Sample Employee Starter Roadmap

Transcript

1. July 23, 2014 Save for College
2. Welcome to Company 1 Welcome to Company 1 About your plan Your plan allows you to choose among a number of investments which offer different risk and return characteristics. This enables you to choose an investment strategy that you believe is most likely to help achieve your retirement or other investment goals. It is also designed to be an ERISA Section 404(c) plan. This means that because you are responsible for your own investment decisions, plan fiduciaries (representatives at your company and others designated by your employer who are responsible for your plan) may be relieved of liability for any losses that result from your exercise of investment control. You may submit investment instructions using the Internet with your PIN at the Web address: www.boulevardr.com Accessing your account You may submit your investment instructions online or by calling the automated helpline at 1 (800) 555-1234. You will need your personal identification number (PIN) to access the system. If you don't remember your PIN, please: 1. Contact customer service at 1 (800) 555-1234 2. Enter your contract number: 12345 3. Enter your Social Security Number 4. Once confirmed, your PIN will be mailed to you Page 2
3. Starter Roadmap: Are You On Track? Starter Roadmap: Are You On Track? Overview You could be doing a better job of saving to pursue your goals and striving to achieve the future you envision. Based on the calculation results on the following pages which are primarily a result of the data summarized on the second to last page of your Starter Roadmap, you are presently not on track to enjoy a retirement with your basic needs met if you try to fund your financial goals. If you started saving more now and/or downsized one of your more expensive goals, you could potentially enjoy a more comfortable retirement, which could enable you to afford decent health care and an occasional vacation. A little more about your Overview At least one of the goals you selected has a significant expense associated with it and while it may be very important to you, it also means that you'll have less money that you can put toward your retirement savings. This might be one of the reasons you did not get a green light. At least one of the activities you want to pursue in retirement is not going to be cheap and will carry a significant expense. Since your income is high relative to your total savings, you can anticipate needing significant retirement income to maintain your standard of living. Right now, it appears that you won't be meeting your retirement income needs. Page 3
4. Starter Roadmap: Are You On Track? The road ahead You're going to need to make some pretty big decisions on what's important to you, whether that means living a bit more within your means or finding ways to increase your income. You shouldn't have to make huge, life-altering choices, but there is certainly room for improvement when it comes to funding your long-term financial health. Remember, retirement is the one thing you cannot borrow for. Page 4
5. Starter Roadmap: The Next Step To Reach Your Goal Starter Roadmap: The Next Step To Reach Your Goal Your next step If you're really serious about reaching your goals and a financially strong future, here is one action you should consider completing in the next week. First step for Save for College Evaluate the personal importance you place on saving for college. Disclaimer IMPORTANT: The projections or other information generated by Boulevard R regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. The results generated may vary with each use and over time. Certain assets (e.g., exchange-traded funds) carry risks, including, but not limited to, loss in value. These risks are important to consider when investing. Every effort has been made to assure the highest reasonable degree of accuracy in your Starter Roadmap, based on the information you provided. This Roadmap is only as good as the information supplied by you, and if there is incorrect data, this document will reflect these inaccuracies. Due to the changing nature of laws and financial markets this Roadmap will become increasingly inaccurate over time. Please consult a tax or legal advisor prior to implementing any of the recommendations set forth within your Roadmap. This Roadmap is not to be construed as offering investment, legal, tax or accounting advice. The content that is provided is for educational purposes only. Please consult a qualified professional when making financial, legal or tax decisions. This Roadmap should not be interpreted as endorsing or promoting specific investments and consumers should be cautioned to exercise good judgment and diligence when investing. Neither financial advisor nor the service provider are under any obligation to notify you of changes or updates. Partly because your tax returns are not taken into account and your information is not verified through official records or statements, no warranties are made that your Roadmap is 100% complete. A best effort has been made based on the quality and accuracy of the information available. Hopefully, you will benefit from the educational content provided in your Roadmap. Page 5
