1. Retirement Planning:
The Starting Point
For Investors 21-35 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. Create a Retirement Vision

5. Get Started Early
• Compound growth
takes time to build Example of Compound Growth
• Largest effects felt 1,200,000
after years of saving
1,000,000
and investing
• Cannot shortcut 800,000
process 600,000
• Chart based on
400,000
– 10% contribution rate
– 5.14% annual rate of 200,000
return
-
– 2% annual salary
increase 25 30 35 40 45 50 55 60 67
– 3% annual inflation

6. Get Started Early
401(k) Scenarios
1,400,000
• Beginning salary
1,200,000
– 25 yr old: $50,000 1,167,972
– 35 yr old: $61,000 1,000,000
– 45 yr old: $75,000
800,000
• Contributes 10% 747,464
600,000
• Includes Amway
match 400,000 438,264
• Retires at 67 years 200,000
old
-
25 year old 35 year old 45 year old

7. Focus on Being a Great Saver
Contribution Scenarios
(25 yr old)
1,800,000
• Your contributions
1,600,000
today decide your 1,617,192
1,400,000
quality of retirement
1,200,000
• Target 12% to 20% 1,167,972
1,000,000
• Increase gradually
800,000
808,595
600,000
400,000
404,298
200,000
-
3% 6% 10% 15%

8. 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

9. 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)

10. 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)

11. 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

12. 401k Basics – Amway Match
PS
• Amway matches 50% of
your contributions in any
combination of traditional 3%
and Roth, up to your 6%. PS
• Amway match is always
deposited into traditional 3%
6%
PS
account.
• Amway’s discretionary
PS
base contribution & profit 3% 5%
PS
sharing is deposited into
2% 2%
traditional account 9%
1.5%
• 2012 IRS employee 1%
1%
5%
4%
contribution limits is 3%
2%
$17,000
Amway Base & Profit Sharing Amway Match
Roth Contribution Traditional Contribution

13. 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

14. 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

15. 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

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

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

18. Common Misbehaviors

19. Common Misbehaviors

20. Common Misbehaviors

21. Make a Plan and Stick to It

22. Thank You
Schedule your personal consultation now!
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