trusttalk - halliburton · 2019. 11. 22. · trusttalk current news concerning your retirement plan...

TrustTalk Current news concerning your retirement plan

Fall 2013

Building Your Savings Confidence

We all need to save money for the future, but only 13% of workers feel very confident about having adequate retirement funds, while 28% are not at all confident in their ability to fund a comfortable retirement.

Also, 28% of all workers surveyed say they have less than $1,000 saved for retirement, and only 46% have tried to calculate how much they need to save to live comfortably in retirement.*

Does this sound familiar? While you may know that you should save, you may not feel confident that you have saved enough or even that you can save for the type of retirement you want to have.

Experts suggest that you will need at least 80% of your current income during retirement. Your income can come from a variety of sources, including investments and Social Security. But how do you know if 80% will be enough for you? Fidelity offers a tool to help you determine how much you need to save. See Fidelity Resource Corner: Retirement Income Planner

on page 14 for instructions on how to access and use the tool. While the total dollar amount you see may be daunting at first, see Making the Most of the Halliburton Retirement and Savings Plan on page 6 for an overview of how just saving a little more each month can make a big difference in your retirement balance.

Experienced a Setback?

Life happens. If you have experienced an emergency that depleted your savings or you have not consistently saved, it is never too late to get back on track. Keep in mind, you may need to be more aggressive in your saving.

Revise your budget to cut expenses so that you have more to put toward your retirement fund. Contribute as much as you can to the Plan and take full advantage of the company match.

*All statistics from the 2013 Retirement Confidence Survey (RCS) by the Employee Benefit Research Institute (EBRI).

Here are some ideas about how to save.

Take advantage of the Halliburton Retirement and Savings Plan. Halliburton offers a dollar-for-dollar company match on the first 4% you contribute per pay period and $0.50 on the next 2% you contribute per pay period, for a total 5% company match. Contribute at least 6% of your salary each pay period to take full advantage of the company match. Your contributions are deducted before taxes, giving your savings a boost and you a tax break.

A good general rule is to increase the percentage you contribute every time you get a raise. This way, your savings and income have the potential to grow together throughout the years and outpace the eroding power of inflation.

Also, consider making automatic transfers from your paycheck to a savings or investment account. Experts suggest having three to six months of living expenses in your savings account. If you can, only use your savings for emergencies or earmarked purchases (like a down payment for a house).

Set Spending Limits. Credit cards, debit cards and ATMs make cash instantly available at the touch of a button. Take a moment to set a budget. At the beginning of the week, withdraw that amount from your checking account and stick to it. Make a separate budget for larger purchases.

Trust Talk is published by the Halliburton Trust Investments Department. It is designed to provide members of the Halliburton Retirement and Savings Plan with conventional wisdom on saving and investing. The information included in Trust Talk is not intended as financial advice. You may want to consult a financial advisor before making any investment decisions.

Suggestions or comments about Trust Talk can be sent to Sharon Cowher or Maria Martin, Trust Investments Department, 10200 Bellaire Blvd., Houston, Texas 77072.

Keep Paying. When your credit card, car or other loan is paid off, continue making those payments into your savings account. Eliminating debt will increase your net worth, and by continuing to build your savings, you are that much closer to reaching your goals.

Split Up Windfalls. If you receive an inheritance, tax refund, bonus or another windfall, rather than spend it all, set aside a portion to save. This way, you will get to splurge on something you want and increase your savings.

Brown Bag It. Weed out the unnecessary from the necessary expenses by making a list of what you need to buy each week (gas for your car or transit tickets) and what you don’t (lunch out every day). While there is nothing wrong with grabbing a great cup of joe at the local coffee shop, if you cut that down to just twice a week, you could save $10-$15 a week, which adds up over the course of a year.

Saving to meet short- and long-term goals does not have to be difficult, but it does require that you take a proactive approach. With a little time and effort, your goals can become a reality.

Update Your Beneficiaries

A key to financial planning is periodically reviewing your beneficiaries for all of your investment accounts. The end of the year can be a good time for such a review. To protect your beneficiary(ies), review and update your beneficiary designations on a regular basis and every time you have a qualifying family status event, such as marriage or birth of a child.

As a result of the recent Supreme Court ruling on same-sex marriage, legally married same-sex spouses now have the right to receive survivor benefits from their spouse’s retirement plans.

Need to make a change? Follow these steps to update your beneficiaries:

1. Go to www.halliburton.com/totalrewards.2. Select “wealth.”3. On the first screen, click on “Your Profile” at the top.4. On the next screen, select “Beneficiaries.”5. Make your changes, save them and exit.

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Year-End Financial Review

While you have plenty to do at the end of the year, it is important to fit in time to look at your investment portfolio and ensure that you are on the right track for the New Year. Here are three areas of your finances to review before January 1:

Your StrategyHas a major life change in 2013 changed your financial strategy – gotten married, kids leave the house, gained a grandchild? If your long or short-goals have changed, now is the time to adjust your investment strategy accordingly and to contact your financial advisor if you need assistance.

Your ContributionsYou need to contribute at least enough to maximize the company match (see Making the Most of the Halliburton Retirement and Savings Plan on page 6). Once you have done that, try to contribute more. When you get a raise or a bonus, increase your Plan contributions or how much you put into your savings account (or both). You will be happy to have those extra dollars during retirement.

Your InvestmentsHalliburton made some changes to the Plan in June and now is a great time to look at your investments to make sure they are allocated the way you want them, and rebalance if necessary if you are invested in the Single Focus Strategies. If you are invested in the Retirement Portfolios, remember that they rebalance themselves, but it is always a good idea to review your investments periodically.

Q&A: Saving for Your Future

In each issue of Trust Talk, we answer some common questions we hear employees asking about investing. In keeping with this issue’s theme, we will answer questions we frequently hear about saving.

How do I get started saving?Halliburton makes it easy for you. See Making the Most of the Halliburton Retirement and Savings Plan on page 6 for details on how the Plan works and why taking full advantage of the company match is so important.

When should I start saving?Today. It is never too early – or too late – to start saving. The company automatically contributes the Halliburton Basic Contribution of 4% of your eligible annual pay, even if you do not contribute anything, as long as you’re employed on the last day of the year (or terminate employment due to retirement, death or disability, as defined by the Plan).

