Charting Your Course to Retirement
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Transcript of Charting Your Course to Retirement
Charting your course to retirement
Randall & HUrley
Planning Your route
YOUR PROVIDERS WORKING TOGETHER
RANDALL & HURLEY | TPA
INVESTMENT CO| CUSTODIAN SMART Co| INVESTMENT ADVISOR
ABC COMPANY | SPONSOR
Retirement Plans 46%
Social Security 36%
Savings & Investments
16%
Other 2%
Retirement Income sources
PLANNING YOUR ROUTE
Start saving & Stay the course
SAVE TAXES
Use the table to see how it works. You can choose to save taxes now or at retirement
based on how you choose to defer.
Pre-Tax Deferral
Equal Contribution Roth Deferral
Equal Pay Roth Deferral
Gross Annual Pay $30,000 $30,000 $30,000 401(k) Contribution ($200/mo.) 2,400 2,400 2,040 Taxable Income 27,600 30,000 30,000 Federal Income Taxes (15%) 4,140 4,500 4,500 FICA (7.65%) 2,295 2,295 2,295 Net Take-Home Pay $21,165 $20,805 $21,165
HOW TO SAVE $100,000
Number of
Years
Monthly Savings
Required 10 $578 20 $192 30 $82 40 $38
Illustrations assume a 7% annual return.
Time Makes Saving Easier
WATCH IT GROW
0
20
40
60
80
100
120
140
160
180
200
0 10 20 30 40
Tota
l Acc
ount
Val
ue ($
1,00
0)
Years Contribs Earnings
Illustration assume a 7% annual return.
The Miracle of Compound Interest
YOUR PLAN HIGHLIGHTS
YOUR PLAN HIGHLIGHTS
Plan Type: Cash Balance Plan
Trustee: John Smith
Effective Date: January 1, 2012
Retirement Age: Age 62 (with 5 years of participation)
Vesting Percent: 0 - 2 years 0% 3+ years 100%
Investments: Held at Smart Co and directed by the Trustee
Statement Timing: Annually
Questions?