Workplace Education Series

Transcription

1 Making the Most of Your Workplace Savings MGM Benefits Group and Financial Benefit Services Richardson, TX

2 Maximize your retirement savings opportunities Let s explore: Steps to help you make the most out of your paycheck Annual IRS limits The fundamentals of investing

3 Take full advantage of your workplace savings plan Don t put it off another day First, maximize your employer match Strive to reach the maximum annual pretax contribution limit ($17,500 in 2014) Take advantage of catch-up contributions, if eligible ($5,500 in 2014) Continue ease and discipline of payroll deduction Once you re at that level, then you can think about other tax-advantaged savings vehicles outside of your workplace savings plan. Some Tools to Help: Use our Contribution Calculator to try some what-if planning and the Take-Home Pay Calculator to see what a bargain it can be to save in your plan.

4 Plan details MGM / FBS Retirement Plan

5 Plan Features Eligibility Requirements All Contributions Complete 3 months of service Enrollment All Contributions Immediate upon meeting all eligibility requirements Contributions Employee Contributions IRS Limits 2014 $17,500 1% to 90% of eligible compensation, inclusive of pretax and/or Roth deferrals (IRS limit of $17,500 for 2014) EGTRRA Catch Up Provision Catch-up limit 2014 $5,500 Vesting Discretionary Match $.50 of every $1.00 up to 10% with a maximum of 5% of the employee s monthly salary Discretionary Profit Sharing Refer to the Summary Plan Description for further information regarding profit sharing contributions. Employee Contributions 100% immediate Discretionary Match & Discretionary Profit Sharing Years of Service less than Vesting Percentage Loans Although your plan account is intended for the future, you may take a loan from your account. Withdrawals Withdrawals from the Plan are generally permitted in the event of termination of employment, retirement, disability, or death. This document only provides a summary of the main features of the Plan, and the Plan document will govern in the event of any discrepancies.

6 Build your investment portfolio The three investment types and the role they play Investment risk Inflation risk Short-term investments Bonds Money market, T-bills, CDs Relatively stable value Potential to pay interest Lower risk, lower potential return I.O.U. Debt securities issued by governments and corporations Potential to pay interest Moderate risk, moderate potential return Stocks Share of a company, equity Long-term growth potential Value can go up and down Higher risk, higher potential return An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency. Although money market funds seek to preserve the value of your investment at $1 per share, it is possible to lose money by investing in these funds.

7 It s about solving for three factors Investment risk Data Source: Ibbotson Associates, 2013 ( ). Past performance is no guarantee of future results. The asset class (index) returns reflect the reinvestment of dividends and other earnings. This chart is for illustrative purposes only and does not represent actual or future performance of any investment option. It is not possible to invest directly in a market index. Stocks are represented by the Standard and Poor s 500 Index (S&P 500 Index). The S&P 500 Index is a market capitalization weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance. Bonds are represented by the U.S. Intermediate Government Bond Index, which is an unmanaged index that includes the reinvestment of interest income. Short-term instruments are represented by U.S. Treasury bills, which are backed by the full faith and credit of the U.S. government. Inflation is represented by the Consumer Price Index. (CPI) is a widely recognized measure of inflation, calculated by the U.S. government. Stock prices are more volatile than those of other securities. Government bonds and corporate bonds have more moderate short-term price fluctuations than stocks but provide lower potential long-term returns. U.S. Treasury bills maintain a stable value (if held to maturity), but returns are only slightly above the inflation rate.

8 Determine your investment mix It s about solving for these three factors Your time horizon Your risk tolerance Your financial situation A Tool to Help: Use Portfolio Review to find your target asset mix and create an action plan to help align your portfolio with your goals. Or, complete the Investor Profile Questionnaire. Portfolio Review is an educational tool.

