1. Presented by StanCorp Equities, Inc., member FINRA

2. Retirement on the Brain ® Presented by… [Presenter’s name]
[Presenter’s title]

3. Moving Toward Retirement
on the Brain
Being ready
In this workshop, you will learn how to:
Choose the appropriate investments for
retirement
Decide when to begin taking Social
Security benefits
Manage your money to provide retirement
income
Learn how to help make your money last
Moving Toward Retirement

4. Moving Toward Retirement
on the Brain
Moving in a new direction
This is not your father’s retirement
You have direct control
You convert savings into cash flow
Pension plans:
Defined benefit
Monthly income
Based on formula (salary,
length of employment, etc.)
Retirement plans:
Defined contribution
Savings accumulation
Based on amount contributed
and investment returns
Moving Toward Retirement

5. Moving Toward Retirement
on the Brain
Meeting the longevity challenge
How long will the money last?
How long will the journey be?
The average life expectancy of a 65 year-old man is 83 years; for a 65 year-old woman, it is 85 years.
Source: Social Security Administration
The Society of Actuaries recently increased the top edge of its mortality tables to from 100 to 120 years.
Moving Toward Retirement

6. How Inflation Affects Cost of Living
Retirement
on the Brain
Meeting the inflation challenge
Double-edged sword
Expenses increase
Purchasing power can erode
Extra costs for retirees
Average: 3 percent inflation
With health care: 5 percent
inflation
How Inflation Affects Cost of Living
Four income scenarios for age 65
Annual income needed at age 90
Annual income needed at age 90 to keep standard of living you had at age 65
Two inflation scenarios:
This chart is hypothetical and for illustrative purposes only and is not intended to be a projection of future values of any product.
Moving Toward Retirement

7. Moving Toward Retirement
on the Brain
Choosing the right investments
Strategy
Move toward a more conservative portfolio
Leave room for potential performance
from stock markets
Diversification
Spread investments among asset classes
Keep your retirement timeframe in mind
Moving Toward Retirement

8. Everyday Strategies for Financial Strength
Retirement
on the Brain
Diversifying for retirement
Diversification does not guarantee a profit or ensure against a loss in a declining market. International investing involves certain risks, such as currency fluctuations, economic instability and political developments. These risks may be accentuated in emerging markets. Small-company investing involves specific risks not necessarily encountered in large- company investing, such as increased volatility. Funds that invest in bonds are subject to certain risks including interest-rate risk, credit risk and inflation risk. As interest rates rise, the prices of bonds fall.
Your plan may be funded by a mutual fund trust or a group annuity contract. Both are suitable for long-term investment, including saving for retirement. While annuities generally provide tax-deferred treatment of earnings, the group annuity contract does not provide any additional tax-deferred treatment beyond the treatment provided by your retirement plan.
Everyday Strategies for Financial Strength

9. Retirement on the Brain ® Taking Social Security benefits
If you were born between and 1954, you can receive full (unreduced) Social Security benefits at age 66. 1
Social Security Benefits at Different Ages1
$20, $ $1, $1,824
$30, $ $1, $2,325
$40, $1, $1, $2,823
$50, $1, $2, $3,323
$60, $1, $2, $3,693
$70, $1, $2, $3,923
$80, $1, $2, $4,123
$90, $1, $2, $4,316
$100, $1, $2, $4,477
Current annual income
Age 70
Age 66
Age 622
Approximate monthly benefit based on your age at retirement
1 Based on 2013 average wage index (AWI), cost-of-living adjustment (COLA), and assumed annual earnings since age 22. To estimate your Social Security benefits, use this table, call or visit for a Personal Earnings and Benefit Estimate Statement.
2 Actual minimum age is 62 years and one month for people born in 1951.
Everyday Strategies for Financial Strength

10. Everyday Strategies for Financial Strength
Retirement
on the Brain
Taking withdrawals
At age: 55
No 10% penalty – if you stop working
No 10% penalty, regardless of employment
Required minimum distribution (RMD)
(If you terminate employment or are an owner)
59 ½
70 ½
Taxes – general guidelines
Pay taxes on amount withdrawn (Roth may be an exception)
Lump-sum distribution subject to 20% withholding
(actual taxes may be more or less)
Everyday Strategies for Financial Strength

11. Moving Toward Retirement
on the Brain
Managing your money
Would you prefer to continue investing and managing your own money, or receive regular payments for the rest of your life, regardless of how long you live or what the stock market does?
IRAs and Qualified Plans
You take responsibility for
making your money last
You invest and manage
your money on your own
Fixed Annuities
Take the guesswork
out of withdrawals
Receive regular
payments for life
Moving Toward Retirement

12. Moving Toward Retirement
on the Brain
Managing your money: Qualified plans and IRAs
Leave savings in plan
Roll over funds to another
qualified plan: 401(k), 403(b) or
Governmental 457
Roll over funds to an Individual
Retirement Account (IRA)
Select investment portfolio
Monitor account
Take periodic withdrawals
Money Management
Moving Toward Retirement

