Income Decisions 2 Years Out

Presented By: COPEC

James Lindner, CFP®, CLU®, ChFC® President & CEO Retirement Strategies, Ltd. 5060 Parkcenter Ave. Suite A · Dublin, OH 43017 614.799.8668 [email protected] www.retirement-strategies.com Ready for Retirement Quiz Help recognize areas you may need additional work. Evaluation Form Let us know if you have specific needs or questions we can help you with today What we will be discussing today?

1. Financial Independence Planning - Clarity & Goal Setting 2. Strategies - Budgeting 3. Retirement Income Review 4. Social Income 5. Health Care Decisions 6. Estate Planning How Long Will Retirement Last?

According to the National Vital Statistics Report, a 65-year-old man can expect to live, on average, to 83 and a 65-year-old woman to 85.

According to the SSA, 1 out of 4 retirees will live past age 90 and 1 out of 10 will live past age 95. . Do you know where you stand financially for Retirement?

. Do you visualize what you want your retirement to look like? 1) Financial Independence Planning

 What is it? Financial Independence Planning is a process that provides clarity of current financial position in conjunction with solving future goals for retirement while sustaining for longevity.

 Key benefits: • Determine if you are on track financially • Evaluate the impact of your allocation • Model payment options • Model Social Security starting dates • Reveal impact of long term health care costs • Show the benefit of income tax bracket management • Test success rates of different economic climates (Monte Carlo) Financial Independence

 Important planning variables • Projected Life expectancy • Expected rate of return on • Impact of • Financial assets set aside • Social Security income for retirement • Pension income • Portfolio risk tolerance • Potential inheritances • allocation strategy • Healthcare and long-term • Desired standard of living care costs in retirement • Desired gifting strategies Financial Independence

Meets Minimum Need

Portfolio

Savings Period Distribution Period

$0 Years 5 10 15 20 25 Today Retirement Start Date of Death Financial Independence Falling Short

Portfolio

Savings Period Distribution Period Shortfall

$0 Years 5 10 15 20 X Today Retirement Start Date of Death Financial Independence

Excess Assets

Portfolio

Savings Period Distribution Period

$0 Years 5 10 15 20 25 Today Retirement Start Date of Death Be Careful!!! Stay Aware.

Most retirement plans that fail, do so because they don’t stick to their planned .

• Failure to stick to projected standard of living • Underestimating Inflation • Have excessive “one time” extra withdrawals • Can’t say “no” to family members / children • Poor tax bracket management on investment distributions • Failure to account for extra Health & LTC 2) Expense Strategies - Budgeting

 What kind of Standard of Living do you want in Retirement?  Future Expenses Need - Wants - Wishes  Fixed vs. Variable Expense  Consider Inflation & Taxes  Paying off Mortgage  Plan for Unanticipated Needs • Health/Long Term Care? • New Roof, Furnace? • Family Needs? Budgeting Tools & Resources

• Spreadsheets • Card expense tracking tools • Ret