Retirement Planning: It’s Never Too
Soon – or Too Late – to Start
AFN5600
Today We Will Help You:
• Examine “retirement.”
• Determine your goal.
• Learn about investment tools.
• Develop an investment strategy to better pursue your goal.
Retirement:
Then and Now
Then ...
• Job longevity meant retirement security.
• On average, people had shorter life expectancies.
• That may have meant lower health care costs and lower retirement
income needs.
Now ...
• Changing jobs is more common.
• Medicare and Social Security have an uncertain future.
• Health care and long-term care cost more.
• People live longer.
Your Hopes and Dreams for Retirement
• Retirement is closer than you think.
• What’s on your wish list? Perhaps travel, a vacation home, or
education?
• Your desired lifestyle will determine your income need.
Consider the Inflation Factor
Source: Bureau of Labor Statistics. Inflation is measured by the annual change in the Consumer Price Index.
How Much Is Enough?
Experts say you may need 60% to 80% of your final working
year’s salary each year during retirement.
Average Annual Social Security Benefits
$24,576
$15,132
Retired Workers
Retired Couples
Source: Social Security Administration, Fact Sheet, Social Security, 2013 Changes, October 2012.
How Do You Pursue Your Goal?
• Use tax-advantaged accounts.
• Invest, invest, invest.
Use Tax-Advantaged Accounts
• 401(k) Plans
• IRAs
Invest! Invest! Invest!
• A strategy is key.
• Complete worksheets.
There Are Three Basic Asset Classes
Stocks average
annual return:
10.81%*
Bonds average
annual return:
8.10%*
Money Market
Instruments
average annual
return: 4.48%*
High
Stocks
Risk/Return
Potential
Bonds
Money Market
Instruments
Low
*Sources: Standard & Poor’s; the Federal Reserve. Stocks are represented by Standard & Poor ’s Composite Index of 500 stocks, an unmanaged index generally considered representative of
the large-cap U.S. stock market. Results include reinvestment of dividends and other investment income. Bonds are represented by Barclays U.S. Aggregate Bond Index. Money market
instruments are represented by Barclays 3-Month Treasury Bill Index. Results are for the 30-year period ended December 31, 2012. The performance of any index is not indicative of the
performance of a particular investment and does not take into account the effects of inflation or the fees and expenses associated with investing. Past performance cannot guarantee future
results. Individuals cannot invest directly in any index.
Understand Your Risk Tolerance
• Realize your time horizon.
• The longer the time frame, the more aggressive you may
want to be.
Conservative Mix
Conservative
Bonds
Average Annual
Rate of Return —
8.45%*
50%
30%
20% money market
instruments, 50%
bonds, 30% stocks
Stocks
20%
Money Market Instruments
Past performance cannot guarantee future results.
*All figures represent performance for the 30-year period ended December 31, 2012. Stocks are represented by the annual total returns of the S&P 500, bonds are represented by the Barclays
U.S. Aggregate Bond Index, and money market instruments are represented by the Barclays 3-Month Treasury Bill Index. This illustration is not intended to represent the past or future
performance of any specific investment. Asset allocation does not ensure a profit or protect against a loss.
Moderate Mix
Moderate
Average Annual
Rate of Return —
9.66%*
10% money market
instruments, 30%
bonds, 60% stocks
Stocks
60%
30%
10%
Bonds
Money Market
Instruments
Past performance cannot guarantee future results.
*All figures represent performance for the 30-year period ended December 31, 2012. Stocks are represented by the annual total returns of the S&P 500, bonds are represented by the Barclays
U.S. Aggregate Bond Index, and money market instruments are represented by the Barclays 3-Month Treasury Bill Index. This illustration is not intended to represent the past or future
performance of any specific investment. Asset allocation does not ensure a profit or protect against a loss.
Aggressive Mix
Aggressive
Average Annual
Rate of Return —
10.10%*
10% money market
instruments, 10%
bonds, 80% stocks
Money Market
Instruments
10%
80%
Stocks
10%
Bonds
Past performance cannot guarantee future results.
*All figures represent performance for the 30-year period ended December 31, 2012. Stocks are represented by the annual total returns of the S&P 500, bonds are represented by Barclays
U.S. Aggregate Bond Index, and money market instruments are represented by Barclays 3-Month Treasury Bill Index. This illustration is not intended to represent the past or future
performance of any specific investment. Asset allocation does not ensure a profit or protect against a loss.
Your Current Savings
• How much have you already saved?
• How much might it be worth?
Your Monthly Savings Goal
• Is it too high?
• Consider adjusting your investment mix.
Retirement Planning
Questions and Answers
Investment options are offered through a group variable annuity contract (Forms 902-GAQC-09 or 902-GAQC-09(CT) or 902GAQC-09(OR)) underwritten by United of Omaha Life Insurance Company for contracts issued in all states except New York.
United of Omaha Life Insurance Company, Omaha, NE 68175 is licensed nationwide except in New York. Companion Life
Insurance Company, Hauppauge, NY 11788 is licensed in New York and underwrites the group variable annuity (Form 900GAQC-07(NY)). Each company accepts full responsibility for each of their respective contractual obligations under the contract
but does not guarantee any contributions or investment returns except as to the Guaranteed Account and the Lifetime
Guaranteed Income Account as provided under the contract. Neither United of Omaha Life Insurance Company, Companion Life
Insurance Company, nor their representatives or affiliates offers investment advice in connection with the contract.
Specific features of the Lifetime Guaranteed Income Account (Rider Forms 651-GAQR-10 or 651-GAQR-10(CT) or 651-GAQR10(OR)) vary by state. Restrictions apply. The Lifetime Guaranteed Income Account is not available in Nevada or New York.
Group variable annuities are long-term investment vehicles designed to accumulate money on a tax-deferred basis for retirement
purposes. Distributions may be subject to ordinary income tax and, if taken prior to age 59½, a 10 percent federal tax penalty may
apply. Investing in a group variable annuity involves risk, including possible loss of principal.
Prior to selecting investment options for your retirement account, you should consider the investment objectives, risks,
fees and expenses of each option carefully. For this and other important information, you should review your enrollment
materials or the participant website. Read this information carefully.