FOR NEW ENROLLEES
Planning for retirement
What you need to know
Unity House of Cayuga County
Not FDIC Insured  May Lose Value  No Bank Guarantee
1
Who is Fidelity?
• Industry-leading retirement provider
• Private ownership
• Strength and stability in volatile times
Founded in 1946, the firm is a leading provider of
investment management, retirement planning,
portfolio guidance, brokerage, benefits outsourcing
and many other financial products and services to
more than 20 million individuals and institutions, as
well as through 5,000 financial intermediary firms.
Source: Fidelity Investments Corporate Highlights as of 5/31/2011
2
Agenda
• The importance of saving for retirement
• The benefits of a 401(k) plan
• Maximizing your savings opportunity
• The basics of investing
• Utilizing the resources available
• Review of plan’s investment options
3
Planning
Why save for retirement?
4
PLANNING
Goal – retirement readiness
Important take-aways from this meeting
Participate
in your
401(k) plan
5
Maximize
your
contributions
Maintain
appropriate asset
allocation
PLANNING
Lifetime retirement planning strategies
Retirement accumulation
Retirement income
Legacy planning
Age 30
6
Age 60
Age 90
PLANNING
Critical steps toward retirement planning
Plan
7
Invest
Monitor
• How much will you
need for retirement?
• Do you have the right
investment mix?
• Are your savings
keeping pace?
• Are you saving enough?
• Are you on track?
• What investments may
help you get there?
• Are your investments
on-strategy?
• What steps should you
consider?
• Is your strategy right
for your goal?
• Have your
circumstances
changed?
PLANNING
Sources of retirement income
Individuals will be responsible for a higher percentage of
their income in retirement
64%
from your
own sources
37%
18%
18%
Investments
Earned income
from outside
sources
Social Security
19%
44%
Pension
Other
2%
Source: Social Security Administration, “Income of the population 55 or older using highest quintile $55,889 per year and
higher – 2008,” April 2010. This chart is for illustrative purposes only. May not add to 100% due to rounding.
8
PLANNING
Five key risks
9
PLANNING
How much will you need for retirement?
Consider targeting
85% of your annual
pre-retirement income for
each year in retirement
10
PLANNING
Estimating your retirement income
Estimated
Salary at retirement
Income for year 1
(85% of salary)
Income for 20 years
of retirement*
$20,000
$17,000
$340,000
$30,000
$25,500
$510,000
$40,000
$34,000
$680,000
$50,000
$42,500
$850,000
$60,000
$51,000
$1,020,000
$80,000
$68,000
$1,360,000
$100,000
$85,000
$1,700,000
* These amounts are not adjusted for inflation, other sources of income, and changes in personal financial circumstances.
These other factors may significantly impact your retirement income needs.
11
PLANNING
Benefits of a 401(k)
12
Tax
advantages
Investment
choice
Ease and
convenience
Disciplined
savings
PLANNING
Maximize your savings opportunity
Pretax contributions may increase take-home pay and lower current taxes
HYPOTHETICAL EXAMPLES:1
John
Sally
contributes on a pretax
basis to her 401(k) plan
Monthly pay
contributes to an
after-tax account
outside the plan
$3,000
$3,000
-$300
-$0
$2,700
$3,000
Federal income taxes at 25%2
-$675
-$750
Monthly after-tax contribution
-$0
-$300
$2,025
$1,950
Monthly pretax contribution
Monthly taxable income
Take-home pay3
1. Pretax contributions and any earnings will be taxed at the time of withdrawal at the tax rate in effect at that time. This hypothetical example does
not take into account FICA taxes, exemptions, itemized deductions, state and local taxes, and federal taxes other than income tax. The participant’s
own tax bracket may be higher or lower, depending on their individual circumstances.
2. This is a hypothetical example. Your own federal tax rate may be different. State and local taxes are not included.
3. After-tax deductions for federal income taxes and contributions to plan or taxable account.
13
PLANNING
Accelerate your savings
Contribute as much as you can up to the IRS
dollar limit (or your plan's limit if less)
Take advantage of your employer
contribution – it’s like getting “free” money*
Make catch-up contributions
if you are 50 or older
Start saving early
* Employer contributions are subject to your plan provisions. Keep in mind that investing involves risk. The value of your investment
will fluctuate over time and you may gain or lose money.