In addition, Halliburton offers a dollar-for-dollar company match on the first 4% you contribute and $0.50 on the next 2% you contribute, for a total 5% company match. You must contribute at least 6% of your salary each pay period to receive the maximum company match.

How much should I save?Experts suggest saving at least 10% of your income each month, which includes both contributions you make to the Halliburton Retirement and Savings Plan, as well as contributions to other savings vehicles, such as savings accounts or IRAs. Saving 10% does not guarantee you a secure retirement, but it’s a good starting point.

What investment options should I invest in?That depends on your time horizon (how close you are to retirement) and risk tolerance. In addition, think about how you prefer to invest – do you prefer a portfolio built FOR you or a portfolio built BY you. If you prefer a portfolio built FOR you, Halliburton offers the Retirement Portfolios, which are target date funds. You simply choose the Retirement Portfolio based on your expected date of retirement at age 65 and the Portfolio changes the asset allocation to become more conservative over time. If you are more hands-on and prefer to build a custom portfolio, you can choose from the 10 Single Focus Strategies. To review your investment options, go to www.halliburton.com/totalrewards.com (former employees should go to www.netbenefits.com).

How can I ensure I make the right investment choices?Start by making your investment choices based on your tolerance for risk and your financial goals. Do a little research and planning, perhaps with the help of a financial

advisor. Remember, you need to periodically re-evaluate your portfolio as your life circumstances change, even if you are invested in one of the Retirement Portfolios.

What if I need to change my investments?At any time you can change how your current balance and future contributions in your account will be invested. Go to www.halliburton.com/totalrewards.com (former employees should go to www.netbenefits.com) to get started.

Where can I go for more information on saving and investing? There are many resources you can use, including Fidelity. Go to www.halliburton.com/totalrewards.com (former employees should go to www.netbenefits.com) to link to the Fidelity website. There you will find a wealth of information about investing, tools you can use and much more, including access to your Plan account.

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How to Read Your Fact Sheets

When you need to know the details of your investment options, where do you turn? Did you know that you are provided with Fact Sheets that give you detailed information about each of your investment

options? These offer you a wealth of information about your investment options, but may be a little overwhelming to read and understand.

You are not alone if you find them difficult to understand. Think about it — most of us are not trained in how to read financial information and could use some help. That is

why we have developed this guide to understanding your investment options. It will help you make the most out of the investment information provided to you.

1. General Information This section shows the benchmark with which the investment option’s performance is compared, the total plan assets of the option in millions and the inception date of the option. Each investment option has a benchmark listed. The benchmark represents the standard return for this type of investment and can be used to review long-term performance for the investment and to compare the Halliburton investment option’s performance.

2. Investment Objective & Strategy The objective is the goal and purpose of the option and the investment strategy is what the option will invest in to achieve the goal.

3. Fees and Expenses Fees and expenses are presented as a percentage of the option’s asset value and in dollars per $1,000 worth of investment. This shows how much your expenses are per $1,000 you have invested in this option.

4. Volatility AnalysisThis graph illustrates the option’s volatility. Options with a wider range of price fluctuations are labeled “high,” as they are considered riskier than options with a narrower range of price fluctuations. The more volatile an investment the higher the risk it carries of losing capital on your base investment, if you withdraw or transfer your money out of the investment option when the price is low.

5. Credit AnalysisThe analysis reveals the percentage of fixed-income securities that fall within each credit-quality rating as assigned by Moody’s. At the top of the ratings are U.S. government

bonds. Bonds issued and backed by the federal government are high quality and thus are rated AAA, which is the highest possible rating a corporate issue can receive.

6. Bond SectorsThis section is a snapshot of the bond sectors the investment option is invested in.

7. Performance This section gives you information on how the option has performed over time, as compared to the benchmark, illustrating the change in the value of the option. Remember, past performance is not an indication of future returns.

8. Portfolio CompositionA breakdown of the option holdings into eight general investment groups: Cash, U.S. Stocks, Non-U.S. Stocks, High Yield Bonds, Core Bonds, REITs, TIPs and Other. Stable Value, commodities and Natural Resources are reported under “Other”.

9. Stock SectorsThis section is a snapshot of the stocks sectors the investment option is invested in. Stocks are mapped into one of 11 sectors, which in turn roll up to three super sectors.

10. Stable Value Ratings The analysis reveals the credit quality ratings of each stable value wrap provider as assigned by Moody’s and S&P.

11. Top Holdings Where applicable, these charts provide the top 10 holdings, country allocation and sectors of the securities held in the option.

Where to Find Your Fact Sheets

You can find the current Fact Sheets for your investment options at www.halliburton.com/totalrewards.com (former employees should go to www.netbenefits.com).

Fact sheets are updated quarterly with new information, including performance numbers.

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12. Top 10 CountriesWhere applicable, these charts provide the top 10 countries held in the option.

13. Equity Style BoxWhere applicable, the Equity Style Box is a nine-square grid that provides a graphical representation of the “investment style” of stocks and mutual funds. For equity funds, it classifies securities according to market capitalization (the vertical axis) and growth and value factors (the horizontal axis).

Management Company Firm(s) responsible for managing the underlying portfolio(s) for the option is(are) listed in this section. This is located on the back of the Fact Sheet, along with other additional information about the investment option. It is not displayed in this example.

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When you are saving for retirement the number one thing you want to do is save as much money as you possibly can. That sounds simple, but it can be difficult (see Building Your Savings Confidence on the

cover for more information about this topic). The results of the Retirement Confidence Survey indicate that 60% of individuals saving for retirement report that the value of their savings and investments, excluding the value of their primary home and defined benefit plans, is under $25,000, which will not be enough to live on during retirement.

The good news is that Halliburton makes it easy for you to save money in the Halliburton Retirement and Savings Plan (the Plan). You can contribute any percentage of your income you wish from 1% to 50% to the Plan, up to the IRS limits of $17,500 for 2013, or $23,000 if you are age 50 or over. The Halliburton match enhances your contributions.

