AIM-IRS40TH ANNUAL BUSINESS

MEETING & TRAINING SEMINAR

CROWN PLAZA HOTEL & RESORTS5700 28TH STREET, S.E.

GRAND RAPIDS, MICHIGAN 49546Date: Friday, August 7, 2009

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CAN I AFFORD TO RETIRE?

MODERATOR: BESSIE N. MOORE

PRESENTER: RON PITTS PRESENTER: JAMES W. DANIELS, Jr.

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WHAT THE WORKSHOP IS NOT ABOUT!

HEALTH RELATED ISSUES; INVESTMENTS OF ANY TYPE; CIVIL SERVICE RETIREMENT SYSTEM

(CSRS); FEDERAL EMPLOYEE RETIREMENT

SYSTEM (FERS); AND, THRIFT SAVING PLAN (TSP).

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WHAT THE WORKSHOP IS ABOUT

RETIREMENT (HEADING OFF FEAR) READINESS; FINANCIAL MATURITY; FINANCIAL PLAN; DEBT MANAGEMENT (AVOIDING DEBT TRAPS)

AND/OR DEVELOPING A DEBT-REDUCTION STRATEGY; RETIREMENT PLAN; CREDIT CARDS: THEY SHOULD BE YOUR FRIEND NOT

THE ENEMY; AND, MANAGING YOUR BUDGET.

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The Road to Retirement

All is well and good

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DEFINITIONS

CLASSROOM PARTICIPATON: WE NEED YOUR INVOLVEMENT!

WHAT IS RETIREMENT? WHAT IS A BUDGET PLAN? WHAT IS A RETIREMENT PLAN?

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PLAN DEFINITION

A SCHEME OF ACTION OR PROCEDURE; A PROJECT OR DEFINITE PURPOSE; PLANS FOR THE FUTURE; COURSE OF ACTION,….

PLAN REFERS TO ANY METHOD OF THINKING OUT ACTS AND PURPOSE BEFOREHAND, …

(SCHEME: A PLAN DESIGN, OR PROGRAM OF ACTION TO BE ADOPTED AND FOLLOWED.)

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RETIRE(MENT) DEFINITION

REMOVAL OR WITHDRAWAL FROM AN OCCUPATION, SERVICE, OFFICE, ETC.

TO FALL BACK OR RETREAT IN AN ORDERLY FASHION AND ACCORDING TO A PLAN

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PLACEHOLDERAll is well and good

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PREPARATION OF YOUR PLAN

YOU SHOULD ALWAYS BE REALISTIC REGARDING YOUR PLAN.

FROM A PRACTICAL PERSPECTIVE: YOU SHOULD START THE DAY YOU ARE HIRED.

HOWEVER, YOU SHOULD START GENERAL PLANNING FOR RETIREMENT TEN (10) YEARS IN ADVANCE.

DO A QUICK CALCULATION OF YOUR ANTICIPATED EXPENSES, BOTH FIXED AND VARIABLE.

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PREPARATION OF YOUR PLAN(continued)

USE THESE ESTIMATES TO ESTABLISH THE FACT AS TO WHETHER YOU CAN RETIRE WHEN PLANNED.

ALWAYS CONSIDER ALTERNATIVES IF YOUR RETIREMENT OBJECTIVES ARE OUT OF LINE WITH YOUR FINANCIAL REALITIES.

IF THE ABOVE IS THE CASE, POSTPONE RETIREMENT A FEW YEARS AFTER YOU ARE ELIGIBLE.

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PREPARATION OF YOUR PLAN(continued)

MAKE AN OUTLINE OF YOUR RETIREMENT PLAN IN WRITING.

YOU SHOULD ALWAYS REVIEW AND UPDATE YOUR RETIREMENT PLAN ONCE A YEAR.

AN EXCELLENT TIME OF THE YEAR WOULD BE WHEN YOU FILE YOUR FEDERAL INCOME TAX RETURN.

PREPARATION OF YOUR PLAN(continued)

OTHER TIMES WOULD BE: MARRIAGE DIVORCE DEATH (not yours) INJURY or ILLNESS ECONOMIC WOES

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PLACEHOLDERAll is well and good

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AVOIDING DEBT TRAPS

ARE YOU SPENDING EVERY DIME YOU MAKE?