14
PLANNING
The advantages of starting early
Total
contributions
value*
Sally
$343,414
$40,000 total invested
John
$293,935
$104,000 total invested
30
31
33
36 38
40
43
45
47
49
51
53
55
58
61
63
65
68
AGE
Sally
John
Hypothetical pretax contribution
$4,000 per year from ages 30 to 39
$4,000 per year from ages 40 to 65
Total amount contributed
$40,000
$104,000
Total contributions value
$343,414 (pretax) after 36 years
$293,935 (pretax) after 26 years
* Assuming a 7% annual rate of return
This hypothetical is not intended to predict or project investment performance. Your own results will vary. It assumes systematic $4,000 pretax contributions to a
tax-deferred retirement plan account made annually on 1/1 for the number of years indicated above and a 7% annual rate of return. No distributions are taken from
the plan account during the entire period. Taxes on distribution, and fees and expenses are not taken into account. If account fees and expenses were deducted,
performance would be lower. Pretax contributions and any earnings will be taxed at the time of distribution and may also be subject to an early withdrawal penalty
if distributed before age 59½. Systematic investing does not ensure a profit and does not protect against loss in a declining market.
15
PLANNING
Roth 401(k) contributions: Tax-free earnings on investments
Your plan offers a Roth 401(k) option
Traditional 401(k)
contributions
Roth 401(k)
contributions
• Contributions are made
on a pretax basis
• Contributions are made
on an after-tax basis
• On withdrawal: Entire
distribution is taxable
• On withdrawal: Qualified
distributions are tax free*
* You may incur taxes if the withdrawal is taken less than five tax years after the year of the first Roth 401(k) contribution and if taken before you
reach age 59½. A qualified distribution is one made at least five years after the tax year you make a designated Roth contribution to the plan AND
is made after you turn 59½, to a beneficiary (or your estate) after you die, or if you are disabled.
16
PLANNING
Who may benefit from Roth 401(k) contributions?
Individuals who expect to be in a higher
tax bracket when they retire
Younger employees with more time till
retirement and more time to accumulate
tax-free earnings
Highly compensated individuals
who are not eligible for a Roth IRA
Employees who may want to leave taxfree money to their beneficiaries
17
Investing
Introducing basic principles
18
INVESTING
Investing principles
Risk
Asset classes
Managing your investments
Creating an asset mix
Monitoring your investments
19
INVESTING
Investment risk
Keep the long-term trend in mind
Time is on Your Side
Average Annual Return %
1962 – 2011
9.2%
7.2%
5.4%
4.0%
Inflation
Short-Term
Investments
Bonds
Domestic Stocks
Data Source: Ibbotson Associates 2012. This chart represents the average annual return percentage for the investment categories shown for the 50-year period of 1962–2011.
Past performance is no guarantee of future results. Returns include the reinvestment of dividends and other earnings. This chart is for illustrative purposes only and does not
represent actual or implied performance of any investment option. Stocks are represented by the Standard & Poor’s 500 Index (S&P 500®). The S&P 500® a market capitalization–
weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance. Bonds are represented by the U.S.
Intermediate Government Bond Index, which is an unmanaged index that includes the reinvestment of interest income. Short-term instruments are represented by U.S. Treasury
bills, which are backed by the full faith and credit of the U.S. government. Inflation is represented by the Consumer Price Index, (CPI) is a widely recognized measure of inflation,
calculated by the U.S. government. Stock prices are more volatile than those of other securities.
Government bonds and corporate bonds have more moderate short-term price fluctuation than stocks but provide lower potential long-term returns.
U.S. Treasury bills maintain a stable value (if held to maturity), but returns are generally only slightly above the inflation rate. You cannot invest directly in an index.
20
INVESTING
Inflation risk
Even low inflation can damage purchasing power
Annual income of $50,000
$50,000
$40,000
2% inflation: $30,477
$30,000
3% inflation: $23,880
$20,000
4% inflation: $18,756
$10,000
$0
Today
5
10
15
20
25
YEARS
All numbers were calculated based on hypothetical rates of inflation of 2%, 3%, and 4% (historical average from 1926 to 2010 was 3%) to show
the effects of inflation over time; actual inflation rates may be more or less and will vary.
