Umb employee benefits retirement planning
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Customize. UMB Employee Benefits Retirement Planning. How To Achieve Your Retirement Dreams Basics of Planning and Investing Features of your XYZ Profit Sharing Plan. Agenda. Introduction Retirement Goals Retirement Obstacles Key Strategies Investments Plan Features Questions?.

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UMB Employee Benefits Retirement Planning

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Umb employee benefits retirement planning

Customize

UMB Employee Benefits Retirement Planning

How To Achieve Your Retirement Dreams

Basics of Planning and Investing

Features of your XYZ Profit Sharing Plan


Agenda

Agenda

  • Introduction

  • Retirement Goals

  • Retirement Obstacles

  • Key Strategies

  • Investments

  • Plan Features

  • Questions?


What is your retirement dream

What Is Your Retirement Dream?


Retirement plan

Retirement Plan

1. Win the Lottery

2. Retire!


Does saving for retirement seem like mission impossible

Does saving for retirement seem like Mission Impossible?


Sources of retirement income

Customize

Sources of retirement income

  • Social Security

  • Personal savings

  • IRA or other retirement savings

  • Your XYZ Profit Sharing Plan


Why you should save for retirement

Why you should save for retirement

  • You could spend 25% of your lifetime in retirement--20 or 30 years or more!

  • When you retire, you will probably need 70-90% of your existing salary


The potential impact of inflation

Fast Food Today - $4

Fast Food in 2031 - $19

New Car Today - $20,000

New Car in 2031 - $94,200

Dinner for 2 Today - $32

Dinner for 2 in 2031 - $151

The potential impact of inflation

Examples assume an inflation rate of 5.3%


Little savings add up

$52,802

$35,203

Large pizza - $15 per week

Morning coffee - $10 per week

Little savings add up

  • Your savings after 20 years*

$17,599

Rent a video instead of going to the movies- $5 per week

*Assumes you save the cost of each item, plus 27% assumed tax rate every week for 20 years, and earn an annual 8% on your investments


Time is your greatest ally

Pat, the Procrastinator

Lives the high life

Starts saving at age 45

Contributes $4,200 each year for 20 years to the Company Plan ($350 per month)

Terry, the Planner

Lives more modestly at first

Starts saving at age 25

Contributes $2,100 for 40 years to the Company Plan ($175 per month)

Time Is Your Greatest Ally


Time is your greatest ally1

Pat saves twice as much each year and at age 65 ends up with $300,000 for retirement

Terry sets aside the same total sum of money but accumulates $1,200,000 for retirement.

Assuming an average rate of return of 8%.

Time Is Your Greatest Ally


Who would you rather be

Pat, the Procrastinator,at retirement

Terry. The Planner, at retirement

Who would you rather be?


Make your savings goals reachable

Make Your Savings Goals Reachable

  • Start as early as you can

  • Save as much as you can

  • Select investments that have growth potential


Advantages to saving in a 401 k

Advantages to Saving in a 401(k)

  • Contributions are made before taxes

  • Earnings are tax deferred

  • 401(k) contributions are payroll deductions

  • Contribution rate may be changed at the beginning of each quarter Plan specific

  • Your investment portfolio is selected by you


Stocks outperform other securities over time

Inflation

90-day US Treasury Bills

Bonds

Stocks

Stocks Outperform other Securities over Time

Growth from 1970-2000

$4,383

$6,832

$12,539

$44,912


The importance of diversification

The Importance of Diversification

91.5% of your return is based on your investment diversification

Financial Analysts Journal, B.G.P. Brinson,

B.D. Singer & G.L. Beebower, May - June 91


The plan

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The Plan

  • 401(k) - eligibility

    • Enter the first day of the month following the completion of one year of service

    • Defer up to 15% of compensation

    • Change deferral rate quarterly

    • Minimum age - 21


Profit sharing plan

Customize

Profit Sharing Plan

  • Employer discretionary

    Company Match

  • Up to 4% of compensation

  • Last day - 1000 hour requirement


When can i get my money

When Can I Get My Money?

  • Termination of service

  • Retirement

  • Disability

  • Elective deferrals -age 59½

  • Hardship withdrawals

  • Loans


Questions

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Questions

  • Consult with your UMB team of experts

  • Plan questions - call your HR contactat

  • Tax questions - see financial planner or CPA


Plan your tomorrow

Plan YOUR tomorrow


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