Welcomes You to A Special Presentation 2018 MCSB Retirement Seminar

Transcription

1 Welcomes You to A Special Presentation 2018 MCSB Retirement Seminar Representative is registered with and offers only securities and advisory services through PlanMember Securities Corporation, a registered broker/dealer, investment advisor and member FINRA/SIPC Carpinteria Ave, Carpinteria, CA , (800) BENCOR, Inc. and PlanMember Securities Corporation are independently owned and operated. PlanMember is not responsible or liable for ancillary products or services offered by BENCOR, Inc.

2 Disclosure: This presentation is intended for general information purposes only and does not and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult with your tax, legal and/or financial services professional regarding your individual situation. The views expressed are those of the presenter and may not necessarily reflect those held by PlanMember Securities Corporation (PSEC). Material presented is believed to be from reliable sources.psec makes no representation as to it accuracy or completeness. A mutual fund is an investment vehicle that pools the money of many investors, and has varying degrees of risk depending upon the fund s portfolio. Mutual funds may invest in stocks, bonds, or cash and include the opportunity for the investor to purchase shares with various pricing arrangements designed to meet their needs. There are fees and expenses associated with investing in mutual funds, including portfolio management fees and expenses and sales charges, which will affect the return on your investment. These fees and charges may be front- or back-end sales charges or annual expenses. In addition, mutual funds generally allow shareholders to sell shares at any time and receive current market value. Mutual fund investments, when held outside of a qualified retirement plan, are subject to tax. You should consult with a qualified tax advisor before investing. The investment return and principal value of an investment will fluctuate so that shares when redeemed, may be worth more or less than their original cost. Not all of the concepts and ancillary programs described in this seminar are available through PlanMember Securities Corporation, Inc., but are only available exclusively through BENCOR, Inc. & Bencor Administrative Services(BAS) As required by the IRS, you are advised that any discussion of tax issues in this material is not intended or written to be used, and cannot be used, (a) to avoid penalties imposed under the Internal Revenue Code or (b) to promote, market or recommend to another party any transaction or matter addressed herein.

3 Disclosure :The Guaranteed Pooled Fund The Guaranteed Pooled Fund is a guaranteed separate account of TFLIC which invests in a diverse pool of high quality fixedincome instruments and is offered through a group annuity contract. The Guaranteed Pooled Fund is fully liquid for participant withdrawals and transfers. Participants can withdraw their Guaranteed Pooled Fund balances at book value (as permitted by the plan) without penalty for death, disability, retirement, termination of employment, hardship, loans, or the purchase of an annuity from TFLIC. Participants can transfer their Guaranteed Pooled Fund balances to other non-competing investment options (note: there are no competing investment options in the standard BENCOR investment array). Credited interest rates are determined annually for existing assets and new deposits made during a calendar year. For the latest credited rate information, please log into your account at Both principal and interest are guaranteed by TFLIC. The Guaranteed Pooled Fund is a guaranteed pooled separate account offered through Transamerica Financial Life Insurance Company, 440 Mamaroneck Avenue, Harrison, NY 10528, which provides the guarantee of principal and interest. AM Best Company s ratings and Moody s Investors Service ratings reflect their current opinion of the relative financial strength and operating performance of insurance companies in comparison to the norms of the life/health insurance industry. Moody s A1 rating is the fifth highest rating out of 21 possible ratings. Standard & Poor s Insurance Rating Services and Fitch provide ratings which measure the claims-paying ability of an insurer. These ratings are opinions of an operating insurance company s financial capacity to meet the obligations of its insurance policies in accordance with their terms. Standard & Poor s AA- rating is the fourth highest rating out of 21 possible ratings. Fitch's AA- rating is the fourth highest rating out of 19 possible ratings. Ratings do not imply approval of the group annuity product, nor do they refer to performance of the separate account.