21
INVESTING
Asset classes
ASSET CLASS
Short-term investments
Bonds
Stocks
DEFINITION
Money market funds,
CDs, T-bills
A loan to a company,
government, etc.
Ownership in a company
RETURN/RISK
POTENTIAL
Low
Moderate
High
INFLATION RISK
Categories on left have
potentially more inflation risk
and less investment risk
22
INVESTMENT RISK
Categories on right have
potentially less inflation risk
and more investment risk
INVESTING
Short-term investments
Short-term debt instruments – T-bills, CDs,
bank notes, money market funds
• Relatively stable value
• Potential to pay interest
• Lower risk, lower potential return
An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency. Although money market
funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these funds.
Interest rate increases can cause the price of money market securities to decrease.
23
INVESTING
Bonds
Debt securities
• Issued by governments and corporations
• Potential to pay interest
• Moderate risk, moderate potential return
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, credit, and
default risks for both issuers and counterparties. (Unlike individual bonds, most bond funds do not have a maturity date, so holding them
until maturity to avoid losses caused by price volatility is not possible.)
Lower-quality bonds can be more volatile and have greater risk of default than higher-quality bonds. Increases in real interest rates can
cause the price of inflation-protected debt securities to decrease.
24
INVESTING
Stocks
• Ownership share
• Long-term growth potential
• Fluctuating value
• Higher risk
Stock values fluctuate in response to the activities of individual companies and general market and economic conditions.
25
INVESTING
Stocks – capitalization
Large Cap
$10 billion
and above
Mid Cap
$2 to
$10 billion
Small Cap
Less than
$2 billion
Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market,
or economic developments.
The securities of smaller, less well-known companies can be more volatile than those of larger companies.
Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks.
26
INVESTING
Stocks – value vs. growth
Value
Growth
• Companies undervalued
or out of favor
• Companies whose earnings
and profits are growing
• Buy it “on sale”
• Relatively higher share price
• Poised for
growth/turnaround story
• Pay a premium for earnings
potential
Value stocks can perform differently than other types of stocks and can continue to be undervalued by the market for long periods of time.
Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or
economic developments.
Growth stocks can perform differently from other types of stocks and the market as a whole and can be more volatile than other types of stocks.
27
INVESTING
Stocks – value vs. growth
INVESTMENT STYLE
MARKET CAPITALIZATION
Value
Blend
Growth
Large
Medium
Small
StyleMap® depictions of mutual fund characteristics produced using data and calculations provided by Morningstar, Inc. StyleMaps estimate
characteristics of a fund's equity holdings over two dimensions: market capitalization and valuation.
28
INVESTING
Stocks – international
• Stocks of companies incorporated
outside the United States
• Grouped according to: region, country,
industry, market sector, economic
development
Foreign investments, especially those in emerging markets, involve greater risk and may offer greater potential returns than U.S.
investments. This risk includes political and economic uncertainties of foreign countries, as well as the risk of currency fluctuation.
29
INVESTING
Performance comparison
Growth of $100 in each of three asset classes, 1962–2011
Stocks $8,417
Bonds $3,203
Short-term
investments $1,282
Inflation $755
$100
1962
2011
Data Source: Ibbotson Associates, 2012 (1962–2011). Past performance is no guarantee of future results. The asset class (index) returns reflect the reinvestment of
dividends and other earnings. This chart is for illustrative purposes only and does not represent actual or future performance of any investment option. It is not possible
to invest directly in a market index. Stocks are represented by the Standard and Poor’s 500 Index (S&P 500® Index). The S&P 500® Index is a market capitalization–
weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance. Bonds are represented
by the U.S. Intermediate Government Bond Index, which is an unmanaged index that includes the reinvestment of interest income. Short-term instruments are
represented by U.S. Treasury bills, which are backed by the full faith and credit of the U.S. government. Inflation is represented by the Consumer Price Index, (CPI) is a
widely recognized measure of inflation, calculated by the U.S. government. Stock prices are more volatile than those of other securities. Government bonds and
corporate bonds have more moderate short-term price fluctuations than stocks but provide lower potential long-term returns. U.S. Treasury bills maintain a stable value
(if held to maturity), but returns are only slightly above the inflation rate.
