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Retirement Planning: It’s Never Too Soon – or Too Late – to Start AFN5600.

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Presentation on theme: "Retirement Planning: It’s Never Too Soon – or Too Late – to Start AFN5600."— Presentation transcript:

1 Retirement Planning: It’s Never Too Soon – or Too Late – to Start AFN5600

2 Today We Will Help You : Examine “retirement.” Determine your goal. Learn about investment tools. Develop an investment strategy to better pursue your goal.

3 Retirement: Then and Now

4 Then... Job longevity meant retirement security. On average, people had shorter life expectancies. That may have meant lower health care costs and lower retirement income needs.

5 Now... Changing jobs is more common. Medicare and Social Security have an uncertain future. Health care and long-term care cost more. People live longer.

6 Your Hopes and Dreams for Retirement Retirement is closer than you think. What’s on your wish list? Perhaps travel, a vacation home, or education? Your desired lifestyle will determine your income need.

7 Consider the Inflation Factor Source: Bureau of Labor Statistics. Inflation is measured by the annual change in the Consumer Price Index.

8 How Much Is Enough? Experts say you may need 60% to 80% of your final working year’s salary each year during retirement.

9 Average Annual Social Security Benefits Retired Workers $24,576 $15,132 Retired Couples Source: Social Security Administration, Fact Sheet, Social Security, 2013 Changes, October 2012.

10 How Do You Pursue Your Goal? Use tax-advantaged accounts. Invest, invest, invest.

11 Use Tax-Advantaged Accounts 401(k) Plans IRAs

12 Invest! Invest! Invest! A strategy is key. Complete worksheets.

13 There Are Three Basic Asset Classes Risk/Return Potential Bonds High Low Stocks Money Market Instruments Stocks average annual return: 10.81%* Bonds average annual return: 8.10%* Money Market Instruments average annual return: 4.48%* *Sources: Standard & Poor’s; the Federal Reserve. Stocks are represented by Standard & Poor’s Composite Index of 500 stocks, an unmanaged index generally considered representative of the large-cap U.S. stock market. Results include reinvestment of dividends and other investment income. Bonds are represented by Barclays U.S. Aggregate Bond Index. Money market instruments are represented by Barclays 3-Month Treasury Bill Index. Results are for the 30-year period ended December 31, 2012. The performance of any index is not indicative of the performance of a particular investment and does not take into account the effects of inflation or the fees and expenses associated with investing. Past performance cannot guarantee future results. Individuals cannot invest directly in any index.

14 Understand Your Risk Tolerance Realize your time horizon. The longer the time frame, the more aggressive you may want to be.

15 Conservative Mix Stocks Money Market Instruments Bonds Conservative Average Annual Rate of Return — 8.45%* 20% money market instruments, 50% bonds, 30% stocks 20% 30% 50% Past performance cannot guarantee future results. *All figures represent performance for the 30-year period ended December 31, 2012. Stocks are represented by the annual total returns of the S&P 500, bonds are represented by the Barclays U.S. Aggregate Bond Index, and money market instruments are represented by the Barclays 3-Month Treasury Bill Index. This illustration is not intended to represent the past or future performance of any specific investment. Asset allocation does not ensure a profit or protect against a loss.

16 Moderate Mix Money Market Instruments Stocks Bonds Moderate Average Annual Rate of Return — 9.66%* 10% money market instruments, 30% bonds, 60% stocks 60% 30% 10% Past performance cannot guarantee future results. *All figures represent performance for the 30-year period ended December 31, 2012. Stocks are represented by the annual total returns of the S&P 500, bonds are represented by the Barclays U.S. Aggregate Bond Index, and money market instruments are represented by the Barclays 3-Month Treasury Bill Index. This illustration is not intended to represent the past or future performance of any specific investment. Asset allocation does not ensure a profit or protect against a loss.

17 Aggressive Mix Money Market Instruments Stocks Bonds Aggressive Average Annual Rate of Return — 10.10%* 10% money market instruments, 10% bonds, 80% stocks 80% 10% Past performance cannot guarantee future results. *All figures represent performance for the 30-year period ended December 31, 2012. Stocks are represented by the annual total returns of the S&P 500, bonds are represented by Barclays U.S. Aggregate Bond Index, and money market instruments are represented by Barclays 3-Month Treasury Bill Index. This illustration is not intended to represent the past or future performance of any specific investment. Asset allocation does not ensure a profit or protect against a loss.

18 Your Current Savings How much have you already saved? How much might it be worth?

19 Your Monthly Savings Goal Is it too high? Consider adjusting your investment mix.

20 Retirement Planning

21 Questions and Answers Investment options are offered through a group variable annuity contract (Forms 902-GAQC-09 or 902-GAQC-09(CT) or 902- GAQC-09(OR)) underwritten by United of Omaha Life Insurance Company for contracts issued in all states except New York. United of Omaha Life Insurance Company, Omaha, NE 68175 is licensed nationwide except in New York. Companion Life Insurance Company, Hauppauge, NY 11788 is licensed in New York and underwrites the group variable annuity (Form 900- GAQC-07(NY)). Each company accepts full responsibility for each of their respective contractual obligations under the contract but does not guarantee any contributions or investment returns except as to the Guaranteed Account and the Lifetime Guaranteed Income Account as provided under the contract. Neither United of Omaha Life Insurance Company, Companion Life Insurance Company, nor their representatives or affiliates offers investment advice in connection with the contract. Specific features of the Lifetime Guaranteed Income Account (Rider Forms 651-GAQR-10 or 651-GAQR-10(CT) or 651-GAQR- 10(OR)) vary by state. Restrictions apply. The Lifetime Guaranteed Income Account is not available in Nevada or New York. Group variable annuities are long-term investment vehicles designed to accumulate money on a tax-deferred basis for retirement purposes. Distributions may be subject to ordinary income tax and, if taken prior to age 59½, a 10 percent federal tax penalty may apply. Investing in a group variable annuity involves risk, including possible loss of principal. Prior to selecting investment options for your retirement account, you should consider the investment objectives, risks, fees and expenses of each option carefully. For this and other important information, you should review your enrollment materials or the participant website. Read this information carefully.


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