4 Disclosure: Fixed Indexed annuities are Insurance Contracts and do not directly participate in any stock, bond or equity investments. You are not buying any shares of Stocks, bonds or shares of an index. The Market index value does not include the dividends paid on the underlying market values. These dividends are also not reflected in any indexed interest that may be credited to your contract. Such contracts have substantial variation in terms, costs of guarantees and features and may cap participation or returns in significant ways. Investors are cautioned to carefully review a fixed index annuity for its features, costs and risk and how the variables are calculated. The tax-deferred feature of an annuity should not be a factor in purchasing an annuity in a taxqualified plan. Tax deferral is provided by the plan and the tax-deferral of the annuity does not provide any additional benefit. Annuities are subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. Individuals should only purchase an annuity in a qualified plan when its other benefits, such as lifetime income payments, family protection through death benefits, and/or guaranteed fees meet their current needs. Any guarantees are backed by the financial strength of the insurance company. Before investing in any mutual fund or variable annuity carefully read the prospectus(es) which contain information about the investment objectives, risks, charges, expenses and other information all of which should be carefully considered before investing. For current prospectus(es) call (800) The investment return and principal value will fluctuate and, when redeemed, the investment may be worth more or less than original purchase price. The examples that you are about to see in this presentation are hypothetical and a taxpayer/investor should note the following: Strategies suggested may not return the results illustrated as strategies and risks will differ from client to client.

5 Topics Who Are We? Challenges Facing Retirees BENCOR Investment Choices A Proven Approach

6 Who Are We? BENCOR In Florida, Special Pay plans in 63 Public School Systems Nearly 1 Billion in AUM* BENCOR Retirement Consultants Local Independent Advisors with a combined 50 years of experience working with Public School Employees *BENCOR Inc.

7 PlanMember is not responsible or liable for ancillary products or services offered by BENCOR, Inc. Diversified Investments Advisors(DIA), Bencor Administrative Services (BAS), BENCOR, Bencor Retirement Consultants (BRC) are independent of PlanMember Services Corporation Corporate Structure Diversified Investments Advisors(DIA) Bencor Administrative Services(BAS) BENCOR Bencor Retirement Consultants(BRC)

8 Challenges Facing Retirees These are the major challenges you are facing as a retiree: Rising Taxes Inflation* 3.2% annual average rate of inflation over the past 80 years Longevity** 50%- The chance that at least one spouse will live beyond 92 25%- the chance that at least one spouse will live beyond 97 *Ibbotson and Associates, 2008 Stocks Bonds and Inflation Yearbook **Society of Actuaries Annuity 2000 Mortality Table

9 Meeting the Challenges To meet these challenges, consider investments with these features: Safety Guarantees Accessibility Guaranteed Lifetime Income RMD Solutions Legacy Planning

10 Guaranteed Pooled Fund Fully backed and guaranteed by Transamerica Life Insurance Company* Rates are reset each year on January 1 st Portfolio Rate Crediting 100% access to all money No Fees, No Charges, Formula Driven** *The Guaranteed Pooled Fund uses a separate account to hold assets as collateral for the guarantees made under the group annuity contract. The fund is subject to the risk that the insurance company providing the guarantee of principal and/or interest will fail to meet its commitments. ** The Guaranteed Pooled Fund has internal expenses. Which can be found in the prospectus(es) which contain information about the investment objectives, risks, charges, expenses and other information all of which should be carefully considered before investing. For current prospectus(es) call (800) The investment return and principal value will fluctuate and, when redeemed, the investment may be worth more or less than original purchase price.

11 Investment Choices 15 Mutual Funds offered through Diversified Investments Advisors* Mutual funds offered cover a full range of investment options. No Guarantees Cost Diversified Investors Securities Corp. (DISC), 440 Mamaroneck Avenue, Harrison, NY 10528, distributes securities products. Any fund offered under the plan is distributed by that particular fund s associated fund family and its affiliated broker-dealer or other broker-dealers with effective selling agreements such as DISC. If the Transamerica Funds, Transamerica Partners Funds, or Transamerica Premier Funds (collectively, the Transamerica Funds) are offered under the plan, the Transamerica funds are distributed by Transamerica Capital, Inc. (TCI) and are advised by Transamerica Asset Management (TAM). If any stable, fixed or guaranteed funds are offered under the plan by Diversified, these funds are made available under a group annuity contract issued by Transamerica Financial Life Insurance Company (TFLIC), 440 Mamaroneck Avenue, Harrison, NY Diversified, TAM, TCI, TFLIC and DISC are affiliated companies, but are not affiliated with BENCOR or PlanMember Securities.

