retirement 101 enrollment presentation
TRANSCRIPT
PLANNING FORRETIREMENT
HELPING PUBLIC EMPLOYEES
PREPARE FOR AND LIVE IN RETIREMENT
Welcome
Your Future■
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Welcome
Reality:
Long-term or
assisted-living
care
Inflation
Outliving
your
money
Health
care
Welcome
you
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PlanPrimer
Plan PrimerPlan Primer
Compounding
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Plan Primer
Compounding
This illustration is a hypothetical compounding calculation assuming a 7% annual rate of return. It is not intended to serve as a projection or
prediction of the investment results of any specific investment. Investments are not guaranteed. Depending on your underlying investments,
your return may be higher or lower. Interest compounded annually based on beginning-year contributions. No taxes or fees are reflected in
this example, which would lower the results displayed.
Source: Nationwide Financial® (2012).
30 35 40 45 50 55 60 65
25-year Investment/
Compounding Period
$135,353at retirement
Investor 2’s account
10 Year Investment/
Compounding Period
Additional Compounding
On Top Of Investment
$160,474at retirement
Investor 2’s account
Plan Primer
*Chart assumptions: This hypothetical illustration assumes a 25% tax rate, $50
biweekly deferrals (for 25 years), and a 7% rate of return with reinvestment of
income. The tax-deferred total does not reflect fees and expenses incurred under
a particular investment. If these were taken into account, they would reduce the
performance shown. This hypothetical information is not intended to predict or
project the investment results of any specific investment. Investment return is
not guaranteed and will vary based on your investments and market experience.
Tax Advantage
$50 taxable= $37.50 contributed
After-tax
Account
$49,469
$50 pretax= $50 contributed
Deferred
Comp
Account
$63,885
Plan Primer
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Advantages...
Plan Primer
Smart choices
This table shows the cumulative value of 26 biweekly deferral amounts over 20, 25, and 30 years, assuming a compound annual rate of 7%
and a 25% federal tax rate, for a single person with an annual salary of $38,000 and one deduction for federal tax purposes. Actual investment
returns will vary from year to year, and the value of your account after the specified periods of years shown in the table may be less or more
than the amounts shown. This illustration is hypothetical and is not intended to serve as a projection of the investment results
of any specific investment. If fees and expenses were reflected, the returns would have been less.
Growth Period Ending Balance
Deferral Per Pay Paycheck Impact Annual DeferralAccumulation
10 Years
Accumulation
10 Years
Accumulation
10 Years
$25 $18.75 $650 $9,304 $27,605 $63,607
$50 $37.50 $1,300 $18,607 $55,210 $127,214
$75 $56.25 $1,950 $27,911 $82,815 $190,821
$100 $75.00 $2,600 $37,214 $110,420 $254,428
$200 $150.00 $5,200 $74,429 $220,841 $508,856
$300 $225.00 $7,800 $111,643 $331,261 $763,283
$400 $300.00 $10,400 $148,857 $441,681 $1,017,711
$500 $375.00 $13,000 $186,071 $552,102 $1,272,139
$600 $450.00 $15,600 $223,286 $662,522 $1,526,567
(Maximum) $654 $490.50 $17,000 $243,381 $722,149 $1,663,958
InvestmentBasics
Investment Basics
learning the lingo.
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Investment Basics
learning the lingo.
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Investment Basics
mutual funds?
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Investment Basics
risk and reward
International
Small-cap
Mid-cap
Large-cap
Bonds
Short Term Investments
Po
ten
tia
l R
ew
ard
(Th
e c
han
ce to
ma
ke
mo
ne
y)
Potential Risk(The chance to lose money)
InvestmentStrategy
Investment Strategy
the difference.
Investment Strategy
Investment Strategy
Conservative
Moderately
Conservative Moderate
Moderately
Aggressive Aggressive
International 5% 10% 15% 25% 30%
Small-cap 0% 0% 5% 5% 10%
Mid-cap 5% 10% 10% 15% 15%
Large-cap 10% 20% 30% 35% 40%
Bonds 40% 35% 25% 15% 5%
Short-term investments 40% 25% 15% 5% 0%
choose your style.
Asset allocation models provided by Ibbotson Associates Advisors, LLC, a leading financial consulting organization. Ibbotson uses a broad
approach to diversify holdings across asset categories, which include combinations of different types of stock investments, diversified real
return, bonds, and short-term investments.
