the journey begins here - … begins here securities and investment advisory services offered...
TRANSCRIPT
A check for you.
“It is good to have an end to journey
toward; but it is the journey that
matters, in the end.” -
- Ernest Hemingway
THE JOURNEY BEGINS HERE
Securities and Investment Advisory Services offered through Voya Financial Advisors, Inc. member SIPC. Egan, Berger & Weiner, LLC is not a subsidiary of nor controlled by Voya Financial Advisors, Inc.
RETIREMENT BRINGS WITH IT A MYRIADOFCHANGES TO YOURLIFE
Retirement brings with it a myriad of changes to your life,
many will be anticipated, some will not. There are financial
changes, emotional changes, relationship changes and
more. How you handle these changes will be important
factors in enjoying your retirement vision.
LifeCheck™ is designed to help you address the financial
changes that will be occurring. This workbook has
resources to help you understand the emotional changes;
we highly recommend that you spend some time focusing
on this aspect of your retirement.
Managing your money in retirement is very different than
managing your money while working. During your working
years you prioritized returns – you often had a long time
horizon that was fairly well defined and somewhat flexible.
You were constantly adding new money and inflation was
less of a concern. In retirement none of these hold true.
Income and preservation become priorities. Inflation
becomes a primary concern and your time horizon
is impossible to define. While investment returns are
important, how those returns come to you is even more
important.
Withdrawals from your investments could amplify the
effects of negative market returns, increasing the risks
of you outliving your money. A few bad years during the
beginning of your retirement could negatively impact
your ability to achieve your goals.
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RISKS CHANGE IN RETIREMENT
Market FluctuationsInsufficient Growth Rate
HIGH RISK
HIGH RISKPurchasing PowerLongevityHealthcare
LOW RISKPurchasing Power
LongevityHealthcare
LOW RISKMarket Fluctuations
Insufficient Growth Rate
WORKING YEARS
RETIREMENT YEARS
YOUR LIFE’S JOURNEY
A check for you.
PAGE 4 HOW LONG 1WILL YOU LIVE?
PAGE 5 HOW HAVEYOUR ATTITUDES
CHANGED?
WHAT ABOUTSOCIAL SECURITY?
SPENDING 3) HOW HAS YOUR
CHANGED?
YOUR PERSONALINCOMESTRATEGY!
PAGE 8
PAGE 7
PAGE 9
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3
4
5
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#1 HOW LONG WILL YOU LIVE?
This is a very important question, and one that is virtually impossible to answer with any degree of certainty. Americans are living longer than ever before. According to the Social Security Administration, one in four 65 year olds will live to age 90 and one in ten will live to age 95. According to a Boston University study, centenarians, those living past age 100, are the fastest growing segment of the US population in terms of age. The US Census Bureau reports that the number of centenarians doubled to 72,000 over the past 20 years and could balloon to as many as 4.2 million by 2050.
While the average life expectancy for today’s 65 year old is 83, it is very possible that you could live well past that age. Prudent financial planning should account for you or your significant other, if you’re planning with one to live a longer than expected life. Running out of money in later life could mean a loss of independence and the possibility becoming a burden on your family.
There are two ways that the financial planning industry estimates life expectancy: using current life expectancy tables or using a fixed planning age, say 95. Both of these methods seem fairly arbitrary and don’t take into account your personal history, habits and lifestyle. We’ve seen that planning too short has negative implications, but planning for too long of a life has short-comings as well.
At Egan, Berger & Weiner we prefer a more personalized method to help us estimate your life expectancy. We recommend that each of our clients take a test like those offered by RealAge.com® or Livingto100.com™. By answering very specific questions about your health, habits and familial history, these tests may offer insight into whether you will live longer than the average person. We don’t ask that you share with us the report, only the age, which we will use in your custom LifeCheck™ strategy.
65 65 ONE IN FOUR
YEAR-OLDS
ONE IN TEN
LIVE TO BE
90YEAR-OLDSLIVE TO BE
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HOW HAVE YOUR ATTITUDES CHANGED?
