Transcript Part 1: Getting on the Right Path_English Web Workshop

Workplace Education Series
Getting on the Right Path with
Your Workplace Savings Plan
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Getting on the right path with your
workplace savings plan
Workplace Education Series
So, you’re starting
to think about saving
for retirement
Today’s agenda:
– Steps to prioritizing your savings
– Benefits of saving at work
– Choosing your investments
– Determining your next steps
– Staying in touch with Fidelity
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Make the right
moves with
your money
3
Make the right moves with your money
Workplace Education Series
It starts with
a disciplined
financial approach
Steps you can take to help you
get the most out of your paycheck
– Spend less than you earn
– Take advantage of employer
contributions
– Pay off high-interest-rate
credit card debt
– Establish an emergency fund
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Make the right moves with your money
Workplace Education Series
Finding the extra
money to invest
Common sense budgeting principles:
– List your expenses
– Categorize your expenses
– Budget for your expenses
– Find opportunities for savings
– Ponder luxury items
 Some Tools to Help: Use our Retirement Income Planner to
conduct an income and expense analysis. Or use the Budgeting
Worksheet in your Resource Guide.
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Make the right moves with your money
Workplace Education Series
Your workplace
savings plan is
hard to beat
– Ease and convenience
– Investment choice
– Potentially lowers taxable income
– Tax-deferred growth
 Some Tools to Help: Use our Contribution
Calculator to try some “what-if” planning—
and the Take-Home Pay Calculator to see
what a bargain it can be to save in your plan.
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Make the right moves with your money
Workplace Education Series
Start with what you can afford
The net effect on take-home pay
$108
6% contribution
8% contribution
10% contribution
$87
$72
$65
$58
$44
$43
$35
$26
$30,000 salary
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$50,000 salary
$75,000 salary
This hypothetical example assumes a $30,000, $50,000, and $75,000 annual salary; filing single at a 25% federal
income tax rate on the take-home-pay chart; state and local taxes are not included. The weekly contribution to your
account is a tax-deferred contribution; income taxes will be due when you withdraw from the account.
Make the right moves with your money
Workplace Education Series
Reducing “bad debt” helps free
up cash
Pay down your credit card balance
The facts
– Starting credit card
balance of $5,150
$924 in interest payments
$250/
Month
– 14.99% interest rate
– Two payoff scenarios –
$150 and $250 a month
Potential savings: $1,038
$1,962 in interest payments
Paying $100
more a month
saves over
$1,000 in interest
$150/
Month
Year
1
2
3
4
5
For illustrative purposes only.
 A Tool to Help: You’re entitled to one free credit report a year from
each of the three nationwide consumer credit reporting agencies.
You can request them at AnnualCreditReport.com.
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Make the right moves with your money
Workplace Education Series
A safety net for your
financial plans
Everyone needs an emergency
savings fund:
– At least three to six months’
worth of living expenses
– Safe and easily accessible
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Maximize your
retirement
savings
opportunities
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Maximize your retirement savings opportunities
Workplace Education Series
Where the retirement money
is really coming from
Sources of Retirement Income
19992
19741
14%
42%
22%
22%
Federal Income (e.g., Social Security)
20301
(estimated)
5%
19%
18%
19%
36%
18%
2%
44%
40%
Private Pension Plans (e.g., Defined Benefit Plans)
Income from Personal Assets (e.g., IRAs, 401(k) Plans)
Wages in Retirement
Other
1Source:
Research on Potential New Products for Retirement Income, FCNBD, May 2006; National Association for Variable
Annuities (NAVA), "2005 Retirement Fears," March 28, 2005. Survey of 1,001 nationally representative Americans age 18+,
conducted by Kelton Research, January 2005.
2Source:
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Social Security Administration, Income of the Aged Chartbook, 2008. SSA Publication No. 13-11727
Released: April 2010. Shares of aggregate income using the highest quintile, $55,889 per year and higher.
Actual data was rounded to whole numbers. Total may not equal 100%.
Maximize your retirement savings opportunities
Workplace Education Series
Hit the target
100%
90%
70%
Target:
70%
60%
50%
40%
30%
20%
10%
0%
12
of your
pre-retirement
income per year
Maximize your retirement savings opportunities
Workplace Education Series
Invest now, thank yourself later
The power of compounding—growth of investment over 25 years
6% contribution
8% contribution
10% contribution
$702,790
$573,087
$486,618
$400,149
$209,918
$261,799
$313,681
$30,000 salary
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$443,384
$313,681
$50,000 salary
$75,000 salary
This hypothetical example assumes a $30,000, $50,000, and 75,000 current annual salary, a beginning balance
of $10,000, a 3% annual salary increase, and a 7% annual rate of return compounded weekly. Your own plan
account may earn more or less than this example and income taxes will be due when you withdraw from your
account. Investing in this manner does not ensure a profit or guarantee against a loss in declining markets.
