University of Minnesota Retirement Plans Complete the application Match the results Complete the quiz Retirement for U THREE SIMPLE STEPS TO ENROLL
Need help? A Securian Plan Specialist can provide information that helps you select the investments that are right for you and also assist you with completing the forms. Call 1-800-421-3334 and press 0 to speak with a Plan Specialist or to schedule a personal meeting.
SECURIAN FINANCIAL GROUP, INC., Locally headquartered, national financial strength Since 1880, Securian Financial Group and its affiliates have provided financial security for individuals and businesses in the form of insurance, investments and retirement plans. Helping you along the way? Personal service: Our focus is on you and helping you make the most of your U of M retirement plan benefit. In fact, Securian is the only U of M retirement plan provider that has associates dedicated exclusively to meeting the needs of current and former U of M employees. We ll assist you with any questions or meet with you in person free of charge. Quality, well-known investments: You select investment options from recognized mutual fund companies. With access to well-known investment options, you ll have the tools to create a diversified investment portfolio. In addition, we offer assistance to help you select investments. Financial strength: According to the four major independent rating organizations that analyze the financial soundness of insurance companies, Securian Financial Group ranks among the most highly rated insurance groups in the country. For more information on our financial strength, visit umnplans.securian.com. 1
Why save in your U of M sponsored retirement plan? Your savings may grow faster Say you re in the 28 percent tax bracket and can save $2,500 a year. If you bypass the IRS and put that money into your plan, you get to invest all of it tax-deferred. In 30 years, your balance could grow to $310,492 before taxes assuming an 8% rate of return. Save that same $2,500 a year in a taxable account, and you could end up with much less $223,554. With tax-deferred compounding making your retirement dollars work harder, you can make a dramatic difference to your retirement savings over time! THE ADVANTAGES OF TAX-DEFERRED INVESTING $400,000 $300,000 Tax-deferred $310,492 $200,000 $100,000 0 Taxable $223,554 Year 1 Year 30 This hypothetical illustration assumes annual contributions of $2,500 and an average 8% annual rate of return compounded monthly. Withdrawals of earnings from the tax-deferred account will be subject to ordinary income tax and, if taken prior to age 591/2, a 10% federal tax penalty. Although the tax-deferred retirement plan has a maximum asset based administrative fee of.35%, this charge is not reflected in the hypothetical performance. If it had been reflected, the ending value of the tax-deferred investment would be lower. For the purpose of this illustration, the currently taxable investment returns reflect taxation at a hypothetical 28% tax bracket. However, lower maximum tax rates on capital gains and dividends would make the investment return for the taxable investment more favorable, thereby reducing the difference in performance between the accounts shown. Changes in tax rates and tax treatment of investment earnings may impact the comparative results. You should consider your personal investment horizon and income tax bracket, both current and anticipated when making an investment decision as these may further impact the results of this comparison. This information is a general discussion of the relevant federal tax laws provided to promote ideas that may benefit a taxpayer. It is not intended for, nor can it be used by any taxpayer for the purpose of avoiding federal tax penalties. Taxpayers should seek the advice of their own advisors regarding any tax and legal issues specific to their situation. Save on taxes now When you save through a taxable account like a savings account interest is currently taxable as ordinary income, which can take a huge bite out of your savings over the years. By saving through your U of M retirement plan, earnings grow tax-deferred until you receive the money from the plan. Tax-deferred compounding means your account balance has the potential to grow faster because any earnings are reinvested without being reduced by current income taxes. 2