1) Rank the following statements in order of importance (1 being lowest - 5 being highest)
I do not want to outlive my assets: 1 2 3 4 5
I want to ensure that my income keeps up with the rising costs of the things I buy 1 2 3 4 5
I prefer a predictable income stream 1 2 3 4 5
I want to make sure that I always have access to all of my assets 1 2 3 4 5
I prefer that the value of my assets does not fluctuate with the stock market 1 2 3 4 5
2) How soon do you plan to begin withdrawing from your investment assets?
o Right away
o 1 – 3 years
o 4 – 9 years
o Over 10 years
o I do not plan to withdraw from my investment assets
3) Based on life expectancy tables, the average 55 year old American female can expect to live to 83 years of age, and the average 55 year old American male to 80 years. Considering your current health and family history do you expect to live a shorter, longer or average life expectancy?
oShorter o Average o Longer
4) How important is it that you leave assets to your heirs or to a charity?
o Not at all important
oNice if it happens, but not my priority
o Definitely want to include this in my plan
5) If your annual retirement income were to decline by 10% or 15% how would you characterize the impact on your lifestyle?
o A large impact, I will likely have to make some very tough decisions
oA medium impact, I will have to make some changes but nothing drastic
o No real impact as there is room in my budget to make some cuts
#2
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HOW HAVE YOUR ATTITUDES CHANGED?
6) Do you own a long-term care insurance policy?
oYes o No
7) How would you best describe your tolerance for fluctuation in your annual retirement income?
oLow tolerance, I really would like steady income
o Medium tolerance, steady is great, but I can handle some changes
o High tolerance, I am okay with fluctuations
8) Would you be willing to trade access to some of your money for a more stable income stream?
oYes o No
9) What is most important to you, getting the most income you can from your investments or getting the most stable income you can from your investments?
oMost income o Stable income
10) If your investments which were valued at $50,000 were to decline to $39,000 within one year, what would you most likely do?
oSell all of my investments and move to safer investments
o Sell only the investments that lost money
o Do nothing
o Invest more as the declining value of the market may represent an opportunity
11) If your portfolio declined by an additional 10% to $35,100 in the following year, what would you most likely do?
oSell all of my investments and move to safer investments
o Sell only the investments that lost money
o Do nothing
o Invest more as the declining value of the market may represent an opportunity
12) When it comes to investing, I would describe myself as:
oAn investor with limited knowledge about investing or investment experience
o An investor with basic knowledge about investing and some investment experience
o An investor with considerable knowledge about investing and significant experience
o An investor with vast knowledge about investing and extensive experience
#2
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HOW HAS YOUR SPENDING CHANGED?
#3
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Wants Per MonthCable TV $
Dining Out $
Hobbies/Clubs $
Travel $
Pet Care $
Charity $
Gifts $
Allowances $
Wants Per MonthSubscriptions $
Entertainment $
Clothing $
Other $
Other $
Other $
TOTAL WANTS $
SUMMARY Per MonthNET INCOME $
TOTAL EXPENSES $
MONTHLY SURPLUS/DEFICIT $
Needs Per MonthHome Mortgage/Rent $
Property Tax $
Insurance $
Electric $
Gas $
Water $
Telephone $
Maintenance $
Other $
Car Loan $
Insurance $
Gas $
Maintenance $
Other $
Medical Insurance $
Doctor $
Prescriptions $
Income Per MonthSocial Security 1 $
Social Security 1 $
Pension 1 $
Pension 2 $
Rental Income $
Needs Per MonthMedical (cont) Medicare B $
Other $
Insurance Life $
Liability $
Long Term Care $
Other $
Debts Credit Card 1 $
Credit Card 2 $
Other $
Daily Groceries $
Other $
Other $
Misc. Other $
Other $
Other $
TOTAL NEEDS $
Income Per MonthPart Time Work $
Investment $
Other $
NET INCOME $
A “NEED” A “WANT”SOMETHING YOU SOMETHING NICEVSMUST PAY
A NECESSITYEACH MONTHTO HAVE BUT NOT
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WHAT ABOUT SOCIAL SECURITY?
YOUR PERSONALIZEDCLAIMING STRATEGY
#4
Social Security is a very important, yet often over-looked part of your retirement strategy. The value of an inflation adjusted stream of income, guaranteed to last as long as you do shouldn’t be under-estimated. Proper management of this important resource can often mean the difference of hundreds of thousands of dollars over your lifetime.