Maximize your retirement savings opportunities
Workplace Education Series
Saving 10% – 15%
of your pay is a
good benchmark
Once you’re at that level,
then you can think about
other tax-advantaged savings
vehicles outside of your
workplace savings plan.
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Reviewing
your plan
details
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Workplace Education Series
Eligibility
– If you are in an eligible category you may participate in the plan upon
hire.
– Employees paid monthly may enroll in the Faculty and Staff
Retirement Plan and must contribute at least $25 per pay period but no
more than 80% of your salary per pay period.
– Employees paid biweekly may enroll in the Savings for Retirement
Plan and must contribute at least $12.50 per pay period but no more
than 80% of your salary per pay period.
Workplace Education Series
Enrollment
– Employees in an eligible category can enroll in the plan upon hire.
Duke's 403(b) retirement plans enable you to contribute to your
retirement on a tax-deferred basis. Before you decide to enroll in the
plan, you need to decide how much to contribute, the retirement
investment carrier, and which funds you would like to invest in.
Workplace Education Series
Employer Contributions
Employees paid biweekly have a defined benefit plan, the Employees’
Retirement Plan (ERP), which is fully funded by Duke University. The benefit
is equal to:
x
+
x
1.25% of your average final compensation
Your years of credited service up to 20
1.66% of your average final compensation
Your years of credited service over 20.
Eligible employees paid monthly receive a contribution from Duke towards
their retirement plan. Duke’s contribution is determined each year. For 2012
the university contribution is:
8.9% of the first $55,000 of salary and
13.2% of annual salary in excess of $55,000,
up to a statutory salary limit of $250,000
* Employer contributions are subject to your plan provisions.
Workplace Education Series
Vesting
Biweekly paid employees are vested in the Employees’ Retirement Plan (ERP)
after completing 5 years of credited service where you work at least 1,000
hours each fiscal year.
Monthly paid employees hired before January 1, 2012 are 100% vested in
Duke’s contribution. Employees hired January 1, 2012 or thereafter will
become 100% vested in Duke’s contribution upon:
–Completion of three (3) Years of Service,
–Attainment of age 65 while employed by Duke,
–Hired after age 65,
–Death while employed by Duke, or
–Approval for long term disability under the Duke Long Term Disability Plan.
Workplace Education Series
Loans and Withdrawals
Loans are currently available from TIAA-CREF and VALIC. You may only take
a loan from your voluntary contributions within your 403(b) account.
Withdrawals and distributions (taxes and penalties may apply) from your
voluntary employee contributions may commence upon the occurrence of any
one of the following events:
–Disability
–Retirement or termination of employment with Duke
–Attainment of age 59 ½
–Death
–A financial hardship as defined in the IRS Code (subject to a six month suspension of employee
contributions)
–NOTE: Employees paid monthly may withdraw their Duke Contribution at age 67.
Be sure you understand the plan guidelines and impact of taking a loan before initiating a loan from your plan
.
Be sure you understand the tax consequences and your plan’s rules for distributions before you initiate a distribution. You may want to consult
your tax advisor about your situation. The taxable portion of your withdrawal that is eligible for rollover into an individual retirement account
(IRA) or another employer’s retirement plan is subject to 20% mandatory federal income tax withholding, unless it is rolled directly over to an
IRA or another employer plan. (You may owe more or less when you file your income taxes.) If you are under age 59½, the taxable portion of
your withdrawal is also subject to a 10% early withdrawal penalty, unless you qualify for an exception to this rule.
The plan document and current tax laws and regulations will govern in case of a discrepancy.
The
fundamentals
of investing
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The fundamentals of investing
Workplace Education Series
Investment types
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Short-term investments
Bonds
– Money market, T-bills, CDs
– Relatively stable value
– Potential to pay interest
– Lower risk, lower potential
return
– I.O.U.
– Debt securities issued by
governments and
corporations
– Potential to pay interest
– Moderate risk, moderate
potential return
Stocks
– Share of a company,
“equity”
– Long-term growth potential
– Value can go up and down
– Higher risk, higher
potential return
The fundamentals of investing
Workplace Education Series
Determining your
investment mix
It’s about solving for these
three factors:
– Time
– Risk
– Financial situation
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The fundamentals of investing
Workplace Education Series
Asset allocation +
diversification =
your investment mix
– Reduce portfolio risk and volatility
– Match your investment strategy to
your time horizon, financial situation,
and risk tolerance
– Tap into market opportunities
– Avoid the pitfalls of market timing
 A Tool to Help: For much more on this topic,
register for our Building a Portfolio for Any
Weather workshop.
