Saving for Retirement
ASEC Spring Partners Meeting
Gail MarksJarvis
Chicago Tribune Syndicated Financial Columnist
Author of EIFLE Winner, Saving for Retirement
(Without Living Like a Pauper or Winning the
Lottery)
[email protected]
312.519.7834
Twitter @gailmarksjarvis
Source: Gail MarksJarvis © 2014
Match Scenarios
Employee
Employee
Contribution
Company
Match
Retirement
Savings at
65
A
4%
No Match
$475,000
B
4%
Full Match
$949,000
C
6%
Full Match
$1,186,000
D
7%
Full Match
$1,305,000
E
2%
Partial Match
$475,000
F
3%
Partial Match
$711,900
Source: Gail MarksJarvis © 2014
The Magic of Compounding
Years
10
20
30
40
50
5%
7%
8%
$16,300 $19,700 $21,600
$26,500 $38,700 $46,600
$43,200 $76,100 $100,600
$70,400 $149,700 $217,200
$114,700 $294,600 $469,000
Source: Gail MarksJarvis © 2014
10%
$26,000
$67,300
$174,500
$452,600
$1,174,000
Investment Ingredients
Investments
Investment Types
Fund Name
Bonds
Bond and Stable
Value
Wells Fargo Stable Return
PIMCO Total Return Admin
Wells Fargo S&P 500 Index
Van Kampen Comstock A
Large Cap Stocks
David NY Venture A
American Funds Growth Fund of
America
Stocks
Mid Cap Stocks
Small Cap Stocks
JP Morgan Mid Cap Value Select
JP Morgan Capital Growth Select
Wells Fargo Advantage Small
Cap
Buffalo Small Cap Value
International Stocks
Julius Baer International Equity
Source: Gail MarksJarvis © 2014
Investment Ingredients
Investments
Bonds
Investment Types
Bond and Stable Value
Large Cap Stocks
Stocks
Mid Cap Stocks
Small Cap Stocks
International Stocks
Source: Gail MarksJarvis © 2014
Recovery from 2008 losses
Hypothetical Stocks/Bonds portfolio performance over three periods
The Crash
The Recovery
Crash + Recovery
Oct 2007 To Feb 2009
Mar 2009 To Oct 2010
Oct 2007 To Jan 2012
Value of
$10,000
Value of
$10,000
Value of
$10,000
Return
Return
Return
100% Stocks
-50%
$4,980
78%
$17,785
-9.5%
$9,050
60/40 Portfolio
-29%
$7,140
47%
$14,730
18%
$11,820
80/20 Portfolio
-40%
$5,980
62%
$15,470
4%
$10,400
50/50 Portfolio
-22%
$7,785
40%
$14,010
25%
$12,500
30/70 Portfolio
-8%
$9,220
26%
$12,610
40%
$13,960
© 2014 MarksJarvis/Ibbotson
Impact of Inflation
Source: Gail MarksJarvis © 2014
Thank you.
Gail MarksJarvis, author of:
Saving for Retirement: Without Living Like a Pauper or
Winning the Lottery © 2012
www.gailmarksjarvis.com
Gail MarksJarvis does not hold herself out as providing any legal, financial or
other advice. MarksJarvis also does not make any recommendation or
endorsement as to any investment, advisor or other service or product, or to
any material submitted by third parties or referenced in this presentation. In
addition, Gail MarksJarvis does not offer any advice regarding the nature,
potential value or suitability of any particular investment, security or
strategy.
The material mentioned in this presentation may not be suitable for you.
Contact your own financial advisor for strategies suitable for you.
Gail MarksJarvis © 2014