Retirement: Get Ready...1 Why planning makes sense...1 Where are you?...2 Getting Started: 20 s and early 30 s...3

Size: px
Start display at page:

Download "Retirement: Get Ready...1 Why planning makes sense...1 Where are you?...2 Getting Started: 20 s and early 30 s...3"

Transcription

1 Retirement: Get Ready...1 Why planning makes sense...1 Where are you?...2 Getting Started: 20 s and early 30 s...3 On Your Way: Mid-30 s to early 40 s...4 Crunch Time: Mid-40 s to early 50 s...5 Just Around the Corner: Mid-50 s and 60 s...6 You ve Arrived: 60 s and beyond...7

2 Your Retirement Time Horizon You ll probably need percent of your working income during retirement, and your retirement income will likely come from a variety of sources. Below are some common sources of retirement income for today s retirees. Retirement: Get Ready Have you ever gone on a trip without knowing where you re going? It might make for an interesting excursion, but you can easily end up someplace that falls well below your expectations. While that can be fun for a short vacation, approaching retirement with the same whatever happens attitude could be disastrous. This is one trip where it makes sense to plan well ahead of time. Why planning makes sense Despite all the talk about preparing for retirement, the majority of today s workers haven t even taken the time to complete the first basic planning step a retirement needs calculation to determine how much money they ll likely need in retirement and how much they need to save to meet that goal. Sources of Retirement Income Social Security Employer-Provided Traditional Pension or Cash Balance Plan Investments/Savings Employer-Sponsored Retirement Savings Plan (such as 401(k) Individual Retirement Account (IRA) Employment 27% 45% 41% 40% 56% Source: Changing Expectations About Retirement, 2012 Retirement Confidence Survey. Employee Benefit Research Institute and Mathew Greenwald & Associates. 91% All Workers Thirty-five percent of all workers think they need to accumulate at least $500,000 by the time they retire to live comfortably in retirement. Eighteen percent feel they need between $250,000 and $499,999, while 34 percent think they need to save less than $250,000 for a comfortable retirement. 1 Retirement Needs Calculation Makes a Difference Attitudes change after completing a retirement needs calculation. In fact, workers who did were more than twice as likely as those who didn t (23 percent versus 10 percent) to expect they will need to accumulate at least $1 million before retiring. 1 Amount of Savings Workers Think They Need for Retirement by Doing a Retirement Needs Calculation 34% 27% 39% Under $250,000 19% 20% 22% 18% 19% 17% $250,000 to $499,999 $500,000 to $999,999 Workers who have done a retirement needs calculation tend to be considerably more confident about their ability to save the amount needed for retirement than those who have not done a calculation, despite the fact that those doing a calculation tend to name higher retirement savings goals. 1 14% 13% 9% 9% 10% 6% 5% 5% 5% $1,000,000 to $1,499,999 $1,500,000 or more Don t know or remember All Workers Did Calculation Did Not Do Calculation Percentages may not total 100% due to rounding 1 Source: Preparing For Retirement In America RCS Fact Sheet #3. Retirement Confidence Survey, Employee Benefit Research Institute and Mathew Greenwald and Associates, Inc. countryfinancial.com 1

3 Where Are You? Just starting to save for retirement? Almost there? Or somewhere in between? Each phase of your journey to retirement has specific actions you should address. The following information can help guide you as you prepare for your future. A few tips for all ages One of the best things you can do whether retirement is 30 years away or three is to live debt-free. Aside from a purchase like a home, if there s something you need or want, tuck away money each payday to save for it. Don t buy it until you can afford it. Funnel money into an emergency fund to cover unexpected expenses like mechanical work on your car or health bills not covered by insurance or if you suddenly find yourself without a job. Because this is money you may need on short notice, you should consider putting it in an easily accessible account with low investment risk, like a savings account. Investment Basics Invest in your future Have a well-thought-out investment plan. Consider your timeframe, risk tolerance, and future financial needs. Then make sure the investments you ve chosen are the right fit for you. Along the way, events in your life may change your tolerance for investment risk. Be sure to watch for signals that it s time to adjust your retirement investments. Focus on progress The amount you contribute toward your retirement when you begin is probably the most you can afford. As your income increases, plan to increase the amount you contribute, too. Over time, even a small increase can have a big impact. Keep your balance Along the way, your investments may become unbalanced if one type of asset performs very well or very poorly. As a result, your portfolio may be more aggressive or conservative than you would like. Adjusting your investments to correct the imbalance will get your portfolio back in shape. How much debt is too much? Debt includes: Your mortgage Credit card payments Child support Other loan payments Conventional lenders recommend your debt-to-income ratio not exceed 36% of your gross income (no more than 28% for your mortgage).* To calculate your maximum monthly debt: Annual Gross Income x Example: $100,000 annual gross income x = $3,000 monthly debt limit *Source: Wikipedia 2 countryfinancial.com

4 Getting Started 20 s and early 30 s You ll probably have to pay for more of your retirement than earlier generations. That s why it s important to start planning as soon as possible. The good news is that time is on your side. Here are some tips that might help you get started: Considering your income level, age and amount of pre-retirement income you want to replace, try to save ten percent of your gross income for retirement more if you can afford it. If your employer offers a retirement plan, enroll in it. Automatic contributions make saving easy. If you re self-employed, consider opening a retirement plan. There are a lot of plan options SEP IRA, SIMPLE IRA, Solo 401(k). Contribute to an IRA. Even if you participate in an employer-sponsored retirement plan, you can probably contribute to an IRA. The more aggressively you invest, the greater your potential for losses and gains. If your tolerance for investment risk is high, you may want to invest aggressively because you have such a long time before you ll retire. Be sure, though, that you re comfortable with the level of risk. If you change jobs, don t be tempted to touch retirement assets. Leave them in the existing plan or roll them into an IRA. You ll avoid penalties and any immediate taxes by doing so. If your retirement plan is self-directed, learn as much as you can about investing. Financial security and knowledge go hand in hand. Don t go it alone. If you have questions, get the guidance of a trusted financial professional. Time is on your side... The Power of Compounding Value of $1,000 compounded at various rates of return over time. Years 4% 6% 8% 10% 10 $1,481 $1,791 $2,159 $2, $2,191 $3,207 $4,661 $6, $3,243 $5,743 $10,063 $17,449 This chart is for illustrative purposes only and is not intended to represent any particular fund or investment, nor does it address tax implications. Assumes reinvestment of earnings. COUNTRY Financial does not imply any guarantee of investment performance or benefits. The growth of your assets will be based on actual rates of return earned by the investment you choose. Past performance is not indicative of future results Projecting the growth of your pay You may not intend to retire for many years, but this is still a good time to plan. The sooner you take a hard look at your financial situation, the more time you ll have to make adjustments if you decide they re needed. For a rough estimate of your projected future income, just compare the retirement income you anticipate against your likely cost of living during retirement. countryfinancial.com Current Annual Pay x Growth Factor = Projected Future Income Average Annual Pay Increase Years to Retirement 10 3% % % % Example: $24,000 current annual pay 25 years to retirement 4% annual pay increase $24,000 x 2.67 = $64,080 3

