The Storick Group Pension Plans

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My Investment
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Lineup

• Safe Harbor 401k Plans
• Profit Sharing Contributions
• Traditional 401(k) Plan
• Defined-benefit Plans
• Cash Balance Plans

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SH vs. PSC- Whats the difference?
401k Safe Harbor Plan Safe Harbor 401k Plans
(SH) A Safe Harbor 401(k) Plan is a relatively
new type of 401(k) Plan that automatically meets
certain IRS non-discrimination requirements,
unlike a traditional 401(k) plan, if the employer
commits to making one of two types of employer
contributions. Profit Sharing Contributions
(PSC) An employer profit sharing contribution is
a contribution made by the employer to an
employer sponsored qualified retirement plan.
Eligible participants share in this contribution
based on a predetermined formula used to allocate
this contribution amount. The plan need not be a
401(k) plan, but if it is a plan participant need
not enter into a salary deferral arrangement to
receive such a contribution. However, there may
be other requirements that an employee must
satisfy such as being employed on the last day of
the plan year.
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What is risk?
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Determining your risk profile

• Risk tolerance is the degree to which you are
  comfortable with
• Volatility of annual returns
• Likelihood and size of negative returns
• In the long term
• Higher returns typically come from taking more
  risk, but
• Need to be able to sleep comfortably at night?
• The risk required to achieve your goals
• What is my investment time horizon?
• What are my retirement income expectations?
• What is the value of additional sources of
  potential retirement income?

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Two different risks need to be manage

• Volatility of short term performance
• Assess your risk tolerance
• Diversify your portfolio to address market risk
• and
• 2. Longevity Risk
• Risk of failing to accumulate sufficient assets
  to build desired pension
• Not having sufficient assets to pay your desired
  pension for life

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When to re-evaluate your risk tolerance

• Major life events such as
• Marriage or divorce,
• Children are born, go to university, leave home,
  (return home?)
• Debt levels change or net worth changes
  considerably
• Inheritances
• Death of a spouse
• As your investment time horizon to retirement
  shortens
• If your tolerance for risk changes for any other
  reason

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Investing in volatile markets

• Be patient and dont panic
• Corrections are a normal part of the market.
  Markets eventually recapture losses, reaching
  and surpassing former levels. This can present
  opportunities for long-term investors

• Work with your Financial Advisor
• Working with an advisor who is focused on helping
  you achieve lifetime security. Consumers with
  well-balanced, disciplined investment plans, who
  have taken the risk of market volatility into
  account when creating their investment plans,
  should have minimal impact on long-term goals

• Diversify
• A diversified portfolio with a variety of
  investments, can carry less risk
• During market volatility, members with proper
  asset allocation and disciplined investment
  plans will be impacted less by short-term events

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Diversify your investments

• Diversification holding different types of
  investments in your portfolio
• Lower your overall risk by not putting all of
  your eggs in one basket

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Investment Manager approaches
Active Objective is to outperform a market index
based on research of current market conditions
and company prospects (actively buys and sells
securities in individual funds)
Passive/Index Simply buys and sells assets to
match characteristics of an index, fund
performance should be similar to the index, i.e.
SP TSX
Fund Manager applies an investment style to
their approach
Fund Management Fees tend to be lower than an
Active Fund Manager
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Investment styles
Value Focuses on stocks that a fund manager
thinks are currently undervalued in price and
will eventually have their worth recognized by
the market
Growth Believes that the single most important
thing driving stock prices is rapidly rising
corporate earnings -- and that's what they look
for
If the manager is right, the companys stock will
increase in price as the company achieves
business and earnings growth
If the manager is right, the stock will increase
in price as others in the market recognize the
true value of the stock
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Investment styles
GARP Growth at a reasonable price - looks for
stocks of growth companies that they can buy for
a reasonable price
Core Fund manager includes both growth and
value styles objective is to not allow any one
style overweight the other
By not allowing one style to overweight they
maintain a neutral position
This is a combination of value and growth
investing
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my money- Investment Risk Profiler

• Assess your personal risk tolerance by completing
  the investment risk profiler
• online
• paper-based version

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My money Retirement Planner
If youre not sure how much money you need to set
aside for your desired lifestyle in retirement,
the my money Retirement Planner can help
The planner lets you determine how much you need
to save now to provide you with your desired
income level in retirement. You can adjust a
number of variables as they change over time by
updating your calculations in the retirement
planner.
The Retirement Planner is one of many tools
that you can use, in planning for your
retirement, it does not take the place of a real
financial planner/advisor
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Additional on-line tools to help

• Planning Tools
• Withdrawal Calculator
• Capital Gains vs. RRSP Calculator
• Mortgage vs. RRSP Calculator
• RRSP Loan Calculator
• Non Resident Tax Calculator
• Retirement Tools
• Annuity Premium Calculator
• Old Age Security Calculator
• Registered Retirement Income Fund (RRIF)
  Calculator

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