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7/29/2019 ML MyFuture 0107
1/19
T H E R E T I R E M E N T G R O U P A T M E R R I L L L Y N C H
The Source for Retirement Planning and Investing
ContactingMerrill Lynch Benefits OnLine
Web sitewww.benefits.ml.com
Call your RetirementService Center toll free
To learn about distributionoptions, call the RetirementEducation Services teamat 1-877-637-1786
Issue 1, 2007
Small changes,big resultsSmall changes in your contribution strategy
may make a big difference over time.Learn more.
Exit strategiesIf youre leaving your employer fora new job or for retirement, hereswhat you need to know beforeyou make a decision about yourretirement savings.
Rebalancing actWhy this regular maintenance strategy is importantto keep your portfolio on target.
market beatUnderstanding the marketSimple guidelines to help you become a more informed investor.
Measuring your investment progressWhat is the most effective way to measure your investment performance?
investor toolbox$
DEPARTMENTS
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The Source for Retirement Planning and Investing
1
Issue 1, 2007
Wondering what could happen if youraise the amount you contribute to
your retirement plan account?
Make it a new years resolution tosave more in 2007.
Opportunity may be hiding in yourretirement plan, just waiting to go towork for you. You may be able to geta bigger tax break by contributingmore to your plan. If you just turned 50,you may be eligible for catch upcontributions that can help you makeup for years when you couldnt saveenough. You may even be entitled tofree money*, if your employer offers to
matchsome portion of your contribution.Saving for retirement may be one of the
biggest financial challenges youll everface, but even small changes in yourcontribution strategy can make adifference over time.
Small changes, big results
Continued on next page.
To the limit
The IRS maximum amount you can contribute to your employers retirement plan pre-tax in 2007
is $15,500. And its indexed for inflation to rise in $500 increments in future years, whenever the
cumulative effects of inflation are high enough.
* Subject to eligibility and vesting requirements.
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The Source for Retirement Planning and Investing
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Issue 1, 2007
Continued on next page.
After-50 catch up
Saving for retirement is the single most important
long-term financial goal for most working
Americans. But if you got off to a slow start in your
younger years, theres a way to help make up for
some lost time. Congress has created a separate
category of catch-up contributions for individuals
who are age 50 and older. Currently, if you will be at
least age 50 anytime during the year, you are eligibleto add $5,000 above and beyond the IRS maximum
pre-tax 2007 contribution limit of $15,500. If you
added $5,000 to your retirement account every year
between ages 50 and 65, earning 6% a year, you
could end up with quite a catchan additional
$116,379.85* for retirement.
If youre not contributing the maximum to your plan,
consider a strategy to get closer to the mark in the years to come. When you contribute the
maximum to your account, you get the full benefit of tax-deferred growth potential. And the higher
your contribution, the larger the tax deferral. Thats because the money you contributed is taken outof your paybefore federal income tax is calculated.
Even if you cant contribute the maximum to your plan today, you may be surprised what you can
achieve when you raise your current contributioneven just a little. Say, for example, that you earn
$48,000 per year, and contribute 8% of your salary ($320 monthly, $3,840 annually) to your 401(k)
and it averages an annual return of 6%. Now, consider what would happen if you raised your
contribution by 2% (an increase of $80 monthly, $960 annually), earning the same 6% return.
Continued from previous page.
Getting a raiseor a bonus?
If youre getting a raise ora bonus in 2007, use it toincrease yoursavings by
1%, 2% or more. Youllnever miss the dollars inyour paycheck, and youllincrease your retirementsavings.
*This hypothetical illustration assumes an annual contribution of $5,000 and a 6% annual rate of
return, compounded yearly. Hypothetical results are for illustrative purposes only and are not meantto represent the past or future performance of any specific investment vehicle. Investment return
and principal value will fluctuate and when redeemed the investments may be worth more or less
than their original cost. Taxes are due upon withdrawal. If you take a withdrawal prior to age 59 1/2,
you may also be subject to a 10% tax penalty.