5 On Your Way Mid-30 s to early 40 s If you re in your 30 s or 40 s, the idea of saving for retirement shouldn t be new to you. You re probably already participating in a work retirement plan and/or investing through an IRA. But you may have other conflicting financial goals, like saving for a new home or your child s education. Remember you can borrow money for a child s education and home; you can t borrow money for retirement. Consider these tips: With 25 to 30 years before you retire, you should consider placing a large portion of your retirement investments in securities such as stocks that offer the potential for higher returns. As always, your investment selections should match your tolerance for risk. Consider increasing your contribution to your retirement plan. If you don t already have one, consider opening an IRA. If you have money at a previous employer s retirement plan, you can leave it or consider rolling it into an IRA. If you have money from several previous employers retirement plans, consolidate them into one IRA. It will make your life easier, and it could save you money. When you get a raise or bonus, put some or all of it into your retirement plan. Even if it s available, be cautious about using your retirement plan s loan option. While it s true that you ll be paying the principal and interest back to yourself, you ll also be losing out on the growth potential of any funds you borrow. Retirement planning is getting more complicated. Get the help of a trusted financial professional. Where should I put my retirement money? Looking at the sources of retirement income on page 1 of this document, you can see the source of retirement income for current retirees. Of those, you can actively control three of them. Which one is best? It depends on your situation. Generally speaking, it often makes sense to follow this order: 1 Employer-sponsored retirement savings plan 2 Individual Retirement Account (IRA) 3 Personal investments/ savings Employer-Sponsored Retirement Savings Plan Ë Contributions and earnings aren t taxed until withdrawn. Ë Your salary is reduced by the amount you put in, so you owe less current income tax. Ë If your employer offers a matching contribution, that s free money. You re limited on the amount you can invest each year. You can t use the money before age 59½ without penalty except under certain circumstances. You usually have to start taking withdrawals after you turn 70½. Individual Retirement Account Traditional IRA Ë Contributions and earnings aren t taxed until withdrawn. Ë If you meet income limits, your salary is reduced by the amount you put in, so you owe less current income tax. Ë You can invest in a Traditional IRA, even if you participate in a retirement plan at work. Your income level determines if your contribution is tax-deferred. Earnings are tax-deferred no matter your income level. You re limited on the amount you can invest each year. You can t use the money before age 59½ without penalty except under certain circumstances. You usually have to start taking withdrawals after you turn 70½. Roth IRA Ë Earnings grow tax-free. Ë You can withdraw tax-free income after you turn 59½ if your account has been open at least five years Ë You never have to withdraw the money if you don t need it, which makes it a valuable estate planning tool. Contributions are not tax deductible There s a cap on how much you contribute each year Taxable Investments Ë No limit on how much you can invest. Ë No restrictions on when you can withdraw the money Ë The profit on an investment that increases in value when you sell it is taxed at the lower long-term capital gains rate, provided you own the investment more than a year (current maximum of 15%, depending on your income tax bracket) You ve already paid tax on the money you invest, and you pay taxes every year on most investment earnings 4 countryfinancial.com

6 Crunch Time Mid-40 s to early 50 s More than half of Americans participating in a recent survey 1 said they are behind schedule when it comes to planning and saving for retirement. Almost a third said they are behind by a lot. Are you on track with your planning and savings? Here are some tips that might help: Contribute the maximum to your workplace retirement plan and/or IRA. Keeping the applicable annual contribution limits in mind, aim for 20% or more of your gross income if possible. Review your entire portfolio of retirement assets to make sure they re allocated appropriately for your risk level. This may be a good time to start becoming more conservative in your investment mix. However, if you can handle the risk, don t cut stocks out of your mix entirely. At age 50, take advantage of the catchup contribution that is available on most retirement plans. Consider purchasing long term care insurance. Meet with a financial professional to get a detailed analysis of your situation and determine if you re on target for a secure retirement. Behind in the Retirement Race? If you find that you re behind in meeting your retirement goals, here are a few ideas that might help you become more financially secure in retirement: Reduce expenses and put the extra money into your retirement fund. Take on a second job and invest that money in your retirement plan. Retire later. Refine your retirement goal. Can you live a less expensive lifestyle in retirement? Sell assets that aren t producing much income or growth undeveloped land or a vacation home. Invest the proceeds in income-producing assets Retirement Confidence Survey, Employee Benefit Research Institute and Mathew Greenwald and Associates, Inc. Close the Gap It might be hard at first, but just look at what an additional $200 a month can do for your account balance. With $200 a month additional investment at 5% per year over 10 years: Year Start Add Rate Year End 1 $40, $200/month 5% $44, $44, $200/month 5% $49, $49, $200/month 5% $54, $54, $200/month 5% $59, $59, $200/month 5% $64, $64, $200/month 5% $70, $70, $200/month 5% $76, $76, $200/month 5% $83, $83, $200/month 5% $89, $89, $200/month 5% $97, Source: Taking The Mystery Out of Retirement Planning, U.S. Department of Labor. For illustrative purposes only. Not indicative of any particular investment. Your results will be different. countryfinancial.com 5

