PLANNING FOR RETIREMENT

Retirement, sooner or later, may bring in excitement or anxiety or both. If you have planned your future properly, you may be excited about having the time to relax and to realize your dreams. If you have not, it may turnout to be a nightmare of anxiety, both financially and emotionally, to deal with the changes that retirement brings. You may have mixed feelings about retirement. If you think back to the times in your life when you made important changes - when you got married, or changed jobs, or bought a house - didn't you have mixed feelings? Retirement will be full of important changes that can be both exciting and frightening at the same time.

So which one you prefer, a retirement full of excitement or anxiety?

How can you feel more confident and less fearful about your retirement?

Focus on your feelings about retirement by asking yourself the following questions:

 As I look ahead to retirement, what do I feel excited about and why?

As I look ahead to retirement, what do I feel anxious about and why?

Are you finding it difficult to find out the answers on your own?

 

We are here to help you out to prepare yourself for a retirement full of excitement, free of cost. Help us to do so by filling out the form below and mail it to us at smartwmg@smartinternationalholdings.com.

 

PART I

 PERSONAL FAMILY BACKGROUND

 

 

Date Prepared: _________________

   

Personal Information

Your Name:                        ______________________________________

Date of Birth:                    _____________________________________________

Passport/ Social Security

or other Identity details:  ________________________________________________

Place of Birth:                 ________________________________________________

 

Spouse’s Name:                 ___________________________________________________

Date of Birth:                   ___________________________________________________

Passport/ Social Security

or other Identity details:     ___________________________________________________

Place of Birth:      ___________________________________________________

 

Dependents

 (1)

Name:                                   _________________________________________________

Date of Birth:                     _________________________________________________________

Passport/ Social Security

or other Identity details:     _________________________________________________________

Place of Birth:                     _________________________________________________________

(2)

Name:                                      _________________________________________________________

Date of Birth:                     _________________________________________________________

Passport/ Social Security

or other Identity details.:     _________________________________________________________

Place of Birth:                     _________________________________________________________

(3)

Name:                                      _________________________________________________________

Date of Birth:                     _________________________________________________________

Passport/ Social Security

or other Identity details.:     _________________________________________________________

Place of Birth:                     _________________________________________________________  

(4)

Name:                                      _________________________________________________________

Date of Birth:                     _________________________________________________________

Passport/ Social Security

or other Identity details.:     _________________________________________________________

Place of Birth:                     _________________________________________________________  

(5)

Name:                                      _________________________________________________________

Date of Birth:                     _________________________________________________________

Passport/ Social Security

or other Identity details.:     _________________________________________________________

Place of Birth:                     _________________________________________________________   

 

 Retirement Satisfaction Exercise

Think for a moment about those retired persons who are enjoying a satisfying retirement. Enter your answers below each question.

1. What is their retirement lifestyle like?

 

2. Do they seem happy? Why?

 

3. Why is their retirement satisfying?

 

4. What did they do before retiring to get ready for retirement?

 

5. How are they different from people you know who seem to have an unsatisfying retirement?

 

General Retirement Planning 

Goal Setting and Action Planning Worksheet

Written goals or aims help make a plan clearer to understand and easier to do. People who write down their goals are likely to reach them. Goal statements should identify WHO will do WHAT and by WHEN.

GOAL STATEMENT:

TARGET DATE:

ACTION STEPS: Write down all the tasks or jobs that need to be done to reach your goal. Indicate WHO will do WHAT by WHEN, for each job you listed.

Example: I will enroll in a pre-retirement planning seminar by April 1st.

REVIEW PROGRESS & UPDATE ON:

Now that you have had a chance to formulate an initial retirement planning goal and identify the actions needed to achieve that goal, press the PRINT button below and add this page to your retirement planning packet. Once the worksheet has printed, press next to continue with the guide.

 

Self-Assessment
Retirement Checklist
Lifestyle Issues

As you approach retirement it is useful to determine what you know, what you've done, and what you need to find out or to do.

Read each of the questions below and check your answer, "YES" or "NO." For each "NO" answer you gave, write down a few words in the space provided to record notes or personal questions about this topic.

1.

Have I looked into activities that will fill my time in retirement?

 

Yes

No

 

2.

Do I know how to locate volunteer jobs in my community?

 

Yes

No

 

3.

Have I considered joining organizations that provide services for people over 55 years of age?

 

Yes

No

 

4.

Do I expect that my family, friends, and former co-workers will make time to socialize with me after I retire?

 

Yes

No

 

5.

Do I use some type of exercise regularly?

 

Yes

No

 

6.

Am I careful to eat balanced meals daily?

 

Yes

No

 

7.

Do I get an annual check-up?

 

Yes

No

 

8.

Have I explored, with others, the options of moving or staying where I am when I retire and considered the various housing alternatives?

 

Yes

No

 

9.

Would my house pass a "safety test" allowing for the needs of a physically limited resident?

 

Yes

No

 

10.

. Would a person 20 years older than myself be able and willing to keep up with my normal household chores and maintenance?

 

Yes

No

 

11.

Have I considered another job following retirement and do I understand the possible impact that working may have on my retirement income?

 

Yes

No

 

12.

Do I have any skills I could develop through education?

 

Yes

No

 

Time Use Analysis Exercise

Enter your answers to the following questions in the spaces provided then press the PRINT button:

In what areas did you use the most time?

 

In what areas did you use the least time?

