Agenda - Amazon S3 · 2013-11-08 · • Most financial advisers say you’ll need about 70% of...

Agenda:

• Overview of the ACEC Retirement Trust• 401(k) Updates and Reminders• Investment Education Tools• CAPTRUST’s Trust & Market Overview

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ACEC Retirement Trust

• The program’s Recordkeeper, Great-West, offers servicing for401(k) and Profit Sharing plans with discounted fee schedulesto all participating ACEC members.

• The ACEC Trustees and their financial advisor, CAPTRUSTFinancial Advisors, select a menu of diverse investment optionsthat are comprehensive and are reviewed regularly.

• Wells Fargo Advisors delivers local support and education toplan sponsors and employees.

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The ACEC Retirement Trust oversees a program that providesretirement plan services for participating ACEC members.

Structure of the ACEC Retirement Trust

Plan Highlights

Plan Highlights continued

How to Access your Account

Rollovers

• You can roll over into this Plan approved balances from a formeremployer’s 401(a), 401(k), 403(b) or governmental 457(b) plan orfrom an IRA.1

• If you leave your employer, you can roll over your account to yournew employer’s 401(a), 401(k), 403(b) or governmental 457(b) plan(if allowed) or to an IRA.1

1 If you roll over any 457 dollars you may have from a previous employer’s plan to a 401(a), 401(k), 403(b) or IRA, you will no longer be able totake a withdrawal before age 59½ without possibly incurring the 10% federal tax penalty if you leave employment.

Why Rollover?

• Consolidate Accounts – fact is that most people do not manage theirold 401(k)s or IRA’s as diligently as they do their current employersplan.

• The average weighted expense ratio of the ACEC Retirement Trustis 0.76%. What are you paying on your old accounts?

• The investments of the ACEC RT are actively monitored byCAPTRUST.

• Asset roll-in service: Consolidate any eligible savings from previousemployer-sponsored plans into your current plan giving you easyaccount management.

Roth Option

• What is a Roth?• Flexibility

– Designate all or a portion of your elective contributions• After-tax Roth account

– “Locks in” today’s tax rates on all contributions– Suitable for higher tax bracket at retirement

• Before-tax traditional account– Contributions and earnings on contributions are tax-deferred until you

takea distribution

• Suitable for lower tax bracket at retirement• Employer-matching contributions are treated as before-tax

contributions.– They may be subject to income taxes upon distribution.

At-a-Glance Comparison*:Before-Tax (Traditional) vs. After-Tax (Roth)

Before-Tax (Traditional) After-Tax (Roth)

Is my contribution taxable in the year Imake it?

No Yes

Is my contribution taxed whendistributed?

YesNo, provided the distribution occurs after age59½, death or disability and at least five yearsafter your first contribution

Are the earnings on my contributionstaxed when distributed?

YesNo, provided the distribution occurs after age59½, death or disability and at least five yearsafter your first contribution

If I change jobs,can I roll over my account?

Yes, to a qualified 401(a), 401(k) or403(b) plan, an IRA, or a governmental457(b) plan

Yes, to a Roth IRA or a 401(k), 403(b), orgovernmental 457(b) plan that has a designatedRoth account and that accepts Roth rollovers

What is the limit for my contributions?Combined limit for salary deferral: $17,000 in 2012; additional $5,500 for Age 50+ Catch-Upcontributions in 2012; additional $17,000 for Standard Catch-Up for a total of $34,000 in 2012

If I experience hardship/unforeseeable emergency, can Imake a withdrawal?

[Yes, for hardship / unforeseeableemergency withdrawals or No]

[Yes, for hardship / unforeseeable emergencywithdrawals or No]

Do I have to take minimumdistributions at age 70½?

Yes Yes

* Source: www.irs.gov, 2011

Great-West Retirement Services’ RetirementEducation Services

Great-West Retirement Services has retirement education servicesavailable to help you at each phase of your retirement planningjourney—enrollment, accumulation and distribution. These servicesinclude:

•Catch-up contribution and employer match awareness: Helps improveyour chances of success in reaching your desired retirement incomelevel.•Account distribution education: Helps you decide whether to keep yourretirement plan savings in the plan or to initiate a rollover upon adistributable event.

Representatives of GWFS Equities, Inc. are not registered investment advisers, and cannot offer financial, legal or tax advice. Please consult withyour financial planner, attorney and/or tax adviser as needed.

