Transcript Saving for a Rainy Day when it’s Already Raining

PLANNING FOR A
SUCCESSFUL LIFE
Presented by
Floretta E.Reed
245H NATIONAL A-PLUS CONVENTION
APRIL 2012
1
What is your greatest
fear in retirement?
▪ Running Out of Money
▪ Inability to Maintain
Standard of Living
▪ Health Care
Set Goals
 Maximize Earnings to Maximize
Retirement Benefits
 Eliminate Credit Card Debt

◦ Begin with highest interest rate
◦ Go to next highest until all are paid off





529 Plan for Children &
Grandchildren’s College
Medicare
Taxes
DO NOT TOUCH YOUR MONEY
UNTIL RETIREMENT!!!
Penalties
3
Thrift Savings Plan

While working, maximize contributions.

After retirement, watch your money.

Why? 2001 and 2008

Invest in Guarantees: Variable Annuities
4
Surrender
Value
$94,034.04
Percentage
Increase
Over 2 Yrs.
= 43.1%
Average
Annual
Return for
2 Yrs =
21.6%
Death Benefit
$100,706.29
Total Activity
$72,332.25
Estimated
Protected
Withdrawal
Value
$103,578.66
5
FEGLI & Alternative Comparison
$250,000 Coverage
Alternative Premium
Male
Female
$ 33.69
$ 28.00
Age
40
FEGLI
Premium
$ 32.50
45
$ 48.75
$ 51.63
$ 40.25
50
$ 75.83
$ 75.03
$ 56.88
55
$151.67
$ 89.91
$ 81.81
60
$325.00
$142.84
$142.34
Coverage
Level
Before
Age 65
After 65
75%
reduction
0.325 =
$ 16.79/mo.
NA
50%
reduction
0.925 =
$ 46.29/mo.
0.60=$30.00
No reduction
2.155
=$107.75
/mo.
1.83=$91.50
PostRetirement
Savings
Basic Coverage assuming a basic
salary of
$50,000.00 at
age 55
Alternative Plan For $50,000.00
Age 55
Male
Female
$76.46
$64.57
7
Sources
of
Income
Social Security Benefits
Age 62 Partial Benefit
Age 65-68 Full Benefits
Thrift Savings/IRA’s
- Withdrawal at 59½
Without Penalty
CSRS/FERS
-At Least 30 Years
and Age 55 CSRS
Life Insurance Plans
 Term
Insurance Plans
 Universal
 Whole
Life Plans
Life Plans
9

Learn more about FERS and CSRS
◦ Educate yourself
◦ Get summary of plans and benefits

Review your Social Security Statements
◦ Visit www.ssa.gov

Married couples need to know about each
other’s retirement plan
◦ Get understanding of waivers and consent
forms for spousal disperses and incomes
10

Consider health
coverage prior to
retirement

Stay informed
about changes to
health coverage and
benefits

Be honest with
yourself and
spouse/partner
11

Consider future home
site and cost of living

Capital gains are
excluded

Save annual leave

Consider retirement
date- 3rd of month

Mentally adjust to
receiving one payday a
month
12

Start adjusting to retirement
 Develop hobbies
 Take long trips
 Volunteer
 Home projects
 Get involved with local
government
 Attend town hall meetings
 Spend time with family
and APLUS
13