38.00% loss potential 18.00% loss potential

Transcription

1 1 Your Retirement Goal Current Retirement Plan VS Suggested Retirement Plan $1,671 /month PROJECTED RETIREMENT INCOME AT THE AGE OF 64 * $4,062 /month 31 % Current Income 75 % Current Income 3.00 % SAVINGS RATE 8.00 % AGGRESSIVE INVESTMENT MODERATE 38.00% loss potential 18.00% loss potential Your Managed Portfolio The chart below shows the anticipated asset allocation of your Managed Portfolio. ** Your portfolio will be managed, monitored, and rebalanced as needed without requiring any action on your part. As your investment balances grow and your situation changes, your investments may be moved to a different managed portfolio, often one with less risk. Stable Value Fixed Interest Fund % Intermediate-Term Bond BlackRock Total Return Large Value MFS Value 2.00 Large Blend S&P 500 Index (Northrn Trst) Large Growth T. Rowe Price Blue Chip Growth Mid Value RidgeWorth Mid Cap Value 3.00 Mid Growth T. Rowe Price Mid Cap Growth 3.00 Small Value Franklin Small Cap Value 3.00 Small Growth International Large Value American Century Small Cap Growth 3.00 MFS International Value 1.00 International Large Growth EuroPacific Growth 9.00 Emerging Markets Oppenheimer Developing Markets 3.00 You are encouraged to periodically revisit the online tool to update your financial status and review your Suggested Strategy. For more details about the management process, please see "Important Information about This Analysis" on the following pages. *Both your Current and Suggested Plan have a >75% probability of success. For details of how this is determined, please see ERS Methodology Document. ** Because of daily market movement and/or manager trading, your portfolio will rarely have identical allocation. This is normal and to be expected.

2 2 Your Your helps resolve the difficult trade-off between spending today and funding a successful retirement. Your Suggested Strategy presents the best combination of retirement age, retirement income, current savings, and investment risk based on your goals and priorities and a set of relevant assumptions. This analysis considers required employer contributions and matches as well as legally required plan contribution limits. Outstanding loans are NOT included in your account or Suggested Strategy. This analysis includes data from multiple plans in which you participate. Your Goals and Priorities Retirement Age The age you would like to enter retirement Ideal: 62 Acceptable: 67 Weight: 45.48/100 Retirement Income The portion of your pre-retirement salary you'll need during retirement Ideal: % Acceptable: % Weight: 26.30/100 Savings Rate The portion of your salary you are willing to contribute each year Ideal: 3.00 % Acceptable: 8.00 % Weight: 14.11/100 Investment Risk The loss you would be willing to accept in a poor year Ideal: 16.00% Loss Acceptable: 32.00% Loss Weight: 14.11/100 Your Information and Assumptions Your Situation Date of Birth 10/01/1970 Salary (Annual) $ 65, Account Balance $ 49, Pre-Tax Deferral 8.00 % Roth Deferral 0.00 % After-Tax Deferral 0.00 % Assumptions Life Expectancy 85 Inflation Rate 2.00 % Salary Increase Rate 3.00 % Social Security (monthly) $ 1, Total Pensions (monthly) $ Other Retirement Assets $ 28,299.00