30
INVESTING
The case for diversification
31 Diversification does not ensure a profit or guarantee against a loss. Past performance is no guarantee of future results.
INVESTING
Managing your investments
Strategies for a variety of investors
“Do it myself”
“Do it with me”
“Do it for me”
Participants can benefit from the assistance of the plan's
advisor and the resources at Fidelity.
32
INVESTING
Lifecycle funds
Manage it for me
• Managed for a specific retirement date
• Ongoing graduated asset allocation
• Automatic rebalancing
• Professional management
• Diversification may help to mitigate
portfolio risk*
The investment risks of each target date (lifecycle) fund changes over time as its asset allocation changes. They are subject to the volatility
of the financial markets, including 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 their target dates
* Diversification does not guarantee against a loss.
33
INVESTING
Fidelity Advisor Freedom Funds®
Fidelity Advisor Freedom Funds offer a blend of stocks, bonds, and short-term
investments within a single fund. They are designed for investors expecting to retire
around the year indicated in each fund's name.
Funds to left have potentially more
inflation risk and less investment risk
Fidelity Advisor
Freedom ®2005
Fund
Fidelity Advisor
Freedom Income
®
Fund
Fidelity Advisor
Freedom ®2015
Fund
Fidelity Advisor
Freedom ®2010
Fund
Funds to right have potentially less
inflation risk and more investment risk
Fidelity Advisor
Freedom ®2025
Fund
Fidelity Advisor
Freedom ®2020
Fund
Fidelity Advisor
Freedom ®2035
Fund
Fidelity Advisor
Freedom ®2030
Fund
Fidelity Advisor
Freedom ®2045
Fund
Fidelity Advisor
Freedom ®2040
Fund
Fidelity Advisor
Freedom 2055
Fund®
Fidelity Advisor
Freedom ®2050
Fund
The Fidelity Advisor Freedom Funds are represented on a separate investment spectrum because each fund (except Fidelity Advisor Freedom
Income) will gradually adjust its asset allocation to be more conservative as the fund approaches its target retirement date. Approximately ten
to fifteen years after the target date, the asset allocation of each Freedom Fund will match the allocation of the Freedom Income Fund. The
spectrum illustrates the relative risk and return of each fund as compared with the other funds in the Freedom family. This spectrum does not
represent actual or implied performance. The Advisor Freedom Funds are subject to the risks of their underlying funds, including the
volatility of the financial markets in the U.S. and abroad, as well as the additional risks associated with investing in high yield, smallcap, commodity-linked, and foreign securities. Principal invested in the fund is not guaranteed at any time, including at or after each
fund's target date. · Strategic Advisers,® Inc., a subsidiary of FMR LLC, manages the Fidelity Advisor Freedom Funds.
34
INVESTING
Fidelity Advisor Freedom Funds® Lifecycle funds for your 401(k) plan
One fund can help you diversify for retirement
Fidelity Advisor Freedom Funds’ Target Allocation
40
56%
10%
24%
10%
30
52%
9%
22%
9%
20
47%
8%
20%
8%
10
39%
7%
17%
7%
AT
TARGET
DATE
31%
5%
13%
5%
1%
0%
0%
8%
0%
0%
16%
1%
0%
21%
7%
3%
24%
11%
10%
YEARS BEFORE RETIREMENT
ASSET CLASS
U.S. Equity Funds
Commodity Funds1
International Equity Funds2
High Yield Bond Funds
Investment-Grade Bond Funds
Treasury Inflation-Protected Security Funds
Short-Term Investment Funds
YEARS IN
RETIREMENT
10
17%
3%
7%
5%
15+
13%
2%
5%
5%
20%
10%
37%
23%
12%
40%
Portfolio allocations shift gradually and continually each year.
This table illustrates the approximate target asset
allocation for Fidelity Advisor Freedom Funds. The table
MORE AGGRESSIVE
LESS AGGRESSIVE
also illustrates how these allocations may change over
time. Due to rounding and/or cash balances, asset
allocations may not equal 100. Asset allocation
When an employee’s retirement is
By 15 years after the target date,
percentages are based on long-term strategic weights and
far
off,
their
fund
is
more
aggressively
the portfolio remains allocated
may not necessarily align with actual current weights. This
table is not intended to represent current or future
allocated for growth. Gradually, it
for income, with 80% exposure
allocations in any portfolio. The portfolio manager will
reduces
exposure
to
riskier
assets.
to fixed-income assets.
periodically rebalance the portfolios as market conditions
and the funds’ performance weightings change.
