Get documents about "New York State Retirees Withholding Forms
Description
New York State Retirees Withholding Forms document sample
Document Sample
®
AFN32287_0311
AFN32287_1007
1
®
Why Mutual of Omaha?
• Proven financial strength and stability
• Customer-focused core values
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
Source: Social Security Administration, Income of the Aged Chartbook, 2008
5
®
Higher Cost of Inflation
Sources: Inflation Data.com, 2008
Current prices are estimates. Future prices based on an annual 3.98 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?
This chart is for illustration purposes only. Not
intended to be investment advice; consult your
financial/tax adviser for information about your
specific situation. Assumes pretax savings through this
plan and other tax deferred savings, no change in
Social Security benefits, a 6 percent annual rate of
return on investments after retirement, retiring at age
67 and living until age 85, with all funds exhausted by
age 85. Assumes that salary and payout will grow at an
annual rate of inflations of 1.75 percent.
12
®
How Much Should I Contribute?
This chart is for illustration purposes only. Chart
computes contributions suggested to reach 75 percent of
income needed for retirement. Not intended to be
investment advice; consult your financial/tax adviser for
information about your specific situation. Some amounts
may exceed plan- or IRS-imposed participant
contribution limits for defined contribution plans. Check
the Plan Highlights section of your enrollment book for
the IRS-imposed contribution limits.
13
®
Why is Time Important?
The Benefits of Starting Early
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.
This illustration assumes a 6 percent nominal growth 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. This feature may impact pricing.
15
®
Time Horizon
16
®
Risk/Return Profiles
17
®
Asset Classes
Annual Investment Returns
of Various Asset Classes
This chart shows the highest,
lowest, and average return over
the last 20 years of different
types of investments (20-year
period ending December 31,
2008).
Legend:
Stable Value = 90-day T-bills U.S. Stocks = S&P 500 Index
Bonds = BarCap Aggregate Bond Index International Stocks = MSCI EAFE
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
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.
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.
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
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 Fund* • Stock Market Index Fund
• Growth Stock Index Fund • Strategic Value Fund*
• Target Small Capitalization Value Portfolio
• Harbor Capital Appreciation Fund
• T. Rowe Price Growth Stock Fund
• John Hancock Disciplined Value Mid Cap
Fund • Value Stock Index Fund
• Vanguard® Morgan Growth Fund
• Lord Abbett Developing Growth Fund
• Vanguard® Windsor II™ Fund
• Lord Abbett Value Opportunities Fund
• Waddell & Reed New Concepts Fund
• MFS Value Fund
• William Blair Small-Mid Cap Growth I Fund
• Mid Cap Stock Index 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
• Artio International Equity Fund II • Cohen & Steers Institutional Realty Shares
• Causeway International Value Fund • Franklin Growth Fund
• Dodge & Cox International Stock Fund • Lord Abbett Fundamental Equity Fund
• Emerging Markets Index Fund • Nuveen Tradewinds Global All-Cap Fund
• Franklin International Small Cap Growth • Oppenheimer Global Fund
Fund
• Stadion Tactical Fund
• Harbor International Fund
• International Developed Countries Fund • Vanguard Global Equity Fund
• International Stock Index Fund
• International Emerging Markets Fund
• Well 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
32
®
Professionally Managed Account Option
Stadion
• Fully automated feature
• Manages investments based on current market conditions
• Defaulted based on age or individual preference
33
®
Professionally Managed Account Option
Morningstar® Retirement Manager™
• Professional investment guidance
• Managed account services
• Ongoing account review
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
®
Online Tools
46
®
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 legal advice, tax advice or tax opinions. Consult with your 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(OR) or 902-
GAQC-09(CT) or 901-GAQC-07) 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
New York.
48
