Planning for Retirement Needs

1. Planning for Retirement Needs Introduction to Individual Retirement Planning Chapter 20

2. Chapter 20 • Translating pension knowledge into solutions for individual clients • The retirement planning process • Critical issues that affect retirement

3. Understanding the benefit or contribution formula Understanding the plan’s key provisions (hardship withdrawals, loans etc.) Identifying documents (SPDs, personal benefit statements) Appreciating the importance of before tax contributions Ramifications of starting social security early Transferable Skills

4. Choosing a Keogh plan for clients with Schedule C income Recognizing the importance of ESOP diversification Determining IRA options Explaining the rules for social security and nonqualified plans Cataloging fiduciary protection, QDRO assurance, PBGC refuge, and bankruptcy protection Transferable Skills

5. Identify the contribution limit, salary deferral limit, and compensation cap Understanding death and disability benefits Spotting desirable investment vehicles Distinguishing the retirement security risks with nonqualified plans Transferable Skills

6. Requires wide-ranging expertise Involves many different tasks Integrate retirement planning with Tax Estate Investment planning Planning is more art than science No average retiree Never too early to late, but always different because of a variety of goals, objectives, starting times and financial resources The Role of the Retirement Planner

7. Incorporate retirement planning with comprehensive financial planning Deal with other financial advisors with different expertise Deal with young clients Monitor and update a client’s plan Conduct seminars for employee groups Network through organizations SFSP FPA NCOA ASA AARP Aspects of a Retirement Planning Practice

8. Establish client-planner relationships Determine goals Analyze and evaluate financial status Develop and present the plan Implement the plan Monitor the plan Steps in the Retirement Planning Process

9. Private Pension availability better in medium and large companies Women and retirement—unique problems Less likely to have a pension at work Lower earnings higher turnover Greater longevity Caregivers More likely to be widowed Conservative investments Critical Issues that Affect Retirement Planning

10. Seminar presentations increase 401(k) participation rates and contribution rates Over 50 percent cash out when they change jobs The Need for Education and Planners

11. Tax changes Work Caregiving Changing Face of Retirement

12. 1946 – 1964 Retirement is maturing with baby boomers Baby Boomers

13. Spendthrift lifestyles Unexpected expenses Inadequate insurance coverage Divorce (see QDRO) Not covered under a company pension Fail to roll over company pension Lack of financial literacy Diverting funds to other financial goals Roadblocks to Retirement Saving

14. Maintain standard of living Maintain self-sufficiency Minimize taxes Retire early Pass on wealth Adapt to lifestyle change Improve lifestyle Care for dependents Other Retirement Objectives

15. Retirement Ladder