Your Retirement
Your Retirement:
Plan Today. Play Tomorrow.
2006
About this presentation:
This presentation includes the following plan:
• FedEx Kinko’s Office and Print Services, Inc., 401(k) Retirement
Savings Plan (FedEx Kinko’s 401(k) Plan)
This presentation is for participants in the FedEx Kinko’s Office and
Print Service, Inc.
Your Retirement
Question:
What percentage of workers in the U.S. say they or
their spouses are currently saving for retirement?
a. 48%
b. 58%
c. 68%
d. 78%
Employee Benefit Research Institute
Your Retirement
Question:
What percentage of workers or their spouses have
calculated how much money they are likely to need
in retirement?
a. 42%
b. 52%
c. 62%
d. 72%
Employee Benefit Research Institute
Your Retirement
Your Retirement:
Plan Today. Play Tomorrow.
401(k) Plan
(Both you and FedEx
contribute)
Social
Security
Personal
Savings
(FedEx contributes 50%)
(You contribute 100%)
Your Retirement
Question:
What percentage of baby-boomer households are
estimated to be accumulating sufficient assets to maintain
their current standard of living in retirement?
a. 40%
b. 50%
c. 60%
d. 70%
Congressional Budget Office
Your Retirement
Question:
Among individuals age 50 to 59 – people approaching
retirement – what is the average balance in their 401(k)s?
a. $ 88,658
b. $112,854
c. $288,842
d. $388,125
Employee Benefit Research
Institute (EBRI), 2003
Your Retirement
Your Retirement:
Plan Today. Play Tomorrow.
401(k) Plan
(Both you and FedEx
contribute)
Social
Security
Personal
Savings
(FedEx contributes 50%)
(You contribute 100%)
Your Retirement
FedEx Kinko’s 401(k) Plan:
The Details
• What Is It?
–
–
–
–
A convenient way to save $$$
Company match (discretionary) from FedEx
An opportunity for more money down the road
A great way to lower your taxes
Your Retirement
FedEx Kinko’s 401(k) Plan:
Eligibility
• You can start contributing after one year of service
– A year of service is any 12 months in which you are employed by FedEx
Kinko’s, including vacation, approved leaves of absence (up to one year),
sick leave, or maternity leave.
Your Retirement
FedEx Kinko’s 401(k) Plan:
Pre-tax Contributions
• You may contribute:
– 1% - 50% of Eligible Earnings
• Contributions deducted from pay before tax
• Tax-deferred investment earnings
• FedEx Kinko’s matches:
– 100% of your total pre-tax contributions up to 5% of eligible earnings
• 100% immediate vesting
• Nine investment funds
Your Retirement
401(k) Plan: How the FedEx Match Works
You contribute . . .
* Assumes $24,000
annual salary, paid
semi-monthly
Percentage
Amount*
FedEx match
gives you . . .
1%
$10
$5
2%
$20
$10
3%
$30
$15
4%
$40
$20
5%
$50
$25
6%
$60
$30
7%
$70
$30
8%
$80
$30
Your Retirement
401(k) Plan: How the Match Works
$5,200
$4,160
FedEx
Kinko’s
match
$2,600
$3,120
$2,080
Your
contribution
$2,080
$1,560
$2,600
$1,040
$1,040
$2,080
$1,560
$520
$1,040
$520
Year
1
2
3
4
5
*Assumes $10 contribution per week with a $10 match and no investment earnings.
Your Retirement
401(k) Plan: How the Match Works
$122,300
$61,150
FedEx
Kinko’s
match
$78,900
Your
contribution
$49,400
$39,450
$29,300
$15,600
$61,150
$24,700
$39,450
$6,300
$14,650
$7,800
Year
$3,150
$3,150
$7,800
5
10
$24,700
$14,650
15
20
25
30
* Assumes $10 contribution per week with a $10 match and 8% annual return.
Your Retirement
FedEx Kinko’s 401(k) Plan:
Catch-up Contributions
• To be eligible for the Catch-up contribution, you must be:
– 50 years of age or older by the end of the calendar year, and meet one of the
following conditions:
• You meet the annual IRS maximum contribution limit ($14,000 in 2005); or
• You meet the plan maximum contribution limit of 50%.
• The maximum pre-tax contribution limit is 50% of your eligible
compensation, subject to annual IRS limits.
• If you will attain age 50 by the end of the calendar year, you may
elect to make an additional $4,000 catch-up contribution beyond the
$14,000 maximum.
Your Retirement
FedEx Kinko’s 401(k) Plan:
Roll-over Contributions
• If you have money in a 401(k) plan with another employer, you can
transfer (roll over) that account to the FedEx Kinko’s 401(k) Plan.
• You must be a plan participant before you can roll over
contributions.
• After-tax contributions are not accepted into the Rollover account.
