Shaping your Financial Future Strategies to Leverage the Benefits of the Local Government System

Who we are…..

Private Sector Retirement Planning Climbing the Mountain to Retirement How much to save? Rate of Return? How Long will I work? Will I run out of Money During Retirement?

Different Game, Different Rules: Your Largest Income Producing Retirement Asset is your LGERS Pension. Your Compensation and Beneficiary selection will have a great impact on your Income. The 401k is typically the largest source of income for Private Sector employees. Your Pension, 401k/457b plus Social Security benefits typically put you in the same tax bracket during retirement. Most Private Sector employees are projecting to be in a lower tax bracket during retirement.

Historic US Marginal Tax Rates

Local Government Retirement Planning ORBIT Statement What is the Relative of Your Pension? Example:Date of Birth 1/1/1960 $125,000Highest 4 years Avg. 30 yearsYears of Service.0185 LGERS Factor Annual Pension:$69, k 3%: $2,312,500

Pension Option Selection Option 1 No beneficiary Option 2 Joint & 100% Option 3 Joint & 50% Member$ 69,756$ 60,408$ 64,740 Spouse0$ 60,408$ 32,370 The Difference between Option #1 and Option #2 is $ 9,348, plus any potential COLA, each year, for the rest of this clients life. If we use the Money Magazine article as an example….This member would need an additional $ 311,600 in their 401k to generate that much income during retirement.

Game Winning Play Calls Touchdown on the 1 st Play: Use Current Savings to Maximize Your LGERS Pension Benefit 2 Point Conversion: Design a Strategy to Use and Spend Tax-Deferred Retirement Accounts (401k, 457b 403b) in order to reduce tax and market volatility Manage the Clock: Consider Future Tax Implications on deciding when and how to take your Social Security benefit Prevent Injuries to Key Players: Protect Your Plan from a Health or Long Term Care issue, Divorce, Bad Debt, College or Weddings from depleting your Savings Create a Winning Dynasty: Leave a Tax Free Legacy to whom you want, when you want, under your terms and conditions

Shaping your Employees Financial Future Strategies to Retain and Reward Your Senior Leadership

Retaining & Rewarding Your Key Employees ORBIT Statement What is the Relative of Your Pension? Example:Date of Birth 1/1/1965 Age 51 $125,000Highest 4 years Avg. 30 yearsYears of Service.0185 LGERS Factor Annual Pension:$69,375 LEO Separation:$33,660 For 11 YEARS

Key For Employee Pension Continues to Grow with Income Increase & Years of Service Separation Allowance is gone at 62 No “loss” of Income and feeling that they have to leave or they are “donating” time Customize Benefit plan For Employer Retain Key, Senior Leadership Smoother Transition Process Use of Separation Allowance funds that you would pay anyway Benefit Plans to Attract New Employees

The Impact of Spiking on the Employer

Potential Spiking Liability Calculator

Retirement is Not a “One Size Fits All” Game