 

Are there any areas where you did not use much time on your calendar?

 

How would your calendar have looked if you had done this 30 years ago? 20 years ago?
10 years ago?

 

What do you remember about the way you handled big changes in the use of your time 10, 20 or 30 years ago?

 

You probably have a big block of work indicated on your calendar.
Look at the block and answer these questions.

What has work done for you?

 

What does the block of work hours do for, or to, your whole week?

 

What’s going to happen to that block when you retire?

Summary:

Day

Sleep

Family

Personal

Work

Community

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Sunday

Motivational Analysis Exercise

Motivational Analysis Exercise

Whether choosing a new paid or volunteer job, or choosing a different activity for your leisure time, it is helpful to know what motivates you or "makes you want" to do a particular job. Each of the following questions has three choices. Mark the one in each question, which most clearly fits your own motivations. Remember there are no wrong answers. Click in the space before the letter of your choice.

1. 

A.

When doing a job, I seek feed back.

 

B.

I like to work alone and be my own boss.

 

C.

I seem to be uncomfortable when forced to work alone.

 

 

 

 

 

2. 

A.

I go out of my way to make friends with new people.

 

B.

I enjoy a good argument.

 

C.

After starting a task, I am not comfortable until it is completed.

 

 

 

 

 

3. 

A.

Status symbols are important to me.

 

B.

I am always getting involved with group projects.

 

C.

I work better when there is a deadline.

 

 

 

 

 

4. 

A.

I work best when there is some challenge involved.

 

B.

I would rather give orders than take them.

 

C.

I am sensitive to others especially when they are mad.

 

 

 

 

 

5. 

A.

I am eager to be my own boss.

 

B.

I accept responsibility eagerly.

 

C.

I try to get personally involved with my superiors.

 

 

 

 

 

6. 

A.

I am uncomfortable when forced to work alone.

 

B.

I prefer being my own boss, even when others feel a joint effort is required.

 

C.

When given responsibility, I set high performance “standards”.

 

 

 

 

 

7. 

A.

I am very concerned about my reputation or position.

 

B.

I have a desire to out-perform others.

 

C.

I am concerned with being liked and accepted.

 

 

 

 

 

8. 

A.

I enjoy and seek warm, friendly relationships.

 

B.

I attempt to complete involvement in a project.

 

C.

I want my ideas to be selected by others.

 

 

 

 

 

9. 

A.

I desire unique accomplishments.

 

B.

It concerns me when I am being separated from others.

 

C.

I need and have a desire to influence others.

 

 

 

 

 

10. 

A.

I think about consoling and helping others.

 

B.

I am verbally fluent.

 

C.

I am restless and innovative.

 

 

 

 

 

11. 

A.

I set goals and think about how to attain them.

 

B.

I think about ways to change people.

 

C.

I think a lot about my feelings and the feelings of others.

 

 

 

 

 

Personal Needs Inventory Exercise

Part 1  

In making personal choices about work, community service, leisure time activities, or living arrangements, the quality of those choices and the degree of satisfaction gained is improved when individuals develop a clear indication of the values and virtues they feel are personally important.

To help you look at your own values and virtues, complete the following exercise.

In the boxes for "Activities" fill in the activities that you most enjoy. Be as specific as possible. For example do not write down "work." Specify a particular activity at work that you enjoy. Under each activity you have listed, check the "need(s)" met by that activity.

Enter Activities:

Recognition

Entertainment

Creativity

Belonging

Adventure

Learning

Security

Physical Fitness

Self-Growth

Usefulness

Accomplishment

Income

Comfort

Communication

Friendship

Love

Status

Responsibility

 

Part 2 

Work is often a source of satisfaction for personal needs. Therefore, as you consider retirement and future lifestyles, it is important to identify the personal needs that are satisfied through your work, and begin to explore other ways to satisfy them. If current activities outside of work cannot be a source of satisfaction, it is increasingly important to take steps before retirement to find activities that will meet those needs.

Examine your choices in the Personal Needs Inventory and find all needs that are satisfied by specific activities in your work.

List all those needs in the column labeled "My Need." In the second column titled "After Retirement" fill in another current activity that might satisfy the need you have listed in the first column.

NEED

AFTER RETIREMENT

 

 

Support System Analysis Exercise

In the spaces provided below, enter the names of the people who serve the functions indicated. Think of people who provide you with a single special resource. Be sure to consider people that you know in your work place, as well as family and friends.

1. Intimacy:

 

2. Sharing:

 

3. Self-Worth:

 

4. Assistance:

 

5. Guidance:

 

6. Challenge:

 

 

Lifestyle Analysis Exercise

Goal Setting and Action Planning Worksheet

Written goals or aims help make a plan clearer to understand and easier to do. People who write down their goals are likely to reach them. Goal statements should identify WHO will do WHAT and by WHEN. Read about goals in the Goal Setting and Action Planning Section of this online guide before you complete this worksheet.

In the spaces provided, enter a goal statement and action steps related to the general lifestyle issues just discussed.

GOAL STATEMENT:

TARGET DATE:

ACTION STEPS: Write down all the tasks or jobs that need to be done to reach your goal. Indicate WHO will do WHAT by WHEN, for each job you listed.

Example: I will obtain information about ways to spend my post-retirement free time by April 1st.

