Transcript St. Norbert College 403(b) Retirement Plans Employee Presentation May 2015 Barry J. Martzahl, CFP®, CIMA® Managing Director Institutional Consulting Director 920-436-5605 800-525-2396 [email protected] Becky A.

St. Norbert College 403(b) Retirement Plans
Employee Presentation
May 2015
Barry J. Martzahl, CFP®, CIMA®
Managing Director
Institutional Consulting Director
920-436-5605
800-525-2396
[email protected]
Becky A. McCormick,
CFP®,
CRPS®
First Vice President – Investments
Corporate Retirement Director
920-436-5612
800-525-2396
[email protected]
The Martzahl Group at Graystone Consulting
111 N. Washington St
Suite 410
Green Bay, WI 54301
(920) 436-5612
Although the statements of fact and data in the report have been obtained from sources that the firm believes to be reliable, we do not guarantee the accuracy, and any such information may
be incomplete or condensed. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance
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NorbertofCollege
Retirement Plans – May 2015
is not aSt.
guarantee
future results.
Graystone Consulting
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Graystone Consulting is a business of Morgan Stanley
•
Graystone Consulting is one of the oldest and largest institutional consulting firms in America
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Graystone Consulting consists of 45 teams across the U.S. lead by one or more Institutional
Consulting Directors with an average of 20-years of experience.
•
Graystone Consulting is committed to:
• Conflict-free, objective investment advice
• Open-architecture money management platform
• Full disclosure and transparency
•
Graystone Consulting is a local resource available to participants to provide asset allocation
guidance and retirement planning
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Graystone Consulting, Green Bay office
Led by Managing Director, Barry J. Martzahl, CFP®, CIMA®, the Graystone Consulting, Green Bay office is a group of experienced
professionals dedicated to meeting the complex needs of institutional clients.
BARRY J. MARTLZAHL, CFP®, CIMA®
Managing Director
Institutional Consulting Director
30 Years of Experience
HANS ANDERSON, CIMA®
Institutional Consulting Analyst
Assistant Vice President
19 Years of Experience
BECKY A. MCCORMICK, CFP®, CRPS®
Corporate Retirement Director
First Vice President – Wealth Management
29 Years of Experience
COREY COONEN, CRPS®
Financial Advisor
7 Years of Experience
THOMAS PEEBLES
Institutional Consulting Analyst
2 Years of Experience
NANCY LOBERGER
Registered Associate
25 Years of Experience
St. Norbert College Retirement Plans – May 2015
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Global Investment Manager Analysis
The Morgan Stanley Global Investment Managers Analysis team uses a disciplined process to research and evaluate investment
managers and strategies.
Researches 1,300 investment strategies
including 200 alternatives
Proprietary Active Adverse Alpha model
screens strategies for adverse market
performance, active share, and tracking error
Over 40 analysts with average of 17 years
experience including 10 years with the firm
Analysts are specialized by asset class including a
dedicated stable value analyst
Perform over 300 on-site visits to investment
manger offices for in-depth qualitative research
Follow on with quarterly questionnaires for
ongoing monitoring of change in key personnel
and legal and compliance issues
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Benefits of the Current St. Norbert College Retirement Plans
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Pre-Tax Contributions
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St. Norbert College Matching Contributions
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Actively & Passively Managed Funds
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Target Date Funds
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Enhancements to the St. Norbert College Retirement Plans
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Ability to Contribute Roth (after-tax) Dollars
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Best in Class Funds from a Variety of Fund Companies
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Personalized, Conflict Free Investment Advice from Graystone Consulting
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Your Contributions
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The St. Norbert College Retirement Plans offer two options saving:
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 Traditional (Contributions are pre-tax)
 Roth (Contributions are after-tax)
An employee may make Traditional or Roth contributions up to the applicable IRS limit.
– Matching Plan – One or the other only (Traditional or Roth)
– Supplemental Plan – One or the other or a combination of the two
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Maximum contribution allowed is $18,000 in 2015
(or $24,000 if you are age 50 or older, with completion of “catch-up” form)
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Additionally, if you have 15 or more years of service with St. Norbert College, you may
make a special 403(b) catch-up contribution.
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Roth 403(b)
Consider a Roth Contribution if you:
Roth Contribution Benefits
Are not eligible to make Roth IRA contributions
because of high income
The Roth option does not have adjusted gross
income (AGI) limits
Would like to make Roth contributions greater than
the Roth IRA limit (2015 limit is $5,500 plus catch-up
contribution $1,000 for age 50+)
Contribution limits are higher than those of the Roth
IRA, allowing you to maximize your after-tax
retirement savings
Feel confident your retirement income needs are
met and want to leave a potential tax-free legacy
Assets may be passed along to your beneficiaries
income tax free
Would like to help protect your retirement assets
from potential tax consequences
Having both pretax and after-tax assets in your
retirement accounts allows you to hedge against the
uncertainty of future tax rates
Are just starting out and in a lower tax bracket
By making after-tax contributions that are based on
a lower income, you pay less taxes now. Also, the
earlier you start, the more time you give your money
to work for you.
