Title: The LSU EZ-Enrollment Retirement Program
1The LSU EZ-Enrollment Retirement Program
- Mark Tusa, Regional Manager, ING Financial
Advisers - Mike Sotile, Lead LSU ING Representative
- Linda Alumbaugh, ING Representative
- Colette Riha, ING Representative
2Why Save for Retirement?
- Because you want to live as well as you can
during your - retirement.
- Because your pension and Social Security
benefits may - not be enough to replace your current
income in retirement.
3You may need to live without a paycheck as long
as you lived with one.
Todays healthy 65-year old will likely live
20-30 more years.
50 of males age 65will live past age 80.
50 of females age 65will live past age 84.
Based on current Annuity 2000 Mortality Table
assuming relatively good health (2005)
4Tax Deferral and the LSU EZ-Enrollment Retirement
Program
- Saving through the LSU EZ-Enrollment Retirement
Program a 403(b) program - allows you to -
- Set aside money for retirement on a pre-tax
basis. - Save through payroll deduction.
- Lower your current income taxes and/or receive
possible tax credit.
5Saving under a 403(b) Program
The LSU EZ-Enrollment Retirement Program allows
pre-tax contributions, which can turn 70 into
100.
Out of every 100 you make,
OR
you can put 100 into your plan, AND your 100
can grow tax-deferred, building your nest egg
faster!
you can let the government take 30 in taxes and
save 70
Assumes state and federal income taxes of 30.
6How Does Your EZ Plan Work
- Assumptions
- Salary - 1,000.00 Monthly
- Saving 100.00
- Tax Bracket 20 (Federal and State)
- Traditional Salary / Tax / After Tax / Savings /
Take Home - 1000 200 800
100 700 - EZ Plan Salary / Savings / TI /
Tax / Take Home - 1000 100 900
180 720 -
7The sooner you start, the sooner you reach your
goals.
Assumes each accounts earns an annual
tax-deferred rate of return of 8.00 and is for
demonstration purposes only. Not based on the
rate of return or the incurred costs of any
particular investment. The effects of fees and
charges would reduce the numbers shown. Not
intended to serve as financial advice or as a
primary basis for your investment decisions.
Taxes are generally due upon withdrawal. Dollar
cost averaging does not ensure a profit nor
guarantee against loss. Investors should consider
their financial ability to continue their
purchases through periods of low price levels.
8Savers Tax Credit
- Individuals who contribute to an Employer
Retirement Plan or to an IRA may qualify for a
Savers Tax Credit. This credit is equal to the
following - 50 of Contribution
- Married Filing Jointly (0-30,000)
- Head of Household (0-22,500)
- All Other Filers (0-15,000)
- 20 of Contribution
- Married Filing Jointly (30,001-32,500)
- Head of Household (22,501-24,375)
- All Other Filers (15,001-16,250)
- 10 of Contribution
- Married Filing Jointly (32,501-50,000)
- Head of Household (24,376-37,500)
- All Other Filers (16,251-25,000)
- Remind your tax preparer that you could qualify
for a Tax Credit - Neither ING nor its representatives offer tax or
legal advice. The taxpayer should seek advice
from an independent tax advisor.
9What happens if Im Not Happy with The EZ
Enrollment Plan?
- You can move your money to any qualified
retirement plan offered by the LSU System. - There is NO Deferred Sales Charge
- Participants can move your money at any time.
- Participants may be assessed an early withdrawal
penalty if distributions are taken prior to age
59 ½ and no exemption applies. - Contributions made on a pre-tax basis (as well as
earnings on those contributions) are subject to
federal tax when withdrawn
10Simplification - Easy Investment Options
Target-Date Lifecycle Funds
Sophisticated Asset Allocation Techniques Made
Simple
ING Solution 2045 Portfolio
ING Solution 2035 Portfolio
ING Solution 2025 Portfolio
ING Solution 2015 Portfolio
ING Solution Income Portfolio
Asset Allocation Mix
Years to Goal
11ING Solution Portfolios
- A portfolio is chosen based on your goal
retirement year and risk tolerance, and INGs
professional investment managers do the rest. - Professional fund managers can be more aggressive
for those with a longer time horizon and are more
conservative with those with a shorter time
horizon. - Over time, the asset allocations within each
Portfolio become more conservative as the
participant moves closer to the time they may
want to withdraw the assets to help fund their
retirement.
12Local Service and Commitment
- ING provides a committed local service team
- Team of experienced and credentialed
representatives with on-site experience - One-on-one and group education meetings
- Variety of financial and retirement planning
seminars - Focus on customer relationships
- Annual Reviews, Review of Statements, and
Seminars for Specific Departments
13Personalized Solutions
Information and transaction capabilities via
toll-free line or Internet
- Quarterly Statements and
- newsletters
- On-line statements
- Account information and activity
- Education library
- Investment information
- including one pagers and
- performance
- Internet Access
- Toll-Free Access
- Enrollments
- Investment option changes
- Interactive calculators
- Asset allocation guidance
LOCAL REPRESENTATIVES PERSONAL TOUCH!
14 How to get started
- Its as EZ as handing the EZ Enrollment Form to
someone at the meeting today. - You can also hand in the EZ Enrollment Form to
the Human Resource Department. - Your ING Representative will do the rest.
-
- An ING agent we make sure you understand the plan
and the benefits of saving for retirement through
the LSU EZ Enrollment plan.
15OUR LOCAL AGENTS
- Mike Sotile
- Linda Alumbaugh
- Colette Riha
16Important Information
- You should consider the investment objectives,
risks, charges, and expenses of the variable
product and its underlying fund options or
mutual funds offered through a retirement plan,
carefully before investing. The
prospectuses/prospectus summaries/information
booklets contain this and other information, and
can be obtained by contacting your local
representative. Please read the information
carefully before investing. - The Internal Revenue Code generally prohibits
withdrawals of any contributions and attributable
earnings prior to death, disability, age 59 1/2,
severance of employment, or financial hardship.
(The amount available for hardship is limited to
the lesser of the amount necessary to relieve the
hardship, or the account value as of 12/31/1988
plus the amount of any salary reduction
contributions made after 12/31/1988 (exclusive of
any earnings.)