retirement gps seminar
DESCRIPTION
What are you doing to take charge of your retirement?TRANSCRIPT
©2009 Securian Financial Group, Inc.
Keeping your dreams on course
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Keeping your dreams on course
• Define your destination• Phases of retirement • Your financial fuel• Financial roadblocks &
detours • Make the right turns with a
knowledgeable guide
Define your destination
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Which way are you headed?
1. How will you spend your time?
2. Will your retirement include work?
3. Who will depend on you for personal and financial support?
4. Where is “home base” during retirement?
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What kind of retiree will you be?
• Traditional• Downshifter• Playcheck• Jhobbie• Boomer Entrepreneur• Sandwich Generation
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Phases of retirement
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Three Retirement Phases
Gearing up
Taking off
Cruise control
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Gearing Up
• First phase• Gathering information• Test drive
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Taking Off
• Second Phase• Active• Engaged• Managing Health• Downsizing• Tracking
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Cruise Control
• Third Phase• Active Health
Management• Patterns emerge• Legacy
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Your financial fuel
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Decumulation is different
• Accumulation:– Saving– Investing– Asset Allocation
• Decumulation:– Making the money last– Trade-off decisions– Asset depletion is inevitable
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Source: Securian Financial Group 2008 Financial Challenges of the 70-75 year old Millionaire Investor. All rights reserved.
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Fueling retirement years
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Source: EBRI, 2007 Retirement Confidence Survey
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Sources of Income
• Personal savings and investments• Pension Plans• Social Security• Employment during retirement
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Personal savings and investments
• 401k plans• IRA’s• Annuities• Stocks• Bonds• Mutual Funds• CD’s• Real Estate
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Investments will fluctuate and when redeemed, may be worth more or less than originally invested.
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Pension Plans
• Monthly income stream• Lump sum distribution• Retirees need to create their own retirement
income
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Social Security
• Personal Earnings & Benefit Statement• Check benefits at www.ssa.gov • Benefits taken before full retirement age may be
considerably reduced
Social Security Administration: Income of the Aged 2004 Chartbook, released September 2006
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Employment during retirement
• 72% intend to continue to work• 34% of retirees currently working• 47% retired sooner than anticipated
2009 Retirement Confidence Survey. A research report from the EBRI Education and Research Fund.
Financial roadblocks and detours
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Roadblocks
• Living a longer life & staying healthy• The effects of inflation• Carrying debt into retirement• How you really spend your money• When & how much to withdraw
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Living a longer life
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Living a longer life
• Add at least 10 years to projections of life expectancy
• Get an independent perspective – work with a financial advisor
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The effects of inflation
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The effects of inflation(This is showing the hypothetical value of $1 invested in 1926.)
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This is a hypothetical value for illustrative purposes only and is not indicative of any particular investment. Past performance does not guarantee future results. You cannot invest directly in an index.
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Previous Graph Disclosure
Note: The data assumes reinvestment of all income and does not account for taxes or transaction costs. The average return represents a compound annual return. Government bonds and Treasury bills are guaranteed by the full faith and credit of the United States Government as to the timely payment of principal and interest. Stocks are not guaranteed. Small company stocks are more volatile than large company stocks, are subject to significant price fluctuations and business risks and are thinly traded. An investment cannot be made directly in an index. Past performance is no guarantee of future results.
Source:• U.S. Small Company Stocks — Represented by the fifth capitalization quintile of stocks on the NYSE for 1926 - 1981 and the performance of the Dimensional Fund Advisors (DFA) Small Company Fund thereafter.• U.S. Large Company Stocks — S&P 500 Index, which is an unmanaged group of securities and is considered to be representative of the stock market in general.• U.S. Long-Term Government Bonds — 20-year U.S. Government Bond.• U.S. 30-day Treasury Bill — 30-day U.S. Treasury Bill.• U.S. Inflation — Consumer Price Index.
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The effects of inflation
• Use Consumer Price Index (CPI) + 1%• 3.5% - 5% historically• Most retirees need some exposure to equities• Unpredictable – need to adjust along the way
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Carrying debt into retirement
• Debt restricts your financial flexibility • Reduces income• Affects your ability to have a comfortable
retirement
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Carrying debt into retirement
• Retire debt-free• Retire mortgage-free
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How you really spend your money
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How you really spend your money
• Target between 70 – 85% of pre-retirement income
• Requires detailed tracking of expenses to get it right
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How you really spend your money
• 60% - 80% pre-retirement income• Increase that by 5% -10%• Adjust as necessary
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When and how much to withdraw
This is a hypothetical example for illustrative purposes only and is not indicative of any particular investment. Investments will fluctuate and when redeemed, may be worth more or less than originally invested.
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When and how much to withdraw
• Determine how much of your income comes from guaranteed sources
• Adjust discretionary expenses during down markets
• Determine a balance of guarantees and growth
Make the right turns with a knowledgeable guide
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Mapping your route
• Think about how you want to spend your retirement
• Watch for roadblocks• Take inventory of finances• Work with an advisor.
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Get started now!
Schedule a complimentary, no obligation, one hour consultation
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DOFU: 1009A03710-1009
Securian Financial Group, Inc.www.securian.comInsurance products offered by Minnesota Life Insurance Company, Securities offered through Securian Financial Services, Inc. Member FINRA/SIPC.400 Robert Street North, St. Paul, MN 55101-2098 • 1.800.820.4205©2009 Securian Financial Group, Inc. All rights reserved.