Your retirement journey

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1 Your retirement journey Shifting gears from saving for it to living in it! Retirement is exciting, unchartered territory for pre-retirees. Be ready with a retirement income plan for life.

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3 Knowing what s ahead keeps you in the driver s seat Along the road to retirement, there are many important decisions to make to help ensure you get to where you want to go. Some decisions can be made only once and there s no turning back. I can help you get on track and stay focused on reaching your long-term goals. Entering retirement with a well-thought-out financial plan is key to reaching your goals. But with so much going on in your life right now, where do you find the time and energy to give it the attention it deserves and where do you begin? As your financial advisor, I m ready to help guide you through a clear and thoughtful process designed to align your real numbers with your real retirement goals. Together we ll create an effective, straightforward income plan to help you live a comfortable and secure retirement. I ll work with you to: Define your retirement needs, wants and wishes. Determine how much money you ll need to get there. Invest and help protect your savings for the long haul. Retirement is different today It used to be that the typical working American could rely on an employer pension along with Social Security and personal savings to fund retirement. Financial advisors sometimes refer to this as the three-legged stool. But today, for many of us the pension leg is a thing of the past. It s far more likely for employers to offer a defined contribution plan such as a 401(k), a 403b, or a 457 in place of a pension. While these can be excellent savings vehicles, they are subject to various risks such as market risk. If your employer doesn t offer a traditional (defined benefit) pension plan you re not alone. As of 2011 only 14% of private-sector participants in an employment-based retirement plan had a pension plan 1. In some workplaces, a pension plan is still offered but its future may be uncertain. A financial plan can help stabilize a wobbly stool Employee Benefit Research Institute I 01

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5 Take the wheel. Start moving. Weighing your Social Security options For most of us, Social Security is the foundation of a retirement income plan. But making the decision on when to retire and when to begin collecting your Social Security retirement benefit are two separate decisions, because the longer you can wait to collect up to age 70 the bigger your monthly benefit is likely to be. Together, we can walk through the various Social Security scenarios to help you understand your options and how to maximize your benefit. And, we ll look at possible ways to use your retirement savings to provide income if you decide to retire but want to delay collecting your Social Security benefit. Converting retirement savings to retirement income can be a complex process Turning your hard-earned savings into a reliable income stream for life can be complicated there are many important decisions to make and factors to consider. But it doesn t have to be overwhelming. I can help you with a goals-based planning approach. We ll focus on funding your needs, wants and wishes with holistic, personalized planning that includes all of the resources you may have available, such as Social Security, IRAs, investments, retirement plan savings, business succession planning, insurance etc. as well as taking into account any future liabilities. Together we ll determine if you re on track, behind or ahead to reach your goals in retirement. We ll also talk about the wide range of potential risks you may encounter in this stage in life, including: Running out of money Increased living expenses Market fluctuations Unplanned expenses Rising health care costs Possible tax rate increases and how your retirement income plan may help you prepare for them. Getting and staying organized is key to retirement planning success. I can help you with a 5-step holistic approach toward a more financially secure retirement. I 03

6 Aligning your goals with your needs, wants and wishes Everything about your lifestyle as a retiree can be grouped into needs, wants and wishes. Needs Your needs are the lifestyle basics and foundation for your retirement. They cover what you d expect food, clothing, shelter and health care; followed by safety, transportation, an emergency fund and such. Without these things, few other goals matter. Here are the steps to your plan. Wants Here s where you think about the nice-to-haves. Transportation is a need, but having a really nice car is a want. Wants include things like vacations and travel; major purchases such as a sail boat, hot tub or lake house; special events and opportunities like a child s wedding or helping a child or grandchild pay for college, etc. Wants may also include charitable giving. Wishes Wishes are the things you dream about and hope to achieve, such as leaving a legacy to children, grandchildren or a favorite charity. WISHES WANTS NEEDS 04 I