Halliburton offers a dollar-for-dollar company match on the first 4% you contribute and $0.50 on the next 2% you contribute, for a total of 5% company match. You must contribute at least 6% of your salary each pay period to receive the maximum company match. However, contributing even just a little bit more makes a small dent in your paycheck — but could make a significant difference to your retirement savings balance in the future.

To demonstrate this, we will use the example of James, a 35-year-old Halliburton employee making $70,000 a year, who is paid bi-weekly. He expects to retire in 30 years at age 65. All figures assume annual returns of 8% and a 2% annual increase in his salary, but do not include the Halliburton Basic Contribution of 4%. All figures are rounded up to the nearest dollar.

Making the Most of the Halliburton Retirement and Savings Plan

So what do these numbers tell us? Due to the power of compounding, the more James contributes over time to the Plan, the more money he will have at retirement. The principle is simple, but the pay-off is significant.

As you can see, by increasing his match from 4% to 6%, James takes full advantage of the match and increases his nest egg by almost $318,000 – a considerable amount of money. Take note that this only sets him back $54 a paycheck, a little more than $100 a month. That $100 translates into brown bagging lunch a few times a week or skipping a night on the town a few times a month … and translates into $318,000 in 30 years.

If James increases his contribution to 8%, his nest egg increases almost $530,000 over 30 years for about $215 more a month in contributions (compared to contributing only 4%). While that might be more of a hit to his wallet, that extra $2,580 he contributes to the Plan each year means a big payday down the road.

So what does this mean for you? Consider contributing as much as you can now. A 1% or 2% increase today in your contribution could mean a big positive shift in your balance at retirement, without a major impact on your budget. Your first step is to maximize the match and your second step is to contribute as much as you can.

Percent of Salary Contributed to the Halliburton Retirement Plan

4% 5% 6% 7% 8%James’ Yearly Contribution $2,800 $3,500 $4,200 $4,900 $5,600Yearly Company Match in Dollars $2,800 $3,150 $3,500 $3,500 $3,500Bi-Weekly Contribution $108 $135 $162 $188 $215Bi-Weekly Paycheck* $2,585 $2,558 $2,531 $2,504 $2,477Balance at Age 65 $847,899 $1,059,847 $1,165,861 $1,271,848 $1,377,836

* Does not include other deductions, such as taxes or medical benefit contributions.

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Focus On: Large Cap Equity Strategy

The Plan now offers the Large Cap Equity Strategy as an investment option in the Single Focus Strategy lineup. In June, the Large Cap Value Equity Fund and Large Cap Growth Equity Fund were combined into one investment option –

the Large Cap Equity Strategy. This Strategy provides streamlined exposure to investment managers who utilize value and growth investment styles. Depending on market conditions, the Strategy may have a slight growth or value bias at any given time.

The Large Cap Equity Strategy seeks long term capital growth augmented by divided income. The Strategy invests in equity securities of established companies whose market capitalization is generally over $5 billion. The investment option is diversified across both the growth and value investment styles. Thus, a portion of the investment option is invested in companies considered to have above average prospects for growth, whereas the remainder of the investment option invests in stocks selling at prices below the overall market average compared with their dividend and future return profile.

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Retirement Prep for CouplesHave you and your spouse talked about your expectations during retirement? According to a 2011 Fidelity Investments survey of 648 married couples, 62% of couples do not agree on what age to retire, 47% do not agree on whether they will work in retirement and 33% have different ideas about their retirement lifestyle. The survey targeted couples born between 1936 and 1965.

Do you know if you and your spouse are on the same page? Here are some starting points for talking about it, based on the results of the survey.

Set Expectations

According to the survey, 33% of couples do not agree on the type of lifestyle to live during retirement. Cruising the high seas or puttering around the yard? Working part time or working on your golf swing? This is important to discuss, as it will influence the size of your retirement pot, how you draw down your retirement savings, where you live and when you retire. Even if you are already retired, talk with your spouse to make sure you both want the same things when it comes to your retirement lifestyle.

Plan, Plan, Plan

After years of working hard, your idea of retirement may be to relax, but you still need to have a plan in place – at least a financial plan. Both spouses should agree on a retirement income plan (e.g., budget, asset allocation strategy, withdrawal strategy). The good news is about 63% of couples surveyed have worked on a detailed retirement income plan to ensure they do not outlive their savings. Haven’t done this yet? Use the Fidelity Retirement Income Planner to get started (see page 14 for more details).

Stay on Track

About 57% of couples do not agree about how often to review their investments. It is key to monitor and rebalance your portfolio at least once a year. Halliburton offers four Retirement Portfolios specifically designed for individuals near or already in retirement – the Income Retirement Portfolio, and the 2005, 2010 and 2015 Retirement Portfolios. These investment options are target date funds and rebalance themselves, but you still need to review your investments at least once a year. Consider enlisting the help of a retirement planner, too.

And Keep Planning for the Medical Expenses

Roughly 30% of couples surveyed agree that unexpected major health care expenses are among the top concerns in retirement. According to the 2013 retiree health care costs estimate calculated by Fidelity Benefits Consulting, a 65-year-old couple retiring in 2013 is estimated to need $220,000 to cover out-of-pocket medical expenses throughout retirement. Do not lose sight of this important retirement expenditure!

Retiree Corner

Results of the 2013 Retirement Confidence Survey

The Retirement Confidence Survey (RCS) is the longest-running annual retirement survey of its kind in the nation. Sponsored by the Employee Benefit Research Institute, the American Savings Education Council and Mathew Greenwald & Associates, the annual RCS is a random, nationally representative survey of 1,000 individuals age 25 and over.

Here are some key findings from respondents who are currently in the workforce:

•14% are confident they have enough money saved for retirement

•37% expect to work past age 65•56% have not calculated how much they will need in

retirement•41% say that cost of living and day-to-day expenses

keep them from contributing to their employer’s retirement plan

•55% have a problem with their level of debt and only 50% say they could come up with $2,000 if an unexpected need arose within the next month.

