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ISAC 2012 Fall Education School

INVESTING,

SAVING,

RETIRING!

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Your Retirement Matters Now.

IT’S YOUR RETIREMENT. DEFINE IT.

ACT NOW. HERE’S WHY.

YOUR MONEY, YOUR CHOICE.

INVESTMENT BASICS.

DETERMINE YOUR INVESTMENT PERSONALITY.

QUESTIONS?

Please keep in mind that investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved. Also, assets withdrawn from a qualified plan may be subject to a 10% penalty tax if withdrawn prior to age 59 ½ distribution and all may be subject to income tax.

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Define It.

It’s Your Retirement.

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IDENTIFY YOUR RETIREMENT DREAMS.

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Ask the Social Security Administration …

Source: Frequently Asked Questions, http://www.ssa.gov/qa.htm: 2008

WILL SOCIAL SECURITY BE ENOUGH?

Q

A

          

    

Should I count on Social Security for all my retirement income?

          

   

No. Social Security was never meant to be the sole source of income in retirement. It is often said that a comfortable retirement is based on a "three-legged stool" of Social Security, pensions and savings. American workers should be saving for their retirement on a personal basis and through employer-sponsored or other retirement plans.

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EMPLOYER-SPONSORED RETIREMENT PLANS

• Defined Benefit Plans• Defined Contribution Plans• Section 457 Plans• Roth 457 Options• 401(K) Plans – possibly, in some

cases

How do they work?

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1. Retirement means different things

2. Social Security was not designed to completely

fund retirement

3. How your retirement plans work

Now you understand …

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Act Now.

Here’s Why.

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WHAT ARE YOURPRIORITIES?

YOUR CAREER BEGINS YOU RETIRE

Cover living expenses Upgrade your house TravelChanging jobs

Get married

Drive the car you deserve Expensive hobbiesPay off college

Buy a house Start a familyBusy social calendar Save for child’s college

Child’s weddingCare for aging parentsFamily vacation

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PUT TIME ON YOUR SIDE

JANEStarts at age 30Stops at age 40

Contributes for 10 years

$38.46/weekInvested $20,0008% hypothetical

growth rate

DON MICHAEL

Age 65

Starts at age 40Stops at age 65

Contributes for 25 years

$38.46/weekInvested $50,0008% hypothetical

growth rate

Age 65

Starts at age 30Stops at age 65

Contributes for 35 years

$38.46/weekInvested $70,0008% hypothetical

growth rate

Age 65

This illustration is a hypothetical compounding calculation assuming a rate of return of 8%. It is not intended to serve as a projection or prediction of the investment results of any specific investments. Investments are not guaranteed. Depending on the underlying investments, returns may be higher or lower. If fees and expenses had been considered in this illustration, the return would have been less. Interest compounded annually based on weekly contributions. Source: Nationwide Financial, 2002.

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PUT TIME ON YOUR SIDE

JANEStarts at age 30Stops at age 40

Contributes for 10 years

$38.46/weekContributed $20,000

8% hypotheticalgrowth rate

DON MICHAEL

Age 65$206,401

Starts at age 40Stops at age 65

Contributes for 25 years

$38.46/weekContributed $50,000

8% hypotheticalgrowth rate

Age 65$152,092

Starts at age 30Stops at age 65

Contributes for 35 years

$38.46/weekContributed

$70,0008% hypothetical

growth rate

Age 65$358,493

This illustration is a hypothetical compounding calculation assuming a rate of return of 8%. It is not intended to serve as a projection or prediction of the investment results of any specific investments. Investments are not guaranteed. Depending on the underlying investments, returns may be higher or lower. If fees and expenses had been considered in this illustration, the return would have been less. Interest compounded annually based on weekly contributions. Source: Nationwide Financial, 2002.

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INFLATION IS NOT LIKELY TO SLOW DOWN.

$0.22

$0.55

$3.55

$11,838

$0.37

$1.11

$6.41

$22,013

1Postal Rate Commission, www.prc.gov (8/18/06).2U.S. Department of Labor Bureau of Labor Statistics, www.bls.gov (8/21/06).3National Association of Theatre Owners, www.natoonline.org (8/21/06).4Ward’s Automotive Group and U.S. Department of Labor, Bureau of Labor Statistics, 2006.6Assumed inflation rate of 3/5%

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1. Do not let conflicting priorities keep you from contributing to your Employer Plan

2. Put time on your side and don’t wait

3. Inflation is not likely to slow down

Now you understand …

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Your Choice.Your Money,

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HOW MUCH SHOULD YOU INVEST?

To help you learn how much to invest, check out nationwide.com/rscore. There you’ll find an interactive resource called RetirAbilityCheckSM. This anonymous online experience gives you an easy and fun way to see where you stand in preparing for your retirement. RetirAbilityCheck is for educational purposes only and is not intended as advice. Keep in mind that all investing involves market risk, including the possible loss of principal.

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FINDING MONEY TO INVEST.Possible

additional annual

investment

Spendable annual pay has been reduced by Social Security taxes at an assumed rate of 7.65%. Neither Nationwide®, nor any of its representatives give legal or tax advice. Make sure you consult your legal or tax advisor for such guidance.

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Investment Basics

Please keep in mind that any investment involves risk and there is no

assurance that the investment objective of any fund will be achieved

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CASH EQUIVALENTS, BONDS AND STOCKS.

Stocks Bonds

Cash

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WHAT IS A MUTUAL FUND?

Benefits• Professional management• Lower cost than individual stocks and bonds• Multiple types to build portfolio

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DIVERSIFICATION HELPS, TOO

Diversification does not assure a profit and does not guarantee against loss in a declining market.

Different investments, different risks

Bonds

Cashequivalents Stocks

Lower risk,lower potential return

Higher risk,higher potential return

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1. The three essential types of investments

2. Consider using mutual funds

3. The importance of diversification

Now you understand …

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Investment Personality.

Determine Your

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DO IT FOR ME.

The employer has selected the Registered Investment Adviser providing this service to the plan.

Nationwide takes no position as to either the advisability or the necessity of the case of Registered Investment Advisers. It is the responsibility of the plan’s investment fiduciaries to select this service in accordance with the plan’s established investment criteria. The plan fiduciaries are solely responsible for the selection and monitoring of the Registered Investment Adviser. This service is separate and apart from the actual sale of any Nationwide product which may be used to provide the plan’s underlying investments.

The fee is in addition to any Asset Management Charges associated with each individual investment option and any applicable recordkeeping fees.

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HELP ME DO IT.

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I’LL DO IT MYSELF.

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Do It For Me

Help Me Do It

I’ll Do It Myself

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FIND YOUR PROFILE

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Help Me Do It

I’ll Do It Myself

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FUND PROFILES

• Performance• Holdings• Expenses

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SELF-DIRECTEDBROKERAGE

• Even more investments

• Restrictions and fees

• Minimums and maximums

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1. Your investment personality

2. Your investor profile

Now you understand …

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Any Questions?