Maximizing Your Retirement Benefits

[Pages:9]Maximizing Your Retirement Benefits

The Schamber Group, Inc.

Duneland School Corporation

Spring 2019

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Your Retirement Pieces:

? Social Security ? PERF/TRF ? Defined Benefit (Pension) ? PERF/TRF ? Defined Contribution (formerly called Annuity

Savings Account ? ASA) ? Voluntary Group Plans:

? Duneland: 403(b), Roth 403(b), 457(b), Roth 457(b) ? Other types of voluntary group plans: 401(k), Roth 401(k) ? Negotiated Benefit: 401(a), VEBA ? Personal Retirement Savings: IRA, Roth IRA, HSA ? Other Personal Savings

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Why does Duneland have 403(b) and 457(b)?

? Additional savings opportunity! ? 457(b)

? No 10% penalty if withdrawn directly from 457(b) account, after terminating employment

? 403(b) ? Age 55 Rule: No additional 10% Federal tax penalty if withdrawn directly from 403(b) account and terminating employment during or after the year that you turn age 55

? Greater planning opportunities

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Duneland's Retirement Plan Providers:

? Current 403(b)

? Aspire/TD Ameritrade/Schamber Group/TSA Consulting Group ? Fidelity/TSA Consulting Group

(not included with Schamber Group Services)

? Current 457(b) provider

? Aspire/TD Ameritrade/Schamber Group/TSA Consulting Group

? 401(a) vendors

? MetLife (buyout), VOYA (current)

? VEBA vendor

? Security Benefit

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Duneland's Prior 403(b) Vendor Companies:

VOYA (ING) VALIC Hartford - Franklin Life Ameriprise American Funds Lincoln National Life Nationwide Financial Fidelity Investments Metropolitan Life AXA EQUITABLE

AIG SunAmerica Life Insurance Company Of The Southwest Franklin Templeton Investment Thrivent Financial for Lutherans American United Life Insurance (AUL) Northwestern Mutual Life Security Benefit PEFCU CUNA Mutual Life Insurance Co. Prudential Protective Life Ins Co

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Retirement Benefit:

? Lifetime Income ? PERF/TRF - Pension ? Social Security

? Assets ? PERF/TRF ? Defined Contribution (ASA) ? 403(b), Roth 403(b), 457(b), Roth 457(b) ? IRA, Roth IRA, HSA ? 401(a), VEBA ? Other Personal Savings

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What Can I Control?:

? Limited control ? investment selection only: ? PERF/TRF ? Defined Contribution (ASA) = 3% of gross wages, mandatory ? Negotiated Benefit: 401(a), VEBA

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What Can I Control?:

? Limited Control ? monthly income: ? PERF/TRF ? pension payout vs survivor benefits

? Smaller survivor benefits = larger monthly income today ? If one spouse dies ? can the other spouse survive on remaining

income? ? Social Security ? Start date (age 62+)

? Consider the long-term effects! ? Surviving spouse keeps the larger Social Security income ? not

both!

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What Can I Control?:

? Complete Control ? amount & investment selection: ? PERF/TRF ? additional ASA ? Contribution increases only ? May not be able to decrease additional ASA amount! ? Voluntary Group Plan: 403(b), Roth 403(b), 457(b), Roth 457(b) ? Personal Retirement Savings: IRA, Roth IRA, HSA ? Other Personal Savings

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What Can I Control?:

? Complete Control ? monthly income: ? PERF/TRF ? Defined Contribution (ASA) ? Roll to IRA, or other pre-tax retirement account ? Annuitize with INPRS selected provider ? Voluntary Group Plan: 403(b), Roth 403(b), 457(b), Roth 457(b) ? Personal Retirement Savings: IRA, Roth IRA, HSA ? Other Personal Savings

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What Can I Control?:

? Complete Control ? Tax Treatment: ? Voluntary Group Plan: 403(b) vs 457(b) pre-tax vs Roth ? Personal Retirement Savings: IRA vs Roth IRA IRA vs HSA ? Other Personal Savings