•60% say the total value of their savings and investments is only $25,000 (not including home or pension plan values)

•66% have saved something for retirement

You can read the entire survey and the full results at http://www.ebri.org/pdf/surveys/rcs/2013

Knowing how much you will need in retirement is no easy task. However, Fidelity has developed the Retirement Income Planner tool to make it a little easier for you to develop a strategy. This tool includes tips on how to reach your goals and only takes about 30 minutes to complete. For more information on this tool, see the Fidelity Resource Corner article on page 14.

Sources: 2011 Fidelity Investments Couples Retirement Study Fidelity Benefits Consulting, 2013

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Newsstand

the laggards for the quarter, while the material, industrials, consumer discretionary, information technology and health care sectors outperformed the broad market. During the third quarter, small cap stocks outperformed large and mid cap stocks as the Russell 2000 Index rose 10.2%. Year-to-date, small caps are up 27.7%, outpacing the S&P 500 by 790 basis points. Growth stocks have surpassed value across all capitalizations for the quarter and for the year.

During the quarter, the yield on the 10-year Treasury rose from 2.52% to over 3% before settling at 2.64%. Investment-grade bonds outperformed Treasuries, advancing 0.8%, as spreads narrowed. For the third quarter, the Barclays U.S. Aggregate Index returned 0.6%, U.S. Treasuries rose 0.1%, and the Barclays U.S. TIPS Index was up 0.7%. The Barclays U.S. High Yield Index gained 2.3% for the quarter and high yield bonds are the only area of the fixed income market with positive returns (3.7%) year-to-date, with the exception of 1-3 month T-Bills (0.1%). Emerging markets debt was essentially flat (-0.4%), yet returned -7.6% year-to-date amid political instability, softening macro conditions and depreciating currencies.

International stocks outpaced domestic stocks for the quarter, yet remain 10-15% behind the U.S. for the year-to-date period. Emerging markets rebounded in the third quarter with a 5.8% gain, yet remain well below their developed counterparts year-to-date with a -4.4% return. Regionally, European and Middle Eastern markets gained 9.6% for the quarter but are down 3.0% during 2013. While Asian and Latin American equities advanced 5.3% and 4.1%, respectively, in the third quarter, but have fallen 1.6% and 11.3%, respectively, this year. Stocks appear to be

discounting weaker economic conditions and are trading below their

historical valuation averages and at a significant discount to developed country

stocks.

Slow Economy Recovery Continues Amid Government Shutdown and New Fed LeadershipIn the third quarter, the unemployment rate fell from 7.6% to 7.2%, mostly due to declines in labor force participation. The Fed surprised investors by leaving the pace of quantitative easing (also called QE3) unchanged at its September meeting. QE3 is the third round of changes that the Fed has made to boost the economy. While the Fed might begin to taper QE3 at its December meeting, the uncertain impact of the government shutdown in October and the ending of Bernanke’s term has led many observers to expect that the Fed will wait until the first quarter of 2014 to taper and until mid-to-late 2014 to end the program. The nomination of Janet Yellen to replace Ben Bernanke at the Fed makes a significant change in the QE3 philosophy unlikely.

Shifting market expectations of Fed policy led to significant interest rate volatility during the quarter as the yield on the 10-year Treasury spiked from 2.52% to over 3% in early September, before finishing the quarter at 2.64%. Equity markets experienced strong returns as the MSCI ACWI rose 7.9% for the quarter. The second quarter GDP was revised upward from 1.7% to 2.5%. However, the 16-day government shutdown in October could reduce fourth quarter GDP growth. Bloomberg projects that the economy will expand by 2.7% for 2014.

The Russell 3000 Index posted a solid gain of 6.3% for the quarter and is now up 21.3% year-to-date. The U.S. market remains the top performer in 2013 with the S&P 500 outperforming international developed and emerging markets by 4.2% and 24.2%, respectively. Productivity growth is slowing and unit labor costs are rising, which suggests companies have mostly exhausted cost cutting as a source of profit growth. Capital investments and hiring remain below trend, but are likely to increase, if the economic recovery continues. While this will be good for the economy over the short-term, it could put downward pressure on margins. Although it is expected that margins will decline, they will likely remain above average for some time.

The telecommunication services, utilities, consumer staples, financials and energy sectors were

Market Update

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Annualized Net of Fees Returns as of September 30, 2013 Annual Net of Fees Return

Expense One Year Ending September 30, 2013 ( d )

Investment Option Name / Benchmark NameInception

DateManagement

Style 1-Year 3-Years 5-Years10-Years /

Life (b) 2008 2009 2010 2011 2012

Annual Turnover Ratio as of

September 30, 2013Investment

Structure ( c ) Market Risk Inflation RiskPotential

Return % of AssetsPer $1,000 Invested

TARGET DATE PORTFOLIO (a)

Income Retirement Portfolio (b) 6/18/13 Active n/a n/a n/a 0.4% n/a n/a n/a n/a n/a 276% Separate Account Low Moderate Low 0.43% $4.30

14.2% MSCI All County World Index/20.4% Barclays Capital US Aggregate Index/38.0% Hueler Stable Value Pooled Fund Comparative Universe/16.3% Barclays Capital US Treasury Inflation Protected Securities (TIPS) Index/3.8% Dow Jones US Select REIT Index/3.8% Dow Jones- UBS Roll Select Commodity Index/1.9% S&P Global LargeMidCap Commodity and Resources Index)/1.6% Bank of America Merrill Lynch High Yield Bond Index

n/a n/a n/a 0.4% n/a n/a n/a n/a n/a

2005 Retirement Portfolio (b) 6/18/13 Active n/a n/a n/a 1.1% n/a n/a n/a n/a n/a 216% Separate Account Low Moderate Moderate 0.46% $4.60



2010 Retirement Portfolio (b) 6/18/13 Active n/a n/a n/a 1.8% n/a n/a n/a n/a n/a 150% Separate Account Moderate Moderate Moderate 0.48% $4.80




48.6% MSCI All County World Index/32.5% Barclays Capital US Aggregate Index/1.6% Hueler Stable Value Pooled Fund Comparative Universe/0.8% Barclays Capital US Treasury Inflation Protected Securities (TIPS) Index/4.4% Dow Jones US Select REIT Index/4.4% Dow Jones- UBS Select Roll Commodity Index/2.2% S&P Global LargeMidCap Commodity and Resources Index)/5.5% Bank of America Merrill Lynch High Yield Bond Index