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The Source for Retirement Planning and Investing
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Issue 1, 2007
Continued on next page.
As you can see in the chart at right, you could
accumulate $321,445 after 30 years with your
current contribution rate of 8%. But you could
accumulate anadditional$80,361 in retirement
savings if you raised your contribution by just
$80 a month for that same 30 years (total of
$401,806).
Whats $80 a month? A new pair of shoes. Two
trips to the movies with you and three friends.Just one night out on the town. You dont have to
give themallup. Just a small sacrifice, and look
at the difference it could make down the road.
Free money*
Free money for your retirement account? Thats
what you could receive if your employer offers
a match on your contributions. Even if you
contribute less than the maximum to your plan,
it makes good sense to max out the match, if
availablecontribute at least enough to get the
maximum matching amount possible.
In fact, leaving match money on the table is
like throwing it away: its lost forever if you pass
it by. But when you take advantage of an
employer matching contribution, you lock in an
immediate return on your investment (although
it will be subject to investment performance in
your account).
Continued from previous page.
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
After After After10 Years 20 Years 30 Years
**This hypothetical illustration assumes a salaryof $48,000, an 8% and 10% contribution rate,respectively; and a 6% annual rate of return,compounded monthly. Hypothetical results are forillustrative purposes only and are not meant torepresent the past or future performance of anyspecific investment vehicle. Investment return andprincipal value will fluctuate and when redeemedthe investments may be worth more or less than
their original cost. Taxes are due upon withdrawal.If you take a withdrawal prior to age 59 1/2, youmay also be subject to a 10% tax penalty.
A contribution increaseof just 2% can makea difference!**
As you can see, you could
accumulate an additional$80,400 if you raised yourcontribution by just $80 amonth for that same 30 years.
You couldaccumulate
a total of
$401,800after 30 yearsif you increase
your contributionto 10%
$4,800/year
(pre-tax pay)
You couldaccumulate
a total of
$321,400after 30 years
with acontribution rate
of 8%$3,840/year(pre-tax pay)
* Subject to eligibility and vesting requirements.
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Continued from previous page.
The Source for Retirement Planning and Investing
4
Issue 1, 2007
Unless otherwise noted, all service marks (registered or otherwise) are the property of Merrill Lynch & Co., Inc.
January 2007 Merrill Lynch, Pierce, Fenner & Smith Incorporated. 20071020Published in the U.S.A. Member, Securities Investor Protection Corporation (SIPC).
Start small, aim high
As you turn the calendar to 2007, consider setting a higher goal for your retirement savings. Your
target should be to save at least 10% of your pre-tax income for retirement. Thats the amount many
experts say youll need to save throughout your working years to build a nest egg that can generate
adequate income in retirement. Even if your current contribution falls short of the mark, one of the
easiest ways to close the gap is to make small increases over time. Just remember: the balls in your
court. In order to defer more of your income for retirement, you must make a new contribution election,
according to the procedure for your plan. Put it on your resolution list and do it today.
To make an election change or for more information, please contact Merrill Lynch. Log on toBenefits OnLineat www.benefits.ml.com, or call the Retirement Service Center.
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The Source for Retirement Planning and Investing
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Issue 1, 2007
Exit strategiesLeaving your employer for a new job
or for retirement? Heres what youshould knowbefore you make adecision about your retirement savings.
If youre changing jobs or leaving the workforce,
either temporarily or to retire, you have plenty
of company. Its a transition made annuallyby millions of American workers. Its also a
time for deciding what to do with the money
youve saved in your employers tax-deferred
retirement plan. Before you make a hasty
decision, consider that the choices you make
today could determine how well you live in
retirementwhether its around the corner or
decades away.
Help when you need it mos
tThere are a number of facts and rules that
may apply to your account balance in the plan
when you leave. Its important that you
understand each of thesebefore you take action. Merrill Lynch Retirement Education Services is
ready to help with the information you need, help in understanding your options, and assistance in
taking action. To get started, review your options on the next page, then see the section called
Get expert help, which follows.
