Early 401(k) Withdrawals
Things to consider:
– Many employers only allow early withdrawals in
cases of financial hardship
– You lose the potential investment growth on the
money you withdrawal
– You may not be able to reinvest your full
withdrawn amount because of contribution
limits

11. Making Retirement Savings Last
Be Wary Of Fraud
Types of Scams:
• Pyramid Scheme: claims to turn a small investment into a
large return
• Ponzi Scheme: a central fraudster collects money from new
investors to use as “returns” on other investors
• Rx Drug Scam: discount drug cards are offered unsolicited
• Audit Scam: unsolicited offer to review documents containing
personal information
• Plus many more!

12. Making Retirement Savings Last
Fraud Red Flags
• Guaranteed performance on an investment
• Unregistered individuals selling unregistered securities
• Overly consistent returns
• No prospectus, no offerings, no stock symbols on stocks
being sold
• Pushy sales people or high pressure situations

13. Making Retirement Savings Last
Avoiding Fraud
• Are your investment professionals licensed?
– Check to see if the license was ever suspended or revoked
• Ask questions!
– Scammers count on you not bothering to investigate
• Be wary of unsolicited offers!
– Emails, phone calls, letters, and more
• Have payments direct deposited to avoid theft
• If it sounds too good to be true, it probably is!

14. Making Retirement Savings Last
Resources
• The PICPA: www.picpa.org/consumers
• Social Security: www.ssa.gov
• AARP: www.aarp.org

15. Making Retirement Savings Last
Questions?