2020 Retirement Portfolio (b) 6/18/13 Active n/a n/a n/a 3.2% n/a n/a n/a n/a n/a 63% Separate Account Moderate Low Moderate 0.51% $5.10

59.0% MSCI All County World Index/21.3% Barclays Capital US Aggregate Index/5.3% Dow Jones US Select REIT Index/5.3% Dow Jones-UBS Roll Select Commodity Index/2.6% S&P Global LargeMidCap Commodity and Resources Index)/6.5% Bank of America Merrill Lynch High Yield Bond Index


2025 Retirement Portfolio (b) 6/18/13 Active n/a n/a n/a 3.6% n/a n/a n/a n/a n/a 52% Separate Account High Low High 0.52% $5.20





















Investment Option Overview Investment Option Performance Update

The table below includes important information to help you compare the investment options under your retirement plan. It shows how the investment options have performed over time and allows you to compare them with an appropriate benchmark for the same time periods. Keep in mind that you cannot invest in the benchmark indices, which are set forth in italics on the chart underneath the name of each investment option.

( a ) The Target Date Portfolios will be the new qualified default investment alternative (QDIA) under the Plan within the meaning of the applicable U.S. Department of Labor regulations. Prior to June 14, 2013, the Moderate Premixed Portfolio was the QDIA.( b ) Where the investment option has been in existence for less than 10-years, performance provided is for the Life of the investment option, which is since the inception date. ( c ) Most investment options use institutionally managed separate accounts; this means the accounts are managed only for participants in the Halliburton Plans. Individual securities are bought and sold by professional investment managers selected by the Investment Committee. Collective Trusts are investment vehicles operated by banks or trust companies. Neither collective trust funds nor separate accounts are mutual funds. Unlike mutual funds, separate accounts and collective trust funds are not subject to and are not registered under the Securities Act of 1933 or the Investment Company Act of 1940. ( d ) Expenses for Target Date Portfolios, Large Cap Equity Strategy and Inflation Sensitive Strategy are estimates. Trading Restrictions focuses on what is known as a “round-trip” transaction. A round-trip is an exchange into and out of the same investment option, in excess of $1,000, within 30 days. Under the Policy, participants are limited to one round-trip transaction in any investment option within any rolling 90-day period, subject to an overall limit of four round-trip transactions across all investment options over a rolling 12-month period. The Policy governing the Stable Value Strategy (SVS) works differently. If money is transferred or reallocated into the SVS the number of units acquired in the transaction cannot be transferred out of the SVS for 30 calendar days. However, any units already in the SVS prior to the transaction are not subject to the 30-day waiting period.

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DateManagement


Life (b) 2008 2009 2010 2011 2012





TARGET DATE PORTFOLIO (a)

Income Retirement Portfolio (b) 6/18/13 Active n/a n/a n/a 0.4% n/a n/a n/a n/a n/a 276% Separate Account Low Moderate Low 0.43% $4.30



2005 Retirement Portfolio (b) 6/18/13 Active n/a n/a n/a 1.1% n/a n/a n/a n/a n/a 216% Separate Account Low Moderate Moderate 0.46% $4.60







48.6% MSCI All County World Index/32.5% Barclays Capital US Aggregate Index/1.6% Hueler Stable Value Pooled Fund Comparative Universe/0.8% Barclays Capital US Treasury Inflation Protected Securities (TIPS) Index/4.4% Dow Jones US Select REIT Index/4.4% Dow Jones- UBS Select Roll Commodity Index/2.2% S&P Global LargeMidCap Commodity and Resources Index)/5.5% Bank of America Merrill Lynch High Yield Bond Index


2020 Retirement Portfolio (b) 6/18/13 Active n/a n/a n/a 3.2% n/a n/a n/a n/a n/a 63% Separate Account Moderate Low Moderate 0.51% $5.10
























To direct or change your Plan investment options or for current information, including month-end performance and free paper copy of available information, please visit www.halliburton.com/totalrewards (if you are a current employee) or www.netbenefits.com (if you are a former employee). You may also call the Halliburton Benefits Center at (866) 321-0964 (international toll free, use your country’s AT&T access code, then (866) 321-0964) or for toll call (857) 362-5980, select option 2. Mailing address is Fidelity Investments, P.O. Box #770003, Cincinnati, OH 45277-0065.

Fees and Expenses include all charges to the investment options except for individual service that a participant may select such as overnight mailing fees of $25 per transaction. The investment option does not charge fees to contribute, transfer or withdraw from the option. Investment option performance is compared with benchmark index. Indices are unmanaged portfolios of specified securities and the indices do not reflect any initial or ongoing expenses. The investment option’s portfolio may differ significantly from the securities in the indices. Investment performance is determined after fees are charged to the options and assumes reinvestment of dividends and capital gains. Transaction costs incurred for buying and selling securities becomes part of the cost basis of the securities and are not included in the expense ratio. These costs, along with management fees, plan administration fees and other fees are paid out of the investment option’s assets, reducing the rate of return realized by participants. Cumulative effect of fees and expenses can substantially reduce the growth of a participant’s retirement account. Participants are encouraged to visit the Employee Benefits Security Administration website at: www.dol.gov/ebsa/publications/401k_employee.html for information and example demonstrating the long-term effect of fees and expenses. Fees and expenses are only one of several factors that participants and beneficiaries should consider when making investment decisions.

Plan Administrator: Halliburton Company Benefits Committee - 2107 City West Blvd., Bldg 2.601A Houston, TX 77042-3051, telephone number (281) 575-3000.