9 Then, determine what mix of investment types match your investment approach Finding the right mix How four hypothetical investment mixes align with different approaches to investing Aggressive Growth Growth May be appropriate for investors: May be appropriate for investors: Comfortable with wide fluctuation 15% 25% 60% Comfortable with significant fluctuation > 10 years until retirement goal > 5 years until retirement goal Balanced Conservative May be appropriate for investors: Comfortable with moderate fluctuation 40% < 5 years until retirement goal For illustrative purposes only. Domestic Stock 35% 10% 15% 25% 25% 60% 49% 10% 5% 21% May be appropriate for investors: Looking to minimize fluctuation < 5 years until retirement goal Foreign Stock Bond 14% 50% 6% 30% Short-term Investments The purpose of the target asset mixes is to show how target asset mixes may be created with different risk and return characteristics to help meet a participant s goals. You should choose your own investments based on your particular objectives and situation. Remember, you may change how your account is invested. Be sure to review your decisions periodically to make sure they are still consistent with your goals. You should also consider any investments you may have outside the plan when making your investment choices. These target asset mixes were developed by Strategic Advisers, Inc., a registered investment adviser and Fidelity Investments company, based on the needs of a typical retirement plan participant.

10 Choosing your investments: hands-on or hands-off? Do you want to make your own investment decisions? Are you comfortable building your own portfolio? Do you have the time to actively manage your investments? Hands-on Hands-off Lifecycle Funds* Provide an automatic investment mix that becomes continually more conservative as time goes on. Just pick the fund with the year that s closest to the year you plan to retire. Let us guide you Use our investment guidance tool, Portfolio Review, to identify a target investment mix, receive a model portfolio suggestion, and easily implement your strategy. Do it yourself Access Fidelity s research resources, and utilize our fund selection tools to build your own portfolio. *Lifecycle funds are designed for investors expecting to retire around the year indicated in each fund s name. The investment risk of each lifecycle fund changes over time as its asset allocation changes. Lifecycle funds are subject to the volatility of the financial markets, including equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, and foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates. Guidance provided by Fidelity is educational in nature, is not individualized, and is not intended to serve as the primary or sole basis for your investment or tax-planning decisions. Neither diversification nor asset allocation ensures a profit or guarantees against loss.

11 Investment options by asset class and sub-asset class Money Market Fidelity Money Market Trust Retirement Money Market Portfolio Bond Diversified PIMCO Total Return Fund Administrative Class Spartan U.S. Bond Index Fund - Fidelity Advantage Class Balanced/Hybrid T. Rowe Price Capital Appreciation Fund Advisor Class Domestic Equities Large Value Columbia Dividend Income Fund Class A Oppenheimer Equity Income Fund Class A Mid Value Fidelity Value Fund RidgeWorth Mid-Cap Value Equity Fund Class I Large Blend Spartan 500 Index Fund - Fidelity Advantage Class T. Rowe Price Dividend Growth Fund Advisor Class Mid Blend Spartan Extended Market Index Fund - Fidelity Advantage Class Domestic Equities (con t) Small Blend Glenmede Small Cap Equity Portfolio Class Advisor Lord Abbett Small Cap Value Fund Class A Large Growth Fidelity Contrafund Small Growth Janus Triton Fund Class T Vanguard Explorer Fund Admiral Shares International/Global Equity Diversified AllianzGI NFJ International Value Fund Administrative Class Artisan International Fund Investor Class Invesco International Growth Fund R5 Class Spartan International Index Fund - Fidelity Advantage Class Emerging Markets Harding Loevner Emerging Markets Portfolio Advisor Class Specialty Fidelity Real Estate Income Fund MFS Utilities Fund Class R3 Select Biotechnology Portfolio Select Health Care Portfolio

12 Lifecycle Chart Your plan has assigned lifecycle funds based on target retirement date ranges, if you decide not to select individual investment options. Fund Name JPMorgan SmartRetirement Income Fund Class A Shares JPMorgan SmartRetirement 2010 Fund Class A Shares JPMorgan SmartRetirement 2015 Fund Class A Shares JPMorgan SmartRetirement 2020 Fund Class A Shares JPMorgan SmartRetirement 2025 Fund Class A Shares JPMorgan SmartRetirement 2030 Fund Class A Shares JPMorgan SmartRetirement 2035 Fund Class A Shares JPMorgan SmartRetirement 2040 Fund Class A Shares JPMorgan SmartRetirement 2045 Fund Class A Shares JPMorgan SmartRetirement 2050 Fund Class A Shares JPMorgan SmartRetirement 2055 Fund Class A Shares The target date investments are designed for investors expecting to retire around the year indicated in each fund s name. The investments are managed to gradually become more conservative over time as they approach the target date. The investment risk of each target date investment changes over time as its asset allocation changes. The investments are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, and foreign securities. Principal invested is not guaranteed at any time, including at or after the target dates.

