Retirement Planning Workshop

Welcome ,[object Object],[object Object],[object Object],[object Object]

When I’m 65 Will you be able to enjoy the retirement revolution? Andy Hoang Financial Planner January 16, 2009

Agenda The transformation of retirement The five challenges Solutions to the revolution

The retirement generation gap ,[object Object],[object Object],[object Object],Chances of a 65-year-old living to age 90 0% 20% 40% At least one spouse 60% 80% 100% Age 80 85 90 95 100 105 Individual

The retirement generation gap ,[object Object],[object Object],[object Object],[object Object]

The retirement generation gap ,[object Object],[object Object],[object Object]

Retirement challenges are a-changin’, too ,[object Object],[object Object],[object Object],[object Object]

The five retirement challenges ,[object Object],1 Where will all your income come from? ? ? 25 14 3 Earnings Asset income Unaccounted income for future retirees Other

The five retirement challenges ,[object Object],2 0% 50% 25% 100% 75% % Withdrawal rate of income 100% 0% 80% 20% 60% 40% 40% 60% 20% 80% 0% 100% 94% 74% 49% 96% 74% 43% 98% 72% 31% 98% 65% 13% 100% 42% 1% 95% 11% 0% Higher risk/return Lower risk/return Stocks Bonds 4% 6% 8% Simulation estimates the range of possible outcomes by using the historical 1926-2004 annual average return and standard deviation figures for the asset classes and inflation. These projections do not take into account other variables such as fluctuating principal and changing tax consequences. No assurance can be given that the assumptions will prove to be correct, and the difference between assumptions and actual results could vary materially. Indices used: Stocks, S&P 500 Index; Bonds, 5-year U.S. Government Bond Index. Government bonds are guaranteed by the full faith and credit of the United States government as to the timely payment of principal and interest if held to maturity, while returns and principal invested in stocks are not guaranteed. The above indices are unmanaged and unavailable for direct investment. Index past performance cannot guarantee future returns. Chances of your income lasting throughout a 25-year retirement

The five retirement challenges ,[object Object],3 Hotel stay 1950–2004 6.22% $0.09 Dining out 1950–2004 4.28% $0.11 Admissions to movies, theater, concerts, and 1950–2004 5.05% $0.26 sporting events Avg. annual $1 Equals Expense Time Period inflation rate (2003) Source: U. S. Census Bureau of Labor Statistics, 3/05 Cost of inflation

The five retirement challenges ,[object Object],4 -40 -30 -20 -10 0 10 20 30 40 50 60 70 80 Positive 70.9% Negative 29.1% Positive and negative years of the S&P 500 Index (1926 – 2004)

The five retirement challenges ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Sources: *The State of Retiree Health Benefits, Henry J. Kaiser Family Foundation, 2004 **Consumer expenditure survey 2003, U.S. Bureau of Labor Statistics, 2004 5

A time to sow, a time to reap Revolutionary income management Variable expenses – travel, leisure activities, gifts, etc. Fixed expenses – mortgage, utilities, monthly healthcare and prescription costs, and other recurring bills Wealth transfer – assets designated for your heirs Healthcare – assets cover expenses beyond routine prescription and doctors’ bills, such as those for emergency and long-term care Emergency/Opportunity funds –immediate cash for emergencies or financial opportunities

Finding potential solutions A shifting income portfolio for your evolving retirement needs Variable expenses Fixed expenses Wealth transfer Healthcare Emergency/Opportunity funds

Finding potential solutions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Finding potential solutions ,[object Object],[object Object],[object Object],[object Object],[object Object]

Finding potential solutions ,[object Object],[object Object],[object Object],[object Object],[object Object],Any payments or benefits due on the annuity are backed by the claims-paying ability of the issuing insurance company. Such payments and benefits are subject to the financial condition of the issuing insurance company.

Finding potential solutions ,[object Object],[object Object],[object Object],[object Object]

Finding potential solutions ,[object Object]

Finding potential solutions ,[object Object],[object Object],[object Object],[object Object],Any payments or benefits due on the annuity are backed by the claims-paying ability of the issuing insurance company. Such payments and benefits are subject to the financial condition of the issuing insurance company. 1

Finding potential solutions ,[object Object],[object Object],[object Object],[object Object],Any payments or benefits due on the annuity are backed by the claims-paying ability of the issuing insurance company. Such payments and benefits are subject to the financial condition of the issuing insurance company. 2

Finding potential solutions ,[object Object],[object Object],[object Object],[object Object],[object Object],3

Finding potential solutions ,[object Object],[object Object],[object Object],Any payments or benefits due on the annuity are backed by the claims-paying ability of the issuing insurance company. Such payments and benefits are subject to the financial condition of the issuing insurance company. 4

Finding potential solutions ,[object Object],[object Object],5

Get together with your advisor ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Summary Retirement is being revolutionized 5 retirement challenges Solutions

What’s next? Start planning now Talk to a financial advisor Lincoln Financial Advisors/Sagemark Consulting can help you plan for a retirement that keeps pace with your pursuits

Important information ,[object Object],[object Object],[object Object]

Retirement Planning Workshop

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