Docstoc

Vanguard Target Retirement Income Fund Mutual of Omaha

Document Sample
Vanguard Target Retirement Income Fund Mutual of Omaha Powered By Docstoc
					                ®




 PLAN FOR RETIREMENT




AFN32287_0512
AFN32287_1007
                       1
                                         ®




Why Mutual of Omaha?
• Proven financial strength and stability
• Customer-focused core values




Investment options are underwritten by either United of Omaha Life Insurance Company or Companion Life Insurance Company, wholly
owned subsidiaries of Mutual of Omaha.

                                                                2
                 ®




Today’s Agenda
•   Why save for retirement?
•   What is a 401(k) plan?
•   How much do you need to save?
•   Where should you invest your money?
•   How do you get started?
•   Specific features about your plan



                          3
                ®




Why Save for Retirement?
• Social Security will not be enough
• The impact of inflation
• Increased years in retirement




                          4
                               ®




Current Income Sources for Today’s Retirees
                                                                                       ASSET INCOME 11%




SOCIAL SECURITY
                                                                                                     PENSIONS 19%
37%




      OTHER 3%
                                                                                            EARNINGS 30%



           Source: Social Security Administration, Income of the Aged Chartbook, 2010, released March 2012

                                                         5
                                       ®




Higher Cost of Inflation
TAKE A LOOK AT HOW PRICES MAY CHANGE OVER TIME:

                               TODAY                  IN 15 YEARS                  IN 25 YEARS

NEW CAR                        $28,400                $42,040                      $54,610

WEEK-LONG VACATION             $2,500                 $3,700                       $4,810

WINTER COAT                    $150                   $222                         $288

1 LB. OF COFFEE                $4.10                  $6.07                        $7.88




     Sources: Inflation Data.com, 2012
     Current prices are estimates. Future prices based on an annual 2.65 percent rate of inflation.


                                                                 6
                     ®




Increased Years in Retirement

 WHY DOES MY LIFE EXPECTANCY MATTER?




                                  7
               ®




What is a 401(k) Plan?
 • A retirement plan offered by your employer
 • You contribute
 • Your employer may contribute matching
   contributions
 • Convenience
 • Tax advantages




                         8
                                                ®




Advantages of Investing Pretax Dollars




 Assumes Adam and Michael are in a 27.5 percent tax bracket and an employer matching contribution of 50 cents per dollar is
 contributed. Calculation shows federal income tax withholding only. See the Plan Highlights section for information about your
 company match.
                                                                              9
                                              ®




The Power of Tax-Deferred Growth




 Assumes both investors are in a 27.5 percent tax bracket and a 6 percent annualized return on both accounts. Upon distribution, Michael potentially
 may be in a lower tax bracket of 15 percent and, if elected, would receive a lump-sum amount of $38,730.


                                                                           10
                ®




How Much Do You Need to Save?
• Identify personal needs
• Develop a plan




                            11
             ®




How Much Money Will I Need?

          $20,000    $286,037
          $40,000    $810,466
     25
          $60,000   $1,470,965
          $80,000   $2,181,130

          $20,000    $207,741
          $40,000    $588,619
     35
          $60,000   $1,068,321
          $80,000   $1,584,094

          $20,000    $150,876
          $40,000    $427,498    This chart is for illustration purposes only. Not
     45
          $60,000    $775,892    intended to be investment advice; consult your
                                 financial/tax adviser for information about your
          $80,000   $1,150,483   specific situation. Assumes pretax savings through this
                                 plan and other tax deferred savings, no change in
          $20,000   $109,577     Social Security benefits, a 6 percent annual rate of
          $40,000   $310,480     return on investments after retirement, retiring at age
     55
          $60,000   $563,509     67 and living until age 85, with all funds exhausted by
                                 age 85. Assumes that salary and payout will grow at an
          $80,000   $835,544     annual rate of inflation of 3.25 percent.


                            12
                    ®




How Much Should I Contribute?