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Investment Option Overview Continued

( a ) The Target Date Portfolios will be the new qualified default investment alternative (QDIA) under the Plan within the meaning of the applicable U.S. Department of Labor regulations. Prior to June 14, 2013, the Moderate Premixed Portfolio was the QDIA.( b ) Where the investment option has been in existence for less than 10-years, performance provided is for the Life of the investment option, which is since the inception date. ( c ) Most investment options use institutionally managed separate accounts; this means the accounts are managed only for participants in the Halliburton Plans. Individual securities are bought and sold by professional investment managers selected by the Investment Committee. Collective Trusts are investment vehicles operated by banks or trust companies. Neither collective trust funds nor separate accounts are mutual funds. Unlike mutual funds, separate accounts and collective trust funds are not subject to and are not registered under the Securities Act of 1933 or the Investment Company Act of 1940. ( d ) Expenses for Target Date Portfolios, Large Cap Equity Strategy and Inflation Sensitive Strategy are estimates. Trading Restrictions focuses on what is known as a “round-trip” transaction. A round-trip is an exchange into and out of the same investment option, in excess of $1,000, within 30 days. Under the Policy, participants are limited to one round-trip transaction in any investment option within any rolling 90-day period, subject to an overall limit of four round-trip transactions across all investment options over a rolling 12-month period. The Policy governing the Stable Value Strategy (SVS) works differently. If money is transferred or reallocated into the SVS the number of units acquired in the transaction cannot be transferred out of the SVS for 30 calendar days. However, any units already in the SVS prior to the transaction are not subject to the 30-day waiting period.

The table below includes important information to help you compare the investment options under your retirement plan. It shows how the investment options have performed over time and allows you to compare them with an appropriate benchmark for the same time periods. Keep in mind that you cannot invest in the benchmark indices, which are set forth in italics on the chart underneath the name of each investment option.




DateManagement


Life (b) 2008 2009 2010 2011 2012





STABLE VALUE

Stable Value Strategy 1/2/87 Active 3.3% 3.4% 3.7% 4.4% 5.4% 4.2% 3.6% 3.6% 3.3% 671% Separate Account Low High Low 0.50% $5.00

Hueler Stable Value Pooled Fund Universe 1.9% 2.4% 2.7% 3.7% 4.6% 3.1% 3.1% 2.7% 2.3%

90 Day TBills 0.1% 0.1% 0.2% 1.7% 2.1% 0.2% 0.1% 0.1% 0.1%

BONDS

Bond Index Strategy 4/1/99 Passive -1.9% 2.7% 5.3% 4.5% 5.4% 5.9% 6.4% 7.7% 4.0% 71% Collective Trust Low High Low 0.16% $1.60

Barclays Capital US Aggregate Bond Index -1.7% 2.9% 5.4% 4.6% 5.2% 5.9% 6.5% 7.8% 4.2%

Intermediate Bond Strategy (b) 7/31/12 Active -1.2% n/a n/a -0.4% n/a n/a n/a n/a n/a 174% Separate Account Low High Low 0.42% $4.20

Barclays Capital US Aggregate Bond Index -1.7% n/a n/a -1.3% n/a n/a n/a n/a n/a

STOCKS

S&P 500 Index Strategy 4/1/99 Passive 19.3% 16.1% 9.9% 7.5% -37.0% 26.4% 15.0% 2.0% 15.9% 3% Collective Trust High Low High 0.13% $1.30

S&P500 Index -0.1% 16.3% 10.0% 7.6% -37.0% 26.5% 15.1% 2.1% 16.0%

Large Cap Equity Strategy (b) 6/18/13 Active n/a n/a n/a 7.6% n/a n/a n/a n/a n/a 51% Separate Account High Low High 0.66% $6.60

Russell 1000 Index n/a n/a n/a 4.8% n/a n/a n/a n/a n/a

Non US Equity Index Strategy (b) 7/31/12 Passive 16.7% n/a n/a 19.9% n/a n/a n/a n/a n/a 2% Collective Trust High Low High 0.22% $2.20

MSCI All Country World ex. U.S. Index 16.5% n/a n/a 19.7% n/a n/a n/a n/a n/a

Non US Equity Strategy 4/1/99 Active 16.5% 8.2% 7.8% 10.3% -44.1% 40.5% 13.4% -11.8% 20.2% 44% Separate Account High Low High 0.62% $6.20

MSCI All Country World ex. U.S. Index 0.7% 5.9% 6.3% 8.7% -47.1% 37.4% 8.4% -16.1% 16.8%

Mid Cap Equity Index Strategy (b) 1/3/05 Passive 27.5% 17.2% 12.9% 8.8% -36.2% 37.0% 26.4% -1.9% 17.7% 13% Collective Trust High Low High 0.15% $1.50

S&P MidCap 400 Index 27.7% 17.5% 13.1% 9.0% -36.2% 37.4% 26.6% -1.7% 17.9%

Small Cap Equity Strategy 4/1/99 Active 33.2% 17.3% 13.5% 9.0% -37.3% 41.3% 27.6% -5.1% 10.7% 56% Separate Account High Low High 0.87% $8.70

Russell 2000 Index 30.1% 18.3% 11.2% 9.6% -33.8% 27.2% 26.9% -4.2% 16.3%

OTHERS

Inflation Sensitive Strategy 6/18/13 Passive n/a n/a n/a -2.1% n/a n/a n/a n/a n/a 38% Collective Trust Moderate Low Low 1.02% $10.20

45% Barclays US Treasury Inflation Protected Serurities (TIPS) Index/ 20% Dow Jones-UBS Commodity Index Total Return/15% JPMorgan Emerging Local Markets Plus (ELMI+)/10% Dow Jones US Select REIT Total Return Index/10% Dow Jones-UBS Gold Subindex Total Return

n/a n/a n/a -2.0% n/a n/a n/a n/a n/a

12

Fees and Expenses include all charges to the investment options except for individual service that a participant may select such as overnight mailing fees of $25 per transaction. The investment option does not charge fees to contribute, transfer or withdraw from the option. Investment option performance is compared with benchmark index. Indices are unmanaged portfolios of specified securities and the indices do not reflect any initial or ongoing expenses. The investment option’s portfolio may differ significantly from the securities in the indices. Investment performance is determined after fees are charged to the options and assumes reinvestment of dividends and capital gains. Transaction costs incurred for buying and selling securities becomes part of the cost basis of the securities and are not included in the expense ratio. These costs, along with management fees, plan administration fees and other fees are paid out of the investment option’s assets, reducing the rate of return realized by participants. Cumulative effect of fees and expenses can substantially reduce the growth of a participant’s retirement account. Participants are encouraged to visit the Employee Benefits Security Administration website at: www.dol.gov/ebsa/publications/401k_employee.html for information and example demonstrating the long-term effect of fees and expenses. Fees and expenses are only one of several factors that participants and beneficiaries should consider when making investment decisions.

