1 Planning for retirement What you need to know Unity House of Cayuga County Not FDIC Insured May...

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Planning for retirement

What you need to know

Unity House of Cayuga County

Not FDIC Insured May Lose Value No Bank Guarantee

FOR NEW ENROLLEES

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Who is Fidelity?

• Industry-leading retirement provider

• Private ownership

• Strength and stability in volatile times

Source: Fidelity Investments Corporate Highlights as of 5/31/2011

Founded in 1946, the firm is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and many other financial products and services to more than 20 million individuals and institutions, as well as through 5,000 financial intermediary firms.

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Agenda

• The importance of saving for retirement

• The benefits of a 401(k) plan

• Maximizing your savings opportunity

• The basics of investing

• Utilizing the resources available

• Review of plan’s investment options

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Why save for retirement?

Planning

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Goal – retirement readiness

Participate in your

401(k) plan

PLANNING

Important take-aways from this meeting

Maximize your

contributions

Maintain appropriate asset

allocation

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Legacy planning

Lifetime retirement planning strategies

Age 30 Age 60 Age 90

PLANNING

Retirement accumulation Retirement income

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Critical steps toward retirement planning

Plan Invest Monitor

• How much will you need for retirement?

• Are you saving enough?

• Are you on track?

• What steps should you consider?

• Do you have the right investment mix?

• What investments may help you get there?

• Is your strategy rightfor your goal?

• Are your savings keeping pace?

• Are your investments on-strategy?

• Have your circumstances changed?

PLANNING

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Sources of retirement income

Source: Social Security Administration, “Income of the population 55 or older using highest quintile $55,889 per year and higher – 2008,” April 2010. This chart is for illustrative purposes only. May not add to 100% due to rounding.

Individuals will be responsible for a higher percentage of their income in retirement

PLANNING

64% from your own sources

Investments

Earned income

Other44%

18% 37% from outside sources

Social Security

Pension

18%

19%

2%

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Five key risksPLANNING

1. Inflation2. Longevity

3. Withdrawal rate4. Asset allocation5. Health care costs

5 major risks retirees face:

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How much will you need for retirement?PLANNING

Consider targeting

of your annual pre-retirement income for each year in retirement

85%

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Estimating your retirement income

Estimated

Salary at retirementIncome for year 1

(85% of salary)Income for 20 years

of retirement*

$20,000 $17,000 $340,000

$30,000 $25,500 $510,000

$40,000 $34,000 $680,000

$50,000 $42,500 $850,000

$60,000 $51,000 $1,020,000

$80,000 $68,000 $1,360,000

$100,000 $85,000 $1,700,000

* These amounts are not adjusted for inflation, other sources of income, and changes in personal financial circumstances. These other factors may significantly impact your retirement income needs.

PLANNING

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Benefits of a 401(k)PLANNING

Tax advantages

Investment choice

Ease and convenience

Disciplined savings

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Maximize your savings opportunity

1. Pretax contributions and any earnings will be taxed at the time of withdrawal at the tax rate in effect at that time. This hypothetical example does not take into account FICA taxes, exemptions, itemized deductions, state and local taxes, and federal taxes other than income tax. The participant’s own tax bracket may be higher or lower, depending on their individual circumstances.2. This is a hypothetical example. Your own federal tax rate may be different. State and local taxes are not included.3. After-tax deductions for federal income taxes and contributions to plan or taxable account.

Pretax contributions may increase take-home pay and lower current taxes

Sallycontributes on a pretax basis to her 401(k) plan

Johncontributes to an after-tax account outside the plan

Monthly pay $3,000 $3,000

Monthly pretax contribution -$300 -$0

Monthly taxable income $2,700 $3,000

Federal income taxes at 25%2 -$675 -$750

Monthly after-tax contribution -$0 -$300

Take-home pay3 $2,025 $1,950

PLANNING

HYPOTHETICAL EXAMPLES:1

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Accelerate your savings

* Employer contributions are subject to your plan provisions. Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.

