The amazing race to retirement: Taking financial control in your 30s and 40s. Today s discussion. Life s challenges

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1 The amazing race to retirement: Taking financial control in your 30s and 40s Today s discussion Life s challenges How to prioritize your expenses Importance of saving for retirement Investing basics Take action now Life s challenges 1

2 Where are you now? 20s: Getting started Early 30s: Hitting your stride Mid 30s 40s: Giving it all you ve got 50s 60s: Preparing for the finish line The great balancing act Plan Budget Retirement goals Conversations Prepare Emergency Retirement College Estate planning Protect Health care, long-term care Life insurance Auto and home Challenges of taking care of children and parents 2

3 Prioritize your expenses Importance of a spending plan Track what you spend Discover opportunities to save more Learn to live within your means Prepare for the unexpected Gain control of your money and achieve your goals A little bit goes a long way Per day 5 days per week Per year Spent in 20 years Invested for 20 years* Candy/ chips $1 $5 $260 $5,200 $10,659 Coffee $3 $15 $780 $15,600 $31,976 Lunch $5 $25 $1,300 $26,000 $53,294 *Based on 7% annual rate of return. This example is for illustration purposes only and is not intended to represent the return of any specific investment. Estimates are based on the assumptions noted, do not guarantee or imply a projection of actual results, and do not include the effect of taxes. Wells Fargo cannot guarantee results under any savings or investing program, including a regular investment program, and cannot guarantee that you will meet your retirement savings goal. 3

4 Use online budgeting resources The importance of saving for retirement How much have you saved? 66% of American workers age estimate they will need at least $250,000 1 $50, % have saved less than 69% 2 The majority say they could reasonably save $25 more per week for retirement. 1 Employee Benefit Research Institute, 2016 Retirement Confidence Survey. 2 Employee Benefit Research Institute, 2015 Retirement Confidence Survey. 4

5 Start by doing a calculation 80% income replacement ratio Our online calculators can help Start with your retirement plan You may contribute: Up to $18,000 Additional $6,000 if you are 50 or older Limit does not include employer contributions Plan may have lower limits You may be eligible for Saver s Credit 5

6 Prepare early for a better retirement $135,044 $121,288 Mike Marie Age started contributing Age stopped contributing Monthly contribution $100 $100 Total contribution $12,000 $36,000 Years contributed Value at age 65? Based on 7% annual rate of return. This example is for illustration purposes only and is not intended to represent the return of any specific investment. Estimates are based on the assumptions noted, do not guarantee or imply a projection of actual results, and do not include the effect of taxes. Wells Fargo cannot guarantee results under any savings or investing program, including a regular investment program, and cannot guarantee that you will meet your retirement savings goal. Investing basics Consider how to create your investment mix Asset allocation How you divide your money among stable value/money market investments, bonds, and stocks Bonds Diversification How you divide your money within each asset class Asset allocation and diversification do not assure or guarantee better performance and cannot eliminate the risk of investment losses. 6

7 Investment options Investment approaches Target date funds You choose based on retirement year Fund provides a diversified mix of investments Fund becomes more conservative as target date approaches Other funds You select individual investments You monitor your choices and determine allocation changes if necessary Take action now What is your next step? Create a spending plan Calculate your retirement saving goal Make the most of your retirement plan 7

8 Stay in touch with your plan Sign on to wellsfargo.com or through our app Call our retirement service representatives Your future is created by what you do today, not tomorrow. Thank you Recordkeeping, trustee, and/or custody services are provided by Wells Fargo Institutional Retirement and Trust, a business unit of Wells Fargo Bank, N.A. This information is for educational purposes only and does not constitute investment, financial, tax, or legal advice. This information and any information provided by employees and representatives of Wells Fargo Bank, N.A. and its affiliates is intended to constitute investment education under U.S. Department of Labor guidance and does not constitute investment advice under the Employee Retirement Income Security Act of Neither Wells Fargo nor any of its affiliates, including employees, and representatives, may provide investment advice to any participant or beneficiary regarding the investment of assets in an employer-sponsored retirement plan. Please contact an investment, financial, tax, or legal advisor regarding your specific situation Wells Fargo Bank, N.A. All rights reserved