          $20,000        8%    $30
          $40,000       11%    $86
     25
          $60,000       14%   $156
          $80,000       15%   $231

          $20,000       11%    $43
          $40,000       16%   $121
     35
          $60,000       19%   $219
          $80,000       21%   $325
                                      This chart is for illustration purposes only. Chart
                                      computes contributions suggested to reach 75 percent of
          $20,000       17%    $65    income needed for retirement. Not intended to be
          $40,000       24%   $184    investment advice; consult your financial/tax adviser for
     45                               information about your specific situation. Some amounts
          $60,000       29%   $334
                                      may exceed plan- or IRS-imposed participant
          $80,000       32%   $495    contribution limits for defined contribution plans. Check
                                      the Plan Highlights section of your enrollment book for
          $20,000       32%   $121    the IRS-imposed contribution limits.
          $40,000       45%   $344
     55
          $60,000       54%   $623
          $80,000       60%   $924
                                 13
                                             ®




Why is Time Important?

The Benefits of Starting Early
                                                                                $191,696
Even though Alana contributed more money to
her retirement savings plan, Suzanne ended up
with nearly twice as much at age 65. Why?
Because Suzanne started early and took
advantage of the power of time and
compounding.
                                                                                           $136,694



This illustration assumes a 6 percent earned rate per year with money
deposited at the beginning of the month. This rate is used for illustration
purposes only and doesn't represent the actual performance of any specific
investment. There’s no guarantee that any particular return will be achieved,
and past performance is no guarantee of future results. Investment returns
will vary and principle values, when redeemed, may be worth more or less
than the original investment. Where applicable, figures have been reduced
based on a tax rate of 27.5 percent.

                                                                        14
                                        ®




Where Should I Invest My Money?
• Professional investment portfolios
      • Risk-based
      • Time-based
• Build your own portfolio
• Professionally managed account options
• Self-directed Brokerage Account (SDBA)*



*Not all plans qualify for the SDBA. Additional costs may apply.
Not intended to be investment advice.

                                                              15
           ®




Time Horizon




               16
             ®




Risk/Return Profiles




                       17
                                       ®




Asset Classes
Annual Investment Returns
of Various Asset Classes




 Legend:                                                                      This graph shows the rolling
 Stable Value = 90-day T-bills             Domestic Stocks = S&P 500 Index    12 month returns through
 Bonds = BarCap Aggregate Bond Index       International Stocks = MSCI EAFE   12/31/2011 for Domestic Stocks,
                                                                              International Stocks, Bonds and
                                                                              Stable Value categories
                                                18
                  ®




Simplified Investing Through
Professional Investment Portfolios
•   Portfolios that match your needs
•   Rigorous expert selection process
•   Professional diversification
•   Automatically rebalanced based on pre-set
    allocation over time



                           19
                 ®




                       ®
Mutual Directions Portfolios
• Series of five risk-based portfolios
• One investment decision (determined by risk tolerance)
• Designed to meet the objectives of the conservative
  to aggressive investor




                           20
                                 ®




                                                ®
Mutual Directions Portfolios
Conservative to Aggressive Portfolios




               Diversification does not ensure a profit or protect against a loss in a declining market.
                                                          21
             ®




Which Portfolio is Right for You?




                    22
                                ®




Mutual GlidePath Portfolios                   SM



Mutual GlidePathSM portfolios are designed to help investors achieve a broadly
diversified portfolio that will gradually become more conservative in its allocation
as the target retirement date nears. The portfolios continue to be allocated
along their investment “glidepaths” for approximately 20 years beyond the target
retirement date. Mutual GlidePath portfolios offer higher equity exposure at the
target retirement date than “to retirement” style time based portfolios.




              Diversification does not ensure a profit or protect against a loss in a declining market.
                                                         23
                                       ®




Mutual GlidePath                                  SM



Mutual GlidePath 2010                      Mutual GlidePath 2030                  Mutual GlidePath 2050
Designed for investors who intend to       Designed for investors who intend to   Designed for investors who intend to
retire within five years of 2010.          retire within five years of 2030.      retire within five years of 2050.


