Creating Your Personalized Financial Plan Part of an educational workshop series on financial planningfor retirement Taking the Next Step to Plan for a Financially Secure Future
Financing your future People don’t plan to fail, they fail to plan.
$428,000 Amy $20k $345,000 Fred $70,000 Total Contributions Don’t wait--get started today The value of starting early • Amy starts saving $2,000 a year at age 20 and stops after 10 years. • Fred starts saving $2,000 a year at age 30 and continues to save for 35 years. This example assumes an 8 percent hypothetical annual return on both IRAs and does not take into account any income tax effect. It is not a projection or illustration of any particular investment option, nor a guarantee or indication of investment results in the future. Your results will vary.
Your Personalized Financial Plan A four-step process: Determine your goals and gather information Create your Plan Schedule follow-up appointment to review your Personalized Financial Plan Determine your action steps and implement your financial strategy
Creating your Personalized Financial Plan What we’ll need from you: • Your age and years until retirement • Your feelings about investment risk • A list of your life insurance policies andcash values • Detailed pension information • Estimated Social Security Benefits Statement
Creating your Personalized Financial Plan What we’ll need from you: • Current annual income • Personal assets • Your home • Saving and investment account balances • Retirement savings
Creating your Personalized Financial Plan What we’ll need from you: • Current annual expenses • Monthly mortgage and utility bills • Credit card payments • Auto loans • Estimated retirement expenses
Creating your Personalized Financial Plan Make time to plan your future!
Your Personalized Financial Plan The results • Information that will help you with: • Retirement planning • Education funding • Long term care insurance • Life insurance • Estate planning • Investments • Expenses
Your Personalized Financial Plan The results • Easy-to-understand net worth statement • Assets • Liabilities • Review of your current asset allocation • Retirement plans and personal investments
Your Personalized Financial Plan The importance of asset allocation Financial Analysts Journal, May-June 1991 analyzing the period 12/77 to 12/87. Past performance is not an indication or guarantee of future results.
Your Personalized Financial Plan Your retirement goals • Current investments and retirement plans • Illustration of future income • Compare this to your retirementincome needs • Calculate how much moreyou’ll need to save to fillin the gap
Your Personalized Financial Plan Your survivor needs analysis • Review existing lifeinsurance coverage • Provide survivorneeds analysis
Your Personalized Financial Plan Your long term care needs analysis • Economic impact of long term care • Cost of waiting to purchase longterm care insurance • Calculate your unprotected need • Estimated long term care expensesminus your available assets
Your Personalized Financial Plan Your estate planning summary • Estimated net worth statement • Steps you may want to take to reduce your heir’s potential estate tax burden such as: • Revocable living trusts • Irrevocable life insurance trusts • Unlimited marital deduction • Annual gift exclusion CitiStreet does not give tax or legal advice. If you need tax advice, ask your lawyer or certified public accountant. If you need legal advice, ask your lawyer.
Your Personalized Financial Plan Your education funding illustration • Total estimated costs of educating your children • How much you’ll need to save to coverthese costs: • One up-front payment or • Annual investments