The following Social security strategy is based on the information which you have provided to us. Our main objective in creating this strategy for you is to balance two important goals: maximizing the total lifetime income you collect from Social Security and providing income protection if you should have a greater life expectancy than planned.
This is a brief summary of our recommendations. A more detailed analysis is included as part of your LifeCheckTM strategy. Please be sure to review it for more details.
_________ should file for benefits at age _________ and immediately suspend them.
_________ should file a restricted application for spousal benefits at age _____________.
_________ should file for benefits based on his/her own work record at age __________.
_________ should file for his/her benefit at age __________.
_________ should file for his/her benefit at age __________.
_________ is not eligible for Social Security benefits.
_________ is not eligible for Social Security benefits.
YOUR PERSONALIZEDINCOME STRATEGY?
#5
___________ % of your “NEEDS” in retirement should come from these sources
OF YOUR “NEEDS” AND ALL OF YOUR “WANTS”should come from these 3 sources of income
___________ % from your spending plan are currently covered by guaranteed sources such as Social Security, a pension or other forms of income.
Based on our strategy and your answers to the retirement questionnaire, you have enough income from guaranteed sources.
OR Based on our strategy and your answers to the retirement
questionnaire, you should consider increasing your guaranteed income amounts to $ ______________ .
You should consider placing $ ____________ in the following investment vehicles to accomplish your goal.
___________________________________________________________________________ .
A CERTAIN
o
o
REMAINDER
Long-termInvestments
Short-termInvestments
Cash
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WISH LIST/ DREAMS COME TRUE!
CURIOUS LIST Retirement isn’t just a financial event, it is also an emotional event. Happiness in retirement is often about staying active, learning and doing new things and being social. A curious list is simply a list of subjects that you would like to explore further at some point during your life.
Take a few minutes to think about your own curious list.
1 ________________________________________________________________________ ________________________________________________________________________
2 ________________________________________________________________________ ________________________________________________________________________
3 ________________________________________________________________________ ________________________________________________________________________
4 ________________________________________________________________________ ________________________________________________________________________
5 ________________________________________________________________________ ________________________________________________________________________
A wish is something aspirational, a hope or a desire. Wishes are great to dream about but if your finances require, they can be altered to fit. Some people would like to leave money to family or a favorite charity, this is a wish. Please tell us about your own wishes below.
Wish Amount#1 $
#2 $
#3 $
#4 $
#5 $
| 1 1
1. www.fairfaxcounty.gov/dfs/olderadultservices/vicap.htm-FairfaxCountyVirginiaInsuranceandCounselingAssistanceProgram.Aprogramintendedtoassistyouinselectingthebestretirementhealthinsurancecoverageforyoursituation.
2.www.medicare.gov/find-a-plan/questions/home.aspx-MedicarePlanFindercanhelpyouweighthroughthemyriadchoicesofMedicaresupplementplans.
3.www.fairfaxcounty.gov/dfs/olderadultservices/tipsfor2011medicarereview2.htm-OfferstipsforcomparingandselectingMedicarehealthplansanddrugcoverage.
4.Socialsecurity.gov–TheSocialSecurityAdministration’swebsitecanhelpyoucalculateandapplyforyourbenefits.
5.Seniornavigator.org–AwebsitethatprovidesfreeinformationaboutthehealthandagingresourcesavailabletoVirginians.Theinformationfocusesonissuessuchashealth,financialconcerns,legalquestions,healthfacilities,housingoptions,transportation,exerciseprograms,advocacy,andmore.
6.AARP.org–OneoftheleadingadvocacygroupsforAmericans50yearsofageorolder.
7.Seniorcorps.gov-SeniorCorpsconnectsAmericans55andoverwiththepeopleandorganizationsthatneedthemmost.Theyhelpthembecomementors,coachesorcompanionstopeopleinneed,orcontributetheirjobskillsandexpertisetocommunityprojectsandorganizations.