REVIEW PROGRESS & UPDATE ON:

 

Wellness Analysis Exercise

Wellness Analysis Exercise

Health Style - A Self-Test

This is all about changing lifestyle. Its purpose is to tell you how well you are doing to stay healthy. The behaviors covered in the test are recommended for most North Americans. Some of them may not apply to persons with certain chronic diseases or handicaps. Such persons may require special instructions from their physicians.

 

 

Almost Always

Sometimes

Never

Smoking

 

 

 

 

1.

I never smoke (enter never for next 2 questions).

2.

I usually avoid smoking cigarettes.

3.

I smoke only low tar and Nicotine cigarettes or I smoke a pipe or cigars.

 

 

 

 

Alcohol and Drugs

 

 

 

 

1.

I avoid drinking alcoholic beverages or I drink no more than 1 or 2 drinks a day.

2.

I avoid using alcohol or other drugs (especially illegal drugs) as a way of handling stressful situations or the problems in my life.

3.

I am careful not to drink alcohol when taking certain medicines (for example, medicine for sleeping, pain, colds, and allergies).

4.

I read and follow the label directions when using prescribed and over-the-counter drugs.

 

 

 

 

Eating Habits

 

 

 

 

1.

I eat a variety of foods each day, such as fruits and vegetables, whole grain breads and cereals, lean meats, dairy products, dry peas and beans, and nuts and seeds.

2.

I limit the amount of fat, saturated fat, and cholesterol I eat (including fat on meats, eggs, butter, cream, shortenings, and organ meats such as liver).

3.

I limit the amount of salt I eat by cooking with only small amounts, not adding salt at the table, and avoiding salty snacks.

4.

I avoid eating too much sugar especially frequent snacks of candy or soft drinks.

 

 

 

 

Exercise/Fitness

 

 

 

 

1.

I maintain a desired weight, avoiding overweight and underweight.

2.

I do vigorous exercise for 15-30 minutes at least 3 times a week (examples include running, swimming, brisk walking).

3.

I do exercises that enhance my muscle tone for 15-30 minutes at least 3 times a week (examples include yoga and calisthenics).

4.

I use part of my leisure time participating in individual, family, or team activities that increase my level of fitness (such as gardening, bowling, golf, and baseball).

 

 

 

 

Stress Control

 

 

 

 

1.

I have a job or do other work that I enjoy.

2.

I find it easy to relax and express my feelings freely.

3.

I recognize early, and prepare for, events or situations likely to be stressful for me.

4.

I have close friends, relatives, or others who I can talk to about personal matters and call on for help when needed.

5.

I participate in group activities (such as religious and community organizations) or hobbies that I enjoy.

 

 

 

 

Safety

 

 

 

 

1.

I wear a seat belt while riding in a car.

2.

I avoid driving while under the influence of alcohol and other drugs.

3.

I obey all traffic rules and the speed limit when driving.

4.

I am careful when using potentially harmful products or substances (such as household cleaners, poisons, and electrical devices).

5.

I avoid smoking in bed.

 

 

 

 

 

 

Health and Wellness

Goal Setting and Action Planning Worksheet

Written goals or aims help make a plan clearer to understand and easier to do. People who write down their goals are likely to reach them. Goal statements should identify WHO will do WHAT and by WHEN. In the spaces provided, enter a goal statement and action steps related to the health and wellness issues just discussed.

GOAL STATEMENT:

TARGET DATE:

ACTION STEPS: Write down all the tasks or jobs that need to be done to reach your goal. Indicate WHO will do WHAT by WHEN, for each job you listed.

Example: I will develop an exercise plan by April 1st.

REVIEW PROGRESS & UPDATE ON:

 

Housing Considerations

Goal Setting and Action Planning Worksheet

Written goals or aims help make a plan clearer to understand and easier to do. People who write down their goals are likely to reach them. Goal statements should identify WHO will do WHAT and by WHEN. In the spaces provided, enter a goal statement and action steps related to the housing considerations just discussed.

GOAL STATEMENT:

TARGET DATE:

ACTION STEPS: Write down all the tasks or jobs that need to be done to reach your goal. Indicate WHO will do WHAT by WHEN, for each job you listed.

Example: I will obtain information about taxes in the state of North Carolina , where I am considering moving, by April 1st.

REVIEW PROGRESS & UPDATE ON:

 

Employment Motivation Analysis Exercise

Satisfaction is a very personal feeling. What may be satisfying to one person may be dissatisfying to someone else. When choosing a new job or career it is helpful to know what makes you feel satisfied. Go through this list of reasons for work satisfaction.

Rate these for the job you now hold. Enter three points in the boxes next to your most important concerns, two for your less important, and one point for those that matter the least to you. Then complete this list again, listing what would be most important to you in a job after retirement.

 

CURRENT

RETIREMENT

Chance to help society as a whole

Chance to help other people individually

Chance to meet new people

Opportunity to be part of a team

Opportunity to exercise leadership

Can prove my competence

Can assume responsibility, make decisions

Pushes me to operate at a high energy level

No pressure with deadlines or competition

Gives me recognition

Exercise my reasoning facilities and problem solving ability

Shows immediate results of my efforts

Allows me to create order, set-up systems

Involves social status and prestige

Offers variety, change

Allows for creativity and originality

Provides strong supervision

Allows for independence

Chance to learn and grow

Uses my precision skills

Offers stability, security

Provides me with an audience

Offers a high earning potential

Challenges my abilities

Involves a field that interests me

 

Work Values Inventory Exercise

The Work Values Inventory can help you access your needs and find out what would be important to you in a retirement job. Complete this inventory based on what will be important to you in retirement, not what is important to you now. For example, you may enjoy having a lot of responsibility on the job now, and at the same time, you may be looking forward to having less responsibility once you retire.