7 Just Around the Corner Mid-50 s and 60 s You can see it: Retirement! Are you ready? Now is the time to firm up your retirement income specifics and get answers to your questions about Social Security and your retirement plan distribution options. Will you have enough to live on? Keep in mind that you could easily live 25 or more years in retirement. Here are some tips as you start rounding the bend: Review your sources of income investments, retirement plans, Social Security, and savings. If you don t have it, consider purchasing long term care insurance. Build up a cash reserve by putting aside two or more years worth of expenses in a cash account. Consider a more conservative asset allocation for your retirement money. If you re still working, contribute as much as you can to your retirement plan and take advantage of any catch-up contributions. Attend a retirement seminar. Review your options for healthcare coverage in retirement. Pay off debt. If you re ready to retire, contact a financial professional for help creating a plan that addresses your retirement distributions. Retirement Timeline Age 50 Age 59 ½ Age 62 Age 65 Age 66 Age 70 ½ Start making catchup contributions an extra amount that those over 50 can add to 401(k) and other retirement accounts. No more tax penalties on early withdrawals from retirement accounts. But leaving the money in means more time for it to grow. The minimum age to receive Social Security benefits. Delaying means a bigger monthly benefit, though. Eligible for Medicare Eligible for full Social Security benefits if you were born between 1943 and Start taking minimum withdrawals from most retirement accounts. Otherwise, you may be charged heavy tax penalties. Source: U.S. Department of Labor Early Retirement & Social Security Under current regulations, you can collect your Social Security if you retire at any time between age 62 and your Full Retirement Age. However, if you start taking your benefits before your Full Retirement Age, your benefit will be reduced by a part of a percent for each month before your Full Retirement Age. Your Year of Birth 1 Full Retirement Age Months between age 62 and full retirement age 2 At Age 62 3 A $1000 retirement benefit would be reduced to: 4 The retirement benefit is reduced by or earlier $ % and 2 months 38 $ % and 4 months 40 $ % and 6 months 42 $ % and 8 months 44 $ % and 10 months 46 $ % $ % and 2 months 50 $ % and 4 months 52 $ % and 6 months 54 $ % and 8 months 56 $ % and 10 months 58 $ % 1960 & later $ % 1 If you were born on January 1st, you should refer to the 3 You must be at least 62 for the entire month to receive previous year. benefits. 2 If you were born on the 1st of the month, your benefit (and 4 The $1,000 retirement benefit is for illustrative purposes your full retirement age) is figured as if your birthday was in only. Your benefit may vary. December of the previous year. 5 Percentages are approximate due to rounding. 6 countryfinancial.com

8 You ve Arrived 60 s and beyond You may be planning to head south for retirement, but you don t want your retirement plan to follow suit. Here are some tips to help: Contribute to your retirement accounts as long as you can. Before you retire, determine how much money to withdraw each year and from which accounts. You may want to tap taxable sources of income before you tap funds in tax-deferred accounts. After retiring, investing requires a different strategy from the one you used while you were working. You ll want to strike the right balance between growth and income potential. Consider consolidating all eligible retirement assets into one IRA. It will make your life easier and could save you money. Don t forget about required minimum distributions most retirement plans require that you must start taking them at age 70 ½ or face heavy tax penalties. If you meet the requirements, consider contributing to a Roth IRA. This type of IRA doesn t impose the age 70 ½ required minimum distributions rule. Review your estate plan. Consider an annuity for guaranteed monthly income. Contact the Social Security Administration to determine your eligibility date and request an estimate of benefits, if applicable. Where should I withdraw from first? You should consider individual asset performance, tax implications, minimum distribution factors, and account fees. But generally, this is our recommended order of liquidation: 1. Taxable accounts 2. Tax-free / municipal accounts 3. Roth IRAs 4. Tax-deferred accounts Individual situations differ, so contact your financial professional before you make a final decision. How much from Social Security? To qualify for Social Security retirement benefits, you must be fully insured. That means you need 40 credits about ten years of work. Your benefits are based on (1) your career average earnings covered by Social Security, (2) your age when you start your benefits and (3) the highest 35 years of work. The percent of your earnings that your benefit replaces goes down as your earned income goes up. That s in keeping with Social Security s mission of providing a basic level of financial support. Approximate Monthly Benefit at Your Full Retirement Age Your age in 2012 Your Present Annual Earnings $20,000 $40,000 $60,000 $80,000 $110,000 & Up 66 $956 $1,461 $1,960 $2,194 $2, $944 $1,440 $1,935 $2,167 $2, $965 $1,473 $1,979 $2,217 $2, $952 $1,456 $1,952 $2,188 $2, $941 $1,437 $1,929 $2,161 $2, $949 $1,454 $1,941 $2,177 $2, $956 $1,469 $1,951 $2,191 $2, $969 $1,493 $1,968 $2,213 $2, $977 $1,522 $1,980 $2,230 $2,607 Source: 2012 Social Security and Medicare Policies issued by COUNTRY Investors Life Assurance Company, Bloomington, IL. See your tax advisor. COUNTRY believes our annuity contract has been designed to comply with current income tax requirements. However, the company and our financial representatives cannot give tax or legal advice. Any information we provide reflects our understanding of current tax laws, which are subject to change and reinterpretation. Not FDIC Insured No Bank Guarantee May Lose Value Investment management, retirement, trust and planning services provided by COUNTRY Trust Bank countryfinancial.com 7

Financial Milestones: Retirement planning. Tips for every stage of life.

Financial Milestones: Retirement planning. Tips for every stage of life. Financial Milestones: Retirement planning. Tips for every stage of life. Retirement by the numbers. Retirement planning is a journey. And the sooner you start, the easier it is. But whether you re in your

More information

Planning for the Stages of Retirement

Planning for the Stages of Retirement Planning for the Stages of Retirement The Financial Planning Association (FPA ) connects those who need, support and deliver financial planning. We believe that everyone is entitled to objective advice

More information

_ Retirement. Planning for the Stages of. Getting started Your 20s and early 30s

_ Retirement. Planning for the Stages of. Getting started Your 20s and early 30s Planning for the Stages of _ Retirement _ Retirement is being reinvented. It s no longer our parent s retirement. Social Security alone w o n t see us through retirement, especially for higher income earners.

More information

SAVING FOR RETIREMENT

SAVING FOR RETIREMENT CHARTING YOUR COURSE SERIES: SAVING FOR RETIREMENT Retirement planning for public sector employees Why save now? Starting to save early, being disciplined about saving enough, and prudently investing those

More information

You ve worked hard for your savings. Now keep your savings working hard for you.

