1. Army Community Service (ACS) U.S. Army Garrison Rock Island Arsenal
What’s Your Retirement Number #?: MS Excel Retirement Planning Spreadsheet
Army Community Service (ACS)
U.S. Army Garrison Rock Island Arsenal
Edition of April 29, 2013 version 4

2. “Uncle Jon” Cook (309) 782 - 0815 1 – 877 – 882 – 0523
Survivor Outreach Services – Financial Counselor
Financial Readiness Program
Personal Financial Management (PFM) Specialist
Accredited Financial Counselor (AFC)
Army Emergency Relief (AER)
Notary Public
Employment Readiness Program
Military Spouse Employment Program (MSEP)
(Former) Professional in Human Resources (PHR) & (Former) Certified Workforce Development Professional (CWDP)
My name is Jon Cook and I am the Financial Counselor at Army Community Service (ACS), your Military Family Service Center. My contact information is on the slide. Please feel free to make an appointment to discuss your Personal Financial Management (PFM) topics.
An Accredited Financial Counselor (AFC) is not a financial planner – I do not sell anything or have a bias towards any particular financial products. I am a neutral money coach. Now I do advocate saving and investing, and I do sponsor the Arsenal’s Military Saves Campaign, but I am a money coach – you make the decisions and I am a free service of the Arsenal.
(309) – 877 – 882 – 0523
mail. mil
www. riamwr. com / acs /

3. Disclaimer
This presentation is for the information and education of the participants.
The information presented is neither an endorsement nor a guarantee.
Past performance is no guarantee of future performance.
Before making any financial commitment, consult with your Family Members and appropriate professional advisers.
Saving and investing is a personal matter. No one class or presentation can cover all of the possibilities. This class is not an endorsement or a guarantee from any institution. We encourage to save as part of a team so let family members know what you are planning. Think about what you are planning to do and seek advice from the appropriate professionals.

4. Sequence of this Presentation
Purposes
The ACS Spreadsheet “philosophy” and introduction
Resources for your use
PowerSave Software from Utah State Extension Service
Other software and web sites
Come visit with us at ACS

5. Having a Scooby Doo moment?
Please ask questions as we proceed!

6. Sequence of this Presentation
Purposes
The ACS Spreadsheet “philosophy” and introduction
Resources for your use
PowerSave Software from Utah State Extension Service
Other software and web sites
Come visit at ACS

7. Purposes of this Presentation
To provide a method to develop the amounts of money needed to save for retirement planning.
Illustrate that a portion of retirement funding will be accomplished through pensions and annuities (allowances) – and that a portion may need to be funded from savings and investments (piles).
Enable persons and families as a team to discuss retirement planning figures in a logical and rational manner.

8. An asset producing and income stream
Annuity
An insurance instrument
Purchased over time or at one time (lump sum)
Payout – an income stream = an allowance
starting at a specified time
ending at a specified time; or upon death of the
beneficiary [single annuity] – or
beneficiaries [joint or group annuity]
for a
specific amount (fixed) – or
variable amount (variable)

9. Allowances
Annuity
Annuities from an insurance company (e.g. Met Life) or a private sector employer by contract
Annuity – like (government sponsored) income streams with cost of living increases (COLA’s), based on a formula:
CSRS (Civil Service Retirement System)
FERS (Federal Employee Retirement System)
Military Retirement
Social Security
Steady allowance for life (of the beneficiary)
They have the responsibility
They have control
When you die – it dies

10. Income Streams from your “Money Piles”
Live off of the Interest Only
do not use the principal…
Slowly draw down both the principal and the interest = Annuitizing

11. You could outlive your $ - or your $ could outlive you …
An asset producing and income stream
Annuitizing
Liquefying an asset (e.g. a mutual fund or savings account)
Over a specified time
Producing an income stream from a “$ pile”
“… like creating your own annuity”
It can be steady or periodic or ____?
You have the responsibility
You have control
You could outlive your $ - or your $ could outlive you …

