Smart Devotees Finish Rich

A Presentation by Krishna Gopal das (ACBSP), Executive Director ,

Vedic Community Foundation, Inc.

• VCF, a 501c3, provides donors with education and tax advantage vehicles for contributing to temples and related projects promoting Vedic Culture.

• It provides projects worldwide with exposure to donors along with cost effective processing of donations to them including investment securities, cash, checks, credit cards and other assets.

Financial Management

Agenda:Dabir Khas aka Rupa GoswamiWhy invest and saveWhen to investWhat to invest inHow much to investEstate Planning (Condensed)Conclusion

dabir khas aka Rupa Goswami

Why Invest & Save

2 x 3 x 5 x 365 x 20 =$219,000

The cost of Bhoga

Retirement

When to invest – The power of Compounding$5,000 every year for the next 10 years at an average rate of return of 10% equals $1,044,698 in 36 years

2012

2015

2018

2021

2024

2027

2030

2033

2036

2039

2042

2045

2048

$- $200,000 $400,000 $600,000 $800,000

$1,000,000 $1,200,000

Axis Title

Axis Title

What to invest in

Loan Savings Account CDs US Treasuries Govt. Agency Bonds Municipal Bonds Corporate Bonds Preferred Stock Emerging Market Debt Fixed Annuities Income Mutual Funds

Own Real Estate Commodities (Gold) Stocks

◦ Small cap◦ Mid cap◦ Large cap◦ Value◦ Growth◦ Domestic◦ Foreign◦ Emerging Markets

Equity Mutual Funds Variable Annuities

How much to invest (in what) Cash, MM, CDs

Growth

Established

IncomeLoan Investments

Bonds, Preferred Stock

Growth & Income

Dividend Stocks

A.G. 12% +

8-10%

6%-8%

4%-6%

1%-3%

Rate of ReturnPercentage of Portfolio5-10%

15-20%

30%-40%

30%-50%

5%-10%

The average rate of inflation

3%

ConclusionPoints to consider & understand in investing• Risk Tolerance• Timeline• Values• Purpose • Different types of Risk• Established Financial Goals

Thank you – Hare Krishna

Retirement Planning Retirement Vehicles – Which one is right for you

Agenda • Why save for retirement• Retirement Vehicles Defined• Retirement Vehicles Details• 401k Rollover • Why consolidate• What is an RMD • What happens when you pass on

Why Save for Retirement

• The Raising cost of Living- Inflation• Potential short coming of Social Security• Have the “ability” to retire• Have stress free Vanaprastha life• Independence & Freedom

What is your Actual income?

Giving 50% of your income example of $1,000 weekly

Mortgage, taxes & ins.Car payment, gas Ins.Food, Education, ClothingDisposable income give 50% of this

Work for life or Be Happy

Retirement Vehicles Defined

• IRA (Individual Retirement Account)• Roth IRA• SEP IRA (Simplified Employee Pension Plan)• SIMPLE IRA (Savings Incentive Match Plan for Employees)• 403B Saving Plan for public Ed. Org. & non Profits• 401K Employer Sponsored Retirement Plan• Profit Sharing & Money Purchase Plan

IRA (Individual Retirement Account)

Contribution Guidelines• Investments Grow Tax deferred• Contributions from Earned Income• Contribution Limits - $5,500 + $1,000 if 50 & older• Tax deductible contribution• Can contribute even with a Company 401K*

• MAGI $56,000 Single - $110,000 Married• Can contribute up to age 70.5 with earned income• Deadline to contribute – April 15th 2015

Withdrawal Guidelines• 59.5 years of age without 10% penalty

• Exceptions –Disability, first time owner, higher Ed., military reservist, Med exp. Above 7.5% of AGI, Health Insurance Premiums, Equal payments over life time

• Withdrawal is taxed as earned income• 70.5 Required Minimum Distribution (RMD)

