1 / 25

Qualified Plan Participant Review

3Q09. Qualified Plan Participant Review. Presented by: Lawing Financial. Markets Overview. Markets Overview All data as of 9/30/09. Markets Overview. Markets Overview. Markets Overview All data as of 6/30/09. Markets Overview All data as of 6/30/09. Markets Overview

jeanne
Download Presentation

Qualified Plan Participant Review

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 3Q09 Qualified Plan Participant Review Presented by: Lawing Financial

  2. Markets Overview

  3. Markets Overview All data as of 9/30/09

  4. Markets Overview

  5. Markets Overview

  6. Markets Overview All data as of 6/30/09

  7. Markets Overview All data as of 6/30/09

  8. Markets Overview All data as of 6/30/09

  9. Markets Overview All data as of 6/30/09

  10. Markets Overview All data as of 6/30/09

  11. Markets Overview All data as of 6/30/09

  12. Markets Overview All data as of 6/30/09

  13. Markets Overview All data as of 6/30/09

  14. Challenges Participants Experience Dalbar Study conducted from 1986 to 2005 Retirement Plan Investor 6.00% Annual difference between S&P 500 and Systematic/401k Investor Returns: 5.90% Even though the average participant still made the mistakes of buying high and selling low, they out performed the average Equity (lump sum) Investor. Why is that? The answer: The Power of Dollar Cost Averaging The study, done by DALBAR, was one that studied various types of investors, their average returns and the tendencies that they shared and the typical trends that occurred. S&P 500 Equity Investor 11.90% 3.51%

  15. Investing for Retirement

  16. Advantages of 401(k) Investing • Participant control • Amount invested • Asset mix • Ownership of assets • Pre-tax investing • Tax deferral • Tailored investment plan

  17. Sources of Retirement Income 2% 21% 41% 18% • Earned income • Pension • Social Security • Investment income • Other 18%

  18. Most Americans Are Not Saving Enough for Retirement Personal saving rate 1946–2008 12% 10 8 6 4 2 0 1946 1951 1956 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006

  19. Taxes Significantly Reduce Returns1926–2008 10% 9.6% 8 7.5% 6 5.7% 4 3.7% 3.6% 3.0% 2.3% 2 0 Stocks Stocks after Bonds Bonds after Cash Cash after Inflation taxes taxes taxes

  20. Benefits of Deferring Taxes* **Based on a $10,000 Initial Investment, 28% Tax Bracket and 8% Return $250k • Value of taxable account • Value of tax-deferred account 200 150 100 50 0 5 10 15 20 25 30 35 40 45 Years To Retirement

  21. What do you do now? • #1 Golden Rule; Do Not Panic. • Volatility, is now, and always has been a part of the markets. How you react to it will dictate your long-term performance. • Start by reviewing your timetable. • Visit with a Lawing Advisor to review your risk profile, possibly take a new risk questionnaire. • If you are planning on retiring in less than 3 years, be sure to discuss your plans, savings goals and risk profile with a Lawing Financial Advisor.

  22. Thank You for your time!!!!

  23. Disclaimers / Notifications • Lawing Financial Associates and Lawing Financial Group are two separate companies, offering two distinctly separate types of financial products and services. • Lawing Financial Group offers general financial products and services and may receive revenues, including fees or commissions, generated from the sale of these products and services. • Lawing Financial Associates primary focus is offering investment advisory services, including but not limited to, the selection of funds for core funds line-ups, design of investment policy statements, and the specific management of the professionally managed investment models that are made available to individuals and business clientele. • If you are unclear about which role either of these companies serves, we would ask that you directly e-mail Lawing Financial at retirement@lawingfinancial.com • Lawing Financial’s primary client goal is to protect your privacy. • To conduct our regular course of business, we may collect nonpublic personal information from such sources as: • Information reported by you on applications or other forms you provide to us • Information about your transactions with us, our affiliates, or others • Lawing Financial will internally safeguard your nonpublic personal information by restricting access to only those employees who provide products or services to you or those who need access to your information to service your account. In addition, we will maintain physical, electronic and procedural safeguards that meet federal and/or state standards to guard your nonpublic personal information. • Products offered are not deposit or obligation instruments. These products are not insured by the FDIC or any other bank insurance program or federal government agency and are not an obligation of a bank. They are subject to risks, including possible loss of principal and may lose value. • Investment Advisory Services offered through Lawing Financial Associates, Inc. • 11020 King – 4th Floor - Overland Park KS 66210 913.491.6226 • www.lawingfinancial.com

More Related