Mutual GlidePath 2015                      Mutual GlidePath 2035                  Mutual GlidePath 2055
Designed for investors who intend to       Designed for investors who intend to   Designed for investors who intend to
retire within five years of 2015.          retire within five years of 2035.      retire within five years of 2055.


Mutual GlidePath 2020                      Mutual GlidePath 2040
Designed for investors who intend to       Designed for investors who intend to
retire within five years of 2020.          retire within five years of 2040.



Mutual GlidePath 2025                      Mutual GlidePath 2045
Designed for investors who intend to       Designed for investors who intend to
retire within five years of 2025.          retire within five years of 2045.


                                                           24
                                            ®




  Vanguard® Target Retirement Funds
     Vanguard® Target Retirement Funds are time-based investments that become
     more conservative as the target retirement date nears. Vanguard Target
     Retirement Funds offer lower equity exposure at the target retirement date than
     “through retirement” style time-based portfolios.




                          Diversification does not ensure a profit or protect against a loss in a declining market.

All Vanguard Target Retirement funds are managed by The Vanguard Group, Inc. Vanguard and Mutual of Omaha are not affiliated companies.
                                                                     25
                                       ®




 Vanguard® Target Retirement Funds
Vanguard Target Retirement                 Vanguard Target Retirement                Vanguard Target Retirement
Income Fund                                2030 Fund                                 2050 Fund
Designed for investors already in          Designed for investors who intend to      Designed for investors who intend to
retirement.                                retire within five years of 2030.         retire within five years of 2050.
Vanguard Target Retirement                 Vanguard Target Retirement                Vanguard Target Retirement
2015 Fund                                  2035 Fund                                 2055 Fund
Designed for investors who intend to       Designed for investors who intend to      Designed for investors who intend to
retire within five years of 2015.          retire within five years of 2035.         retire within five years of 2055.
Vanguard Target Retirement                 Vanguard Target Retirement
2020 Fund                                  2040 Fund
Designed for investors who intend to       Designed for investors who intend to
retire within five years of 2020.          retire within five years of 2040.

Vanguard Target Retirement                 Vanguard Target Retirement
2025 Fund                                  2045 Fund
Designed for investors who intend to       Designed for investors who intend to
retire within five years of 2025.          retire within five years of 2045.



                                                           26             *Vanguard is a trademark of The Vanguard Group, Inc.
                              ®




Build Your Own
•   Customized portfolios
•   High level of involvement
•   Carefully selected, monitored investment options
•   Mutual funds universe
•   Self-directed brokerage account*




Not all plans qualify for the SDBA. This feature may impact pricing.
                                               27
                                                          ®




        Monitored Funds
    Fixed Income/Bonds
              •     BlackRock High Yield Bond Portfolio
              •     Bond Index fund
              •     Goldman Sachs High Yield Fund
              •     Guaranteed Account*
              •     Lifetime Guaranteed Income Account**
              •     Metropolitan West Total Return Bond Fund
              •     PIMCO Total Return Fund
              •     Templeton Global Total Return Fund
              •     TIPS Index Fund

    Domestic Stock Funds
              •     Alliance Bernstein Small/Mid Cap Value Fund
              •     Allianz NFJ Dividend Value Fund
              •     Blackrock Capital Appreciation Fund
*The Guaranteed Account is an individual investment choice that is not part of the Mutual Directions or Mutual GlidePath portfolios and is not part of the program used by
Mutual of Omaha to monitor the portfolios and their underlying funds at the product level.
**Lifetime Guaranteed Income Account (Rider Forms 651-GAQR-10 or 651-GAQR-10(OR)) may not be available in all states and specific features may vary by
state. Availability may vary by plan. The Lifetime Guaranteed Income Account is not available in New York.
Availability may vary by plan and may change over time.                             28
                                                          ®




  Monitored Funds (Continued)
  Domestic Stock Funds (continued)

