Prepare to ride the financial wave the rest of your life

Prepare to ride the financial wave the

rest of your life Presented by

Floretta E.Reed

265H NATIONAL A-PLUS CONVENTIONAPRIL 2013 1

How do you get started?Determine the amount needed (short & long term

goal)

Deduct a certain amount from your payroll or checking account monthly to your savings or money market account.

When you receive raise, save it.

When you receive money, save it.23rd NATIONAL APLUS CONVENTION 2

Develop a BudgetWrite down all of your expenses for the month,

then write down all the money you spend in the month ( you’ll be surprise at how much money you spend unnecessarily).

Develop a budget based on your needs, not your wants.

Pay your self first

Stick to the budget 23rd NATIONAL APLUS CONVENTION 3

What is your greatest fear regarding your

finances?

▪ Running Out of Money

▪ Inability to Maintain Standard of Living

▪ Health Care

The unexpected

Set GoalsMaximize Earnings Eliminate Credit Card Debt

◦ Begin with highest interest rate◦ Go to next highest until all are paid off◦ Put that money into your savings

529 Plan for Children & Grandchildren’s College

TaxesMaximize your Thrift Savings (Do not

touch until retirement Penalties

5

Savings and Investment Plan

When your reach your savings goals

Invest Variable Annuities/Mutual funds

Learn about the financial system

Invest in the stock market.

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7

Death Benefit$100,706.29

Total Activity$72,332.25

Estimated Protected

Withdrawal Value

$103,578.66

Surrender Value

$94,034.04

Percentage Increase Over 2 Yrs.

= 43.1%

Average Annual

Return for 2 Yrs = 21.6%

23rd NATIONAL APLUS CONVENTION 8

Life Insurance PlansTerm Insurance Plans

Universal Life Plans

Whole Life Plans

FEGLI & Alternative Comparison$250,000 Coverage

AgeFEGLI

PremiumAlternative Premium

Male Female 40 $ 32.50 $ 33.69 $ 28.0045 $ 48.75 $ 51.63 $ 40.2550 $ 75.83 $ 75.03 $ 56.8855 $151.67 $ 89.91 $ 81.8160 $325.00 $142.84 $142.34

Post-Retirement SavingsBasic Coverage - assuming a basic salary of $50,000.00 at age 55

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

Alternative Plan For $50,000.00Male Female

Age 55 $76.46 $64.57

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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 incomes12

Consider health coverage prior to retirement

Stay informed about changes to health coverage and benefits

Be honest with yourself and spouse/partner

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Consider future home site and cost of living

Capital gains are excluded

Save annual leave Consider retirement date-

3rd of monthMentally adjust to

receiving one payday a month

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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 APLUS15