Retirement planning is important whether retirement is near or far. It involves planning financially but also lifestyle choices like how to spend time. Key aspects of retirement planning include determining necessary income, current savings, annual savings needs, accumulation and distribution stages. Experts recommend saving 70-90% of pre-retirement income to maintain lifestyle. Common expenses to plan for include medical costs, life insurance, and wills. Starting retirement planning early allows time for adequate savings. The case study highlights how failing to plan led to an uncertain retirement for a couple who enjoyed life without saving sufficiently.
This document discusses retirement planning and the different phases of retirement. It outlines common reasons people retire such as health, caregiving responsibilities, or job loss. The planning phase involves preparing financially for retirement over 20-30 years and getting personal affairs in order. The adjusting phase entails developing interests outside of work and adjusting to a new lifestyle and schedule. The enjoyment phase is focused on pursuing hobbies, staying active and using discounts. The settling in phase recognizes that some retirees live actively while others struggle with purpose and health issues in retirement.
1) The document outlines the steps for retirement planning which include identifying goals and expenses, inventorying assets and income sources, analyzing the likelihood of reaching goals, creating an action plan, and monitoring the plan.
2) It emphasizes prioritizing retirement objectives from most to least important and quantifying essential versus non-essential expenses.
3) Key retirement income sources like Social Security, pensions, and investments are discussed along with ensuring reliable income will cover minimum expenses and filling any gaps.
Laura Scharr-Bykowsky presented on retirement planning and improving financial health. She discussed typical symptoms of being unprepared for retirement like inadequate savings and no clear retirement vision. She emphasized the importance of doing a retirement calculation and "gap analysis" to determine savings goals. Early savers have a significant advantage over late savers due to compound interest. Her recommendations included developing a retirement vision, estimating expenses, analyzing savings gaps, maximizing retirement accounts and Social Security benefits, and reconsidering retirement dates or expenses if savings fall short of goals.
Many people put off retirement planning and do not start saving early enough. Retirement planning is important to maintain financial independence later in life. With increasing lifespans and medical costs, and declining interest rates, people will need to start retirement planning decades in advance. The document provides tips on calculating retirement needs based on current and projected expenses accounting for inflation, building an emergency fund, allocating assets appropriately based on risk tolerance and time horizon, and ensuring adequate insurance coverage. Proper retirement planning requires starting early and maintaining discipline in investments over the long term.
The document discusses the importance of retirement planning. It notes that people often prioritize spending over saving for retirement. Retirement planning is crucial because lifestyle expenses will increase significantly with inflation over decades. Medical costs alone could increase over 10 times with inflation factored in. The document uses an example to show that for monthly expenses of 1 lakh currently, the required retirement corpus to maintain that lifestyle would be over 30 crores accounting for inflation over 30 years until retirement at age 65. Proper retirement planning through disciplined long-term investing is necessary to achieve adequate savings for retirement.
Why Retirement plan ( Things to remember while planning for retirement )Singharoy Investment
The document discusses abuse and neglect of elders in India. It finds that 42% of elders felt disrespected, 37.8% were verbally abused, and 28.2% experienced neglect or economic abuse. The main abusers were sons and daughters-in-law, and over half of abused elders did not take action. The main context for abuse was related to property. Most elders felt that regular income was the only way to escape abuse. The document also discusses the importance of retirement planning and saving systematically from an early age in order to financially secure one's retirement years.
Financial planning is a long-term process of managing one's finances to achieve goals. It provides a roadmap to financial well-being and sustainable wealth creation. Many misconceptions exist, such as that it only involves budgeting or is only for the wealthy. Financial planning is needed due to risks like living too long in retirement, changing lifestyles, inflation, and lack of social security. It involves understanding assets, liabilities, priorities, timelines, and appropriate investment vehicles. Starting financial planning early allows greater benefits of compounding returns. Using systematic investment plans smooths out market volatility for better long-term returns. Financial planners can help develop and implement customized plans.
Financial Planning - Helping You Sail Successfully into the FutureFrank Wiginton
This document summarizes the key aspects of developing a comprehensive financial plan. It discusses that a financial plan should address goals, assets, debts, taxes, investments, insurance, estate planning and more. It outlines the multi-step process of developing a plan, including initial interviews, data gathering, analysis, draft reviews and implementation. It emphasizes that a good financial plan takes over 20 hours to fully prepare. The document also provides background on the author, Frank Wiginton, a certified financial planner who believes comprehensive planning is needed to make appropriate financial recommendations and decisions.
This document discusses retirement planning and the different phases of retirement. It outlines common reasons people retire such as health, caregiving responsibilities, or job loss. The planning phase involves preparing financially for retirement over 20-30 years and getting personal affairs in order. The adjusting phase entails developing interests outside of work and adjusting to a new lifestyle and schedule. The enjoyment phase is focused on pursuing hobbies, staying active and using discounts. The settling in phase recognizes that some retirees live actively while others struggle with purpose and health issues in retirement.
1) The document outlines the steps for retirement planning which include identifying goals and expenses, inventorying assets and income sources, analyzing the likelihood of reaching goals, creating an action plan, and monitoring the plan.
2) It emphasizes prioritizing retirement objectives from most to least important and quantifying essential versus non-essential expenses.
3) Key retirement income sources like Social Security, pensions, and investments are discussed along with ensuring reliable income will cover minimum expenses and filling any gaps.
Laura Scharr-Bykowsky presented on retirement planning and improving financial health. She discussed typical symptoms of being unprepared for retirement like inadequate savings and no clear retirement vision. She emphasized the importance of doing a retirement calculation and "gap analysis" to determine savings goals. Early savers have a significant advantage over late savers due to compound interest. Her recommendations included developing a retirement vision, estimating expenses, analyzing savings gaps, maximizing retirement accounts and Social Security benefits, and reconsidering retirement dates or expenses if savings fall short of goals.
