Transcript of investment-strategies-for-retirement
- 1. Investment Strategies for Retirement Retirement Matters
Presented by Women
- 2. Financial Matters SeriesFinancial Matters Series Financial
Planner Investment advisory services offered through Women &
Wealth - Dallas, a registered investment adviser. This site is
published for residents of the United States only. We only conduct
business with residents of the states and jurisdictions in which we
are properly registered. Women & Wealth - Dallas Reinventing
Wealth Management for Women Susan Iverson, CFP
- 3. About my Background Firm Commitment The information in this
material is not intended as tax or legal advice. It may not be used
for the purpose of avoiding any federal tax penalties. Please
consult a professional for specific information regarding your
individual situation.
- 4. Click to Play
- 5. Retirement: Crucial Considerations How long should
retirement last? How much is it expected to cost? What sources of
income do Ianticipate having? What investment strategiescould help
me?
- 6. How Long Will Retirement Last? Average Life Expectancy
Sources: CDC National Center for Health Statistics, 2013; Society
of Actuaries 2000 Mortality Table 80 55 75 50 70 45 65 40 1900 1910
1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2011 60 years
49.2 years 78.7
- 7. How Much Is It Expected to Cost? Expenses Dreams& Goals
Unique Circumstances
- 8. Estimating the Cost of Retirement
- 9. Retirement Plans Social SecuritySavings & Investments
Potential Sources of Income
- 10. The Long-Term Trend of Aging Source: Department of Health
and Human Services, 2014 40,000,000 20,000,000 35,000,000
15,000,000 30,000,000 10,000,000 25,000,000 5,000,000 20101910 1920
1930 1940 1950 1960 1970 1980 1990 2000 2009 million 3.9 million
40.2 U.S. Population Age 65 and Older
- 11. Source: Bureau of Labor Statistics, 2013; (most recent data
available) Rise & Fall of Retirement Plans 5% 25% 30% 35% 20%
15% 1979 1983 1987 1999 1991 2003 1995 2007 2011 10% Percentage of
Employees Who Participate Defined Benefit Plans (traditional
pensions) Defined Contribution Plans (401(k), 403(b), and 457
Plans
- 12. Retirement Investment Objectives Protect Principal Generate
IncomePursue Growth Mutual funds and variable annuities are sold
only by prospectus. Please consider the charges, risks, expenses,
and investment objectives carefully before investing. A prospectus
containing this and other information about the investment company
can be obtained from your financial professional. Read it carefully
before you invest or send money. Certificates of Deposit Money
market funds Individual bonds Income-oriented mutual funds Fixed
annuities Individual stocks Growth-oriented mutual funds Variable
annuities
- 13. Objective: Protect Principal Certificates of Deposit Cash
Alternatives Money Market Funds
- 14. Watching the Money Flow 1,800 $500 2,000$550 1,600 $450
1,400 $350 1,000 $300 1,200 800$250 Money Market Fund Assets
S&P 500 Sources: Investment Company Institute, 2014, Standard
& Poors Company, 2014. For the period January 1, 2004, to
December 31, 2013. Index performance is not indicative of the past
performance of a particular investment. Past performance does not
guarantee future results. Individuals cannot invest directly in an
index. Actual results will vary. 2004 2005 2006 2007 2008 2009 2010
2012 2013 2011 INBILLIONS
- 15. Objective: Generate Income Individual Bonds Fixed Annuities
Income-Oriented Mutual Funds
- 16. Bond Laddering $10,000 at 1% $10,000 at 2% $10,000 at
2%$10,000 at 1% $10,000 at 2% A D B E C This is a hypothetical
example used for illustrative purposes only. It is not
representative of any specific investment or combination of
investments. Past performance does not guarantee future results.
Actual results will vary. Diversification is an approach to help
man- age risk. It does not eliminate the risk of loss if security
prices decline. Year 1 (matures in 1 year) (matures in 2 years)
(matures in 3 years) (matures in 3 years) (matures in 3 years) Year
2 Year 3 Year 4 Year 5
- 17. Bond Laddering This is a hypothetical example used for
illustrative purposes only. It is not representative of any
specific investment or combination of investments. Past performance
does not guarantee future results. Actual results will vary. $100
$150 $200 $150 $200 $200 $200 $450 1.5% $200 $550 1.83% $200 $600
2% Year 1 Total Year 2 Average Return Year 3 A B D D B C E C C
- 18. Income-Oriented Mutual Funds Mutual funds are sold only by
prospectus. Please consider the charges, risks, expenses and
invest- ment objectives carefully before investing. A prospectus
containing this and other information about the investment company
can be obtained from your financial professional. Read it carefully
before you invest or send money.
- 19. Fixed Annuity Accumulation Phase Premiums Payout Payout
Phase
- 20. Objective: Growth Potential Individual stocks
Growth-oriented funds Variable annuities
- 21. Asset Allocation: The Determining Factor Source: Brinson,
Singer, and Beebower, Determinants of Portfolio Performance II: An
Update, Financial Analysts Journal, May-June 1991. Past performance
does not guarantee future results. Asset allocation is an approach
to help manage investment risk. It does not elimi- nate the risk of
loss if security prices decline. Other factors Overall asset
allocation
- 22. What Investment Strategies Could Help Me? Source: Thomson
Reuters, 2014. Past performance does not guarantee future results.
Actual results will vary. Stocks 20% Bonds 20% Cash 60% Stocks 80%
Bonds 10% Cash 10% Aggressive Portfolio Best Year.........33.3%
Worst Year.....-32.8% Average..........10.1% Conservative Portfolio
Best Year..............16.1% Worst Year...........-12.7%
Average..............5.9%
- 23. The $ 370,000 Difference This is a hypothetical example
used for illustrative purposes only. It is not representative of
any specific investment or combination of investments. Past
performance does not guarantee future results. Actual results will
vary. $ 700,000 Start Year 20Year 10 $ 500,000 $ 300,000 $ 100,000
$ 200,000 $ 400,000 $ 600,000 $681,864 Aggressive Portfolio
$313,509 Conservative Portfolio
- 24. Retirement Investment Strategies
- 25. Financial Matters SeriesFinancial Matters Series
Reinventing Wealth Management for Women Investment advisory
services offered through Women & Wealth - Dallas, a registered
investment adviser. This site is published for residents of the
United States only. We only conduct business with residents of the
states and jurisdictions in which we are properly registered. Women
& Wealth - Dallas