8. www.nihseniorhealth.gov-NIHSeniorHealthmakesaging-relatedhealthinformationeasilyaccessibleforfamilymembersandfriendsseekingreliable,easytounderstandonlinehealthinformation.NIHSen-iorHealthfeaturesauthoritativeandup-to-datehealthinformationfromInstitutesandCentersatNIH.
9.AAA.com–Travelandautomotiveinformation.
10.Frommers.com–Goodvacationandtravelsitewithalinkspecificallyforseniors.
11. Volunteermatch.org–Awebsitethatconnectsvolunteerswithcausesthattheyfindimportant.
12. VOA.org–VolunteersofAmericaisafaithbasedorganizationwhichmatchesvolunteerswiththosewhoneedthem.
13. HUD.gov–Housingassistance.
ENJOY LIFE’S JOURNEY
RETIREMENT RESOURCES
Welcome! You have reached the conclusion of the LifeCheck™ journey. This however is not a destination at all; rather it is a tool that will help you enjoy your life’s journeys.
With this plan in place we hope that you will feel empowered and confident enough to go forward, live life to the fullest, follow your passions and achieve your vision.
This plan is not stagnant, in order to be of the most value it must change and adapt to both internal and external forces. We look forward to seeing you soon, updating your plan and of course, hearing all about your journey.
Thank you for the opportunity to be a part of your future. We hope you’re as excited as we are.
The EBW Team
1919 Gallows Road, Suite 980Vienna, Virginia 22182(703) 506-0030www.ebwllc.com
A check for you.
YOU YOUR PARTNER
Gender
Date of Birth ________/________ / __________ ________/________ / __________
Marital Status
Employment Status _____ Employed _____ Retired _____ Business Owner
_____ Employed _____ Retired _____ Business Owner
Employment Income $ $
Other Income (non-investment only) $ $
State of Residence
Target Retirement Age
Who Will Retire in What Order? ____ Both Retire in Same Year ____ Either can Retire First
____ You will Retire First ____ Spouse will Retire First
ASSETS YOU YOUR PARTNER
Real Estate (primary) $ $
Real Estate (rental, vacation) $ $
Vehicles (total) $ $
Cash on Hand and in Banks $ $
Roth and Traditional IRA $ $
Current 401(k), 403(b) $ $
Prior 401(k), 403(b) $ $
Investment Accounts $ $
Annuities (total cash value) $ $
Cash Value Life Insurance $ $
Other Assets $ $
$ $
$ $
Total Assets $ $
LIABILITIES YOU YOUR PARTNER
Real Estate Mortgage (primary) $ $
Mortgage Debt (other) $ $
Auto Loan(s) (total) $ $
Credit Card Debt $ $
Retirement Account Loan $ $
Margin Loan $ $
$ $
Loans on Life Insurance $ $
Other Debts $ $
$ $
$ $
$ $
$ $
Total Liabilities $ $
NET WORTH: Total Assets minus Total Liabilities: $
A check for you.
ABOUT YOU AND YOUR FAMILY
RETIREMENT ASSUMPTIONS YOU YOUR PARTNER
Desired Monthly, After-Tax Retirement Income (in today’s dollars)
$ $
Do you want Social Security included as a retirement income source?
o Yes o No
o Not Eligible
o Reduced _____%
o Yes o No
o Not Eligible
o Reduced _____%
Are you a participant in the Civil Service Retirement System or Railroad Retirement Plan?
o Yes o No o Yes o No
Securities and Investment Advisory Services offered through Voya Financial Advisors, Inc. member SIPC. Egan, Berger & Weiner, LLC is not a subsidiary of nor controlled by Voya Financial Advisors, Inc.
A check for you.
1919 Gallows Road, Suite 980Vienna, Virginia 22182(703) 506-0030www.ebwllc.com
ANTICIPATED FUTURE INCOME: Some examples: inheritance, the sale of a business or deferred compensation.
Description AmountTaxable Income
Is This Income Recurring
StartYear
End Year
Who’s Income Is This?
o Yes o No o Yes o No o You o Your Partner o Both
o Yes o No o Yes o No o You o Your Partner o Both
o Yes o No o Yes o No o You o Your Partner o Both
o Yes o No o Yes o No o You o Your Partner o Both
o Yes o No o Yes o No o You o Your Partner o Both
NOTES: