Financial Wellness: Your Goals, Your Savings

Financial Wellness:

Your Goals, Your Savings

Introduction of TCG

• Fee-Only Investment Advisory Firm

• Privately held

• Fiduciary Commitment to Clients

• Administration & Benefits Provider

We deliver long-term investment and benefit solutions that provide peace of mind.

~TCG Mission Statement

THE RETIREMENT INCOME GAP

Educators Have a Very Different Retirement Picture

TRS Vesting

Vesting Schedule

Yrs of Service Age

5 65

20 60

30 50

TRS Members after 9/1/2007 — Minimum age 60 to retire and receive

unreduced benefits

UPDATE: Current Members as of 8/31/2014 — If you are not Vested

(5 years) — Minimum age 62 to retire and receive unreduced benefits

TRS Retirement Formula

Years of Service (x) State Factor 2.3% (x) Average 3/5 Highest Years of Income

Years of Service: 30

State Multiplier (2.3%): 69 %

Average Income: $60,000

Maximum Benefit: $41,400

Retirement Age: 60 Service: 30 Years Last Year / High 3 Yr. Salary: $60,000

(Full TRS benefit with 2.3 Multiplier with no survivor benefit)

$60,000

$41,400

31

Retire at

Age 60

Gross Income

TRS Retirement Formula

Start Working

The Income Gap

Investment Needed to Replace Difference of

$18,600 Annually(TRS Benefit vs. Pre-Retirement Income):

$300,224*

*Assumptions include a lump sum invested at 5% interest, with annual amount paid atbeginning of each year for 30 years. This rate is assumed for illustration purposes only and isnot guaranteed.

Taking Aim at the Target

Assumes a 6% annual return after fees and expenses

For illustration purposes only, Not guaranteed.

$0.00

$200.00

$400.00

$600.00

$800.00

$1,000.00

$1,200.00

$1,400.00

$1,600.00

$1,800.00

$2,000.00

Age 20-60 Age 30-60 Age 40-60 Age 50-60

Years of Savings

Monthly Contribution

40 $150.01

30 $297.39

20 $646.55

10 $1,822.87

Tools for Saving

• Tax Deferred Savings Plan

• 403(b), 457(b) – Immediate savings on your current income tax

– Easy way to accumulate wealth — requires less discipline (comes out of your paycheck)

– Tax deferred growth and earnings• Earnings on earnings

• Earnings on the money normally paid in taxes

• IRA & Roth

Remember that all investing involves risk.

Comparison: 403(b) & 457(b) Plans

Feature 403(b) 457(b)

Individual vs. Group Plan Most have higher fees, pay

commission/sales loads. Limited number of no commission options

Low fees relative to most 403(b) plans; no commissions, full disclosure of fees

Penalty to withdraw fund (+ income tax)

10% (goes away at age 59½ or age 55

and retired)

None

Investment Options Fixed/Variable Interest Annuities or Mutual Funds/Custodial Accounts

Fixed Annuity or

Self-Directed Mutual Funds

Access to Funds Termination of Employment, Death,

Disability, Retirement, Age 59½ (even if still employed), Hardship

or Loans

Termination of Employment, Death, Disability,

Retirement, Unforeseeable Emergency (no

access at age 59½ )

or Loans

Investment Committee/Advisor Oversight

No Limited

Contribution Limits (can contribute to both plans)

2014: $17,500; $23,000 age 50+

2015: $18,000; $24,000 age 50+

2014: $17,500; $23,000 age 50+

2015: $18,000; $24,000 age 50+

What is ROTH?

• ROTH is a distinctive retirement program and refers to the tax treatment of employee’s contributions, growth, and distributions

– Common perception is that it’s an IRA only

• Can be used for 403(b), 457(b), 401(k)

– Not eligible in all plans, must check employer availability

Market Movements — Good or Bad?

Price/Share

8

9

10

11

12

13

14

15

16

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Price/Share

Investing $200/mo

Month $/Share # Shares

Jan 10 20.0

Feb 10.5 19.05

Mar 11 18.18

Apr 11.5 17.39

May 12 16.67

Jun 12.5 16.0

Jul 13 15.38

Aug 13.5 14.81

Sep 14 14.29

Oct 14.5 13.79

Nov 15 13.33

Total Shares Owned 178.90 Total Account Value $2,683.48


Market Movements — Good or Bad?