Mark the work values in each column that are most important to you. If a value is not important mark the middle box. When looking for a paid job or volunteer work, choose the position that satisfies more of your work values.

IMPORTANCE

 

Very

Moderate

Not

Moderate

Very

 

Work for an organization

Self-employed

Work Alone

Work with people; potential for close interpersonal relationships with co-workers.

Structured environment: definite job descriptions, responsibilities, policies

Unstructured environment work on own initiative; make own decisions, opportunities for creativity

Close supervision

No supervision

Low level of responsibility: no need to make tough decisions

High level of responsibilities: make key decisions, have power and authority

Short Hours

Job responsibilities demand time investment

Guaranteed regular hours

Flex, Temp, or Seasonal Work

Variety of duties every day

Perform similar functions continuously

Work involving risk-taking, and with high degree of challenge/adventure

Work offering security and steady employment

Slow-paced, low-pressure work

Fast-paced, busy every minute, high pressure work

Visible end products; specific achievable goals

Few tangible end products; long-range goals

Work indoors in pleasing and comfortable working environment

Work outdoors in natural environment

Work opportunities in any geographic areas of U.S.

Work concentrated in specific geographic areas

Work for large agency or organization; e.g., government agency

Work for small organization; e.g., family business

Work involves high degree of prestige and status

Work offers low degree of prestige and status

Work offers many opportunities for advancement and professional development

Work offers few opportunities for advancement and professional development

Place of work is near residence

Live 1/2 hour or more from place of work

High level of involvement with machinery

Low level of involvement with machinery

Early Retirement

Opportunity for continued work after age 65

Involves frequent travel

Involves little or no travel

 

Employment Considerations

Goal Setting and Action Planning Worksheet

Written goals or aims help make a plan clearer to understand and easier to do. People who write down their goals are likely to reach them. Goal statements should identify WHO will do WHAT and by WHEN.  In the spaces provided, enter a goal statement and action steps related to the post-retirement employment considerations just discussed.

GOAL STATEMENT:

TARGET DATE:

ACTION STEPS: Write down all the tasks or jobs that need to be done to reach your goal. Indicate WHO will do WHAT by WHEN, for each job you listed.

Example: I will find out if there are any part-time jobs near my home which might match my interests and skills by April 1st.

REVIEW PROGRESS & UPDATE ON:

Financial and Legal Planning

Self-Assessment Worksheet
As you approach retirement it is useful to determine what you know, what you've done, and what you need to find out or to do.Read each of the questions below and check your answer, "YES" or "NO."

For each "NO" answer you gave, write down a few words in the space provided to record notes or personal questions about this topic.

1.

Do I figure out my net worth annually?

 

Yes

No

 

2.

Have I figured out my current income and expenses to work out a budget?

 

Yes

No

 

3.

Have I tried to figure out what my living expenses will be after retirement?

 

Yes

No

 

4.

Will I try to live on my projected retirement income to see how I can keep my standard of living?

 

Yes

No

 

5.

Have I reviewed my insurance policies to see whether they fit my current and future needs?

 

Yes

No

 

6.

Do I understand the various methods available to make my money earn more?

 

Yes

No

 

7.

Do I understand estate exemptions and marital deductions as they apply to my estate?

 

Yes

No

 

8.

Is my will up-to-date?

 

Yes

No

 

9.

Do I understand the impact of joint ownership on my will?

 

Yes

No

 

10.

Am I satisfied with my attorney?

 

Yes

No

 

11.

Do others know where to find all my important papers?

 

Yes

No

 

12.

Am I familiar with my tax status after retirement?

 

Yes

No

   

Cost of Working Exercise

How much does it cost you to go to work?

Enter an estimate for each area in the spaces provided. Be sure to think of all the hidden costs associated with working!

1. Lunches

     $

8. Laundry and Dry Cleaning

     $

2. Coffee Breaks


     $

9. Holidays
(cards, gifts for fellow workers)

     $

3. Transportation


     $

10. Picking Up the Tab
(The times you say "This one's on me.")

     $

4. Union Dues




     $

11. Impulse Buying
(When you pass shops on your way home, or to work, or during lunch hour, how often do you buy something you really don't need?)

     $

5. "Salary" Taxes and Deductions



     $

12. Home Repairs
(How much do you spend on work you could do yourself if you had time?)

     $

6. Work Clothing or Uniforms
(This is only the beginning.) You know of many other office and work expenses - they add up. Now find out these "hidden" expenses.

     $

13. Personal Grooming
(How much extra does it cost you to look good five days a week?)



     $

7. Collections
(When a fellow worker gets engaged, married, has a baby, gets a promotion, gets sick, gets well, celebrates a birthday, retires - isn't someone always making a collection?)

     $

14. Domestic Help
(When your job prevents you from doing all the laundry and housework yourself.)



     $

 

15. Shopping(Because you often lack time to comparison shop and take advantage of sales and "specials," your outlay for food, clothes and household products is higher. How much higher?)

     $

    Net Worth Assessment Exercise

Net Worth Worksheet

Enter an estimate for each area in the spaces provided.

