Lifecycle Planning

Retirement planning strategies for every stage of your life

Retirement Planning

• Retirement planning is not an isolated, one-time event

• Saving and investing strategies should be adapted to reflect changing goals and circumstances as individuals move throughout their life.

Retirement Planning Strategies For Your 20s

• Make retirement planning a priority

• I’ve got plenty of time until retirement, and I don’t have much disposable income right now, so I’ll set up a retirement savings plan in a few years,” is the mindset of many 20-somethings

Retirement Planning Strategies For Your 20s

• An IRA started at age 22 that accumulates $5000 by age 25 with no further investment will yield $54,787 at age 65. (6% interest rate compounded)

• An IRA started at age 32 that accumulates $5000 by age 35, will yield only $30,113 at age 65. (with the same criteria as the first example)

The Rule of 72

Money approximately doubles in the number of years equal to 72 divided by the return generated.

So if you earn 6 percent a year on your savings, your money would double in about 12 years (72 / 6 = 12).

Each decade that is delayed in saving for retirement could cost you the opportunity to double your money.

Retirement Planning Strategies For Your 30s

The 30s often represent a time of greater earning potential.

Individuals start to advance in their careers and move up the corporate ladder.

30s

However, they may also have started a family and assumed more financial responsibilities:a mortgage, life insurance, multiple car payments, and all of the expenses involved in raising children.

30s

• Set financial priorities• Maintain consistency

in making retirement plan contributions

• Increase the contributions as income rises

30s

• Eventually, you may reach the annual contribution limits allowed by law for qualified retirement plans like IRAs and employer-sponsored 401(k) plans.

• In this instance, you may want to consider alternate retirement planning vehicles that feature higher contribution limits (or no limits at all)

Retirement Planning Strategies For Your 40s

Income may be greaterFinancial responsibilities may also be greater• children’s college

education• helping care for aging

parents

40s

Keep your eye on the goal

Don’t push retirement to the back of the line

Look into Roth IRAs

The 50s: Approaching the Finish Line

The 50s often represent the peak earning years Opportunity for one last push to save as much money as possible before retiringShift the asset allocation mix to help preserve the assets in a retirement plan

Retirement Planning Strategies For Your 60s

Manage your savings and investments in a way that will help protect, rather than grow, your income and principal

Begin planning your retirement budget

Plan for future cost of health care

Factor in the effects of inflation

Retirement Planning Strategies For Your 70s

Budgeting and Portfolio DistributionBalance your monthly budget needs with your long-term future requirements

Consider whether to take a set amount each month or a percentage of balance

70s

Working in retirement

Times have changed

Many older Americans are continuing to work

This material is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. (DLA).

This material does not constitute an offer or recommendation to buy or sell securities and should not be considering in connection with the purchase or sale of securities.