Price/Share

3

4

5

6

7

8

9

10

11

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Price/Share

Investing $200/mo

Month $/Share # Shares

Jan 10 20.00

Feb 9 22.22

Mar 8 25.00

Apr 7 28.57

May 6 33.33

Jun 5 40.00

Jul 6 33.33

Aug 7 28.57

Sep 8 25.00

Oct 9 22.22

Nov 10 20.00

Total Shares Owned 298.25 Total Account Value $2,982.54

11.14% Increase in Account Value


WATCH OUT FOR YOUR BEST INTEREST!

Abuses in Educator Retirement Investments

• Excessive Hidden

Fees

• Inappropriate Types

of Investments

• Lack of Monitoring

of Investments

Possible Schemes

• Life Insurance as an Investment

• Pension Maximization– Taking the Standard Annuity and buying life

insurance with the “savings”

– Insurance company may raise rates

– Death benefit needed is usually much higher

• Annuity Riders

• Take Lump Sum, Invest, and Beat the State Retirement System


Partial Lump Sum

• Possible Reasons to Do– Poor Health– Estate and Critical Need for

Heirs (e.g., disabled child)– Other Estate Needs —

Guarantees money to heirs instead of reversion to retirement system at death

– No Savings Going into Retirement

• Reasons Not to Do– You will not be able to invest

the money and beat the Retirement System• Pay Actuarial Cost for funds;

Usually have to earn minimum Net 11.00% if try to match State — Can you do this with no risk??

– You have not planned for inflation and budget in retirement so your income runs short later

– You will be tempted (and give in) to spend the money you planned to save


Shadow Marketing

• SEC Snoozed as “Shadow Marketers” Skimmed Billions From Retirement Plans

– Forbes Magazine, Feb. 3rd, 2011, Author: Edward Siedle

• Nationwide Financial Services and National Association of Counties– Nationwide disclosed on website it was paying NACo $7.3M in 2007 to

push products– Exec Dir said relationship went back to early 1980s

• ING and NYSUT (teachers union)– Marketing to 50,000 teachers making payments up to $3M to union

• Nationwide Retirement Solutions (NRS) and Alabama state employees association– 2010 NRS entered into settlement of $16M– Paid association $11.8M in fees and commissions, including trips

The Fee Effect

$0.00

$10,000.00

$20,000.00

$30,000.00

$40,000.00

$50,000.00

$60,000.00

$70,000.00

$80,000.00

$90,000.00

1 2 3 4 5 6

Annual Fee Balance

1% $82,549.26

2% $73,599.44

3% $65,824.55

4% $59,057.63

5% $53,156.51

6% $48,000.00

Balance based on 6% earning net of fees with $200 monthly contributions

for 20 years at the beginning of the month. Actual rate of return is not

guaranteed, for illustrations purposes only.


Excessive Fees

• 12b-1 Fee– Generally allows distributors to compensate broker/dealers and

representatives for selling their funds. It also can be a charge to cover marketing and distribution costs of the investment.

• Withdrawal Charge (a.k.a. Surrender Charge)– A fee charged by some annuities and funds when an investor

takes money out of his or her account.

• Mortality and Expense Fee (M&E)– This applies to some types of annuities and covers insurance

related costs.

• Transfer Fee– This is an amount charged by a fund to transfer either within the

fund family or to another company.

Excessive Fees

• Expense Deductions– Charges for investment management, administration and

distribution services.

• Management Fee– Also called the investment advisory fee, this represents the

company’s cost for managing the money in the fund.

• Wrap Account Fee– Charged by some types of funds for fund management, this is an

annual percentage of the investor’s assets in the account.

• Custodial Fee– The charge for safekeeping or physically holding the securities in

the fund.

Pick the Investment Pattern

Annual Return (%)

Comparison of Developed Country Returns from 1988-2012

Highest

Return

Lowest

Return

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Belg. Austria UK H.K. H.K. H.K. Norway Switz. Spain Switz.

44.25

Belg.

67.76

Sing. Switz. Austral. Austria Sweden Austria Can. Spain

49.36

H.K. Japan Norway Sweden US Belg.

53.63 103.91 10.29 49.52 32.29 116.70 23.57 44.12 40.05 44.25 67.75 99.40 5.85 1.68 16.55 64.53 71.52 28.31 49.36 41.20 -29.21 87.07 33.75 1.36 39.55

Den. Ger. H.K. Austral. Switz. Sing. Japan US Sweden Italy Italy Sweden Can. Austria Austral. Ger. Belg. Japan Sing. Ger. Switz. Austral. Den. UK Den.