1. Underlying funds normally invest in commodity-linked notes and other instruments that may be more volatile and less liquid than the underlying commodities whose
performance the fund aims to reflect. 2. Includes developed and emerging market funds. The Fidelity Advisor Freedom Funds are subject to the risks of their
underlying funds, including the volatility of the financial markets in the U.S. and abroad, as well as the additional risks associated with investing in high yield,
small cap, commodity-linked, and foreign securities. Principal invested in the fund is not guaranteed at any time, including at or after the target date.
Fidelity Advisor Freedom Funds are managed by Strategic Advisers, Inc., a subsidiary of FMR LLC.
35
INVESTING
Fidelity Advisor Freedom Funds®
Risk level drops as you approach retirement
Fidelity Advisor Freedom Funds are designed to provide more growth
potential early on and less as you approach and enter retirement
3-year standard deviation of Fidelity Advisor Freedom Funds vs. S&P 500® as of 6/30/10
Higher risk far from retirement
25
STANDARD DEVIATION
S&P 500
20
15
Risk level drops as
investors approach
retirement
Lower risk near and
during retirement
10
5
0
2055
2050
2045
2040
2035
2030
2025
2020
2015
FIDELITY ADVISOR FREEDOM FUNDS
36
2010
Standard deviation
measures the historical
volatility of a fund. The
greater the standard
deviation, the greater the
fund’s volatility.
Standard & Poor’s 500
Index (S&P 500) is an
unmanaged market
capitalization-weighted
index of 500 widely held
U.S. stocks and includes
reinvestment of
dividends.
2005 Income
INVESTING
Creating an asset mix
Manage it myself
IMPACT ON VARIABILITY OF RETURNS
Determinants of portfolio performance
100%
91.5%
of the variability of a portfolio's performance
is determined by asset allocation decisions.
80%
60%
40%
20%
8.5%
of performance can be attributed to
security selection and market timing.
0%
Asset allocation
Security selection
“Determinants of Portfolio Performance,” Brinson, Hood, and Beebower, Financial Analysts Journal, July–August 1986, and “Determinants
of Performance II: An Update,” Brinson, Singer, and Beebower, Financial Analysts Journal, May–June 1991.
37
INVESTING
Diversification
Asset
allocation
Percentage of
Diversification
Investing in different types of
• Stocks
• Stocks
• Bonds
• Bonds
• Short-term investments
• Short-term investments
Neither diversification nor asset allocation ensures a profit or guarantees against loss.
38
INVESTING
Factors to consider
Characteristics
of each asset
class
39
Number of
years until you
plan on using
the money
Your attitude
about risk
Your personal
financial
situation
INVESTING
Determine a target asset mix
Domestic Equity
International Equity
Conservative
50%
Bonds
MM/Short-Term Investments & other assets
Balanced
11%
15%
40%
6%
30%
14%
Decreasing investment risk
and increasing inflation risk
Aggressive Growth
Growth
49%
25%
60%
25%
35%
10%
RISK SPECTRUM
15%
15%
Increasing investment risk
and decreasing inflation risk
Generally, among asset classes, stocks may present more short-term risk and volatility than bonds or short-term instruments but may provide greater
potential return over the long term. Although bonds generally present less short-term risk and volatility than stocks, bonds contain interest rate risk (as
interest rates rise bond prices usually fall); the risk of issuer default; and inflation risk. Foreign investments, especially those in emerging markets, involve
greater risk and may offer greater potential return than U.S. investments. · These target asset mixes are hypothetical models and illustrate certain examples
of many combinations of investment allocations that can help an investor pursue his or her goals; these target asset mixes do not constitute investment
advice under the Employee Retirement Income Security Act of 1974 (ERISA). You should choose your own investments based on your particular objectives
and situation. Remember, you may change how your account is invested. Be sure to review your decisions periodically to make sure they are still consistent
with your goals. · Education on investment alternatives and services do not generally constitute investment advice as defined under the Employee
Retirement Income Security Act of 1974. · Asset allocation does not ensure a profit or guarantee against loss. For illustrative purposes only.