Many people put off retirement planning and do not start saving early enough. Retirement planning is important to maintain financial independence later in life. With increasing lifespans and medical costs, and declining interest rates, people will need to start retirement planning decades in advance. The document provides tips on calculating retirement needs based on current and projected expenses accounting for inflation, building an emergency fund, allocating assets appropriately based on risk tolerance and time horizon, and ensuring adequate insurance coverage. Proper retirement planning requires starting early and maintaining discipline in investments over the long term.
The document discusses the importance of retirement planning. It notes that people often prioritize spending over saving for retirement. Retirement planning is crucial because lifestyle expenses will increase significantly with inflation over decades. Medical costs alone could increase over 10 times with inflation factored in. The document uses an example to show that for monthly expenses of 1 lakh currently, the required retirement corpus to maintain that lifestyle would be over 30 crores accounting for inflation over 30 years until retirement at age 65. Proper retirement planning through disciplined long-term investing is necessary to achieve adequate savings for retirement.
Why Retirement plan ( Things to remember while planning for retirement )Singharoy Investment
The document discusses abuse and neglect of elders in India. It finds that 42% of elders felt disrespected, 37.8% were verbally abused, and 28.2% experienced neglect or economic abuse. The main abusers were sons and daughters-in-law, and over half of abused elders did not take action. The main context for abuse was related to property. Most elders felt that regular income was the only way to escape abuse. The document also discusses the importance of retirement planning and saving systematically from an early age in order to financially secure one's retirement years.
Financial planning is a long-term process of managing one's finances to achieve goals. It provides a roadmap to financial well-being and sustainable wealth creation. Many misconceptions exist, such as that it only involves budgeting or is only for the wealthy. Financial planning is needed due to risks like living too long in retirement, changing lifestyles, inflation, and lack of social security. It involves understanding assets, liabilities, priorities, timelines, and appropriate investment vehicles. Starting financial planning early allows greater benefits of compounding returns. Using systematic investment plans smooths out market volatility for better long-term returns. Financial planners can help develop and implement customized plans.
Financial Planning - Helping You Sail Successfully into the FutureFrank Wiginton
This document summarizes the key aspects of developing a comprehensive financial plan. It discusses that a financial plan should address goals, assets, debts, taxes, investments, insurance, estate planning and more. It outlines the multi-step process of developing a plan, including initial interviews, data gathering, analysis, draft reviews and implementation. It emphasizes that a good financial plan takes over 20 hours to fully prepare. The document also provides background on the author, Frank Wiginton, a certified financial planner who believes comprehensive planning is needed to make appropriate financial recommendations and decisions.
This document provides an overview of retirement planning and considerations. It discusses starting retirement planning early, estimating expenses and income, identifying savings goals, using tax-advantaged accounts like 401ks and IRAs, factors like inflation, diversifying investments, and protecting against risks with insurance. The key aspects are starting retirement planning as soon as possible, crunching numbers to calculate savings needs, and implementing a long-term strategy using various savings vehicles and accounts.
This document provides an overview of money management skills and concepts. It discusses creating a personal balance sheet and cash flow statement, developing a personal budget, and connecting money management activities to personal financial goals. Major topics covered include determining assets and liabilities, tracking income and expenses over time, and using a budget to spend and save effectively.
This document provides an overview of financial planning, including what it is, its objectives, why it is needed, and the benefits it can provide. Financial planning is a process that identifies an individual's financial needs and goals over time and ensures they have the necessary funds available when needed. It involves savings and investment planning, asset allocation, insurance, taxes, retirement, and estate planning. The benefits of financial planning include having money available for needs and emergencies, maintaining one's standard of living in retirement, tax efficiency, funding education and marriage, and peace of mind.
The document provides an overview of budgeting fundamentals including the benefits of budgeting, defining a budget, and the three main components of a budget: income, expenses, and savings. It discusses where to start when developing a budget, including understanding your spending, priorities, and building a budget that allows savings. The document also covers identifying and reducing expenses through evaluating expense types, negotiating costs, and managing variable personal expenses. Finally, it outlines the steps to create a budget, including setting up automated accounts to organize finances and track spending.
Financial planning involves identifying an individual's financial needs and goals over time and developing a strategy to meet those needs and goals. The key objectives of financial planning are to identify monetary requirements, prioritize financial needs, assess one's current financial position, plan savings and investments to achieve goals, and optimize returns through diversification. Systematic investment plans (SIPs) allow regular investing of small amounts in mutual funds and are an effective way to benefit from rupee cost averaging and the power of compounding returns over the long term. Insurance provides protection from life's uncertainties and ensures one's dependents are provided for in times of need.
Personal Financial planning & ManagementAshish Ongari
Personal finance is the financial management which an individual or a family unit performs to budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.
1) The personal financial planning process involves 5 steps: evaluating your current financial health, defining goals, developing a plan of action, implementing the plan, and reviewing/revising the plan over time.
2) Financial goals should be specific, assign a cost, and have a target date. Goals can be short, intermediate, or long-term and help motivate sticking to the financial plan.
3) Developing a plan requires determining actions needed to achieve goals like cutting expenses, increasing income through career choices, starting to save and invest, and ensuring flexibility, liquidity, and protection from unexpected costs.
1. The document discusses planning and saving for retirement, including estimating costs of one's desired lifestyle and identifying sources of retirement income such as pensions, 401ks, IRAs, Social Security, and other savings vehicles.