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Am I Saving Enough?:

? Determine Retirement Income Need: ? What will change when you retire? ? More travel? ? More time for hobbies? ? Less eating out? ? Less mileage/dry cleaning.....? ? Medical expenses? ? Income Replacement Goal ? Needed income vs Wanted income ? Create a "Floor" income level ? Income Sources ? Social Security/Pension ? Assets

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How Do I Make All This Work For Me?:

? Are you controlling what you can? ? Estimate your current tax bracket

(see 2019 Annual Limits handout) ? Use pre-tax 403(b), 457(b) and HSA contributions to reduce

current taxable income ? IRA ? tax deductibility depends on AGI ? Roth IRA ? ability to contribute depends on AGI ? Maximize after tax savings within current tax bracket ? Roth 403(b) & Roth 457(b) ? Roth IRA ? Roth 403(b) & Roth IRA conversions ? Other Personal Savings

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How Do I Make All This Work For Me?:

? Are you controlling what you can? ? Maximize your contributions ? 2019

? 403(b) = $19,000 (+ $6,000 if age 50+) ? 457(b) = $19,000 (+ $6,000 if age 50+) ? IRA = $6,000 (+ $1,000 if age 50+) ? HSA = $3,500 single, $7,000 family (+ $1,000 if age 55+, each spouse)

? Select your investments ? Control account & investment costs

(consolidating prior employer plans, prior vendor accounts, IRA) ? Reduce debt (credit cards!) ? Have a plan!!

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Now some info on your Aspire 403(b) Retirement Savings Plan 457(b) Deferred Compensation Plan

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Basic Service Provider Functions: Bundled system

Recordkeeper

Custodian

Compliance Administration

Vendor Representative Financial Advisor

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Your 403(b) & 457(b) System: Unbundled Service Providers

Record Keeper Aspire

Custodian TD Ameritrade

Plan Administrator TSA Consulting Group

Financial Advisor & Participant Services

Schamber Group

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Your 403(b) & 457(b) System: Transparent Costs

Aspire

403(b) = $35/year 457(b) = $40/year + 0.08%/year (8 bps/year)

TD Ameritrade

403(b) = 0.04% (4 bps)/year 457(b) = 0.03% (3 bps)/year

TSA Consulting Group

403(b) ~ 0.20% (20 bps)/year 457(b) = $24/year

Schamber Group

0.27% (27 bps)/year 0.30% (30 bps)/year

Note: 100 bps = 1.00%

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Fidelity 403(b)

? Contact (800) 343-0860 ? Plan Number 72213

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The Schamber Group, Inc.

Registered Investment Advisor ? Plan Advisor ? Participant Support ? Risk-Based Portfolio Models ? Primary Participant Contact We are the name you see on your statement CONTACT US FIRST!

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One exception....

For help accessing your Aspire account

Participant Service Desk 866-634-5873 option 2 Mon ? Fri, 8a ? 8p EST

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Duneland 403(b), 457(b) Plan Provisions

? Initial Deferral Election*: ? Deferral Changes:

Paper only $ per pay

Online or Paper

? Contribution Changes:

Each Pay Cycle

? In-Service Distributions:

Yes

Over age 59 ?

? Hardship Distributions:

Yes

? Loans:

Yes

*457(b) deferrals start the month following enrollment 403(b) deferrals start with next payroll cycle

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3 Investment Systems

Do-It-With-Me 5 Risk-Based Portfolio Models (403(b) only)

Do-It-For-Me Vanguard Target Date Series More conservative as you get closer to retirement

Do-It-Yourself Choose your own combination of funds Institutional Mutual Funds Prudential Guaranteed Income Fund (GIF) ? 403(b) TD Ameritrade Money Market ? 457(b)

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Fun & Helpful Information

? Find information on financial advisors BrokerCheck. adviserinfo.

? Find a Certified Financial Planner

? Indiana Public Retirement System (PERF/TRF) INPRS

? Social Security

? Internal Revenue Service

? Life Span Calculator

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