52.67 46.26 9.18 33.64 17.23 67.97 21.44 37.14 37.21 35.48 52.52 79.74 5.34 -5.65 -1.34 63.80 43.53 25.52 46.71 35.21 -30.49 76.43 30.73 -2.56 31.27

Sweden Norway Austria US US Switz. Sweden Sweden H.K. Den. Spain Japan Den. Belg. Norway Spain Norway Austria Norway Norway US Sing. H.K. Switz. Sing.

48.33 45.53 6.33 30.07 6.39 45.79 18.34 33.36 33.08 34.52 49.90 61.53 3.44 -10.89 -7.26 58.46 38.39 24.64 45.12 31.43 -37.57 73.96 23.23 -6.77 30.96

Norway Den. Norway Sing. Sing. Norway Neth. Spain Norway US France H.K. Norway Spain Italy Austria Sweden Den. Can. Spain Sweden Sing. Norway Ger.

42.40 43.94 0.65 24.96 6.28 42.04 11.70 29.83 28.63 33.38 41.54 59.52 -0.89 -11.36 -7.33 56.96 36.28 24.50 29.57 -40.60 64.16 22.14 -10.01 30.90

France Sing. Den. France France Sweden Italy Neth. Can. Spain US Can. Italy Norway Japan Can. Italy Norway Den.

38.77

Sing. France H.K. Can. Belg. H.K.

37.87 42.26 -0.91 17.83 2.81 36.99 11.56 27.71 28.54 25.41 30.14 53.74 -1.33 -12.22 -10.28 54.60 32.49 24.26 38.77 28.35 -43.27 60.15 20.45 -10.62 28.27

Austral. France US Neth. Neth. Ger. Belg. Belg. Neth. Ger. Ger. Norway Neth. US Switz. Austral. Den. Switz. Belg. Austral. Can. Belg. Japan Austral. Austria

36.40 36.15 -3.15 17.80 2.30 35.64 8.24 25.88 27.51 24.57 29.43 31.70 -4.09 -12.39 -10.31 49.46 30.82 16.33 36.66 28.34 -45.51 57.49 15.44 -10.95 25.90

Japan Neth. Neth. Den. Belg. Neth. Sing. H.K. UK Neth. Switz. France France UK Sing. Den. Austral. Austral. Austria

36.54

Den. Ger. Can. US Neth. Austral.

35.39 35.79 -3.19 16.56 -1.47 35.28 6.68 22.57 27.42 23.77 23.53 29.27 -4.31 -14.05 -11.05 49.25 30.34 16.02 36.54 25.59 -45.87 56.18 14.77 -12.12 22.07

Sing. Sweden Switz. UK UK Austral. Austral. UK US UK Neth. US Austral. Den. Can. Norway Spain Sing. Ger. Spain Sing. Spain Austral. Spain Sweden

33.32 31.79 -6.23 16.02 -3.65 35.17 5.40 21.27 23.24 22.62 23.23 21.92 -9.95 -14.81 -13.19 48.11 28.93 14.37 35.99 23.95 -47.35 43.48 14.52 -12.28 21.97

H.K. US Ger. Switz. Ger. Den. Ger. Den. Den. Belg. UK Ger. UK H.K. Belg. France H.K. Neth. Neth. Den. UK Switz. Can. France

28.12 30.01 -9.36 15.77 -10.27 32.81 4.66 18.78 21.79 13.55 17.80 20.04 -11.53 -18.61 -14.97 40.22 24.98 13.85 20.59 -47.56 43.30 11.79 -12.71 21.29

Ger. Switz. Belg. Spain Austria Spain Den. Can. France Sweden Sweden Austral. Austria Can. UK H.K. Sing. Sweden France Neth. Austria Norway Japan Neth.

20.60 26.21 -10.98 15.63 -10.65 29.78 3.77 18.31 21.20 12.92 13.96 17.62 -11.96 -20.44 -15.23 38.10 22.27 10.31 13.24 -48.22 43.20 10.95 -14.33 20.59

Can. Can. Sing. Sweden Austral. Italy Switz. Ger. Austral. Can. Den. UK US Switz. Spain Italy Can. Ger. Neth.

31.38

UK UK Neth. Austria Sweden Switz.