2. It explains compound interest and its power to grow savings over time, demonstrating concepts like the Rule of 72.
3. The importance of starting to save and plan for retirement early is emphasized.
The document discusses retirement planning and provides guidance on estimating retirement costs and investment options. It notes that people should plan early for retirement as the corpus needed is significant. Monthly retirement expenses of Rs. 20,000-80,000 would require investments of Rs. 483572-1934288 today at 8% return to last 30 years in retirement. Investment avenues discussed include PPF, SIPs, debt funds, annuity plans, and senior citizen savings schemes. Proper planning is necessary to ensure funds are available to live comfortably after stopping work.
This document discusses the importance of financial education and provides an overview of basic financial concepts. It is published by Primerica, a financial services company, to help consumers overcome common financial challenges through knowledge. The document encourages readers to take control of their finances by learning principles like paying themselves first, eliminating debt, investing for the long term, and starting early to benefit from the power of compound interest and time. It presents savings and investment strategies as ways for working Americans to achieve financial security and independence.
This document outlines topics that will be covered in a financial planning course, including how to plan an investment portfolio, understand assets and liabilities, ensure adequate insurance coverage, learn about different asset classes and risk appetite, plan for post-retirement income and children's education, relate investments to goals, and achieve financial peace and happiness. It also discusses concepts like the new economy, goal setting, overcoming challenges, and inverting the savings equation from expenses-focused to savings-focused.
The document provides guidance on financial planning for retirement. It discusses estimating longevity and inflation, investing for retirement, asset allocation strategies, withdrawal rates, and taxation considerations. The key points are: estimating longevity is essential for planning; a balanced portfolio with 40-65% in equities can maximize returns while minimizing risk; withdrawal rates of 5-7% of the initial portfolio value are typically sustainable; and diversifying investments across asset classes and rebalancing periodically reduces risk.
Admirable Worldwide is one-stop consultancy firm offering comprehensive solutions in Financial Planning and Consulting. We help individuals and corporates to achieve their strategic goals and objectives as well as increasing process efficiencies to optimize revenue and bottom line.
Financial Planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a house, saving for your child's higher education or planning for your retirement.
Financial Planning is about “Planning Life” and “Financial Prosperity” and involves 95% strategy and 5% products. It is the blueprint for planning and management of all financial affairs for your entire life and consider holistic view that enables you achieving your life’s goals. For further details, please visit "http://www.admirableworldwide.com/".
November is Financial Literacy month. Did you know that 48% of Canadians say they’ve lost sleep because of financial worries?* Financial stress can be detrimental to mental and physical health, families, relationships and even productivity. With this in mind, we’re providing our advisors with a powerpoint presentation to promote financial literacy in the community. Download it at: https://financialtechtools.ca/financial-literacy/
Financial planning is for everyone. If you're like most people, financial planning might seem very complicated and confusing, and you might not know where to start. However, here are some ideas to help you get started.
This document provides information to help people retire ready, including:
- It explores current U.S. retirement trends, discusses retirement planning tools, and provides 10 timeless retirement planning tips.
- Sobering statistics are presented on health care costs, longevity, poverty rates, and disconnects between planned and actual retirement.
- Key retirement planning factors are outlined like age, income needs, savings, and health. Other important factors like caregiving and job options are also discussed.
- Tools for estimating savings needs, life expectancy, and safe withdrawal rates in retirement are reviewed to help people better plan.
Have you always wanted to save but never got to it due to one reason or the other? Well, its never to late or early to start saving. What you do today with your money will determine how fast it will grow.
The document outlines 11 steps for financial discipline: 1) Spend less than you earn through small cuts, 2) Create and stick to a budget to track spending and savings goals, 3) Contribute to a retirement plan for a relaxed old age, 4) Save 5-10% of salary each month by eliminating discretionary spending, 5) Do not finance purchases for longer than the item's useful life, 6) Consider buying used items to save money, 7) Diversify investments across different areas, 8) Invest wisely and avoid schemes promising high returns with little risk, 9) Teach children the value and proper use of money, 10) Start saving now for children's education to prevent future stress, and 11
Financial planning is a lifelong process of setting and working towards financial goals through proper management of finances. It helps improve standards of living, financial decision making, assess risk tolerance, and safeguard against financial crises. While financial planning involves investment, it is a broader process of bringing together all aspects of personal finance. Financial planning should be revisited regularly and is beneficial for people at any income level.
Smart tips to prepare for an active retirement in 2024Connect55+
Explore smart tips for an active retirement in 2024 with Connect55. Discover expert advice on financial planning, health and wellness, and lifestyle choices to ensure a fulfilling and vibrant retirement. Prepare for the next chapter of your life with confidence and joy.
Retirement lifestyles -- Money Can Serve the Life You WantBrian Weatherdon
Realize for Retirement: life was never static, a flat-line final curtain. Retirement too can be engaging, fulfilling, and vibrant. Understand how to enjoy and fulfill your Lifestyle and Choices through early, middle, & later retirement. And align business, pension, and other assets to create and perpetuate your Lifelong Income. >>> See more also at Amazon, "A Lifetime Of Wealth -- And How Not To Lose It"
This document provides an overview of retirement planning and considerations. It discusses starting retirement planning early, estimating expenses and income, identifying savings goals, using tax-advantaged accounts like 401ks and IRAs, factors like inflation, diversifying investments, and protecting against risks with insurance. The key aspects are starting retirement planning as soon as possible, crunching numbers to calculate savings needs, and implementing a long-term strategy using various savings vehicles and accounts.
This document provides an overview of money management skills and concepts. It discusses creating a personal balance sheet and cash flow statement, developing a personal budget, and connecting money management activities to personal financial goals. Major topics covered include determining assets and liabilities, tracking income and expenses over time, and using a budget to spend and save effectively.