ASSETS
What You Own

LIABILITIES
What You Owe

CASH:

Cash on Hand

$

Checking Accounts

$

Savings Accounts

$

Money-Market Funds

$

Life Insurance Cash Value

$

Money Owed You

$

CURRENT BILLS:

Rent

$

Utilities

$

Charge Accounts

$

Credit Cards

$

Insurance Premiums

$

Alimony

$

Child Support

$

Other Bills

$

MARKETABLE SECURITIES:

Stocks

$

Bonds

$

Government Securities

$

Mutual Funds

$

Other Investments

$

TAXES:

Federal

$

State

$

Local

$

Taxes on Investments

$

Others

$

PERSONAL PROPERTY:

Automobiles

$

Household Furnishings

$

Art, Antiques, Collectibles

$

Clothing, Furs

$

Jewels

$

Other Possessions

$

MORTGAGES:

Homes

$

Other Properties

$

REAL ESTATE:

Homes

$

Other Properties

$

DEBTS TO INDIVIDUALS:

 

$

PENSION:

Vested Company Plan

$

Vested Benefits

$

RRSP

$

Other (1)*

$

( * please specify)

LOANS:

Auto

$

Education

$

Improvement

$

Life Insurance

$

Other (1)

$

Other (2)

$

Other (3)

$

LONG-TERM ASSETS:

Equity in Business

$

Life Insurance

$

Annuities

$

 

 

 

 

 Cost of Living Exercise

Monthly Average

SHELTER

Now

After Retirement

 

 

 

Rent

$

$

Mortgage Payments

$

$

Real Estate Taxes

$

$

Insurance

$

$

 

 

 

HOUSEHOLD MAINTENANCE AND EXPENSES

 

 

 

 

 

House repair, yard work

$

$

Water, electric gas, fuel

$

$

Phone, TV antenna/cable

$

$

Waste disposal, other

$

$

 

 

 

HOME IMPROVEMENT AND UPKEEP

 

 

 

 

 

Furniture, Fixtures

$

$

Floor coverings

$

$

Laundry supplies, equipment

$

$

Kitchen equipment

$

$

Garden, yard equipment, supplies

$

$

 

 

 

AUTO AND TRANSPORT

 

 

 

 

 

Monthy portion of purchase price

$

$

Repairs

$

$

Gas and oil

$

$

License and driver registration

$

$

Insurance

$

$

Other transportation

$

$

 

 

 

FOOD

 

 

 

 

 

Food at home

$

$

Food away from home

$

$

Liquor and food for entertaining

$

$

 

 

 

CLOTHING

 

 

 

 

 

New clothing for all in household

$

$

Laundry not done at home

$

$

Dry cleaning

$

$

Shoe repair

$

$

 

 

 

PERSONAL

 

 

 

 

 

Cosmetics and toiletries

$

$

Barbar and beauty shop

$

$

Smoking supplies

$

$

Stationary, postage

$

$

 

 

 

MEDICAL AND HEALTH

 

 

 

 

 

Medicine and drugs

$

$

Doctor, dentist, eye specialist

$

$

Eyeglasses, hearing aids

$

$

Health insurance premiums

$

$

 

 

 

RECREATION AND OTHER

 

 

 

 

 

Books, newspapers, magazines

$

$

Club memberships, dues

$

$

Movies, sports events, concerts

$

$

Sports and hobby equipment, supplies

$

$

Vacations, celebrations, weekend trips

$

$

Adult continuing education

$

$

Pets: cost, food, license

$

$

Contributions

$

$

Gifts

$

$

 

 

 

TAXES, INTEREST, INSURANCE

 

 

 

 

 

Federal and State income tax

$

$

Personal property tax

$

$

Interest on loans

$

$

Life insurance premiums

$

$

Property insurance (not house)

$

$

 

 

 

SAVINGS, INVESTMENTS

 

 

 

 

 

Banks, savings and loan

$

$

Company pension, profit sharing plans

$

$

Stocks, bonds, real estate

$

$

Retirement: Deferred Compensation, Pension

$

$

 

 

 

ANY FUTURE IRREGULAR EXPENSE

 

 

 

 

 

New roof, new car, new furnace, etc...

$

$

Estimated Annual Income after Retirement Worksheet

Enter an annual estimate for each area in the spaces provided. 

1. Social Security

Man's at age       

$

Woman's at age  

$

4. Earnings

Salary, wages

$

Commissions, royalties, fees

$

Partnership Income

$

2. Pensions and Employer Benefits





Company

$

State or federal government

$

Veteran's

$

Union or other

$

Profit-sharing

$

Deferred pay

$

Other

$

5. Assets which could be liquidated
Profits would then be invested in interest/dividend earning instruments. Interest then becomes part of income. Alternatively, a portion of the principal could be spent per year.

Real Estate

$

Mutual Funds

$

Stocks

$

Bonds

$

Antiques, collectibles

$

Farm/Business

$

Anticipated gifts or inheritance

$

3. Savings and Investments

RRSP

$

Other (1), please specify

$

Savings account (interest)

$

Money market (interest)

$

Treasury securities (interest)

$

Mutual funds (dividends,capital gains)

$

Stocks (dividends)

$

Bonds (interest)

$

Real estate (rent)

$

Farm/business rent or Installment payments

$

Home equity conversion

$

Annuities

$

Other

$

6. Possible deductions from income

Federal income tax

$

State income tax

$

Social Security tax

$

Financial Planning

Goal Setting and Action Planning Worksheet

Written goals or aims help make a plan clearer to understand and easier to do. People who write down their goals are likely to reach them. Goal statements should identify WHO will do WHAT and by WHEN. In the spaces provided, enter a goal statement and action steps related to the financial planning issues just discussed

GOAL STATEMENT:

TARGET DATE:

ACTION STEPS: Write down all the tasks or jobs that need to be done to reach your goal. Indicate WHO will do WHAT by WHEN, for each job you listed.

