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The LSU EZ-Enrollment Retirement Program

The LSU EZ-Enrollment Retirement Program. Mark Tusa, Regional Manager, ING Financial Advisers Mike Sotile, Lead LSU ING Representative Linda Alumbaugh, ING Representative Colette Riha, ING Representative. Why Save for Retirement?. Because you want to live as well as you can during your

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The LSU EZ-Enrollment Retirement Program

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  1. The LSU EZ-Enrollment Retirement Program Mark Tusa, Regional Manager, ING Financial Advisers Mike Sotile, Lead LSU ING Representative Linda Alumbaugh, ING Representative Colette Riha, ING Representative

  2. Why Save for Retirement? • Because you want to live as well as you can during your retirement. • Because your pension and Social Security benefits may not be enough to replace your current income in retirement.

  3. You may need to live without a paycheck as long as you lived withone. Today’s healthy 65-year old will likely live 20-30 more years. 50% of males age 65will live past age 80. 50% of females age 65will live past age 84. Based on current Annuity 2000 Mortality Table assuming relatively good health (2005)

  4. Tax Deferral and the LSU EZ-Enrollment Retirement Program: Saving through the LSU EZ-Enrollment Retirement Program – a 403(b) program - allows you to: • Set aside money for retirement on a pre-tax basis. • Save through payroll deduction. • Lower your current income taxes and/or receive possible tax credit.

  5. Saving under a 403(b) Program The LSU EZ-Enrollment Retirement Program allows pre-tax contributions, which can turn $70 into $100. Out of every $100 you make, OR you can put $100 into your plan, AND your $100 can grow tax-deferred, building your nest egg faster! you can let the government take $30 in taxes and save $70… Assumes state and federal income taxes of 30%.

  6. How Does Your EZ Plan Work • Assumptions • Salary - $1,000.00 Monthly • Saving – $100.00 • Tax Bracket – 20% (Federal and State) • Traditional: Salary / Tax / After Tax / Savings / Take Home $1000 $200 $800 $100 $700 EZ Plan Salary / Savings / TI / Tax / Take Home $1000 $100 $900 $180 $720

  7. Larry starts saving $300 a month at age 45 Susan starts saving $100a month at age 25 $324,180 + $152,382 20 years of saving 40 years of saving $171,798 $72,000 $48,000 Total Contributions Total Savings at 65 The sooner you start, the sooner you reach your goals. Assumes each accounts earns an annual tax-deferred rate of return of 8.00% and is for demonstration purposes only. Not based on the rate of return or the incurred costs of any particular investment. The effects of fees and charges would reduce the numbers shown. Not intended to serve as financial advice or as a primary basis for your investment decisions. Taxes are generally due upon withdrawal. Dollar cost averaging does not ensure a profit nor guarantee against loss. Investors should consider their financial ability to continue their purchases through periods of low price levels.

  8. Saver’s Tax Credit Individuals who contribute to an Employer Retirement Plan or to an IRA may qualify for a Saver’s Tax Credit. This credit is equal to the following: 50% of Contribution • Married Filing Jointly (0-$30,000) • Head of Household (0-$22,500) • All Other Filers (0-$15,000) 20% of Contribution • Married Filing Jointly ($30,001-$32,500) • Head of Household ($22,501-$24,375) • All Other Filers ($15,001-$16,250) 10% of Contribution • Married Filing Jointly ($32,501-$50,000) • Head of Household ($24,376-$37,500) • All Other Filers ($16,251-$25,000) Remind your tax preparer that you could qualify for a Tax Credit Neither ING nor its representatives offer tax or legal advice. The taxpayer should seek advice from an independent tax advisor.

  9. What happens if I’m Not Happy with The EZ Enrollment Plan? • You can move your money to any qualified retirement plan offered by the LSU System. • There is NO Deferred Sales Charge • Participants can move your money at any time. • Participants may be assessed an early withdrawal penalty if distributions are taken prior to age 59 ½ and no exemption applies. • Contributions made on a pre-tax basis (as well as earnings on those contributions) are subject to federal tax when withdrawn

  10. Key Stocks Bonds Stability of Principal Simplification - Easy Investment Options Target-Date Lifecycle Funds Sophisticated Asset Allocation Techniques Made Simple ING Solution 2045 Portfolio ING Solution 2035 Portfolio ING Solution 2025 Portfolio ING Solution 2015 Portfolio ING Solution Income Portfolio Asset Allocation Mix Years to Goal

  11. ING Solution Portfolios • A portfolio is chosen based on your goal retirement year and risk tolerance, and ING’s professional investment managers do the rest. • Professional fund managers can be more aggressive for those with a longer time horizon and are more conservative with those with a shorter time horizon. • Over time, the asset allocations within each Portfolio become more conservative as the participant moves closer to the time they may want to withdraw the assets to help fund their retirement.

  12. Local Service and Commitment • ING provides a committed local service team • Team of experienced and credentialed representatives with on-site experience • One-on-one and group education meetings • Variety of financial and retirement planning seminars • Focus on customer relationships • Annual Reviews, Review of Statements, and Seminars for Specific Departments

  13. Personalized Solutions • Internet Access • Toll-Free Access • Enrollments • Investment option changes • Interactive calculators • Asset allocation guidance Information and transaction capabilities via toll-free line orInternet • Quarterly Statements and newsletters • On-line statements • Account information and activity • Education library • Investment information including one pagers and performance LOCAL REPRESENTATIVES = PERSONAL TOUCH!

  14. How to get started • It’s as EZ as handing the EZ Enrollment Form to someone at the meeting today. • You can also hand in the EZ Enrollment Form to the Human Resource Department. • Your ING Representative will do the rest. • An ING agent we make sure you understand the plan and the benefits of saving for retirement through the LSU EZ Enrollment plan.

  15. OUR LOCAL AGENTS • Mike Sotile • Linda Alumbaugh • Colette Riha

  16. Important Information You should consider the investment objectives, risks, charges, and expenses of the variable product and its underlying fund options; or mutual funds offered through a retirement plan, carefully before investing. The prospectuses/prospectus summaries/information booklets contain this and other information, and can be obtained by contacting your local representative. Please read the information carefully before investing. The Internal Revenue Code generally prohibits withdrawals of any contributions and attributable earnings prior to death, disability, age 59 1/2, severance of employment, or financial hardship. (The amount available for hardship is limited to the lesser of the amount necessary to relieve the hardship, or the account value as of 12/31/1988 plus the amount of any salary reduction contributions made after 12/31/1988 (exclusive of any earnings.)

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