GET STARTED AND SAVE FOR THE FUTURE YOU · GET STARTED. AND SAVE FOR THE FUTURE YOU. Workplace...

GET STARTEDAND SAVE FOR THE FUTURE YOU

Workplace Education Series

AGENDA

ENROLLING CONTRIBUTING NEXT STEPS

• Why save in your workplace plan?

• How to choose investments?

• How much should you save?

• How do I reach my goal?

• How can Fidelity help?

ENROLLING

WHY SAVE INYOUR WORKPLACE PLAN?

ENROLLING Why save in your workplace plan?

Your workplace savings plan is hard to beat

1 2 3 4Ease and

convenienceInvestment

choicesSalary deferrals (including tax

deferrals and/or Roth deferrals)

Compounded growth

potential

Participant contribution

Participant contribution with benefit of tax-deferred growth

This hypothetical example assumes a beginning plan account balance of $0; pre-tax contributions of $125.00 every month beginning at the age shown above until age 65 and an effective annual rate of return of 7%. The ending values do not reflect taxes, fees or inflation. If they did, amounts would be lower. Earnings and pre-tax contributions are subject to taxes when withdrawn. Distributions before age 59 1/2 may also be subject to a 10% penalty. Contribution amounts are subject to IRS and Plan limits. This example is for illustrative purposes only and does not represent the performance of any security. Individuals may earn more or less than this example. Investing on a regular basis does not ensure a profit or guarantee against a loss in a declining market.

ENROLLING Why save in your workplace plan?

How your money can grow

$66,000

$414,160

$60,000

$310,690

$45,000

$147,008

$30,000

$63,801

$15,000

$21,502

Age 21 Age 25 Age 35 Age 45 Age 55

Potential account balance at age 65 if participant invested $125/month starting at various ages:

Duke Faculty and Staff Retirement Plan Details

This workshop only provides a summary of the main features of the Plan, and the Plan document will govern in the event of any discrepancies.

Enrollment

TWO STEP PROCESS FOR ENROLLMENTOnce you know how much and where you plan to contribute, it is a simple two-step process to enroll.1.Set up your payroll deduction as either pre-tax, Roth after-tax, or a combination of both and designate your investment carrier(s).• Enroll Online: Duke@Work • Paper form (download the retirement contribution form PDF or pick up a form at Human

Resources) . Send the form to the Human Resources office by mail or fax:Duke Benefits, 705 Broad Street, Box 90502, Durham, NC 27708Fax: (919) 681-8774Phone: (919) 684-5600

2.Register with Fidelity to select your investment options and designate your beneficiary(ies) at Fidelity.com/duke or (800) 343-0860. Review the Investment Performance and Fee Disclosure Summary information before making your investment selections.

Plan Features

Contributions

Employee ContributionsIRS Limit2019 $19,000

Catch-up limit2019 $6,000(additional $3,000 if >15 years of service)

Through automatic payroll deduction, you may contribute between 1% and 80% of salary per pay period on a pretax basis, Roth after-tax basis, or a combination of both up to the annual IRS dollar limits.If you make the maximum contribution to your plan account, and you are 50 years of age or older during the calendar year, you can also make an additional “catch-up” contribution. If you have more than 15 years of service at Duke, you may be eligible to contribute up to an additional $3,000. The limit reflects your total 403(b) contributions, whether pre-tax, Roth after-tax or a combination. Please contact the benefits office at (919) 684-5600 to find out if you qualify for this additional catch up provision.

This workshop only provides a summary of the main features of the Plan, and the Plan document will govern in the event of any discrepancies.

Plan Features

Plan Features

Vesting

Employee Contributions 100% immediate

Years of Service Vesting Percentageless than 3 0%3 or more 100%

Loans

Although your plan account is intended for the future, you may borrow from your account for any reason.The minimum loan amount is $1,000, and a loan must not exceed $50,000. Any outstanding loan balances from the previous 12 months may reduce the amount you have available to borrow. You then pay the money back into your account, plus interest, through ACH deductions from your bank account.You may have one loan outstanding at a time. The cost to initiate a loan is $50, and there is a quarterly maintenance fee of $6.25. The initiation and maintenance fees are deducted directly from your plan account. You may take a home loan or a general loan. You may have only one loan outstanding for either type.Note: If you fail to repay your loan (based on the original terms of the loan), it will be considered in "default" and treated as a distribution, making it subject to income tax and possibly to a 10% early withdrawal tax penalty. Defaulted loans may also impact your eligibility to request additional loans.To initiate or inquire about a loan, call a Fidelity Representative at (800) 343-0860.