PLANNING

Start saving early

Contribute as much as you can up to the IRS dollar limit (or your plan's limit if less)

Make catch-up contributions if you are 50 or older

Take advantage of your employer contribution – it’s like getting “free” money*

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$40,000 total invested

The advantages of starting early

This hypothetical is not intended to predict or project investment performance. Your own results will vary. It assumes systematic $4,000 pretax contributions to a tax-deferred retirement plan account made annually on 1/1 for the number of years indicated above and a 7% annual rate of return. No distributions are taken from the plan account during the entire period. Taxes on distribution, and fees and expenses are not taken into account. If account fees and expenses were deducted, performance would be lower. Pretax contributions and any earnings will be taxed at the time of distribution and may also be subject to an early withdrawal penalty if distributed before age 59½. Systematic investing does not ensure a profit and does not protect against loss in a declining market.

Total contributions value*

AGE

Sally John

Hypothetical pretax contribution $4,000 per year from ages 30 to 39 $4,000 per year from ages 40 to 65

Total amount contributed $40,000 $104,000

Total contributions value $343,414 (pretax) after 36 years $293,935 (pretax) after 26 years

$104,000 total invested

Sally

John

30 31 33 36 38 40 43 45 47 49 51 53 55 58 61 63 65 68

$293,935

$343,414

* Assuming a 7% annual rate of return

PLANNING

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Roth 401(k) contributions: Tax-free earnings on investments

* You may incur taxes if the withdrawal is taken less than five tax years after the year of the first Roth 401(k) contribution and if taken before you reach age 59½. A qualified distribution is one made at least five years after the tax year you make a designated Roth contribution to the plan AND is made after you turn 59½, to a beneficiary (or your estate) after you die, or if you are disabled.

Your plan offers a Roth 401(k) option

PLANNING

Traditional 401(k) contributions

• Contributions are made on a pretax basis

• On withdrawal: Entire distribution is taxable

Traditional 401(k) contributions

• Contributions are made on a pretax basis

• On withdrawal: Entire distribution is taxable

Roth 401(k) contributions

• Contributions are made on an after-tax basis

• On withdrawal: Qualified distributions are tax free*

Roth 401(k) contributions

• Contributions are made on an after-tax basis

• On withdrawal: Qualified distributions are tax free*

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Who may benefit from Roth 401(k) contributions?

Individuals who expect to be in a higher tax bracket when they retire

Younger employees with more time till retirement and more time to accumulate tax-free earnings

Highly compensated individuals who are not eligible for a Roth IRA

Employees who may want to leave tax-free money to their beneficiaries

PLANNING

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InvestingIntroducing basic principles

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Investing principlesINVESTING

Monitoring your investments

Creating an asset mix

Managing your investments

Asset classes

Risk

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4.0%

5.4%

7.2%

9.2%

Inflation Short-Term

Investments

Bonds Domestic Stocks

Average Annual Return %1962 – 2011

Data Source: Ibbotson Associates 2012. This chart represents the average annual return percentage for the investment categories shown for the 50-year period of 1962–2011. Past performance is no guarantee of future results. Returns include the reinvestment of dividends and other earnings. This chart is for illustrative purposes only and does not represent actual or implied performance of any investment option. Stocks are represented by the Standard & Poor’s 500 Index (S&P 500®). The S&P 500® a market capitalization–weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance. Bonds are represented by the U.S. Intermediate Government Bond Index, which is an unmanaged index that includes the reinvestment of interest income. Short-term instruments are represented by U.S. Treasury bills, which are backed by the full faith and credit of the U.S. government. Inflation is represented by the Consumer Price Index, (CPI) is a widely recognized measure of inflation, calculated by the U.S. government. Stock prices are more volatile than those of other securities. Government bonds and corporate bonds have more moderate short-term price fluctuation than stocks but provide lower potential long-term returns. U.S. Treasury bills maintain a stable value (if held to maturity), but returns are generally only slightly above the inflation rate. You cannot invest directly in an index.

Keep the long-term trend in mindTime is on Your Side

Investment riskINVESTING

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Inflation riskINVESTING

Even low inflation can damage purchasing power

All numbers were calculated based on hypothetical rates of inflation of 2%, 3%, and 4% (historical average from 1926 to 2010 was 3%) to show the effects of inflation over time; actual inflation rates may be more or less and will vary.

Annual income of $50,000

$0

$10,000

$20,000

$30,000

$40,000

$50,000

Today 5 10 15 20 25

YEARS

2% inflation: $30,477



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Asset classesINVESTING

INFLATION RISK INVESTMENT RISK

Categories on left have potentially more inflation risk and less investment risk

Categories on right have potentially less inflation risk

and more investment risk

ASSET CLASS Short-term investments Bonds Stocks

DEFINITIONMoney market funds, CDs, T-bills

A loan to a company, government, etc.