Continued on next page.
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The Source for Retirement Planning and Investing
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Issue 1, 2007
Continued from previous page.
Consider your options
Generally speaking, you have up to four options for your tax-deferred retirement savings,
depending on your age and your next step in the workforce
1) Leave your money in your current employers plan
Preserve tax-deferred growth potential
No current tax or penalty due
Regardless of your reason for leaving, your retirement savings can stay right where they are until
age 65or longeras long as your account balance is at least $5,000 (annual administration fees
may apply). Savings in a tax-deferred workplace savings plan are protected from creditors under
federal law.
2) Roll over to your new employers plan
Preserve tax-deferred growth potential
No current tax or penalty due
If youre leaving your current employer for a new one, you may be able to
roll over your retirement savings to your new employers plan, if the plan
allows. With a rollover, youll preserve tax-deferred growth potential and
defer current taxes and penalties.
However, there may be a waiting periodand not all employer plans
accept rollovers. You are also limited to the investment options available
in your new plan.
Generally, you can withdraw money from your account without the 10% early withdrawal penalty if
youre age 59 1/2 or older. In addition, you may qualify for a penalty-free withdrawal for a first-time homepurchase and for education expenses. It all adds up to greater choice, control and convenience.
Continued on next page.
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The Source for Retirement Planning and Investing
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Issue 1, 2007
Continued from previous page.
3) Roll over to an individual retirement account (IRA)
Preserve tax-deferred growth potential
No current tax or penalty due
Wide range of investment options
No matter what your reason for leaving your employer, you can always roll over your savings to an
IRA. It can be easier to manage your retirement savings in a rollover IRA because you can continue to
use the IRA to consolidate your eligible retirement assets no matter how many times you change jobs.If youre ready to retire, a rollover IRA can make it easier for you to create a retirement income
strategy. Youll also have access to a wider range of investment options including stocks, bonds,
mutual funds, CDs and treasuriesand more distribution options for your beneficiaries. Access to
investment advice and guidance is also available to you.
Generally, you can withdraw money from your account without the 10% early withdrawal penalty if
youre age 59 1/2 or older. In addition, you may qualify for a penalty-free withdrawal for a first-time
home purchase and for education expenses. It all adds up to greater choice, control and convenience.
For most plans, you can make a distribution online at Benefits OnLine and open a rollover IRA in a
few easy steps.
4) Withdraw some or all of your plan savings
Forfeit tax-deferred growth potential on the amount withdrawn
Subject to immediate 20% withholding for taxes on the withdrawal
Income tax due, and potential 10% tax penalty, depending on your age
Taking your savings in a cash distribution will leave you owing federal and any applicable state
income tax on the amount of any withdrawal, plus a possible 10% tax penalty if you are under age
59 1/2, or under age 55 if you are separated from service. For example, if you are in the 28% tax
bracket and withdraw $10,000 from your plan, you would pay $2,800 to federal income tax.You can subtract another $1,000 if youre subject to a 10% tax penalty, leaving you with $6,200
or less if youre also subject to state income tax.
Even if youre between jobs, it may be a good idea to exhaust all other options before you withdraw
tax-deferred retirement savings because taxes and a potential penalty could dramatically reduce
the value of your withdrawal. And if you have an outstanding loan against your account, the
balance owed will also be treated as a taxable withdrawal.
Continued on next page.
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The Source for Retirement Planning and Investing
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Issue 1, 2007
Continued from previous page.
Special tax treatmentavailable for company stock
If you own company stock in your tax-deferred
accounts, you may be eligible for a special
tax treatment. And if you own stock that has appreciated
significantly, this special tax treatment could save you
thousands of dollars.
Strict rules govern the distribution of company stock andyou must follow them to the letter in order to qualify for this
special tax treatment. And, if youre under age 59 1/2, this
type of distribution may be subject to a 10% early withdrawal
penalty. For more information on rules, eligibility and other
considerations, consult a financial advisor before you take
any action.
