d. letterman’s top 10 retirement planning checkpoints for educators

D. Letterman’s Top 10 D. Letterman’s Top 10 Retirement Planning Retirement Planning

Checkpoints for EducatorsCheckpoints for Educators

Dr. Joyce CavanaghDr. Joyce Cavanagh

Dr. Cynthia CrawfordDr. Cynthia Crawford

University Outreach and University Outreach and ExtensionExtension

University of MissouriUniversity of Missouri

We have nothing to sell We have nothing to sell youyou

Educators on the faculty of the Educators on the faculty of the University of MissouriUniversity of Missouri

Our job is adult educationOur job is adult education The state is our campusThe state is our campus Unbiased, research based Unbiased, research based

informationinformation

#10. Take Me Out to #10. Take Me Out to the Ball Gamethe Ball Game

Will you be watching the game Will you be watching the game from left field or a box seat from left field or a box seat behind home plate?behind home plate?

How to hit a home runHow to hit a home run www.asec.orgwww.asec.org

#9. Send for Social #9. Send for Social Security Security

Benefits EstimateBenefits Estimate

Social security retirement benefits Social security retirement benefits were designed to supplement were designed to supplement other income sources.other income sources.

Review benefits estimate on Review benefits estimate on regular basis to detect any errorsregular basis to detect any errors

www.ssa.govwww.ssa.gov

#8. When Will You Pay #8. When Will You Pay Yourself?Yourself?

A dollar today is worth ? A dollar today is worth ? tomorrowtomorrow

Time value of moneyTime value of money Consequences of delaying Consequences of delaying

savingsaving Better late than never, but Better late than never, but

better early than late!better early than late!

#7. Taxing Matters#7. Taxing Matters

Tax consequences are only one Tax consequences are only one factor in decision makingfactor in decision making

Principle and gains:Principle and gains:– TaxableTaxable– Tax-deferredTax-deferred– Tax exemptTax exempt

#6. But, I Don’t Have Any #6. But, I Don’t Have Any Money to SaveMoney to Save

No matter how modest your No matter how modest your income, you CAN saveincome, you CAN save

Take our 30 day challengeTake our 30 day challenge If you don’t care about your If you don’t care about your

retirement income who will?retirement income who will?

#5. Retirement Planning #5. Retirement Planning Is More Than MoneyIs More Than Money HousingHousing TravelTravel SocialSocial EmotionalEmotional Transition process - don’t be Transition process - don’t be

taken by surprisetaken by surprise

#4. Time, Not Timing, In #4. Time, Not Timing, In the Marketthe Market

Risk vs. ReturnRisk vs. Return Today is the best Today is the best

day to begin saving day to begin saving

#3. Know Your Benefits#3. Know Your Benefits

Do you and your spouse know Do you and your spouse know about:about:– Disability insuranceDisability insurance– Life insuranceLife insurance– Retirement plan/incomeRetirement plan/income– Health careHealth care– Long term care insuranceLong term care insurance

#2. Life-cycle Financial #2. Life-cycle Financial PlanningPlanning

Early careerEarly career Mid careerMid career Late careerLate career Careful of falling into the Careful of falling into the

“American Way” of debt “American Way” of debt management rather than management rather than managing long term savingsmanaging long term savings

Income

0 10 20 30 40 50 60 70 80 90

Age

Dollars

income

Expenses

0 10 20 30 40 50 60 70 80 90

Age

Dollars

expenses

0 10 20 30 40 50 60 70 80 90

Age

Dollars income

expenses

#1. Define Your Goals#1. Define Your Goals

Think’em and ink’em!Think’em and ink’em! But don’t chisel’em in stoneBut don’t chisel’em in stone Involve family membersInvolve family members

– Individual goalsIndividual goals– Family goalsFamily goals– Put’em where you see’emPut’em where you see’em