Ownership in a company

RETURN/RISK POTENTIAL Low Moderate High

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Short-term investmentsINVESTING

An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these funds.

Interest rate increases can cause the price of money market securities to decrease.

Short-term debt instruments – T-bills, CDs, bank notes, money market funds

• Relatively stable value

• Potential to pay interest

• Lower risk, lower potential return

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BondsINVESTING

Debt securities

• Issued by governments and corporations

• Potential to pay interest

• Moderate risk, moderate potential return

In general the bond market is volatile, and fixed-income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed-income securities also carry inflation, credit, and default risks for both issuers and counterparties. (Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible.)

Lower-quality bonds can be more volatile and have greater risk of default than higher-quality bonds. Increases in real interest rates can cause the price of inflation-protected debt securities to decrease.

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Stocks

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions.

INVESTING

• Ownership share

• Long-term growth potential

• Fluctuating value

• Higher risk

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Stocks – capitalizationINVESTING

Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.

The securities of smaller, less well-known companies can be more volatile than those of larger companies.

Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks.

Large Cap

$10 billion and above

Mid Cap

$2 to $10 billion

Small Cap

Less than $2 billion

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Stocks – value vs. growthINVESTING

Value stocks can perform differently than other types of stocks and can continue to be undervalued by the market for long periods of time.

Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.

Growth stocks can perform differently from other types of stocks and the market as a whole and can be more volatile than other types of stocks.

Value Growth• Companies whose earnings

and profits are growing

• Relatively higher share price

• Pay a premium for earnings potential

• Companies undervalued or out of favor

• Buy it “on sale”

• Poised for growth/turnaround story

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Stocks – value vs. growthINVESTING

StyleMap® depictions of mutual fund characteristics produced using data and calculations provided by Morningstar, Inc. StyleMaps estimate characteristics of a fund's equity holdings over two dimensions: market capitalization and valuation.

INVESTMENT STYLEM

AR

KE

T C

AP

ITA

LIZ

AT

ION

Value Blend Growth

Large

Medium

Small

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• Stocks of companies incorporated outside the United States

• Grouped according to: region, country, industry, market sector, economic development

Stocks – internationalINVESTING

Foreign investments, especially those in emerging markets, involve greater risk and may offer greater potential returns than U.S. investments. This risk includes political and economic uncertainties of foreign countries, as well as the risk of currency fluctuation.

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Performance comparison

Growth of $100 in each of three asset classes, 1962–2011

Data Source: Ibbotson Associates, 2012 (1962–2011). Past performance is no guarantee of future results. The asset class (index) returns reflect the reinvestment of dividends and other earnings. This chart is for illustrative purposes only and does not represent actual or future performance of any investment option. It is not possible to invest directly in a market index. Stocks are represented by the Standard and Poor’s 500 Index (S&P 500® Index). The S&P 500® Index is a market capitalization–weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance. Bonds are represented by the U.S. Intermediate Government Bond Index, which is an unmanaged index that includes the reinvestment of interest income. Short-term instruments are represented by U.S. Treasury bills, which are backed by the full faith and credit of the U.S. government. Inflation is represented by the Consumer Price Index, (CPI) is a widely recognized measure of inflation, calculated by the U.S. government. Stock prices are more volatile than those of other securities. Government bonds and corporate bonds have more moderate short-term price fluctuations than stocks but provide lower potential long-term returns. U.S. Treasury bills maintain a stable value (if held to maturity), but returns are only slightly above the inflation rate.

INVESTING

1962 2011$100

Stocks $8,417

Bonds $3,203

Inflation $755

Short-term investments $1,282

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The case for diversificationINVESTING

Diversification does not ensure a profit or guarantee against a loss. Past performance is no guarantee of future results.

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Participants can benefit from the assistance of the plan's advisor and the resources at Fidelity.

Managing your investmentsINVESTING

“Do it myself” “Do it with me” “Do it for me”

Strategies for a variety of investors

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Lifecycle funds

• Diversification may help to mitigate portfolio risk*

The investment risks of each target date (lifecycle) fund changes over time as its asset allocation changes. They are subject to the volatility of the financial markets, including equity and fixed income investments in the U.S. and abroad and may be subject to risks associated with investing in high yield, small cap and foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates

* Diversification does not guarantee against a loss.