Envision by Wells Fargo Advisors

Plan for Your Destination

• How much will you need for your retirement, and where will themoney come from?– Social Security (may only replace 25-55% of working income)1

– Traditional employer pension plans– Personal savings– A tax-deferred retirement plan

1 Source: http://ssa.gov/pubs/10045.pdf, January 2012

Save Enough to Afford Retirement

ItemTypicalCost in

2011

TypicalCost in

2031

American home2 $272,900 $543,013

Women’s blue jeans3 $37 $74

Tuition per year (public four-year college or university)4

$8,244 $16,404

Pound of coffee5 $5.51 $10.96

New automobile6 $29,793 $59,282

• Most financial advisers sayyou’ll need about 70% of yourpre-retirement earnings tocomfortably maintain your pre-retirement standard of living.1

• Many people are living longerand healthier lives than everbefore.

• Social Security may not beenough.

• Don’t forget about inflation.

FOR ILLUSTRATIVE PURPOSES ONLY. Source: Great-West Retirement Services®, 2010. This hypothetical illustration assumes a 3.5% rate of inflation for 20 years.1 Source: https://www.socialsecurity.gov/planners/morecalculators.htm, December 20112 Source: http://www.census.gov/const/uspriceann.pdf, 20113 Source: http://lifestylemonitor.cottoninc.com/Supply-Chain-Insights/Denim-Jeans-US-Market-07-11/, July 20114 Source: http://www.collegeboard.com/student/pay/add-it-up/4494.html, “Average College Costs, 2011-2012”5 Source: http://data.bls.gov/cgi-bin/surveymost?ap, October 20116 Source: www.nada.org, NADA Data 2011

Understand How Risk AffectsYour Journey

• Consider putting your money into a number of different types ofinvestment options.1

• Invest for the long term.• Be aware of being too cautious.• Review your investments when you change your long-term goals.

Risk: the possibility of gain or loss on your investmentReturn: the actual gain or loss on your investment

1 Diversification of an investment portfolio does not ensure a profit and does not protect against loss in declining markets.

Diversify with Asset Allocation1

• Invest for your risk tolerance and savings goals.• Know your time frame.• The investment strategies on the following slide are intended only to

illustrate possible investment portfolio allocations that represent aninvestment strategy based on risk and return. This is not intended asfinancial planning or investment advice.

1 Asset allocation does not ensure a profit and does not protect against loss in declining markets.

Establish Asset Allocation

FOR ILLUSTRATIVE PURPOSES ONLY. These hypothetical portfolio allocations are based on an investment strategy regarding risk and potentialreturn. This is not intended as financial planning or investment advice. Sample portfolio allocations are approximate.

Aggressive Moderate Conservative

10%5%

85%

10%

25%

30%65%

20%

50%

The Great-West LifetimeAsset Allocation Series®

Birth Year Conservative Moderate Aggressive

1955 or before Great-West Lifetime 2015Portfolio I

Great-West Lifetime 2015Portfolio II

Great-West Lifetime 2015Portfolio III

1956 – 1965 Great-West Lifetime 2025Portfolio I

Great-West Lifetime 2025Portfolio II

Great-West Lifetime 2025Portfolio III

1966 – 1975 Great-West Lifetime 2035Portfolio I

Great-West Lifetime 2035Portfolio II

Great-West Lifetime 2035Portfolio III

1976 – 1985 Great-West Lifetime 2045Portfolio I

Great-West Lifetime 2045Portfolio II

Great-West Lifetime 2045Portfolio III

1986 or after Great-West Lifetime 2055Portfolio I

Great-West Lifetime 2055Portfolio II

Great-West Lifetime 2055Portfolio III

Investment Education ToolsTo help you determine an appropriate investment strategy going forward so you can plan for a morecomfortable retirement, the ACECRT website, www.ACECRTPlan.com, offers a variety of tools andfeatures. Please note the ACECRT website will not be available until after blackout ends.

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FOR ILLUSTRATIVE PURPOSES ONLY.

Market Commentary

Questions and Contact Information

Questions?

• Great-West Customer Service: 866-221-3858• Participant Website: ACECRTPLAN.com

• Wells Fargo Advisors: (800) 521-9463 ext. 8562

– Nancy Barrette: nancy.barrette@wellsfargoadvisors.com– Sam Tarkington: sam.tarkington@wellsfargoadvisors.com– Robert Kuna: robert.kuna@wellsfargoadvisors.com

Nancy Barrette, Robert Kuna and Sam Tarkington are registered representatives of Wells FargoAdvisors which is an independent broker-dealer and is not an affiliate of GWFS Equities or any ofits affiliates or subsidiaries.