12 Reality of Investing Fixed - Interest Rate Driven BENCOR Guaranteed Pooled Fund Bank CD s* Fixed Annuities Variable- Market Driven Mutual Funds Variable Annuities Brokerage Accounts CD s are FDIC insured and offer a fixed rate of return, early withdrawal penalties will apply to redemptions prior to maturity. Fixed Annuities any guarantees are backed by the financial strength of the insurance company. Early surrender charges will apply. The Guaranteed Pooled Fund uses a separate account to hold assets as collateral for the guarantees made under the group annuity contract. The fund is subject to the risk that the insurance company providing the guarantee of principal and/or interest will fail to meet its commitments

13 Pros & Cons Fixed Rate Investments: Offer a guaranteed rate of return Currently offer a low rate of return Difficult to keep pace with inflation Any guarantees are backed by the financial strength of the insurance company. Early surrender charges may apply.

14 Pros & Cons Variable Investments Designed to keep pace with inflation Requires Investor/Advisor Attention Potential loss of principle Fees and Charges The benefits of a tax deferral in an annuity do not apply to contracts purchased as an Individual Retirement Annuity (IRA) or inside some other tax-qualified retirement plan because these plans already have tax deferred status. Before investing, carefully read the prospectus(es) or summary prospectus(es) which contain information about investment objectives, risks, charges, expenses and other information all of which should be carefully considered. For current prospectus(es) call (800) Investing involves risk. The investment return and principal value will fluctuate and, when redeemed, the investment may be worth more or less than the original purchase price. It should be noted that past performance does not indicate future results.

15 Meeting the Challenges To meet these challenges, consider investments with these features: Safety Guarantees Accessibility Guaranteed Lifetime Income RMD Solutions Legacy Planning

16 A Proven Approach Laddering Strategy A simple laddering strategy may be a great way to ensure that you are making the most of your Goal. Determine Time Horizon Determine Objective Determine Risk Tolerance

17 A Common Example. An educator, 60 years of age with an FRS pension benefit of $2,400 per month. Exits the DROP Program* with a $160,000. Sick Leave Balance of $40, (b)/IRA balance of $100,000. The total Retirement Nest Egg = $300,000** *The Deferred Retirement Option Program (DROP) provides eligible FRS participants with an alternative method for payment of your retirement benefits for a specified and limited period. Under this program, you stop earning service credit toward a future benefit and your monthly retirement benefit is paid into the FRS Trust Fund earning interest while you continue to work for an FRS employer. Upon termination, your DROP account is paid to you as a lump sum payment, a rollover or a combination of the two. **This example is for illustrative purposes only, and is NOT an indication or guarantee of past or future performance of investment choices. Strategies suggested may not return the results illustrated as strategies and risks will differ from client to client.

18 Hypothetical Illustration of Laddering Strategy* Bucket # 1 BENCOR Bucket #2 Multi-Year Guaranteed Product Bucket #3 Market Performance and Inflation Protection Bucket #4 Variable or Immediate Annuity $50,000 $40,000 $60,000 $150,000 *This example is for illustrative purposes only, and is NOT an indication or guarantee of past or future performance of investment choices. The number of buckets may vary depending on individual situation. Strategies suggested may not return the results illustrated as strategies and risks will differ from client to client.

