SOFA Exploring Your Options for a Quality Retirement

WHERE COMMUNITY HAPPENS
1-800-689-4851
www.sofausa.org
membership@sofausa.org
ExploringYour Options
for a Quality Retirement
The Society for Financial Awareness

WE WOULD LIKE TO WELCOME
YOU TO TODAY’S WORKSHOP
Thank You for joining us!
Our hope today is to provide you with some valuable information,
have some fun, and enjoy this next hour.

SOFA the organization, does not offer to sell financial
products nor promote any one particular company. Though
the presenter may mention specific financial instruments and
their functionality, SOFA’s role is only to educate and inspire.
SOFA only represents the educational workshop – all other
endorsements are non-SOFA related.

Nationwide Non-Profit Educational Speakers Bureau
501(c)(3), Public Benefit Corporation
Been around since 1993
Mission: To end financial illiteracy across America,
one community at a time.

EVALUATION
FORM
Please review this
form. I will be picking
these up at the end
of the workshop.
Do note –
the backside is to
be used for your
specific questions
and issues.

Society for Financial AwarenessThe Society for Financial Awareness
The Key to a Quality Retirement Is You!
When you Retire you’ll either
have the money or reasons
why you don’t.
It’s all about planning.Your
behavior and attitude today
will impact your cash results
for tomorrow.

Society for Financial AwarenessThe Society for Financial Awareness
What’s Your Financial Personality?
• Over Analytical - Analysis leading to Paralysis. For
whatever reason, too busy creating spreadsheets and
doing research as the years go ticking by. Can’t seem to
“pull the trigger”.
• Ready, Fire, Aim Investor – Has money, wants shortcuts.
Take a hot tip and buy. Very little due diligence; little if
any research. Impulsive.
• Concise, Precise, Focused, Act Together – Has a plan,
follows the proper steps. Has a budget. Has goals -
focused, deliberate, “walks the talk”.
• Spender – Every month there’s
nothing left. Living paycheck to
paycheck. No savings, little put
away for retirement, no
emergency fund.
• Too Busy – Who has time to
plan for the future? Living day
to day for the moment. Hectic,
out of control.

Wealth Building is Eroded by…
Healthcare Expenses Inflation
Debt
Taxes
Spending
Needlessly

$808,000,000
$1,700,000,00
0
$2,400,000,00
0
$22,917,000,0
00
1990 2000 2010 2019
Dealing With Debt
The privilege of
borrowing other
people’s money
greatly reduces
your ability to save!
Source: https://usdebtclock.org/

2017 | The Society for Financial AwarenessThe Society for Financial Awareness
The High Cost Of Debt
Even at low interest rates, you
could be paying more than
double of what you borrowed!
The blue cylinders represent
a principal balance while the
orange cylinders represent
interest paid.
15% 22%
$17,839
$47,087

Inflation is ‘Values’ Natural Predator
$100
$617
$661
$0 $100 $200 $300 $400 $500 $600 $700
1970
2016
2019
Purchasing Power
This example was secured from http://www.usinflationcalculator.com/, according to their online calculator something that cost $100 in 1970
would cost $617 in 2016. Historically, Inflation increases at a rate of 3% each year.

What Is Your Future Tax Liability?
You have options to how
you invest for retirement.
In some instances you can
invest Pre-Tax dollars, and
in others, After-Tax dollars.

Question for you…
Do you want to pay Taxes on the Seed or the Crop?
It’s vital to understand Tax consequences at Distribution time!

Pre-Tax vs. After-Tax
Pre-Tax Investments After-Tax Investments
• Tax-Deferred Investments like 401(k) and
Traditional IRA, 403b, 457, Defined Benefit.
- Allows you to postpone taxes until
you begin withdrawing money
• A Roth IRA is an After-Tax investment that can
create a source of Tax-Free income in the future.
- Contributions are not Tax-Deductible
in your saving years, but Tax-Free
withdrawals can help reduce your
total Taxable Income when you
reach retirement.
• Any investment created with After-Tax dollars.

Your Tax Situation WILL Change
The key is to understand that by the time you Retire your current
deductions may be unavailable.
• 401(k)
• Mortgage Interest
• Children
This can potentially result in your Post Retirement Tax bracket being
similar to your Pre-Retirement Tax bracket.
You can mitigate your tax obligations, if you plan accordingly.

Planning for Health Care is important
The truth is… we get old.
Our health concerns widen
as we enter Retirement.
Health Care is an important
consideration in your
golden years.

Considerations
Things to consider when planning Retirement

Social Security vs. Self Security
• Question: By the time you do Retire, what percentage of
your total monthly Income will come from Social Security?
• Question: At Retirement, what will be the “purchasing
power” of tomorrow’s dollars vs. today’s?

Inspect What You Expect
Social Security
is a Federal Insurance
program that offers
Supplemental Funds to
Americans during their
Retirement.

Create Income Streams
• Social Security
• Possible Defined
Benefit Pension
• 401K or Rollover
• Traditional IRA
• Roth
• Non Qualified
Stocks, Bonds
Life Insurance
Real Estate
Mutual funds
Annuities
• Liquidation of Assets

401(k) Qualified Plan Contribution – Do it!
Your deposits build up for Retirement.
Your contributions reduce your annual
taxable Income.
You have the ability to re-allocate
your portfolio without any
Taxable consequences.
All growth of the entire portfolio is Tax
Deferred (your deposits, Employer
match if applicable, and potential
investment growth) .
Withdrawals will be taxed as Ordinary
Income. If Withdrawals are made prior to
age 59 and ½ a 10% penalty will apply.

Pre-Tax vs. After-Tax Considerations
Diversify your Retirement contributions between Pre-Tax and After-Tax Retirement
plans.
401(k) plan
- you invest Pre-Tax money, but pay Ordinary Income Taxes when you withdraw.
Roth IRA
- you invest After-Tax money into your Roth IRA, and are not taxed on the money
when you withdraw. Use this money first, allowing the Pre-Tax to keep growing
until 70 ½ or when needed.
At Distribution time, this strategy could be critical to your lifestyle during those golden
years if Withdrawals are considered Qualified or Pre-Tax.

Food For Thought…
You, not your Employer; You, not the Government, is responsible
for your Retirement.
When should You do your Retirement planning?
Stay diversified- use Asset Allocation.
Create “balance” utilize Pre-Tax and After-Tax strategies.
Inspect what you expect… monitor your results constantly.
Planning is the key. Being busy and not paying attention is a “cop out”…
It’s always about you – stay on it!

EVALUATION
FORM
Please take a moment
to complete. I will be
collecting these
in a moment.
If you need a pen,
please let me know.

WHERE COMMUNITY HAPPENS
1-800-689-4851
www.sofausa.org
membership@sofausa.org
Thank you for your
valuable time today

SOFA Exploring Your Options for a Quality Retirement

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