Investment Strategy
Go hands-on or hands-off.
Hands-off A little of both Hands-on
Professionally
Managed Accounts1
Target Date Funds2,3/
Investor Profile Funds2
The Plan’s Available
Investments2/
Self-Directed Option2
1 Investment advice for Nationwide ProAccount is provided to plan participants by Nationwide Investment Advisors, LLC, an SEC-registered
adviser. Nationwide Investment Advisors, LLC, has hired Wilshire Associates Incorporated as the Independent Financial Expert for ProAccount.
2 Offering may not be available in your plan.
3 Target Maturity funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily
by investing in underlying funds. Therefore, in addition to the expenses of the Target Maturity funds, an investor is indirectly paying a proportionate
share of the applicable fees and expenses of the underlying funds. Target Maturity funds are designed for people who plan to withdrawal funds
during or near a specific year. These funds use a strategy that reallocates equity exposure to a higher percentage of fixed investments over time.
As a result, the funds become more conservative as they approach retirement. It’s important to remember that no strategy can assure a profit or
prevent a loss in a declining market. A target date fund’s principal value is not guaranteed at any time, including the target date designated in the
fund’s name.
AccountManagement
Investment Strategy
in sync with your life.
Investment Strategy
A little bit more saving
could go a long way...
$2.80 gourmet coffee
x 258 working days in a year_____________________________________
$722.40 per year
Investment Strategy
a big difference over time.
This illustration is a hypothetical
compounding example that assumes
biweekly deferrals (for 35 years) at a 7%
annual effective rate of return. It illustrates
the principle of time and compounding. It is
not intended to predict or project the
investment results of any specific
investment. Investment returns are not
guaranteed and will vary depending on
investments and market experience. If
fees, taxes, and expenses were reflected,
the hypothetical returns would be less.
Year 1
Year 5
Year 10
Year 25
Year 30
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
Increases
contributions
$25 per paycheck each year
$1,365,431
Maintains
$100 per paycheck
contributions
$375,338
Investment Strategy
Rebalance■
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Combine Catch up■
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Investment Strategy
Stay in the plan
Chart assumptions: 4% annualized effective rate of
return applied daily during “income” phase; and
withdrawals taken at the end of each month. The
systematic payout assumes a $0 balance at the end of
a 20-year period. Withdrawals may need to be more
than the amount shown to meet the required minimum
distribution requirements; withdrawals will be taxed as
ordinary income. This hypothetical illustration is not
intended to predict or project investment results. This
chart is not intended to project the performance of
your deferred compensation account. Investments
involve risk including possible loss of principal. Actual
investment results will vary depending on your
investments and market experience. Income stream
durations and amounts are not guaranteed.
Monthly Income for a
20-year Systematic Payout
Account Value
at Age 65
$100 $16,660
$250 $41,649
$500 $83,298
$750 $124,948
$1,000 $166,597
$1,500 $249,895
$2,000 $333,192
$3,000 $499,788
$4,000 $666,385
$4,000 $832,981
Investment Strategy
beneficiaries
Remember what matters
Take advantage of the plan
Think about investment basics
Refresh your strategy
Stay up-to-date and your accounts
Next Steps...
Neither Nationwide® nor any of its representatives give legal or tax advice.
Information provided by Retirement Specialists is for educational purposes only
and is not intended as investment advice.
Nationwide Retirement Solutions, Inc. and Nationwide Life Insurance Company
(collectively "Nationwide") have endorsement relationships with the National
Association of Counties and the International Association of Firefighters-Financial
Corporation. More information about the endorsement relationships may be found
online at www.nrsforu.com.
Nationwide Retirement Solutions, Inc. and its affiliates (Nationwide) offer a variety
of investment options to public sector retirement plans through variable annuity
contracts, trust or custodial accounts. Nationwide may receive payments from
mutual funds or their affiliates in connection with those investment options.
For more detail about the payments Nationwide receives, please visit
www.nrsforu.com.
Retirement Specialists are registered representatives of Nationwide Investment
Services Corporation, member FINRA. In MI only: Nationwide Investment
Svcs. Corporation.
Nationwide, the Nationwide framemark, and On Your Side
are service marks of Nationwide Mutual Insurance Company.
©2012 Nationwide Retirement Solutions Inc. All rights reserved.
NRM-4952AO.4 (11/12)