RETIREMENT SAVINGS STRATEGIES

Transcription

1 RETIREMENT SAVINGS STRATEGIES Client logo placeholder Rep Name

2 [Advisor Disclaimer Here]

3 WHY ARE WE HERE? YOUR SAVINGS TODAY BECOMES YOUR INCOME IN RETIREMENT. ACCUMULATION DISTRIBUTION Today Retirement

4 COMPOUNDING SAVING $500 PER MONTH Years of Saving 10 years no contributions Account Value at Age 65 $918,000 no contributions 35 years $861, years $1,779,000 Age This chart is for illustrative purposes only and is not meant to represent the performance of any specific investment option. Final account balances are rounded to the nearest thousand. Assumes $500 invested each month in a tax-deferred account and a 7% annual rate of return. Investing involves risk including possible loss of principal. Source: T. Rowe Price

5 PLAN FEATURES Plan Eligibility Contribution Limits You are eligible to participate in the plan [plan specific detail] Contribution Types Company Contributions Vesting Schedule

6 PLAN FEATURES Plan Eligibility Contribution Limits Contribution Types Company Contributions Vesting Schedule You can contribute: Between [xx%] and [xx%] of your pay to your plan Up to the IRS limit: $18,000 for 2016 Up to an additional $6,000 if you will be age 50 or over by the end of the year and contribute the maximum allowed by your plan

7 PLAN FEATURES Plan Eligibility Contribution Limits You can make before-tax [and/or Roth and/or aftertax] contributions to the plan Contribution Types Company Contributions Vesting Schedule

8 PLAN FEATURES Plan Eligibility Contribution Limits Contribution Types Company Contributions Company Contribution: [Variable: based on plan design] [Contribution type] [xx%] [xx%] Years of service [xx years] [xx years] [further plan specific detail on contribution type] Vesting Schedule

9 PLAN FEATURES Plan Eligibility Contribution Limits Contribution Types Company Contributions Company Contribution: Vested percentage [xx%] [xx%] [xx%] [xx%] [xx%] Years of service [xx years] [xx years] [xx years] [xx years] [xx years] You are always 100% vested in the salary deferral portion of your account. Vesting Schedule

10 RETIREMENT SAVINGS: HOW MUCH? PLEASE CHOOSE THIS OR THE NEXT SLIDE TO KEEP If you are: Aim to have: TRY TO SAVE AT LEAST 15% 30 half of your salary saved today 35 1x your salary saved today 40 2x your salary saved today 45 4x your salary saved today 50 6x your salary saved today At minimum GET THE FULL MATCH Increase contributions by 2% annually to build toward 15% target 55 8x your salary saved today 60 10x your salary saved today 65 12x your salary saved today

11 RETIREMENT SAVINGS: HOW MUCH? If you are: Aim to have: TRY TO SAVE AT LEAST 15% 30 half of your salary saved today 35 1x your salary saved today 40 2x your salary saved today 45 4x your salary saved today 50 6x your salary saved today At minimum SAVE AT LEAST 6% Increase contributions by 2% annually to build toward 15% target 55 8x your salary saved today 60 10x your salary saved today 65 12x your salary saved today

12 ANNUAL CONTRIBUTION INCREASES $800,000 $600,000 Salary $40,000 6% contribution rate 7% annual return 3% annual salary increase $400,000 2% annual contribution increase with a 15% cap $759,014 $200,000 $333,432 $ This is a hypothetical example for illustrative purposes only and is not meant to represent the investment return of any of your plan s options. Your situation will vary. Investing involves risk including possible loss of principal. Source: T. Rowe Price

13 PLAN FEATURES: INVESTMENT OPTIONS Stock Mutual Funds/Trusts Bond Mutual Funds/Trusts Money Market Stable Value Fund/Trust [xx] Target Date Investments

14 PLAN FEATURES: INVESTMENT OPTIONS Stock Mutual Funds/Trusts Bond Mutual Funds/Trusts Money Market Stable Value Fund/Trust [xx] Target Date Investments

15 PLAN FEATURES: INVESTMENT OPTIONS Stock Mutual Funds/Trusts Bond Mutual Funds/Trusts Money Market Stable Value Fund/Trust [xx] Target Date Investments

16 PLAN FEATURES: INVESTMENT OPTIONS Stock Mutual Funds/Trusts Bond Mutual Funds/Trusts Money Market Stable Value Fund/Trust [xx] Target Date Investments

17 ASSET ALLOCATION AGE 20 90% 100% Stocks 0% 10% Bonds The allocations are age-based only, so you may need to make adjustments based on your personal risk tolerance.

