Join the plan Because you deserve to retire
Join the plan Because you deserve to retire on your own terms
Planning made easy Four questions you should ask yourself: 1. Why save now? 2. Why use your plan? 3. How much is enough? 4. What ways can you invest? The most important step to saving Join the plan for your future is…starting. 2
Why save now? The most important step to saving Join the plan for your future is…starting. 3
Why save now? You may need to take action to ensure you have enough saved. Social Security may only cover a portion of what you’ll need. Retirement can be expensive. Experts recommend replacing 80% of your income for each year of retirement. * Thethe most important step. June to saving * David Blanchett, Estimating True Cost of Retirement, 30, 2015. for your future is…starting. Join the plan 4
Why save now? Sources of retirement income* *Source: Social Security Administration, Fast Facts & Figures about Social Security, 2015. 34% Social Security 66% All other sources § company retirement plan § pensions § personal savings and investments § earnings/income § other 5
Why save now? 1996 to 2016 Living expenses are on the rise. * Look at how prices for everyday items have increased in the last 20 years. * Source for eggs per dozen, gas per gallon, coffee per pound: Bureau of Labor Statistics; Source for movie ticket: Box Office Mojo. The most important step to saving Join the plan for your future is…starting. 6
Put time on your side Projected income in retirement [to age 90] $3, 095 per month $2, 017 per month There can be a cost to delaying. The illustrations above assume a retirement age of 65 and that the individual receives the monthly retirement payment shown until age 90. The amount saved until retirement assumes an annual investment return of 6%. The monthly payment amount in retirement assumes an annual investment return of 5%. The investment performance shown does not represent the return of any particular investment and does not guarantee any future rate of return. The final account balance does not reflect any taxes or penalties that may be due upon distribution. Withdrawals from a tax-deferred account before age 59½ are subject to a 10% federal penalty tax unless an exception applies. 7
Why use your plan? Convenience You can determine how much will be deposited into your retirement account directly from your paycheck. Ownership The money you contribute and any earnings belong to you. • Take it with you throughout your career and every phase of life to use in retirement. Pretax savings advantages Your money is invested before taxes and you won’t need to pay tax on it until it’s withdrawn. This reduces your taxable income each year and may allow your savings to grow faster over time. The most important step to saving Join the plan for your future is…starting. 8
How much is enough? Experts recommend saving at least 12 -17%. * If you have to, start small and make gradual increases each year. Remember, every bit counts. * Aon Hewitt, The Real Deal: Retirement Income Adequacy at Large Companies, 2015. The most important step to saving Join the plan for your future is…starting. 9
How much is enough? Create opportunities to save Brown bag it. 1 Drop cable for online streaming. 2 Monthly savings = $120 1 2 3 4 $91. 50 Lose the landline. 3 Monthly savings = Be a discount shopper. 4 Monthly savings = $20 $40 Based on purchasing lunch 20 times a month at a minimum of $10. 00 per meal versus packing a $4. 00 lunch. Marcia Breen, Cable and Satellite TV Costs Will Climb Again in 2016, NBC News, December 22, 2015, and Bobby Bernstein, Netflix vs. Amazon Prime vs. Hulu Plus, June 6, 2016. Average cost of basic phone service, including local and long distance calls, and average cost of step VOIP services: http: //electronics. The most important to saving Join the plan costhelper. com/phone-line. html for your future is…starting. Based on using a 20% coupon for a purchase of $200 or greater. 10
What ways can you invest? The most important step to saving Join the plan for your future is…starting. 11
Your plan offers investment options that provide a way to get in the plan and begin saving now. However, if you complete the enrollment process, but do not make any investment elections, your savings will be invested in the plan’s default investment. The most important step to saving Join the plan for your future is…starting. 12
A personalized solution just for you Get access to the professionals at Morningstar Investment Management LLC, part of Morningstar’s Investment Management group—a global leader with over $186 billion in assets under management and advisement. * Morningstar® Retirement Manager. SM is a web-based resource that can be used to create a personal investment strategy. *Data as of September 30, 2016. Includes assets under management and advisement for Morningstar Investment Management, LLC, Morningstar Investment Services LLC, Morningstar Investment Management Europe Ltd. , Morningstar Investment Management Australia Ltd. , and Ibbotson Associates Japan KK all of which are subsidiaries of Morningstar, Inc. Advisory services listed are provided by one or more of these entities, which are authorized in the appropriate jurisdiction to provide such services. Investment advice generated by Morningstar Retirement Manager is based on information provided and limited to the investment options available in the defined contribution plan. Projections and other information regarding the likelihood of various retirement income and/or investment outcomes are hypothetical in nature, do not reflect actual results, and are not guarantees of future results. Results may vary with each use and over time. Morningstar Investment Management and its affiliates are not affiliated with Ascensus, Inc. The most important step to saving Join the plan for your future is…starting. 13
Your plan offers high-quality investments to create a custom mix. • Online fund information and resources allow you to make the best choices for your personal situation. • The online learning center provides easy access to educational guides, relevant financial articles, and tools. Use these online tools to help you plan Calculators Investment info Performance history Market update The most important step to saving Join the plan for your future is…starting. 14
What’s next? o Enroll in the plan. o Track your progress. Use our online planning calculator. o Stay informed. Go online to access account details, fund information, education, relevant financial articles, and tools. o Update your strategy. Consider reviewing and updating your savings strategy at least once a year. This is particularly important if you experience a major life event. The most important step to saving Join the plan for your future is…starting. 15
Ready to get started? You have the ability to register, enroll, and track your progress right from your mobile phone. The most important step to saving Join the plan for your future is…starting. 16
This is your opportunity. The decision to save today can shape your future. You’ll thank yourself later. Join the plan. Copyright © 2017 Ascensus, Inc. All Rights Reserved. 17
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