WithdrawalsWithdrawals from the Plan are generally permitted when you terminate your employment, retire, reach age 59½, become permanently disabled, or have severe financial hardship as defined by your Plan. To request a withdrawal, call a Fidelity Representative at (800) 343-0860.

Fund NameVanguard Institutional Target Retirement Income Fund Institutional Shares

Vanguard Institutional Target Retirement 2015 Fund Institutional Shares











The target date investments are designed for investors expecting to retire around the year indicated in each fund’s name. The investments are managed to gradually become more conservative over time as they approach the target date. The investment risk of each target date investment changes over time as its asset allocation changes. The investments are subject to the volatility of the financial markets, including that of 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 the target dates.

Tier 1 Target Date Funds

Asset Class FundMoney Market Vanguard Federal Money Market InvestorStable Value TIAA Traditional Fixed Annuity

VALIC Fixed Interest OptionIntermediate-Term Bond

Vanguard Total Bond Market Index IMetropolitan West Total Return Bd Plan

Multisector Bond PIMCO Income InstlLarge Value MFS® Value R6

Vanguard Equity-Income AdmLarge Blend Vanguard Institutional Index Instl Pl

Vanguard FTSE Social Index InvLarge Growth Vanguard PRIMECAP Adm

Fidelity® Contrafund® K6T. Rowe Price Growth Stock I

Mid-Cap Value American Century Mid Cap Value R6MFS® Mid Cap Value R6Fidelity® Low-Priced Stock K6

Asset Class Fund

Mid-Cap Blend Vanguard Extended Market Index InstlMid-Cap Growth MassMutual Select Mid Cap Growth ISmall Value Fidelity® Small Cap ValueSmall Blend Goldman Sachs Small Cap Value R6Small Growth Janus Henderson Triton N

Fidelity® Small Cap Growth K6Foreign Small/Mid Blend Fidelity® International Small Cap

Foreign Large Blend Vanguard Total Intl Stock Index IDiversified Emerging Mkts Vanguard Emerging Mkts Stock Idx Instl

Foreign Large GrowthAmerican Funds Europacific Growth R6Vanguard International Growth Adm

Real Estate Vanguard REIT Index Institutional

Tier 2: Core Funds at FidelityConsists of funds from the primary asset classes (stocks, bonds, and short-term instruments) for a diversified portfolio.

These funds will be monitored by Duke’s Investment Advisory Committee.

Fidelity BrokerageLink®

Self-directed Account

Flexibility of a Brokerage Account

Expanded Investment

Options

• Additional fees apply to a brokerage account; please refer to the fact sheet and commission schedule for a complete listing of brokerage fees.

• The plan fiduciary neither evaluates nor monitors the investments available through BrokerageLink®.

• Remember, it is always your responsibility to ensure that the options you select are consistent with your particular situation, including your goals, time horizon, and risk tolerance.

BrokerageLink includes investments beyond those in your plan’s lineup. You should compare investments and share classes that are available in your plan’s lineup with those available through BrokerageLink, and determine the available share class that is appropriate for your situation. The plan fiduciary neither evaluates nor monitors the investments available through BrokerageLink. It is your responsibility to ensure that the investments you select are suitable for your situation, including your goals, time horizon, and risk tolerance.

ENROLLING

HOW TOCHOOSE INVESTMENTS?

ENROLLING How to choose investments?

What you should consider

Professional investment help

Do it myself

or

Choosing investments

Time Confidence


An approach for every type of investor

• Let us guide you

Do it myself Professional investment help

• Single-fund solution

or

Target Date Funds are an asset mix of stocks, bonds and other investments that automatically becomes more conservative as the fund approaches its target retirement date and beyond. Principal invested is not guaranteed.