• Managed for a specific retirement date

• Ongoing graduated asset allocation

• Automatic rebalancing

• Professional management

INVESTING

Manage it for me

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Fidelity Advisor Freedom Funds®

INVESTING

Fidelity Advisor Freedom Funds offer a blend of stocks, bonds, and short-term investments within a single fund. They are designed for investors expecting to retire around the year indicated in each fund's name.

The Fidelity Advisor Freedom Funds are represented on a separate investment spectrum because each fund (except Fidelity Advisor Freedom Income) will gradually adjust its asset allocation to be more conservative as the fund approaches its target retirement date. Approximately ten to fifteen years after the target date, the asset allocation of each Freedom Fund will match the allocation of the Freedom Income Fund. The spectrum illustrates the relative risk and return of each fund as compared with the other funds in the Freedom family. This spectrum does not represent actual or implied performance. The Advisor Freedom Funds are subject to the risks of their underlying funds, including the volatility of the financial markets in the U.S. and abroad, as well as the additional risks associated with investing in high yield, small-cap, commodity-linked, and foreign securities. Principal invested in the fund is not guaranteed at any time, including at or after each fund's target date. · Strategic Advisers,® Inc., a subsidiary of FMR LLC, manages the Fidelity Advisor Freedom Funds.

Funds to left have potentially more inflation risk and less investment risk

Funds to right have potentially less inflation risk and more investment risk

Fidelity Advisor Freedom 2005

Fund®

Fidelity AdvisorFreedom 2015

Fund®


Fund®


Fund®


Fund®

Fidelity Advisor Freedom Income

Fund®


Fund®


Fund®


Fund®


Fund®


Fund®


Fund®

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1. Underlying funds normally invest in commodity-linked notes and other instruments that may be more volatile and less liquid than the underlying commodities whose performance the fund aims to reflect. 2. Includes developed and emerging market funds. The Fidelity Advisor Freedom Funds are subject to the risks of their underlying funds, including the volatility of the financial markets in the U.S. and abroad, as well as the additional risks associated with investing in high yield, small cap, commodity-linked, and foreign securities. Principal invested in the fund is not guaranteed at any time, including at or after the target date. Fidelity Advisor Freedom Funds are managed by Strategic Advisers, Inc., a subsidiary of FMR LLC.

Fidelity Advisor Freedom Funds® Lifecycle funds for your 401(k) plan

ASSET CLASS

YEARS BEFORE RETIREMENT

AT TARGET

DATE

YEARS IN RETIREMENT

40 30 20 10 10 15+

U.S. Equity Funds 56% 52% 47% 39% 31% 17% 13%

Commodity Funds1 10% 9% 8% 7% 5% 3% 2%

International Equity Funds2 24% 22% 20% 17% 13% 7% 5%

High Yield Bond Funds 10% 9% 8% 7% 5% 5% 5%

Investment-Grade Bond Funds 1% 8% 16% 21% 24% 20% 23%

Treasury Inflation-Protected Security Funds 0% 0% 1% 7% 11% 10% 12%

Short-Term Investment Funds 0% 0% 0% 3% 10% 37% 40%This table illustrates the approximate target asset allocation for Fidelity Advisor Freedom Funds. The table also illustrates how these allocations may change over time. Due to rounding and/or cash balances, asset allocations may not equal 100. Asset allocation percentages are based on long-term strategic weights and may not necessarily align with actual current weights. This table is not intended to represent current or future allocations in any portfolio. The portfolio manager will periodically rebalance the portfolios as market conditions and the funds’ performance weightings change.

Portfolio allocations shift gradually and continually each year.

One fund can help you diversify for retirement

When an employee’s retirement is far off, their fund is more aggressively allocated for growth. Gradually, it reduces exposure to riskier assets.

By 15 years after the target date, the portfolio remains allocated for income, with 80% exposure to fixed-income assets.

MORE AGGRESSIVE LESS AGGRESSIVE

Fidelity Advisor Freedom Funds’ Target Allocation

INVESTING

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Fidelity Advisor Freedom Funds® Risk level drops as you approach retirement

Fidelity Advisor Freedom Funds are designed to provide more growth potential early on and less as you approach and enter retirement

Standard deviation measures the historical volatility of a fund. The greater the standard deviation, the greater the fund’s volatility.Standard & Poor’s 500 Index (S&P 500) is an unmanaged market capitalization-weighted index of 500 widely held U.S. stocks and includes reinvestment of dividends.

