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Planning for Retirement
Presented by
Stacey Braun Associates, Inc. Provider of the I.U.O.E. Local 94 Financial Counseling Benefit
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Planning for Retirement Pension Annuity Health Insurance Social Security
Defining Retirement Cash Flow Investments Taxation Insurance Estate Financial Assistance
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Define Retirement Goals
Retirem
ent Goals
Age at Retirement? Where will you live? What debt will you have? What will you do? (Travel, Hobbies, etc.) What will your lifestyle be?
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Retirement Expenses
Retirem
ent Expenses
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Retirement Income
Retirem
ent Income
+ Pension + Social Security + Other Employment = Total Income - Less amount needed (Step 1) = Deficit or Surplus* * Will need to withdraw from retirement savings
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Retirem
ent Accounts
Sources of Retirement Income
Pension Social Security Annuity Fund Other Accounts
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Pension
Pension
Obtain an estimate Types Single Life (60 payments guaranteed) Joint (options - 50%, 66 2/3%, 100%) Factors Assume worst case scenario Does spouse have a pension? Insure your pension?
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Social Security
Social Security
When?
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Retirem
ent Accounts
Retirement Accounts
Annuity Account IRA Rollovers Roth IRAs
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Retirem
ent Accounts
Timeline
Pension Social
Security
CASH NON RETIREMENT RETIREMENT
RMD’s
62 66/67 70 100
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Investments
Investments Take a “Financial Snapshot”
Stocks, bonds and cash The closer you are to needing the funds, the safer
the funds should be Understand risk vs. reward Diversify
403(b)1 Investing
Historical Returns
0.10
1
10
100
1k
$100k
1926 1936 1946 1956 1966 1976 1986 1996 2006
Past performance is no guarantee of future results. Hypothetical value of $1 invested at the beginning of 1926. Assumes reinvestment of income and no transaction costs or taxes. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. © 2014 Morningstar. All Rights Reserved.
$26,641
$4,677
$21
$13
$109
Compound annual return • Small stocks 12.3 % • Large stocks • Government bonds • Treasury bills • Inflation
10.1 5.5 3.5 3.0
10k
Investing
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403(b)1 Taxation
Taxation
Pension: Fully taxable at Federal and State level. Social Security: Not taxed by New York. Up to 85% will be taxed at Federal level. Retirement Accounts: Fully taxable at Federal level. After $20,000 New York State tax exclusion, fully taxable at NY State level.
Required Minimum Distributions: Required at age 70 ½ from your retirement accounts.
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403(b)1 Insurance
Insurance
Life Long-Term Care
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403(b)1 Investing Estate Planning
Estate Planning
Wills Health Care Proxies/Living Wills/Power of Attorney Trusts/TOD Accounts Check Beneficiaries
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403(b)1 Financial A
ssistance
Financial Assistance
Financial Counseling Benefit – Stacey Braun Associates Hiring a Professional Fees vs. Commission Designations and Fiduciary Responsibility
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403(b)1 R
oadblocks
Roadblocks to Financial Success
• No goals • Lack of understanding • Debt • Poor investment choices • Inflation • Taxation • Procrastination
Roadblocks
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403(b)1 H
elpful Hints
Helpful Hints
Set Goals Take a Financial Snapshot Know your monthly expenses Make sure debt is under control or paid off Ensure assets are invested according to a plan Obtain your pension projection Obtain your social security benefit projection Meet with a financial counselor (Stacey Braun) Protect your assets (insurance, estate documents, etc) Make sure affairs are in order (estate docs, beneficiaries, etc.)
Call to Schedule your FREE consultation!
1-888-949-1925