Planning For Life

Understand your monthly spending and /or monthly budget Have a proper handle on your monthly income sources Don't forget about medical or health care cost Decide whether you are going to enlist the help of a financial professional Develop a written financial plan

Method #1- Systematic Withdrawal- Also know as the 4% withdrawal rule or “Goal-based” Method #2- Time-segmentation or “bucketing” Method #3- Income Flooring Method #4- Guaranteed Cash Flow planning  

Why can retirement be so stressful? 1. Focus on the big picture, not just potential returns 2. Consolidate your accounts 3. Broad diversification 4. Automate your income 5. Strip your investment strategy down 6. Go green-paperless 7. Can a “bucket plan” help you?

How much money do I need to retire? What is an RMD? How do taxes work with my social security and/or pension plan? How much could healthcare cost in retirement? When can I withdraw money from my retirement accounts?

Stock market downturn at the wrong time Not enough diversification Fear of uncertainty Not enough monthly income

What is an annuity? Immediate vs Deferred- the difference Does the beneficiary inherit your payment or your cash value? Do you have to annuitize your annuity to turn it into a income stream? Is there any insurance on the annuity or payment? How do the fees work? How do annuities earn interest? How does the insurance agent or financial advisor get paid for the annuity? Bonus! Do insurance agents or financial advisor have multiple options for annuities they can use?

Inflation Risk Longevity Risk Long-term illness/Chronic Illness Risk Rising health care cost Emotional/irrational investor behavior Losing money “safely” Sequence of return risk

Investing too conservatively Best way to approach the lump sum vs. pension decision Focusing on your assets instead of your retirement income Choosing the right Medicare plan

How long do you plan to work? What are some pros and cons? How long will your retirement last? Identifying income sources, tracking your expense, planning for inflation and managing risk! How will you generate income in retirement? Guaranteed income, Non-guaranteed income and Combination income! What is the ultimate purpose of your assets?

What is a “financial milestone?” Age 55, age 59.5, Age 62, age 65, age 66-67, age 70 and age 72 What about Medicare and all it’s moving parts? Other financial milestones that change your life (College planning, marriage and divorce)

Accumulation Phase Preservation Phase Distribution Phase

Let’s define what “rule of thumb” really means Save 10% of your income rule Using your age to determine your risk/non risk allocations. “rule of 100” You will need 70-80% of working income in retirement 4% rule You need $1,000,000 at least to retire

1. Sequence of Return Risk and Stock Market Timing 2. Rising Cost of Health Care and Long Term Care 3. Outliving your nest egg 4. Inflation

Let’s define what happiness means Key steps: Define what you want out of your retirement Set your target date Develop an income plan Get a part time “fun” job Don’t get complacent

Time to “tighten-up” that budget Explore some consolidation efforts Payoff or reduce your debts Hire a financial planner Reduce your investment risk

Mistake #1- Underestimating your needs Mistake #2- Panic Selling Mistake #3- Not knowing what happens when you take money out of an account Mistake #4- Listening to the “hot tip” Don’t follow the herd-

What is the right number to focus on? Best method to determine where you stand? Creating a retirement budget and all if its moving parts! What about life’s variables? Are you prepared? What should you do?

Is there one superior financial vehicle to all others? Can I have money in only one world of money and still be successful? What financial vehicles should I consider once I retire? How can I invest my nest egg to help maximize my retirement income? Are there financial advisors that have access to all 3 worlds of money?

How much does it cost to buy and sell stocks? Are all mutual funds loaded with commissions attached to them? What other type of fees are inside mutual funds? Why do ETF’s have lower expense ratios that most mutual funds? Do annuities have fees?

What exactly is Medicare and what all does it cover? What is the difference between Medicare part A, B, C and D? What is the difference between and Medigap plan and a Med Advantage Plan?

Avoiding assumptions What assumptions? The magic number, understanding your lifestyle, life expectancy, contingent assets, and inflations impact. How to determine how much you need to retire Key factors- creating a safety and growth bucket Health Care Debt

Why to old school retirement in ending The current retirement age Finding the right advisor What questions to ask that advisor.

These are the 5 phases we will discuss- Imagination Anticipation Liberation Reorientation Reconciliation We will also discuss why it's never too late to plan for retirement, no matter how old you are!

reduce your fixed expenses keep earning income maximize social security if possible consider using programs that offer income for life don't overlook taxes protect your health and well being

We are living longer Pensions are becoming extinct Social Security Under Pressure Not knowing how to invest Interest rates are low Rising health care cost

Stock Market Risk Sequence of return risk Longevity Risk Inflation risk Bond Risk/Interest Risk

Why companies are offering pension buyouts How does interest rates play a part in this? What about longevity and liability?

Have you forgot about 2008? Are you in the retirement red zone? Have you considered the impact of needing long term care?

1)   You are not alone    2)   Set a goal  (save more, spend less, work longer)   3)   Sooner you start the better