3-year standard deviation of Fidelity Advisor Freedom Funds vs. S&P 500® as of 6/30/10

S&P 500

FIDELITY ADVISOR FREEDOM FUNDS

ST

AN

DA

RD

DE

VIA

TIO

N

20

15

10

5

0

25

Risk level drops as investors approach retirement

Higher risk far from retirement

Lower risk near and during retirement

INVESTING

2040 2035 2030 2025 2020 2015 2010 2005 Income2050 20452055

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Creating an asset mix

Manage it myself

Asset allocation Security selection

91.5%

8.5%

“Determinants of Portfolio Performance,” Brinson, Hood, and Beebower, Financial Analysts Journal, July–August 1986, and “Determinants of Performance II: An Update,” Brinson, Singer, and Beebower, Financial Analysts Journal, May–June 1991.

Determinants of portfolio performance

0%

IMP

AC

T O

N V

AR

IAB

ILIT

Y O

F R

ET

UR

NS 100%

80%

60%

40%

20%

INVESTING

of performance can be attributed to security selection and market timing.

of the variability of a portfolio's performance

is determined by asset allocation decisions.

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Diversification

Neither diversification nor asset allocation ensures a profit or guarantees against loss.

INVESTING

Asset allocation

Percentage of

• Stocks

• Bonds

• Short-term investments

Investing in different types of

• Stocks

• Bonds

• Short-term investments

Diversification

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Factors to consider

Characteristics

of each asset

class

INVESTING

Your personal

financial

situation

Number of

years until

you plan on

using the

money

Your attitude

about risk

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Determine a target asset mixINVESTING

Generally, among asset classes, stocks may present more short-term risk and volatility than bonds or short-term instruments but may provide greater potential return over the long term. Although bonds generally present less short-term risk and volatility than stocks, bonds contain interest rate risk (as interest rates rise bond prices usually fall); the risk of issuer default; and inflation risk. Foreign investments, especially those in emerging markets, involve greater risk and may offer greater potential return than U.S. investments. · These target asset mixes are hypothetical models and illustrate certain examples of many combinations of investment allocations that can help an investor pursue his or her goals; these target asset mixes do not constitute investment advice under the Employee Retirement Income Security Act of 1974 (ERISA). You should choose your own investments based on your particular objectives and situation. Remember, you may change how your account is invested. Be sure to review your decisions periodically to make sure they are still consistent with your goals. · Education on investment alternatives and services do not generally constitute investment advice as defined under the Employee Retirement Income Security Act of 1974. · Asset allocation does not ensure a profit or guarantee against loss. For illustrative purposes only.

RISK SPECTRUMDecreasing investment riskand increasing inflation risk

Increasing investment riskand decreasing inflation risk

Balanced

35%40%

10%

15%

49% 25%

15%

Growth

11%

Aggressive Growth

60%

15%

25%

Conservative

14%

50%

30%6%

Domestic Equity

International Equity MM/Short-Term Investments & other assetsBonds

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Investment options in your planINVESTING

Money market Stable value Bond Balance/hybrid

Prime Fund-Daily Money Class

Lord Abbett Short Duration Income

PIMCO Total Return

PIMCO Income

Templeton Global Bond

Invesco Balanced-Risk Allocation

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions.In general, bond prices rise when interest rates fall and vice versa. This effect is usually more pronounced for longer-term securities.An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. This spectrum, with the exception of the Domestic Equity category, is based on Fidelity’s analysis of the characteristics of the general investment categories and not on the actual investment options and their holdings, which can change frequently. Investment options in the Domestic Equity category are based on the options’ Morningstar® categories as of the most recent calendar quarter. Morningstar categories are based on a fund’s style as measured by its underlying portfolio holdings over the past three years and may change at any time. These style calculations do not represent the investment options’ objectives and do not predict the investment options’ future styles. Investment options are listed in alphabetical order within each investment category, and the relative risk of categories may change under certain economic conditions. The spectrum does not represent actual or implied performance.

Conservative investmentsPotentially less investment risk and more inflation risk

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Investment options in your plan (cont.)