You ve worked hard for your savings. Now keep your savings working hard for you. You ve worked hard for your savings. Now keep your savings working hard for you. Retire with confidence A guide to your distribution options. You are now faced with an important financial decision When

More information

Traditional and Roth IRAs. Invest for retirement with tax-advantaged accounts

Traditional and Roth IRAs. Invest for retirement with tax-advantaged accounts Traditional and Roth IRAs Invest for retirement with tax-advantaged accounts Your Retirement It is your ultimate reward for a lifetime of hard work and dedication. It is a time when you should have the

More information

A Guide to Planning for Retirement INVESTMENT BASICS SERIES

A Guide to Planning for Retirement INVESTMENT BASICS SERIES A Guide to Planning for Retirement INVESTMENT BASICS SERIES It s Never Too Early to Start What You Need to Know About Saving for Retirement Most of us don t realize how much time we may spend in retirement.

More information

Traditional and Roth IRAs. Invest for retirement with tax-advantaged accounts

Traditional and Roth IRAs. Invest for retirement with tax-advantaged accounts Traditional and s Invest for retirement with tax-advantaged accounts Your Retirement It is your ultimate reward for a lifetime of hard work and dedication. It is a time when you should have the financial

More information

UND U E ND R E S R T S A T ND A I ND NG N TR T ADI AD TI T ONAL O AN A D R N O D R T O H I T R H I AS A INVESTO T R GUIDE RETIREMENT

UND U E ND R E S R T S A T ND A I ND NG N TR T ADI AD TI T ONAL O AN A D R N O D R T O H I T R H I AS A INVESTO T R GUIDE RETIREMENT UNDERSTANDING TRADITIONAL AND ROTH IRAS INVESTOR GUIDE RETIREMENT Not FDIC Insured May Lose Value Not Bank Guaranteed Get Ready for Retirement... Your Way Forget rocking chairs and lingering sunsets. Your

More information

JPMorgan INVEST. You work hard for your money. Now keep it working for you with a JPMorgan Invest IRA. IRA Decision Guide

JPMorgan INVEST. You work hard for your money. Now keep it working for you with a JPMorgan Invest IRA. IRA Decision Guide IRA Decision Guide JPMorgan INVEST You work hard for your money. Now keep it working for you with a JPMorgan Invest IRA. JPMorgan Invest One Beacon Street, Boston, MA 0208 (800) 776-606 jpmorganinvest.com

More information

Retirement Planning EMPLOYER PLANS CALCULATING YOUR NEEDS INVESTMENTS DECISIONS

Retirement Planning EMPLOYER PLANS CALCULATING YOUR NEEDS INVESTMENTS DECISIONS GOALS What You Should Know About... Retirement Planning EMPLOYER PLANS CALCULATING YOUR NEEDS INVESTMENTS DECISIONS YourMoneyCounts No matter who you are or how much money you have, you re probably hoping

More information

Retirement Products Changes to Annual Account Maintenance Fee

Retirement Products Changes to Annual Account Maintenance Fee Retirement Products Changes to Annual Account Maintenance Fee Effective December 11, 2015, the annual account maintenance fee (Fee) for OppenheimerFundssponsored retirement products will change and will

More information

Retirement Account Rollovers

Retirement Account Rollovers A guide to: Retirement Account Rollovers Making wise decisions for your future Insight + Process = Results SM Retiring? Changing jobs? In transition? If any of these situations apply to you and you participate

More information

Saving for Retirement. Your guide to getting on track.

Saving for Retirement. Your guide to getting on track. Saving for Retirement Your guide to getting on track. 2 It s great that you re looking ahead and thinking about retirement now. A sound plan can make all the difference in reaching your future goals. This

More information

Retirement on the. Brain. Your Retirement Plan: Don t pass up the perks

Retirement on the. Brain. Your Retirement Plan: Don t pass up the perks Retirement on the Brain Your Retirement Plan: Don t pass up the perks Retirement on the Brain Your Retirement Plan Understanding the advantages of your retirement plan is crucial in making wise savings

More information

Retirement income planning Get ready. Take control. Start moving.

Retirement income planning Get ready. Take control. Start moving. Retirement income planning Get ready. Take control. Start moving. Your future is too important to leave it to chance. That s why taking control of your retirement with an organized, practical approach

More information

Retirement Savings Plan BASICS

Retirement Savings Plan BASICS Brighten your outlook. Retirement Savings Plan BASICS Learn about the benefits of a retirement savings plan. Your retirement savings plan can help you prepare for your retirement. Just how much money are

More information

You ve managed your career well.

You ve managed your career well. You ve managed your career well. Let life insurance help you get more out of retirement. You work hard. You live comfortably. You re saving for the future. While your employer s retirement plan is substantial,

More information

Retirement: Protecting Your Financial security. Oak Ridge 401(k) Savings Program

Retirement: Protecting Your Financial security. Oak Ridge 401(k) Savings Program Retirement: Protecting Your Financial security. Oak Ridge 401(k) Presented by Alan Still Education Specialist Schwab Retirement Plan Services Company Overview of today s presentation The Importance of

More information

How to Maximize Your Retirement Savings Investing in Your Retirement

How to Maximize Your Retirement Savings Investing in Your Retirement How to Maximize Your Retirement Savings Investing in Your Retirement As you approach retirement, there are a number of steps you can take to wring the most out of your retirement savings and put yourself

More information

Traditional and Roth IRAs

Traditional and Roth IRAs october 2012 Understanding Traditional and Roth IRAs summary An Individual Retirement Account (IRA) is a powerful savings vehicle that can help you meet your financial goals. As shown in the chart on page

More information

The easy way to save for your retirement

The easy way to save for your retirement The easy way to save for your retirement If you want to live comfortably during your retirement, you really can t afford to wait to begin saving for that goal. And now that your employer is offering the

More information

Building a Strong Financial Future: Strategies for Age 45 to Retirement SECURITIES OFFERED THROUGH LPL FINANCIAL" MEMBER FINRA/SIPC"

Building a Strong Financial Future: Strategies for Age 45 to Retirement SECURITIES OFFERED THROUGH LPL FINANCIAL MEMBER FINRA/SIPC Investor Seminar Series Building a Strong Financial Future: Strategies for Age 45 to Retirement SECURITIES OFFERED THROUGH LPL FINANCIAL" MEMBER FINRA/SIPC" Introduction Today we ll discuss: Planning for

More information

premiere select Rollover IRA Invest in your retirement today.

premiere select Rollover IRA Invest in your retirement today. premiere select Rollover IRA Invest in your retirement today. Leaving your current job can be challenging in any environment. For many of us, it can also be a bit overwhelming. That s why it s comforting

More information

A Guide to. Planning for Retirement INVESTMENT BASICS SERIES

A Guide to. Planning for Retirement INVESTMENT BASICS SERIES A Guide to Planning for Retirement INVESTMENT BASICS SERIES It s Never Too Early to Start What You Need to Know About Saving for Retirement Most of us don t realize how much time we may spend in retirement.

