Plan for Your Future. Focus on Today. SM Planning for Your Financial Future Dino Kallenekos UBS Financial Services 1285 Avenue of the Americas New York, NY 100019 212-713-9250 [email_address] www.ubs.com/team/kmfinancialgroup
Americans are living longer in retirement . . . Probability 100% 75% 50% 25% 100 95 90 85 80 75 70 65 78 81 86 85 88 91 91 93 96 Probable life span of a person age 65 Age Male Female At least one spouse Source: Annuity 2000 Mortality Tables
Much of retirement funding will come from you Source: 1 Social Security Administration 2 Economic Policy Institute, “Retirement Insecurity,” September 2006 Social Security as a percentage of retirement income 1 Households with defined benefit pensions 2 Households with defined contribution plans 2 (401(k), 403(b), 457) 65% 40% 22% 40% 19% 55% Today 1983
Meeting the retirement planning challenge Assumptions: Based on $4,000 annual contributions. Jack begins saving at 25 and then stops at age 35. Jill begins at 35 and continues to age 60. Both earn 7%. Example does not take charges, taxes, commissions, fees or expenses into consideration. The power of saving early Jack Jill $320,950 $270,705 25 30 35 40 45 50 55 60
Use time to your advantage Assumptions: $4,000 annual contributions for 25 years at 7% annual interest and 30% tax rate.* * Example does not take charges, commissions, fees or expenses into consideration. The power of tax-deferred savings $197,525 $219,495 $270,705 Taxable Account Tax-Deferred Account Before Taxes After Taxes
Determine your retirement needs through financial planning Step 1: Define your retirement vision Step 2: Itemize potential expenses Step 4: Analyze current financial situation Step 3: Identify your assets and income Step 6: Adjust strategy to pursue your vision Step 5: Uncover possible shortfalls Financial Planning
The education funding challenge Projected Cost of a 4-Year Education Source: College Board 2006-2007 data with 6% school cost inflation and 7% investment rate of return projections. $159,779 $119,396 $74,911 4-Year Cost Public University $313 $397 $882 Required Monthly Savings $742 $942 $2,092 Required Monthly Savings $379,182 $283,347 $177,775 4-Year Cost Private University Infant 5 13 Child’s Current Age
Sustaining your life’s achievements An estate plan can give you the comfort of knowing that the people you care about will be provided for and that your estate will be managed according to your wishes. We spend time with you to understand your needs and concerns and support you in making key financial decisions. Whom do you want to inherit your assets? Who should succeed you as owner of your business? What is your potential estate tax liability—and how will you fund it? Who do you most trust to manage your affairs if you become unable to do so? What kind of trust structures should you consider for your family? If you wish to sell assets, what is the best way to structure a sale to minimize the tax impact? Through an understanding of your preferences, we can work with your other professional advisors and together identify potential estate planning strategies. UBS Financial Advisors are not estate planners. None of UBS Financial Services Inc., UBS Trust Company, N.A., or their respective employees or affiliates provide tax or legal advice. You must consult your tax and legal advisors regarding your particular situation.