Transcript 403b Basics - Southwest Plains Regional Service Center

Hutchinson Office:
Telephone: 620-663-5032
Telephone: 866-944-0532
Email: [email protected]
Grant Lane – Ameritime Advisor
[email protected]
Salary Deferral
403(b) Basics
A 403(b) plan is a tax-advantaged retirement plan for
educators.
There are two general types of 403(b) plans – tax sheltered
annuities (TSAs) issued by an insurer, and custodial
accounts, invested exclusively in mutual funds.
3 Sources of Retirement Income
Variable Income Source
403(b)
KPERS
Pension
Direct Income Sources
Social
Security
$28,900
Source: 4 2009 Mustang: Ford Motor Company 1-09
1979 Mustang: Muscularmustangs.com 1-09
Longevity: Prepare for a Long Life
50% chance one spouse will live to this age
Couple
Age 65
92
25% chance one spouse
will live to this age
Annuity 2000 Valuation Mortality Table.
Social
Security:
$1,079
KPERS
Pension:
$1,553
403(b) ?
Age 62
Start: Age 47
$574/mo
Start: Age 37
$209/mo
$200,000
403(b)
Start: Age 27
$87/mo
Assumes 8% return to retirement
403(b)
Traditional Plans
Individual
Custodial
$10,000
$75,000
Annuities
Price/charges
$26,000
Liquidity
$2,400
$150,000
Management
cost
Options
403(b)
ESSDACK PLAN
Pooled Account
No Front or Back Charges
Lower Management Fees
Multiple Fund Managers
Liquidity for KPERS Buybacks
Mutual Funds
Roth 403(b) Advantages
No Tax at Retirement
Income Tax Free to Heirs
No Income Limitations for deferrals
No RMD (required minimum distributions)
Lifestyle Funds
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Fidelity Freedom 2015
Fidelity Freedom 2020
Fidelity Freedom 2025
Fidelity Freedom 2030
Fidelity Freedom 2035
Fidelity Freedom 2040
Asset Allocation
Funds
• Conservative Asset
Allocation
• Balanced Asset
Allocation
• Moderate Growth
Asset Allocation
• Growth Asset
Allocation
Mutual Funds
Fidelity Cash Reserves Money Market
American Bond Fund of America
Pimco Total Return Bond Fund
American Hi Income Trust Fund
American Balanced Fund
American Funds Capital Income Bldr Fund
Dodge & Cox Stock Fund
Columbia Value & Restructuring
Victory Diversified Stock
Fidelity Spartan 500 Index Fund
American Funds Growth Fund of America
Janus Research Fund
Templeton Mutual Qualified Fund
Franklin Rising Dividend Fund
Lazard Mid Cap Fund
Delaware Small Cap Value Inst
Royce Total Return Fund
Vanguard Small Cap Growth Index Fund
Templeton Mutual Discovery Fund
American Funds Euro-Pacific Growth Fund
First Eagle Overseas Fund
Putnam International Cap Opp Fund
T. Rowe Price Real Estate Fund
Vanguard Healthcare Index Fund
Check your account balance
Move investments
Change your Contributions
Be able to access your account by a click
Start today monitoring your 403(b) Account:
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Go to www.yourfutureisdaily.com
Click “New to the System”
Enter your FULL Social Security Number as the User ID
Your Password is going to be the LAST FOUR DIGITS of your Social Security
Number
– Click “Begin”
If you would like to have access to an automated voice system you can call 1-866-311-0303
Sources
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•
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•
•
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http://www.socialsecurity.gov/OACT/index.html
http://www.kpers.org/publications.htm
www.americanfunds.com
1978 Mustang: Mustangforums.com 9-07
9-07Ford Motor Company 11-10-06
www.taxfoundation.org
Annuity 2000 Valuation Mortality Table. (Sun Life Financial)