7 1. Engage Create a vision of what retirement means to you. The first step is to identify and rank your needs, wants and wishes for this stage in life. We ll evaluate your current situation along with your goals, feelings, future aspirations and family dynamics. The goal is to create a retirement income plan that works to provide for as many of your needs, wants and wishes as possible. 2. Explore Assess your financial situation and goals. In this phase we ll evaluate what you have, what you owe, and what you spend. I ll assist you in developing three things a household balance sheet, an income statement, and an expense statement. In retirement, falling short of meeting a given income goal means you may not be able to fund some of your wants or wishes, or you may even run out of money. Many retirees are very concerned about making their savings last. My goal is to help you feel confident that your plan will take you to and through retirement with a lifetime income stream that you and your spouse or partner cannot outlive. 3. Design Design a plan for your unique situation. Based on the information you provide in the first two steps, I ll analyze your current financial situation and project it to a future state to create a plan. These calculations will include these key considerations: Life expectancies Increased living expenses (inflation) Market fluctuations (investment returns and sequence of returns) Unplanned expenses (emergency fund) Rising health care costs Possible tax rate increases By running simulations with these considerations, we can calculate the probability of attaining your needs, wants and wishes in different scenarios. Next, I ll design a plan that will include a variety of investments and vehicles that may be combined to convert retirement savings into reliable income sources. We ll discuss the recommendations along with possible alternative strategies factoring in what if scenarios. I ll combine investment and asset protection options into one overarching plan that takes into account tax ramifications and will best suite your needs, wants and wishes in retirement. 4. Implement Set your plan into motion. I ll review and explain the recommendations with you and answer your questions. I ll help you complete the necessary paperwork to implement your plan, and will educate you about applying for Social Security and Medicare, as well as requesting distributions from your retirement plans. 5. Manage Manage your plan for the long haul. I ll provide performance reports for your investments, and keep you informed of any changes in regulations or the retirement industry that may impact your investments. We ll discuss your plan together annually, and make adjustments for any significant life changes that may impact it family dynamics, health changes, living arrangements, goals, etc. I 05

8 Next steps You re in the driver s seat. It s your retirement journey make sure you re headed in the right direction. I ll help by mapping out a financial plan so you have a better chance of getting to where you want to go. Our first stop will be to analyze your Social Security options the foundation to your retirement income. Next, we ll complete the Retirement Plan workbook. This is where we lay out all of the pieces to create and implement your personal plan. And from there we ll be off and running! Are you ready to roll? Let s get started. About Voya Financial Advisors Voya Financial Advisors, Inc., the broker-dealer of Voya Financial (NYSE: VOYA), supports a wide range of clients through approximately 2,400 independent financial advisors. With education, financial planning and a broad range of personalized asset accumulation, protection and distribution solutions, Voya Financial Advisors is focused on helping Americans advance their retirement readiness. Voya Financial is a premier retirement, investment and insurance company serving the financial needs of approximately 13 million individual and institutional customers in the United States. For more information, visit For more information, please contact: Voya Financial Advisors, Inc. 909 Locust Street Des Moines, IA VFAMarketing@Voya.com Protection you can trust When you work with Voya Financial Advisors, Inc. and your financial advisor, you have the confidence of knowing that all brokerage execution and technical services are performed by an industry leader Pershing LLC, a subsidiary of The Bank of New York Mellon Corporation. Pershing provides account protection for the total net equity of assets held in custody for your account. Voya Financial Advisors is a member of SIPC, which protects securities customers of its members up to $500,000 including $250,000 for claims for cash. An explanatory brochure is available at In addition to SIPC protection, Pershing provides coverage in excess of SIPC limits from a commercial insurer. Account protection applies when an SIPC member firm fails financially and is unable to meet its obligations to its securities clients, but it does not protect against losses from the rise and fall in the market value of investments. Investments are not guaranteed and are subject to investment risk including the possible loss of principal. The investment return and principal value of the security will fluctuate so that when redeemed, may be worth more or less than the original investment. Neither Voya Financial Advisors nor its representatives offer tax or legal advice. Please consult with your tax and legal advisors regarding your individual situation. Not FDIC/NCUA/NCUSIF Insured I Not a Deposit of a Bank/Credit Union I May Lose Value I Not Bank/Credit Union Guaranteed I Not Insured by Any Federal Government Agency Securities and investment advisory services offered through Voya Financial Advisors, Inc., member SIPC I.G 2015 Voya Services Company. All rights reserved _IAR_6/2016 Voya.com