An approach for every type of investor

Access Fidelity’s research, resources, and tools to build your own portfolio

Monitor and adjust your investment strategy as you see fit

Do it myself

• Let us guide you

CONTRIBUTING

HOW MUCHSHOULD YOU SAVE?

Live longer, retire earlier

Fewer workers count on pension

Social Security uncertain

CONTRIBUTING How much should you save?

Retirement today

How much should you save?

15%Maximize contributions

Catch-up contributions

Ease of payroll deduction

How much should you save?CONTRIBUTING

CONTRIBUTING How much should you save?

Screenshot is for illustrative purposes.*Approximation based on a 1%, 3%, or 5% increase in contribution. Continued employment from current age to retirement age, 67. We assume you are exactly your current age (in whole number of years) and will retire on your birthday at your retirement age. Number of years of savings equals retirement age minus current age. Nominal investment growth rate is assumed to be 5.5%. Hypothetical nominal salary growth rate is assumed to be 4% (2.5% inflation + 1.5% real salary growth rate). All accumulated retirement savings amounts are shown in future (nominal) dollars. Your own plan account may earn more or less than this example and income taxes will be due when you withdraw from your account. Investing in this manner does not ensure a profit or guarantee against a loss in declining markets.

CONTRIBUTING

HOW DO IREACH MY GOAL?

Calculators

How do I reach my goal?

Screenshots are for illustrative purposes only.

CONTRIBUTING

NEXT STEPS

HOW CANFIDELITY HELP?

Make saving a priority

NEXT STEPS

Enroll in your plan

Set your saving contribution rate

Choose your investments

How can Fidelity help?

Put it into action

NEXT STEPS How can Fidelity help?

Download the NetBenefits® Mobile App

Check out additional resources on NetBenefits®

Contact a Fidelity Representative

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App Store is a service mark of Apple Inc. Android and Google Play are trademarks of Google Inc.

How to balance your financial needs today with saving for tomorrow

NEXT STEPS

1 2

Attend an on-demand workshop

Visit NetBenefits

How can Fidelity help?

Screenshots are for illustrative purposes only.

We will work 1-on-1 with you to provide:

How can Fidelity help?NEXT STEPS

Plan information

Investment education

Next steps

Call 800-343-0860 or 800-603-4015 for a consultation today!

Optional text: Para hablar con un representante hispanohablante, llame al 800-587-5282

[Include offering legend if including investment options in presentation]Before investing in any mutual fund, consider the investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

This information is intended to be educational and is not tailored to the investment needs of any specific investor.

Investing involves risk, including risk of loss.

[Include stock market and bond market disclosures if inserting investment spectrum ]Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Investing in stock involves risks, including the loss of principal.

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 risk, liquidity risk, call risk and credit and default risks for both issuers and counterparties. Lower-quality fixed income securities involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Foreign investments involve greater risks than U.S. investments, and can decline significantly in response to adverse issuer, political, regulatory, market, and economic risks. Any fixed-income security sold or redeemed prior to maturity may be subject to loss.

Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.

Fidelity® Personalized Planning & Advice at Work is a service of Fidelity Personal and Workplace Advisors LLC and Strategic Advisers LLC. Both are registered investment advisers, are Fidelity Investments companies, and may be referred to as “Fidelity,” “we,” or “our” within. For more information, refer to the Terms and Conditions of the Program. When used herein, Fidelity Personalized Planning & Advice refers exclusively to Fidelity Personalized Planning & Advice at Work. This service provides advisory services for a fee.

System availability and response times may be subject to market conditions.] The third party trademarks appearing herein are the property of their respective owners.

© 2017 – 2018 FMR LLC. All rights reserved. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

716268.49.21

GET STARTED AND SAVE FOR THE FUTURE YOU · GET STARTED. AND SAVE FOR THE FUTURE YOU. Workplace...

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Transcript of GET STARTED AND SAVE FOR THE FUTURE YOU · GET STARTED. AND SAVE FOR THE FUTURE YOU. Workplace...