U.S. Equity – Moderate investmentsModerate investment risk and moderate inflation risk

Large Value Large Blend Large Growth

JPMorgan Equity Income Invesco S&P IndexMFS Massachusetts Investors Trust

FA New Insights

Mid Value Mid Blend Mid Growth

John Hancock III Disciplined Value Mid Cap

Nuveen Mid Cap Index Janus Enterprise

Small Value Small Blend Small Growth

Fidelity Advisor Small Cap Value PIMCO Small Cap StocksPLUS Total Return

Janus Triton

INVESTING

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Investment options in your plan (cont.)

Non-U.S. equity Specialty Company stock

Fidelity Advisor International Growth


Aggressive investmentsPotentially more investment risk and less inflation risk

INVESTING

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Rebalancing

Portfolio asset allocation can drift over time

Source: Data from Ibbotson®; S&P 500 index for stocks and Barclays Capital U.S. Aggregate Bond Index for bonds. You cannot invest directly in an index.

Bonds

58%

20092004

Bonds

52%Bonds

40%

1999

INVESTING

Stocks

60%

Stocks

48%

Stocks

42%

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Investment review calendarINVESTING

Life Event: Review your overall plan in light of any major life changes, whenever they occur.

Monthly

• Check that the amount you’re saving matches your target savings rate

• Review account statements

Twice a year

• Compare your current asset allocation to your target allocation

• Make any necessary adjustments by redirecting savings inflows to underweighted asset classes or shift money from one asset class to another

Yearly

• Review your overall plan

• Evaluate savings rate and target allocation; adjust as needed

• Review retirement plan beneficiary designations

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Your planMaking the most of it

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Taking advantage of your plan

Eligibility 21 Years of Age, 1 Year of Service, 1000 hours

Entry dates Quarterly – 1/1, 4/1, 7/1, 10/1

Contributions 1-100% – 2013 IRS Limit $17,500

Contribution changes Beginning of Payroll

Catch-up contributions $5,500 age 50 or older

Profit Sharing – Does Unity House contribute?

3% of your gross monthly

Vesting

6 year graded with profit sharing from original date of hire You are always 100% vested when you contribute

YOUR PLAN

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Auto enrollment

• You will be invested in a Fidelity Advisor Freedom Fund that most closely aligns with your retirement date (based on your date of birth), unless you elect otherwise

Assuming an age 65 retirement and/or Automatic Enrollment with AIP.

YOUR PLAN

• It’s already done for you!

• Start now to save as much as you can

• Maximize the amount you contribute

• Your contribution rate is 3% and will increase by 1% each year for the next 4 years unless you elect otherwise

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$254,333

$358,185

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

Person A: Balance without annualincrease in contributions

Person B: Balance with annualincrease in contributions

Annual Increase Program

This is a hypothetical example. Assumptions: Person A and Person B are both 45 years old. Person A contributed 3%/year until age 65. Person B increased contributions 1%/yr for 10 years, then stayed at 13% contributions until age 65. Both earn $40,000 per year and start with an account balance of $50,000. This hypothetical example is based on monthly contributions made at the beginning of the month to a tax-deferred retirement plan and a 7% annual rate of return compounded monthly. Your own plan account may earn more or less than this example, and income taxes will be due when you withdraw from the account. Investing in this manner does not ensure a profit or guarantee against loss in declining markets. Past performance is no guarantee of future results.

YOUR PLAN

Year 0 Year 4 Year 8 Year 12 Year 16 Year 20

How your contribution can grow over time

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Why consolidate?YOUR PLAN

• Keep all of your assets in one place

• Receive fewer statements

• Manage your assets more easily

• Track overall performance more easily

• Maintain asset allocation of choice more easily

Keep in mind that fees may apply when closing and consolidating accounts.

Information provided is general and educational in nature. It is not intended to be, and should not be construed as, legal or tax advice. Fidelity does not provide legal or tax advice. Laws of a specific state or laws relevant to a particular situation may impact the applicability, accuracy, or completeness of this information. Federal and state laws and regulations are complex and are subject to change. Fidelity makes no warranties with regard to the information or results obtained by its use. Fidelity disclaims any liability arising out of your use of, or reliance on, the information. Consult an attorney or tax professional regarding your specific legal or tax situation.

If your plan allows for consolidation of retirement plan assets, you can:

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Plan transition for traditional enrollment

Transition period begins: [date]

Fidelity effective date: [date]

Transition period ends: [date]

You will receive your Welcome Guide signaling that you can access your account virtually any time you want.

[date]

Retirement Benefits Line (800-294-4015) and Fidelity NetBenefits® (netbenefits.com) become available for active plan participants.