40
INVESTING
Investment options in your plan
Conservative investments
Potentially less investment risk and more inflation risk
Money market
Prime Fund-Daily Money
Class
Stable value
Bond
Balance/hybrid
Lord Abbett Short Duration
Income
Invesco Balanced-Risk
Allocation
PIMCO Total Return
PIMCO Income
Templeton Global Bond
Stock values fluctuate in response to the activities of individual companies and general market and economic conditions.
In general, bond prices rise when interest rates fall and vice versa. This effect is usually more pronounced for longer-term securities.
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
This spectrum, with the exception of the Domestic Equity category, is based on Fidelity’s analysis of the characteristics of the general investment
categories and not on the actual investment options and their holdings, which can change frequently. Investment options in the Domestic Equity
category are based on the options’ Morningstar® categories as of the most recent calendar quarter. Morningstar categories are based on a fund’s
style as measured by its underlying portfolio holdings over the past three years and may change at any time. These style calculations do not
represent the investment options’ objectives and do not predict the investment options’ future styles. Investment options are listed in alphabetical
order within each investment category, and the relative risk of categories may change under certain economic conditions. The spectrum
does not represent actual or implied performance.
41
INVESTING
Investment options in your plan (cont.)
U.S. Equity – Moderate investments
Moderate investment risk and moderate inflation risk
Large Value
Large Blend
Large Growth
JPMorgan Equity Income
Invesco S&P Index
MFS Massachusetts Investors Trust
FA New Insights
Mid Value
Mid Blend
Mid Growth
John Hancock III Disciplined Value
Mid Cap
Nuveen Mid Cap Index
Janus Enterprise
Small Value
Small Blend
Small Growth
Fidelity Advisor Small Cap Value
PIMCO Small Cap StocksPLUS Total
Return
Janus Triton
Stock values fluctuate in response to the activities of individual companies and general market and economic conditions.
In general, bond prices rise when interest rates fall and vice versa. This effect is usually more pronounced for longer-term securities.
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
This spectrum, with the exception of the Domestic Equity category, is based on Fidelity’s analysis of the characteristics of the general investment
categories and not on the actual investment options and their holdings, which can change frequently. Investment options in the Domestic Equity
category are based on the options’ Morningstar® categories as of the most recent calendar quarter. Morningstar categories are based on a fund’s
style as measured by its underlying portfolio holdings over the past three years and may change at any time. These style calculations do not represent
the investment options’ objectives and do not predict the investment options’ future styles. Investment options are listed in alphabetical order within
each investment category, and the relative risk of categories may change under certain economic conditions. The spectrum does not represent
actual or implied performance.
42
INVESTING
Investment options in your plan (cont.)
Aggressive investments
Potentially more investment risk and less inflation risk
Non-U.S. equity
Specialty
Company stock
Fidelity Advisor International Growth
Stock values fluctuate in response to the activities of individual companies and general market and economic conditions.
In general, bond prices rise when interest rates fall and vice versa. This effect is usually more pronounced for longer-term securities.
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
This spectrum, with the exception of the Domestic Equity category, is based on Fidelity’s analysis of the characteristics of the general investment
categories and not on the actual investment options and their holdings, which can change frequently. Investment options in the Domestic Equity
category are based on the options’ Morningstar® categories as of the most recent calendar quarter. Morningstar categories are based on a fund’s
style as measured by its underlying portfolio holdings over the past three years and may change at any time. These style calculations do not
represent the investment options’ objectives and do not predict the investment options’ future styles. Investment options are listed in
alphabetical order within each investment category, and the relative risk of categories may change under certain economic conditions.
The spectrum does not represent actual or implied performance.
43
INVESTING
Rebalancing
Portfolio asset allocation can drift over time
1999
2004
Bonds
Bonds
40%
52%
Stocks
60%
2009
Stocks
Stocks
Bonds
48%
58%
42%
Source: Data from Ibbotson®; S&P 500 index for stocks and Barclays Capital U.S. Aggregate Bond Index for bonds. You cannot invest
directly in an index.
