How to Afford a Long, Happy Retirement

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How to Afford aLong, Happy Retirement

• Presented by
• (Name, CPA)
• Member, The Ohio Society of CPAs

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Procrastination

• Theres only one side to waiting and thats the
  downside
• Dont hold off planning for your retirement
  it cannot wait!
• Put your money where it counts in savings!

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Making the Case

• Advocate for your future financial security
• Understand why you have to start NOW
• Get an advisor to pinpoint strategies

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Making the Case

• Plan to save
• It is NEVER too early
• It is NEVER too late
• Make the retirement of your hopes the retirement
  of your reality

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Why You Have to Take Charge

• Hard to ignore reasons to start saving for your
  retirement now
• You will need 2/3 to 3/4 of current income for
  financial stability during retirement years
• If you start saving in your 20s or 30s you can
  possibly be a millionaire by retirement age

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A Successful Retirement

• Step 1 Pinpoint your major sources of
  retirement income
• Step 2 Take a realistic look at your retirement
  costs and goals
• Step 3 Close the gap between income and goals

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Pinpoint Your Major Sources of Retirement Income

• Inventory all of your anticipated sources of
  retirement income
• Consider which ones you have, which ones you
  dont, and which ones you should consider adding

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Pinpoint Your Major Sources of Retirement Income

• Social Security
• Provides retirement income and basic financial
  support
• Employer Pension Plan
• Retirement income must be fully vested with a
  company to make this worthwhile
• Employee Contribution Plans, e.g. 401(k)
• Highly effective approach to putting money away
  for retirement

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Pinpoint Your Major Sources of Retirement Income

• IRAs
• Tax-advantage retirement option that can be set
  up through your banker
• Traditional IRAs
• Roth IRAs
• Consult a CPA to learn more about which IRA is
  best for your retirement planning

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Pinpoint Your Major Sources of Retirement Income

• Private Investments
• Consider a second career
• Out of necessity
• To pursue a passion
• Look at the tax consequences
• Higher tax bracket?
• Affect your Social Security?

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Take a Realistic Look at Retirement Costs and
Goals

• The operative word here is REALISTIC. You need
  to be honest with yourself NOW so you are
  protected from unpleasant surprises when entering
  retirement.

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Take a Realistic Look at Retirement Costs and
Goals

• Questions to consider when evaluating your
  retirement expenses and financial
  responsibilities
• Will you keep or sell your current home? Do you
  have a mortgage?
• Do you want to duplicate your current lifestyle?
• Will you be paying to educate children?
• Which of your medical expenses will be covered?
• Do you plan to travel?

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Take a Realistic Look at Retirement Costs and
Goals

• Be sure to take inflation into account when
  calculating your retirement expenses
• Most pension plans and Social Security factor in
  a cost of living increase to account for
  inflation
• Being on a fixed income as a retiree can be
  devastating if you dont plan for inflation

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Close the Gap Between Your Projected Income and
Your Retirement Goals

• Turn plans of actions and ideas into reality
• There is a gap between your retirement goals and
  the money youll need to support them
• Close the gap and see the results

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Close the Gap Between Your Projected Income and
Your Retirement Goals

• Common excuses for avoiding saving for retirement
• Im too young
• Its too late
• I dont have enough money to put away
• There are other expenses

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Close the Gap Between Your Projected Income and
Your Retirement Goals

• There are no excuses not to start NOW
• One point to attack all arguments The Power of
  100
• There is amazing power in putting away 100 a
  month towards your retirement

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Close the Gap Between Your Projected Income and
Your Retirement Goals

• The Power of 100 How powerful is it really?
• After 5 years earning 6 youll have 6,977
• After 20 years 46,204
• After 30 years 100,452
• Its NEVER too early and NEVER too late

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Close the Gap Between Your Projected Income and
Your Retirement Goals

• Remember to consider
• Your current age
• Your desired retirement age
• Your tolerance for risk
• Tax implications now and at retirement
• Consider individual investments
• Investments are proven pivotal in closing the
  retirement income gap

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Close the Gap Between Your Projected Income and
Your Retirement Goals

• Tax-Advantaged Retirement Investments
• U.S. Treasuries
• Municipal Bonds
• Annuities

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Close the Gap Between Your Projected Income and
Your Retirement Goals

• Taxable Retirement Investments
• Certificates of Deposit (CDs)
• Corporate bonds and stocks

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Beware of Common Pitfalls

• Get rich quick schemes
• Over-caution
• Not enough diversification
• Tapping into your retirement investments

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Protecting Yourself in Retirement

• Put aside 100 extra a month
• Diversify
• Take advantage of anything and everything your
  company offers
• Use tax advantaged vehicles
• Start right NOW

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For further information

• If you would like further information or
  assistance with retirement planning, please
  contact me
• Name
• Company
• Address
• Email
• Phone