Welcome! We re here to help you get a head start on your financial future.

Transcription

1 Welcome! We re here to help you get a head start on your financial future. 1

2 Today I ll discuss: What the updates mean How the transition will work Updating your TIAA-CREF account Advantages of participating in your retirement program Creating your retirement strategy Who is TIAA-CREF? Learn more 2

3 It s important to note that most aspects of your retirement program won t change, such as your contribution rates, eligibility requirements, vesting schedule, and other aspects. 3

4 Your updated retirement program will give you new investment options, personalized investment advice on the plan s investment options and updated services to help you pursue your retirement goals. 4

5 New Mexico State University has created a new investment menu with a wide range of options in a variety of asset classes. For the specific asset classes available to you, visit the retirement plan website. 5

6 Updating your TIAA-CREF Account Now let's discuss how to update your TIAA-CREF retirement account. 6

7 First of all, you have to know how to access and update your account. Fortunately, it couldn t be easier. You can do it by phone, online or during your one-on-one sessions with a TIAA-CREF Financial Consultant. 7

8 If you prefer to manage your account online, go to There you will have access to your personal account, information on new investment options, as well as retirement planning tools. To update your account, you will need your current login information. If you are new to TIAA-CREF, you will need to establish a user ID and password to access your account online. 8

9 PLAN WEBSITE - HIGHLIGHTING TOOLS BEING DISCUSSED Your online account gives you your current investment choices and lets you manage your portfolio, including reallocating investments, setting up distributions and updating beneficiaries, to name a few things. The site also alerts you to any outstanding action items on your account. 9

10 Let s say you wanted to update your investment choices. Select Manage My Portfolio and then choose "Change My Investments" or "Change Allocation of Future Contributions." Select the retirement plan you want to change, choose your new investment choices and input the corresponding percentage to each investment option. That s it. You ll receive a confirmation for your updates. If you want to learn more about the different investments available to you, select the Research & Performance link. From here, you can view historical performance charts, fees and other information about your investment options, and get the latest market updates. 10

11 Let s say you want to update your beneficiaries. Choose I want to update my beneficiaries and input the information required. You ll receive a confirmation for your updates. 11

12 Remember, you can also update your portfolio by phone or in person by scheduling an individual counseling session. 12

13 With our online tool, 360-degree Financial View, managing your money just got easier. You can: Link all of your accounts to 360 Financial View and get a complete picture of your finances. View all your accounts on one screen (Checking, Savings, Retirement, Credit Cards, Student Loans). Track your spending. With just one click you can see all your spending by category in an easy-view pie chart that lets you track where your money is going. Create a budget. Use our tools to set budget goals for your spending. 13

14 PLAN WEBSITE - HIGHLIGHTING TOOLS BEING DISCUSSED There are some major advantages to participating in the plan. 14

15 When you make voluntary taxdeferred contributions to your plan, you can invest more for retirement, lower your current taxable income by making tax-deferred contributions directly from your paycheck, and get tax-deferred growth on any earnings. 15

16 It s important to start making contributions early because the earlier you start, the more you can potentially accumulate. For example, as this slide shows, based on a 6% hypothetical rate of return, to reach a goal of $350,000 at 65, you need to invest $254 a month from age 30. If you wait till you re 50, you ll need to invest $1,214 a month. 16

17 Creating your retirement strategy Now let s talk about charting a new course. You should start with a basic decision: Do you prefer one-step investing or active investing? If you prefer a hands-off approach to managing your portfolio, select a Lifecycle Fund from the investment options. With Lifecycle Funds, you only need to select the fund closest to the year of your expected retirement and the fund s professional managers will do the rest. If you re comfortable choosing investments and managing your own portfolio, active investing lets you choose from a wide range of investment options offered within your 17

18 plan to build a diversified retirement savings portfolio. 17

19 By choosing the One-Step option, contributions will be allocated to a lifecycle fund with a target date closest to your 65th birthday, or whenever you wish to withdraw your money. Each lifecycle fund consists of mutual funds invested in a broad range of stocks and bonds. As you get closer to retirement, these age-based funds automatically adjust the mix of stocks, bonds and other assets to a more conservative portfolio. 18

20 Simply pick the fund closest to your anticipated retirement date, or the date you want to start withdrawing. 19

21 Professional managers will automatically adjust your portfolio s mix of stocks, bonds and other assets. As with all mutual funds, the principal value of the lifecycle fund isn t guaranteed and may fluctuate with market performance. Also, the target date of a lifecycle fund is an approximate date when investors may plan to begin withdrawing from the fund. If you re comfortable choosing investments and managing your own portfolio, active investing lets you choose from a wide range of investment options offered within your plan to build a diversified retirement savings portfolio. 20

22 If you re comfortable choosing investments and managing your own portfolio, active investing lets you choose from a wide range of investment options, building a diversified retirement savings portfolio. You can choose any of the plan s many new options. You can use TIAA- CREF s online Asset Allocation Evaluator at Or get investment assistance from a TIAA-CREF Financial Consultant, either in person, online or on the phone. 21

23 Now, let's talk briefly about TIAA- CREF, our history and our mission. 22

24 TIAA-CREF is the leader in the notfor-profit retirement market. We re dedicated to serving the needs of our participants, like you, who serve the good through their work in the academic, medical, governmental, cultural and research fields. And we're trusted by a host of premier institutions across the nation because of our focus on helping people pursue their retirement investment goals. 23

25 TIAA was founded in 1918 to help provide retirement security and today serves those in the academic, medical and cultural fields. In 1952, we added CREF, enabling participants to invest their retirement funds in a broadly diversified variable annuity account. That s the TIAA- CREF we are today. 24

26 So what makes us a leader? Serving almost 4 million individuals, more than 15,000 organizations, managing $564 billion in total assets, and nearly 100 years of experience. 25

27 Want to learn more? Here s how. 26

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