More information

Your pension benefit options

Your pension benefit options 2 Your pension benefit options Traditional pension plans generally provide the option of a lump-sum payment or a fixed monthly payment for life through an annuity. The fixed monthly payment amount is usually

More information

GUIDE TO RETIREMENT PLANNING FINANCIAL GUIDE. Making the most of the new pension rules to enjoy freedom and choice in your retirement

GUIDE TO RETIREMENT PLANNING FINANCIAL GUIDE. Making the most of the new pension rules to enjoy freedom and choice in your retirement GUIDE TO RETIREMENT PLANNING Making the most of the new pension rules to enjoy freedom and choice in your retirement FINANCIAL GUIDE WELCOME Making the most of the new pension rules to enjoy freedom and

More information

SAVINGS BASICS101 TM %*'9 [[[ EPXEREJGY SVK i

SAVINGS BASICS101 TM %*'9 [[[ EPXEREJGY SVK i SAVINGS BASICS101 TM i This book is intended as a general guide to the topics discussed, and it does not deliver accounting, personal finance, or legal advice. It is not intended, and should not be used,

More information

RETIREMENT PLANNING 101. November 18, 2014

RETIREMENT PLANNING 101. November 18, 2014 RETIREMENT PLANNING 101 November 18, 2014 WHEN YOU IMAGINE YOUR RETIREMENT, WHAT DO YOU SEE? THE RETIREMENT PLANNING ROAD MAP Implement Plan Basic Questions Crunching Numbers Tax-advantaged Retirement

More information

RETIREMENT AHA MOMENTS

RETIREMENT AHA MOMENTS RETIREMENT AHA MOMENTS RETIREMENT AHA MOMENTS 2 Retirement Aha Moments Be In The Know On Key Dates and Decisions When you or your spouse celebrate the birthdays shown below, be sure to check on the key

More information

RETIREMENT PLANNING GUIDE. Getting you on the right track

RETIREMENT PLANNING GUIDE. Getting you on the right track RETIREMENT PLANNING GUIDE Getting you on the right track Table of Contents Why is a retirement plan important? 2 How much will you need? 4 How can your retirement plan help? 6 Where should you invest?

More information

PLAN FOR YOUR FUTURE. 71% say retirement WHY ENROLL? GET STARTED TODAY ONE TWO THREE

PLAN FOR YOUR FUTURE. 71% say retirement WHY ENROLL? GET STARTED TODAY ONE TWO THREE Regions Financial Corporation 401(k) Plan PLAN FOR YOUR FUTURE You may spend 20 years or more in retirement that s a long time to go without a paycheck! Of course, there will still be bills to pay, so

More information

Annuities. Introduction 2. What is an Annuity?... 2. How do they work?... 3. Types of Annuities... 4. Fixed vs. Variable annuities...

Annuities. Introduction 2. What is an Annuity?... 2. How do they work?... 3. Types of Annuities... 4. Fixed vs. Variable annuities... An Insider s Guide to Annuities Whatever your picture of retirement, the best way to get there and enjoy it once you ve arrived is with a focused, thoughtful plan. Introduction 2 What is an Annuity?...

More information

TIAA-CREF (found on website)

TIAA-CREF (found on website) TIAA-CREF (found on website) Retirement Security: IRA Basics ShareEmailPrint Even if you're already saving in a workplace retirement plan, think about investing in an individual retirement account (IRA)

More information

Retirement Savings Vehicles

Retirement Savings Vehicles Retirement Savings Retirement Savings If you ask yourself why it s important to invest, one of the answers may well be a comfortable retirement. To ensure your retirement matches or comes close to the

More information

An IRA can put you in control of your retirement, whether you

An IRA can put you in control of your retirement, whether you IRAs: Powering Your Retirement One of the most effective ways to build and manage funds to help you meet your financial goals is through an Individual Retirement Account (IRA). An IRA can put you in control

More information

RETIREMENT ACCOUNTS (c) Gary R. Evans, 2006-2011, September 24, 2011. Alternative Retirement Financial Plans and Their Features

RETIREMENT ACCOUNTS (c) Gary R. Evans, 2006-2011, September 24, 2011. Alternative Retirement Financial Plans and Their Features RETIREMENT ACCOUNTS (c) Gary R. Evans, 2006-2011, September 24, 2011. The various retirement investment accounts discussed in this document all offer the potential for healthy longterm returns with substantial

More information

Roll over an inherited 401(k), help your children earn a credit for retirement savings and rack up tax savings in the process.

Roll over an inherited 401(k), help your children earn a credit for retirement savings and rack up tax savings in the process. P a g e 1 Article: Tax Savings for Empty-Nesters Author: Editor Date: April 2013 Source: Kiplinger Roll over an inherited 401(k), help your children earn a credit for retirement savings and rack up tax

More information

Guide to rollovers. Wherever you are Wherever you are going

Guide to rollovers. Wherever you are Wherever you are going Guide to rollovers Wherever you are Wherever you are going Career changes can be among the most important events in your life. Accepting a new job can mean a dramatic change for the better, both in terms

More information

Alternative Retirement Financial Plans and Their Features

Alternative Retirement Financial Plans and Their Features RETIREMENT ACCOUNTS Gary R. Evans, 2006-2013, November 20, 2013. The various retirement investment accounts discussed in this document all offer the potential for healthy longterm returns with substantial

More information

Strategies for staying on track. throughout your retirement

Strategies for staying on track. throughout your retirement Strategies for staying on track throughout your retirement TIAA-CREF and you: Planning an income for life For nearly a century, we at TIAA-CREF have dedicated ourselves to helping those who serve others

More information

Prepared for the FINRA Foundation by Lightbulb Press, Inc. December 2007 (Updated as of January 2010) Page 1

Prepared for the FINRA Foundation by Lightbulb Press, Inc. December 2007 (Updated as of January 2010) Page 1 Page 1 Table of Contents Table of Contents... 2 Retirement Savings Vehicles... 3 1. Introduction... 3 2. Individual Plans... 5 IRAs... 5 Taking Money Out... 9 Required Withdrawals... 10 IRA Rollovers...

