Client retirement roadmap


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Retirement roadmap 408-854-1883

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Client retirement roadmap

  1. 1. Six Questions Steps for Your(All dollar amounts should be based on value today) Retirement Journey1. When do you plan to retire? Already retired Plan to retire at age ________ STEP Determine the likely times of your2. How much monthly income do you need?Base on current total monthly income of $ ____________ 1 retirement phases PRE- EARLY SEASONED MATURED SURVIVORSHIP RETIREMENT RETIREMENT RETIREMENT RETIREMENT YEARS PLANNING YEARS YEARS YEARS3. What is the current value of your retirement Decisions (Pension, Travel, Hobbies, Less Activities, Reduced Activities, Period Following a Soc. Sec., Changes) Activities Less Travel Health Considerations Hypothetical Death plans? (401(k), IRA, Profit Sharing) Now Retirement YearsYours $ ____________ Your Spouse’s $ ____________4. Current value of other assets you have STEP Examine lifestyle requirements specifically set aside for retirement?Total Assets for retirement $ ___________ 2 Basic Needs: Monthly needs that are essential to your standard of living5. Would you like to illustrate Social Security? Estimate Do not illustrate Additional Wants: Additional amounts Retirement planning can be like planning a journey to a new you desire—you would survive without destination—a place where thinking is different. Your concerns Enter benefits: Yours $ _______________ per month it—but you would be disappointed shift from, “How do I accumulate more funds?” to, “Will my Your Spouse’s $ _______________ per month funds last throughout my retirement years?” The investment6. Do you have any other retirement income? philosophies with which you have become familiar will change. STEP Determine total amounts from knownYours $ _____________ per monthYour Spouse’s $ _____________ per month 3 sources of retirement income Social Security Investing for Retirement Investing during RetirementPlease provide me a Retirement Road Map Pension Types of Investments and Objectives:Name: Date of Birth: Qualified Retirement Plans Maximize Accumulations Preserve Principal Annuities or Direct Income Appreciation and Earnings:____________________________ _____________ Seek Greatest Growth Seek Greatest IncomeSpouse: Date of Birth: Risks:____________________________ _____________ STEP Calculate remaining requirements Risk Based on TIme Horizons Seek Lowest RiskPhone OR E-mail:____________________________________________ 4 Desired Income Requirements less Known Sources of Income Defer Taxes Taxes: Save or Reduce TaxesThis information provided by: equals Remaining Requirements In planning a long trip, you would break it into segments with Remaining requirements will need to be provided by checkpoints along the way. Retirement planning can use your assets available for retirement. these same principles to be sure you reach your destination. Some of the decisions you make for your retirement journey Answer the Six Questions to order your personal must last a lifetime. What you need for your successful Retirement Road Map today! retirement planning is a Retirement Road Map!
  2. 2. How Long Should You PRE- EARLY SEASONED MATURED SURVIVORSHIPPlan For? RETIREMENT PLANNING RETIREMENT YEARS RETIREMENT YEARS RETIREMENT YEARS YEARSYour family tree may provide the best answer. Decisions (Pension, Travel, Hobbies, Less Activities, Reduced Activities, Period Following aDo your relatives live to an old age? How likely are you to live Soc. Sec., Changes) Activities Less Travel Health Considerations Hypothetical Deatheven longer—especially with today’s better health care and Now Retirement Yearsmedical advances? How long will your retirement last? Age Life Spans of Retirees 75 85 92 95 Retirement Phases Males Age 65 You plan trips in segments. Retirement is best planned by phases associated closely with your activities during those periods—you 25% still living1 will be more active when you first retire, and least active in later years. Retirement expenses vary directly with your activity levels. Age 75 85 92 95 Females Age 65 Age 75 40% still living1 85 92 95 How much do you need to maintain your lifestyle and have the retirement you’ve dreamed? Investments Couples Retirement Years—When You Are Receiving Income Both Age 70 Activity level is almost the same as before The current phase of your retirement should have 50% chance EARLY of one survivor2 RETIREMENT retirement—70% for basic needs and 20% for 1. Calculations based on Commissioners 1980 Standard Ordinary Mortality Table 2. Internal Revenue Reg. § 1.40(a)(9)-9, A-2 predictable income—income provided by very conservative additional activities—90% suggested. assets. More risk, and the opportunity for greater returns,Everyone wants a long, worry-free retirement. Retirees fear A decrease in activities—70% for basic needs SEASONED can be taken with assets set aside for later phases of youroutliving their assets! A common mistake for them is not RETIREMENT and 10% for additional activities— 80% retirement. The longer the time horizon prior to thatplanning for enough years. suggested. phase, the more aggressive you can be with those assets. Much less activities, often due to health—70%Will your “nest egg” be enough? MATURED for basic needs. Retirement Years—Future Years RETIREMENTCosts increase with each year of retirement. In retirement Later, when you enter the next phase of your retirement,planning, how long is just as important as how much. the assets intended for that phase should be switched to Lifestyle costs after losing your spouse are SURVIVORSHIP YEARS usually at least 60% of the prior income. investments “Nest Egg” Needed at Retirement for $1,000 per Month (Adjusted for Inflation) providing Years of Amount Needed predictable Retirement 5 $$$$$$ at Retirement $55,007 Decisions income. Assets for 10 $$$$$$$$$$$ 104,971 Pre-Retirement—Getting Ready each future phase, 15 $$$$$$$$$$$$$$$$ 150,355 The phase immediately preceding your retirement may be which now have a 20 $$$$$$$$$$$$$$$$$$$$ 191,577 called the “Decision Phase.” You make decisions about your closer time horizon, 25 $$$$$$$$$$$$$$$$$$$$$$$$ 229,021 pension and retirement plans that can affect your income for should be invested 30 $$$$$$$$$$$$$$$$$$$$$$$$$$$ 263,032 the rest of your life. Do you take your Social Security now, or get Retirement income will need to double with less risk. Assumes Inflation at 3% annually, “Nest Egg” is assumed to grow at 5% annually a little more by waiting a few years? Will you stop work, or just in 24 years if inflation continues as in the past.The longer you live, the more you will need! slow down for a few years? These decisions determine your retirement lifestyle changes.