Your Retirement
FedEx Kinko’s 401(k) Plan:
Investment Options
• Nine Vanguard® Investment Funds
–
–
–
–
–
–
–
–
–
Vanguard Admiral™ Treasury Money Market Fund
Vanguard Total Bond Market Index Fund Institutional Shares
Vanguard Wellington™ Fund
Vanguard 500 Index Fund
Vanguard Windsor™ fund
Vanguard PRIMECAP Fund
Vanguard Extended Market Index Fund
Vanguard International Value Fund
Vanguard Total International Stock Index Fund
Your Retirement
FedEx Kinko’s 401(k) Plan:
Investment Options
RETURN
STOCKS
CASH
BALANCED
BONDS
Vanguard Total Intl Stock Index Fund
Vanguard International Value Portfolio
Vanguard Extended Market Index Fund
Vanguard PRIMECAP Fund
Vanguard Windsor™ Fund
Vanguard 500 Index Fund
Vanguard Wellington™ Fund
Vanguard Total Bond Market Index Fund Institutional Shares
Vanguard Admiral™ Treasury Money Market Fund
RISK
Your Retirement
FedEx Kinko’s 401(k) Plan:
Receiving Your Money
• If you need your 401(k) money while you’re still working at
FedEx Kinko’s, you can:
– Take a loan (2 loans allowed)
– Make a withdrawal
• Age 59 ½
• Hardship
Your Retirement
FedEx Kinko’s 401(k) Plan:
Receiving Your Money
• If you terminate from all FedEx companies, you can:
– Leave your account balance invested in the FedEx Kinko’s 401(k) Plan;
– Roll over your account balance into another 401(k) plan or IRA; or
– Take the distribution, and pay taxes and penalties.
Your Retirement
Question:
What is the most important factor in Americans’ decision
to retire?
a. Employer pressure
b. Health decline
c. Family reasons
d. Qualify for Social Security benefits
National Council on the Aging
Your Retirement
Question:
At what age do Americans qualify for full
Social Security benefits?
a. 65
b. 66
c. 67
d. Varies by year of birth
Employee Benefit Research Institute
Your Retirement
Question:
What is the average monthly Social Security payment
for retired workers?
a. $950
b. $1,450
c. $1,950
d. $2,450
Employee Benefit Research Institute
Your Retirement
Your Retirement:
Plan Today. Play Tomorrow.
401(k) Plan
(Both you and FedEx
contribute)
Social
Security
Personal
Savings
(FedEx contributes 50%)
(You contribute 100%)
Your Retirement
Social Security
• Overview
– Established in 1935
– Paid for by you and your employer (FedEx)
• Provides protection for:
–
–
–
–
Retirement
Disability
Health
Death
Your Retirement
Social Security
• To receive a Social Security retirement benefit you must:
– Have at least 10 years of work credits
– Be at least age 62 (reduced benefit)
– Meet the earnings limitations
Your Retirement
Social Security
• How much can you expect in benefits?
– The more you earn while working, the higher your Social Security benefit
in retirement (but the lower your replacement rate).
– The lower your earnings while working, the higher the percentage
of your earnings Social Security replaces.
– Obtain a free Personal Earnings and Benefit Estimate Statement
from Social Security upon request.
Your Retirement
Social Security
• When to File
– Three months before your Social Security normal retirement age
or when you stop work
– The year you plan to retire, call Social Security to get an estimate
and ask when to file
– For general information and to schedule an appointment: 1-800-772-1213
• What You Will Need
– Your Social Security card
– Proof of your age
– Your W-2 Forms for the past two years, or copies of your last two federal
income tax returns
Your Retirement
Your Retirement:
Plan Today. Play Tomorrow.
401(k) Plan
(Both you and FedEx
contribute)
Social
Security
Personal
Savings
(FedEx contributes 50%)
(You contribute 100%)
Your Retirement
Personal Savings
• Your own personal savings add to your retirement savings
package.
• Most financial planners recommend that your retirement income
should be between 75-85% of your pre-retirement income.
• If your 401(k) savings when combined with your anticipated Social
Security retirement benefits aren’t equal to the amount you need to
retire, the difference will need to come from your personal savings
outside of FedEx Kinko’s.
• Consider increasing your 401(k) contributions, too.
Your Retirement
Personal Savings: Save as Much as You Can
– As Soon as You Can
• Assumes $30,000 salary, 8% return, 30 years
$529,500
$353,000
$176,500
$135,000
$45,000
5%
($28.85 weekly)
$90,000
10%
($57.69 weekly)
15%
($86.54 weekly)
Your Retirement
Resources and Contacts
• Summary Plan Description (SPD)
• www.vanguard.com or Vanguard at 1-800-523-1188
• www.ssa.gov
Your Retirement
For more information about any fund, including investment objectives,
risks, charges, and expenses, call The Vanguard Group at 1-800-5231188 to obtain a prospectus. The prospectus contains this and other
important information about the fund. Read and consider the
prospectus information carefully before you invest. You can also
download Vanguard fund prospectuses at www.vanguard.com.
Vanguard, Admiral, Wellington, and Windsor are trademarks of The Vanguard Group, Inc. 500 is a trademark of The
McGraw-Hill Companies, Inc., and has been licensed for use by The Vanguard Group, Inc. Vanguard mutual funds are
not sponsored, endorsed, sold, or promoted by Standard & Poor’s, and Standard & Poor’s makes no representation
regarding the advisability of investing in the funds. All other marks are the exclusive property of their respective owners.