           •     Dreyfus/ The Boston Company Small/Mid             •   Royce Total Return Fund
                 Cap Growth Portfolio                              •   Small Company Fund*
           •     Goldman Sachs Small CapValue Fund                 •   Small Cap Stock Index Fund
           •     Growth Stock Index Fund                           •   Stock Market Index Fund
           •     Harbor Capital Appreciation Fund                  •   Strategic Value Fund*
                                                                   •   Target Small Capitalization Value Portfolio
           •     John Hancock Disciplined Value Mid Cap
                 Fund                                              •   T. Rowe Price Growth Stock Fund
           •     Lord Abbett Value Opportunities Fund              •   Value Stock Index Fund
                                                                   •   Vanguard® Morgan Growth Fund
           •     MFS Value Fund
                                                                   •   Vanguard® Windsor II™ Fund
           •     Mid Cap Stock Index Fund
                                                                   •   Waddell & Reed New Concepts Fund
                                                                   •   William Blair Small-Mid Cap Growth I Fund



* Not available in New York.
Availability may vary by plan and may change over time.       29
                                                          ®




  Monitored Funds (Continued)
  International Stock Funds                                   Specialty Funds

           •     Causeway International Value Fund                 •   Cohen & Steers Institutional Realty Shares
           •     Dodge & Cox International Stock Fund              •   Franklin Growth Fund
           •     Emerging Markets Index Fund                       •   Lord Abbett Fundamental Equity Fund
           •     Franklin International Small Cap Growth           •   Oppenheimer Global Fund
                 Fund
                                                                   •   Vanguard Global Equity Fund
           •     Harbor International Fund
           •     International Developed Countries Fund
           •     International Stock Index Fund
           •     International Emerging Markets Fund
           •     MFS International Growth Fund
           •     Wells Fargo Advantage Emerging
                 Markets Equity Fund



Availability may vary by plan and may change over time.       30
                                        ®




Self-directed Brokerage Account
For participants who want to select and trade in:
• Individual stocks listed on major U.S. stock exchanges
       • New York Stock Exchange
       • American Stock Exchange
       • NASDAQ
• Fixed income funds including U.S. government and
  corporate securities
• A large list of mutual funds


*Not all plans qualify for the SDBA. An additional cost may apply.
                                                               31
                          ®




Professionally Managed Account Options
For participants who want a “do it for me” approach
• Personalized retirement strategy recommendations
• Professional account management
• Regular monitoring and detailed reports




 Additional costs apply

                              32
                          ®




Professionally Managed Account Option
Stadion
• Fully automated feature
• Manages investments based on current market conditions
• Defaulted based on age or individual preference




 Additional costs apply

                              33
                          ®




Professionally Managed Account Option
Morningstar® Retirement Manager™
• Professional investment guidance
• Managed account services
• Ongoing account review




 Additional costs apply

                              34
                 ®




Qualified Default Investment Alternatives
(QDIA)

QDIA solutions include:
• Stadion
• Mutual GlidePath portfolios
• Vanguard Target Retirement Funds




                           35
               ®




How Do I Get Started?
• Determine how much to contribute
• Choose how to invest your money
• Complete the enrollment forms




                        36
                    ®




Your Plan Features
• Plan highlights
• Plan tools




                        37
                  ®




Plan Highlights
•   Eligibility
•   Contributions
•   Vesting
•   Investment options
•   Loans
•   Distributions



                         38
                                                     ®




Roth 401(k) – More Ways to Save for Retirement

•     After-tax contributions
•     Tax-free withdrawals*
•     No income restrictions
•     Eligible for matching contributions**
•     Eligible for rollover into another qualified plan



*Contributions must remain in the plan for 5 years from the first time Roth 401(k) contributions are made and begin after age 59 ½.
**Check your plan provisions.