This document provides an overview of financial planning, including what it is, its objectives, why it is needed, and the benefits it can provide. Financial planning is a process that identifies an individual's financial needs and goals over time and ensures they have the necessary funds available when needed. It involves savings and investment planning, asset allocation, insurance, taxes, retirement, and estate planning. The benefits of financial planning include having money available for needs and emergencies, maintaining one's standard of living in retirement, tax efficiency, funding education and marriage, and peace of mind.
The document provides an overview of budgeting fundamentals including the benefits of budgeting, defining a budget, and the three main components of a budget: income, expenses, and savings. It discusses where to start when developing a budget, including understanding your spending, priorities, and building a budget that allows savings. The document also covers identifying and reducing expenses through evaluating expense types, negotiating costs, and managing variable personal expenses. Finally, it outlines the steps to create a budget, including setting up automated accounts to organize finances and track spending.
Financial planning involves identifying an individual's financial needs and goals over time and developing a strategy to meet those needs and goals. The key objectives of financial planning are to identify monetary requirements, prioritize financial needs, assess one's current financial position, plan savings and investments to achieve goals, and optimize returns through diversification. Systematic investment plans (SIPs) allow regular investing of small amounts in mutual funds and are an effective way to benefit from rupee cost averaging and the power of compounding returns over the long term. Insurance provides protection from life's uncertainties and ensures one's dependents are provided for in times of need.
Personal Financial planning & ManagementAshish Ongari
Personal finance is the financial management which an individual or a family unit performs to budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.
1) The personal financial planning process involves 5 steps: evaluating your current financial health, defining goals, developing a plan of action, implementing the plan, and reviewing/revising the plan over time.
2) Financial goals should be specific, assign a cost, and have a target date. Goals can be short, intermediate, or long-term and help motivate sticking to the financial plan.
3) Developing a plan requires determining actions needed to achieve goals like cutting expenses, increasing income through career choices, starting to save and invest, and ensuring flexibility, liquidity, and protection from unexpected costs.
1. The document discusses planning and saving for retirement, including estimating costs of one's desired lifestyle and identifying sources of retirement income such as pensions, 401ks, IRAs, Social Security, and other savings vehicles.
2. It explains compound interest and its power to grow savings over time, demonstrating concepts like the Rule of 72.
3. The importance of starting to save and plan for retirement early is emphasized.
The document discusses retirement planning and provides guidance on estimating retirement costs and investment options. It notes that people should plan early for retirement as the corpus needed is significant. Monthly retirement expenses of Rs. 20,000-80,000 would require investments of Rs. 483572-1934288 today at 8% return to last 30 years in retirement. Investment avenues discussed include PPF, SIPs, debt funds, annuity plans, and senior citizen savings schemes. Proper planning is necessary to ensure funds are available to live comfortably after stopping work.
This document discusses the importance of financial education and provides an overview of basic financial concepts. It is published by Primerica, a financial services company, to help consumers overcome common financial challenges through knowledge. The document encourages readers to take control of their finances by learning principles like paying themselves first, eliminating debt, investing for the long term, and starting early to benefit from the power of compound interest and time. It presents savings and investment strategies as ways for working Americans to achieve financial security and independence.
This document outlines topics that will be covered in a financial planning course, including how to plan an investment portfolio, understand assets and liabilities, ensure adequate insurance coverage, learn about different asset classes and risk appetite, plan for post-retirement income and children's education, relate investments to goals, and achieve financial peace and happiness. It also discusses concepts like the new economy, goal setting, overcoming challenges, and inverting the savings equation from expenses-focused to savings-focused.
The document provides guidance on financial planning for retirement. It discusses estimating longevity and inflation, investing for retirement, asset allocation strategies, withdrawal rates, and taxation considerations. The key points are: estimating longevity is essential for planning; a balanced portfolio with 40-65% in equities can maximize returns while minimizing risk; withdrawal rates of 5-7% of the initial portfolio value are typically sustainable; and diversifying investments across asset classes and rebalancing periodically reduces risk.
Admirable Worldwide is one-stop consultancy firm offering comprehensive solutions in Financial Planning and Consulting. We help individuals and corporates to achieve their strategic goals and objectives as well as increasing process efficiencies to optimize revenue and bottom line.
Financial Planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a house, saving for your child's higher education or planning for your retirement.
Financial Planning is about “Planning Life” and “Financial Prosperity” and involves 95% strategy and 5% products. It is the blueprint for planning and management of all financial affairs for your entire life and consider holistic view that enables you achieving your life’s goals. For further details, please visit "http://www.admirableworldwide.com/".
November is Financial Literacy month. Did you know that 48% of Canadians say they’ve lost sleep because of financial worries?* Financial stress can be detrimental to mental and physical health, families, relationships and even productivity. With this in mind, we’re providing our advisors with a powerpoint presentation to promote financial literacy in the community. Download it at: https://financialtechtools.ca/financial-literacy/
Financial planning is for everyone. If you're like most people, financial planning might seem very complicated and confusing, and you might not know where to start. However, here are some ideas to help you get started.
This document provides information to help people retire ready, including:
- It explores current U.S. retirement trends, discusses retirement planning tools, and provides 10 timeless retirement planning tips.
- Sobering statistics are presented on health care costs, longevity, poverty rates, and disconnects between planned and actual retirement.
- Key retirement planning factors are outlined like age, income needs, savings, and health. Other important factors like caregiving and job options are also discussed.
- Tools for estimating savings needs, life expectancy, and safe withdrawal rates in retirement are reviewed to help people better plan.
Have you always wanted to save but never got to it due to one reason or the other? Well, its never to late or early to start saving. What you do today with your money will determine how fast it will grow.