Plan Administrator: Halliburton Company Benefits Committee - 2107 City West Blvd., Bldg 2.601A Houston, TX 77042-3051, telephone number (281) 575-3000.

To direct or change your Plan investment options or for current information, including month-end performance and free paper copy of available information, please visit www.halliburton.com/totalrewards (if you are a current employee) or www.netbenefits.com (if you are a former employee). You may also call the Halliburton Benefits Center at (866) 321-0964 (international toll free, use your country’s AT&T access code, then (866) 321-0964) or for toll call (857) 362-5980, select option 2. Mailing address is Fidelity Investments, P.O. Box #770003, Cincinnati, OH 45277-0065.




DateManagement


Life (b) 2008 2009 2010 2011 2012





STABLE VALUE

Stable Value Strategy 1/2/87 Active 3.3% 3.4% 3.7% 4.4% 5.4% 4.2% 3.6% 3.6% 3.3% 671% Separate Account Low High Low 0.50% $5.00

Hueler Stable Value Pooled Fund Universe 1.9% 2.4% 2.7% 3.7% 4.6% 3.1% 3.1% 2.7% 2.3%

90 Day TBills 0.1% 0.1% 0.2% 1.7% 2.1% 0.2% 0.1% 0.1% 0.1%

BONDS

Bond Index Strategy 4/1/99 Passive -1.9% 2.7% 5.3% 4.5% 5.4% 5.9% 6.4% 7.7% 4.0% 71% Collective Trust Low High Low 0.16% $1.60

Barclays Capital US Aggregate Bond Index -1.7% 2.9% 5.4% 4.6% 5.2% 5.9% 6.5% 7.8% 4.2%

Intermediate Bond Strategy (b) 7/31/12 Active -1.2% n/a n/a -0.4% n/a n/a n/a n/a n/a 174% Separate Account Low High Low 0.42% $4.20

Barclays Capital US Aggregate Bond Index -1.7% n/a n/a -1.3% n/a n/a n/a n/a n/a

STOCKS

S&P 500 Index Strategy 4/1/99 Passive 19.3% 16.1% 9.9% 7.5% -37.0% 26.4% 15.0% 2.0% 15.9% 3% Collective Trust High Low High 0.13% $1.30

S&P500 Index -0.1% 16.3% 10.0% 7.6% -37.0% 26.5% 15.1% 2.1% 16.0%

Large Cap Equity Strategy (b) 6/18/13 Active n/a n/a n/a 7.6% n/a n/a n/a n/a n/a 51% Separate Account High Low High 0.66% $6.60

Russell 1000 Index n/a n/a n/a 4.8% n/a n/a n/a n/a n/a

Non US Equity Index Strategy (b) 7/31/12 Passive 16.7% n/a n/a 19.9% n/a n/a n/a n/a n/a 2% Collective Trust High Low High 0.22% $2.20

MSCI All Country World ex. U.S. Index 16.5% n/a n/a 19.7% n/a n/a n/a n/a n/a

Non US Equity Strategy 4/1/99 Active 16.5% 8.2% 7.8% 10.3% -44.1% 40.5% 13.4% -11.8% 20.2% 44% Separate Account High Low High 0.62% $6.20

MSCI All Country World ex. U.S. Index 0.7% 5.9% 6.3% 8.7% -47.1% 37.4% 8.4% -16.1% 16.8%

Mid Cap Equity Index Strategy (b) 1/3/05 Passive 27.5% 17.2% 12.9% 8.8% -36.2% 37.0% 26.4% -1.9% 17.7% 13% Collective Trust High Low High 0.15% $1.50

S&P MidCap 400 Index 27.7% 17.5% 13.1% 9.0% -36.2% 37.4% 26.6% -1.7% 17.9%

Small Cap Equity Strategy 4/1/99 Active 33.2% 17.3% 13.5% 9.0% -37.3% 41.3% 27.6% -5.1% 10.7% 56% Separate Account High Low High 0.87% $8.70

Russell 2000 Index 30.1% 18.3% 11.2% 9.6% -33.8% 27.2% 26.9% -4.2% 16.3%

OTHERS

Inflation Sensitive Strategy 6/18/13 Passive n/a n/a n/a -2.1% n/a n/a n/a n/a n/a 38% Collective Trust Moderate Low Low 1.02% $10.20

45% Barclays US Treasury Inflation Protected Serurities (TIPS) Index/ 20% Dow Jones-UBS Commodity Index Total Return/15% JPMorgan Emerging Local Markets Plus (ELMI+)/10% Dow Jones US Select REIT Total Return Index/10% Dow Jones-UBS Gold Subindex Total Return

n/a n/a n/a -2.0% n/a n/a n/a n/a n/a

13

Fidelity Resource Corner

Retirement Income PlannerYou probably do not know off the top of your head how much you will need in retirement – that is where Fidelity and the Retirement Income Planner come in.

Step 4: Click on “Begin” and follow the instructions.

Step 3: Choose “Retirement Income Planner.”

Step 2: Select the “Retirement” tab.

Step 1: Once on the Fidelity website, select “Guidance and Retirement” and click on “All Tools and Calculators.”

The Retirement Income Planner is a tool that makes it a little easier for you to develop an investment strategy. It includes tips on how to reach your goals and takes only about 30 minutes to get results. To access this tool, go to www.halliburton.com/totalrewards.com (former employees should go to www.netbenefits.com) and select the link to the Fidelity website.

14

Annual Return – The amount an investment changes in value over a one-year period.

Annualized Return – The amount an investment changes in value over a specified period of time, expressed in annual terms.

Asset-Backed Investment Contracts/Synthetic Guaranteed Investment Contract (GIC) – Instruments designed specifically for use in employer-sponsored qualified retirement plans. The contracts are issued by financial institutions such as banks or insurance companies. Securing the contract is a portfolio of securities or underlying assets. In the case of the Stable Value and Conservative Premixed Portfolios, for example, large portions of the assets backing the contracts are bonds. These bonds provide for a specific rate of return over a specified period. The trustee has custody of all these bonds. Therefore, if the financial institution runs into trouble, there is a diversified portfolio of bonds to mitigate losses.

