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PLAN FOR RETIREMENT. 1. AFN32287_0512. AFN32287_1007. Why Mutual of Omaha?. Proven financial strength and stability Customer-focused core values.

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PLAN FOR RETIREMENT

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AFN32287_0512

AFN32287_1007

why mutual of omaha
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.

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today s agenda
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

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why save for retirement
Why Save for Retirement?

Social Security will not be enough

The impact of inflation

Increased years in retirement

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current income sources for today s retirees
Current Income Sources for Today’s Retirees

ASSET INCOME 11%

SOCIAL SECURITY 37%

PENSIONS 19%

OTHER 3%

EARNINGS 30%

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

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higher cost of inflation
Higher Cost of Inflation

TAKE A LOOK AT HOW PRICES MAY CHANGE OVER TIME:

Sources: Inflation Data.com, 2012

Current prices are estimates. Future prices based on an annual 2.65 percent rate of inflation.

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increased years in retirement
Increased Years in Retirement

WHY DOES MY LIFE EXPECTANCY MATTER?

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what is a 401 k plan
What is a 401(k) Plan?

A retirement plan offered by your employer

You contribute

Your employer may contribute matching contributions

Convenience

Tax advantages

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advantages of investing pretax dollars
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.

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the power of tax deferred growth
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.

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how much do you need to save
How Much Do You Need to Save?

Identify personal needs

Develop a plan

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how much money will i need
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 inflation of 3.25 percent.

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how much should i contribute
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.

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why is time important
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 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.

$191,696

$136,694

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where should i invest my money
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.

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asset classes
Asset Classes

Annual Investment Returns of Various Asset Classes

This graph shows the rolling

12 month returns through 12/31/2011 for Domestic Stocks, International Stocks, Bonds and Stable Value categories

Legend:

Stable Value = 90-day T-bills Domestic Stocks = S&P 500 Index

Bonds = BarCap Aggregate Bond Index International Stocks = MSCI EAFE

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simplified investing through professional investment portfolios
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

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mutual directions portfolios
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

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mutual directions portfolios21
Mutual Directions® Portfolios

Conservative to Aggressive Portfolios

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

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mutual glidepath sm portfolios
Mutual GlidePathSM Portfolios

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.

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mutual glidepath sm
Mutual GlidePathSM

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

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

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

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

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

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

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

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

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

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

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vanguard target retirement funds
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.

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vanguard target retirement funds26
Vanguard® Target Retirement Funds

Vanguard Target Retirement Income FundDesigned for investors already in retirement.

Vanguard Target Retirement 2015 FundDesigned for investors who intend to retire within five years of 2015.

Vanguard Target Retirement 2020 FundDesigned for investors who intend to retire within five years of 2020.

Vanguard Target Retirement 2025 FundDesigned for investors who intend to retire within five years of 2025.

Vanguard Target Retirement 2030 FundDesigned for investors who intend to retire within five years of 2030.

Vanguard Target Retirement 2035 FundDesigned for investors who intend to retire within five years of 2035.

Vanguard Target Retirement 2040 FundDesigned for investors who intend to retire within five years of 2040.

Vanguard Target Retirement 2045 FundDesigned for investors who intend to retire within five years of 2045.

Vanguard Target Retirement 2050 FundDesigned for investors who intend to retire within five years of 2050.

Vanguard Target Retirement 2055 FundDesigned for investors who intend to retire within five years of 2055.

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

build your own
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.

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monitored funds
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.

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monitored funds continued
Monitored Funds (Continued)

Domestic Stock Funds (continued)

Dreyfus/ The Boston Company Small/Mid Cap Growth Portfolio

Goldman Sachs Small CapValue Fund

Growth Stock Index Fund

Harbor Capital Appreciation Fund

John Hancock Disciplined Value Mid Cap Fund

Lord Abbett Value Opportunities Fund

MFS Value Fund

Mid Cap Stock Index Fund

  • Royce Total Return Fund
  • Small Company Fund*
  • Small Cap Stock Index Fund
  • Stock Market Index Fund
  • Strategic Value Fund*
  • Target Small Capitalization Value Portfolio
  • T. Rowe Price Growth Stock Fund
  • Value Stock Index Fund
  • Vanguard® Morgan Growth Fund
  • Vanguard® Windsor II™ 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.

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monitored funds continued30
Monitored Funds (Continued)

International Stock Funds

Causeway International Value Fund

Dodge & Cox International Stock Fund

Emerging Markets Index Fund

Franklin International Small Cap Growth 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

Specialty Funds

  • Cohen & Steers Institutional Realty Shares
  • Franklin Growth Fund
  • Lord Abbett Fundamental Equity Fund
  • Oppenheimer Global Fund
  • Vanguard Global Equity Fund

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Availability may vary by plan and may change over time.

self directed brokerage account
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.

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professionally managed account options
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

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professionally managed account option
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

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professionally managed account option34
Professionally Managed Account Option

Additional costs apply

Morningstar® Retirement Manager™

Professional investment guidance

Managed account services

Ongoing account review

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qualified default investment alternatives qdia
Qualified Default Investment Alternatives (QDIA)

QDIA solutions include:

Stadion

Mutual GlidePath portfolios

Vanguard Target Retirement Funds

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how do i get started
How Do I Get Started?

Determine how much to contribute

Choose how to invest your money

Complete the enrollment forms

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your plan features
Your Plan Features

Plan highlights

Plan tools

37

plan highlights
Plan Highlights

Eligibility

Contributions

Vesting

Investment options

Loans

Distributions

38

roth 401 k more ways to save for retirement
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
What is more advantageous – Roth or Pretax

You may want to consider pretax contributions if:

Minimizing the taxes you pay today is very important to you

You think your tax rates will be lower when you retire than they are today

The current tax savings you get by making pretax contributions is substantial

Increasing your income would reduce tax credits you may be eligible for now

You believe the certainty of an immediate tax reduction outweighs a potentially larger, but uncertain tax reduction in the future

You have the self-discipline to take the tax savings and invest them for retirement

You may want to consider Roth contributions if:

You want your retirement savings to be tax free when withdrawn (subject to IRS conditions)

You think your tax rates will be higher when you retire than they are today

Your personal tax situation limits the benefits of pretax contributions today (your income is low or you have high tax deductions or credits)

You plan to leave the money in the plan until you retire

You are younger and have a long time to accumulate earnings on your contributions (compounding earnings will have a greater impact on the amount distributed tax free)

You are not eligible for a Roth IRA due to income limitations

40

plan tools
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
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

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quick access
Quick Access

Web site: GetRetirementRight.com

Account balance information

Investment election changes

Deferral percentage changes*

Transfers among current funds

Sample loan modeling*

Loan requests*

Statements on demand

Fund performance information

Distribution requests

Retirement planning tools

Wireless application protocol

[The bullets on this slide may be variable, depending on the specific plan’s features - for example, if loans are not available, the bullet may be deleted.]

* Availability may vary by plan

43

ongoing communications
Ongoing Communications

Quarterly Statements Quarterly Newsletters

44

education and planning tools
Education and Planning Tools

Enrollment Booklet Retirement Calculator

45

education and planning tools46
Education and Planning Tools

SmartPlan EnterpriseSM

46

remember
Remember

Start saving early

Contribute regularly

Choose investments that meet your unique needs

Online and telephone support is always available

important information
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.

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