3 3 IMPORTANT INFORMATION ABOUT THIS ANALYSIS Please read carefully, this contains important information about your retirement strategy. This report is provided as an educational service by Envestnet Retirement Solutions, LLC ("ERS", "we", "us", or "our"), and offered to you by your plan provider or plan sponsor (Plan Provider(s)). ERS is a registered investment advisor with the U.S. Securities and Exchange Commission ("SEC") under the Investment Advisors Act of ERS provides the educational and/or investment advisory services (the "Services") your Plan Provider(s) have chosen to offer you. The services are offered through the ERS Retirement Platform and may include one or more of the following: ERS Guidance ("Guidance"), ERS Managed Accounts ("Managed Portfolios"), or ERS QDIAs ("QDIAs"). ERS always provides our Services to you in good faith, and we use reasonable care, consistent with industry practices of similarly situated advisors, in providing the Services. ERS provides our Services with that degree of prudence, diligence, care, and skill which a prudent person rendering similar services as an investment advisor would exercise under similar circumstances. ERS does not offer any legal, analysis or advice regarding the potential local, state, or federal tax consequences of transactions resulting from our Services. ERS cannot and does not make any guarantee about the future performance or profitability of your retirement plan investments, nor do we promise that our investment allocation recommendations will be profitable. Like all investments, the investments available in your retirement plan are subject to a variety of risks including market, currency, and political risks. Please understand past performance of a mutual fund, stock, or other investment vehicle does not guarantee its future performance. you should only use the strategies and suggestions in this report in making decisions about the allocation of assets in your retirement plan(s); they are not intended as investment advice for an account that will not be used by you for non-retirement purposes. The projections, recommendations, and suggestions used to generate the strategies in this report are based on information from your Plan Provider(s) and you.your Plan Provider(s) specify assumptions about employer contributions, employer matching, default participant retirement objectives, and participant savings rates. Additionally, life expectancy and Social Security benefits are estimated based on Social Security Administration actuarial tables and benefit estimation methodologies. The benefit estimations are not identical to those of the Social Security Administration and are not developed or endorsed by the Social Security Administration. If you have access to the ERS QuILTS online system (the Software), it is important that you provide complete and accurate information regarding your retirement objectives. You should also update this information when your personal or financial circumstances change. The investments recommended in this report are a part of an overall savings and investment strategy designed to assist you in achieving your retirement objectives. ERS applies generally accepted investment theories to allocate your retirement plan assets to achieve varying degrees of long-term appreciation and capital preservation though a mix of equity and fixed income exposures based on your age, target retirement date, target retirement income, and savings rate. Suggested and managed investments are diversified so as to minimize the risk of large losses. Your investment strategy (including your retirement plan investments) is developed using ERS's proprietary ERS QuILTS software using the inputs provided by you and your Plan Provider(s). * The Software analyzes hypothetical combinations of retirement goals (retirement age and retirement income) and actions (savings rate and investment portfolios). Thousands of combinations of these four factors are evaluated to determine the statistical likelihood that the strategy will fully fund your retirement through your life expectancy. * These models and materials are based on generally accepted investment theories that take into account the historic return of different asset classes (e.g., equities, bonds, or cash) over defined periods of time. * All material facts and assumptions on which the materials are based can be found in the ERS Methodology Document. * There is an objective correlation between the suggested asset allocations and the information and data supplied by the participant or beneficiary if such information is supplied. * The plan may have other investment alternatives having similar risk-and-return characteristics to those suggested. Information about these and all alternatives offered under the plan may be found in the participant materials provided by your Plan Provider(s).

4 4 * In adopting any specific retirement strategy including asset allocation, you or you beneficiaries should consider your other assets, income, and investments (e.g., equity in a home, IRA investments, savings accounts, and interests in other qualified and non-qualified plans) in addition to your interests in the plan. The projections or other information generated in this analysis regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. This analysis does not estimate the performance of specific mutual funds or investments in your retirement plan. Each of your investments is categorized into one or more of the asset classes developed by ERS and/or into asset classes generated by your Plan Provider(s). The result is an "asset allocation" for your investments. Past performance of any investment product or service is no guarantee of future results. Chance of success and loss potential are based on statistical analysis and are sensitive to small changes in inputs and assumptions. Your actual results may be different. Chance of success is determined via a Monte Carlo simulation that generates thousands of hypothetical returns to estimate potential performance during your lifetime. The Monte Carlo simulation relies on the inputs and assumptions provided by you and your Plan Provider(s) combined with capital market assumptions - estimated investment returns, standard deviations, and correlations - to generate hypothetical returns. ERS develops capital market assumptions and periodically updates them based on historical and current economic conditions and historical returns of "asset classes" which represent securities with similar characteristics. Your Plan Provider(s) may also provide some or all of the capital market assumptions used in this analysis. Investment risk is an estimate of the size of loss that could occur in a poor year for your investment allocation. It is generated using the capital market assumptions for the asset classes represented among your retirement plan investments. Statistically there is a 2% (1-in-50) chance each year of a loss this size or greater. The loss potential displayed is not the worst case scenario; your actual investment returns may be lower. Your Suggested Strategy is selected from among hundreds of potential combinations of retirement ages, retiremet income replacement levels, savings rates,and investment portfolios with (1) an acceptable chance of success and (2) the highest "Satisfaction" score. Satisfaction is determined by assessing retirement age, retirement income, savings rate, and investment risk for your current strategy and each potential Suggested Strategy relative to "ideal" and "acceptable" levels and "priorities" among each of the four objectives. Priorities for all objectives are assumed to be equal when generating the analysis without specific participant inputs. If you have access to the ERS QuILTS software, you may customize these values to reflect your unique preferences. The Suggested Strategy is selected from those that are expected to meet a minimum chance of success (as designated by your Plan Provider(s)) based on a comparison of the estimated Satisfaction provided by those strategies. Each time you use the Software, it is your responsibility to verify the accuracy and appropriateness of the inputs, assumptions, and other information (including goals and priorities) used in the analysis. Your results may vary over time due to changes in your personal situation, changes in objectives, priorities, and assumptions, or updates to the Software. It is advisable that you review and update these items periodically to reassess your retirement prospects. ERS Managed Portfolios Managed Portfolios is a discretionary asset management program designed for retirement plan participants who are seeking a financial professional to manage the assets within their account(s). If your plan offers this Service and if you elect to utilize Managed Portfolios, ERS will act as your investment advisor with full decision-making authority over the investments in your account(s) without having to consult with you in advance. We will have no responsibility or authority over (1) those assets that are subject to Plan Sponsor restrictions, (2) those assets held in a self-directed window account if available under your plan, (3) restricted employer company stock held in your account(s), and (4) any assets held outside of your account(s). If you participate in Managed Portfolios, ERS acknowledges that we are an "investment manager" (as defined in ERISA's Section 3(38)) for your account(s) and a fiduciary of the plan to the extent we have decision-making authority over the investments in your account(s) and we shall act with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of like character and with like aims. ERS manages your Managed Portfolio by applying generally accepted investment theories, allocating your assets in your account to achieve varying degrees of long-term appreciation and capital preservation through a mix of equity and fixed income exposures based on your age, target retirement date, target retirement income, and savings rate. Your Managed Portfolio is part of your Suggested Strategy as described above. ERS's goal is to help you achieve your retirement objectives while minimizing investment risk.

