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HR PARTNERS MEETING TDA/403B - CASH MATCH GREG SWITZER TIAA-CREF SENIOR INDIVIDUAL CONSULTANT 2/16/2010 & 2/18/2010 WHY DO I NEED TO SAVE? I AM NOT RETIRING FOR 30 YEARS? BILL JONES - AGE 35 SALARY - $35,000 ANNUAL RAISE - 2% WORKING YEARS - 30

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hr partners meeting tda 403b cash match
HR PARTNERS MEETINGTDA/403B - CASH MATCH
  • GREG SWITZER
  • TIAA-CREF
  • SENIOR INDIVIDUAL CONSULTANT
  • 2/16/2010 & 2/18/2010
why do i need to save i am not retiring for 30 years
WHY DO I NEED TO SAVE?I AM NOT RETIRING FOR 30 YEARS?
  • BILL JONES - AGE 35
  • SALARY - $35,000
  • ANNUAL RAISE - 2%
  • WORKING YEARS - 30
  • FUTURE SALARY - $64,000
sources of retirement income
SOURCES OF RETIREMENT INCOME:
  • SOCIAL SECURITY
  • PENSIONS (VRS)
  • PERSONAL SAVINGS
retirement scenerio
RETIREMENT SCENERIO
  • $64,000 - BILL’S SALARY AT 65
  • x 80% - REPLACEMENT RATIO
  • $51,000 - TARGET INCOME
  • - $32,000 - BILL’S VRS PENSION
  • - $10,000 - BILL’S SOCIAL SECURITY
  • < $9,000> - SHORT
  • HOW CAN BILL COVER THIS SHORTFALL??
cash match and tda 403b
CASH MATCH AND TDA/403B!!
  • BILL NEEDS TO GROW ANOTHER $200,000 IN HIS 403B/CASH MATCH ACCOUNT TO COVER THIS SHORT FALL:
  • $200,000
  • 5%
  • $ 10,000
  • HOW DOES BILL GET TO $200,000???
oh the power of compounding
OH, THE POWER OF COMPOUNDING
  • CASH MATCH - $40/MONTH
  • TDA/403B - $80/MONTH
  • GROWTH RATE - 6%
  • YEARS - 30
  • FUTURE VALUE - $ 117,000
  • CASH MATCH - $40/MONTH
  • TDA/403B - $160/MONTH
  • GROWTH RATE - 6%
  • YEARS - 30
  • FUTURE VALUE - $ 195,000
immediate tax benefit
IMMEDIATE TAX BENEFIT:
  • $35,000 - BILL’S SALARY
  • -$ 1,920 - BILL’S TDA/403B CONTRIBUTIONS
  • $33,080 - TAXABLE INCOME
2010 retirement tax saving limits
Tax Deferred Annuity (TDA)

Annual Limit - $16,500

Age 50 Catch-up - $5,500

Deferred Compensation Plan (DCP)

Annual Limit - $16,500

Age 50 Catch-up - $5,500

2010 Retirement Tax Saving Limits