The document outlines 11 steps for financial discipline: 1) Spend less than you earn through small cuts, 2) Create and stick to a budget to track spending and savings goals, 3) Contribute to a retirement plan for a relaxed old age, 4) Save 5-10% of salary each month by eliminating discretionary spending, 5) Do not finance purchases for longer than the item's useful life, 6) Consider buying used items to save money, 7) Diversify investments across different areas, 8) Invest wisely and avoid schemes promising high returns with little risk, 9) Teach children the value and proper use of money, 10) Start saving now for children's education to prevent future stress, and 11
Financial planning is a lifelong process of setting and working towards financial goals through proper management of finances. It helps improve standards of living, financial decision making, assess risk tolerance, and safeguard against financial crises. While financial planning involves investment, it is a broader process of bringing together all aspects of personal finance. Financial planning should be revisited regularly and is beneficial for people at any income level.
Smart tips to prepare for an active retirement in 2024Connect55+
Explore smart tips for an active retirement in 2024 with Connect55. Discover expert advice on financial planning, health and wellness, and lifestyle choices to ensure a fulfilling and vibrant retirement. Prepare for the next chapter of your life with confidence and joy.
Retirement lifestyles -- Money Can Serve the Life You WantBrian Weatherdon
Realize for Retirement: life was never static, a flat-line final curtain. Retirement too can be engaging, fulfilling, and vibrant. Understand how to enjoy and fulfill your Lifestyle and Choices through early, middle, & later retirement. And align business, pension, and other assets to create and perpetuate your Lifelong Income. >>> See more also at Amazon, "A Lifetime Of Wealth -- And How Not To Lose It"
This document provides information about financial planning for retirement. It discusses the importance of saving 10-50% of annual income and investing savings in a diversified portfolio of equity, debt, gold and cash. Life insurance is also recommended to protect family. The document notes that financial planning is needed due to inflation, rising costs of goals, and changing life stages. It provides examples of asset accumulation and investing savings to grow a retirement corpus. Overall, the document emphasizes the importance of financial planning and disciplined saving/investing over one's career to ensure sufficient funds for a comfortable retirement.
The document is a multi-product brochure from Manulife aimed at consumers transitioning to retirement. It provides an overview of retirement products and highlights key things for readers to consider when planning for retirement, such as when to retire, estimating expenses, understanding sources of income, and reviewing insurance needs. The brochure uses a magazine format with different sections to make the large amount of information easier for readers to navigate and find what interests them most. This format was well-received by clients and marketing teams.
Afcpe 2011 retirement minus 5 to 10-fixed-ten questions-04-11Barbara O'Neill
This document summarizes a presentation on answering 10 key retirement planning questions in the 5 years before and 5 years after retirement. It discusses challenges of the "new normal" retirement landscape and common retirement planning mistakes. It covers estimating life expectancy, retirement income and expenses, investing strategies, assessing how long savings will last, and steps to take in the years leading up to and following retirement.
This document discusses 10 key questions people should answer about 5-10 years before retirement. It begins with background on the "new normal" challenges of retirement planning in today's economic environment. It then covers estimating life expectancy, calculating needed retirement funds, projecting income and expenses, investing strategies, assessing how long savings will last, choosing a location to live, pursuing hobbies and activities, obtaining health insurance, and developing a retirement plan. Critical retirement planning errors are also outlined.
AFCPE 2011 Retirement Minus 5 to 10-fixed-ten questions-04-11Barbara O'Neill
This document provides an overview of key retirement planning questions and issues for those within 10 years of retirement. It discusses the "new normal" challenges facing retirees today, such as longer lifespans, rising healthcare costs, and changes to retirement programs. The document outlines common retirement planning mistakes and describes the "retirement grief cycle" people experience when facing changes. It identifies 10 critical questions people should answer in their planning, such as how long they may live, how much income they will need, where to get health insurance, and how to spend their time in retirement.
This document discusses retirement and estate planning. It identifies the three biggest pitfalls to good retirement planning as starting too late, putting away too little money, and investing too conservatively. It describes different types of employer-sponsored pension plans and retirement benefits. Common types of retirement fraud include inappropriate investments, affinity fraud, and aggressive sales tactics. The best retirement fund methods in the Philippines include pension plans, PERA, insurance plans, financial funds, and real estate.
Life Horizons -- Money Can Serve the Life You WantBrian Weatherdon
Realize for Retirement: life was never static, a flat-line, a final curtain. Retirement too can be engaging, fulfilling, vital and vibrant to enjoy each stage. Concepts here to understand and enjoy Life Stages from early, mid, later retirement ...and to align wealth and income to secure your life and protect your dreams. DON'T live below your Dreams .... The right thinking, support, and vision can fulfill your dreams and safeguard your future. >>> See more also at Amazon, "A Lifetime Of Wealth -- And How Not To Lose It"
Retirement planning is important for ensuring financial stability in older age without relying on others. It involves setting aside funds and investing specifically for retirement. The document discusses four key reasons for retirement planning: 1) lack of adequate social benefits, 2) achieving financial independence, 3) rising costs of living and inflation, and 4) increasing medical expenses. Proper retirement planning is important to avoid underestimating costs, delaying savings, over-relying on social security, accumulating too much debt, and having unrealistic expectations of investment returns.
6 Retirement Questions Government Employees Should Be AskingBravias Financial
There are emotions and worries tied into retirement. When it comes to government workers, they have additional challenges to consider when evaluating their benefits and options. As financial professionals who specialize in helping government employees transition from work to
retirement, Bravias Financial understands that you may have questions about when and how you can retire. This special
report addresses some common questions and presents some strategies to help you prepare for a more
comfortable retirement.
The document outlines 5 steps to take control of your financial security: 1) Lay the groundwork by assessing your current financial situation and estate plan. 2) Determine goals and build a plan to achieve them. 3) Take steps to minimize risks that could threaten your plan. 4) Embrace change and flexibility to adjust your plan over time. 5) Use financial planning tools to visualize your financial future and the impact of your decisions. Taking these steps will help gain more control over your financial security and ability to achieve your goals.