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St. Norbert College Matching Plan
If you Save
SNC Contributes
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2%
5%
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3%
6%
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4%
7%
•
5%
9%
• Matching contributions are 100% vested immediately
• Any employee contributions greater than 5% are invested in the St. Norbert College
Supplemental Plan
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Two Paths to Determine Your Asset Allocation
Path 1: Delegate
• If you don’t have the time to choose specific Funds or monitor your
403(b) account, then the professionally managed American Funds
Retirement Target Date Funds may be right for you.
Path 2: Customize
• If you are comfortable choosing your own investments, monitoring
their performance and rebalancing your portfolio, then
customization may be right for you.
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Path 1: Delegate
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Designed for employees that prefer to have their account managed for them
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As illustrated below, each American Funds Target Date Fund’s investment mix is
gradually shifted from a greater concentration of equity investments to a higher
percentage of bond investments which reduces the risk of your account as your
target retirement date approaches
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American Funds Target Date Funds’ Asset Allocation
U.S. Equities
International Equities
U.S. Bonds
International Bonds
U.S Inflation-Linked Bonds
Cash
Illustrative Asset Allocations
2010
Fund
2025
Fund
2040
Fund
2055
Fund
U.S. Equities
34.8%
54.6%
62.7%
63.3%
International
Equities
12.5%
19.5%
22.9%
22.7%
U.S. Bonds
35.2%
14.7%
6.4%
6.2%
International
Bonds
5.9%
2.2%
0.7%
0.6%
U.S. Inflationlinked Bonds
7.7%
3.2%
0.8%
0.7%
Cash
3.9%
5.8%
6.5%
6.5%
Targets as of June 30, 2014; Source: American Funds
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Path 1: Delegate
Investment Fund Target Date Fund Lineup Effective July 1, 2015
Targets as of June 30, 2014; Source: American Funds
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Path 2: Customize
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Designed for employees who are comfortable choosing their own investments
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Choice of 15 investment funds to set custom asset allocation
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Actively managed and passively (index) managed investment funds
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Based on your personal risk tolerance and time horizon
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You choose when and which investment funds to rebalance
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Path 2: Customize
Step 1: Set your financial goals
Step 2: Learn about the types of investments
Step 3: Choose your investments
Step 4: Make changes as needed
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Path 2: Customize
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St. Norbert College Retirement Plans – May 2015
Investment Fund Lineup Effective July 1, 2015
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Summary of Investment Fund Changes
Current Investment Option
Replacement Investment Option
CREF Money Ma rket
u
TIAA-CREF Money Ma rket Retirement
TIAA Tra di tiona l Retirement Annui ty
u
TIAA Tra di tiona l Retirement Annui ty
TIAA-CREF Short-Term Bond Premi er
u
TIAA-CREF Short-Term Bond Retirement
CREF Bond Ma rket
u
JPMorga n Core Bond Sel ect
TIAA-CREF Bond Index Premi er
u
TIAA-CREF Bond Index Retirement
CREF Infl a tion Li nked
u
Bl a ckRock Infl a tion Protected Bond
Va ngua rd Wel l i ngton
u
Age Ba s ed Ameri ca n Funds Ta rget Da te Fund
CREF Soci a l Choi ce
u
TIAA-CREF Soci a l Choi ce Equi ty Retirement
u
MFS Va l ue
u
TIAA-CREF S&P 500 Index Retirement
u
Ameri ca n Funds AMCAP R4
u
Col umbi a Mi d Ca p Index A
u
Royce Speci a l Equi ty Svc
u
Ameri ca n Funds EuroPa ci fi c Growth R4
u
Oppenhei mer Devel opi ng Ma rkets A
TIAA Rea l Es tate
u
TIAA-CREF Rea l Es tate Securi ties Retirement
TIAA-CREF Li fecycl e Premi er Ta rget Da te Funds
u
Ameri ca n Funds Ta rget Da te Funds
T. Rowe Pri ce Equi ty Income
TIAA-CREF La rge Ca p Va l ue Premi er
CREF Stock
CREF Equi ty Index
Ameri ca n Funds AMCAP R5
CREF Growth
(Special Considerations
prior to transfer)
TIAA-CREF Mi d Ca p Va l ue Premi er
Col umbi a Mi d Ca p Index Z
TIAA-CREF Mi d Ca p Growth Premi er
Royce Speci a l Equi ty Ins titutiona l
TIAA-CREF Sma l l Ca p Bl end Index Retirement
CREF Gl oba l Equi ties
TIAA-CREF Interna tiona l Equi ty Index Premi er
Ameri ca n Funds EuroPa ci fi c Growth R5
Ameri ca n Funds New Worl d R4
TIAA-CREF Emergi ng Ma rkets Index Premi er
Key:
Mutual Funds will automatically map to the new inves tment menu.
