Where Ingenuity Creates Impact 401(k) Savings Plan Employee …jenkon401k.weebly.com/uploads/5/9/1/7/59171237/jia_401k... · 2014-12-31 · Where Ingenuity Creates Impact 2 Background

Where Ingenuity Creates Impact

401(k) Savings Plan

Employee Meeting2014

Jenkon / JIA

presented by

Ron KirkpatrickPresidentLBG [email protected]

© 2011. Retirement Plan Advisory Group. All rights reserved.NFP Securities, Inc. and LBG Advisors LLC do not offer tax or legal services. Please contact the appropriate professional regarding your individual circumstances. Securities and investment advisory services are offered

through NFP Securities, Inc., member FINRA/SIPC. NFP Securities, Inc. is not affiliated with LBG Advisors, LLC or with Liberty Benefits Group.

Where Ingenuity Creates Impact 1

Today’s Discussion

� Introduction

� Why Save in a 401(k)

� Specific Provisions of Your Plan

� Strategies to Consider and What to Avoid

� Your Fund Menu

� Conclusion


Background

� LBG Advisors

- Employee Benefits

- Retirement Plans

- Member Firm Of National Financial Partners

� NFP

- $1.2 billion a year in revenue

- Thousands of corporate benefits and retirement plan clients

- Provides great back office support, technology tools, and helps keep your plan in compliance


� Do you plan to retire someday?

- Your Retirement Plan is a long-term investment

� Despite market volatility, 401(k) advantages remain:

- Tax-deferred compounding interest

- Dollar cost averaging (Automatic payroll contributions)

- Institutional Share Classes (Minimums Waived)

- Plan also includes ROTH that allows taxes to be paid now (effective January 2015)

- Save up to $18,000 ($12,500 more than IRA) –

- Catch-up of $6,000 (if age 50 or older) for total annual amount of $24,000

Why Invest in 401(k)?


Shifting a portion of money to your savings can mean more money for your retirement!

� How much do you spend each week or month?

- Fast food/restaurants

- Coffee/soda/other beverages

- Snacks (e.g., vending machine)

- Alcohol

- Pizza delivery

- Magazines

- Movies

Any Amount Adds Up!


� 46% of workers are not too or not at all confident they will have enough money to retire comfortably

� Only 54% of workers have completed a retirement needs calculation

� 47% of people expect to keep working in retirement just to “make ends meet”

� Median household headed by a person aged 60 to 62 with a 401(k) has less than one-quarter of what is needed to maintain its standard of living in retirement

Sources:

(1, 2) Employee Benefit Research and Mathew Greenwald & Associates, Inc. 2010 Retirement Confidence Survey

(3) Retirement Insights: 2010 Guide to Retirement

(4) Wall Street Journal, 2.19.11

Americans Are Not Saving Enough!


Why Take part in a Retirement Plan


Why Take part in a Retirement Plan


Feature Provision

Eligibility:

• Employees are required to be age 21, with 3 months of continuous service for Salary Deferral Contributions.

• No minimum number of hours required. • Plan entry is the first day of the month following

satisfaction of eligibility requirements.

Entry:

• First of each quarter after meeting eligibility (1/1, 4/1, 7/1, 10/1)

Savings Limits:

• Participants may defer 1-15% of total annual compensation limited to an IRS maximum of $18,000 for the 2015 calendar year.

• If you are 50 or older, you may defer an extra $6,000 for a total of $24,000.

Savings Changes:• You can change the amount of your payroll deduction

each payroll period, and/or stop making contributions to the Plan at any time.

Jenkon 401(k) Plan Highlights


Feature Provision

Vesting:

• Employee deferrals are always 100% vested. • Company Match is 100% vested immediately• Discretionary Profit Share is 100% vested immediately• No Current Match as of 12/31/2014

Loans:

• Participants in the plan may borrow up to 50% of their account balance to a maximum of $50,000.

• Minimum loan amount is $1,000. You may have a maximum of 3 outstanding loan at a time.

• The maximum repayment term for most loans is 5 years, except when borrowing for the purchase of a primary residence where the maximum repayment period would be 15 years or retirement age, whichever comes first.

• Loan interest rate is prime + 0.00% (3.25% as of 12/31/14)• A $150 fee applies to all loans and is paid by the participant.

Jenkon 401(k) Plan Highlights

Customer Service /

Plan Questions

• Ascensus 866.809.8146 www.MyAccount.Ascensus.com/rplink

• LBG Advisors 877.485.2120 • [email protected] or [email protected]


If no longer working at the

company

When Can I Receive Money?

� Age 59½

� Retirement: Age 65

� Termination of Employment After Age 55

� Death

� Permanent Disability

� Distribution Options

- Lump sum

- Roll into new employers plan

- Roll into a rollover IRA

- Leave it with the plan

� Age 59½

� Loans

� Financial Hardship

While employed at the

company

Distribution Options

10


Chart is for illustration purpose only and does not predict or guarantee the performance of any security or investment.