Neither diversification nor asset allocation ensures a profit or
guarantees against loss.
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The fundamentals of investing
Workplace Education Series
Your target asset mix
Growth
Aggressive Growth
May be
appropriate for
investors:
15%
25%
• Comfortable with
wide fluctuation
60%
May be
appropriate for
investors:
• Comfortable with
significant fluctuation
• > 10 years until
retirement goal
• > 5 years until
retirement goal
Balanced
Conservative
May be appropriate
for investors:
May be appropriate
for investors:
40%
35%
• Comfortable with
moderate fluctuation
• < 5 years until
retirement goal
• Looking to minimize
fluctuation
10% 15%
Domestic Stock
Foreign Stock
25%
25%
49%
5%
60%
10%
21%
14%
6%
50%
30%
• < 5 years until
retirement goal
Short-term Investments
Bond
For illustrative purposes only.
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The purpose of the target asset mixes is to show how target asset mixes may be created with different risk and return characteristics to help meet
a participant’s goals. You should choose your own investments based on your particular objectives and situation. Remember, you may change
how your account is invested. Be sure to review your decisions periodically to make sure they are still consistent with your goals. You should also
consider any investments you may have outside the plan when making your investment choices.
The target asset mixes presented in this publication were developed by Strategic Advisers, Inc., a registered investment adviser
and Fidelity Investments company, based on the needs of a typical retirement plan participant. Strategic Advisoers, Inc.,
is adjusting its target asset mixes as of November 2009 to increase the percentage of international equity to 30% of
the overall equity portion of each target asset mix.
Reviewing
your plan’s
investment
options
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Reviewing your plan’s investment options
Workplace Education Series
Hands-off
Choosing your investments:
hands-on or hands-off?
– Do you want to make your own investment decisions?
– Are you comfortable building your own portfolio?
– Do you have the time to actively manage your investments?
Hands-off
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Hands-on
Lifecycle funds*
Let us guide you
Do-it-yourself
Provide an automatic
investment mix that becomes
continually more conservative
as time goes on. Just pick the
fund with the year that’s closest
to the year you plan to retire.
Use our investment guidance
tool, Portfolio Review**, to identify
a target investment
mix, receive a model portfolio
suggestion, and easily
implement your strategy.
Access Fidelity’s research
resources, and utilize our
fund selection tools to build
your own portfolio.
*Lifecycle funds are designed for investors expecting to retire around the year indicated in each fund’s name. The investment risk of each
lifecycle fund changes over time as its asset allocation changes. Lifecycle funds are subject to the volatility of the financial markets, including
equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, and
foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates.
**Portfolio Review is an educational tool.
Guidance provided by Fidelity is educational in nature, is not individualized, and is not intended to serve as the primary or
sole basis for your investment or tax-planning decisions.
Neither diversification nor asset allocation ensures a profit or guarantees against loss.
Fidelity Freedom K® Funds
Workplace Education Series
A Family of Funds
Fidelity Freedom K®
Income Fund
Fidelity Freedom K®
2000 Fund
12%
15%
5%
15%
5%
27%
28%
36%
40%
40%
40%
Fidelity Freedom K®
2015 Fund
35%
40%
Fidelity Freedom K®
2020 Fund
40%
10%
13%
Fidelity Freedom K®
2025 Fund
Fidelity Freedom K®
2030 Fund
37%
13%
42%
50%
Fidelity Freedom K®
2040 Fund
17%
52%
Fidelity Freedom K®
2045 Fund
Fidelity Freedom K®
2050 Fund
Domestic Equity Funds
23%
60%
62%
International Equity Funds
Fidelity Freedom K®
2055 Fund
10%
13%
15%
61%
22%
19%
19%
18%
15%
18%
28%
29%
31%
37%
40%
Fidelity Freedom K®
2035 Fund
Less than 1%
6%
10%
22%
Fidelity Freedom K®
2010 Fund
Fidelity Freedom K®
2005 Fund
24%
23%
64%
Bond Funds
66%
Short-Term Funds
The percentages represent anticipated target asset allocation as of March 31, 2012. Target asset allocations may appear equal due to rounding. Allocation percentages
may not add up to 100% due to rounding and/or cash balances.
Fidelity Freedom K® Funds are designed for investors expecting to retire around the year indicated in each fund's name. Except for the Fidelity Freedom K® Income
Fund, the funds' asset allocation strategy becomes increasingly conservative as it approaches the target date and beyond. Ultimately, they are expected to merge with
the Fidelity Freedom K® Income Fund. The investment risk of each Fidelity Freedom K ® Fund changes over time as its asset allocation changes. They are subject to the
volatility of the financial markets, including equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in highyield, small-cap, commodity-linked, and foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates.
