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The WNA RoaDMAP sm

The WNA RoaDMAP sm. Providing Direction for Your Retirement Journey. The WNA RoaDMAP sm. Retirement is defined as “the time after having stopped working.” This addresses “what” retirement is. but…. The WNA RoaDMAP sm. Are you prepared to address the “when” and “how” of retirement?

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The WNA RoaDMAP sm

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  1. The WNA RoaDMAPsm Providing Direction for Your Retirement Journey

  2. The WNA RoaDMAPsm Retirement is defined as “the time after having stopped working.” This addresses “what” retirement is. but…

  3. The WNA RoaDMAPsm Are you prepared to address the “when” and “how” of retirement? If not….. I

  4. The WNA RoaDMAPsm etirement R D M A P istribution anagement oa sm ction lan

  5. The WNA RoaDMAPsm The WNA RoaDMAPsmsystem provides the guidance you need to set your retirement journey on the right course.

  6. The WNA RoaDMAPsm Retirement will cause a shift in your lifestyle. It will also cause a shift in your investment strategy… Changing the focus from accumulation to distribution of assets.

  7. The WNA RoaDMAPsm When is the best time for me to retire? Do I have enough assets to retire? How do I manage these assets? How do I receive a regular income? Will my assets last my lifetime? What impact will Social Security have on my income?

  8. The WNA RoaDMAPsm When is the best time for me to retire? The best time to retire is when it is right for you. Financially, the longer you delay retirement, the greater your monthly income will be.

  9. The WNA RoaDMAPsm Almost all workers can begin collecting Social Security at age 62. Waiting to collect Social Security until age 70 can increase your monthly check by approximately 7% for each year you delay. Source: US News and World Report

  10. The WNA RoaDMAPsm Do I have enough assets to retire? Depending on how much monthly income you require, we can help determine if you have enough assets to generate this income stream.

  11. The WNA RoaDMAPsm As a general rule, your assets should be about 25 times the amount of annual income you require in retirement. For example, if you seek an income of $50,000 annually, you need approximately $1,250,000 in financial assets.

  12. The WNA RoaDMAPsm This translates into a portfolio withdrawal rate of 4% per year. The RoaDMAPsmsystem starts with a standard rate of 4%, which is generally accepted as the “safe” withdrawal rate for long retirements.

  13. The WNA RoaDMAPsm Depending on a variety of factors, the 4% withdrawal rate could be increased to as much as 6.5% or more per year.

  14. The WNA RoaDMAPsm How do I manage these assets? You need to have an overall portfolio that is designed to provide downside protection but can still allow for moderate growth.

  15. The WNA RoaDMAPsm A 60/40 asset allocation is used for your investment accounts. This represents a portfolio which is comprised of approximately 60% equities and 40% fixed-income securities. Your assets will be segregated into separate accounts that each have a specific objective.

  16. The WNA RoaDMAPsm In addition, a WNA Cash Management Account is created, funded by assets from your investment account. The amount initially held in this account represents 3 years of living expenses.

  17. The WNA RoaDMAPsm Why 3 years? Provides minimal risk of loss of principal Allows you to “ride out” market volatility

  18. The WNA RoaDMAPsm How do I receive regular income? Funds from the WNA Cash Management Account will be withdrawn and credited to a checking account of your choice. You may receive the income on a monthly basis, or less frequently, depending on your preference.

  19. RoaDMAPsm Route WNA Trust Acct WNA IRA WNA Joint Acct 60/40 Split WNA Cash Management Account External Client Checking Monthly

  20. The WNA RoaDMAPsm Each year, the amount of monthly income will be increased by the Consumer Price Index (CPI) to keep your buying power intact.

  21. The WNA RoaDMAPsm Why adjust the income to inflation? History tells us that since 1916, inflation, as measured by CPI, has: Averaged 3.5% per year. Been present in all but 11 years. Source: “But What If I Live?” , Dr. Gregory Salsbury, Ph.D

  22. The WNA RoaDMAPsm What does this mean? Assuming $50,000 a year to live on today, and a 3% annual inflation rate, you will need more than double that amount or $101,640 in 25 years to maintain the same lifestyle.