Women live 5 years longer, on average, than men. Planning your own retirement is crucial to living the life you want to live.... the way you want to live it. Call us, let's talk.
This document provides information about the importance of retirement planning and conducting a retirement review. It stresses that planning ahead is crucial to ensure retirees can afford their desired lifestyle. A retirement review involves assessing a person's needs, objectives, current pensions and policies to understand what income they are projected to receive and if there are any gaps. It aims to help people position themselves best for retirement rules and afford their plans. The document dispels some common myths about retirement planning, such as relying solely on the state pension, treating a business or home as a pension, or believing it is too late to plan. It emphasizes taking advice from financial experts to understand retirement options and make the most of pension plans.
Client Presentation with Medicare 2023Ted Rosedale
This document provides an overview of Social Security planning and Medicare. It discusses why Social Security is important, including how it benefits those who are married, divorced, widowed, disabled, self-employed, and children. It covers Social Security basics like full retirement age, primary insurance amount, delayed retirement credits, and cost-of-living adjustments. The document also examines some of the complexities of Social Security including reductions for early claiming, spousal benefits, dependent benefits, survivor benefits, and how earnings can impact benefits. Finally, it provides an introduction to Medicare, including eligibility, parts A and B coverage, and additional coverage options through Medicare Advantage plans or Medigap.
The Aviva Real Retirement Report - Spring 2014Aviva plc
Aviva's Spring 2014 Real Retirement Report explores over-55s' views on retirement and what role their family plays in their plans. Findings from the consumer research shows that for over-55s retirement is a period of pursuing personal interests, hobbies and travel. However, family is important, and they particularly want to spend more time with family members. But many over-55s are over-looking their spouse and their family when they come to plan their retirement finances, and consider their finances a personal matter. This reluctance to involve the family also affects the number of people preparing a will.
The document provides an overview of financial planning and its importance. It discusses that financial planning helps one understand their current financial situation and develop a plan to achieve their goals by determining an appropriate investment strategy, employing tax strategies, and assessing risks. The financial planning process involves implementing the plan, ongoing monitoring, and making adjustments in response to life changes. Specific areas of financial planning discussed include retirement planning, tax planning, estate planning, and risk/insurance planning. The document emphasizes that financial planning is important for asset creation, protection from financial uncertainties, minimizing taxes, and achieving one's dreams and goals.
This document outlines an agenda for a retirement planning seminar. It discusses several key topics related to retirement planning including the changing definition of retirement, how baby boomers are transforming retirement, maintaining health and relationships in retirement, and the importance of financial and personal development planning. It also describes retirement assessment tools that can help individuals plan for a successful transition to retirement and highlights the benefits of working with a retirement planner to develop a customized plan for a fulfilling retirement.
The document discusses retirement planning and provides information about retirement benefits. It covers topics such as the importance of retirement planning, sources of retirement income like government and company programs, retirement benefit schemes, and strategies for retirement planning such as maximizing workplace savings and establishing IRAs. The document aims to help people understand retirement and the need for financial planning to ensure a comfortable retirement.
http://ekinsurance.com/financial/retirement/
If you are near retirement or have retired, listed below are several common mistakes that occur in the arena of financial planning for retirement that you can plan now to avoid.
2. What is Retirement?
Retirement is to “withdraw from one’s position or occupation or from
active working life”.
According to Harvard Study, it is worrying under the following 3
circumstances-
• When it is unplanned and involuntary
• When the wage or the salary is the only source of income
• When there is pre-existing health conditions
4. Then ...
• Job longevity meant retirement security
• On average, people had shorter life expectancies
• That may have meant lower health care costs and lower
retirement income needs
5. Now ...
• Changing jobs is more common
• Health care and long-term care cost more
• People live longer
7. Your Hopes and Dreams for Retirement
• Retirement is closer than you think
• What’s on your wish list? Perhaps travel, a vacation home,
or education?
• Your desired lifestyle will determine your income need
8. Reasons People Retire
• For their personal health reasons they can’t continue to work
• Loss of job or Workplace
• Forced out of work – early retirement package/buyout
• Company Bankruptcy
• Company Relocation
• Person chooses to retire – it’s time
• Need to become a care giver to Spouse, Child, Grandchild or
Parents.
9. What is Retirement Planning?
• It’s a planning one does to be prepared for life after paid
work ends, not just financially but in all aspects of life.
• The non-financial aspects include such lifestyle choices as
how to spend time in retirement, where to live, when to
completely quit working
10. Why Retirement Planning?
• Income stops but expenses don’t, the need of money increases but the inflow
stops
• Many other expenses will be included like Medical cost, health maintenance
etc.
• Inflation rates and cumulative effect of inflation ensures that you will need
more money for your retirement. You need to find out where this income will
accrue from
• You need to plan your goals and lifestyle that you would want to pursue post
retirement. To maintain Lifestyle which you cannot live without needs to be
planned well in advance
• You will need to ensure that you have an adequate life and health insurance
cover to provide for illnesses that are inevitable at this stage of life
11. How Much Is Enough?
Experts say you may need between 70% and 90% of your current
income, adjusted for inflation, to live comfortable after retirement.
Avoid downgrading your lifestyle after retirement
Everyone desires to have upgraded lifestyle or at least the same
lifestyle, in that case saving 10-15% of your income really isn’t
enough.
12. Importance and Purpose of Retirement Planning
• To help you in any Medical related expenses
• To be prepared for the period of your life when you stop
working full time.