Example: My spouse and I will create detailed short and long-term budgets by April 1st.

REVIEW PROGRESS & UPDATE ON:

Where My Assets Are Exercise 

One big problem for survivors, when death has occurred, is simply finding all the property and valuable papers of the deceased. You can do your heirs and executor a real favor by filling out this form and giving copies to your spouse, other relatives who might help in settling your estate, any outside executor, and your lawyer. Update this information periodically:

Name:
Retirement System Registration No:
Social Security No:
My valuable papers and assets are stored in these locations (address plus where to look):
A.
Residence:
B. Safe-deposit Box:
C. Other:

Item

Location

Item

Location

 

A

B

C

 

A

B

C

My will (original)

Corporate Retiremnet Plan

Powers of Attorney

Deferred Comp; RRSP

Burial Instructions

Income & Gift Tax Returns

Spouse's will (original)

Titles and Deeds

Safe Combination

Notes, (mortgages)

Trust Agreements

List of Stored Items

Life Insurance

Auto Ownership Records

Health Insurance Policy

Birth Certificate

Homeowners Policy

Military Discharge Papers

Car Insurance Policy

Marriage Certificate

Employment Contracts

Children's Birth Certificates

Partnership Agreements

Divorce/Separation Papers

Checking, Savings, Accts

Other

List of Credit Cards

Brokerage Records

Important Names, Addresses and Phone Numbers

Insurance Agent:
Attorney:
Broker:
Accountant:
Date Prepared: Copies Given To:

NOTE: Please be sure to tell your beneficiary or beneficiaries to contact the Retirement System upon your death to determine what benefits may be due.

 

Legal Planning 

Goal Setting and Action Planning Workseet

Written goals or aims help make a plan clearer to understand and easier to do. People who write down their goals are likely to reach them. Goal statements should identify WHO will do WHAT and by WHEN. In the spaces provided, enter a goal statement and action steps related to the legal planning issues just discussed.

GOAL STATEMENT:

TARGET DATE:

ACTION STEPS: Write down all the tasks or jobs that need to be done to reach your goal. Indicate WHO will do WHAT by WHEN, for each job you listed.

Example: My spouse and I will update our Will and distribute copies by April 1st.

REVIEW PROGRESS & UPDATE ON:

Self-Assessment 

RETIREMENT CHECKLIST
Primary Sources of Income

As you approach retirement it is useful to determine what you know, what you've done, and what you need to find out or to do.Read each of the questions below and check your answer, "YES" or "NO." For each "NO" answer you gave, write down a few words in the space provided to record notes or personal questions about this topic.

1.

Do I understand my annual Retirement Benefit statement?

 

Yes

No

 

2.

Do I understand the impact of accumulated sick and vacation leave on my retirement benefit?

 

Yes

No

 

3.

Am I familiar with how my benefit is figured and what effect that has on my choice of retirement date?

 

Yes

No

 

4.

Do I understand the various pension payments or options available to me?

 

Yes

No

 

5.

Am I aware of how the option payment I choose will affect my survivor’s income?

 

Yes

No

 

6.

Is my spouse and/or beneficiary familiar with my retirement options?

 

Yes

No

 

7.

Do I know when to apply for pension benefits?

 

Yes

No

 

8.

Do I understand my Social Security statement?

 

Yes

No

 

9.

Am I familiar with how Social Security benefits are calculated?

 

Yes

No

 

10.

Am I aware of how survivor benefits are handled under Social Security?

 

Yes

No

 

11.

Do I know what I need to do to apply for Social Security?

 

Yes

No

 

12.

Do I know when to apply for Social Security benefits?

 

Yes

No

Social Security 

Goal Setting and Action Planning Worksheet

Written goals or aims help make a plan clearer to understand and easier to do. People who write down their goals are likely to reach them. Goal statements should identify WHO will do WHAT and by WHEN. In the spaces provided, enter a goal statement and action steps related to the Social Security issues just discussed.

GOAL STATEMENT:

TARGET DATE:

ACTION STEPS: Write down all the tasks or jobs that need to be done to reach your goal. Indicate WHO will do WHAT by WHEN, for each job you listed.

Example: I will request an estimate from Social Security by April 1st.

REVIEW PROGRESS & UPDATE ON:

Self-Assessment 

RETIREMENT CHECKLIST
Insurance Matters

As you approach retirement it is useful to determine what you know, what you've done, and what you need to find out or to do.

Read each of the questions below and check your answer, "YES" or "NO." For each "NO" answer you gave, write down a few words in the space provided to record notes or personal questions about this topic.

1.

Do I know how much my health coverage will cost after retirement?

 

Yes

No

 

2.

Do I know what to do to continue my health insurance coverage when I retire?

 

Yes

No

 

3.

Do I know what effect my unused sick leave credit has on my health insurance costs?

 

Yes

No

 

4.

