Transcript Personal Financial Counseling

Retirement Help for Life
Financial Engines – Helping you retire with confidence
Michele Holton - Principal Product Marketer
Jerry Bonnabeau - Senior Director, Sponsor Services
August 19 & 20, 2013
Prepared exclusively for Sargent & Lundy. For overview purposes only. Financial Engines® and Retirement Help for Life® are registered trademarks or service marks of Financial Engines,
Inc. All advisory and investment management services are provided solely by Financial Engines Advisors L.L.C., a federally registered investment advisor and wholly owned subsidiary of
Financial Engines, Inc. Financial Engines ® Income+ is a feature of Professional Management intended to provide income payouts from a 401(k). Patent pending. Financial Engines does
not guarantee results and past performance is no guarantee of future results. Information provided for evaluation and informational purposes only, and does not constitute and should not
be construed as legal or tax advice. Before using these services, visit www.financialengines.com/forKraft for additional information, including the Professional Management program
Terms and Conditions with program fees, additional information about Financial Engines and Financial Engines’ Privacy Policy. Call 1-800 601-5957 to receive printed copies of this
information.
Topics we’ll cover
• About Financial Engines
• Objective, independent advisor
• Offering retirement help through the Sargent & Lundy Savings Investment Plan
• About the current services you can choose among
• Online Advice
• Professional Management
• About the Income+ feature of Professional Management
• Helping you make the transition to retirement with confidence
• How the new feature works
2
About Financial Engines
Cofounded by Bill Sharpe, Nobel Prize– winning
economist
More than 15 years of trusted advice and
professional management
Help available to 8.5 million participants1
Large plan expertise with 142 Fortune 500
companies2
Independent investment advisor
• No commissions
• No investment product sales
1,2 Financial
Engines Data Warehouse as of 03/31/2013
3
Retirement Help for Life®
Personal Retirement Plan
Savings
We can point out
your savings
opportunities.
Investing
We can help you
diversify and manage
risk-appropriate
portfolios.
Retirement Income
We can give you a good idea of what you
could expect.
5
Know where you stand
Everyone gets a comprehensive
Retirement Evaluation*
• It’s a wake up call
• It’s a savings, investing, and retirement
income evaluation
• It’s personalized
• It’s the first step to getting on track
*May exclude "insiders" under applicable regulations and non-U.S. participants.
6
Choice of services
You do the work
Online Advice
Need help? Pick the help
that is right for you.
work
thework
dothe
We
Wedo
Build a
Retirement Plan
Stay on track
Get ready
for retirement
Professional Management
Receive a
Retirement Plan
Stay on track
Get ready
for retirement
7
Online Advice: do-it-yourself investor
Personalized Retirement Plan,
complete with an investment,
savings and retirement income plan
Easy to use forecasting tools to help
prepare for your future
Expert recommendations to help
reach your goals
Progress reports to keep you
informed
Call Center support if you have
questions
8
Professional Management: Hands-off investor
A personalized Retirement Plan,
complete with an investment, savings,
and retirement income plan
Access to an investment advisor
representative
Ongoing management, where we:
• Create a personalized plan for you
• Keep you on track
• Help you transition to retirement
A fee for Professional Management
•
•
•
•
•
Low rate negotiated by your employer
Based on your account balance
Charged quarterly and deducted from your account
There is no minimum balance required
You can cancel anytime with no penalty or fees
9
Income+
Introducing Income+
1
1
Lifetime income guarantee requires out-of-plan annuity purchase. Issuer minimum requirements may apply.
11
Shifting with confidence
• As people near retirement, their investing needs and risk tolerance changes
• Many find themselves retiring unexpectedly1
• Investing objective shifts from asset growth to income readiness
1
EBRI, The Retirement Confidence Survey, March 2012.
12
Provides steady payouts for life
1
1 Lifetime
income guarantee requires out-of-plan annuity purchase. Issuer minimum requirements may apply.
For illustrative purposes only.
13
The retirement income planning experience
Retirement Checkups
Income Plan/Checkups
Monthly quotes/payouts
Annual Checkups
Annuity guidance
Advisor Reps review total
retirement picture to get
participants “retirement ready”
Advisor Reps refine income
plan & discuss retirement
income sources; quarterly
updates provided
Advisor Reps discuss income
needs; participants can easily
get payout quotes or start
payouts
Advisor Reps review payout
changes or raises; discuss
impact of additional
withdrawals
Advisor Reps discuss
annuity options1 to help
participants determine if
lifetime income option is right
for them
50s
60
65
65+
70+
401(k) portfolio managed to…
Achieve growth
objective up to age 60
1
Transition to income
objective at age 60
Provide steady income payouts that:
• Are flexible:
stop, restart, or take lump sum
Financial Engines does not sell or receive commissions on sales of any security or insurance product.
• Can last for life:
with out-of-plan annuity
14
“When can I retire?”
• Includes all sources of
retirement income
• Income at different
retirement ages
• Options for
producing income
• Transition to income
glidepath begins
Advisors discuss
retirement
income plan
15
“What if I start my payouts today?”
• Easy access to payout quotes through an Advisor & website
Advisors discuss
income needs & when
to start payouts
16
We help your money last a lifetime
• When you’re ready, we can work with you to start receiving payouts
• We’ve already discussed how much you’re forecasted to receive
• No surprises, provides reliable income
• Your money stays in your Savings Investment Plan
• Financial Engines orders your payouts, transferred to the bank account you specify
• You have flexibility and control
• At any time, you can skip a payout, stop payouts,
• If you need an additional withdrawals, contact Fidelity
• Then we recalculate your income, so you know what to expect for future payouts
• Later on, you can move your money out of the plan to an annuity
• We help you receive steady payouts until age 85
• For payments after your 80s, an annuity can make sense
• Cost-effective protection against outliving your savings
• We don’t sell annuities, but we can help you with the decision
17
Currently a Professional Management member
• More than 5 years from your planned retirement age?
• No change to your investment strategy
• As always, you can call us to discuss your profile and your strategy
• Within 5 years of your planned retirement age?
• You’ll receive a personalized letter from Financial Engines
• Your investment strategy will change, to balance growth and safety
– Unless you have personalized your risk level maximum. In this case, speak
to an Investment Advisor Representative
• You can elect to continue with your existing strategy by speaking to an
Investment Advisor Representative
• You can schedule a Retirement Checkup with an Investment Advisor
Representative
• When you’re ready, you can start to discuss options for payouts
18
Not currently a Professional Management member
• Continue to save and invest on your own
• Log in to your account and get help from Online Advice
• Click the Financial Engines link from your plan’s Web site
• Not available: Income+ transition advice or spending suggestions
• Choose Professional Management to get your retirement
account on track – and help keep it there
• The Financial Engines team will send your new investment strategy and
begin putting it into action
• Whenever you’re ready to discuss your transition to retirement, we’re here
to help!
19
Summary
• Financial Engines provides retirement help for everyone
• You have a choice of services
• Online Advice
• Professional Management
• Income+ is a feature of Professional Management
• No additional cost
• Prepares account to provide for retirement income
• Generates steady 401(k) payouts that can last for life1
1
Requires purchase of an out-of-plan annuity. Issuer minimum purchase requirements may apply.
20
Contact us
Call an Investment Advisor
Representative
Call Fidelity Investments, at
1-877-401-5762
and ask to be transferred to a Financial
Engines representative.
Visit Financial Engines Online
Log in to your retirement account and
click the Financial Engines links
Business days from 9 a.m. to 9 p.m. ET
21