How to Afford aHow to Afford aLong, Happy Long, Happy RetirementRetirement

Presented by(Name, CPA)

Member, The Ohio Society of CPAs

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Procrastination…

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• There’s only one side to waiting and that’s the downside– Don’t hold off planning for your

retirement: it cannot wait!

– Put your money where it counts – in savings!

Making the Case

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• Advocate for your future financial security

• Understand why you have to start NOW

• Get an advisor to pinpoint strategies

Making the Case

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• Plan to save– It is NEVER too early– It is NEVER too late

• Make the retirement of your hopes the retirement of your reality

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 don’t, 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 don’t 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 you’ll 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– I’m too young – It’s too late – I don’t 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% you’ll have

$6,977– After 20 years $46,204– After 30 years $100,452

• It’s NEVER too early and NEVER too late

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Close the Gap Between Your Projected Income

and Your Retirement Goals

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• 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

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

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