What Works Women’s Forum – “Thinking Long-Term” Health & Financial Planning August 17, 2013 Jackie Mitchell Edwards, CIMA®, CRPC® Charles Schwab Independent Branch- Las Cruces, N.M. 141 S. Roadrunner Pkwy, #141C Las Cruces, N.M

1 Create an actionable, realistic investment plan. It’s hard to get somewhere if you don’t know where you’re going. A good plan outlines a concrete set of steps and has a realistic metric for success. Your plan doesn’t have to be complicated. In fact, simple is usually better.

2 Understand your plan, follow it, and adjust it when your life changes. Here are several key factors to help you stick with your plan. Keep them in mind, and they’ll help you succeed. Key factors in your plan’s success: You agree with its underlying assumptions and understand that the average return allows for both up years and down years. You don’t abandon it when the market goes south. You set a realistic amount to save or spend each year. Otherwise, you may fall behind or overspend and get discouraged. You adjust your plan when big changes happen. Getting married, having a baby, changing jobs, losing a spouse, encountering major health issues, or retiring can significantly affect your financial picture and your future goals.

3 Saving and spending rates have the greatest impact on success. You can’t control the markets, but you can control how much you save now and spend during retirement—and that’s the most important factor in achieving your goals. Prioritize your savings goals and be sure to set aside funds for emergencies before you save and invest. Investing can’t do it all. Taking on more investment risk won’t make up for saving too little or spending too much. Even with a well-constructed portfolio, the markets ultimately determine your returns.

4 Your plan: Factors that can take you off track Variation in: 1) Age – You live longer than expected Your longevity Your parents longevity 2) Expenses – Are higher than expected Expenses increase more than anticipated Excessive unexpected expenses or debt- healthcare, long term care, responsibility for grown children or grandchildren Inflation exceeds initial assumptions 3) Income – Income and/or assets are lower than expected Overly aggressive return assumptions Overexposure to a market adjustment Unexpected reduced Social Security, pension and/or annuity income at the death of a spouse

5 A few common misconceptions about retirement: 1)“I’ve heard I only need 70-80% of my pre-retirement income” 2)“When I retire I’ll be in a lower tax bracket” 3)“I plan to keep working if I do not have enough” 4) “I’ve built up a solid nest egg so interest and dividends will provide all I need in retirement”

6 Conclusion: 1)Create an actionable, realistic plan. 2) Understand your plan, follow it, and adjust it when your life changes. 3) Saving and spending rates have the greatest impact on success. 4) Plan for the unexpected. 5) Don’t kid yourself – This is not rocket science. It is developing a plan, having the discipline to stick to it and the flexibility to adjust it when “life happens”.

Move forward confidently – with a personalized, in-depth plan. Thank you!