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St. Norbert College Retirement Plans – May 2015 1 Although the statements of fact and data in the report have been obtained from sources that the firm believes to be reliable, we do not guarantee the accuracy, and any such information may be incomplete or condensed. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not a guarantee of future results. Becky A. McCormick, CFP ®, CRPS ® First Vice President – Investments Corporate Retirement Director 920-436-5612 800-525-2396 Becky.A.McCormick@msgraystone.com The Martzahl Group at Graystone Consulting 111 N. Washington St Suite 410 Green Bay, WI 54301 (920) 436-5612 St. Norbert College 403(b) Retirement Plans Employee Presentation May 2015 Barry J. Martzahl, CFP ®, CIMA ® Managing Director Institutional Consulting Director 920-436-5605 800-525-2396 Barry.j.martzahl@msgraystone.com
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St. Norbert College Retirement Plans – May 2015 2 Graystone Consulting is a business of Morgan Stanley Graystone Consulting is one of the oldest and largest institutional consulting firms in America Graystone Consulting consists of 45 teams across the U.S. lead by one or more Institutional Consulting Directors with an average of 20-years of experience. Graystone Consulting is committed to: Conflict-free, objective investment advice Open-architecture money management platform Full disclosure and transparency Graystone Consulting is a local resource available to participants to provide asset allocation guidance and retirement planning Graystone Consulting
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St. Norbert College Retirement Plans – May 2015 3 Led by Managing Director, Barry J. Martzahl, CFP®, CIMA®, the Graystone Consulting, Green Bay office is a group of experienced professionals dedicated to meeting the complex needs of institutional clients. BARRY J. MARTLZAHL, CFP®, CIMA® Managing Director Institutional Consulting Director 30 Years of Experience HANS ANDERSON, CIMA® Institutional Consulting Analyst Assistant Vice President 19 Years of Experience BECKY A. MCCORMICK, CFP®, CRPS® Corporate Retirement Director First Vice President – Wealth Management 29 Years of Experience COREY COONEN, CRPS® Financial Advisor 7 Years of Experience THOMAS PEEBLES Institutional Consulting Analyst 2 Years of Experience NANCY LOBERGER Registered Associate 25 Years of Experience Graystone Consulting, Green Bay office
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St. Norbert College Retirement Plans – May 2015 4 The Morgan Stanley Global Investment Managers Analysis team uses a disciplined process to research and evaluate investment managers and strategies. Researches 1,300 investment strategies including 200 alternatives Over 40 analysts with average of 17 years experience including 10 years with the firm Proprietary Active Adverse Alpha model screens strategies for adverse market performance, active share, and tracking error Perform over 300 on-site visits to investment manger offices for in-depth qualitative research Follow on with quarterly questionnaires for ongoing monitoring of change in key personnel and legal and compliance issues Analysts are specialized by asset class including a dedicated stable value analyst Global Investment Manager Analysis
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St. Norbert College Retirement Plans – May 2015 5 Pre-Tax Contributions St. Norbert College Matching Contributions Actively & Passively Managed Funds Target Date Funds Benefits of the Current St. Norbert College Retirement Plans
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St. Norbert College Retirement Plans – May 2015 6 Ability to Contribute Roth (after-tax) Dollars Best in Class Funds from a Variety of Fund Companies Personalized, Conflict Free Investment Advice from Graystone Consulting Enhancements to the St. Norbert College Retirement Plans
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St. Norbert College Retirement Plans – May 2015 7 The St. Norbert College Retirement Plans offer two options saving: Traditional (Contributions are pre-tax) Roth (Contributions are after-tax) An employee may make Traditional or Roth contributions up to the applicable IRS limit. –Matching Plan – One or the other only (Traditional or Roth) –Supplemental Plan – One or the other or a combination of the two Maximum contribution allowed is $18,000 in 2015 (or $24,000 if you are age 50 or older, with completion of “catch-up” form) Additionally, if you have 15 or more years of service with St. Norbert College, you may make a special 403(b) catch-up contribution. NEW Your Contributions
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St. Norbert College Retirement Plans – May 2015 8 Consider a Roth Contribution if you:Roth Contribution Benefits Are not eligible to make Roth IRA contributions because of high income The Roth option does not have adjusted gross income (AGI) limits Would like to make Roth contributions greater than the Roth IRA limit (2015 limit is $5,500 plus catch-up contribution $1,000 for age 50+) Contribution limits are higher than those of the Roth IRA, allowing you to maximize your after-tax retirement savings Feel confident your retirement income needs are met and want to leave a potential tax-free legacy Assets may be passed along to your beneficiaries income tax free Would like to help protect your retirement assets from potential tax consequences Having both pretax and after-tax assets in your retirement accounts allows you to hedge against the uncertainty of future tax rates Are just starting out and in a lower tax bracketBy making after-tax contributions that are based on a lower income, you pay less taxes now. Also, the earlier you start, the more time you give your money to work for you. Roth 403(b)
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St. Norbert College Retirement Plans – May 2015 9 If you SaveSNC Contributes 2% 5% 3% 6% 4% 7% 5% 9% Matching contributions are 100% vested immediately Any employee contributions greater than 5% are invested in the St. Norbert College Supplemental Plan St. Norbert College Matching Plan
