No matter what our occupations, most of us share a common goal of a comfortable retirement. Almost everyone looks forward to the day when they can retire and enjoy more free time. And so, the investment decisions we make in preparation for that retirement are crucial.
Providence Wealth Partners Keys to investing for retirement
1. Keys to Investing for Retirement
Investment Matters
Here to serve.
Please Call/Email with any questions.
2. Financial Matters SeriesFinancial Matters Series
Securities and Investment Advisory services offered through Transamerica Financial Advisors, Inc. (TFA), a registered investment
advisor. Member FINRA & SIPC. Non-Security products and services are not offered through TFA. Providence Wealth Partners LLC and
TFA are not affiliated. We are licensed to sell securities in the following states: CA, CO, IL, IN, MN, OR and TN. This should not be
considered a solicitation in any other state. Due to various state regulations and registration requirements concerning the dissemination of
information regarding investment products and services, we are currently required to limit access of the following pages to individuals
residing in states where we are currently registered. A broker/dealer, investment advisor, BD agent or IA rep may only transact business
in a particular state after licensure or satisfying qualifications requirements of that state, or only if they are excluded or exempted from the
states broker/dealer, investment advisor, or BD agent or IA rep requirements, as the case may be; and follow-up, individualized
responses to consumers in a particular state by broker/dealer, investment advisor, BD agent or IA rep that involve either the effecting or
attempting to effect transactions in securities or the rendering of personalized investment advice for compensation, as the case may be,
shall not be made without first complying with the states broker/dealer, investment advisor, BD agent or IA rep requirements, or pursuant
to an applicable state exemption or exclusion.
ProvidenceWealthPartners
3. How Much Will I Need?
LUMP SUM MONTHLY INCOME
$
1 Million
$
2 Million
$
5 Million
or more?
$
5,000/MO
$
10,000/MO
$
15,000/MO
or more?
or
or
or
or
or
5. Source: EBRI, 2012
How Long Will Retirement Last?
an amount
...but for
how long? 10years
20years
30years
42%
HAVE DETERMINED
THAT THEY EXPECT TO NEED...
6. Retirement Income Sources
Source: Investment Company Institute, 2012
$
5
Trillion
$
4
Trillion
$
3
Trillion
$
2
Trillion
$
1
Trillion
Defined-
Contribution
Plans
Defined-
Benefit Plans
Government
Plans
IRAs Annuities
Total U.S. Retirement Assets (in trillions of dollars)
$5.3
Trillion
$5.0
Trillion
$4.7
Trillion
$
2.6Trillion
$
1.7
Trillion
7. Investing for Retirement
Personal Savings & Investments
Employer-Sponsored Plans & IRAs
Real Estate & Home Equity
Other Personal Assets
8. Get to Know “Me Incorporated”
RISK TAKER
or
RISK ADVERSE
CONSERVATIVE
or
AGGRESSIVE
DETAIL ORIENTED
or
HANDS OFF
9. vs.
Only buy something that you’d be perfectly
happy to hold if the market shut down for 10 years.
-Warren Buffett
Pundit Portfolio vs. Disciplined Approach
10. Growth Plan for Your Net Worth
$1,200,000
$400,000
$1,000,000
$200,000
$800,000
$600,000
67 years52 years 55 years 58 years 61 years 64 years
$
1,198,279
$
500,000
This is a hypothetical example used for illustrative purposes only. It is not representative of any specific investment or combination of investments.
6% Annual Return
11. Source: Thomson Reuters, 2013. For the 10-year periods between January 1, 1994, and December 31, 2012. Past performance does
not guaruntee future results, actual results will vary.
Stocks
STOCKS.........
BONDS...........
