Planning Your Retirement with Confidence

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Planning Your Retirement with Confidence
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Who is a Pre-Retiree?

• Pre-retirees include any full or part-time
  member of the workforce who does not consider
  themselves retired.
• Retirement planning can be thought of as a four
  stage process
• Early Career First five years of employment.
• Mid-Career Period between first and last five
  years of employment.
• Near Retirement Last five years of employment.
• Retirement Period after leaving employment.

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Where Do I Want To Be When I Retire?

• While retirement might not be at the forefront of
  your concerns, it should still be a
  consideration.
• Financial decisions made at this point in your
  life can have a major impact in later stages of
  your retirement planning.
• Early in your career, you possess the most
  valuable resource available in retirement
  planning time.
• Identify and make use of retirement planning
  resources. Educate yourself on how to be a wise
  investor and be one step closer to your
  retirement goals.

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Start Smart! Important Questions To Ask.

1. Do I feel confident in the management of my
   income and expenses?
2. What position do I want to be in financially when
   I retire?
3. Does the job I have provide enough income, as
   well as health and retirement benefits, for my
   needs?
4. Do I understand basic investment principles that
   will help me make wise investment decisions while
   planning for my retirement?

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Smart Moves Follow These Tips

1. Estimate the amount of money you think you will
   need in retirement.
2. Consider having a professional help you form a
   retirement plan that works for you and start
   investing now.
3. Ask if your employer offers a retirement and/or
   health benefits program.
4. Manage your wants and needs when making
   purchases. Learn how to acquire assets
   responsibly using credit, and keep your debt in
   check.
5. Understand basic investment principles, such as
   compound interest, risk and reward and
   diversification.
6. Learn about fraud prevention and how to avoid
   investment scams.

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Is This Where I Want To Be?

• In addition to planning for your own retirement,
  you may also find you are part of the Sandwich
  Generation, a demographic caught in the middle
  of raising children and caring for an elderly
  loved one.
• As retirement approaches, your level of planning
  and types of investment decisions may have left
  you with fewer savings than you had envisioned.
• Uncertain economic conditions may present the
  need to plan for contingencies in the event of
  layoffs or wage freezes.

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The Balancing Act Some Considerations

1. Ask yourself Is this where I want to be? or
   Did I think I would be farther along financially
   by now?
2. Define what retirement means to you.
3. Strive to achieve financial balance in the
   lifestyle you want now with investing for the
   retirement that is yet to come.
4. Review your investment strategy for your
   retirement savings. Are you on track to meet your
   retirement goals?

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Smart Moves Follow These Tips

1. Use additional income from raises or elimination
   of debt to add to retirement assets.
2. Do a reality check. Identify your sources of
   retirement income pension, retirement plan,
   social security, rental property income etc. 
   Assume you will need as much in retirement as you
   do now.
3. Look at your estate planning. Do you have long
   term care insurance, life insurance or medical
   insurance? Will you be able to afford these or
   benefit from these when you retire?
4. Evaluate your investment strategy. Do you need to
   make adjustments in your portfolio to help meet
   your retirement goals?

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Am I Where I Thought I Would Be?

• In the third phase of planning for your
  retirement you are in the final years of your
  career.
• You are likely at the peak of your earning
  capacity and enjoying a lifestyle you would like
  to continue into retirement.
• If faced with insufficient retirement funds, it
  can be difficult to feel confident.
• With five to ten years until retirement, its
  time to seriously evaluate your current
  retirement plan.

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Facing Your Retirement Financial Goals

1. Review current budget and evaluate investment
   strategy. Are there adjustments to be made in
   your portfolio to help meet your retirement
   goals?
2. Consider what you might do if you were laid off
   from your job or presented with early retirement
   options.
3. Explore the possibility of part-time or
   alternative employment options during retirement
   to supplement your retirement savings.

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Smart Moves Take Action

1. Review your investment portfolio and assets to
   address your changing tolerance for risk.
2. Anticipate tax implications in retirement.
3. Revisit your retirement plan and expectations for
   retirement lifestyle and life expectancy. It is
   very possible that if you retire at 60 you could
   live another 30 years.
4. Know how to protect yourself from investment
   fraud.

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Am I Finished With My Retirement Planning?

• In this fourth phase of retirement planning, you
  will want to keep peace of mind, retain your
  financial security and independence, and decide
  what, if any, type of financial legacy you want
  to leave.
• Although you may have now reached retirement, it
  is wise to continue to evaluate your current
  finances and investments to determine if you have
  planned appropriately.

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Keep it on Track Considerations

1. Look at how inflation might affect your cost of
   living over time. Does your investment strategy
   account for increased expenses?
2. Be aware of burn rate or how quickly you will
   use funds available from your retirement assets.
3. Be aware of potential investment scams and fraud
   as you may become a target for elder abuse or
   fraudulent investments.
4. Even in retirement you may still need an
   investment plan that will provide growth as well
   as preserve your retirement funds.

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Smart Moves Follow These Tips

1. Continue to research the terms and conditions on
   your retirement accounts. (e.g. make sure you
   understand roll-over requirements and
   restrictions).
2. Continue to review your investment account
   statements. Understand how your funds are being
   invested.
3. Assess standard of living costs, risk tolerance
   and asset allocation.
4. Understand tax implications in retirement, such
   as withdrawing funds.
5. Avoid investment fraud. Learn how to identify
   predatory scams and remember there is no such
   thing as a free lunch!

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Resources
Ballpark Etimate Worksheet - Employee Benefit
Research Institute www.choosetosave.org/ballpark/
Helps approximate how much you need to save to
fund comfortable retirement. Uses easy to
understand language and mathematics. Decumulation
Understanding Your Retirement Paycheck -
National Endowment for Financial Education
www.decumulation.org Provides tips and
information to help optimize your retirement
paycheck by making wise decisions. Retirement
Confidence Survey (2009) - Employee Benefit
Research Institute www.ebri.org/surveys/rcs/2009
Breaks down investors by age groups and looks at
expected retirement, working in retirement and
meeting expenses in retirement. Retirement
Estimator -   Social Security Administrators
www.ssa.gov/planners/calculators.htm Helps
Americans calculate Social Security benefits
going into retirement.
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Resources
Retirement Income Calculator Service
Canada https//srv111.services.gc.ca/INT_01.aspx?l
ange Takes you step by step through an estimate
of the ongoing income Canadians may receive
throughout retirement. Retirement Planning
U.S. Financial Literacy and Education Commission
www.mymoney.gov/retirement.shtml Contains tips
and resources on a variety of retirement planning
considerations. Taking the Mystery out of
Retirement United States Department of Labor
www.dol.gov/ebsa/publications/nearretirement.html
Outlines information and resources on how to plan
for a lifetime. Top 10 Ways to Prepare for
Retirement United States Department of
Labor www.dol.gov/ebsa/publications/10_ways_to_pre
pare.html Offers tips on preparing for retirement.
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Questions?