13. Moving Toward Retirement
on the Brain
Managing your money: Fixed annuities
Take as a distribution option
(in some plans)
Roll over funds into an
individual retirement annuity
Purchase with after-tax dollars
Single life (straight life) annuity
No payments to spouse or
beneficiary after death
Certain and life annuity
Beneficiary continues receiving
benefits for fixed period
Take periodic withdrawals
Beneficiary continues to receive
benefits for life
Three common types:
Moving Toward Retirement

14. Moving Toward Retirement
on the Brain
Maximizing other income sources
Pensions
Review distribution options
Are benefits inflation-indexed?
Are Social Security benefits affected?
Other savings
Raises
Refunds
Windfalls
Personal property
Real estate
Collectibles, antiques
Moving Toward Retirement

15. Moving Toward Retirement
on the Brain
Protecting your assets
Homeowner’s insurance
• Adequate policy limits
• Special coverage: flood, earthquake, etc.
Valuables
Liability
Health
• Early retirement
• Medicare supplement policy
Long-term care
You’ve worked a lifetime to accumulate assets and prepare for retirement. Help protect them by insuring yourself against loss.
Moving Toward Retirement

16. Moving Toward Retirement
on the Brain
Making up for lost time
Downsize and liquidate – NOW
• Home equity
• Valuables, collectibles
If property and/or collectibles are appreciating faster than the 6 to 8 percent your savings might earn, consider holding on to them for now rather than selling.
Accelerate your saving – NOW
• You can contribute to an IRA even if you
participate in your company retirement plan
Moving Toward Retirement

17. Accumulated Savings in Five Years
Retirement
on the Brain
Accumulating additional savings 1
Accumulated Savings in Five Years
$1,000/month $88, $103,764 $118, $133, $148,459
$500/month $51, $66,780 $81, $96, $111,476
$400/month $44, $59,384 $74, $89, $104,079
$300/month $37, $51,987 $66, $81, $96,682
$200/month $29, $44,590 $59, $74, $89,286
$100/month $22, $37,194 $52, $66, $81,889 .
Savings
$30,000
$20,000
$10,000
$40,000
This chart is hypothetical and for illustrative purposes only and is not indicative of the performance of any specific investment. It assumes an 8 percent rate of return compounded monthly. The investment return and principal value of an investment will fluctuate and an investor’s interest, when redeemed, may be worth more or less than the original investment. Past performance is no guarantee of future results.
$50,000
Beginning Balance
Moving Toward Retirement

18. Moving Toward Retirement
on the Brain
Making your money last
If your full retirement age is 66 and you start receiving benefits at age 62, your benefit would be reduced by 25 percent.
Have a cushion
• “Liquid” savings (cash equivalents)
• Savings equal to three months of living expenses
Extend your benefits
• Defer Social Security benefits
• Defer pension benefits
• Defer retirement plan withdrawals
Withdraw at a safe rate
• 4-5 percent annually: savings likely to last
• Less than 4 percent annually: high probability savings will last
Moving Toward Retirement

19. Moving Toward Retirement
on the Brain
Using online planning resources
AARP
American Association for Long-Term Care Insurance
Annuities, retirement planning, investing
Certified Financial Planner Board of Standards
The Standard’s Personal Savings Center
Social Security Administration
Moving Toward Retirement

20. Moving Toward Retirement
on the Brain
Planning your estate
Take steps to help ensure that your wishes will be carried out when you’re no longer able to manage your own affairs.
Will
• Name heirs
• Create trusts for minors and name trustee
• Name an executor
Advance directives – directions for end-of-life care
Power of attorney – legal/financial representative
Seven Baby Boomers turn age 50 every minute.
Moving Toward Retirement

21. Moving Toward Retirement
on the Brain
Finding a financial planner
There comes a time when it makes good sense to get professional assistance regarding retirement decisions.
Ask about qualifications and credentials
Ask about experience and specialties
Ask about a financial planning approach
Find out about charges and method of payment
Ask for full disclosure of conflicts of interest
Ask for references
Shop around – interview several candidates with solid credentials
Moving Toward Retirement

22. Retirement
on the Brain
Thank you!

23. Retirement on the Brain ®
Employers and plan participants should carefully consider the investment objectives, risks, charges and expenses of the investment options offered under the retirement plan before investing. The prospectuses for the individual mutual funds and each available investment option in the group annuity contain this and other important information. Prospectuses may be obtained by calling Please read the prospectus carefully before investing. Investments are subject to market risk and fluctuate in value.
The Standard is the marketing name for StanCorp Financial Group, Inc. and its subsidiaries. StanCorp Equities, Inc., member FINRA, wholesales a group annuity contract issued by Standard Insurance Company and a mutual fund trust platform for retirement plans. Third-party administrative services are provided by Standard Retirement Services, Inc. Investment advisory services are provided by StanCorp Investment Advisers, Inc., a registered investment advisor. StanCorp Equities, Inc., Standard Insurance Company, Standard Retirement Services, Inc. and StanCorp Investment Advisers, Inc. are subsidiaries of StanCorp Financial Group, Inc. and all are Oregon corporations.
RP GP-PPT (4/13)