Get expert help
The decisions you make today about your retirement savingscan have a permanent impact on your retirement future.
Thats why half of all job changers consult a professional
financial advisor to help them decide what to do with their
retirement plan savings. If youre seeking help with your choices,
make sure you choose a financial advisor with the expertise
and experience to provide the guidance you need. You can
elect to work with a Merrill Lynch financial advisor, on a
fee-for-service basis, either on the phone or in person at a
local branch office.
Unless otherwise noted, all service marks (registered or otherwise) are the property of Merrill Lynch & Co., Inc.
January 2007 Merrill Lynch, Pierce, Fenner & Smith Incorporated. 20071020Published in the U.S.A. Member, Securities Investor Protection Corporation (SIPC).
For assistance in getting started, call a Merrill Lynch Retirement Education Servicesrepresentative at (877) 637-1786.
Questions aboutyour retirement planoptions?
Get the help you need whenyou call a Merrill LynchRetirement EducationServices representative at(877)-637-1786.
Our team of experts isavailable to answer yourquestions about thetransition to anotheremployer or to retirement.We can also help youunderstand and evaluateyour distribution optionsand provide a distributionanalysis of your retirementsavings at no charge.
A Retirement EducationSpecialist can talk with youabout your personalsituation and give youobjective answersas you decidewhat to do withyour savings plan.
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The Source for Retirement Planning and Investing
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Issue 1, 2007
Rebalancing actThe easiest way to keep your investment plan on track
can be the hardest thing you ever do.
One of the basic principles of long-term investing is to have an asset allocation plan and stick to
it. But that can be easier said than done. Even if you have a simple asset allocation plana 50/50
split between stock and bond funds, for exampleyoull have to perform a regular maintenance
strategy called rebalancing to keep your portfolio on target.
Managing your asset allocation
Asset allocation plans require regular maintenance because markets move at different paces
over cycles that can last for several years. For example, stock funds were strong performers in
the late 1990s. Then bond funds had their day in the sun, outperforming stock funds from 2000
through 2002.
Varying rates of performance are normal, but they are likely to shift your asset allocation plan off
its target. The shift may not be obvious after a year or two. But left untended, even a straightforward
50/50 asset allocation could end up way off its mark after five to ten years.
Why rebalancing matters
What does it mean if your asset allocation shifts a
few percentage points here or there? After it shifts,
its no longer your personal asset allocation it no
longer reflects your risk tolerance, goals and time
horizon. If your stock allocation rises more than
bonds, your portfolio becomes more risky. If your
bond allocation rises more than stocks, your
portfolio becomes more conservative. Either way,
its not the allocation you started with. And yourgoal should be to keep your allocations as close to
their targets as possible, using an approach called
rebalancing.
Continued on next page.
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The Source for Retirement Planning and InvestingThe Source for Retirement Planning and Investing Issue 1, 2007
Continued on next page.
How rebalancing works
Heres how rebalancing worksat the end of
every year, tally up your investments by asset
class and check your positions against your
intended asset allocation targets (see illustration
at right).
When a position strays approximately five
percentage points above its target, your goal isto cut it back and add a corresponding amount
to any position that has fallen below its target
(see illustration at right).
If you are rebalancing within your retirement
account, there are no tax consequences to your
actions. However, rebalancing outside your
retirement portfolio could involve tax consequences,
and its a good idea to consult a tax advisor
before you take action.
Rebalancing gets more complicated when your
portfolio allocations are more complexfor
example, if your stock allocation is further
divided into categories by investment style or
market capitalization. However, the process
remains the same.
Continued from previous page.
If your asset allocation shifts, even
by a few percentage points, it no
longer reflects your personal risktolerance, goals and time horizon.
And your goal should be to keep
your allocations as close to their
targets as possible.