Annuitites will not automatically map to the new inves tment menu.
Participants will need to complete a new contract to trans fer thes e as s ets .
Special cons iderations mus t be evaluated before trans ferring thes e as s ets .
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Summary of Asset Transfers to New Investment Menu
Mutual Fund assets will be automatically mapped to new investment menu
TIAA-CREF Short-Term Bond Premi er
TIAA-CREF Bond Index Premi er
Va ngua rd Wel l i ngton
T. Rowe Pri ce Equi ty Income
TIAA-CREF La rge Ca p Va l ue Premi er
Ameri ca n Funds AMCAP R5
TIAA-CREF Mi d Ca p Va l ue Premi er
Col umbi a Mi d Ca p Index Z
TIAA-CREF Mi d Ca p Growth Premi er
Royce Speci a l Equi ty Ins titutiona l
TIAA-CREF Sma l l Ca p Bl end Index Retirement
TIAA-CREF Interna tiona l Equi ty Index Premi er
Ameri ca n Funds EuroPa ci fi c Growth R5
Ameri ca n Funds New Worl d R4
TIAA-CREF Emergi ng Ma rkets Index Premi er
TIAA-CREF Li fecycl e Premi er Ta rget Da te Funds
Annuity assets will need to be manually mapped (Must complete a new contract) to new investment menu
CREF Money Ma rket
CREF Bond Ma rket
CREF Infl a tion Li nked
CREF Soci a l Choi ce
CREF Stock
CREF Equi ty Index
CREF Growth
CREF Gl oba l Equi ties
TIAA Rea l Es tate
Annuity asset must receive special considerations before moving to new investment menu
TIAA Tra di tiona l Retirement Annui ty
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Plan Costs Overview
There are certain costs involved in operating
the 403(b) plan including:
o
Plan Recordkeeping (TIAA-CREF)
o
Investment Consulting & Participant Advisory
Services (Graystone Consulting)
o
Investment Management (Various Funds)
PLAN RECORDKEEPING
Provider: TIAA-CREF
Estimated Annual Fee: 0.15% (may change over time)
Services Provided:
• Plan Website (www.tiaa-cref.org/snc)
• Call Center
• Quarterly Statements
• Additional Administrative Functions
INVESTMENT CONSULTING & PARTICIPANT ADVISORY SERVICES
Provider: Graystone Consulting
Estimated Annual Fee: 0.06% (may change over time)
Services Provided:
• Investment Fund Monitoring
• Benchmark Plan Fees & Costs
• On-Site Group Employee Meetings
• One-on-One Employee Meetings (in-person or on phone)
INVESTMENT MANAGEMENT
Provider: Various:
Estimated Annual Fee: Various by Investment Option (Average 0.72%)
Investment management costs are deducted from investment
performance; you will not see a deduction from your account balance.
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Plan Costs Overview
How will plan costs be paid?
o
The investment funds operating expense will generate revenue that will be utilized to offset plan
recordkeeping and investment consulting/participant advisory costs.
o
If the options that you are invested in generate more revenue than is required, you will see a credit on your
statement approximately 60 days following the end of a quarter on a pro-rata basis. See example below.
Example:
TIAA-CREF S&P 500 Index
Operating Expense
Revenue Credit
Net Expense of Fund
Required Revenue to Offset Plan Costs
0.31%
(0.25%)
0.06%
(0.21%)
Revenue Credit
0.25%
Credit back to plan participants
0.04%
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Graystone Consulting, Green Bay office
Our Address:
111 N. Washington St.
Green Bay, WI 54301
Your Contacts:
Professionals
Becky McCormick
Corey Coonen
Email Address
Phone Number
[email protected] (920) 436-5612
[email protected]
(920) 433-6513
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Disclosures
Although the statements of fact and data in this report have been obtained from, and are based upon, sources the Firm believes
reliable, we do not guarantee their accuracy, and any such information may be incomplete or condensed. All opinions included in
this report constitute the Firm’s judgment as of the date of this report and are subject to change without notice. This report is for
informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.
Past performance is not a guarantee of future results.
To the extent the investments depicted herein represent international securities, you should be aware that there may be
additional risks associated with international investing involving foreign economic, political, monetary and/or legal factors,
changing currency exchange rates, foreign taxes and differences in financial and accounting standards. These risks may be
magnified in emerging markets. International investing may not be for everyone. Small capitalization companies may lack the
financial resources, product diversification and comparative strengths of larger companies. In addition, the securities of smallcapitalization companies may not trade as readily as, and may be subject to higher volatility than, larger, more established
companies. High yield bonds are subject to additional risks such as increased risk of default and greater volatility because of the
lower credit quality of the issues.
Indexes are not available for direct investment. Index returns consist of income and capital appreciation (or depreciation) and do
not take into account fees, taxes or other charges. Such fees and charges would reduce performance.
© 2015 Morgan Stanley Wealth Management. Member SIPC. Graystone Consulting is a businesses of Morgan Stanley.
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