[date]

TRANSITION

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EnrollingGetting started

53

Eligible employees

It’s easy to enroll in your plan:

¿Habla español? Para empezar, llame a nuestros representantes dedicados que hablan español a la línea de Beneficios para la Jubilación de Fidelity (Fidelity Retirement Benefits Line) al 800-587-5282.

Enroll online at NetBenefits.com

ENROLLING

Enter your beneficiary information in the Your Profile section of netbenefits.com

Enroll by phone – call the Retirement Benefits Line at 800-294-4015

54

Eligible employeesENROLLING

It’s easy to enroll in your plan:

1 Complete enrollment online

2 Complete your beneficiary online

56

ResourcesWe’re here to help

57

We are here to help

[Broker firm] and Fidelity Investments are independent entities.

RESOURCES

Jim Josephson, CRPS

UBS Financial Services, Inc.

315.473.7127

[email protected]

http://www.ubs.com/fa/jamesjosephson

58

NetBenefitsRESOURCES

For illustrative purposes only.

www.netbenefits.com

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Retirement Quick Check tool

The tool’s illustrations result from running a minimum of 250 hypothetical market simulations. The market return data used to generate the illustration is intended to provide you with a general idea of how asset mixes have performed historically. Our analysis assumes a level of diversity within each asset class consistent with a market index benchmark that may differ from the diversity of your own portfolio. Please note that the projections do not reflect the impact of any transaction costs or management and servicing fees; if these had been included, the projected account balances would have been lower.IMPORTANT: The projections or other information generated by the Retirement Quick Check tool 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.

Tool includes:• Hypothetical illustration of personal income

needs at retirement

• Retirement savings scenarios illustrating the potential impact of taking action such as:

Screenshots for illustrative purposes only.

– Increasing contributions

– Adjusting asset allocation

– Delaying retirement

RESOURCES

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Are you on target to reach your goals?


RESOURCES

Quickly assess your portfolio and investing strategies to ensure you're on target.

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Monitoring your total finances


RESOURCES

Use Full View® to see all your finances in one place – including investment, bank and credit card accounts.

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Next steps

Social Security will probably not provide sufficient retirement income, and you may need income to last 20, 30, or more years in retirement.

• Participate in your company’s 401(k) plan

• Develop an asset allocation strategy

• Review your investments

• Consider consolidating your assets

• Take advantage of Fidelity’s resources

Here are steps you can take now to take charge of your retirement readiness.

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Next stepsRESOURCES

¿Habla español? Para empezar, llame a nuestros representantes dedicados que hablan español a la línea de Beneficios para la Jubilación de Fidelity (Fidelity Retirement Benefits Line) al 800-587-5282.

Retirement Benefits LineParticipant phone representatives available 8:30 a.m. to 8:30 p.m. ET any day the New York Stock Exchange is open. Our representatives are conversant in over 170 languages.

Voice Recognition SystemAvailable virtually 24/7

www.netbenefits.com

800-294-4015

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Important information

The information provided is general in nature. It is not intended to be, and should not be construed as, legal or tax advice. Fidelity does not provide legal or tax advice. Consult an attorney or tax advisor regarding your specific legal or tax situation.Remember, investing involves risk. The value of investments will fluctuate over time and you may gain or lose money.

Unless otherwise noted, transaction requests confirmed after the close of the market, normally 4 p.m. Eastern time, or on weekends or holidays, will receive the next available closing prices.

Exchanges between some funds may be subject to restrictions.

Fidelity Management & Research Company manages Fidelity Advisor mutual funds. [The Fidelity Advisor Freedom Funds are managed by Strategic Advisers, Inc., a Fidelity Investments company.]

Retirement Checkup and Retirement Quick Check educational tools are developed and offered for use by Strategic Advisers, Inc., a registered investment advisor and a Fidelity Investments company.

Not NCUA or NCUSIF insured. May lose value. No credit union guarantee.

Third-party trademarks and service marks are the property of their respective owners. All other trademarks and service marks are the property of FMR LLC or an affiliated company. © 2010 FMR LLC. All rights reserved.

Before investing, consider the funds’ investment objectives, risks, charges, and expenses. For a prospectus, or a summary prospectus if available, containing this information, contact your investment professional or visit www.netbenefits.com. Read it carefully before you make your investment choices.431463.11.0 1.771073.114

0912Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

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