Strategic Advisers, Inc., a subsidiary of FMR LLC, manages the Fidelity Freedom K ® Funds.
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527860.7.0
Workplace Education Series
Investment Spectrum
Investment options to right have potentially less
inflation risk and more investment risk
Investment options to left have potentially more
inflation risk and less investment risk
Money Market
(or Short Term
if not a reg. MM)
Fidelity® Money
Market Trust
Retirement
Money Market
Portfolio
PIMCO Total
Return Fund
Institutional Class
International/
Global Equity
Domestic Equities
Bond
Large Value
MFS Value Fund
Class R4
Large Blend
Spartan® Total
Market Index Fund Institutional Class
Large Growth
Fidelity®
Contrafund® - Class
K
Mid Value
Ridge Worth Mid-Cap
Value Equity Fund
Class I
Mid Blend
Spartan® Extended
Market Index Fund Fidelity Advantage
Class
Mid Growth
Prudential Jennison
Mid Cap Growth
Fund Class Z
Small Value
Heartland Value Plus
Fund Class
Institutional
Specialty
Company
Stock
Diversified
Harbor
International
Fund
Institutional
Class
Emerging
Markets
Oppenheimer
Developing
Markets Fund
Class Y
An investment in a money market fund is not insured or guaranteed by the FDIC or any other
government agency. Although money market funds seek to preserve the value of your investment at $1
per share, it is possible to lose money by investing in these funds. >
29
This spectrum, with the exception of the Domestic Equity category, is based on Fidelity’s analysis of the characteristics of the general investment
categories and not on the actual investment options and their holdings, which can change frequently. Investment options in the Domestic Equity
category are based on the options’ Morningstar categories as of 4/5/2012. Morningstar categories are based on a fund’s style as measured by its
underlying portfolio holdings over the past three years and may change at any time. These style categorizations do not represent the investment
options’ objectives and do not predict the investment options’ future styles. Investment options are listed in alphabetical order within each
investment category. Risk associated with the investment options can vary significantly within each particular investment category, and the
relative risk of categories may change under certain economic conditions. For a more
complete discussion of risk associated with the mutual fund options, please read the prospectuses before making
your investment decision. The spectrum does not represent actual or implied performance.
Steps to
take today
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Steps to take today
Workplace Education Series
Make saving a priority
– Enroll in your plan
– Set your savings contribution rate
– Choose your investments
– Pay down high-interest credit card debt
– Create a budget — and find ways
to save more
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Steps to take today
Workplace Education Series
Simplify your accounts
– Keep all of your assets in one place
– Fewer statements
– Track overall performance
– Maintain investment strategy of choice
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Keep in mind that fees may apply when closing
and consolidating accounts.
Stay on track
Workplace Education Series
We’re here to help

Visit NetBenefits®
www.mysavingsatwork.com/duke


Call 1-800-343-0860 to speak with a
representative familiar with the features of
your Plan.
Schedule a complimentary
one-on-one guidance consultation
Call 800.642.7131
Click getguidance.fidelity.com
Although consultations are one on one, guidance provided by Fidelity is
educational in nature, is not individualized, and is not intended to serve
as the primary or sole basis for your investment or tax-planning decisions.
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Where can you find Fidelity?
“Fan” us at
Facebook.com/fidelityinvestments
For illustrative purposes only.
Follow us at
Twitter.com/fidelity
For illustrative purposes only.
Important Information
Workplace Education Series
Before investing in any mutual fund, please carefully consider the investment
objectives, risks, charges, and expenses. For this and other information,
contact Fidelity for a free prospectus or, if available, a summary prospectus.
Read it carefully before you invest.
Keep in mind that investing involves risk. The value of your investment will fluctuate
over time, and you may gain or lose money.
Foreign investments, especially those in emerging markets, involve greater risk and may offer greater potential
returns than U.S. investments. This risk includes political and economic uncertainties of foreign countries, as well
as the risk of currency fluctuation.
Investments in mid-sized companies may involve greater risks than those in larger, more well known companies,
but may be less volatile than investments in smaller companies.
Investments in smaller companies may involve greater risks than those in larger, more well known companies.
Lower-quality debt securities involve greater risk of default or price changes due to potential changes in the
credit quality of the issuer.
Because of their narrow focus, sector funds may be more volatile than funds that diversify across many sectors.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise,
bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed
income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike
individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by
holding them until maturity is not possible.
Company stock is neither a mutual fund nor a diversified or managed investment option.
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© 2011 FMR LLC. All rights reserved.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
514947.30.0