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TRUST. CHOICE. ACCESSIBILITY.
403(b) Retirement Plan
Road To Retirement
F ree Money
L ife Models
O pportunity
R OTH
I t’s the Little Things
D iversification
A ccessibility
T ax Deferred
E arly Planning
C hoice
H uman Touch
Where do you want to go?
Retirement plan distribution options
Presenter Name: Richard PhelanLincoln Financial Consultant
Imagine your futureself
You ?
Change happens
Did you know?
The average American holds 10.5 jobs between ages 18 and 40
Source: U.S. Bureau of Labor Statistics, August 2006.
Age 18 Age 40
All aboard for Retirement Harbor!
How long are you going to live?
Bottom line: You may be retired for decades.
Source: “Retirement Roulette,” Registered Representative report on a study by the Employee Benefit Research Institute, July 2006.
Chance of livingbeyond the age of...
Chance of livingbeyond the age of...
At least one personhas a chance of livingbeyond the age of...
Male 85 92
Female 88 94
Couple 92 97
50% 25%
50% 25%
25%50%
Agenda
You are here
Know your options
Who’s riding shotgun?
You are here
What kind of withdrawal options wouldyou like to have?
What kind of access do you want tohave to your money?
Do you want a lifetime income stream?
Do you want guarantee options?
Are you interested in avoiding fees?
Enjoy a favorite trip
You’re content with the plan you have
You like its investment managers
You like the withdrawals options
It is easy to access your money
Your plan provider will help you meetRMD regulations
Take income from your current investments
Enjoy a favorite trip
You’re familiar with the plan and what it offers
You don’t need anything more
You probably won’t incur new fees
Opportunities for lifetime incomeTake income from your current investments
Enjoy a favorite trip Inactive or retiree accounts may
have limitations
Investment options limited
Withdrawals and distributions subject toplan provisions
Former employer may be sold orchange the plan
Take income from your current investments
Enjoy a new adventure
You want to explore your options
You are interested in having more control over your investment choices
You need flexible access to your money
You are concerned about outliving your retirement assets
You want to protect your assetsfrom market volatility
Roll your money over to an IRA
Enjoy a new adventure
Variety of investment choices
Simplified income planning
Access to your money
Continued tax-deferred growthRoll your money over to an IRA
Enjoy a new adventure
New fees, charges, and surrender periodmay apply
Early withdrawals may be subject to10% IRS penalty
Roll your money over to an IRA
Plan your own route
Lifetime income options with guaranteed minimum monthly payments
Guarantee options to protect your principal, earnings, and income
Death benefit protection options
Diverse fund lineups fromhighly respected investmentmanagement companies
Guarantees are backed by the claims-paying ability of the issuing insurance company.
An annuity for an IRA?
Detour!Take the cash
You want or need the money now
You are willing to pay the taxes and penalties
You have other sources of retirement income
State income taxes10% early
withdrawal penaltyif under age 59½
20% or $10,000IRS withholding
After taxesand penalties.
Before taxesand penalties
Detour!Take the cash
Additional taxes
*Not to be construed as tax or legal advice.For illustration purposes only—does not represent any particular investment.
Detour!Take the cash
You’ll have immediate access towhat’s left of your money
Lose as much as half in taxes and penalties
Lose benefits of tax deferral
Reduced basis for retirement income
How efficient is your vehicle?30-year savings growth of $50,000 rollover vs. cashout
This hypothetical example assumes a 31% federal tax rate, a 5% state and local tax rate, and an 8% annual return. It is not indicative of any product or performance, and does not reflect any expense associated with investing. Taxes are due upon distribution. It is possible to lose money investing in securities.Changes in tax rates and tax treatment of investment earnings may impact the comparative results. You should consider your personal investment horizon and income tax bracket, both current and anticipated, when making an investment decision as these may further impact the results of the comparison.
$120,760
$503,133
$27,000 reinvestment$50,000 cashed out
and remainder reinvestedin taxable vehicle
$50,000 reinvestment$50,000 kept
in tax-deferredqualified plan
difference: $382,373
The tax-deferred investment isa far more efficient vehicle for growing
your retirement savings!
Don’t be afraid to ask for directionsYou’re in the driver’s seat!
Take stock of your goals and options
Choose the road that’s right for you
Let us help get you where you want to go!
2011 IRS Contribution Limits
$16,500 less than age 50
$22,000 for age 50 on or before 12/31
Set aside additional moneyReposition some assetsConsider different investment ideas
ACTION STEPS TO TAKE TODAY
Determine your retirement income sources
Get an estimate of your retirement expenses
Review your investment strategy
Check your beneficiaries
Save more – there’s still time!
Visit www.myretirement.org
DisclosuresThis material was prepared to support the promotion and marketing of insurance or investment company products. Lincoln Financial Group® affiliates, their distributors, and their respective employees, representatives, and/or insurance agents do not provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used for the purpose of avoiding U.S. federal, state, or local tax penalties. Please consult your own independent advisor as to any tax, accounting, or legal statements made herein.
Variable annuities are long-term investment products designed for retirement purposes. Investment return and principal value of an investment will fluctuate so that an investor’s unit values, when redeemed, may be worth more or less than their original cost.
Purchase of an annuity contract through a qualified plan does not provide any additional tax deferral benefits beyond those already provided through the plan. If you are purchasing an annuity contract through a plan, you should consider purchasing it for its death benefit, annuity options, and other non-tax-related benefits.
Variable products are sold by prospectus. Consider the investment objectives, risks, and charges and expenses of the variable product and its underlying investment options carefully before investing. The prospectus contains this and other information about the variable product and its underlying investment options. To request a prospectus call 877 533-0003 or obtain one from your investment representative. Please read it carefully before you invest or send money.
Securities distributed by Lincoln Financial Distributors, Inc., a broker/dealer and wholesale distribution organization of Lincoln Financial Group. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Affiliates are separately responsible for their own financial and contractual obligations.
May go down in value
Not a deposit Not FDIC-insured Not insured by any federal government agency
Not guaranteed by any bank or savings association
©2008 Lincoln National Corporation
Road To RetirementThank you for joining us today
Contact Information
Christine A. Carter, CMFC(r)Consultant | Client ServicesTIAA-CREF | Financial Services for the Greater GoodTel: 877.267.4510 Fax: 813. 910.2090 [email protected]
Richard PhelanRetirement ConsultantLincoln Financial GroupPhone: 321-773-4500Toll-free: 1-888-744-4294Fax: [email protected]
Office of Human Resources321-674-8100
