los angeles unified school district 457(b) deferred
TRANSCRIPT
Los Angeles Unified School District
457(b) Deferred Compensation Plan
38233598_0121
Investment Advisor Representatives
Voya Financial Advisors
Dan Garcia Greg GowerCell: (714) 331-5858 Cell: (714) 889-9208
[email protected] [email protected]
Investment advisor representative and registered representative of Voya Financial Advisors, Inc. (member SIPC)
Introduction
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Important Disclosures
Registered representative and retirement educational seminars are provided by
Voya Financial Advisors, Inc. (member SIPC). These educational seminars are
provided to you as a service of LAUSD and as part of the plan administrative
services provided by Voya Institutional Plan Services, LLC (VIPS). The
information contained herein should not be construed as (i) an offer to sell or
solicitation of an offer to buy any security or (ii) a recommendation as to the
advisability of investing in, purchasing or selling any security. You should contact
your investment representative (or advisor), attorney, accountant or tax advisor,
with regard to your individual situation prior to implementing a retirement plan
strategy.
For Onsite Enrollment Only‐VFA use.
Be ready
Take control of
your retirement
income journey.
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How long do you expect to live in retirement…
the next 1/3 of your life?
65-year old female: 1 in 2 chance of living past age 85
8265-year old male: 1 in 2 chance of living past age
Your expenses don’t end when you retire
The truth is, you may need to live without a paycheck, as long as you have lived with one. How much will you need?
•Source: Society of Actuaries Simple Life Expectancy Calculator, based on Social Security 2010 Mortality Table. https://www.soa.org/Research/Software-Tools/research-simple-life-calculator.aspx
Employer’s Checks
Funding for your future goals
Your
Age25 35 45 55 65 75 85 95
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LAUSD 457 Plan Overview
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What is a 457(b) Deferred Compensation Plan?
Allows you to save more money on a tax-deferred basis for retirement.
Up to $19,000 total in employee contributions annually.
Additional $6,000 deferral in 2019 for employees age 50+
Loans permitted
Withdrawals due to Unforeseeable Emergencies
In-service withdrawals may be permitted if your account value is
$5,000 or less or at age 70 ½.
Withdrawal permitted upon participants severance from employment
without penalty.
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Distributions will be taxed as ordinary income when distributed.
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Benefits of participation in your 457(b) plan
Pre-Tax Contributions
• Contribute on a pre-tax basis and lower the taxes you pay today
• Provide income source to supplement your CalSTRS and CalPERS pension in retirement
• Contributions and any earnings are tax-deferred and will be taxed as ordinary income when distributed
• Low cost Investment Lineup
High Employee Contribution Limits
• $19,000 limit in 2019
• Age 50 Catch up –Additional $6,000
Support 24/7
• On-Site, face-to-face service, and education from Voya representatives available to all District employees
• Technology allowing access to your account from both Voya’s website and mobile app
• Make changes to your contribution rate and/or investments at any time
Search Voya Retire from your Apple or Android app store*
*iPhone and iPod touch are trademarks of Apple Inc., registered in the U.S. and other countries. Android is a trademark of Google Inc.
The earlier the better
Invest in a tax-deferred account and
compounding could work in your
favor.
You don’t pay taxes on the amount
you save or any earnings until you
take a withdrawal.
Someone who contributes for an
extended period can come out
ahead of someone who contributes
more per month for a shorter
period.
* This hypothetical shows the impact of joining at different ages. The accumulated amounts assume 26 pay periods per year, contributions made at the beginning of
each period, and a 6% annual rate of return compounded monthly and a retirement age of 65. No specific investment product is reflected and no fees, charges or
taxes have been taken into account in the charts above.
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Contributing to the 457(b)
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Payroll deductions make contributing painless!
Pay yourself first!
Contributions are automatically
deducted from your pay.
When you don’t see it, you
don’t miss it . . .
. . . and you don’t spend
it!
Helping more of your money work for you
You could let the government take $25 in
taxes* and save only $75 . . .
Or you could save $100 by
putting it into a
tax-deferred plan.
Out of every $100 you make
* Assumes state and federal income taxes of 25%. Distributions from a tax-deferred plan will be taxed as ordinary income when distributed and will be subject to an
Internal Revenue Code (IRC) 10% premature distribution penalty tax if taken prior to age 59½, unless an IRS exception applies.
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Investment Options
• Low Cost Administration Fee of 0.24%, plus fund expense.
• Access to investments which include:
- Mutual Funds
- Balanced Portfolios
- Professionally managed Target Date Funds
- Fixed Account* with current gross crediting rate of 1.75%
- Lower average mutual fund expense of .16%
• Oversight by LAUSD and its Retirement Investment Advisory Committee
- Committee is made up of LAUSD employees and bargaining unit
representatives.
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Benefits of the LAUSD 457(b) Plan
*The Voya Fixed Account is available through an annuity contract issued by Voya Retirement Insurance and Annuity Company (“VRIAC”). The Voya Fixed Account is an obligation of
VRIAC's general account which supports all of the company's insurance and annuity commitments. The interest rate guarantees under the contract are subject to VRIAC's claims-
paying ability.
Your investment lineup
Target Date Funds Expense Ratio
BlackRock LifePath 2020 .12
BlackRock LifePath 2030 .12
BlackRock LifePath 2040 .12
BlackRock LifePath 2050 .12
BlackRock LifePath 2060 New! .12
Balanced Portfolios
Vanguard Wellesley Income .15
Vanguard Wellington .16
Fixed
Voya Fixed Account II New!
Bond Funds
Vanguard Total Bond Mkt Index .05
PIMCO Total Return .46
US Equity Funds - Large Company
American Funds Fundamental Inv .31
American Funds Washington Mutual .30
Vanguard Institutional Index Instl .04
Vanguard Growth Index .06
US Equity Funds - Small/Mid Company Expense Ratio
Vanguard Mid Cap Value Index .07
Vanguard Ext Mkt Index .06
International Stock Funds
American Funds EuroPacific Growth .50
Vanguard Developed Markets Index .07
Self-Directed Brokerage
TD Ameritrade Self-Directed Brokerage
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E n r o l l To d a y !
Enrollment
Deferral Rates
Investment Strategy
Planning at Key Life/Event Stages
You can enroll online at https://lausd457benroll.com or by calling the Information Line at (844) 525-2873 Monday – Friday, 8 am – 6pm Pacific Time.
Once enrolled, you will receive your PIN from Voya, the Plan’s record-keeper, which you will use to access your account and establish your personal log in credentials.
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Schedule a Meeting with an LAUSD Advisor
Contact:
Dan Garcia
(714) 331-5858
or
Greg Gower
(714) 889-9208
Investment Advisor Representatives
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Thank you