12. What is in your Retirement Plan?
Annuity
Allowance
Their responsibility
You have less control
Can’t outlive the money
Can’t increase or decrease the periodic amounts
? Cost of Living Increases due to inflation ?
Annuitizing
Money Piles
Vary the pay-out’s
Your responsibility
You have more control
Can outlive the money & the money can outlive you
Can increase or decrease the periodic amounts
You account for cost of living increases due to inflation

13. What’s Your Retirement Number #?
Time Line of Persons Involved
Requirement
over time “the number” $#
Capabilities to reach “the number”
Allowances annuities, retirement plans:
Social Security; FERS / CSRS; Military
Piles Money you grow, and then pay out: TSP, 401k, IRA

14. Sequence of this Presentation
Purposes
The ACS Spreadsheet “philosophy” and introduction
Resources for your use
PowerSave Software from Utah State Extension Service
Other software and web sites
Come visit at ACS

15. Plan Your Use of Available Time
Building Your Time Line
Paper or MS Excel (.xls) work sheet Page 1
Lay out your
Person(s)
Dates
Ages
Retirement options & time frames
Financial obligations and options
Plan Your Use of Available Time

16. Unisex Life Expectancy at Retirement Table
Social Security Agency (www. ssa. gov)
Unisex Life Expectancy at Retirement Table
Age at Retirement
Closest to Year of Retirement
17.12 Years from 2010 is the half-way point = 2027 assumes that ½ of this retirement population will die before this year (age 83);
½ of this retirement population will die after this year, some living beyond 2044 (age 100)

17. Retirement Requirements MS Excel (.xls) Work Sheet Page 2
Annual Budget over the phases of retirement
Go – Go
Go-Slow
No-Go
Estate Planning

18. Retirement Capabilities MS Excel (.xls) Work Sheet Page 3
Expenses*
Spendable Income
Annual Income over the phases of retirement
Go – Go
Go-Slow
No-Go
Estate Planning
Ret Center
Deficit!
Insurance?
Other?

19. “What will the piles grow to? What will the piles pay out?”
Page 4: Capabilities by Source
“What will the piles grow to? What will the piles pay out?”

20. Retirement Capabilities MS Excel (.xls) Work Sheet
Spendable (Column 14)
Back to Page 3
Taxable (Columns 4 – 12)
Non-Taxable (Column 13)

21. Retirement Capabilities MS Excel (.xls) Work Sheet
1. Write your timeline starting with year of retirement and age(s)
Inflation (Cost of Living Increase! [You Hope]) Factors
2. Ages until ???

22. Retirement Capabilities MS Excel (.xls) Work Sheet
Monthly Income (forecasted);
Inflation factor increase for appropriate types

23. Retirement Capabilities MS Excel (.xls) Work Sheet
4 & 5. Taxable Pensions and Annuities
CSRS (Taxable part)
FERS
Military
Insurance Co.
Annuitized Funds
TSP
401k / 503b
IRA

24. Retirement Capabilities MS Excel (.xls) Work Sheet
6 & 7. Social Security
(Taxable part)

25. Retirement Capabilities MS Excel (.xls) Work Sheet
Taxable Pensions and Annuities
CSRS (Taxable part)
FERS
Military
Insurance Co.
Annuitized Funds
TSP
401k / 503b
IRA
Social Security
(Taxable part)
9. Other
Savings
Royalties
Rents

26. Retirement Capabilities MS Excel (.xls) Work Sheet
10. Taxable Income
12. After Tax Income
11. Taxable Rate (effective rate for Federal and State)

27. Retirement Capabilities MS Excel (.xls) Work Sheet
13. Non-Taxable Income VA
Disability Payments
Social Security (non-taxed part)
CSRS (non-taxed part)
Roth IRA’s
Life Insurance Pay-outs

28. MS Excel (.xls) Work Sheet Page 3
Retirement Requirements & Capabilities
MS Excel (.xls) Work Sheet Page 3
Income
From Parts 1 & 2
Expenses*
(carried over from previous .xls work sheet)
Your results over time

29. Retirement Capabilities MS Excel (.xls) Work Sheet
Make Adjustments to Income over time due to transitions
Basic Retirement Financial Planning- Part 2 - ACS RIA