More information

Five Simple Steps to a Retirement Plan

Five Simple Steps to a Retirement Plan Retirement Five Simple Steps to a Retirement Plan Not FDIC Insured May Lose Value Not Bank Guaranteed OppenheimerFunds Five Simple Steps to a Retirement Plan Take a few minutes now and you ll be thankful

More information

Peach State Reserves PEACH STATE RESERVES FAQ. Peach State Reserves General Questions

Peach State Reserves PEACH STATE RESERVES FAQ. Peach State Reserves General Questions Peach State Reserves PEACH STATE RESERVES FAQ Peach State Reserves General Questions What is Peach State Reserves The Georgia Retirement Investment Plan? What is a Deferred Compensation/Defined Contribution

More information

Resource Guide. Creating a plan for lifetime income in retirement

Resource Guide. Creating a plan for lifetime income in retirement Resource Guide Creating a plan for lifetime income in retirement Freedom in retirement starts with income in retirement When it comes to planning for your future, nothing should be left to chance. That

More information

NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE. Tax-advantaged IRAs. Invest in your retirement savings while reducing taxes

NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE. Tax-advantaged IRAs. Invest in your retirement savings while reducing taxes NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE Taxadvantaged IRAs Invest in your retirement savings while reducing taxes Find the answers inside Why invest for retirement? p. 1 Discover three good reasons

More information

How to Handle a Windfall

How to Handle a Windfall Rethinking your financial opportunities How to Handle a Windfall INVESTMENT AND INSURANCE PRODUCTS: NOT FDIC INSURED NOT A BANK DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NO BANK GUARANTEE MAY

More information

Getting to know your CUNY retirement plan

Getting to know your CUNY retirement plan Getting to know your CUNY retirement plan It s About You If you re the independent type, you can do your own thing. If you want some help, tools are available to assist you. Confused about investing and

More information

Vertex Wealth Management LLC 10/22/2013

Vertex Wealth Management LLC 10/22/2013 Vertex Wealth Management LLC Michael J. Aluotto, CRPC President Private Wealth Manager 1325 Franklin Ave., Ste. 335 Garden City, NY 11530 516-294-8200 mjaluotto@1stallied.com Retirement Basics 10/22/2013

More information

Welcome! Thanks for investing your time today.

Welcome! Thanks for investing your time today. Welcome! Thanks for investing your time today. Please sign in Fill out your name tag Address your mail card It s not about how much money you earn. It s about how much you save and invest. October 2015

More information

Preparing for the retirement you want

Preparing for the retirement you want Preparing for the retirement you want You deserve an enjoyable retirement Retirement is one of life s most significant events. It marks the transition to a new and very wonderful stage of life. You will

More information

Knowledge to power the next generation

Knowledge to power the next generation Knowledge to power the next generation Overview Financial Building Blocks is an online education system that helps people learn the basics of personal finance. Our system organizes personal finance into

More information

Learn how to prepare for retirement. Investor education

Learn how to prepare for retirement. Investor education Learn how to prepare for retirement Investor education Soon you ll embark on one of the biggest changes in your life......the transition to retirement. When you retire, you ll be spending your nest egg

More information

IRAs. Investing in Your Future. Retirement Plans

IRAs. Investing in Your Future. Retirement Plans IRAs Investing in Your Future Retirement Plans About Stifel Nicolaus Stifel Nicolaus is a full-service Investment firm with a distinguished history of providing securities brokerage, investment banking,

More information

Will You Be Ready for Retirement? Get prepared with your employer s retirement plan

Will You Be Ready for Retirement? Get prepared with your employer s retirement plan Will You Be Ready for Retirement? Get prepared with your employer s retirement plan WWW.AMERICANCENTURY.COM/WORKPLACE Will You Be Ready for Retirement? I ll start in a couple of years. I have plenty of

More information

Your Columbia University Retirement Savings Program

Your Columbia University Retirement Savings Program Your Columbia University Retirement Savings Program For Faculty and other Officers first hired on or after July 1, 2013 Revised May 2014 There s No Time Like the Present to Plan for the Future Whether

More information

EMPOWER. Retirement Strategies for Women. Helping to secure your future lifestyle SAVING : INVESTING : PLANNING

EMPOWER. Retirement Strategies for Women. Helping to secure your future lifestyle SAVING : INVESTING : PLANNING EMPOWER Retirement Strategies for Women Helping to secure your future lifestyle SAVING : INVESTING : PLANNING Introduction Looking back through the years what were your aspirations? Did you ever think

More information

Retirement Savings Options For Plan Participants. know your options when leaving wju s retirement plan. Revised 3/24/14

Retirement Savings Options For Plan Participants. know your options when leaving wju s retirement plan. Revised 3/24/14 Retirement Savings Options For Plan Participants know your options when leaving wju s retirement plan You ve been planning for your future and saving for retirement. Now that you re leaving Jessup, you

More information

Your 403(b). Made better.

