Presentation about getting setting financial goals and understanding the basics of financial planning.

1. The Million Dollar Plan
Robert Newell, MBA, CRPC

2. Key Planning Assumptions
• Starting Point – How much do I have now?
– Take inventory
• Financial needs – How much do I need to have?
– Retirement: 20 x (80% of Current Income) ‘quick and dirty’
– What about inflation? Assume 4% per year.
• Risk Tolerance – How much risk am I willing to take?
– Not Enough: “Scared money don’t make none”
– Too much: “Pigs get fat, hogs get slaughtered”
• Time Horizon – How soon do I need outcome?
• Current Budget – How much can I commit to invest?
• Avg. Annual Return – What return am I getting per dollar invested?
– ‘Total Return Strategy’ vs. ‘Buy and Hold’
– What is realistic based on the current environment?

3. Million Dollar Savings Plan – Ten Years
Avg. 12% return Fixed Contribution ($16K)
(max contribution to 401(k))
Starting Expected Time Monthly Starting Needed Time Monthly
Point Return Frame Add Point Return Frame Add
$0k 12% 10 yrs 4304.05 $0k 30.0% 10 yrs 1333.33
$100k 12% 10 yrs 2883.55 $100k 17.5% 10 yrs 1333.33
$250k 12% 10 yrs 752.79 $250k 10.5% 10 yrs 1333.33
$500k 12% 10 yrs (2798.47) $500k 4.6% 10 yrs 1333.33
Assumes: fixed monthly contribution; tax deferred growth;
reinvested cap gains, dividends and interest

4. Million Dollar Plan – Risk Adverse
Avg. 8% return Avg. 8% return
(with fixed contribution) (with fixed time period)
Starting Expected Time Monthly Starting Expected Time Monthly
Point Return Frame Add Point Return Frame Add
$0k 8% 22 yrs 1333.33 $0k 8% 10 yrs 5429.89
$100k 8% 17 yrs 1333.33 $100k 8% 10 yrs 4224.65
$250k 8% 12 yrs 1333.33 $250k 8% 10 yrs 2416.79
$500k 8% 7 yrs 1333.33 $500k 8% 10 yrs (596.31)
Assumes: fixed monthly contribution; tax deferred growth;
reinvested cap gains, dividends and interest

5. Other Considerations
• Emergency Cash – Do I have enough reserve cash to cover situations that
occur?
• Insurance – Do I have enough or too much?
– DI, LTC, Life and Annuities
– “15 minutes on GEICO”
• Inflation – How does inflation impact my plan?
– Purchasing Power Risk
• Taxes – How do taxes impact my plan?
– Tax planning with other advisors
– Using tax deferred vehicles (401(k), Defined Benefit Plans, Annuities)
• Other $ needs – Do I need to plan for children's education or elderly
parents? Vacation home? Travelling? Start a business?
– Separate or Inclusive planning

6. Other $ Investment Opportunities
• Buying and Selling Real Estate
– Personal vs. Commercial
• Buying and Selling a Business
• Receiving an inheritance
• Job/Career transition
• Short term cash investments

7. What do I do now?
• Call me at 702-227-7033 and make an
appointment.