30. Retirement Capabilities MS Excel (.xls) Work Sheet
Deficit!
Increase Ret Savings?
Insurance?
IRA?
Savings?
Other?
Basic Retirement Financial Planning- Part 2 - ACS RIA

31. How do you know it is accurate? It isn’t – no person knows the future!
Retirement Capabilities
MS Excel (.xls) Work Sheet
It isn’t – no person knows the future!
OK – Now What?
Basic Retirement Financial Planning- Part 2 - ACS RIA

32. Build at least 3 “scenarios” or “tests”
Retirement Capabilities Work Sheet
Build at least 3 “scenarios” or “tests”
Best Case
Low Inflation
Low Expenses
High Income & Returns
Goldie-Locks and the Three Bears
Worst Case
High Inflation
High Costs
Low Income & Returns
Middle Case
In-between inflation and expenses
Fair Income & Returns

33. Sequence of this Presentation
Purposes
The ACS Spreadsheet “philosophy” and introduction
Resources for your use
PowerSave Software from Utah State Extension Service
Other software and web sites
Come visit with us at ACS

34. Free from the Utah State University Extension Service
www. powerpay. org
Free from the Utah State University Extension Service
New? Sign Up Now

35. www. powerpay. org PowerSave Function “Money Future”
Accumulating Wealth
Withdrawing Wealth
Pay-out Phase - by time period
- by set amount
Accumulation Phase 1st calculate what your money could grow to:

36. Potentially money growth
www. powerpay. org
PowerSave Function “Money Future”
Accumulating Wealth
Potentially money growth
Impact of inflation

37. www. powerpay. org PowerSave Function “Money Future”
Withdraw for a Specified Time
Withdrawing Wealth
Your “pile’s” monthly payout over 25 years = $_
Impact of inflation

38. www. powerpay. org PowerSave Function “Money Future”
Withdraw a Specified Amount
Withdrawing Wealth
If your “pile’s” monthly payout is $350, how long will the pile last?
Impact of inflation

39. Free from the Utah State Extension Service PowerPay Debt Pay-offs
Free from the Utah State Extension Service
PowerSave Future Value of Money!
PowerPay Debt Pay-offs
Spending Plans Create a Budget
Once you create your account, you can create other profiles (e.g. family members); or just have them create their own accounts.
Create new profiles
Go to your profile

40. What could possibly go wrong?
Yes! PowerSave!! Got it!!!
What could possibly go wrong?

41. Sequence of this Presentation
Purposes
The ACS Spreadsheet “philosophy” and introduction
Resources for your use
PowerSave Software from Utah State Extension Service
Other software and web sites
Come visit with us at ACS

42. Interest Vision Software
for use at Army Community Service
You fill in all but one of the missing data elements: it will figure out the one missing element for you!

43. www. mymoney. gov From the Dept. of the Treasury and the FTC
Basic Retirement Financial Planning- Part 3 - ACS RIA

44. Retirement www. ssa. gov Social Security Administration
Basic Retirement Financial Planning- Part 3 - ACS RIA

45. www. asec. org / ballpark / Fed Employee Ballpark Estimate
American Savings Education Council (ASEC)
www. asec. org / ballpark /
Calculators
Ballpark Estimate
Fed Employee Ballpark Estimate

46. This is a commercial web site
T. Rowe Price Retirement Income Manager – a web simulation
www. troweprice. com Retirement > Retirement Planning > Retirement Income Calculator
This is a commercial web site
4% Rule
Plan to withdraw no more than 4% of your assets the first year; in following years draw 4% + small COLA factor

47. #1 Net Worth Statement Liquidity! Net Worth Statement Assets (+)
Fixed (stuff)
Liquid or Monetary
Liabilities (-)
+ Assets
Liabilities
= Your Net Worth
Only way to get money out of a Fixed Asset is to sell or rent it
Liquidity!
Where ever you start is OK – start! And make it grow from there:
“build wealth – not debt”!
It’s not the money you make; it’s the money you get to keep! – Ric Edelman

48. Jon Cook Army Community Service Come visit!
Accredited Financial Counselor (AFC)
Army Community Service
Bldg 102, 1st Floor, SE corner
(309) / -0829