# Presentation: 535380

## Catch-Up Strategies For Late Savers Game

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**Stretching Savings**

**Special Issues**

**Retirement Basics**

**Savings Tax Incentives**

**Increasing Savings**

***Catch-Up Strategies For Late Savers *****Game**

## The Answer is: 

- Commonly quoted retirement income replacement percentage for retirement savings planning purposes.

## The Question is:

**What is 70% to 80% of pre-retirement income?**

## The Answer is: 

- Two examples of household expenses that often end or decrease upon retirement.

## The Question is:

**What are: commuting costs, business travel, union dues, retirement plan contributions, business clothing, auto expenses, income taxes, mortgage payments**

## The Answer is: 

- Two examples of expenses that often begin or increase in retirement.

## The Question is:

**What are: travel, entertainment, hobbies, medical expenses, dental expenses, health insurance, long-term care insurance, volunteer expenses, gifts?**

## The Answer is: 

- The investment time horizon for retirees when making asset allocation decisions.

## The Question is:

**What is the rest of your life (lifetime)?**

## The Answer is: 

- Term for workers’ right to earn retirement benefits because they worked long enough for an employer to qualify for benefits.

## The Question is:

**What is vesting?**

## The Answer is: 

- Age at which workers qualify to make additional catch-up contributions to an IRA or a tax-deferred retirement savings plan through the year 2010.

## The Question is:

**What is age 50 (by December 31 of the calendar year)...or older?**

## The Answer is: 

- Retirement savings plan open to all workers with earned income and their spouses (whether or not the spouse is employed).

## The Question is:

**What is an individual retirement account (IRA)?  There are two types: Roth and Traditional.**

## The Answer is: 

- Name of the tax-deferred retirement savings plan for employees of schools, colleges, and non-profit organizations.

## The Question is:

**What is a 403(b) plan?**

## The Answer is: 

- Name of a tax-deferred retirement savings plan available to the owner of a small business, whether it is a full time job or work “on the side.”

## The Question is:

**What is a SEP, SIMPLE, or Keogh plan?**

## The Answer is: 

- Maximum household adjusted gross income (AGI) level for a married couple filing jointly to receive some tax credit for their retirement plan contributions (through 2006).

## The Question is:

**What is a $50,000 AGI?**

## The Answer is: 

- Simple technique used to estimate how long, or at what interest rate, it takes a sum of money to double.

## The Question is:

**    ****What is the Rule of 72?**

## The Answer is: 

- The practice of investing regular amounts at regular time intervals, such as 401(k) plan deposits taken out of a worker’s paycheck every pay period.

## The Question is:

**What is dollar-cost averaging?**

## The Answer is: 

- The reduction of investment volatility when retirement assets are held for long time periods.

## The Question is:

**What is time diversification?**

## The Answer is: 

- Two good times when it is easier to increase contributions to retirement savings plans because it doesn’t affect household spending patterns.

## The Question is:

**What is...**
**1. When you receive a raise or pay increase?**
**2. When household expenses decrease?**

## The Answer is: 

- A method to accelerate debt repayment to free up money to save for retirement and/or to decrease borrowing costs.

## The Question is:

**What is: contacting creditors to request a lower interest rate, transferring balance to a lower rate credit card or loan, using a PowerPay analysis, and paying more than the minimum required payment?**

## The Answer is: 

- Lower maintenance costs, property taxes, and utilities are a benefit of this catch-up retirement planning strategy but a major trade-off is less space and storage.

## The Question is:

**What is trading down (downsizing) to a smaller home?**

## The Answer is: 

- Postponing withdrawals from savings and increased Social Security and pension benefits are two advantages of this retirement catch-up strategy.

## The Question is:

**What is delaying (postponing) retirement?**

## The Answer is: 

- Age at which withdrawals from tax-deferred accounts, such as Traditional IRAs and 401(k)s- if a worker is retired- must begin.

## The Question is:

**What is age 70 1/2?**

## The Answer is: 

- Age that homeowners generally must attain to qualify for a reverse mortgage.

## The Question is:

**What is age 62?**

## The Answer is: 

- Type of retirement assets (by method of taxation) that generally should be withdrawn first to make money last longer.

## The Question is:

**What are taxable accounts (i.e., savings made with after-tax dollars) and tax-free assets such as municipal bonds?**

## The Answer is: 

- Name of an important estate planning document that should be prepared, especially after someone has an uncertain health prognosis.

## The Question is:

**What is a will, living will, and durable power of attorney?**

## The Answer is: 

- Popular name of a federal law that provides the opportunity for continued health insurance coverage to qualified workers who separate from their employer and agree to pay the premium.

## The Question is:

**What is COBRA?**

## The Answer is: 

- Length of time that unemployed workers and early retirees can receive continued health insurance from a former employer’s group plan if they pay the premium.

## The Question is:

**	****	****	****What is 18 months?**

## The Answer is: 

- Term used to describe a wide array of services ranging from assistance with daily activities of living at home to admission to a nursing home.

## The Question is:

**What is long-term care?**

## The Answer is: 

- Reason why potential inheritances should not be counted upon and included in a retirement savings calculation.

## The Question is:

**What is the fact that there are no guarantees you’ll actually receive any money and that there are too many unknown factors, such as a donor’s health and longevity?**