18 ASSET ALLOCATION AGE 30 90% 100% Stocks 0% 10% Bonds The allocations are age-based only, so you may need to make adjustments based on your personal risk tolerance.

19 ASSET ALLOCATION AGE 40 80% 100% Stocks 0% 20% Bonds The allocations are age-based only, so you may need to make adjustments based on your personal risk tolerance.

20 ASSET ALLOCATION AGE 50 60% 80% Stocks 20% 30% Bonds 0% 10% Money Market/ Stable Value The allocations are age-based only, so you may need to make adjustments based on your personal risk tolerance.

21 ASSET ALLOCATION AGE 60 50% 65% Stocks 25% 35% Bonds 5% 15% Money Market/ Stable Value The allocations are age-based only, so you may need to make adjustments based on your personal risk tolerance.

22 ASSET ALLOCATION AGE 70 20% 50% Stocks 35% 50% Bonds 15% 30% Money Market/ Stable Value The allocations are age-based only, so you may need to make adjustments based on your personal risk tolerance.

23 ASSET ALLOCATION age 20 age 30 age 40 age 50 age 60 age 70 90% 100% Stocks 90% 100% Stocks 80% 100% Stocks 60% 80% Stocks 50% 65% Stocks 20% 50% Stocks 0% 10% Bonds 0% 10% Bonds 0% 20% Bonds 20% 30% Bonds 25% 35% Bonds 35% 50% Bonds 0% 10% Money Market/Stable Value 5% 15% Money Market/Stable Value 15% 30% Money Market/Stable Value Stocks Bonds Money Market/Stable Value The allocations are age-based only, so you may need to make adjustments based on your personal risk tolerance.

24 TARGET DATE INVESTMENT OPTIONS One Investment Multiple Portfolios Combines multiple investment portfolios into a single investment Pre-allocated Underlying investment portfolios allocated based on target year Automatically Adjusts Typically become more conservative over time Single Investment Designed to function as a complete portfolio The principal value of the target-date investments is not guaranteed at any time, including at or after the target date, which is the approximate date when investors plan to retire. These investments typically invest in a broad range of underlying investments that include stocks, bonds, and short-term investments and are subject to the risks of different areas of the market. In addition, the objectives of target-date investments typically change over time to become more conservative.

25 PLAN FEATURES Withdrawals Loans Under specific circumstances you have access to your vested account balance Beneficiaries

26 PLAN FEATURES Withdrawals You have the option to borrow from your vested account balance Loans Beneficiaries

27 PLAN FEATURES Withdrawals Loans In the event of your death, your designated beneficiaries will inherit your account Beneficiaries

28 IT S YOUR FUTURE.

29 SAVE ENOUGH FOR RETIREMENT.

30 WE RE HERE TO HELP.

31 CXX0P4OCK_SavingsStrategy phone number /website

32 LINKED SLIDES These slides remain at the back of the presentation and can be linked from within the presentation (via gears) if the rep feels it s necessary to support their talking points

33 AUTO-ENROLL

34 AUTO-REBALANCING Automatically rebalances your account to your selected investment allocation strategy. Lets you select quarterly, semiannual, or annual rebalancing. Helps you stay in line with your risk tolerance and helps reduce long-term account volatility.

35 AUTO-INCREASE Automatically increases your payroll deduction each year so you don t have to worry about doing it yourself. You choose the amount of the increase and the month you want it to occur. There is less time required to manage your account.

36 REFERENCE PLAN FEATURES CORE PRESENTATION FOR SLIDE VARIATIONS REFERENCE MINI MODULES DECK FOR APPROVED SLIDE ADDITIONS AND SALARY VARIATIONS FOR EXAMPLES CXX0P4OCK_SavingsStrategy 2016-AX-19861