17.07 24.30 -11.66 14.42 -10.82 28.53 3.54 16.41 16.49 12.80 8.99 12.45 -12.84 -21.38 -15.29 37.83 22.20 9.92 31.38 8.36 -48.34 42.25 9.88 -15.98 20.35

US UK Can. Belg. Can. Austria US France Ger. France Austral. Den. H.K. Neth. Den. Sing. UK France Austral.

30.86

Italy Sweden Den. UK Den. Norway

14.61 21.87 -13.00 13.77 -12.15 28.09 1.13 14.12 13.58 11.94 6.07 12.06 -14.74 -22.10 -16.03 37.60 19.57 9.88 30.86 6.06 -49.86 36.57 8.76 -16.02 18.65

Neth. Italy France Can. Sweden Japan UK Austral. Italy Norway Japan Neth. Ger. France H.K. Japan France Belg. UK

30.61

US Italy France Ger. H.K. US

14.19 19.42 -13.83 11.08 -14.41 25.48 -1.63 11.19 12.59 6.24 5.05 6.88 -15.59 -22.36 -17.79 35.91 18.48 9.05 30.61 5.44 -49.98 31.83 8.44 -16.02 15.33

Spain Belg. Spain Japan Japan UK Can. Sing. Belg. Austria Austria Spain Spain Ger. Neth. Belg. Ger. H.K. H.K.

30.35

Switz. Austral. Italy Neth. France UK

13.53 17.29 -13.85 8.92 -21.45 24.44 -3.04 6.45 12.03 1.57 0.35 4.83 -15.86 -22.39 -20.83 35.33 16.17 8.40 30.35 5.29 -50.67 26.57 1.74 -16.87 15.25

Italy Spain Austral. Ger. Spain Belg. Spain Norway Austria Austral. H.K. Italy Belg. Sing. France Switz. Japan UK Switz.

27.40

Austria H.K. US Belg. Sing. Italy

11.46 9.76 -17.54 8.16 -21.87 23.51 -4.80 6.02 4.51 -10.44 -2.90 -0.26 -16.85 -23.42 -21.18 34.08 15.86 7.35 27.40 2.17 -51.21 26.25 -0.42 -17.92 12.48

Switz. Austral. Italy Italy Italy France France Italy Switz. H.K. Can. Switz. Sweden Italy US UK Switz. US Can.

17.80

Sweden Norway Switz. France Ger. Can.

6.18 9.30 -19.19 -1.82 -22.22 20.90 -5.18 1.05 2.28 -23.29 -6.14 -7.02 -21.29 -26.59 -23.09 32.06 14.96 5.14 17.80 0.62 -64.24 25.31 -4.11 -18.08 9.09

UK H.K. Sweden Austria Norway Can. Austria Japan Sing. Japan Sing. Austria Sing. Sweden Sweden US Neth. Spain US

14.67

Belg. Belg. Ger. Italy Italy Japan

5.95 8.39 -20.99 -12.23 -22.29 17.58 -6.28 0.69 -6.86 -23.67 -12.88 -9.11 -27.72 -27.18 -30.49 28.41 12.24 4.41 14.67 -2.73 -66.48 25.15 -15.01 -23.18 8.18

Austria Japan Japan Norway Den. US H.K. Austria Japan Sing. Norway Belg. Japan Japan Ger. Neth. US Italy Japan

6.24

Japan Austria Japan Spain Austria Spain

0.57 1.71 -36.10 -15.50 -28.25 9.15 -28.90 -4.72 -15.50 -30.05 -30.06 -14.26 -28.16 -29.40 -33.18 28.09 10.14 1.90 6.24 -4.23 -68.41 6.25 -21.95 -36.43 3.00

France

34.48

Italy

32.49

Sweden

43.39


SOCIAL SECURITY ISSUES

Remember your TRS Annuity is never reduced by Social Security!



Social Security Considerations

• 2 Regulations• Windfall Elimination Provision (WEP)

– Applies to member’s OWN Social Security benefits– (SSA Pub No. 05-10045)

• Government Pension Offset (GPO)– Applies to member’s SPOUSAL Social Security benefits– (SSA Pub No. 05-1007)

