1. Presented by: Rick Scruggs,
CLU, ChFC
Sonny Merryman, Inc. 401(k) Plan
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2. What is
“Retirement
Success?”
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 Retire with 70% of your final
compensation at Full Social
Security Age. Adjusted for
inflation and integrated with
Social Security benefits.

3. LIVING PROOF
THAT WE ALL
NEED TO PLAN
FOR A LONGER
RETIREMENT
“A typical American city.
400 people. And a
fascinating experiment.
We asked everyday people
to show us the age of the
oldest person they’ve
known by placing a sticker
on our chart. Living proof
that we are living longer.
Which means we’ll need
more money to live in
retirement.”
Source: Prudential Financial, Inc. 20133

4. Are you ready for your
“longevity bonus”?
Average Life expectancy increased from about
age 48 in 1900 to about age 78 today
A person who reaches age 65 today can
reasonably expect to live another 20 years on
average—until about age 85!
Have you saved enough to live well
after age 65?
4 Source: Ken Dychtwald, Ph.D; Founder & CEO of Age Wave http://en.wikipedia.org/wiki/Ken_Dychtwald

5. What will you live on during retirement ?
*Your Social Security
*Your own personal savings
*Your company’s 401(k) plan
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6. Questions To Ask Yourself
 Will my social Security be enough?
 How long will I need my retirement income?
 Does it really matter WHEN I start saving
through the 401(k) plan?
 Am I on track to be able to make it during
retirement?
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7. Social Security
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 41 Million Social Security checks are sent out
each month.
 - The average check in the United States in 2012
was $1,230, while the maximum was $2,513
when taken at Full Retirement age.
 - If you’re married there are
567 options for claiming your benefits.

8. 8
Lifetime Social Security Benefits
Assumes income at Age 55 and inflation adjustment of 2.5%.
Annual Income $40,000 $75,000 $120,000
Single $1,200 $2,000 $2,500
Live to 86 $511,989 $853,299 $1,066,626
Married $1,800 $3,000 $3,750
Live to 92 $1,180,782 $1,967,971 $4,087,078

9. Five Behaviors Detrimental to Success
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1. Inertia
2. Procrastination
3. Choice Overload
4. Endorsement Effect
5. Framing

10. What would you be willing to do for
financial success?
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 Luckily, you don’t have
to go to any extremes.
There are basic
strategies that may help
you be financially
secure.
 1. Pay yourself first
 2. Start Early
 4. Don’t get emotional
 5. Don’t touch the
401(k)
 6. Needs vs. wants

11. 1. Pay yourself first
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 The foundation of financial
success is to spend less
than you earn.
 Do it and success is just a
matter of time as you steadily
build wealth. If you don’t,
financial success excludes
you, no matter how much
money you make.

12. 2. Start Early
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 The young have an incredible advantage in investing—Time.
 Three things that help determine how much an investment will be worth:
 1. The amount invested
 2. The rate of return
 3. How long the money is invested
Example: Assume you want to retire by age 65 assuming a return of
5% and a monthly contribution of $250
Starting Age Account Value at Age 65
25 $383,095
35 $208,932
45 $103,187
55 $38,982

13. 3. Don’t get emotional
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EUPHORIC
CONFIDENT
UPBEAT
NERVOUS
DEFEATED
SCARED
ENCOURAGED
BEST OPPORTUNITY
TO MAKE MONEY

14. 4. Don’t touch the 401(k)
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If you paid for your vacation
with a withdrawal from your
401(k), all 4 were right.
You could cash out your old 401(k), but how much will it cost?
Example: Cashing out for a vacation
$5,000?
$73,000?
$8,000?
$45,000?
Rule of 77

15. 5. Needs vs. wants
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How you choose to meet your needs has a dramatic impact on the amount you can save and invest. If
you’re not saving enough, switch to the cheaper option in a couple of areas and invest the money you save.
It’s not that you shouldn’t even choose the expensive option; it’s that you should limit your splurges to what really
matters to you.
Transportation Housing Food
Luxury
Car:
$700/mo
Sensible Car:
$300/mo
Dining Out:
$40/person
Dining In:
$14/person
Luxury Home:
$1,900/mo
Nice Home:
$850/mo

16. A Small Increase Can Have a Big Impact
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$28,573
$57,147
$85,720$30,000
$60,000
$60,000
$0.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
$100/mo. Contribution $200/mo. Contribution $300/mo. Contribution
Compound Earnings Total Contributions
Based on a 5% annual compound interest and monthly contributions over a 25-year period. This hypothetical example is for illustrative purposes only. There is no guarantee that
the results shown will be achieved or maintained over any time period. This example assumes all other variables are the same except the amounts being contributed.

17. The Annual Review – keeping you on track
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 Are you maxing out your contributions?
 If you’re over 50, are you taking advantage
of catch-up contributions?
 Did your marital status change?
 Do you have other retirement savings you
may want to consolidate into one account?
 Are your beneficiaries up-to-date?

18. REMEMBER….
Retirement
planning is
not just a one
time event!
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19. Tools for Staying
on Track
-UnifiedPlan Statement
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Page 1
Page 4

20. Tools for Staying
on Track
Unified Trust Financial
Resource Center
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21. Financial Designs
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Full- Service
local, Independent, and
qualified Advisory
firm, servicing
employees/participants of
retirement plans as well as
providing individual financial
planning.
Experienced
Qualified
Independent
Full-Service
Professional