Roth IRA

Contribution Guidelines Investments Grow Tax Free Contribution Limits - $5,500 + $1,000 50 & older After Tax Contribution Full contribution if MAGI $107K or $169K married No age limit on contributions Contributions are from earned income Deadline to contribute – April 15th 2015Withdrawal Guidelines• 59.5 years of age without 10% penalty

• Exceptions –Disability, first time owner, higher Ed., military reservist, Med exp. Above 7.5% of AGI, Health Insurance Premiums, Equal payments over life time

• Withdrawals are tax free• No RMD

Simplified Employee Pension Plan Sep IRA

Contribution Guidelines• Best used by self employed business owner• Contributions are tax deducible• Investments grow tax deferred• Contributions up to 25% of Compensation• Contribution limits $52,000 of $260,000• Contribution deadline Company tax filing date

Withdrawal Guidelines • Same restriction as IRA• Taxes as earned income

SIMPLE IRA

Guidelines Best used for companies of 25 or less Contributions are pre-tax Either dollar for dollar contribution of 3% match or 2% of all eligible employees Employees up to 100% compensation or $11,500 50+ $14,000 Investments grow tax deferred Withdrawals are taxed as earned income 25% early withdrawal penalty first two years Plan Set up between January 1 and October 1 of tax year More cost effective to establish than 403B or 401K

403 (b) Plan

Guidelines Typically used by Educational and Non-Profits org. Individual contribution limit is $16,500 Total maximum combined contribution is $49,000 Contributions are taxed deferred Withdrawals are taxed as earned income

401 (k) Plan

Guidelines Typically used by larger corporations Can be a one person “UniK” Flexible plan with employer contributions Individual can contribute up $17,500 Maximum combined contribution $52,000 Employer and Employee can deduct contributions pre tax Investments generally limited to Mutual funds

Withdrawal Guidelines Same as other plans Can borrow against the balance

Profit Sharing & Money Purchase

Guidelines Flexible Plan designed to reward long term

employees Employer can contribute up to 25% of

compensation or $52,000 Contributions are tax deductible Can hold all types of investments

Withdrawal Guidelines Same as other plans

401k Rollover

What is it and why Moving investments from a former company

plan to IRA Protects assets should the company change Provides for greater investment choices Gives more individual control Tax advantges for dependents

Why Consolidate Plans

Benefits “Don’t keep all your eggs in one

basket” “But keep them all on the same

ranch” Investment overlap Better oversite and management Easier for dependents dealing with

estate

Required Minimum Distribution

RMD Explained Must Begin Distribution at 70.5 years old Taxed as earned income Based on life expectancy and total amount in

plan Increases every year Continues to pay out to dependents Does not apply to Roth IRA You can disclaim the inherited IRA

Retirement Plan at passing

What happens Becomes a Decedent IRA Distributions Begins or continue Based in combined life expectancy Taxed to the Dependent as ordinary income Not subject to the early withdrawal 10% penalty Seek a qualified professional

Estate Planning (condensed)

Agenda:25 Documents –You Need Before you DieOnline Wills or a real AttorneyAdvantages of a TrustCharitable Financial GiftingConclusion – Work with an Estate Planning Attorney

Essentials-Will & Trust-Letter of instructionBank Accounts -List of Accts-Name & Passwords-Safe Deposit BoxLife Ins. & Retire-Ind. Accounts-401K Accounts-Pension documents-Annuity contractsMarriage & Divorce-Marriage License -Divorce PapersHealth-Care Essentials-Medial History-Health-care directive-Release Authorization-Living Will-Do not resuscitate orderProof of OwnershipHousing DeedVehicle titlesInvestment HoldingsTax Returns

I am going to live forever

(not)

Online Wills & Trust

Advantages of a Trust

1. Avoid Probate2. Accept a “Pour over Will”3. Management from the Grave4. Protect your Estate5. Provide funds for Special Needs 6. Provide funds for Education7. Avoid Taxes8. Provide funds for Charity

Work with an Attorney & a Financial AdvisorThank you- Hare Krishna

Conclusion

Chant Hare Krishna and be happy