Heres how rebalancing works
At the end of every year, tally up your
investments by asset class and check
your positions against your intended
asset allocation targets
Hypothetical portfolio at the beginningof the year:
Same hypothetical portfolio at the endof the year:
Since the position shifted nearly fivepercentage points from target, exchange$550 from the stock fund position andinvest it in the bond fund to bring thestock/bond allocation back to 50/50.
50%Asset Allocation
$5,000Investment Value
50%Asset Allocation
$5,000Investment Value
StockFunds Bond Funds
54.8%AssetAlloca
tion
$6,200InvestmentV
alue
45.2%AssetAlloca
tion
$5,100InvestmentV
alue
StockFundsBondFunds
50%Asset Allocation
$5,650Investment Value
50%Asset Allocation
$5,650Investment Value
StockFunds Bond Funds
10
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The Source for Retirement Planning and Investing
Continued on next page.
Battling your emotions
Rebalancing may be hard for many investors because it seems to go against the grain: You may
have to cut back on the funds that have done well and add to funds that have not kept up.
But dont let your emotions get in the way of following through. Rebalancing is what makes asset
allocation work over the long term.
Many investors who let their stock positions run over the top in the late 1990s might have spared
themselves a significant loss in value by rebalancing before the severe downturn in the spring of
2000. Rebalancing is a long-term strategy that seeks to balance your targeted asset allocation withyour original risk tolerance.
To help you get started in selecting an asset allocation, Benefits OnLine, the plan Web site, includes the
Retirement Asset Selector tool. To access the tool, log on to the Benefits OnLine, select the Planning
tab at the top of the home page, and Investing. Then, click on Retirement Asset Selector, which can
help you identify a basic allocation among stocks, bonds and cash equivalent investments.
If you are actively engaged in an asset allocation strategy, you will find that your needs change as
you move through the various life stages. For that reason, some professional money managers
recommend moving a portion of your assets to a different model several years prior to major life
changes. For example, if you are ten years away from retirement, you may consider moving 10% of
your holdings into an income-oriented allocation model each year. By the time you retire, your entire
portfolio would reflect your revised objectives.
Keep in mind that diversification does not assure a profit or protect against a decrease in value in a
declining market. An asset allocation strategy may help you identify the asset class you wish to invest
in, but you need to learn about the specific mutual funds you are considering, and once invested,
monitor their performance. See the Investor Toolbox, report, Measuring your investment progress.
If offered in your plan, Merrill Lynch Advice Access or the GoalManager Portfolio Rebalancing Service
can simplify the task of choosing investments and keeping your asset allocation in balance. If your
plan offers one of these services, and you have not yet taken advantage of it, you can learn more
about it at your convenience on Benefits OnLine, www.benefits.ml.com
Continued from previous page.
11
Issue 1, 2007
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Continued from previous page.
For assistance in getting started, call a Merrill Lynch Retirement Education Services representative
at (877) 637-1786.
The Merrill Lynch Advice Access service uses a probabilistic approach to determine the likelihood
that a participant of the service may be able to achieve stated goals and/or to identify a range of
potential wealth outcomes that could be realized. You should carefully review the explanation of the
methodology used, including key assumptions and limitations, which is provided in the Merrill Lynch
Advice Access disclosure statement. It can be obtained through Benefits OnLine or through a
Retirement Service Representative.
IMPORTANT: The projections or other information shown in the Merrill Lynch Advice Access service
regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect
actual investment results and are not guarantees of future results. Results may vary with each use
and over time.
The Source for Retirement Planning and Investing
12
Issue 1, 2007
Unless otherwise noted, all service marks (registered or otherwise) are the property of Merrill Lynch & Co., Inc.
January 2007 Merrill Lynch, Pierce, Fenner & Smith Incorporated. 20071020Published in the U.S.A. Member, Securities Investor Protection Corporation (SIPC).
