########################Chapter
######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
Chapter 6 and Chapter 7_ CRPC.pdfChapter
6 and Chapter 67_and
CRPC.pdfChapter
Chapter 7_ CRPC.pdf##############################################
6 and Chapter 7_ CRPC.pdf############################
Chapter 6 and Chapter 7: CRPC
Outliving one's resources
Having to work in retirement
Being able to afford healthcare
Being able to cover LTC needs
Staying productive and engaged - ANS-Top concerns of prospective retirees:
Can I afford it?,...
Create a budget
Impact of inflation
Unexpected expenses
Costs in retirement
How will my spouse and family be affected?,...
Everyday is a Saturday
Shared interests with spouse, if not adjustments - ANS-Questions facing prospective
retirees
Is this the right time?
Enjoy work or not?
Personal health?
Emotionally ready vs financially,...
Do I really want to retire?,...
Stay in current home/ downsize?
Hobbies?
Flexible,...not have to go to work
Lose ability to perform up to standards - ANS-More questions facing retirees,...
Defined benefit pension plan - typically benefits are reduced
Defined contribution plan - fewer contributions and fewer years of growth
Social security - benefit reduction if claim early
Health care coverage - costs may increase
Loss of employer covered healthcare
########################Chapter
######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
Chapter 6 and Chapter 7_ CRPC.pdf############################################################################
6 and Chapter 7_ CRPC.pdfChapter 6 and Chapter 7_ CRPC.pdf############################
,########################Chapter
######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
Chapter 6 and Chapter 7_ CRPC.pdfChapter
6 and Chapter 67_and
CRPC.pdfChapter
Chapter 7_ CRPC.pdf##############################################
6 and Chapter 7_ CRPC.pdf############################
Retirement plan distributions - must be structured to avoid early withdrawal penalties -
ANS-Factors that Affect the Early Retirement Decision
All plans -
Death or disability
Substantially equal periodic payments
Medical expenses above 10% AGI
IRA Only
First time home purchase up to $10K
Health insurance premiums while unemployed
All except IRA
separation from service after age 55
Qualified domestic relations order (QDROs) do not apply to IRA accounts - ANS-Early
withdrawal penalty exceptions
1) Cash/ severance benefits
2) continued health plan coverage - until hit age of 65 bridge gap to Medicare
3) Early access to distributions from retirement plans - can access at 55 without a 10%
penalty
4) enhance pension benefits - inflate pension benefits artificially, base as if you retired at
a later date
Other benefits
Continued use of co fitness center
Pre-retirement counseling
Tax counseling - ANS-Early retirement incentives
Present Value of benefits gained versus lost
Impact on social security and health benefits - less years OR less of the higher earning
years towards PIA; less contributions to retirement plans
Less time to compound and grow
State of job market - how easy to get another job, same field different company, skill set
declining
Value placed on leisure time - not like what you do, retire on less, live more frugally and
worth it to them - ANS-Is it a good deal? When faced with early retirement
Clauses written into executive contracts that provide special payments to key
executives who might lose their position or be otherwise disadvantaged if another
########################Chapter
######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
Chapter 6 and Chapter 7_ CRPC.pdf############################################################################
6 and Chapter 7_ CRPC.pdfChapter 6 and Chapter 7_ CRPC.pdf############################
######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
Chapter 6 and Chapter 7_ CRPC.pdfChapter
6 and Chapter 67_and
CRPC.pdfChapter
Chapter 7_ CRPC.pdf##############################################
6 and Chapter 7_ CRPC.pdf############################
Chapter 6 and Chapter 7: CRPC
Outliving one's resources
Having to work in retirement
Being able to afford healthcare
Being able to cover LTC needs
Staying productive and engaged - ANS-Top concerns of prospective retirees:
Can I afford it?,...
Create a budget
Impact of inflation
Unexpected expenses
Costs in retirement
How will my spouse and family be affected?,...
Everyday is a Saturday
Shared interests with spouse, if not adjustments - ANS-Questions facing prospective
retirees
Is this the right time?
Enjoy work or not?
Personal health?
Emotionally ready vs financially,...
Do I really want to retire?,...
Stay in current home/ downsize?
Hobbies?
Flexible,...not have to go to work
Lose ability to perform up to standards - ANS-More questions facing retirees,...
Defined benefit pension plan - typically benefits are reduced
Defined contribution plan - fewer contributions and fewer years of growth
Social security - benefit reduction if claim early
Health care coverage - costs may increase
Loss of employer covered healthcare
########################Chapter
######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
Chapter 6 and Chapter 7_ CRPC.pdf############################################################################
6 and Chapter 7_ CRPC.pdfChapter 6 and Chapter 7_ CRPC.pdf############################
,########################Chapter
######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
Chapter 6 and Chapter 7_ CRPC.pdfChapter
6 and Chapter 67_and
CRPC.pdfChapter
Chapter 7_ CRPC.pdf##############################################
6 and Chapter 7_ CRPC.pdf############################
Retirement plan distributions - must be structured to avoid early withdrawal penalties -
ANS-Factors that Affect the Early Retirement Decision
All plans -
Death or disability
Substantially equal periodic payments
Medical expenses above 10% AGI
IRA Only
First time home purchase up to $10K
Health insurance premiums while unemployed
All except IRA
separation from service after age 55
Qualified domestic relations order (QDROs) do not apply to IRA accounts - ANS-Early
withdrawal penalty exceptions
1) Cash/ severance benefits
2) continued health plan coverage - until hit age of 65 bridge gap to Medicare
3) Early access to distributions from retirement plans - can access at 55 without a 10%
penalty
4) enhance pension benefits - inflate pension benefits artificially, base as if you retired at
a later date
Other benefits
Continued use of co fitness center
Pre-retirement counseling
Tax counseling - ANS-Early retirement incentives
Present Value of benefits gained versus lost
Impact on social security and health benefits - less years OR less of the higher earning
years towards PIA; less contributions to retirement plans
Less time to compound and grow
State of job market - how easy to get another job, same field different company, skill set
declining
Value placed on leisure time - not like what you do, retire on less, live more frugally and
worth it to them - ANS-Is it a good deal? When faced with early retirement
Clauses written into executive contracts that provide special payments to key
executives who might lose their position or be otherwise disadvantaged if another
########################Chapter
######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
Chapter 6 and Chapter 7_ CRPC.pdf############################################################################
6 and Chapter 7_ CRPC.pdfChapter 6 and Chapter 7_ CRPC.pdf############################
