Road to Retirement

Your Current Retirement Situation

Old definition: “Withdrawal from one’s position or occupation or from active working life.” New definition: “Achieving a state of financial wellness and security so you can live the lifestyle you desire.” Questions About Retirement S1

How do you feel about your current financial situation? How do you feel when you make small financial decisions? How do you feel when you make large financial decisions? How do you feel when you think about retirement? How do you feel when you talk to your loved ones about money? Questions About Retirement S1

Questions About Retirement S1 Only invest with risk capital—that is, money you can afford to lose. Gain a high-level knowledge base about any investments you’re considering. Build a team of trusted advisors. Before making any decision, take time to evaluate it logically. Reduce the influence of emotions by partaking in an activity that reduces your stress levels. Tips to Lowering Emotional Stress When Making Financial Decisions

Retirement & Income S3 Potential Income Sources at Retirement: Social Security Pension Assets Annuities Employment Business Enterprise

Retirement Plans & Taxes S4 Tax Impact Tax-Deferred. Taxes are paid later with tax-deferred investments. You are able to invest the money that the government would have taxed. Tax deferred investments can include 401(k), 403 (b), and IRAs. Tax-Deductible. This feature allows a person to deduct the amount invested from their gross income, lowering overall tax liability. Tax-deductible investments can include 401k, 403b, Simplified Employee Pension Plan (SEP), Keogh and IRAs. Tax-Free. Provide returns that are free from federal income tax and in some cases, state tax. Roth IRA, municipal bonds and 529 plans – assuming monies are used for schooling – are all examples of tax-free investments.

Retirement Plans & Taxes S4 Employee-sponsored Retirement Plans These types of retirement plans can help you reach your retirement goals. These plans are eligible to receive tax benefits from the IRS. Generally three types of plan: o Defined contribution plan based on contribution and investment performance o Defined contribution plan based on employee’s salary and number of years in the plan o A combination of the two plans above