Retirement Strategies For The Next Millennium

1
Retirement Strategies For The Next Millennium

• Your Name
• Personal Financial Specialist

2
Recommending a Strategy

• Ideas for Today and Tomorrow
• Saving is a Lifelong Endeavor
• Planning Removes Doubt and Uncertainty
• Time Is Money

3
Vision Statement

• Designing Your Future
• Anticipating and Creating Opportunities

4
Goal and Objective

• To Maintain Your Independence and Lifestyle
  During Retirement
• Reducing Your Dependence on Social Security
  Income

5
Todays Situation

• Fact Personal savings have fallen from almost 12
  percent of GDP in 1965 to about five percent in
  1995.
• Fact To make good on promised benefits in the
  next century, it is estimated that Social
  Security payroll taxes would have to increase
  between 33 and 50 percent.

6
Todays Situation

• Fact Currently, less than half of all workers
  are covered by a pension plan.
• Fact In 1996, Americans between the ages 30 and
  49 had only accumulated one-third of what they
  will need to retire.

7
Dont Panic, Take Control

• These facts show that Americans need to take more
  responsibility and be more aggressive about
  saving if they want to maintain their current
  lifestyle in retirement.

8
How Did We Get Here?

• With aging comes retirement. Current number
  crunching indicates the traditional "three-legged
  stool" of Social Security, pensions, and savings
  will not be enough to meet the demands of the
  coming retired population.
• Fifty years ago, over 40 workers paid in to
  Social Security for every one beneficiary. In 14
  years, when Baby Boomers begin to retire, there
  will be fewer than three workers per beneficiary.
  Current levels of spending on entitlement
  programs are not sustainable.

9
What Is My First Step?

• Deciding When To Retire
• Factors
• Life Expectancy
• Eligibility for Social Security
• Employers Pension Plan

10
Other Important Considerations

• Estimating How Much Money Youll Need In Each
  year of Retirement
• Number of years you expect to be retired
• Lifestyle you desire
• Rate of inflation

11
Retirement Income

• Social Security
• Employer Pension Plans
• Retirement Savings Plans
• Personal Investments

12
Take Advantage of Your Current Situation

• 401(k) Plan
• Roth IRA
• Simplified Employee Pension Plan
• Keogh Plan

13
Inflation

• Dont ignore the effects of Inflation

14
Investments - Tax Advantaged

• U.S. Treasuries
• Municipal Bonds
• Annuities

15
Investments - Taxable

• CDs
• Corporate Bonds
• Corporate Stock
• Invest through Mutual Funds

16
Recommendation

• Calculate how much income will be necessary to
  live in retirement with the degree of comfort you
  desire.
• Get an estimate of what Social Security benefits
  will be.
• Determine how much savings and investment return
  will be needed to meet your personal goals.
• Periodically review your plan and adjust if
  necessary.
• SET RETIREMENT GOALS - BEGIN PLANNING NOW!