Start saving today and earn more for tomorrow Time is an important factor for anyone looking to stop working someday. The longer you wait to start saving in your retirement plan, the harder it will be to accumulate enough money for your needs. When you start early, earnings on your savings have more time to compound that is, earn money on previous investment earnings. Plus, saving gradually over many years is easier than trying to save a lot in a shorter time period later in your career. So, why start saving now? To further understand the importance of starting early, let s compare two investors. Mary invests $2,000 a year with an assumed 8 percent rate of return starting at age 25, then invests nothing after age 35. Bill waits until he s 35 to invest the same $2,000 a year and contributes every year through age 65 with the same assumed 8 percent rate of return. Now Mary and Bill are both ready to retire. Mary contributed $22,000 and Bill socked away $62,000. Yet, Mary s nest egg is over $112,724 larger than Bill s.* Bill never catches up! THE ADVANTAGES OF SAVING EARLY Mary Age 25 35 65 Amount saved for retirement (Age 65) $383, 808* Bill $271,085* Contribution periods Look at your savings potential if you start now. Then see what you miss out on if you wait to begin saving! *Examples are for illustrative purposes only and do not reflect the performance of any particular investment. The actual rates of returns for the periods shown will vary and when retirement assets are redeemed, they may be worth more or less than the original investment. Get started today! Turn the page and follow three easy steps to select your investments and sign-up. 3
Select your investments and sign up 1 STEP 1: COMPLETE THE QUIZ Investing for retirement doesn t need to be difficult. That s why we ve created a short quiz to help you determine your investing style. 2 STEP 2: MATCH THE RESULTS TO THE SECURIAN MODEL PORTFOLIO Match the results from your investing style quiz to the Securian Model Portfolio that s right for you. 3 STEP 3: COMPLETE THE APPLICATION Select your investments by choosing the Securian Model Portfolio that matches your quiz. Or, create your own portfolio. 4
STEP 1: COMPLETE THE INVESTING STYLE QUIZ TO DETERMINE YOUR INVESTING STYLE 1 Securian offers a wide array of investment options. But how do you know which investments are right for you? We ve created the quiz below to help you determine your investing style. 1. In pursuit of higher long term returns, I am willing to accept annual returns that vary... Greatly 4 Significantly 3 Moderately 2 Somewhat 1 Very little 0 2. I m willing to tolerate periodic declines in the value of my retirement account if that s what it takes to achieve potentially higher long-term returns. Strongly agree 4 Agree 3 Agree somewhat 2 Disagree somewhat 1 Strongly disagree 0 3. My concern over the long-term effect of inflation on my retirement account is... Very high 4 High 3 Moderate 2 Low 1 Very Low 0 4. I expect to start using my retirement plan money in... More than 20 years 16 16 to 20 years 12 11 to 15 years 8 6 to 10 years 4 5 or less years (in retirement) 0 Investing Style Quiz Simply match your total score from the quiz to determine your investing style. The results will help you select a Securian Model Portfolio on the next page. Total Score Your Investing Style 0 8 Conservative 9 12 Moderately Conservative 13 16 Moderate 17 20 Moderately Aggressive 21+ Aggressive 5
STEP 2: MATCH YOUR RESULTS TO THE SECURIAN MODEL PORTFOLIO 2 Use the results from your investing style quiz to help you select one of five professionally designed Securian Model Portfolios built from the investment options offered in your plan. CONSERVATIVE This portfolio may be right for you if you: Have less than five years before retirement income is needed or are currently in retirement and withdrawing from your account Wish to protect your account value from loss Are a cautious investor 80% General Bond 16% US Stock 4% International Stock MODERATELY CONSERVATIVE This portfolio may be right for you if you: Have less than 10 years before retirement income is needed or are currently in retirement and withdrawing from your account Are concerned by short-term fluctuations in your account value Prefer slow but steady, long-term growth Are a moderately cautious investor 60% General Bond 32% US Stock 8% International Stock MODERATE This portfolio may be right for you if you: Have 10 to 15 years before retirement income is needed Are mainly interested in investments with growth potential but desire greater diversification Are somewhat concerned about inflation Are willing and able to accept moderate levels of risk 40% General Bond 48% US Stock 12% International Stock 6
MODERATELY AGGRESSIVE This portfolio may be right for you if you: Have more than 15 years before retirement income is needed Are concerned about inflation Are an investor with a desire for greater diversification Can tolerate short-term market down periods and volatility to achieve greater long-term growth 20% General Bond 64% US Stock 16% International Stock AGGRESSIVE This portfolio may be right for you if you: Have more than 20 years before retirement income is needed Are very concerned about inflation Have a high return expectation for your investments Are younger and/or an investor willing to take on more extreme levels of risk and performance volatility to maximize portfolio value over the long-term 80% US Stock 20% International Stock These sample portfolios created by Securian do not recognize your individual financial situation. They are only meant as helpful examples and not recommendations or advice. Your portfolio allocation decision should reflect your unique goals and needs. If a portfolio is subsequently changed, your allocation will not automatically be changed. Also, your allocation is not automatically rebalanced each year. 7