Your 403(b). Made better. Your 403(b). Made better. A unique opportunity for tax-free retirement income. Your future. Made easier. The Roth 403(b) contribution option. I m ready to Roth. I m still more of a traditional type. Is

More information

A lifetime approach to retirement planning

A lifetime approach to retirement planning Financial Planning Update A lifetime approach to retirement planning Unlike earlier generations, individuals planning to retire over the next two decades face a new set of challenges, including an uncertain

More information

Invesco SEP Plan Business owner guide

Invesco SEP Plan Business owner guide Invesco SEP Plan Business owner guide As a self-employed person, how will you pay for your living expenses when you re no longer able to work? And how much will you need? According to U.S. News & World

More information

Understanding Annuities

Understanding Annuities Annuities, 06 5/4/05 12:43 PM Page 1 Important Information about Variable Annuities Variable annuities are offered by prospectus, which you can obtain from your financial professional or the insurance

More information

Saving for retirement with a 403(b) plan

Saving for retirement with a 403(b) plan Saving for retirement with a 403(b) plan 2 Saving for retirement with a 403(b) plan Saving for retirement with a 403(b) plan Retirement can be a welcome turning point in your life a time to enjoy hobbies,

More information

26. Retirement Planning 1: Basics

26. Retirement Planning 1: Basics 26. Retirement Planning 1: Basics Introduction People are living longer in modern times than they did in the past. Experts project that as life spans continue to increase, the average individual will spend

More information

Your guide to Roth 457 contributions

Your guide to Roth 457 contributions THE OREGON SAVINGS GROWTH PLAN PRESENTS Your guide to Roth 457 contributions Wonderful new feature this year Exciting. Thrilling. Fantastic. Best thing to hit the Pacific Northwest! What s in a name? That

More information

Keys to Retirement Planning and Investing

Keys to Retirement Planning and Investing Keys to Retirement Planning and Investing Table of Contents Keys to Retirement Planning Keys to Investing for Retirement 1 2 3 4 5 Find out how much you ll need for retirement. Most experts agree that

More information

The IBM 401(k) Plus Plan. Invest today for what you hope to accomplish tomorrow

The IBM 401(k) Plus Plan. Invest today for what you hope to accomplish tomorrow The IBM 401(k) Plus Plan Invest today for what you hope to accomplish tomorrow The IBM 401(k) Plus Plan Dollar-for-dollar company match, automatic company contributions, broad range of investment options

More information

Financial Wellness & Education Retirement. Rollovers Understanding your options

Financial Wellness & Education Retirement. Rollovers Understanding your options Financial Wellness & Education Retirement Rollovers Understanding your options Examine the options The smart way to handle a retirement plan distribution. Whether retiring, leaving your employer or changing

More information

Developing a Money-Smart Retirement Plan

Developing a Money-Smart Retirement Plan Developing a Money-Smart Retirement Plan C O N T E N T S HOW DO YOU GET STARTED? 2 WHERE WILL THE MONEY COME FROM? 3 Social Security 3 Retirement plans 4 IRAs 5 Other savings and investments 9 HOW DO YOU

More information

INVESTMENT STRATEGIES. 10 Tax-Wise Strategies That May Reduce Your Taxes in the Future

INVESTMENT STRATEGIES. 10 Tax-Wise Strategies That May Reduce Your Taxes in the Future INVESTMENT STRATEGIES 10 Tax-Wise Strategies That May Reduce Your Taxes in the Future 10 TAX-WISE STRATEGIES 1. Make tax-deferred investments Take full advantage of tax-deferred investment opportunities,

More information

Wealth Strategies. www.rfawealth.com. The Importance of Age-Based Tax Planning. www.rfawealth.com. Age Based Tax Planning WEALTH STRATEGIES Page 1

Wealth Strategies. www.rfawealth.com. The Importance of Age-Based Tax Planning. www.rfawealth.com. Age Based Tax Planning WEALTH STRATEGIES Page 1 www.rfawealth.com Wealth Strategies The Importance of Age-Based Tax Planning Part 9 of 12 Age Based Tax Planning WEALTH STRATEGIES Page 1 In today s world, more and more of the responsibilities of preparing

More information

Tax-smart ways to save and invest. TIAA-CREF Financial Essentials

Tax-smart ways to save and invest. TIAA-CREF Financial Essentials Tax-smart ways to save and invest TIAA-CREF Financial Essentials Today s agenda: 1. Finding funds for saving 2. Tax law provisions promoting saving 3. TIAA-CREF savings opportunities 4. TIAA-CREF can help

More information

Kelli A. Adams, EA, CFP Counselor kadams@gwwade.com Meg Welborn, JD Associate Counselor mwelborn@gwwade.com

Kelli A. Adams, EA, CFP Counselor kadams@gwwade.com Meg Welborn, JD Associate Counselor mwelborn@gwwade.com Kelli A. Adams, EA, CFP Counselor kadams@gwwade.com Meg Welborn, JD Associate Counselor mwelborn@gwwade.com GW & Wade provides a comprehensive array of financial services to address your unique financial

More information

Retirement and Estate Planning

Retirement and Estate Planning 6P A R T Retirement and Estate Planning Should you invest in a retirement plan? Chapter 19 Retirement Planning Chapter 20 Estate Planning How much should you contribute to your retirement plan? How should

More information

Your Annual Financial To-Do List Things you can do before & for 2016.

Your Annual Financial To-Do List Things you can do before & for 2016. December 2015 Your Annual Financial To-Do List Things you can do before & for 2016. Left to right: Steven Bell, Thomas Page, Christopher Miller, Alan Loss and Andrew Barninger. On behalf of the entire

More information

Synthesis of Financial Planning

Synthesis of Financial Planning P 7A R T Synthesis of Financial Planning 1. Tools for Financial Planning Budgeting (Chapter 2) Planned Savings (Chapter 3) Tax Planning (Chapter 4) 2. Managing Your Liquidity Bank Services (Chapter 5)

More information

BUYER S GUIDE TO FIXED DEFERRED ANNUITIES

BUYER S GUIDE TO FIXED DEFERRED ANNUITIES BUYER S GUIDE TO FIXED DEFERRED ANNUITIES Prepared by the National Association of Insurance Commissioners The National Association of Insurance Commissioners is an association of state insurance regulatory

More information

2014-2015 Entrust Account Guide

2014-2015 Entrust Account Guide 2014-2015 Entrust Account Guide Helping You Direct Your Future Account Guide Individual Retirement Accounts Traditional and Roth IRAs Go To Section Small Business Retirement Accounts SEP and SIMPLE IRAs

More information

Your 401(k) Quick tips

Your 401(k) Quick tips Your 401(k) Quick tips The 401(k) plan offers you an easy way to prepare for retirement, and provides great benefits that help you boost your savings, including: Company matching contribution of up to

More information

1. An IRA with a bank with the funds deposited in a variable-rate account.

1. An IRA with a bank with the funds deposited in a variable-rate account. Unit 11 Cases. Case 1. Goals and Portfolio Selection (P.891) Vanessa Avoletta is a very successful self-employed freelance writer of romantic novels. She has a reputation for writing rapidly and is able

More information

Assist. Financial Calculators. Technology Solutions. About Our Financial Calculators. Benefits of Financial Calculators. Getting Answers.