5 5 In addition, ERS will monitor your Managed Portfolio's performance, periodically rebalance it back to its target allocations, and, if your personal or financial circumstances lead to a different Suggested Strategy, move your investments to a different Managed Portfolio. In general, we will reduce your investment risk as you reach your objectives and draw nearer to retirement age. You may opt-out of your Managed Portfolio at any time by making the election in the Software or notifying your Plan Provider(s) in writing, through their software, or any other way they designate. At that point, ERS will no longer monitor, rebalance, or otherwise manage your account. You will be responsible for the investment, rebalancing, and monitoring of your account. You will, however, still receive the Services delineated of ERS Guidance as outlined above. If, at a later date after opting-out of ERS Managed Portfolios, you decide to again engage ERS for this Service, you may do so by again opting-in to ERS Managed portfolios through the ERS QuILTS software. All of the management Services described above in this section will then again be provided by ERS for your retirement plan investments. Envestnet Retirement Solutions, LLC is a majority owned subsidiary of Envestnet, Inc ERS, Inc. All rights reserved.

6 6 IMPORTANT INFORMATION ABOUT THIS ANALYSIS About MassMutual Founded in 1851, MassMutual is a leading mutual life insurance company that is run for the benefit of its members, and participating policy holders. The company has a long history of financial strength and strong performance, and although dividends are not guaranteed, MassMutual has paid dividends to eligible participating policyholders consistently since the 1860s. With whole life insurance as its foundation, MassMutual provides products to help meet the financial needs of clients, such as life insurance, disability income insurance, long term care insurance, retirement/401(k) plan services, and annuities. In addition, the company's strong and growing network of financial professionals helps clients make good financial decisions for the long term. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. MassMutual is headquartered in Springfield, Massachusetts and its major affiliates include: Babson Capital Management, LLC, Baring Asset Management Limited, Cornerstone Real Estate Advisers, LLC, the First Mercantile Trust Company, MassMutual International, LLC, MML Investors Services, LLC, Member FINRA and SIPC, OppenheimerFunds, Inc., and the MassMutual Trust Company, FSB. MassMutual's Retirement Services Division has been serving retirement plans for more than 65 years. It offers a full range of products and services for corporate, union, nonprofit, and governmental employer's defined benefit, defined contribution and nonqualified deferred compensation plans. It serves approximately 3 million participants. For more information, visit or find MassMutual on Facebook, Twitter, LinkedIn, YouTube, and Google+. For information regarding MassMutual's Retirement Services Division, you may also visit massmutual.com/retire or find us on Facebook.com/ RetireSmart and YouTube.com/RetireSmart.