Past performance is no guarantee of future results.

The Emotional Cycle of Investing

Hopeful

Excited

Ecstatic

Dejected

Hopeful

Excited

RECOVERY

BOOM

RECESSION

“This is easy”

I knew it. I should never

have invested in that

option

“No problem,

this is short term”

“I’ll wait and see”

RECOVERYSLOWDOWN

Frightened

Anxious

Investing can trigger all sorts of emotions. When returns are rising, you may feel confident, secure, happy.

But just as markets move in cycles, so do emotions. When returns fall, investors’ emotions often do too.


Market Comebacks


Stay the Course

Investors who sell at the wrong time often miss significant portions of future recoveries.

Source: Ned Davis Research, Inc.

13


Source: Dalbar, Inc. Quantitative Analysis of Investor Behavior, 2010

0%

2%

4%

6%

8%

10%

12%

14%

Average Annual Return, 1990-2009

Investor Challenges

8.21%

S&P Return

3.17%Average Stock Fund

Investor

2.74%Inflation

14


The performance data herein represents past performance. Past performance does not guarantee future returns. Current performance may be lower or higher than the performance data quoted.

Asset Class Kaleidoscope

15


Investment Choices

Investment

Types

Stocks

Bonds

Cash

Combination

Mutual Fund

Professional

Fund Managers

16

What is a Mutual Fund?


Boom

Recession

Slowdown

Recovery

Value Style tends to be in favor

Growth Style tends to be in favor

Investments in smaller company and micro-cap stocks generally carry a higher

level of volatility and risk over the short term.

What is Growth?• High PE ratios• Reinvestment of earnings• Not pay dividends

What is Value?• Consistent dividends• Bought at a discount or undervalued

• Slower growth, low PEs

Diversification Assistance – Growth & Value


What Strategy is Right for You?

� When choosing an investment strategy, consider these things

- Your Current Age

- Your Time to Retirement

- Your Risk Tolerance

- How much do you want to be involved in the research, fine tuning, rebalancing, etc., of the Mutual Funds offered in your plan?

18


U.S. DOMESTIC STOCK (9)

Value Blend Growth

Vanguard Equity Index ADM

Vanguard Total Stock Market Index Signal

Vanguard Growth Index Signal

Large

Victory Established Value Columbia Mid Cap Index R5

PrimeCap Odyssey Mid

Vanguard Sm Cap Value Index Inv.

Vanguard Sm Cap Index Signal

Vanguard Small Cap Growth Index Inv

Small

Fund Menu

19


INTERNATIONAL (3) Specialty / Other (2)

Oppenheimer Intl. Diversified (Lg Cap Blend)

American Funds New World R6 (Emerging)

Am. Funds New Perspective R6 (Global)

T. Rowe Price Health Sciences

John Hancock Alt. Asset Allocation R6

Fixed Income / Bonds (7) ASSET ALLOCATION / Target Dates (14)

Standard Stable Value Fund

Pimco Real Return Instl (US Gov’t TIPS)

IVY Limited Term Bond I (Short Term Bond)

Federated Instl High Yield Bond Instl.

Pimco Global Bond Unhedged (Global Fixed)

Vanguard LT Inv. Grade ADM (Specialty)

Vanguard Int-Term Bond Index Signal (Core)

Manning & Napier Pro-Blend (Conservative)

Vanguard Wellesley Income (Mod-Conservative)

American Funds Inc. Fund of Am. R6 (Moderate)

T. Rowe Price Personal Strat Growth (Aggressive)

JP Morgan Smart Retirement Target Date Funds :

JPM Income Institutional (Mod-Conservative)

2015 (Moderate)

2020,2025 (Growth)

2030,2035,2040,2045,2050,2055 (Aggressive)

Fund Menu

20

Questions?

• For any questions regarding your account, including:

– Login

– Enrollment

– Deferral Amounts

– Allocating your Deferrals

– Changing your Investment Allocations

– Loans or Distributions

– Designating or Changing your Beneficiary

Ascensus: (866) 809-8146 or www.MyAccount.Ascensus.com/rplink

LBG Advisors (877) 485-2120 or [email protected]

877-485-2120


Conclusion

� Take advantage of the resources available to you through your Company

� Do the appropriate planning today to help you maintain your goals

� Avoid common mistakes of many investors and remain disciplined to reach your goals

Any questions?

Documents

Where Ingenuity Creates Impact 401(k) Savings Plan Employee …jenkon401k.weebly.com/uploads/5/9/1/7/59171237/jia_401k... · 2014-12-31 · Where Ingenuity Creates Impact 2 Background