1. Retirement Planning:
Maintaining Momentum
For Investors 36 - 49 yrs old

2. The focus in this seminar is on
Investing for Retirement
Personal Savings are split into:
– Taxable Savings Our
• Bank accounts, CD’s focus
• Investments today
– Non-taxable, retirement savings
• 401(k)
– Traditional & Roth
• IRA

3. Create a Retirement Vision
• No one knows what the
future holds
• Basics
– Spend less than you make
– Be a great saver
– Eliminate debt

4. Perspective on Retirement
• We are responsible for
our retirement success,
no one else
• Harsh realities require
focus, attention and
more ownership of our
retirement account(s)

5. Create a Retirement Vision

6. Get Going
• Compound growth
takes time to build Example of Compound Growth
• Largest effects felt 1,025,000
after years of saving
and investing 775,000
• Cannot shortcut
process 525,000
• Chart based on
– 10% contribution rate 275,000
– 5.14% annual rate of
return
25,000
– 2% annual salary
increase 35 40 45 50 55 60 67
– 3% annual inflation

7. Get Going
401(k) Scenarios
• Beginning salary
1,025,000
– 35 yr old: $61,000
– 45 yr old: $75,000 927,764
– 55 yr old: $91,000 775,000
• Contributes 10%
• Includes Amway 525,000
match 463,159
• Retires at 67 years 275,000
old
197,750
25,000
35 year old 45 year old 55 year old

8. Focus on Being a Great Saver
Contribution Scenarios
(35 yr old)
1,525,000
1,423,268
• Your contributions
1,233,674
today decide your 1,275,000
quality of
retirement 1,025,000
• Target 12% to 20% 927,763
775,000
• Increase
683,036
gradually, but as 525,000
quickly as possible
275,000
25,000
6% 10% 15% 20%

9. Manage Spending
• Work on your spending
habits and your savings
will take care of
themselves
• Use a personal financial
management tool
– Mint.com
– Quicken Books
– Excel spreadsheet
– Paper / Envelopes

10. 401k Basics – Traditional 401k
• Pre-tax savings provide highly efficient
savings tool for building your nest egg
• Taxed as income when you withdraw
from account (available without
penalty anytime after 59 ½ yrs old)

11. 401k Basics – Roth 401k
• Post-tax savings provide highly
efficient savings tool for creating tax-
free income upon retirement
• Tax-free income when you withdraw
from account (available without
penalty anytime after 59 ½ yrs old)

12. 401k Basics
Traditional 401(k) Roth 401(k)
• Contribution is taken out of • Contribution is taken out of
paycheck before tax paycheck after tax
• Investments grow tax-deferred • Investments grow tax-free
• Taxed as ordinary income upon • Tax-free upon retirement
retirement • Distributions without penalty
• Distributions without penalty allowed after 59-½
allowed after 59-½

13. 401k Basics – Amway Match
B & PS
• Amway matches 50% of
your contributions in any
combination of traditional 3%
and Roth, up to your 6%. B & PS
• Amway match is always
deposited into traditional 3%
6%
B & PS
account.
• Amway’s discretionary
B & PS
base contribution & profit 3% 5%
B & PS
sharing is deposited into
2% 2%
traditional account 9%
1.5%
• 2012 IRS employee 1%
1%
5%
4%
contribution limits: 3%
2%
– $17,000
– $22,500 with “catch-up” Amway Base & Profit Sharing Amway Match
Roth Contribution Traditional Contribution

14. How Your Amway 401k Works
Amway 401(k)
• Investment options are
the same for Traditional
& Roth
Roth
• Select contribution % 401(k)
for each – any
combination is
allowable
Trad
• Accounts shown in 401(k)
aggregate on Fidelity
website

15. Common Amway Myths
• 15% Contribution Max
– You can contribute up to
70% of your salary or the
IRS limits, whichever is
greater
• You have to roll your $
into an IRA upon
retirement
– Sales technique
– You can leave your $ with
the Amway plan if you
have more than $5k

16. Glossary of Important Investment
Terms
• Stocks - Fractional ownership in company (Equity)
• Bonds - Money lent to company (Debt)
• Mutual Funds - An account consisting of a combination of multiple
companies’ stocks and/or bonds
• Asset Allocation - The apportioning of investments to the different
asset classes: stocks, bonds & cash (main 3)
• Diversification - The apportioning of investments to the different
asset class sub-classes
– Stocks
• Large, mid & small cap
• Value, growth & blend
• International, specialty
– Bonds
• Gov’t & Corporate
• High yield, inflation protected, low duration, etc
– Cash

17. An Analogy for Understanding
Asset Allocation
• Your Personal
Investment Recipe
• Mutual funds =
Ingredients
• Recipe = How you mix
Ingredients

18. Determining Your Ingredients
• Make sure the
ingredients are varied
• Consider risk
• How expensive it is

19. Common Misbehaviors

20. Common Misbehaviors

21. Common Misbehaviors

22. Retirement Fund vs. College Fund
• Adequately funding your Retirement
comes 1st
• College funding must be secondary
• Our children will probably have options
available to them to help pay for college
• This is your ONLY retirement funding
opportunity

23. A Long Term Outlook

24. Thank You
Schedule your personal consultation now!
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Contact us at (616) 871-0751 or (888) 738-8780