  23. The WNA RoaDMAPsm Will my assets last my lifetime? Using the withdrawal rate of 4%, (increased annually for inflation) the RoaDMAPsm system should meet your income needs for approximately 30 years.

  24. The WNA RoaDMAPsm A current 65-year old man has a life expectancy of 17 years. 18% of these men will reach 90. A current 65-year old woman has a life expectancy of 20 years. 29% of these women will reach age 90.

  25. The WNA RoaDMAPsm What impact will Social Security have on my income? Social Security will be a supplemental source of income. There are two key factors that determine the amount you will receive upon retirement.

  26. The WNA RoaDMAPsm The First Factor: The amount of wages and salary you and your spouse paid into the Social Security System during your working years.

  27. The WNA RoaDMAPsm The Second Factor: The age at which you elect to begin receiving distributions. At 62, your benefits will be reduced by 25% from the benefit you would have received at age 66. Conversely, at age 70, your maximum benefit will be 132% of what you would have received at age 66.

  28. The WNA RoaDMAPsm In addition, there are other strategies to be pursued, if married or divorced. WNA Wealth Advisors, Inc. can assist you in evaluating your options to ensure that your benefits are maximized.

  29. The WNA RoaDMAPsm On-Going Services • Long-Term Care Insurance • Life Insurance • Disability Insurance • Gifting • Estate Planning • Social Security Advice

  30. The WNA RoaDMAPsm • Expertise • Experienced Team of Professionals • Responsive Service • Well-Established and Workable Investment Strategies

  31. Employment Ends. Retirement Begins. Your Paycheck Continues. You Enjoy.

  32. The WNA RoaDMAPsm Disclosure Page The preceding information is not a complete analysis of every material fact concerning any market, industry or investment. Data has been obtained from sources considered to be reliable, but WNA Wealth Advisors makes no representations as to the completeness or accuracy of such information. Diversification does not assure or guarantee better performance and cannot eliminate the risk of investment losses. Performance data quoted represents past performance and does not guarantee future results. The investment return and principal of an investment will fluctuate so that, when redeemed, may be worth more or less than the original cost.

  33. The WNA RoaDMAPsm Happiness is a dividend on a well-invested life. Duncan Stuart Thank you for your time and attention in viewing this presentation.

  34. The WNA RoaDMAPsm Managing Portfolio • Diversification • Rebalancing • Bond Maturity Laddering • Goal: Smooth out investment performance and yield higher returns

  35. The WNA RoaDMAPsm Employment Ends. Retirement Begins. Your Paycheck Continues. You Enjoy.

  36. Continuing Service • Assistance with • Long-term care insurance • Life insurance • Disability insurance • Advice regarding • Gifting • Estate planning strategies and desires

  37. The WNA RoaDMAPsm Do I have enough assets to retire? The amount of assets you have will be used to generate a monthly stream of income for you. Your lifestyle and spending will determine how far the money will go.

  38. The WNA RoaDMAPsm As a general rule, you should have 25 times the amount of annual income you seek in retirement. For example, if you seek an income of $50,000 annually, you need a total of $1,250,000 in assets.

  39. The WNA RoaDMAPsm Back-testing Withdrawal Rates on Indexes 25 Rolling 25-year periods from 1959-2007 100% Equities 60% 40% 50% 50% 40% 60% 100% Bonds 40% 60% 100% Bonds 4% Withdrawal rates 5% 6% Based on hypothetical $100,000 initial investments in the Ibbotson Large Company Stock Index as measured by the S&P 500 Composite Index) and/or the Ibbotson Lon term Corporate Bond Index (as measured by the Citigroup Long Term High Grade Corporate Bond Index), portfolio rebalanced annually, with monthly withdrawals totaling 45, 5% and 6% annually, increasing 4% each year to account for inflation, over rolling 25-year periods from 12/31/1958 to 12/31/2007.

  40. The WNA RoaDMAPsm Structuring • Developing a portfolio that generates a steady stream of income • Providing cash reserves to avoid liquidation in market downturns • Maximizing tax efficiency

  41. For example, assume that a worker qualifies for full benefits of $1,600 a month at the age of 66. Now assume this worker elects to begin collecting benefits at age 62. The monthly benefit would be reduced by 25%, to $1,200. If that worker were to delay collecting benefits until age 70, the monthly benefit increases to $2,100 per month.

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