44
INVESTING
Investment review calendar
Monthly
Twice a year
Yearly
• Check that the
amount you’re
saving matches
your target
savings rate
• Compare your current
asset allocation to your
target allocation
• Review your
overall plan
• Review account
statements
• Make any necessary
adjustments by redirecting
savings inflows to
underweighted asset
classes or shift money from
one asset class to another
• Evaluate savings
rate and target
allocation; adjust
as needed
• Review retirement
plan beneficiary
designations
Life Event: Review your overall plan in light of any major life changes,
whenever they occur.
45
Your plan
Making the most of it
46
YOUR PLAN
Taking advantage of your plan
Eligibility
21 Years of Age, 1 Year of Service, 1000
hours
Entry dates
Quarterly – 1/1, 4/1, 7/1, 10/1
Contributions
1-100% – 2013 IRS Limit $17,500
Contribution changes
Beginning of Payroll
Catch-up contributions
$5,500 age 50 or older
Profit Sharing – Does Unity House
contribute?
3% of your gross monthly
Vesting
6 year graded with profit sharing from
original date of hire
You are always 100% vested when you
contribute
47
YOUR PLAN
Auto enrollment
• It’s already done for you!
• Start now to save as much
as you can
• Maximize the amount you
contribute
• Your contribution rate is 3% and
will increase by 1% each year for
the next 4 years unless you elect
otherwise
Assuming an age 65 retirement and/or Automatic Enrollment with AIP.
48
• You will be invested in a Fidelity
Advisor Freedom Fund that most
closely aligns with your retirement
date (based on your date of birth),
unless you elect otherwise
YOUR PLAN
Annual Increase Program
How your contribution can grow over time
$400,000
$358,185
$350,000
Person B: Balance with annual
increase in contributions
$300,000
$254,333
$250,000
$200,000
Person A: Balance without annual
increase in contributions
$150,000
$100,000
$50,000
$0
Year 0
Year 4
Year 8
Year 12
Year 16
Year 20
This is a hypothetical example. Assumptions: Person A and Person B are both 45 years old. Person A contributed 3%/year until age 65.
Person B increased contributions 1%/yr for 10 years, then stayed at 13% contributions until age 65. Both earn $40,000 per year and start
with an account balance of $50,000. This hypothetical example is based on monthly contributions made at the beginning of the month
to a tax-deferred retirement plan and a 7% annual rate of return compounded monthly. Your own plan account may earn more or less
than this example, and income taxes will be due when you withdraw from the account. Investing in this manner does not ensure a
profit or guarantee against loss in declining markets. Past performance is no guarantee of future results.
49
YOUR PLAN
Why consolidate?
If your plan allows for consolidation
of retirement plan assets, you can:
•
•
•
•
•
Keep all of your assets in one place
Receive fewer statements
Manage your assets more easily
Track overall performance more easily
Maintain asset allocation of choice more easily
Keep in mind that fees may apply when closing and consolidating accounts.
Information provided is general and educational in nature. It is not intended to be, and should not be construed as, legal or tax advice. Fidelity
does not provide legal or tax advice. Laws of a specific state or laws relevant to a particular situation may impact the applicability, accuracy,
or completeness of this information. Federal and state laws and regulations are complex and are subject to change. Fidelity makes no
warranties with regard to the information or results obtained by its use. Fidelity disclaims any liability arising out of your use of, or reliance on,
the information. Consult an attorney or tax professional regarding your specific legal or tax situation.
50
TRANSITION
Plan transition for traditional enrollment
51
Transition period begins:
[date]
Fidelity effective date:
[date]
Transition period ends:
[date]
You will receive your Welcome Guide signaling that you
can access your account virtually any time you want.
[date]
Retirement Benefits Line (800-294-4015) and Fidelity
NetBenefits® (netbenefits.com) become available for
active plan participants.
[date]
Enrolling
Getting started
52
ENROLLING
Eligible employees
It’s easy to enroll in your plan:
Enroll online at NetBenefits.com
Enroll by phone – call the Retirement
Benefits Line at 800-294-4015
Enter your beneficiary information in the
Your Profile section of netbenefits.com
¿Habla español? Para empezar, llame a nuestros representantes
dedicados que hablan español a la línea de Beneficios para la Jubilación de
Fidelity (Fidelity Retirement Benefits Line) al 800-587-5282.