Assist. Financial Calculators. Technology Solutions. About Our Financial Calculators. Benefits of Financial Calculators. Getting Answers. Assist. Financial s Technology Solutions. About Our Financial s. Helping members with their financial planning should be a key function of every credit union s website. At Technology Solutions, we provide

More information

Money At Work 1: Foundations of investing

Money At Work 1: Foundations of investing It s not about how much money you earn. It s about how much you save and invest. November 12, 2015 A TIAA-CREF Financial Essentials Workshop Bill Thorne TIAA-CREF Money At Work 1: Foundations of investing

More information

Bank Products. 3.1 Introduction

Bank Products. 3.1 Introduction Bank Products Bank Products For many people, the first financial institution they deal with, and the one they use most often, is a bank or credit union. That s because banks and credit unions provide a

More information

Educated. For retirement plan participants Volume 17, Issue 2, 2014. Striking a. balance. and reaching goals. mybmoretirement.com

Educated. For retirement plan participants Volume 17, Issue 2, 2014. Striking a. balance. and reaching goals. mybmoretirement.com Educated For retirement plan participants Volume 17, Issue 2, 2014 Striking a balance and reaching goals. mybmoretirement.com Saving for retirement How to balance today s needs with tomorrow s goals Life

More information

Strategies for staying on track to your retirement

Strategies for staying on track to your retirement Strategies for staying on track to your retirement TIAA-CREF and you: Planning an income for life For more than 90 years, we at TIAA-CREF have dedicated ourselves to helping those who serve the greater

More information

Financial Planning in Your 20s and 30s

Financial Planning in Your 20s and 30s Financial Planning in Your 20s and 30s Financial planning varies throughout the different stages of life. Older people are often focused on planning for a comfortable retirement, while younger people often

More information

Budgeting Q & A. Table of Contents. Emergency Funds 2. Variable Income 2. Saving for Retirement 3. Paying Down Debt 3.

Budgeting Q & A. Table of Contents. Emergency Funds 2. Variable Income 2. Saving for Retirement 3. Paying Down Debt 3. Budgeting Q & A Getting Started We ve selected some commonly asked questions from over 200 submitted during September s Budgeting webinar. Although this information can help you better understand general

More information

Real Property for a Real Retirement.

Real Property for a Real Retirement. Real Property for a Real Retirement. Rent or Flip - Using your IRA or 401k to the fullest. Know the Right Time to Use Your Retirement Account and Get the Most From Your Real Estate Investments. 2011 CompleteIRA

More information

Invesco SIMPLE IRA Employee guide

Invesco SIMPLE IRA Employee guide Invesco SIMPLE IRA Employee guide How many years will you spend in retirement? And how much savings will you need to be able to live comfortably? According to the Employee Benefit Research Institute, 60%

More information

Federal Tax and Capital Gains: Rates Over Time

Federal Tax and Capital Gains: Rates Over Time Preparing for a World of Higher Taxes Are You Ready? Presented by: Matt Sommer, CFP, CPWA, AIF Director and Senior Retirement Specialist, Retirement Strategy Group C-0610-114 4-30-11 Federal Tax and Capital

More information

10 common IRA mistakes

10 common IRA mistakes 10 common mistakes Help protect your valuable retirement assets Not FDIC Insured May Lose Value No Bank Guarantee Not Insured by Any Government Agency You ve worked hard to build your retirement assets......

More information

Financial Planning Basics Financial Planning Fundamentals

Financial Planning Basics Financial Planning Fundamentals Financial Planning Basics Financial Planning Fundamentals An Overview of the Financial Planning Process The Ground to Cover Setting goals Budgeting Emergency fund Insurance Using credit Investing Tax planning

More information

Retire Rich. Written By Joshua Sharp Self Directed IRA and 401k Expert. Larry Goins. Real Estate Author, Trainer and Investor

Retire Rich. Written By Joshua Sharp Self Directed IRA and 401k Expert. Larry Goins. Real Estate Author, Trainer and Investor Retire Rich GetOutOfTheVolatileFinancialMarkets AndSuperchargeYourIRAorRetirement AccountUsingDiscountedRealEstate! RentorFlip UsingyourIRAor401ktothefullest.KnowtheRightTimetoUse YourRetirementAccountandGettheMostFromYourRealEstateInvestments.

More information

Invesco SEP Plan Employee guide

Invesco SEP Plan Employee guide Invesco SEP Plan Employee guide How many years will you spend in retirement? And how much savings will you need to be able to live comfortably? According to Bankrate.com report, 36% of Americans have no

More information

THE POWER OF AN IRA.

THE POWER OF AN IRA. THE POWER OF AN IRA. Put the Power of an IRA to Work For You Whether retirement seems like a lifetime away or is just around the corner, getting started on your retirement savings plan is one of the smartest

More information

Nurses Retirement Decision-Making Guide

Nurses Retirement Decision-Making Guide Nurses Retirement Decision-Making Guide A Joint Project of the Center for American Nurses and WISER, the Women's Institute for a Secure Retirement WISER THE WOMEN S INSTITUTE FOR A SECURE RETIREMENT The

More information

Fixed Deferred Annuities

Fixed Deferred Annuities Buyer s Guide to: Fixed Deferred Annuities National Association of Insurance Commissioners 2301 McGee St Suite 800 Kansas City, MO 64108-2604 (816) 842-3600 1999, 2007 National Association of Insurance

More information

THE TAX ACT OF 2001. More Savings More Choices

THE TAX ACT OF 2001. More Savings More Choices A10695 (10/01) THE TAX ACT OF 2001 More Savings More Choices Understanding the Economic Growth and Tax Relief Reconciliation Act of 2001 Summary of Rules Applying to Distributions from Tax-Favored Products

More information

BUYER S GUIDE TO FIXED DEFERRED ANNUITIES

BUYER S GUIDE TO FIXED DEFERRED ANNUITIES BUYER S GUIDE TO FIXED DEFERRED ANNUITIES IT IS IMPORTANT that you understand the differences among various annuities so you can choose the kind that best fits your needs. This guide focuses on fixed deferred

More information