6. Starter Roadmap: Your Financial Future Starter Roadmap: Your Financial Future How much should you be saving? Based on the information that you provided, the annual retirement income that you will need is approximately1: $110,000/year for the retirement you envision based on the information you provided Counting on receiving $2,300/mo from Social Security and $0/mo in pension In order to strive to reach your goals and enjoy a comfortable retirement with your basic needs met, you should be saving an extra $1,620 each month. In order to pursue your goals and enjoy everything you want to do in retirement, including Travel, Give Back and Family Time, you should be saving an extra $2,200 each month. General tips on saving Here is a general order in which to do long-term savings3: (1) Set up your emergency fund, if not adequate (2) If you have a 401(k)/403(b)/457, save up to the match (3) Save up to the max on your Roth IRA (4) Top off 401(k)/403(b)/457 or other tax-deferred savings account (5) Save in taxable savings What happens if you do nothing? If you continue to save at your current rate, the money you'll have saved up will likely cover your basic retirement expenses until you are 82 years old. To view the calculation's methodology and assumptions, click here 1 Amount in today's dollars based on the data you provided. A detailed financial plan could accurately assess how much you need to save. 3 Your available savings options and their appropriate order may differ. Page 6
7. Starter Roadmap: Your Goals Starter Roadmap: Your Goals Your goals This section will provide you with insights on how you can potentially reach your goals and hopefully fill you in on some things you didn't know. Your goals timeline Your goals, from left to right, are: (1) Invest Better (2) Max Out Ret. Accnt (3) Save for College (4) Accident Insurance (5) Dream Vacation Your goal: Save for College Here's what you said about saving for college: • Presently saving: $1,500 / year • Saved so far: $20,000 • Anticipated college costs: $22,000 / year • Want to pay 100% of those expenses • Planning to send 2 kids to college • Age of oldest child: 10, and youngest child: 7 How much can you afford? At your present savings rate, here's how much you're on track to have saved up for each child's education by the time they start college: $38,637 Page 7
8. Starter Roadmap: Your Goals Since you're planning on contributing $22,000 per year toward your children's education, this is what the build up and draw- down on their college savings is going to look like: Years from now Disclaimer: We are assuming a total return of 4% after inflation. We are also assuming that if there is any debt after a child completes college in 4 years, it is rolled over into a debt instrument such as a student loan. If you would like to review the methodology and assumptions behind the calculation, please click here. You will be taken to a page with details on how the calculation works. It looks like you are on track to have a significant shortfall in trying to meet your goal of saving for college. To bridge the gap, you can adjust the percentage of college expenses you will pay for, apply for financial aid or possibly get a student loan. Page 8
9. Starter Roadmap: Ways To Protect Yourself Starter Roadmap: Ways To Protect Yourself Your financial “Ways to Protect Yourself” Here are some ways that you can play good defense and protect your overall financial well being. The different ways you can financially protect yourself have been organized into three groups based on their potential to have a large long-term negative impact on your personal finances. They are based on the information you provided in the questionnaire you accessed from the Dashboard and are merely for educational purposes. Please consult a financial professional before taking action. Address this now • Consider getting disability insurance to protect your need for income in the event that you are physically unable to work • Consider getting life insurance for the main income earner • Consider creating a plan to pay off your credit card debt • Consider creating a will Address this soon • Consider getting life insurance for the secondary income earner • Consider drafting a health care directive • Consider drafting a health care power of attorney Page 9
10. Starter Roadmap: Your Profile Starter Roadmap: Your Profile Your current profile • Born in 1967, Married or Life Partner • Currently supporting 2 dependents • Business (employee) • Live in the 78718 zip code • Plan to retire at 67 • Earn $95,000 annually, and spouse earns $80,000 annually • Have $550,000 in total savings • Have $35,000 in total debt • Currently saving approximately $1,700 / month • Own a home worth approximately $300,000, and owe approximately $140,000 on the mortgage. • Invested in Mostly Stocks (70% Stocks, 25% Bonds, 5% Cash) • Counting on receiving $2,300 in retirement income from Social Security Page 10
11. Starter Roadmap: Thank You Starter Roadmap: Thank You Thank you Thank you for taking the time to read through your Starter Roadmap. Hopefully, it has been helpful and a good introduction to how you might be able to reach your goals. Jerome's Furniture Jerome's Headquarters 16960 Mesamint St. San Diego, CA 92127 (866) 633-4094 How the calculation works If you would like to review the methodology and assumptions behind the calculation, please click here. You will be taken to a page with details on how the calculation works. Page 11