                                                                                  39
                                       ®




What is more advantageous – Roth or Pretax
You may want to consider pretax contributions if:               You may want to consider Roth contributions if:


•   Minimizing the taxes you pay today is very                  •   You want your retirement savings to be tax free
    important to you                                                when withdrawn (subject to IRS conditions)

•   You think your tax rates will be lower when you             •   You think your tax rates will be higher when you
                                                                    retire than they are today
    retire than they are today
                                                                •   Your personal tax situation limits the benefits of
•   The current tax savings you get by making pretax                pretax contributions today (your income is low or
    contributions is substantial                                    you have high tax deductions or credits)
•   Increasing your income would reduce tax credits             •   You plan to leave the money in the plan until you
    you may be eligible for now                                     retire
•   You believe the certainty of an immediate tax               •   You are younger and have a long time to
    reduction outweighs a potentially larger, but                   accumulate earnings on your contributions
    uncertain tax reduction in the future                           (compounding earnings will have a greater impact
                                                                    on the amount distributed tax free)
•   You have the self-discipline to take the tax savings
                                                                •   You are not eligible for a Roth IRA due to income
    and invest them for retirement                                  limitations




                                                           40
                    ®




Plan Tools
Information to help manage your 401(k) account
•   Customer service options
•   Account access capabilities
•   Ongoing communications
•   Education and planning tools




                               41
                    ®




Convenient Customer Service Options

Interactive Voice Response (IVR) System
• 1-888-917-7191


Speak with a Retirement Specialist
•   Call IVR System
•   Press 0
•   8:00 a.m. – 8:00 p.m. (CST)
•   Monday - Friday


                                  42
                                      ®




Quick Access
Web site: GetRetirementRight.com
•    Account balance information
•    Investment election changes
•    Deferral percentage changes*
•    Transfers among current funds
                                          [The bullets on this slide may be variable,
•    Sample loan modeling*
                                          depending on the specific plan’s features - for
•    Loan requests*                       example, if loans are not available, the bullet may
•    Statements on demand                 be deleted.]
•    Fund performance information
•    Distribution requests
•    Retirement planning tools
•    Wireless application protocol

    * Availability may vary by plan       43
                ®




Ongoing Communications

Quarterly Statements        Quarterly Newsletters




                       44
                ®




Education and Planning Tools
  Enrollment Booklet        Retirement Calculator




                       45
             ®




Education and Planning Tools
        SmartPlan EnterpriseSM




                       46
               ®




Online Tools




                   47
                  ®




Remember
•   Start saving early
•   Contribute regularly
•   Choose investments that meet your unique needs
•   Online and telephone support is always available
                                          ®




Important Information
 All graphs and charts are for illustration purposes only and do not represent actual performance of
 specific investments. Your investment results will differ.
 Unless noted, illustrations assume 6 percent growth per year with money deposited at the beginning
 of the month.
 Figures have been reduced based on a tax rate of 27.5 percent.
 Taxes must be paid when funds are withdrawn.
 This presenter does not offer investment advice, legal advice, tax advice or tax opinions. Consult
 with your investment, legal or tax professional before taking any action based on this information.
 Past performance is no guarantee of future results.

 Investment options are offered through a group variable annuity contract (Forms 902-GAQC-09 or 902-GAQC-09(CT) or 902-
 GAQC-09(OR)) underwritten by United of Omaha Life Insurance Company for contracts issued in all states except New York.
 United of Omaha Life Insurance Company, Omaha, NE 68175 is not licensed in New York. In New York, Companion Life
 Insurance Company, Hauppauge, NY 11788 underwrites the group variable annuity (Form 900-GAQC-07(NY)). Each company
 accepts full responsibility for each of their respective contractual obligations under the contract but does not guarantee any
 contributions or investment returns except as to the Guaranteed Account and the Lifetime Guaranteed Income Account as
 provided under the contract. Neither United of Omaha Life Insurance Company, Companion Life Insurance Company, nor their
 representatives or affiliates offers investment advice in connection with the contract.

 Lifetime Guaranteed Income Account (Rider Forms 651-GAQR-10 or 651-GAQR-10(OR)) may not be available in all states and
 specific features may vary by state. Availability may vary by plan. The Lifetime Guaranteed Income Account is not available in
 Nevada or New York.

                                                                    49

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:1
posted:10/2/2012
language:English
pages:49