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The Source for Retirement Planning and Investing
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Issue 1, 2007
Measuring yourinvestment progress
If you want to know how much your children have grownover the past year, you measure them with a yardstick.If you want to know how much YOUVE grown over thepast year, you get on a scale. (Ouch!) Measuring yourinvestment performance is a similar exercisejust a littlemore complicated. Sure, you can compare how muchmoney you had at the beginning of the year to yourbalance at the end of the year, but that doesnt takeinto consideration 1) how much you added toyour investment during the year and 2) how similar
inves
tments
performed over thes
ame period.
Compare your funds returns to a benchmark index
A more effective way to measure your investment progress is to compare each one of your funds
returns to an index or to a peer group of similar funds over the same period. For example, if you own
a large-cap growth fund, compare it to a large-cap growth index, such as the Russell 1000 Growth
Index. It tracks the performance of approximately 1000 large growth-oriented companies and it can
serve as a guideline for your expectations. If the Russell 1000 Growth Index returned 3% and your
fund returned 4%, your investment has done well by comparison.
A peer group comparison is also valuable: two big companies, Lipper and Morningstar, offer comparisons
among similar mutual funds, grouped by asset class, style, size and other factors. Its nice to know
that your fund is somewhere close to average. However, you may want to look at a funds performance
over a three- to five-year period before you decide to make a change.
investor toolbox$
Continued on next page.
?
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The Source for Retirement Planning and Investing
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Issue 1, 2007
When comparing the performance of different funds, you may want to review both recent performance
and a longer time frame, such as 5 or 10 years, to see how the fund has performed in the current
market environment and historically over different market cycles. Monthly fund performance can be
found on Benefits OnLine, the plans Web site, under 401(k) Plan tab, then click on Investment
Strategy and then Fund Performance.
Using benchmarks and peer groups can help you keep fund performance in perspective. Its easy
to get discouraged if a fund loses money, but if similar funds experienced the same rough patch,
possibly the performance is more a result of market trends instead of the funds style or management.
In the box below, youll find a list of some common benchmark indexes. Look for themand others
when you evaluate the performance of the funds you own. Typically, your account statement may
include both your fund performance and a benchmark index. You can also find comparative
measures in your funds annual and semiannual reports. For your convenience, you can check your
personal rate of return for your investments anytime on Benefits OnLine.
Continued from previous page.
Consider the
se indexe
sto compare performance
S&P 500 Index1
Dow Jones Industrial Average2
S&P Midcap 400 Index3
Russell 2000 Index4
Lehman Brothers Aggregate Bond Index5
MSCI EAFE Index6
If your investment i
sa
Large-Cap Stock
Mid-Cap Stock
Small-Cap Stock
Core Bond Fund
International Stock Fund
Continued on next page.
1A widely recognized, unmanaged index of 500 publicly traded stocks that includes the reinvestment of dividends.2
A price-weighted average of 30 actively traded blue chip companies3An unmanaged index that consists of 400 domestic stocks chosen for market size, liquidity, and industry group representation.4An unmanaged index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index5An unmanaged index that tracks the total U.S. bond market including reinvestment of interest.6An unmanaged, free float adjusted market capitalization index that is designed to measure developed market equity performance,excluding U.S. and Canada. MSCI is a registered service mark of Morgan Stanley Capital International and its affiliates.
It is not possible to invest in an index.
Benchmark examples
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The Source for Retirement Planning and Investing
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Issue 1, 2007
You wouldnt expect to measure the depth
of the ocean with a yardstick. If you want an
accurate measure of your investment
performance, make sure youre using
appropriate indexes and peer groups.
Finally, once you have evaluated your mutual
funds, it is important to monitor each funds
performance on a regular basis and assess
its performance against your financial goals
as well as your targeted asset allocation.
Keep in mind that past performance does
not guarantee future results.
To make an election change or for more
information, please contact Merrill Lynch.
Log on to Benefits OnLineat
www.benefits.ml.com, or call the
Retirement Service Center.
Continued from previous page.
Unless otherwise noted, all service marks (registered or otherwise) are the property of Merrill Lynch & Co., Inc.
January 2007 Merrill Lynch, Pierce, Fenner & Smith Incorporated. 20071020Published in the U.S.A. Member, Securities Investor Protection Corporation (SIPC).
toolbox extra!