IF THE AFOREMENTIONED SCENARIO IS THE CASE, YOUR BUDGET WILL BE AN ENORMOUS ASSET.

COMPLETE KNOWLEDGE OF YOUR EXPENSES AND WHERE THEY ARE COMING FROM (CREDIT CARDS, CAR MAINTENANCES, ETC.) WILL BE YOUR FIRST STEP IN GETTING THEM UNDER CONTROL.

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AVOIDING DEBT TRAPS(continued)

THE BUDGET WILL HELP YOU TO OUTLINE YOUR EXPENSES AND IDENTIFY ANY AREAS THAT CAN BE ELIMINATED.

FOR EXAMPLE, DO YOU REALLY NEED TO EAT OUT THREE (3) TO FOUR (4) TIMES DURING A NORMAL WORK WEEK. AT APPROXIMATELY $10.00 A DAY, THAT BE SOMEWHERE AROUND $2,500.00 TO $3,000.00 A YEAR.

IN OTHER WORDS, YOU REALLY NEED TO CONSIDER SERIOUS LIFE STYLE SPENDING CHANGES.

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TENTATIVE BUDGET OUTLINE WORKSHEET INCOME: LIST ALL SOURCES OF INCOME

(E.G., WAGES, INTEREST INCOME, MISCELLANEOUS, ETC.)

INCOME TAXES WITHHELD: ENSURE YOUR WITHHOLDING IS BASED ON SOUND LOGIC (REFUND VS. TAX DUE).

BREAK ALL EXPENSES DOWN INTO SPECIFIC GROUPS, SO THAT, THEY ARE COMPLETELY AND THOROUGHLY ITEMIZED.

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TENTATIVE BUDGET OUTLINE WORKSHEET (continued)

HOME EXPENSES: MORTGAGE OR RENT, HOMEOWNERS/RENTERS, INSURANCE, PROPERTY TAXES, ETC.

UTILITIES: ELECTRICITY, WATER AND SEWER, NATURAL GAS OR OIL, TELEPHONE (LAND LINE AND/OR CELL), ETC.

FAMILY OBLIGATIONS: CHILD SUPPORT/ALIMONY, DAY CARE, BABYSITTING, ETC.

FOOD: GROCERIES, EATING OUT, LUNCHES, SNACKS, ETC.

TRANSPORTATION: CAR PAYMENTS, GASOLINE/OIL, AUTO REPAIRS/MAINTENANCE, FEES, ETC.

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TENTATIVE BUDGET OUTLINE WORKSHEET (continued)

OTHER: TOLLS, BUS, SUBWAY, ETC. DEBT PAYMENTS: CREDIT CARDS, OTHER LOANS,

etc. ENTERTAINMENT/RECREATION: CABLE TV,

VIDEOS, MOVIES, VACATIONS, SUBSCRIPTIONS AND DUES, etc.

MISCELLANEOUS: SAVINGS, EMERGENCY FUND, GROOMING, DONATIONS, etc.

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OUR FIRST MISTAKE WAS WE THOUGHT OF FREEDOM AS A PLACE, RATHER THAN AS A CONTINUATION OF STRUGGLE.  TYRANNY NEVER SLEEPS. OUR SECOND MISTAKE WAS THAT WE THOUGHT OF FREEDOM AS A GOAL RATHER THAN AS A LAUNCHING PAD FROM WHICH TO REACH OUR GOALS.  WITHOUT PURPOSES, FREEDOM HARDLY MATTERS. OUR THIRD MISTAKE WAS THAT WE THOUGHT FREEDOM WAS FREE. THAT, HOWEVER IS LICENSE, NOT FREEDOM AT ALL.  FREEDOM IS BEING SHACKLED TO IDENTITY, PURPOSE AND DIRECTION, AND BEING IN CONSTANT PURSUIT. "AMUN HOTEP" I WONDER IF "AMUN HOTEP" ENJOYED HIS RETIREMENT!!!

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PLACEHOLDERAll is well and good

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Written by James Daniels

Ron Pitts

Moderator Bessie Moore

Advice by One Po Person to Another

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Sponsored by AIG

Financial Advisor Bernie Maddoff

Legal Advisor Rod R. Blagojevich

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