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St. Norbert College Retirement Plans – May 2015 10 Path 1: Delegate If you don’t have the time to choose specific Funds or monitor your 403(b) account, then the professionally managed American Funds Retirement Target Date Funds may be right for you. Path 2: Customize If you are comfortable choosing your own investments, monitoring their performance and rebalancing your portfolio, then customization may be right for you. Two Paths to Determine Your Asset Allocation
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St. Norbert College Retirement Plans – May 2015 11 2010 Fund 2025 Fund 2040 Fund 2055 Fund U.S. Equities34.8%54.6%62.7%63.3% International Equities 12.5%19.5%22.9%22.7% U.S. Bonds35.2%14.7%6.4%6.2% International Bonds 5.9%2.2%0.7%0.6% U.S. Inflation- linked Bonds 7.7%3.2%0.8%0.7% Cash3.9%5.8%6.5% Targets as of June 30, 2014; Source: American Funds Designed for employees that prefer to have their account managed for them As illustrated below, each American Funds Target Date Fund’s investment mix is gradually shifted from a greater concentration of equity investments to a higher percentage of bond investments which reduces the risk of your account as your target retirement date approaches American Funds Target Date Funds’ Asset AllocationIllustrative Asset Allocations NEW Path 1: Delegate
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St. Norbert College Retirement Plans – May 2015 12 Targets as of June 30, 2014; Source: American Funds Investment Fund Target Date Fund Lineup Effective July 1, 2015 Path 1: Delegate
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St. Norbert College Retirement Plans – May 2015 13 Designed for employees who are comfortable choosing their own investments Choice of 15 investment funds to set custom asset allocation Actively managed and passively (index) managed investment funds Based on your personal risk tolerance and time horizon You choose when and which investment funds to rebalance Path 2: Customize
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St. Norbert College Retirement Plans – May 2015 14 Step 1: Set your financial goals Step 2: Learn about the types of investments Step 3: Choose your investments Step 4: Make changes as needed Path 2: Customize
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St. Norbert College Retirement Plans – May 2015 15 Investment Fund Lineup Effective July 1, 2015 NEW Bonds Stocks Path 2: Customize
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St. Norbert College Retirement Plans – May 2015 16 Summary of Investment Fund Changes (Special Considerations prior to transfer)
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St. Norbert College Retirement Plans – May 2015 17 Summary of Asset Transfers to New Investment Menu
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St. Norbert College Retirement Plans – May 2015 18 There are certain costs involved in operating the 403(b) plan including: o Plan Recordkeeping (TIAA-CREF) o Investment Consulting & Participant Advisory Services (Graystone Consulting) o Investment Management (Various Funds) PLAN RECORDKEEPING INVESTMENT CONSULTING & PARTICIPANT ADVISORY SERVICES INVESTMENT MANAGEMENT Provider: TIAA-CREF Estimated Annual Fee: 0.15% (may change over time) Services Provided: Plan Website (www.tiaa-cref.org/snc) Call Center Quarterly Statements Additional Administrative Functions Provider: Graystone Consulting Estimated Annual Fee: 0.06% (may change over time) Services Provided: Investment Fund Monitoring Benchmark Plan Fees & Costs On-Site Group Employee Meetings One-on-One Employee Meetings (in-person or on phone) Provider: Various: Estimated Annual Fee: Various by Investment Option (Average 0.72%) Investment management costs are deducted from investment performance; you will not see a deduction from your account balance. Plan Costs Overview
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St. Norbert College Retirement Plans – May 2015 19 How will plan costs be paid? o The investment funds operating expense will generate revenue that will be utilized to offset plan recordkeeping and investment consulting/participant advisory costs. o If the options that you are invested in generate more revenue than is required, you will see a credit on your statement approximately 60 days following the end of a quarter on a pro-rata basis. See example below. Example: TIAA-CREF S&P 500 Index Operating Expense0.31% Revenue Credit(0.25%) Net Expense of Fund0.06% Required Revenue to Offset Plan Costs(0.21%) Revenue Credit0.25% Credit back to plan participants0.04% Plan Costs Overview
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St. Norbert College Retirement Plans – May 2015 20 Our Address: 111 N. Washington St. Green Bay, WI 54301 Your Contacts: Graystone Consulting, Green Bay office
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St. Norbert College Retirement Plans – May 2015 21 Although the statements of fact and data in this report have been obtained from, and are based upon, sources the Firm believes reliable, we do not guarantee their accuracy, and any such information may be incomplete or condensed. All opinions included in this report constitute the Firm’s judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not a guarantee of future results. To the extent the investments depicted herein represent international securities, you should be aware that there may be additional risks associated with international investing involving foreign economic, political, monetary and/or legal factors, changing currency exchange rates, foreign taxes and differences in financial and accounting standards. These risks may be magnified in emerging markets. International investing may not be for everyone. Small capitalization companies may lack the financial resources, product diversification and comparative strengths of larger companies. In addition, the securities of small- capitalization companies may not trade as readily as, and may be subject to higher volatility than, larger, more established companies. High yield bonds are subject to additional risks such as increased risk of default and greater volatility because of the lower credit quality of the issues. Indexes are not available for direct investment. Index returns consist of income and capital appreciation (or depreciation) and do not take into account fees, taxes or other charges. Such fees and charges would reduce performance. © 2015 Morgan Stanley Wealth Management. Member SIPC. Graystone Consulting is a businesses of Morgan Stanley. Disclosures
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