• www.ssa.gov• Periodically bills are filed to repeal GPO and WEP

at Federal level — very costly to repeal




Government Pension Offset — SPOUSAL BENEFIT

• The “LOOP-HOLE” closed July 1, 2004• Old Law Exemption: You were employed by an SS-

covered District on your last day of employment• Current Law Exemption: You have to be employed

by a SS-covered District for your last 60 months to be eligible

• This law uses a two-thirds offset rule• Two-thirds of your TRS Annuity benefit will be

subtracted from your spousal SS benefit• Does NOT reduce TRS Pension Benefit




Government Pension Offset — SPOUSAL BENEFIT

TRS Pension - $2,100

Spousal SS Benefit - $1,000

Subtract 2/3 of TRS benefit from eligible SS benefit

SS Benefit $1,000

— (2/3 of $2,100) - $1,400

= - $ 400

TRS Member is not eligible for spousal benefit, but receives full TRS annuity

TRS Pension - $2,100

Spousal SS Benefit - $1,600

Subtract 2/3 of TRS benefit from eligible SS benefit

SS Benefit $1,600

— (2/3 of $2,100) - $1,400

= $ 200

TRS Member is eligible for spousal benefit of $200 plus full TRS annuity




Windfall Elimination Provision — YOUR BENEFIT

• Does NOT reduce TRS Pension Benefit

• Effects employees who are eligible for their OWN government/state pension and Social Security

• Uses a factor to calculate your SS benefit income based on ‘Years of Substantial Earnings’

• Different than ‘Service Credits’ under SS




Service Credit vs. Years of Substantial Earnings

• Service Credits under Social Security

– Eligible for 4 credits per year

– Total of 40 credits to qualify for a benefit

– For 2014, received 4 credits if earned $4,800

• Year of Substantial Earnings

– Higher income number

• May accumulate all Service Credits under SS without earning Years of Substantial Earnings




Windfall Elimination Provision - YOUR BENEFITYear Substantial earnings1968–1971 $1,950

1972 $2,250

1973 $2,700

1974 $3,300

1975 $3,525

1976 $3,825

1977 $4,125

1978 $4,425

1979 $4,725

1980 $5,100

1981 $5,550

1982 $6,075

1983 $6,675

1984 $7,050

1985 $7,425

1986 $7,875

1987 $8,175

1988 $8,400

1989 $8,925

1990 $9,525

1991 $9,900

1992 $10,350

1993 $10,725

1994 $11,250

1995 $11,325

1996 $11,625

1997 $12,150

1998 $12,675

1999 $13,425

2000 $14,175

2001 $14,925

2002 $15,750

2003 $16,125

2004 $16,275

2005 $16,725

2006 $17,475

2007 $18,150

2008 $18,975

2009 $19,800

2010 $19,800

2011 $19,800

2012 $20,475

2013 $21,075

2014 $21,750

Years of substantial

earnings

Percentage30 or more 90 percent

29 - 85 percent

28 - 80 percent

27 - 75 percent

26 - 70 percent

25 - 65 percent

24 - 60 percent

23 - 55 percent

22 - 50 percent

21 - 45 percent

20 or less 40 percent*

*Actual Reduction cannot be greater than 50%

TRS AND NATIONAL RETIREMENT ISSUES

83rd Legislature — 2013

• SB 1458: TRS Benefits and Contributions• Increase in normal-age retirement eligibility for non-vested

members: – Raises minimum unreduced retirement age to 62

• Still have to meet Rule of 80 and at least 5 years of service • Reduction — 5% per year before age 62

– Grandfathering — Currently all Vested Members (5 years of service) as of 8/31/2014

• All New Members on or after 9/1/2014• Cost of Living Increases to Retirees

– Lesser of 3% or $100 for retirees who retired on or before 8/31/2004

– Only if TRS is actuarially sound

83rd Legislature — 2013

• SB1: Appropriations Bill — New Contribution Rates– State — rises from 6.4% (FY 2014) to 6.8% (FY 2015)

• Must stay at 6.8% or District and Member rates drop

– Members* • 6.4% to 6.7% 9/1/2015

• 7.2% 9/1/2016

• 7.7% 9/1/2017– FY 2015 Districts — rises from 0% to 1.5% 9/1/2015**

• *Does not include TRS-Care part of contribution

• **Some districts currently have to contribute a small amount; districts in Social Security are exempt

Prior Changes in TRS

• Effective 9/1/2012

– Change Definition of School Year to 9/1 – 8/31 for All Districts and All Positions

– Year of Service = 90 Work Days in a School Year (Already adopted by TRS Board)

– Exception in Year of Retirement — 1 Semester in School Year

Prior Changes in TRS

• Partial Lump Sum Eligibility — Rule of 90

– Only applies to those that are 5 year average

• Effective 9/1/2011

– Increases to all Service Purchases Except Military Service

– Return to Work in TRS Covered Position with No Penalty if Retire and Out of TRS Covered Work for 12 Consecutive Months from Retirement Date

