JULY s Retirement Readiness Tools & Resources

Transcription

1 JULY s Retirement Readiness Tools & Resources

2 JULY Overview Founded 1994 / Privately Owned National Recordkeeping Firm 3,300 Clients 92,000 Participants $2.8 Billion In Plan Assets Plan Sizes $0 to $30 Million SSAE 16 / CEFEX Certified Over 45 Industry Certifications Bundled or Local TPA Option Fall 2015 data reflected above. 2

3 How We Support Advisors Advisor-Centric National Sales Support Independent Plan Design / Illustrations Webinars / Education Deep Consulting Expertise Hands-On Setup and Service Dedicated CSM Advisor-Presented Fiduciary Options 3

4 Sponsor/Participant Services Dedicated Client Service Manager Plan Implementation Coordination Participant Call Center Online and Kit Enrollment Support Risk Questionnaires Sponsor and Participant Websites Participant Retirement Readiness Tool Automatic Account Rebalance Options Newsletters and Required Notices 4

5 myfuture Retirement An Integrated Retirement Planning Tool

6 Account Summary Slide Tool Prominently located on Participant Summary page Projects monthly retirement income from plan assets All estimates are in today s dollars factoring in inflation Models the effects of increasing contribution amounts Adjust retirement date and life expectancy to view effects on retirement income projections 6

7 Slide Tool Overview Use the slider to model the effect of increasing contribution amounts Click here to download a PDF version of myfuture Retirement Guide. 7

8 Change Assumptions Update the retirement age Set longevity funding target 8

9 Change Assumptions Additional details on the assumptions utilized in the calculations Utilize the Detailed Analysis to adjust these assumptions 9

10 Detailed Analysis Tool Update detailed personal information about participant and spouse Modify portfolio risk assumptions before retirement Personalize anticipated tax rates before and during retirement Estimate Social Security benefits and input other accounts Determine best sustainable withdrawal rate during retirement Budget comparison of current pay/expenses versus retirement Comprehensive report analyzing the participant s retirement path 10

11 Detailed Analysis Tool Select Analysis to view detailed tool Accept the disclosures and select Continue 11

12 About You Confirm basic information about participant Set marital status Add spouse s information 12

13 Setup Set Retirement Age and Funding Date (estimate available via expectancy tables) Adjust annual income Select pre-retirement portfolio risk Update effective income tax rates and inflation 13

14 Income Estimate Social Security monthly benefit and set age for payments to begin Add additional pensions, annuities, or other retirement income sources 14

15 Assets Imports sources and balances from Participant website Adjust contribution amounts, rate of increase, and source descriptions Add other investment accounts 15

16 Risk Assessment Risk Tolerance The amount of risk that an investor is comfortable taking or the degree of uncertainty that an investor is able to handle How participant feels or thinks about risk Focused on participant s perception of risk not the risk required Risk Capacity The amount of risk that the investor "must" take in order to reach financial goals Uses hypothetical scenarios to show the likely end result Focused on desired results rather than desired risk 16

17 Withdrawal Rate Illustrates monthly income in different probability and risk scenarios Provides estimated total account balance at retirement Display withdrawal rate as dollars or percentage 17

18 Comparison: Take Home Pay Illustrates income during retirement versus current take home pay Adjustable tax rates for each period 18

19 Comparison: My Budget Evaluate current monthly expenses versus retirement expenses Designate a portion of each expense as need versus want 19

20 What if Illustrate the effect of increased contribution amounts to projected income Create a detailed report summarizing the retirement readiness plan 20

21 Detailed Analysis Report Select Create Report to include all available sections Participant can customize to include only the preferred items Double-click to view a sample report 21

22 Detailed Analysis Report Retirement Timeline for participant and spouse Average monthly income and the sources Portfolio compositions for pre-retirement and post-retirement 22

23 Detailed Analysis Report Projected account value at retirement Timeline of annual account balance 23

24 Detailed Analysis Report Retirement balance details Withdrawal rate during retirement Monthly income from retirement plan assets Total monthly income from all sources 24

25 Detailed Analysis Report Life expectancy calculations Probability of longer than expected retirement 25

26 Detailed Analysis Report Plan summary Table illustrating selected risk and probability 26

27 Withdrawal Rate Calculation This tool utilizes Withdrawal Rate to choose a Sustainable Withdrawal Rate (SWR). This SWR will be used to convert assets available at retirement into an income stream during retirement. Participants can select a SWR by clicking any rate box and the estimated monthly income dollar amount will calculate and display. The SWRs are calculated from a series of Monte Carlo analyses. Randomized returns are used in each portfolio over the retirement years to determine the maximum amount that could be withdrawn from the portfolio and still provide the Probability of Success specified in the column headers. The maximum sustainable withdrawal rate expressed as a percentage is shown for each portfolio and probability of success. 27

28 Disclaimers July Business Services, its affiliates, and third-party vendors provide retirement readiness projections and financial calculators as interactive tools that estimate hypothetical investment outcomes-investment results and outcomes are NOT guaranteed and will vary. These projections are for illustrative purpose and may not include other fees and earnings applicable to your particular situation. Additional monthly contribution amounts used for retirement income modeling do not reflect contribution limitations that may be imposed by your plan. 28

29 JULY App

30 JULY App Search JULY 401k and download the app best suited for your mobile device View account information, perform simple transactions and access retirement planning tools Received the 2015 DALBAR Seal of Excellence for Participant Technology Innovation 30

31 JULY App Experiment with different contribution rates and see what your retirement savings may look like over time These fun tools can help ensure you are ready for retirement 31

32 Participant Website Calculators > Resource Center > Plan Participants

33 Savings Calculators Are my current retirement savings sufficient? Social security retirement income estimator I'm retired, how long will my savings last? When should I begin saving for retirement? 33

34 Account Evaluation Calculators Compare a Roth 401(k) to a Traditional 401(k) What will my qualified plan(s) be worth at retirement? How much retirement income may my 401(k) provide? What is the impact of increasing my 401(k) contribution? 34

35 Other Calculators What is my current year required minimum distribution? I'm self-employed, how much can I contribute to a retirement plan? 35

36 Q & A

37 Thank you!