Easy online access toyour accounts 24/7*
You can manage your plan account
when its convenient for youvirtually
24 hours a day, seven days a week
through Benefits OnLine, the plan
Web site.
Log on to www.benefits.ml.com forthese easy-to-use features:
View account information for your
employer-sponsored plan(s)
Perform investment, saving,
distribution and loan transactions
View transaction history and account
statements
Calculate your personal rate of return
View investment information andperformance
Receive quarterly account
statements and transaction
confirmations online
Use modeling and retirement
planning tools
Receive account alerts and
messages
*Certain features may not be available based on
your plans parameters.
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The Source for Retirement Planning and Investing
16
Issue 1, 2007
Understanding the marketThanks to the Internet, and an emphasis onsaving for retirement, its easier than ever tofind information on investing and the financialmarkets. In fact, today there isso muchinformation that it can be hard to know whatyou should knowand what you should ignore.Here are some simple guidelines that can helpyou become a more informed investor
1) Choose one or two reliablesources of information.
All major regional newspapers have regular financialpages that report on the economy and the financial
markets. There are free financial Web sites that can be
even more timely in reporting breaking news. An easy
Web search will allow you to select one that you are
comfortable with. And many investment companies sponsor Web sites that provide a wealth of
objective financial news. You may wish to avoid the hype that comes over the Internet from
individual pitchmen or fliers that come in the mail, offering to sell you a program or a newsletter that
offers a guarantee of high returns.
2) Know the difference between news and opinion.
Reputable financial sources aim to be unbiased in their reporting of newsand typically give their
sources. For example, an article on the economic growth rate is likely to cite the Bureau of Economic
Analysis as its information source and a report on consumer confidence typically comes from a
survey conducted by the Conference Board. However, most financial publications and Web sites
also feature columns by financial experts who give their opinions. Its important to know the
difference between news and opinionand to weigh them accordingly.
Continued on next page.
market beat
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The Source for Retirement Planning and Investing
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Issue 1, 2007
3) Keep market news inperspective.
Some people are financial news junkies. They watch
the ticker tape on their TV or computer screens
throughout the day. And they obsess over the
financial numbers that are reported on the front page
of the Wall Street Journals Money & Investing
section. Yet, daily market news doesnt add much to
your financial knowledgeand it can make you lose
your perspective in a volatile market. A more practical
strategy is to check in on a few key market factors at
the end of every month or quarter. Avoid taking action
purely on the basis of what is happening in the
market. Let your target asset allocation guide your
investment strategy.
4) Read the investment reports
you receive from your mutualfund company.
Twice a year you receive a financial report about the
funds you own, and at least once a year the report
includes a message from the portfolio manager telling
how the fund was managed and explaining its
performance. These reports can help you understand
fund performance in the context of the market
environment of the period. They tell a more complete
story than the raw performance figures. Use them to
gain a better understanding of your fund and how itaims to achieve its goals over the long term.
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New Trading Rule toStop Market Timing
As you are probably aware, mutualfunds families are now able todiscourage short-term trading inand out of a fund by implementing
trading controls
on mutual funds
offered by employer-sponsoredplans. However, the decision toimplement controls is up to eachfund family, and some fund familiesmay decide against implementing
such controls.
If you want to know the applicablecontrols for a specific fund offeredby your plan, youll find it on yourplan Web site or through theRetirement Service Center. Be sure
to check these important policiesbefore you buy orsellshares of a mutual fundin your plan account.
7/29/2019 ML MyFuture 0107
19/19
The Source for Retirement Planning and Investing
18
Issue 1, 2007
Unless otherwise noted, all service marks (registered or otherwise) are the property of Merrill Lynch & Co., Inc.
For a broader overview of economic activity in the U.S. and around the world, you can also select
the Market Pulse tab on Benefits OnLine, where you will find Recent News Headlines, Mutual
Funds Insights, Market Indices and other financial information.
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