13 Steps you can take today Let s explore: Setting up your account on NetBenefits The benefits of consolidating accounts How Fidelity can help

14 Steps to take today Set up your account on NetBenefits If you are not currently registered on NetBenefits, you will need to create a user name and password. If you have other accounts with Fidelity, your new log in information applies to these accounts, as well as to accessing your account by phone. For illustrative purposes only. Tip: Take advantage of interactive tools, calculators, and educational resources available on NetBenefits.

15 Steps to take today Make sure your beneficiary designations are current If you have not already selected your beneficiaries, or if you have experienced a life-changing event, now is a good time to consider your beneficiary designations. Primary Secondary Spousal consent

16 Steps to take today Simplify your accounts Keep all of your assets in one place Fewer statements Track overall performance Maintain investment strategy of choice Keep in mind that fees may apply when closing and consolidating accounts.

17 NetBenefits mobile apps The NetBenefits mobile apps for smartphone and ipad can help you stay connected with your benefits: The NetBenefits apps bring your Fidelity workplace accounts forward in one, easyto-access location You ll also have quick access to your plan's toll-free number so you are never too far from live assistance Download the apps today or you can browse netbenefits.com on the mobile Web. Screen shots are for illustrative purposes only. Apple, the Apple logo, ipad, iphone, and ipod touch are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android and Google Play are trademarks of Google Inc.

18 Calculators Evaluate how saving more pre-tax may affect your paycheck See how saving more now means extra money at retirement Pre-tax Take Home Pay Calculator Contribution Calculator Short-term Screen shots are for illustrative purposes only. 18

19 Fidelity Portfolio Review Select a Target Asset Mix (your asset allocation) Analyze Current and Target Portfolio Receive Investment Suggestions from Fidelity Short-term Screen shots are for illustrative purposes only. 19 Portfolio Review is an educational tool.

20 Your plan s toll-free number Retirement Benefits Line 8:30 am 8:00 pm in your local time zone VRS virtually 24 hours

21 Steps to take today Put all you ve just learned to work for your future We will work one on one with you to provide: Information about your plan s features and benefits Assistance with a range of services from plan enrollment to investment education as well as account consolidation Guidance on next steps to help you maximize your workplace savings plan and other retirement savings opportunities Assistance with more complex needs including, multi-goal and retirement income planning, charitable giving strategies, and investment management Contact our Workplace Planning and Guidance Consultants for a complimentary consultation today Call Representatives are available from 8:30 am 8:30 pm EST

22 Fidelity NetBenefits Online tools and calculators Links to educational resources Investment research Online statements

23 Fidelity e-learning Workshops Self-paced learning modules that provide guidance to help you: Understand the benefits of participating in the workplace savings plan Determine your retirement savings needs Build an investment strategy Evaluate your investment options Explore options for simplifying finances Prioritize and manage multiple financial goals A Tool to Help: Visit the e-learning catalog at On-demand modules are available virtually 24 hours a day, 7 days a week.

24 Important Information Before investing in any mutual fund, please carefully consider the investment objectives, risks, charges and expenses. For this and other information, contact Fidelity for a free prospectus or, if available, a summary prospectus. Read it carefully before you invest. Keep in mind investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money. The Plan is intended to be a participant-directed plan as described in Section 404 (c) of ERISA, which means that fiduciaries of the Plan are ordinarily relieved of liability for any losses that are the direct and necessary result of investment instructions given by the participant or beneficiary FMR LLC. All rights reserved. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem St, Smithfield, RI

25 Important Information Before investing in any mutual fund, please carefully consider the investment objectives, risks, charges and expenses. For this and other information, contact Fidelity for a free prospectus or, if available, a summary prospectus. Read it carefully before you invest. Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money. Portfolio Review, Income Simulator, Retirement Quick Check, Retirement Income Planner, myplan Snapshot, and Fidelity Income Strategy Evaluator are educational tools. Guidance provided by Fidelity is educational in nature, is not individualized, and is not intended to serve as the primary or sole basis for your investment or tax-planning decisions. The trademarks and service marks appearing herein are the property of their respective owners FMR LLC. All rights reserved. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI