Is Retirement Within Your Reach?
1 / 40

Is Retirement Within Your Reach? PowerPoint PPT Presentation

Is Retirement Within Your Reach?. Is a retirement plan really necessary?. Your Retirement Goals. What’s your choice?. Retire by age ? Work part-time? Travel? Buy home in warmer climate? Reduce lifestyle? Maintain or increase current lifestyle?.

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.

Download Presentation

Is Retirement Within Your Reach?

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript

Slide1 l.jpg

Is Retirement Within Your Reach?

Slide2 l.jpg

Is a retirement plan really necessary?

Slide3 l.jpg

Your Retirement Goals

What’s your choice?

Retire by age ?

Work part-time?


Buy home in warmer climate?

Reduce lifestyle?

Maintain or increase current lifestyle?

Slide4 l.jpg

Which one will you be driving when you retire?

Slide5 l.jpg

When do you plan to retire?



How much to save?

Age 55

Age 35

Slide6 l.jpg

How long will your retirement last?

Slide7 l.jpg

What will retirement cost?

Slide8 l.jpg

What are your sources of retirement income?

Slide9 l.jpg

Sources of Retirement Income

  • Company Retirement/Pension Plans

  • Social Security

  • Individual savings

    Tax deferred or taxable

  • Part time work

Slide10 l.jpg

How much have you currently set aside for retirement?

Slide11 l.jpg

Estimating the Amount to Save

  • Retirement income goal

  • Social Security and Pension income

  • Additional income needed

  • Value of assets currently owned

  • Revised amount to save

Slide12 l.jpg

Retirement Calculators

Slide13 l.jpg

Social Security

  • Contribute for 40 quarters

  • Replacement rates between 59% and 24% depending on income earned

  • Collect full benefits at designated retirement age

Slide14 l.jpg

Full Retirement Age by Year of Birth

Year of BirthFull Retirement Age

1937 & earlier65 years193865 years, 2 months193965 years, 4 months194065 years, 6 months194165 years, 8 months194265 years, 10 months1943 - 195466 years195566 years, 2 months195666 years, 4 months195766 years, 6 months195866 years, 8 months195966 years, 10 months1960 & after67 years

Slide15 l.jpg

Check Social Security Records

  • SSA will automatically mail your statement of retirement, disability & survivor benefits 90days before your birthday

  • Use “Requests for Earnings and Benefits Form” from Social Security office or call

  • 1-800-772-1213 or consult web site

  • Save IRS W-2 Forms

Slide16 l.jpg

Retirement Plans

  • Company Retirement Plans

  • Salary Reduction Retirement Plans

  • Individual Retirement Accounts (Traditional or Roth)

  • Plans for the self-employed

Slide17 l.jpg

Contributions with pre-tax dollars lowers taxable income.

Slide18 l.jpg

Maximize benefits from your Retirement Plans

  • Begin contributions as soon as possible.

  • Make maximum contributionsallowed, if possible.

  • Choose investments that pay high earnings

Slide19 l.jpg

Saving in a Tax Deferred versus a Taxable Account






Taxable Account

$ 24,420

$ 59,201



Tax Deferred

$ 26,414

$ 69,414



Slide20 l.jpg

Individual Retirement Accounts

  • Tax-deferred retirement program

  • Must have earned income or alimony

  • Contribute up to *:$4,000 in 2005-07

    $5,000 in 2008

*Amounts shown are for individuals.

Amounts double for couples.

Slide21 l.jpg

Traditional Individual Retirement Accounts

  • Fully deductible from income taxes if no retirement plan at work.


  • May be partially or fully deductible based on Adjusted Gross Income.

Slide22 l.jpg

Deductible IRA Income Limits

Slide23 l.jpg

Deductible IRA Contributions

Reduce taxable income

Report on 1040 tax form

Slide24 l.jpg

Traditional Non-deductible IRA Contributions

File IRS Form 8606 with Federal Tax return

Retain copy permanently

Slide25 l.jpg

Investing in Traditional IRAs

  • Check yearly maintenance fees.

  • As IRA grows in value see if fee can be removed.

  • 10% penalty plus taxes on amount withdrawn before age 59 1/2.

Roth ira l.jpg

Roth IRA

Contributions made with after-tax dollars

No mandatory age for withdrawals

No mandatory age limit for contributions

Contributions (after-tax dollars) always available for withdrawal without penalty

Roth ira rules l.jpg

Roth IRA Rules

  • Withdrawals of earnings are not taxed if…

    • Account is 5 years old and

    • You are at least 59 ½ or

    • Earnings up to $10,000 are being

      used for first time home purchase


    • Higher education for self, family & grandchildren

Slide28 l.jpg

Roth IRA Contributions

  • Make contribution to Roth IRA until April 15 for previous year.

  • The 5 year waiting period for tax free withdrawal of earnings begins with the year of the first contribution.

  • Ordinary IRA funds converted to Roth IRA must remain at least 5 years or a 10% penalty will apply.

Slide29 l.jpg

Investing in IRAs

Don’t have $4,000 all at once? Consider making automatic monthly payments from checking account or payroll deduction.

Slide30 l.jpg

Investing In An IRA

  • Contributions held in a custodial account

  • Accounts can be at any financial institution, bank, credit union, mutual fund company, brokerage account.

  • Invest for high return.

Slide31 l.jpg

Timing IRA Contributions

  • Make contributions as early in year as possible

  • Can make previous year’s contribution until April 15th, but tell account custodian it is for the previous year

Slide32 l.jpg

IRAs - An Example of Return on Investment

Contributions made only between ages 22-30 (9 years)

  • $2,000 contributed each year

  • Total investment of $18,000

  • At an interest rate of 9% by age 65 will have $579,471

Slide33 l.jpg

IRAs - An Example of Return on Investment

Contributions made only between ages 31-65 (35 years)

  • $2,000 contributed each year

  • Total investment of $70,000

  • At an interest rate of 9%, by age 65 will have $470,249

Slide34 l.jpg

E. M. I. L. Y.

Early money is like yeast, it helps your dough rise!

Slide35 l.jpg

IRA Direct Transfers –

transfer of IRA funds from one IRA custodian to another

Slide36 l.jpg

How to save $3,000 per year

Slide37 l.jpg

Finding Money to Save

One cup of coffee at $1.00/cup x 5 days x 50 weeks = $250/yr.

One soft drink at $1.00/each x 5 days x 50 weeks = $250/yr.

2 video rentals/week @ $3.00 each x 50 weeks = $300/yr.

One fast food meal/week @ $5.00 = $250/yr.

TOTAL SAVED = $1,050/year

Other ideas?

Slide38 l.jpg

Retirement Planning Has Changed!

  • More self-directed

  • No “guarantees”

  • Living longer

  • Portable plans

  • Inflation & taxation

Slide39 l.jpg

Think of retirement as a vacation -- take half as much baggage and twice as much money!

Slide40 l.jpg

Is Retirement Within Your Reach?

  • Login