19 BUCKET #1 Use the BENCOR Guaranteed Pooled Fund: Common Uses: Short Term Spending (Next 5 years until bucket 2 is 100% Accessible) To Bridge the Gap Between Retirement and Social Security Pay for Health Insurance Cost Home Repairs Travel Unexpected Expenses The Guaranteed Pooled Fund is a pooled separate account offered through Transamerica Financial Life Insurance Company (TFLIC), 4 Manhattanville Road, purchase, NY 10577, which provides the guarantee of principal and interest. TFLIC s claims paying ratings are: Standard & Poor s: AA: (Very Strong); Moody s: A1: (Good); A.M. Best: A+: (Excellent) Ratings do not imply approval of the group annuity product, nor do they refer to performance of the separate account The Guaranteed Pooled Fund uses a separate account to hold assets as collateral for the guarantees made under the group annuity contract. The fund is subject to the risk that the insurance company providing the guarantee of principal and/or interest will fail to meet its commitments..

20 BUCKET #2 Multi-Year Guaranteed Product Earn An Enhanced Rate The longer you are willing to commit your money, the higher the rate you can obtain.* Let this Money grow with the enhanced rate for the specified term then re-evaluate your needs upon the end of the specified term. Multi-year guarantee annuity, also referred to as a modern annuity, is a fixed annuity on which the current interest rate is guaranteed for a period longer than one year. Although some multi-year guarantee annuities offer a two-year rate period, these contracts generally offer current interest rates for periods of three to ten years. They are designed specifically to appeal to those individuals who might be interested in certificates of deposit. Strategies suggested will differ from client to client. Guarantees are backed by the financial strength and claims-paying ability of the Insurance Company. NOT an indication or guarantee of past or future performance of investment choices. During the multi-year guarantee period, surrender charges may apply.

21 BUCKET #3 Market Performance and Inflation Protection Allocating an appropriate amount of your assets into the market may be a great way to hedge against inflation and provide potential long term growth. Returns from the market may substantially out perform those from fixed accounts. PlanMember Services offers managed accounts with actively managed model portfolios. Before investing in any mutual funds carefully read the prospectus(es) or Summary prospectus(es) which contain information about investment objectives, risks, charges, expenses and other information all of which should be carefully considered before investing. For current prospectus(es) or Summary prospectus(es) call Investing involves risks. The investment return and principal value will fluctuate, and when redeemed, the investment maybe worth more or less than the original purchase price. An annual asset-based fee will apply as well as other internal expenses and fees of the funds. Asset allocation or use of an investment advisor does not ensure a profit or guarantee against loss.

22 BUCKET #4 INCOME FOR LIFE Optional Rider Contractually Guaranteed Formulas Works Like the FRS Age Driven Underlying Investment Choices Fixed Variable Guaranteed monthly income is based on current values as well as the terms and conditions of the annuity contract or optional rider. These advantages may have additional fees and can only be fully realized if you follow the benefit s rules and hold annuity through surrender period. Cash flow and principal based on the claims paying ability of the issuing company. Purchase of an annuity contract through a qualified plan does not provide any additional tax-deferral benefits beyond those already provided through the plan. If you are purchasing an annuity contract through a plan, you should consider purchasing it for its death benefit, annuity options, and other non-tax-related benefits. Income for Life strategies have risks will differ from client to client.

23 BUCKET #4 INCOME FOR LIFE Guarantees Income for the Life of one or Both Spouses Remaining Value Passes to Beneficiaries RMD Friendly Solution IRAs and other qualified plans already provide tax-deferral like that provided by an annuity. Additional features and benefits such as contract guarantees, death benefits and the ability to receive a lifetime income are contained within the annuity for a cost. Please be sure the features and costs of the annuity are right for you when considering the purchase of the annuity. Income for Life strategies have risks will differ from client to client.

24 The Next Step Set an Appointment to Visit Our local BENCOR Office- 850 NW Federal Hwy Stuart, FL Turn Your Retirement Accounts Into A Retirement Plan!!!

25 Thank You for Attending We Hope That You Enjoyed the Presentation Representative is registered with and offers only securities and advisory services through PlanMember Securities Corporation, a registered broker/dealer, investment advisor and member FINRA/SIPC Carpinteria Ave, Carpinteria, CA , (800) BENCOR, Inc. and PlanMember Securities Corporation are independently owned and operated. PlanMember is not responsible or liable for ancillary products or services offered by BENCOR, Inc.