Do I know why I must vest my health insurance?

 

Yes

No

 

5.

Have I tried to estimate my sick leave credits?

 

Yes

No

 



PART II

RISK PROFILE ASSESSMENT

Our risk profile assessment is based on your risk tolerance and attitude towards risk.  We are presenting below some questions which are easy to understand and will help us evaluate your risk profile.  Kindly fill up the questions and mail them to us electronically.

RISK ANALYSIS- 1

The Expected Utility Hypothesis (Von Neumann-Morgenstern's theory of utility ) and Rational Behavior at work

In economics, rational behavior means that individuals maximize some objective function under the constraints they face. The concept of rational behavior has - in addition to making the analysis of your individual behavior a good deal more tractable than a less structured assumption would permit - two interpretations. First, it allows to derive optimal economic behavior in a normative sense. Second, models of rational behavior can be used to explain and predict actual (i.e., observed) economic behavior.

So how do we determine your risk aversion or risk preference behavior. The expected utility theory is as follows:

Suppose that you are risk averse. If you are risk averse, you must derive a greater level of satisfaction from preserving your current income than participating in a gamble whose expected pay-off is zero. For example, consider an investment opportunity with an actuarially fair chance of winning, which will not enhance your future expected income. For example, you have an investment opportunity with a 50% chance of winning $10,000; likewise, there is a 50% probability you will lose $10,000. If you are risk averse, you will never undertake this risk; in fact, if you had to participate in this risky investment, you would be willing to spend money to insure yourself against this risk. So how much would you be willing to pay to avoid risk? Obviously, the more you are willing to pay, the more risk averse you are. This algorithms convert the degree of risk aversion thus obtained from our questionnaire into a unifying risk parameter to apply it to the management of your portfolio. Investing is science!

So let's start out with the following questionnaire.

STEP 1 - RISK ANALYSIS AT CURRENT INCOME

[1]

Estimate your current annual income.

Under $50,000
$50,000 ~ $75,000
$75,000 ~ $100,000
$100,000 ~ $150,000
Over $150,000

[2]

There is a project that requires an initial investment of $10,000. If successful, the project will have a payoff of $10,000. If unsuccessful, you will lose your initial investment. The odds of success are 50:50. Would you invest in this project?

Yes.
No.

[3]

You have decided to invest in the project. However, if you were offered $1,000 to discourage you from investing, would you still invest?

Yes.
No.

[4]

You have decided not to invest in the project. Imagine that you are now forced to invest; however, suppose that you can pay $1,000 to avoid this obligation. Would you invest in the project?

Yes.
No.

[5]

Assume there is a $5,000 insurance policy that has a payoff of $10,000 if the project is unsuccessful. Would you pass up the opportunity to purchase this insurance policy?

Yes.
No.

[6]

You have decided to accept $1,000 in lieu of the right to invest in the project. Now assume that the $1,000 incentive has been reduced to $500. Would you still take the incentive and not invest in the project?

Yes.
No.

STEP 2 - RISK ANALYSIS AT INCREASED INCOME

[1]

There is a project that requires an initial investment of $10,000. If successful, the project will have a payoff of $10,000. If unsuccessful, you will lose your initial investment. The odds of success are 50:50. Would you invest in this project?

Yes.
No.

[2]

You have decided to invest in the project. However, if you were offered $1,000 to discourage you from investing, would you still invest?

Yes.
No.

[3]

You have decided not to invest in the project. Imagine that you are now forced to invest; however, suppose that you can pay $1,000 to avoid this obligation. Would you invest in the project?

Yes.
No.

[4]

Assume there is a $5,000 insurance policy that has a payoff of $10,000 if the project is unsuccessful. Would you pass up the opportunity to purchase this insurance policy?

Yes.
No.

[5]

You have decided to accept $1,000 in lieu of the right to invest in the project. Now assume that the $1,000 incentive has been reduced to $500. Would you still take the incentive and not invest in the project?

Yes.
No.

[6]

Assume there is a $5,000 insurance policy that has a payoff of $10,000 if the project is unsuccessful. Would you purchase this insurance policy?

Yes.
No.

STEP 3 - RISK ANALYSIS AT DECREASED INCOME

[1]

There is a project that requires an initial investment of $10,000. If successful, the project will have a payoff of $10,000. If unsuccessful, you will lose your initial investment. The odds of success are 50:50. Would you invest in this project?

Yes.
No.

[2]

You have decided to invest in the project. However, if you were offered $1,000 to discourage you from investing, would you still invest?

Yes.
No.

[3]

You have decided not to invest in the project. Imagine that you are now forced to invest; however, suppose that you can pay $1,000 to avoid this obligation. Would you invest in the project?

Yes.
No.

[4]

Assume there is a $5,000 insurance policy that has a payoff of $10,000 if the project is unsuccessful. Would you pass up the opportunity to purchase this insurance policy?

Yes.
No.

[5]

You have decided to accept $1,000 in lieu of the right to invest in the project. Now assume that the $1,000 incentive has been reduced to $500. Would you still take the incentive and not invest in the project?

Yes.
No.

[6]

Assume there is a $5,000 insurance policy that has a payoff of $10,000 if the project is unsuccessful. Would you purchase this insurance policy?

Yes.
No.

[7]

You are willing to pay $1,000 to avoid risking $10,000. If you had to pay $2,000 instead, would you invest $10,000 in the project?