BarCap US Agg Bond TR USD is the Barclays Capital US Aggregate Bond Total Return USD Index – It is commonly used as a benchmark to measure investment performance relative to the U.S. dollar-denominated investment grade fixed-rate taxable bond market. The index currently includes U.S. Treasuries, government-related issues, corporate bonds, agency mortgage-backed pass-throughs (MBS), consumer asset-backed securities (ABS) and commercial mortgage-backed securities (CMBS).

Bond – A debt security in which an investor loans money to an entity (corporate or governmental) for a defined period of time at a fixed interest rate. Bonds are used by companies, municipalities, states and U.S. and foreign governments to finance a variety of projects and activities. Bonds are commonly referred to as fixed-income securities.

Credit Quality – A rating of a company’s ability to repay its obligations.

Diversification – The process of spreading your savings across more than one type of investment. Diversification helps reduce market risk and protects against the volatility that can result from putting your entire savings in one type of investment.

Equity – A term that means having “ownership” in something. Stocks are considered equity investments because you, as an investor, have a stake in that company.

Expense Ratio – The amount of a fund’s operating expenses compared with its total asset base, expressed as a percentage. Because these expenses are paid from plan assets, a lower expense ratio is desirable.

Hueler Stable Value Pooled Fund Index – A broadly used stable value benchmark. The index represents approximately 75% of the stable value pooled funds available to the marketplace. Stable value pooled funds are only available to investors through employer sponsored retirement plans.

Index – A measurement of the performance of the overall bond or stock market or a particular market segment.

Index Linked Bonds – Domestic or foreign bonds in which payment of income is often related to a government-issued index of the retail prices of basic household goods and services – such as the Consumer Price Index. Investors maintain their purchasing power because income payments from these bonds are adjusted to inflation changes.

Inflation Risk – The likelihood that an investment’s growth will not keep pace with inflation. Inflation is the rate at which prices change. If the inflation rate grows faster than your investment’s rate of return, it can cause your savings – and your purchasing power – to erode substantially. To maintain your purchasing power, you need to earn a rate of return higher than the inflation rate.

Management Fees – Management fees are paid out of the investment fund assets to investment managers who are responsible for the strategy and specific investment buying and selling decisions of their account.

Market Capitalization – The total value of a company’s outstanding shares in the stock market, calculated by multiplying the total number of shares by the price per share.

Market Risk – The likelihood that an investment will go up and down in value, especially over the short term. Funds with higher market risk tend to have more dramatic ups and downs in value than funds with lower market risk. Yet, historically, funds with higher market risk offer the potential for greater returns.

MSCI (Morgan Stanley Capital International) All Country World Index (ACWI) ex. U.S. USD – An index of non-U.S. stock securities listed on the stock exchanges of developed and emerging markets.

Plan Administration Fees – Plan administration fees are paid out of the investment fund assets for recordkeeping and check-writing services.

Principal – The original sum of money invested.

Rate of Return – The amount an investment changes in value over a period of time expressed as a percentage of the amount invested.

Real Assets – Real assets are a separate asset class whose value is derived from the substance and properties of physical or tangible assets. Real assets include precious metals, commodities, real estate, agricultural land and oil. They are well-suited as a component of a diversified portfolio, particularly during inflationary times.

Real Estate Investment Trust (REIT) – A REIT is an entity that invests in real estate either through commercial and multi-unit residential properties or through property mortgages. REITs are traded on major exchanges just like stocks and are highly liquid unlike traditional real estate investments.

Russell 1000 – Russell 1000 is an index of approximately 1,000 of the largest companies in the U.S. equity markets. It comprises over 90% of the total market capitalization of all listed U.S. stocks. The average market cap of a Russell 1000 company is over $80 billion, and all the stocks in the index are considered highly liquid stocks.

Russell 2000 Total Return (TR) Index – Measures performance of the 2,000 smallest companies in the Russell 3000 Index.

Security – An instrument representing ownership (stocks), a debt agreement (bonds) or the rights to ownership (derivatives).

Stable Value – An investment that is meant to protect your principal and provide a consistent rate of return. This does not mean that the investment will never experience a negative rate of return over shorter time periods; however, the fund is managed with the intent of reducing this possibility.

Standard & Poor’s (S&P) 500 Total Return (TR) Index – A popular standard for measuring large company U.S. stock market performance. The index includes a representative sample of 500 leading companies in prominent industries.

Standard & Poor’s (S&P) MidCap 400 Total Return (TR) Index – A popular standard for measuring mid cap U.S. stock market performance. The index includes a representative sample of 400 leading companies in prominent industries.

Stock – An ownership interest in a company. When you buy stock, you become part owner of the company that issued it. The price of the stock depends on what investors are willing to pay for it, based on such things as the company’s profitability, products, business environment and projected future earnings. Stocks typically are volatile over the short term, but they historically offer greater returns over the long term than other types of investments.

Total Return – The return on an investment, including income from dividends and interest, as well as appreciation or depreciation in the price of the security, over a given time period, usually a year.

Turnover Ratio – Measures the funds’ trading activity. The percentage represents the number of times the portfolio’s holdings have changed over the past year.

Terms to Know

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tTalk

Building Your Savings Confidence

Q&A: Saving for Your Future

How to Read Your Fact Sheets

Making the Most of the Halliburton Retirement and Savings Plan

Focus On: Large Cap Equity Strategy

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Fall 2013

PRSRT STDU.S. POSTAGE

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We encourage you to call the Trust Investments Department at (281) 575-3316 with any suggestions or comments regarding Trust Talk. You can expect the next issue in May 2014.

For account information, go to www.halliburton.com/totalrewards if you are an active employee (if you are a former employee, go to www.netbenefits.com) or call the Halliburton Benefits Center automated telephone system at (866) 321-0964.

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The information contained herein has been provided by Halliburton and is solely the responsibility of Halliburton.

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