More of What You Value

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More of What YouValue
Presented By David Strege, CFP, CFA Senior
Wealth Coach
Syverson Strege Company Wealth Coaching West
Des Moines, IA
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Why Do People Fail to Accomplish Their Objectives?

• Goals are never written down.
• A plan is never developed.
• The plan is never implemented.
• Cash Flow is not properly managed
• The plan is not periodically reviewed and
  adjusted.

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Steps in the Financial Planning Process

• 1-Gather Personal and Financial Data
• 2-Establish Goals
• 3-Process and Analyze Information
• 4-Develop Comprehensive Financial Plan
• 5-Implement the Plan
• 6-Monitor the Plan

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What Do You Value?

• Marriage
• Family
• Spirituality
• Education
• Work
• Material Wealth
• Self

• Recreation Entertainment
• Physical Health
• Friends
• Travel
• Community
• Aesthetics
• Giving

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R-Factor Question

• Over the next three years what has to occur for
  you to feel happy about your progress with
  respect to
• Financial Independence?
• Family Legacy?
• Social Legacy?

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Dangers

• What are those things that would stop you from
  attaining your vision?
• What worries keep you awake at night?
• Will the process you are using now get you to
  where you want to go?
• What happens if you dont take any action?

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Opportunities

• What is the desired result?
• Why is the desired result important?
• What prospects are you excited about?
• What does your life look like if you attain your
  vision?

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Strengths

• What support and resources can you bring to bear
  for your vision?
• What personal abilities, attributes and skills
  can you utilize?
• What do other people say you are good at?
• What has worked so far for you to achieve your
  desired result?

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Planning Lifestyle

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Setting Goals
Page 1-3

• Determine what is important to you and set goals
  accordingly

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The Great Secret ToFinancial Security
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Spend Less Than You Earn
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Spend Less Than You Earn

• Defines possible problems in spending patterns.
• Identifies opportunities to overcome the
  problems.
• Helps realistically improve spending habits.

Use A Budget
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Annual Expense Information
Project your expenses as accurately as possible.
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ANNUAL GROSS INCOME
CASH FLOW SUMMARY
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All Income
Social Security
Pension Other Income
IRA Required Minimum Distribution (RMD)
Interest Dividends
Salary
Emergency Savings 3 to 6 month living expenses
Reinvestment Wealth Transfers
Savings
Checking
Irregular Living Expenses
Regular Living Expenses
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Advantage of Starting Early!
Assume 1,000 Contributed Annually
If saved from Age 31 to 65 34,000 236,024
270,024
If saved from Age 21 to 31 10,000 437,880
447,880
Total Saved Investment Gain Available at 65
Assumes single deposit at beginning of year, 10
gain versus rate of return annually. This is a
hypothetical example for illustrative purposes
only.
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Cost of Waiting Until Next Year

• Accumulation in 30 years........ 180,943
• Accumulation in 29 years........ 163,494
• Cost of equal difference........... 17,449
• Cost per month......................... 1,454
• Cost per day.............................. 47

Assumes contribution of 1,000 per year _at_ 10.
This is a hypothetical example for illustrative
purposes only.
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The Cost of Waiting to Invest

• Here are the monthly investments required at
  different ages to accumulate 1,000,000 by age
  65, assuming a 10compounded rate of return.

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Emergency Reserves

• 3-6 Months Living Expenses
• to cover
• Repairs or Replacements
• Medical expenses
• Emergency Travel
• Cash Flow Crisis
• Utilize savings or money market accounts

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Planned Expenditures

• Occurring in 1-3 years
• Car Replacement
• Large Trip
• Home Remodeling
• Utilize short-term bonds or
• Certificates of Deposit

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The Amount to Invest for Financial Security
You can replace 80 of your Current Income at
retirement with only personal resources by
investing the following percentage of your gross
income.The percent you need to invest of gross
income depends on how long before you want
financial independence.
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Retirement Facts
30-40 Years Working and Accumulating
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How Much Will I Need?

• How Long Must I Live Without Paychecks? Longer
  than you might think!

• At Age 65, What is the probability of surviving
  to

AGE MALE FEMALE JOINT 70 92.3 95.6 99.7 80 6
4.8 77.9 92.2 90 25.5 39.5 55.1 100 3.1 6
.2 9.2
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Inflation
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Effects of Inflation
AT 5 INFLATION, TO HAVE 30,000 WORTH OF
TODAYS PURCHASING POWER IN 20 YEARS YOU WILL
NEED 80,000
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How Much Will I Need?

• Plan on Inflation...

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History of the U.S. Marginal Tax
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Wise Decisions
Peace of Mind
Does the plan allow you to

• Direct your social capital in a manner consistent
  with your personal value system?
• Transfer what you have, to whom you want, when
  you want, how you want, and the way you want at
  the lowest possible cost?
• Retain sufficient resources to protect your
  financial security and maintain your desired
  lifestyle?

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What To Do
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Questions?