SOFA Exploring Your Options for a Quality Retirement...Title Microsoft PowerPoint - SOFA Exploring...

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Exploring Your Options for a Quality Retirement

THANK YOU FOR JOINING US!OU R HO PE TO DAY I S TO PROVI D E YOU W I T H S OM E VA LUA B L E I N FOR M AT I O N , HAVE S O M E FUN , A N D E N J OY T HI S N E XT H OU R .

WE WOULD LIKE TO WELCOME YOU TO TODAY’S WORKSHOP2

2016 | The Society for Financial Awareness


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EVALUATION FORMPlease review this form. I will be picking these up at the end of the workshop.Do note – the backside is to be used for your specific questions and issues.

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The Key to a Quality Retirement Is You!

When you retire you’ll either have the money or reasons why you don’t.

It’s all about planning. Your behavior and attitudetoday will impact your cash results for tomorrow.

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What’s Your Financial Personality? Spender – Every month there’s nothing left. Living paycheck to paycheck. No savings, little put away for retirement, no emergency fund. Too Busy – who has time to plan for the future? Living day to day for the moment. Hectic, out of control. Over Analytical - Analysis leading to Paralysis. For whatever reason, too busy creating spread sheets and doing research as the years go ticking by. Can’t seem to “pull the trigger”. Ready, Fire, Aim Investor – has money, wants shortcuts. Take a hot tip and buy. Very little due diligence; little if any research. Impulsive. Concise, Precise, Focused, Act Together – has a plan, follows the proper steps. Has a budget. Has goals - focused, deliberate, “walks the talk”.

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Wealth Building is Eroded by…

Debt

Inflation

Taxes

Healthcare Expenses

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Dealing With DebtThe privilege of borrowing other peoples money greatly reduces your ability to save!

$808 Billion

$1.7 Trillion

$2.4 Trillion

1990 2000 2010

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http://www.federalreserve.gov/


The High Cost Of DebtEven at low interest rates, you could be paying more than double of what you borrowed! The blue cylinders represent a principal balance while the orange cylinders represent interest paid.

15% 22%

$17,839$47,087

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This is a hypothetical example for illustrative purposes only.2016 | The Society for Financial Awareness

Inflation is ‘Values’ Natural Predator

$100

$617

$0 $100 $200 $300 $400 $500 $600 $700

1970

2016

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This example was secured from http://www.usinflationcalculator.com/, according to their online calculator something that cost $100 in 1970 would cost $617 in 2016. Historically, Inflation increases at a rate of 3% each year.2016 | The Society for Financial Awareness

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What Is Your Future Tax Liability?

You have options to how you invest for retirement. In some instances you can invest pre-tax dollars, and in others, after-tax dollars.

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Your Tax Situation WILL Change The key is to understand that by the time you retire your current deductions may be unavailable. 401(k) Mortgage Interest Children

This can potentially result in your post retirement tax bracket being similar to your pre-retirement tax bracket. You can mitigate your tax obligations, if you plan accordingly.

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Planning for Health Care is important

The truth is… we get old. Our health concerns widen as we enter retirement.

Health care is an important consideration in your golden years.

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T H I N G S T O C O N S I D E R W H E N P L A N N I N G R E T I R E M E N T

Considerations13


Social Security vs. Self Security

Question: By the time we do retire, what percentage of your total monthly income will come from Social Security?

Question: At Retirement, what will be the “purchasing power” of tomorrow’s dollars vs. today’s?

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Inspect What You Expect

Social Security is a federal insurance program that offers supplemental funds to Americans during their retirement.

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Different Income Streams

Stocks Bonds Pensions and qualified plans - 401(k) Individual Retirement Accounts (IRA)

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401(k) Qualified Plan Contribution – Do it!

Your deposits build up for retirement. Your contributions reduce your taxable income.You have the ability to re-allocate your portfolio without any taxable consequences.All growth of the entire portfolio is tax deferred (your deposits, employer match if applicable, and potential investment growth) .Withdrawals will be taxed as ordinary income. If withdrawals are made prior to age 59 and ½ a 10% penalty may apply.

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Pre-Tax vs. After-Tax Considerations Diversify your retirement contributions between pre-tax and after-tax retirement plans. 401(k) plan you invest pre-tax money, but pay taxes when you withdraw

Roth IRA you invest after-tax money into your Roth IRA, and are not taxed on the money when you withdraw

At distribution time, this strategy could be critical to your lifestyle during those golden years if withdrawals are considered qualified.

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Pre-Tax InvestmentsPre-Tax Investments After-tax InvestmentsAfter-tax Investments Tax-deferred investments like 401(k)

and Traditional IRA Allows you to postpone taxes until

you begin withdrawing money

A Roth IRA is an after-tax investment that can create a source of tax-free income in the future. Contributions are not tax-

deductible in your saving years, but tax-free withdrawals can help reduce your total taxable income when you reach retirement.

Pre-Tax vs. After-Tax19


Food For Thought… You, not your employer; you, not the government, is responsible for

your retirement. When should you do your retirement planning? Stay diversified- use asset allocation. Create “balance” utilize pre-tax and after-tax strategies. Inspect what you expect… monitor your results constantly. Planning is the key. Being busy and not paying attention is a cop out…

It’s always about you – stay on it!

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EVALUATION FORMPlease take a moment to complete. I will be collecting these in a moment.If you need a pen, please let me know.


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Thank you for your time!Please complete your Program Evaluation.

We will be picking them up shortly.Now would be a good time for me to answer

any particular questions you may have.

SOFA Exploring Your Options for a Quality Retirement...Title Microsoft PowerPoint - SOFA Exploring...

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