– 5-Year Limit on Correction of Service Credit

Types of Service Credits

• Contact TRS for Actual Cost• Withdrawn Service

– OLD: Amount withdrawn plus 6% annual interest – NEW: Amount withdrawn plus 8% annual interest– Had until 9/1/2013 to purchase at old cost

• Unreported & Substitute Service – OLD: Unpaid contributions plus 5% annual interest– NEW: Full actuarial cost as of 9/1/2011– Had until 9/1/2013 to purchase at old cost

• Military Service — No Change– Purchase up to 5 years– Cost basis dependent on when military time was served (+) 8% annual interest

• Out of State Service– OLD: Multiple options depending on vesting– NEW: Actuarial

• Costs Increased Sept 1, 2013

TRS Annuity Options

• Standard Annuity– Maximum benefit for retiree’s life only

• Option 1: 100% Joint Survivor– Reduced annuity, payable for retiree’s life with continuous payments for beneficiary’s life. If

beneficiary pre-deceases, retiree’s annuity is increased to standard annuity amount– Most common, typically 8-13% reduction from Standard Annuity

• Option 2: 50% Joint Survivor– Reductions range from 4-8% based on same age beneficiary

• Option 3: 60 Month Period Certain– Reduced annuity, payable for retiree’s life with annuity payments guaranteed for a minimum

of 60 months – If retiree dies before 60th payment, beneficiary will receive the remaining payments – Typically 1-2% reduction from Standard Annuity

• Option 4: 120 Month Period Certain– Typically 1-4% reduction from Standard Annuity

• Option 5: 75% Joint Survivor– Reductions range from 6-12% based on same age beneficiary

YOUR DISTRICT’S RETIREMENT SAVINGS PLANS

RAMS Investment Advisory Committee

• Meets every quarter to review investments and all matters of the plan

• Made up of representatives from participating districts

• TCG Advisors does research for and gives suggestions to the IAC

• The IAC has authority to replace underperforming investments

Region 10 ESC — 457(b) Retirement Savings Plan

• Providers selected through a competitive process• High quality no-load and load-waived mutual

funds• Education provided by a financial advisor• Full disclosure of fees• No surrender charges or other penalties to

transfer funds• Fiduciary protection• Managed portfolio or self-directed investment

options


RAMS Plan Investments

• 15+ Mutual Funds: Choose own allocation– High Quality, No-Load and Load-Waived

– Low Cost Funds

• 6 Model Portfolios — No Additional Fees– Signature Portfolio

– Preservation

– Conservative

– Moderately Conservative

– Growth

– Aggressive Growth


Portfolio Options


403(b) Tax-Deferred Savings Plan

• Voluntary, pretax deferrals from paycheck• Governmental equivalent to 401(k)• Big Changes 1/1/2009

– New IRS Regulations– Require District to:

• Administer Plan according to a Written Plan (Document)– All Rules must be in Written Plan

• Oversee all Plan transactions– Distributions, Loans, Transfers, etc.

• District has contracted with ESC Region 10 to provide administration

403(b) Tax-Deferred Savings Plan

• Third Party Administrator is JEM Resource Partners

• Can conduct all business (enroll, make changes, obtain approval for distributions):

• www.region10rams.org• Call (800) 943-9179 or email [email protected]

• Choose from Vendors that meet 2 criteria– On TRS Approved List; and– Meet District Rules

• Must agree to terms of 403(b) Written Plan• Must provide data to TPA electronically

http://www.region10rams.org/

mailto:[email protected]

4 Easy Steps to Start Saving

1. Decide how much to save from each paycheck

2. Determine your risk tolerance

3. Decide which retirement savings plan (403(b), 457, or both) will help meet your retirement goals

4. Enroll in a plan

a) Go to www.region10rams.org

b) Contact a JEM representative for help

http://www.region10rams.org/

Steps to Success

• Know your goals!– How much will I need?– Who do I need to provide for?

• Spouse, Children, Parents, Charities, etc.

– Any other quantifiable goals?

• Choose portfolio allocation designed to achieve investment return needed– Only take the risk you need to meet the goal

• Monitor your investments — are they performing? • Choose investments to meet goals!• Retirement planning is a process not an event!


900 South Capital of Texas Highway,Suite 350Austin, TX 78746(512) 306-9939

[email protected]

Documents

Financial Wellness: Your Goals, Your Savings