53
ENROLLING
Eligible employees
It’s easy to enroll in your plan:
1
Complete enrollment online
2
54
Complete your
beneficiary online
Resources
We’re here to help
56
RESOURCES
We are here to help
Jim Josephson, CRPS
UBS Financial Services, Inc.
315.473.7127
james.josephson@ubs.com
http://www.ubs.com/fa/jamesjosephson
[Broker firm] and Fidelity Investments are independent entities.
57
RESOURCES
NetBenefits
www.netbenefits.com
For illustrative purposes only.
58
RESOURCES
Retirement Quick Check tool
Tool includes:
• Hypothetical illustration of personal income
needs at retirement
• Retirement savings scenarios illustrating
the potential impact of taking action such as:
– Increasing contributions
– Adjusting asset allocation
– Delaying retirement
The tool’s illustrations result from running a minimum of 250 hypothetical market
simulations. The market return data used to generate the illustration is intended
to provide you with a general idea of how asset mixes have performed
historically. Our analysis assumes a level of diversity within each asset class
consistent with a market index benchmark that may differ from the diversity of
your own portfolio. Please note that the projections do not reflect the impact of
any transaction costs or management and servicing fees; if these had been
included, the projected account balances would have been lower.
IMPORTANT: The projections or other information generated by the Retirement
Quick Check tool regarding the likelihood of various investment outcomes are
hypothetical in nature, do not reflect actual investment results, and are not
guarantees of future results. Results may vary with each use and over time.
Screenshots for illustrative purposes only.
59
RESOURCES
Are you on target to reach your goals?
Quickly assess your portfolio and investing
strategies to ensure you're on target.
Screenshots for illustrative purposes only.
60
RESOURCES
Monitoring your total finances
Use Full View® to see all your finances in one place –
including investment, bank and credit card accounts.
Screenshots for illustrative purposes only.
61
RESOURCES
Next steps
Social Security will probably not provide sufficient retirement income,
and you may need income to last 20, 30, or more years in retirement.
Here are steps you can take now
to take charge of your retirement readiness.
• Participate in your company’s 401(k) plan
• Develop an asset allocation strategy
• Review your investments
• Consider consolidating your assets
• Take advantage of Fidelity’s resources
62
RESOURCES
Next steps
www.netbenefits.com
800-294-4015
Retirement Benefits Line
Participant phone representatives available 8:30 a.m.
to 8:30 p.m. ET any day the New York Stock Exchange
is open. Our representatives are conversant in over
170 languages.
Voice Recognition System
Available virtually 24/7
¿Habla español? Para empezar, llame a nuestros representantes dedicados que hablan español a la
línea de Beneficios para la Jubilación de Fidelity (Fidelity Retirement Benefits Line) al 800-587-5282.
63
Important information
The information provided is general in nature. It is not intended to be, and should not be construed as, legal or tax
advice. Fidelity does not provide legal or tax advice. Consult an attorney or tax advisor regarding your specific
legal or tax situation.
Remember, investing involves risk. The value of investments will fluctuate over time and you may gain or lose money.
Unless otherwise noted, transaction requests confirmed after the close of the market, normally 4 p.m. Eastern time, or on weekends or
holidays, will receive the next available closing prices.
Exchanges between some funds may be subject to restrictions.
Fidelity Management & Research Company manages Fidelity Advisor mutual funds. [The Fidelity Advisor Freedom Funds are
managed by Strategic Advisers, Inc., a Fidelity Investments company.]
Retirement Checkup and Retirement Quick Check educational tools are developed and offered for use by Strategic Advisers, Inc., a
registered investment advisor and a Fidelity Investments company.
Not NCUA or NCUSIF insured. May lose value. No credit union guarantee.
Third-party trademarks and service marks are the property of their respective owners. All other trademarks and service marks are the
property of FMR LLC or an affiliated company. © 2010 FMR LLC. All rights reserved.
Before investing, consider the funds’ investment objectives, risks, charges, and
expenses. For a prospectus, or a summary prospectus if available, containing this
information, contact your investment professional or visit www.netbenefits.com.
Read it carefully before you make your investment choices.
431463.11.0
64
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
1.771073.114
0912