• To ensure self sufficiency at retirement
• To provide for emergencies
• We need to consider all aspect of life, such as maintaining the
standard of living to which we are accustomed
• Where you want to live and how you intend to spend your time
13. Common Things We Need to Plan for
• Financial goals - 15 to 20 years prior to retirement
• Medical coverage during retirement
• Life Insurance coverage & Critical Illness Coverage
• Wills, Power of Attorney
14. Misconceptions About Retirement Planning
• My expenses will decrease after I retire
• My retirement will only last 15 years
• My savings will pay for my basic living expenses
• My employers health insurance plan will cover for my
medical needs
• There is plenty of time for me to start saving for retirement
• Saving just a little bit won’t help
15. What according to you are the questions that gain prominence after
one’s Retirement?
16. • How much will you need? How
much do you now have?
• How much must you save annually
to reach your goals?
• What are your strategies for your
Accumulation, Retirement and
Distribution Stages of Retirement?
• Understand Your Personal And Family Goals
Know what you want out of life
• Understand Your Budget
Know your financial priorities
• Understand What Kind Of Retirement You
Want
Be willing to sacrifice and work toward that
goal
17. Six key principles for a successful retirement Planning
High
Low
1. Know yourself, especially your goals, budget and risk tolerance
2. Understand the retirement vehicles available to you and use them wisely
3. Choose wisely the financial assets for those investment vehicles and invest
wisely
4. Know the retirement planning steps
5. Develop a good retirement plan, write it carefully and follow it closely
6. Start today !!
20. The Process of Retirement Planning
Main aim of Retirement Planning is to ensure that
this phase of life is not stressful for you and your
family. It includes identifying sources of income,
estimating expenses, implementing a savings
program and managing assets.
21. Discovering financial and Retirement Goals
Research on resources to achieve
goals
Analyzing on personal income planning
relative to your goals
Creating your own Investment portfolio
Start Investing in the right resources
22. CASE STUDY
Meet Michael and Antonia.
A young, upcoming project manager and his wife
arrive in Dubai, about to begin the next chapter
of their life together.
23. For many years Michael and Antonia enjoy life
as if on holiday, attending as many Friday
brunches and social events as possible.
Soon 2 become 3 as their daughter is born,
with Michael and Antonia deciding to remain in
Dubai until after her education is completed.
24. Now in their mid 40s, the promise of an early
retirement at 55 is now nothing more than a pipe
dream and Michael and Antonia are left considering
how they will pay for things such as their daughters’
weddings and a potential move back to the UK.
They wonder where they went wrong, what they
failed to do and why they didn’t take action sooner.
25.
26. $898,346
$457,559
Savings for 10 years (monthly)= $2,000
Estimated Growth rate at 7%
I started
at 45
I started
at 45
I started
at 35
I started
at 35
During this session, we’ll take a look at how retirement has changed through the years, help you estimate how much you may need to retire, review your current efforts, examine the tools available to you, and help you develop an investment strategy to pursue your goals.
Show-of-hands survey:
How many here are 30 years or more away from retirement? 20 years? 10 years? Less than 5 years?
Your time horizon until retirement is just one of the factors we’ll review here. Others — including your desired lifestyle and your risk tolerance — are also important in establishing an investment strategy to pursue a secure retirement.
Let’s compare your retirement with that of your parents and grandparents to look at the way things have changed through the years.
Forty, 30, and even 20 years ago, people generally didn’t “job hop” the way they do today. Many stayed with the same employer — building hefty pension and medical benefits to help them live a financially secure retirement.
Medicare and Social Security benefits played a greater role in retirement security than they do today.
Perhaps because of shorter life expectancies, health care costs may not have been as much of a concern and retirement income was needed for a shorter period of time.
Today, changing jobs is commonplace and people move around more whether because of corporate downsizing or for career advancement.
As a consequence, retirement benefits may not be as substantial or as “guaranteed” as they were for previous generations.
The long-term health of Medicare and Social Security is in question, which means people may not be able to rely on these benefits as much as they had in the past.
Health care and long-term care costs have skyrocketed. On average, the cost of a private room in a nursing home now exceeds $90,500 per year and can be much higher in certain parts of the country.2
People are making a variety of lifestyle choices during retirement — from caring for grandchildren and volunteering to going back to school, starting a business, or traveling.
And finally, people are living longer, which means they must finance longer retirements. 65-year-olds now live an average of 18.8 more years, according to the National Center for Health Statistics — and average life spans continue to rise.3
2Source: 2012 MetLife Market Survey of Nursing Home & Assisted Living Costs.
3Source: Centers for Disease Control, National Center for Health Statistics, 2011 (based on preliminary 2009 data, most recent available).
What are your dreams for retirement?
Do you want a traditional retirement — golfing, traveling, visiting with friends and family?
Or do you have other ideas — going back to college? Opening a small business?
Your retirement wish list — the lifestyle and activities you hope to engage in — will largely determine how much you may need.
Let’s begin by giving you an idea about how much you may need to live the retirement of your choice. The first factor to consider is inflation.
Take a look at the chart: While the inflation rate has recently averaged about 2.9%, history shows that it has varied considerably through the years.4
For the purposes of our discussion and our calculations today, we will assume that inflation averages about 4% in the future. But as you develop and refine your plan through the years, keep in mind that inflation can potentially spike or dip substantially in the short term.
4Source: The Federal Reserve. Inflation is represented by the annual change in the Consumer Price Index. Covers the 30-year period ended December 31, 2012.
By now you’re probably wondering, “How much do I need to save to provide the income I’ll need?” We’re going to help give you an idea now.
The first question asks you to estimate Let’s start with Worksheet 1. Even if you don’t have all of the information you need, use your best estimate.
how much you will need each year during retirement. We’ve provided a general guideline: Financial experts often say you may need between 60% and 80% of your final working year’s salary each year during retirement. So think about how much you hope to make the year before you retire (in today’s dollars), and enter 60% to 80% of that figure on the worksheet.