1999
to
2008
1996
to
2005
2000
to
2009
1997
to
2006
1994
to
2003
2001
to
2010
2002
to
2011
1998
to
2007
1995
to
2004
2003
to
2012
stock and bond performance over rolling 10-year periods181.9%
133.1%
93.5%
94.8%
82.5%
75.2%
80.1%
92.6%
80.5%
77.5%
79.6%
127.2%
93.8%
68.3%
38.1%
28.1%
0.0%
30.6%
71.2%
54.3%
12. Bonds
Source: Thomson Reuters, 2012. Past performance does not guarantee future results. Actual results will vary.
8.00%
4.00%
7.00%
3.00%
2.00%
6.00%
5.00%
1993
1997
2007
2012
2002
Yield on 20-YEAR U.S. Treasury BOND
13. Cash Alternatives
Sources: Thomson Reuters 2013; Federal Reserve, August 2013. Past performance does not guarantee future results. Actual results will vary.
..A highly accomodative stance of monetary policy will
remain appropropriate for a considerable time...
-Federal Reserve, January 2013
1993
1996
2006
2011
2001
2013
0.00%
6.00%
Yield on Three-Month U.S. Treasury Bill
14. Where’s the Money?
$138.2
billion
$63.7
billion
$8.0
billion
$0.1
billion
TOTAL
SALES:
$210 billion
VARIABLEFIXED
IMMEDIATE DEFERRED
Source: Insured Retirement Institute, 2011. Based on 2010 annuity sales. Variable annuities are sold only by prospectus. Please consider the charg-
es, risks, expenses and investment objectives carefully before investing. A prospectus containing this and other information about the investment
company can be obtained from your financial professional. Read it carefully before you invest or send money.
15. Annuities
Accumulation
Phase
Payout
Phase
Payout
Phase
Immediate Deferred
Variable annuities are sold only by prospectus. Please consider the charges, risks, expenses and investment objectives carefully before investing. A
prospectus containing this and other information about the investment company can be obtained from your financial professional. Read it carefully
before you invest or send money.
16. Growth Plan Becomes Income Plan
$1.2 million has the potential to generate $1.7 million in income.
This is a hypothetical example used for illustrative purposes only. It is not representative of any specific investment or combination of investments.
6% annual return 4% annual return
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90AGE
Growth
Plan
Investment
Plan
$50,000 at age
67 increasing
3% per year
17. Source: Brinson, Singer, and Beebower, “Determinants of Portfolio Performance II: An Update,” Financial Analysts Journal, May/June 1991
Asset Allocation and Portfolio
Performance
Other factors
Overall
asset
allocation
18. Investing for Retirement
You do things when the
opportunities come along. I’ve
had periods in my life when
I’ve had a bundle of ideas
come along, and I’ve had long
dry spells. If I get an idea next
week, I’ll do something. If not,
I won’t....
-Warren Buffett
Where some see challenges,
others see opportunities.
20. Financial Matters SeriesFinancial Matters Series
Brandon Singer
BSinger@ProvidenceWP.com
www.ProvidenceWealthPartners.com
Securities and Investment Advisory services offered through Transamerica Financial Advisors, Inc. (TFA), a registered investment
advisor. Member FINRA & SIPC. Non-Security products and services are not offered through TFA. Providence Wealth Partners LLC
and TFA are not affiliated. We are licensed to sell securities in the following states: CA, CO, IL, IN, MN, OR and TN. This should not
be considered a solicitation in any other state. Due to various state regulations and registration requirements concerning the
dissemination of information regarding investment products and services, we are currently required to limit access of the following
pages to individuals residing in states where we are currently registered. A broker/dealer, investment advisor, BD agent or IA rep may
only transact business in a particular state after licensure or satisfying qualifications requirements of that state, or only if they are
excluded or exempted from the states broker/dealer, investment advisor, or BD agent or IA rep requirements, as the case may be; and
follow-up, individualized responses to consumers in a particular state by broker/dealer, investment advisor, BD agent or IA rep that
involve either the effecting or attempting to effect transactions in securities or the rendering of personalized investment advice for
compensation, as the case may be, shall not be made without first complying with the states broker/dealer, investment advisor, BD
agent or IA rep requirements, or pursuant to an applicable state exemption or exclusion.