Yes.
No.

 

Source: TaraFolio InvestorTM

 

RISK ANALYSIS- 2


  1. My investment is for the long run. The final result is more important than how it is derived.

1. Totally disagree
2. Willing to tolerate variability in return by never loss of capital
3. Willing to endure reasonable amount of annual fluctuation in total return
4. Willing to accept occasional year of negative return in the interest of building capital
5. Agree

  1. Rank the importance of current income

1. Essential and must be known
2. Essential but willing to accept uncertainty about the amount
3. Important but other factors also influence
4. A modest amount is desirable
5. Irrelevant

  1. Rank the amount of decline you could tolerate in a single quarter

1. None
2. A little in a given quarter, but over a year's time the value of my investment, including   income, should not decline
3. Consistency of results is more important than outperforming
4. A quarter or two of decline is the price paid to be invested when the stock market rises
5. Unimportant

  1. Rank the importance of beating inflation

1. Other factors, such as preservation of capital and income, dominate
2.     Answers 2 thru 4 indicate the increasing willingness
3.     to trade the long term potential to beat
4.     inflation in order to meet other needs
5. Essential to increase 'real' value of the investment

  1. Rank the importance of beating the stock market over an economic cycle

1. Irrelevant
2.     Answers 2 thru 4 indicate the increasing
3.     preference for superior results and
4.     decreasing preference for consistency
5. Critical

Risk Tolerance:
Source: Busby and Lipper

 

Investment Style- 1

 

 

Many people are uncertain about what investment options would be best for them. Every investor is unique.

 

Financial goals, current financial situations and investment experience all contribute to one’s individual risk profile.


 

 

Outlined below are the steps you can follow to determine your investor risk profile.
• Complete the following questionnaire in full.
• To determine your score circle the response that most closely matches
your situation/preference. The number located in brackets down the
left-hand margin determines your point value per response.
• Total your score.
• Compare your total score to the various profile ranges described, and
determine your Investor Risk Profile and most suitable investment
choices.

We recommend that this questionnaire be completed whenever your financial or personal situation changes.

 


 

How long before you expect to use the money saved in this plan?

 

(0) Less than 5 years
(10) 5-9 years
(20) 10–14 years
(30) 15–19 years
(40) 20-24 years
(50) 25 and over

 

What is your current age category?

 

(0) Over 60
(5) 56-60
(10) 46-55
(15) 36-45
(20) 26-35
(25) 25 and Under

 

I would use my savings in this plan from time to time to purchase items I require, or to help with unexpected expenses:

 

(0) Yes
(5) Maybe
(10) No

 

Do you have a spouse or partner who is saving for his/her retirement?

 

(0) No
(10) Yes

 

Which of the following best describes your employment situation?

 

(0) Retired or soon-to-be retired
(5) Employed part-time
(10) Employed full-time

 

Which of the following would include your family’s net worth
(asset-liabilities)?

 

(5) Under $50,000
(10) $50,000 to $99,999
(15) $100,000 to $299,999
(20) $300,000 and over

 

What is your annual household income?

 

(0) Under $25,000
(5) $25,000 - $49,999
(10) $50,000 - $74,999
(15) $75,000 - $99,999
(20) $100,000 and over

 

How knowledgeable are you about investing and the various options available?

 

(0) I have no investment experience
(5) I have a basic understanding about investing and have made some
other investments
(10) I have been investing for several years in different types of assets
and have seen market ups and downs
(20) I am a knowledgeable and experienced investor

 

Which of the following statements would you feel most correctly describes your investment philosophy?

 

(0) I cannot accept any loss of principal.
(5) I prefer to invest in safer, lower return investments
(10) I am willing to tolerate some ups and downs in the value of my
investments to achieve overall higher returns in the long run
(15) My main interest is high, long-term returns and I am not concerned
about short-term decreases in my investments

 

I worry about what is happening with my investments:

 

(0) Often
(10) Sometimes
(15) Rarely

 

If the stock market fell by 25% in one month, how would your react?

 

(0) I would want to sell all of my investments
(10) I would just maintain my current holdings
(15) I would buy more

 

 

Investment Style-2

The goal of long-term financial planning is to build an optimal portfolio that meets personal expectations of risk and return. The following set of questions is designed to provide an allocation mix that may be suitable for you.

1.      1. How much in savings have you allocated to achieving long-term investment objectives, i.e. equities, bonds, investment funds, etc. Please enter an amount.

$

 

2.      In the table below, please assign a weight to each asset class (in increments of 5%). Keep in mind that your total must equal 100%.

% of Portfolio         

Cash

%

Bonds

%

Large-cap stocks

%

Growth & technology stocks

%

Foreign investments

%

TOTAL: 100%(must add to 100)

 

3.    What is your investment horizon? In other words, when do you need cash from your current investments (e.g. college tuition, wedding, purchasing a home)?

Less than 1 year

1-2 years

2-5 years

5-10 years

10-30 years

 

4.      What is your primary investment objective?

Preserving capital (cash is king!)

Generating income (outpacing inflation)

Balancing growth and income (the prudent investor)

Achieving growth (retire earlier than planned)

Capturing highest potential returns (Wild, Wild West!)

 

5.      How far does the market have to fall before you re-balance your portfolio? In other words, when would you begin to sell some of your positions?

Less than 5%

Between 5% to 10%

Between 10% to 20%

Between 20% to 35%

Never