1. Lesson 13.3 Retirement Plans July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved1 Introduction A retirement plan is simply a saving and investment plan Unfortunately, more people are unable to retire each year Retirement planning is a relatively new concept, but it is absolutely essential You are responsible for accumulating the money you will need after you retire It will take Knowledge, Planning, Hard Work and lots of Time to accumulate the money you will need

2. Lesson 13.3 Retirement Plans July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved2 Objectives Explain why you should first develop your retirement goals You should be able to do the following after completing this lesson! List some common retirement goals Discuss why effective retirement planning is essential Review what retiring early means and requires you to do Identify what all retirement plans are designed to do Determine how much money you will need after retiring List the two primary types of retirement plans Explain how a traditional pension plan works Summarize the three common defined contribution plans Define the key terms introduced in this lesson

3. Lesson 13.3 Retirement Plans July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved3 13.3.1 – Retirement Goals Why setting your retirement goals can be difficult Why your retirement goals can be unique or different What the 1 st step to successful retirement is What should be incorporated into your retirement planning What achieving your retirement goals will require In this Section, you will learn

4. Lesson 13.3 Retirement Plans July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved4 13.3.2 – Retiring Early What is meant by retiring early What it takes to retire before your normal retirement age How long the retirement phase typically lasts When you will have access to your normal retirement funds In this Section, you will learn Early Retirement Exercise You will run the following Interactive Exercise

5. Lesson 13.3 Retirement Plans July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved5 How a retirement plan converts a small sum of money into a much larger sum over time What the basic ingredients necessary to grow your money are What some common retirement plans are How the common retirement plans compare Why it’s important to determine the age at which you will retire What retirement plans are designed to do In this Section, you will learn When you’ll have access to your traditional retirement funds 13.3.3 – Understanding Retirement Plans

6. Lesson 13.3 Retirement Plans July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved6 13.3.4 – How Much Do You Need? Why life is dynamic rather than static How your financial situation can change quickly What happens to your expenses after you retire What factors determine how much money you’ll need after retiring How to estimate how much money is needed In this Section, you will learn How often you should review and adjusted your retirement planning

7. Lesson 13.3 Retirement Plans July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved7 13.3.5 – Types of Retirement Plans In this Section, you will learn What the two major types of retirement plans are What a defined benefit plan is Who funds a defined benefit plan What a defined contribution plan is Who funds a defined contribution plan What some examples of defined contribution plans are What a traditional pension plan is

8. Lesson 13.3 Retirement Plans July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved8 13.3.6 – Traditional Pension Plans In this Section, you will learn What a traditional Pension Plan is What a defined benefit plan is Who funds a defined benefit plan How the benefit amount is calculated How to estimate how much you will receive in benefits What the advantages and disadvantages of a defined benefit plan are Pensions Example You will run the following Interactive Example

9. Lesson 13.3 Retirement Plans July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved9 Discussion Questions What is the primary reason that traditional pension plans are going the way of the dinosaurs? What does the Pension Benefit Guaranty Corporation do?