Deferred Compensation Program Austin Deeds
State of Florida Deferred Compensation Program Alex Sink Chief Financial Officer State of Florida
3 Keys To Prepare  For Retirement Florida   Retirement System (pension or Investment Plan) Supplemental Savings (Deferred ...
Your FRS Benefits Example 1 Example 2 Your years  of service 10 years 30 years Multiply by X X X X 1.6% 1.6% Benefit % Mul...
Deferred Compensation Plan Goals: <ul><li>Provide employees with one of the key retirement components. </li></ul><ul><li>H...
<ul><li>Making Pre-tax Investment (lowers your tax bill) </li></ul><ul><li>Immediate Credit (your money is credited to you...
Advantages of Pre-Tax Investing Basic   Savings Deferred   Comp. Account   (After - Tax) Account (Pre - Tax) Gross Income ...
Investment Providers   <ul><li>AIG Retirement Solutions </li></ul><ul><li>Great West Retirement Services </li></ul><ul><li...
How Do I Choose A Company? Publications and other information is available by phone or the Internet. www.myfloridadeferred...
www.myfloridadeferredcomp.com
Deferral Limits <ul><li>Annual deferral amounts: </li></ul><ul><ul><li>$15,500 in 2008  </li></ul></ul><ul><ul><li>Minimum...
The Magic of Compounding <ul><li>A difference of </li></ul>$206,191! $126,228 $332,479 John Linda Linda John Same $200 8.5...
Keys to Successful Investing <ul><li>Set realistic goals </li></ul><ul><li>Choose mutual funds that meet your risk toleran...
Advantages to Deferred Compensation Compared to Other Retirement Plans <ul><li>Flexibility : </li></ul><ul><li>Participant...
Questions?
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Short Presentation (2008)

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  • Short Presentation (2008)

    1. 1. Deferred Compensation Program Austin Deeds
    2. 2. State of Florida Deferred Compensation Program Alex Sink Chief Financial Officer State of Florida
    3. 3. 3 Keys To Prepare For Retirement Florida Retirement System (pension or Investment Plan) Supplemental Savings (Deferred Compensation., Individual Retirement Accounts, etc.) Social Security Benefits
    4. 4. Your FRS Benefits Example 1 Example 2 Your years of service 10 years 30 years Multiply by X X X X 1.6% 1.6% Benefit % Multiply by Average salary Of 5 best years To find your FRS benefit $34,000 $34,000 $5,400 a year $453 a month $16,320 a year $1360 a month
    5. 5. Deferred Compensation Plan Goals: <ul><li>Provide employees with one of the key retirement components. </li></ul><ul><li>Help employees secure additional retirement income. </li></ul><ul><li>Decrease employees’ federal income taxes by delaying a portion of your income until retirement. </li></ul>
    6. 6. <ul><li>Making Pre-tax Investment (lowers your tax bill) </li></ul><ul><li>Immediate Credit (your money is credited to your account each payday) </li></ul><ul><li>Over time, the account grows in value from interest earned and capital appreciation. </li></ul>How Deferred Compensation Works: It puts your money to work for you through:
    7. 7. Advantages of Pre-Tax Investing Basic Savings Deferred Comp. Account (After - Tax) Account (Pre - Tax) Gross Income $2,800 $2,800 Pre - Tax Investment $0 ($200) Gross Taxable Income $2,800 $2,600 W/H Tax ($355) ($325) S.S. & Medicare ($214.20) ($214.20) $2,230.80 After - Tax Investment ($200) $0 Spendable Income $2,030.80 $2,060.80 $2,060.80 After - Tax
    8. 8. Investment Providers <ul><li>AIG Retirement Solutions </li></ul><ul><li>Great West Retirement Services </li></ul><ul><li>ING </li></ul><ul><li>Nationwide Retirement Solutions (NRS) </li></ul><ul><li>T. Rowe Price </li></ul><ul><li>Charles Schwab (An Online Brokerage Account) </li></ul>
    9. 9. How Do I Choose A Company? Publications and other information is available by phone or the Internet. www.myfloridadeferredcomp.com  (850) 413-3162 Toll-free 1-877-299-8002
    10. 10. www.myfloridadeferredcomp.com
    11. 11. Deferral Limits <ul><li>Annual deferral amounts: </li></ul><ul><ul><li>$15,500 in 2008 </li></ul></ul><ul><ul><li>Minimum amount to contribute to Deferred Compensation remains $20/monthly or $10/biweekly pay. </li></ul></ul><ul><ul><li>You can also defer a percentage of your pay. This is a good way to increase your deferrals when you get a pay increase. </li></ul></ul>
    12. 12. The Magic of Compounding <ul><li>A difference of </li></ul>$206,191! $126,228 $332,479 John Linda Linda John Same $200 8.5% 35 Same $200 8.5% 45 Age Invest Yield Began at age $0 $50 $100 $150 $200 $250 $300 $325 $350
    13. 13. Keys to Successful Investing <ul><li>Set realistic goals </li></ul><ul><li>Choose mutual funds that meet your risk tolerance </li></ul><ul><li>Invest a fixed amount on a regular basis (dollar cost average) </li></ul><ul><li>Reinvest dividends </li></ul><ul><li>Focus on long-term results </li></ul><ul><li>Diversify (stocks, bonds and cash) </li></ul>
    14. 14. Advantages to Deferred Compensation Compared to Other Retirement Plans <ul><li>Flexibility : </li></ul><ul><li>Participants are able to change providers or deferral amounts at any point throughout the year. </li></ul><ul><li>There are six providers to choose from, and participants may have more than one provider. </li></ul><ul><li>Value : </li></ul><ul><li>Deferred Compensation provides minimal fees for its’ participants, with no administrative fees . </li></ul><ul><li>Deferred Compensation employees are also State Employees and make a salary, not a commission on your investment. </li></ul><ul><li>Excise tax exemption for withdrawing funds before 59 and a half. </li></ul>
    15. 15. Questions?

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