STEP 3: COMPLETE THE RETIREMENT PLAN APPLICATION 3 Select your investments using one of two methods: Choice 1: Select a Securian Model Portfolio: Simply check the box on the application that corresponds to the Securian Model Portfolio of your choice. The investments are automatically selected for you according to the portfolio you indicate on the form. OR Choice 2: Do it yourself. Create your own portfolio: Select your own unique mix of investments by indicating on the form how you would like your retirement savings invested among the available investment options. Go to umnplans.securian.com for the latest information (including performance) on each investment option. Sign and return the form to the U of M Employee Benefits Office: 8 University of Minnesota Employee Benefits 100 Donhowe 319 15th Avenue SE Minneapolis, MN 55455-0103
Need help? Meet with a Plan Specialist Meet one-on-one with a Securian Plan Specialist* to discuss your U of M retirement plan benefits. We ll sit down with you to review your account and unique retirement goals. We can help you: Learn about investments that are right for you Make transfers between investments or other account changes Explain your withdrawal options Learn how to save more through your U of M retirement plans Call 1-800-421-3334 to schedule your meeting today Speak to a Securian Plan Specialist Monday through Friday between the hours of 8 a.m. and 4:30 p.m. (Central Time). Email us at: umnplans@securian.com Send your comments or questions via email and receive a prompt response from a Securian Plan Specialist. Website: umnplans.securian.com Visit us in downtown St. Paul, Minnesota We re conveniently located in the Securian Center at 401 Robert Street North, St. Paul, MN 55101. Call today to arrange your personal appointment. *Plan Specialists are registered representatives of Securian Financial Services, Inc., Member FINRA/SIPC.
Retirement for U An easier way to enroll. 3 1 2
This information may contain a general discussion of the relevant federal tax laws. It is not intended for, nor can it be used by any taxpayer for the purposes of avoiding federal tax penalties. This information is provided to support the promotion or marketing of ideas that may benefit a taxpayer. Taxpayers should seek the advice of their own tax and legal advisors regarding any tax and legal issues applicable to their specific circumstances. The guarantees for the General Accounts are subject to the financial strength and claims-paying ability of Minnesota Life. Withdrawals prior to age 59½ may be subject to a 10% IRS early withdrawal penalty, in addition to regular income tax, unless an exception applies. An annuity is a long-term, tax-deferred investment vehicle designed for retirement. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax-qualified plan, the tax-deferral feature offers no additional value. Not FDIC/NCUA insured. Not bank guaranteed. Not insured by any Federal Government Agency. There are charges and expenses associated with annuities, such as deferred sales charges for early withdrawals. Variable annuities have additional expenses such as mortality and expense risk, administrative charges, investment management fees and rider fees. Variable annuities are subject to market fluctuation, investment risk and loss of principal. This must be preceded or accompanied by a current prospectus. You should consider the investment objectives, risks, charges and expenses of a portfolio and the variable insurance product carefully before investing. The portfolio and variable insurance product prospectuses contain this and other information. Please read the prospectuses carefully before investing. About Securian Financial Group, Inc. Since 1880, Securian Financial Group and its affiliates have provided financial security for individuals and businesses in the form of insurance, investments and retirement plans. Now one of the nation s largest financial services providers, it is the holding company parent of a group of companies that include Minnesota Life Insurance Company and Advantus Capital Management. Securian offers retirement plan products issued by Minnesota Life Insurance Company. Headquartered in St. Paul, Minnesota Life s financial strength and claims-paying ability ranks it among the most highly rated insurance companies in the nation. For more information about the rating agencies and to see where Minnesota Life s ratings rank relative to other ratings, please visit minnesotalife.com/financials. abc vwz Securian Retirement www.umnplans.securian.com INSURANCE INVESTMENTS RETIREMENT Insurance products and services are provided by Minnesota Life Insurance Company. Registered products are distributed by Securian Financial Services, Inc., Member FINRA/SIPC. Securian Retirement is a unit of Minnesota Life. 400 Robert Street North, St. Paul, MN 55101-2098 1-800-820-4205 2014 Securian Financial Group, Inc. All rights reserved. F51230 Rev 10-2014 DOFU 10-2014 A05043-1014