PLANNING FOR A SUCCESSFUL LIFE

Presented by

Floretta E.Reed

245H NATIONAL A-PLUS CONVENTIONAPRIL 2012 1

What is your greatest fear in retirement?

▪ Running Out of Money

▪ Inability to Maintain Standard of Living

▪ Health Care

Set GoalsMaximize Earnings to Maximize

Retirement BenefitsEliminate Credit Card Debt

◦ Begin with highest interest rate◦ Go to next highest until all are paid off

529 Plan for Children & Grandchildren’s College

MedicareTaxesDO NOT TOUCH YOUR MONEY

UNTIL RETIREMENT!!!Penalties

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Thrift Savings Plan

While working, maximize contributions.

After retirement, watch your money.

Why? 2001 and 2008

Invest in Guarantees: Variable Annuities

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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%

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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Life Insurance PlansTerm Insurance Plans

Universal Life Plans

Whole Life Plans

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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 incomes10

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 APLUS13