Exploring Your Options for a Quality Retirement

1. Exploring Your Options for a Quality Retirement WHERE COMMUNITY HAPPENS 1-800-689-4851 www.sofausa.org membership@sofausa.org 2017 | The Society for Financial Awareness

2. WE WOULD LIKE TO WELCOME YOU TO TODAY’S WORKSHOP Thank You for joining us! Our hope today is to provide you with some valuable information, have some fun, and enjoy this next hour. 2017 | The Society for Financial Awareness

3. SOFA the organization, does not offer to sell financial products nor promote any one particular company. Though the presenter may mention specific financial instruments and their functionality, SOFA’s role is only to educate and inspire. SOFA only represents the educational workshop – all other endorsements are non-SOFA related. 2017 | The Society for Financial Awareness

4. Nationwide Non-Profit Educational Speakers Bureau 501(c)(3), Public Benefit Corporation Been around since 1993 Mission: To end financial illiteracy across America, one community at a time. 2017 | The Society for Financial Awareness

5. EVALUATION FORM Please review this form. I will be picking these up at the end of the workshop. Do note – the backside is to be used for your specific questions and issues. 2017 | The Society for Financial Awareness

6. The Key to a Quality Retirement Is You! When you retire you’ll either have the money or reasons why you don’t. It’s all about planning. Your behaviorand attitudetoday will impact your cash results for tomorrow. Society for Financial Awareness 2017 | The Society for Financial Awareness

7. What’s Your Financial Personality? • Over Analytical - Analysis leading to Paralysis. For whatever reason, too busy creating spread sheets and doing research as the years go ticking by. Can’t seem to “pull the trigger”. • Ready, Fire, Aim Investor – has money, wants shortcuts. Take a hot tip and buy. Very little due diligence; little if any research. Impulsive. • Concise, Precise, Focused, Act Together – has a plan, follows the proper steps. Has a budget. Has goals - focused, deliberate, “walks the talk”. • Spender – Every month there’s nothing left. Living paycheck to paycheck. No savings, little put away for retirement, no emergency fund. • Too Busy – who has time to plan for the future? Living day to day for the moment. Hectic, out of control. Society for Financial Awareness 2017 | The Society for Financial Awareness

8. Wealth Building is Eroded by… • Debt • Healthcare Expenses • Inflation Taxes 2017 | The Society for Financial Awareness

9. Dealing With Debt The privilege of borrowing other peoples money greatly reduces your ability to save! 2017 | The Society for Financial Awareness

10. The High Cost Of Debt Even at low interest rates, you could be paying more than double of what you borrowed! The blue cylinders represent a principal balance while the orange cylinders represent interest paid. $47,087 $17,839 2017 | The Society for Financial Awareness 2017 | The Society for Financial Awareness

11. Inflation is ‘Values’ Natural Predator This example was secured from http://www.usinflationcalculator.com/, according to their online calculator something that cost $100 in 1970 would cost $617 in 2016. Historically, Inflation increases at a rate of 3% each year. 2017 | The Society for Financial Awareness 2017 | The Society for Financial Awareness

12. What Is Your Future Tax Liability? You have options to how you invest for retirement. In some instances you can invest Pre-Tax dollars, and in others, After-Tax dollars. 2017 | The Society for Financial Awareness 2017 | The Society for Financial Awareness

13. Question for you… Do you want to pay Taxes on the Seed or the Crop? It’s vital to understand Tax consequences at distribution time! 2017 | The Society for Financial Awareness 2017 | The Society for Financial Awareness

14. Pre-Tax vs. After-Tax Pre-Tax Investments After-Tax Investments • Tax-Deferred Investments like 401(k) and Traditional IRA, 403b, 457, Defined Benefit. - Allows you to postpone taxes until you begin withdrawing money • A Roth IRA is an After-Tax investment that can create a source of Tax-Free income in the future. - Contributions are not Tax-Deductible in your saving years, but Tax-Free withdrawals can help reduce your total Taxable Income when you reach retirement. • Any investment created with After-Tax dollars. 2017 | The Society for Financial Awareness 2017 | The Society for Financial Awareness

15. Your Tax Situation WILL Change The key is to understand that by the time you retire your current deductions may be unavailable. • 401(k) • Mortgage Interest • Children This can potentially result in your Post Retirement Tax bracket being similar to your Pre-Retirement Tax bracket. You can mitigate your tax obligations, if you plan accordingly. 2017 | The Society for Financial Awareness 2017 | The Society for Financial Awareness

16. Planning for Health Care is important The truth is… we get old. Our health concerns widen as we enter retirement. Health care is an important consideration in your golden years. 2017 | The Society for Financial Awareness 2017 | The Society for Financial Awareness

17. Considerations Things to consider when planning retirement 2017 | The Society for Financial Awareness 2017 | The Society for Financial Awareness

18. Social Security vs. Self Security • Question: By the time we do retire, what percentage of your total monthly income will come from Social Security? • Question: At Retirement, what will be the “purchasing power” of tomorrow’s dollars vs. today’s? 2017 | The Society for Financial Awareness 2017 | The Society for Financial Awareness

19. Inspect What You Expect Social Security is a Federal Insurance program that offers Supplemental Funds to Americans during their retirement. 2017 | The Society for Financial Awareness 2017 | The Society for Financial Awareness

20. Create Income Streams • Social Security • Possible Defined Benefit Pension • 401K or Rollover • Traditional IRA • Roth • Non Qualified Stocks Bonds Real Estate Mutual funds REIT • Liquidation of Assets 2017 | The Society for Financial Awareness 2017 | The Society for Financial Awareness

21. 401(k) Qualified Plan Contribution – Do it! Your deposits build up for retirement. Your contributions reduce your taxable income. You have the ability to re-allocate your portfolio without any taxable consequences. All growth of the entire portfolio is Tax Deferred (your deposits, employer match if applicable, and potential investment growth) . Withdrawals will be taxed as Ordinary Income. If Withdrawals are made prior to age 59 and ½ a 10% penalty will apply. 2017 | The Society for Financial Awareness 2017 | The Society for Financial Awareness

22. Pre-Tax vs. After-Tax Considerations Diversify your retirement contributions between Pre-Tax and After-Tax retirement plans. 401(k) plan - you invest Pre-Tax money, but pay Ordinary Income Taxes when you withdraw. Roth IRA - you invest After-Tax money into your Roth IRA, and are not taxed on the money when you withdraw. Use this money first, allowing the Pre – Tax to keep growing until 70 ½ or when needed. At distribution time, this strategy could be critical to your lifestyle during those golden years if withdrawals are considered Qualifiedor Pre-Tax. 2017 | The Society for Financial Awareness 2017 | The Society for Financial Awareness

23. Food For Thought… You, not your Employer; you, not the Government, is responsible for your retirement. When should you do your retirement planning? Stay diversified- use Asset Allocation. Create “balance” utilize Pre-Tax and After-Tax strategies. Inspect what you expect… monitor your results constantly. Planning is the key. Being busy and not paying attention is a “cop out”… It’s always about you – stay on it! 2017 | The Society for Financial Awareness

24. EVALUATION FORM Please take a moment to complete. I will be collecting these in a moment. If you need a pen, please let me know. 2017 | The Society for Financial Awareness

25. Thank you for your valuable time today WHERE COMMUNITY HAPPENS 1-800-689-4851 www.sofausa.org membership@sofausa.org 2017 | The Society for Financial Awareness