Consider the lifestyle you hope to lead. If you plan to travel, you might want to up that amount — perhaps to 100% of your preretirement income. If you plan to scale back expenses a great deal or to continue working at least part time, you may want to go with a lower annual income amount. To be safe, however, it’s probably better not to count too heavily on a post-retirement income for purposes of these calculations. Set a reasonable retirement savings goal and look at any extra income as a bonus.
Any questions? (MOVE TO NEXT SLIDE WHILE PARTICIPANTS ARE COMPLETING WORKSHEET.)
The next two questions on the worksheet ask you to estimate your annual income from Social Security and pensions, again in today’s dollars.
Social Security currently provides an average annual benefit of $15,132 per year for retired workers. The average retired couple receives $$24,576.5
Women may have added challenges when it comes to retirement income. Not only are women far less likely than men to receive income from an employment-based pension plan or retirement annuity, when women are eligible for pension benefits, they typically receive a much smaller annual pension benefit than men.6
But regardless of your age or gender, if you plan to take time off from work for extended periods of time (or have taken time off), remember this: The decision could affect your Social Security and pension benefits substantially in retirement. If you find yourself in this situation, err on the conservative side in these estimates on your worksheet.
About three months before your birthday, you should receive a statement estimating your future Social Security benefits. You can also contact the Social Security Administration at 1-800-772-1213 or through its web site, www.ssa.gov.
If you have a pension plan, your employee benefits administrator should be able to provide an estimate of your annual pension benefit. When you get this information, make sure you’ve been credited for the correct salary amounts and number of work years.
Finish completing the worksheet to get an idea about your retirement accumulation goal. (PAUSE: ALLOW 5 MINUTES.)
5Source: Social Security Administration, Fact Sheet, Social Security, 2013 Changes, October 2012.
6Source: Employee Benefit Research Institute, Retirement Annuity and Employment-Based Pension Income, Among Individuals Age 50 and Over: 2008, May 2010 (most recent data available).
Now that you have an idea of where you’re going, it’s time to develop a plan to get there. First, let’s review the tools you might use to develop your investment plan.
Perhaps the best way to save for retirement is through tax-advantaged investment accounts, such as 401(k) plans and IRAs.
They all have specific factors for consideration, so review each one carefully. For example, traditional 401(k)s and traditional IRAs are tax deferred — which means you don’t have to pay income taxes on the earnings now, but you will pay taxes later. On the other hand, with the Roth IRA and the Roth-style 401(k) plans, qualified withdrawals are tax free provided the account holder is age 59½ and has held the account for five years.
Take advantage of a 401(k) or similar plan if it’s offered to you at work. Try to contribute the maximum.
As for IRAs, different rules apply to each type, so check with a financial professional to see which one may be best for you. But consider one of these accounts for your retirement investment plan, too, especially if you’re contributing the maximum to your 401(k) plan.
In all cases, nonqualified early withdrawals will be subject to a penalty tax.
Developing a well-thought-out investment plan will help you pursue your retirement accumulation goal.
In the next two worksheets, we’ll help you examine investment tools and figure out how much you may want to set aside each month for retirement based on a potential rate of return that you calculate.
Keep in mind that the following are examples only and are not meant as investment advice. They are also based on the past performance of stated asset classes, which cannot guarantee future results.
Let’s review the basic investment asset classes now.
There are a number of ways to invest your money. Most investment options can be classified in one of three asset classes — stocks, bonds, and money markets. How you divide your money among these choices is known as asset allocation.
Each asset class has different risk and return characteristics. Even within one asset class you’ll find choices with higher risk and higher return potential.
Asset allocation can also help you reap the potential benefits of diversification. When one investment loses value, another may be holding steady or gaining.
The next step is to understand your own personal tolerance toward investment risk.
While stocks involve the greatest risk, over the long term they tend to outperform other types of investments. But past performance can’t guarantee future results: There will always be the chance that you could lose money in the stock — or even the bond — market.
Your time horizon is very important in evaluating and choosing your asset allocation because it can help determine your risk tolerance.
If you are many years away from retirement, you may be able to withstand short-term drops in the value of investments. Therefore, you may want to invest the majority of your money in stocks to pursue their higher return potential.
On the other hand, if you’re nearing retirement — within 10 years, for example — you may want to choose a more moderate or conservative investment mix. It would include a larger portion of bonds and money market investments to strive for more stability in the value of your investments.
Consider, however, that retirement could last 20 years or longer. For that reason, you may want to include some stocks in your portfolio as a potential hedge against inflation.
The following are examples of conservative, moderate, and aggressive portfolios and their asset allocations. Remember that the returns listed are based on past performance and that your results could vary.
Now we’re ready to begin the process of figuring out how much you might aim to save on a monthly basis. But first we need to address how much you may have saved already.
Please refer to Worksheet 3. This worksheet will help you see what your current savings may be worth when you retire. The worksheet assumes you add no more money to your current savings and that you invest your current savings in order to pursue the rate of return you calculated on Worksheet 2.
It also calculates your potential shortfall (that is, assuming you contribute no more money). We’ll use this information to help you estimate a monthly savings goal.
Please complete the worksheet now. (PAUSE: ALLOW 5 MINUTES.)
Now let’s look at Worksheet 4. Here we’ll help you calculate a monthly investment goal based on your time horizon, your potential rate of return, and your adjusted savings shortfall.
Please complete the worksheet now. (PAUSE: ALLOW 5 MINUTES.)
Did you come out with a reasonable amount? If not, don’t panic. There are ways to refine your plan so that it is both manageable and realistic. You can adjust your investment mix to pursue a higher rate of return, for example.
Most important, however, is to sit down with a qualified financial professional, who can review your overall financial situation and help you identify ways to save and invest more for your retirement.