Purpose of slide: Assuring employees that while the topic we are covering today may be complicated it is definitely within their abilities. Personal story or statistic: Sample Script: (Read slide) During this presentation, we will outline important topics, questions and challenges to consider as you are nearing retirement. Most of you are probably 10-15 years away from retirement, which is a lot closer than you might think but far enough away to still make changes that can positively affect saving for retirement.
Purpose of slide: Understand percentage of income from three sources of retirement income. Personal Story or statistic: Sample Script: This slide identifies the main sources of income for retirees according to a study performed by the Social Security Administration. As you can see, Social Security only provides 40% of income replacement. Employer-sponsored retirement plans and personal savings will need to provide 60%. Social Security and employer contributions made to a retirement plan should be viewed as supplements to your main retirement income not as the primary income source. Note to Presenter: The workbook covers this topic on page 5.
Purpose of slide: To outline what will be covered during the presentation. Personal stories: None Stats: None Sample script: Transfer Plan: Before we begin, I want to talk briefly about the 30-day blackout notice you received, which explains the new investment options offered under the retirement plan, the date the service will change, etc. (Review 30-day notice.) Please turn to page 2 of your workbook: We will take a look at the steps we are going to go through today to help you start or continue taking steps toward a more secure retirement. Today we are covering: The details of your employer’s retirement plan. The basics of enrolling in the plan, which include help determining your salary deferral percentage and how to select investment options. And finally, the services and resources you will have available to you after you leave today.
Purpose of slide: To explain diversification and what it means when selecting investment options. Sample stats or stories: Eggs in different baskets Sample script: Did any of you notice that each one of the pie charts on page 15 and 16 had many categories, not just one? The practice of investing in many different categories is called diversification. Diversification is best explained as putting your eggs in different baskets. This is accomplished by spreading retirement funds across different investment options. The different investment options you have to choose from are organized by the level of risk they involve. By spreading retirement funds around in different risk categories, the risk is also spread around. If the Small/Mid U.S. Equity Investment Options in Chart A were to lose their value, the overall balance of the portfolio would drop by the same amount . If, however, someone diversified (spread their contributions around), and spread retirement funds between the five categories, and the Small/Mid U.S. Equity category decreased in value, while the others remained the same, the retirement funds would only decrease slightly in value. Tip #4 : Spreading retirement funds across several investment option categories may reduce risk. We will next walk through a tool called the Investor Profile Quiz that can help you determine your risk tolerance.
USE WHEN PLAN OFFERS “DO IT FOR ME” AND “DO IT MYSELF” INVESTMENT OPTIONS Purpose of slide: To discuss what type of investor you are Personal stories or stats: None Sample script: Take a moment to think about what type of investor you are. Are you a “Do-it-myself” investor? Or a “Do-it-for-me” investor? There are some things to keep in mind to help you determine which type you are. For example, you may be a “Do-it-myself” investor if: (read bullets from slide) You may be a “Do-it-for-me” investor if: (read bullets from slide) If you feel like you may be both or somewhere in the middle, that’s okay—just keep listening while I explain further and hopefully, you’ll have a better idea soon.
USE WHEN PLAN OFFERS “DO IT FOR ME” AND “DO IT MYSELF” INVESTMENT OPTIONS Purpose of slide: To help explain the Do-it-myself approach Personal stories or stats: None Sample script: For folks who think they might be more of a “Do-it-myself” investor, you may want to choose which investment options you wish to invest in. We also have tools for you to use to assist you with choosing your own investment options. The Investor Profile Quiz you took earlier may help you determine how comfortable you are with risk. You can use knowledge to help you choose from the investment options available to you. The Investor Profile Quiz is available on our website at www.principal.com or I have some additional copies up here at the front that you can reference after the meeting.
USE WHEN PLAN OFFERS PRINCIPAL LIFETIME PORTFOLIOS Purpose of slide: To help explain the Principal LifeTime portfolios Personal stories or stats: None Sample script: The Principal Lifetime portfolios aligns you with one portfolio that is closest to your retirement year. The portfolio is continually managed by professionals and reallocated to become more conservative as your target retirement date approaches. Benefits include: Is comprised of a diverse selection of portfolios Is managed toward a specific target date Simple choice for employees who seek assistance and less involvement The selected portfolio automatically gets more conservative as your target retirement date approaches IF USING THE EASY ENROLLMENT FORM To choose this investment option, simply select it on your enrollment form and provide your expected retirement age. IF NOT USING THE EASY ENROLLMENT FORM To choose this investment option, simply select it on your enrollment form. For more information on Principal LifeTime portfolios, view the insert in the back pocket of the enrollment kit. <pull insert out and show meeting attendees>
Kip Prahl Associates
The road toward
Don Recker and Bob
• Look back to 2008
• Current Market Activity
• Taking the right steps
Creative Planning, Inc.Creative Planning, Inc.
(913) 338-2727(913) 338-2727
While investors added a
record $230 billion into:
In 2002, investors pulled a
record $27 Billion out of:
Irrational behavior led
many investors to do the
exact opposite of what was
required in both instances.
Investment Fund Mapping
Map to similar investment options
Stay fully invested in the market
Maintain your current investment strategy
Income from government-
Sources for Retirement Income
Source: Social Security Administration 2008
• Your employer’s retirement plan
• Plan basics
– Part I: Contributing
• Maximize Match
• Maximize Contributions
– Part II: Investing
• Disciplined Approach
• Working with us
The following charts illustrate diversification.
Chart A is an example of a portfolio with
investment options in only one asset class, and
Chart B is an example of a diversified portfolio
with investment options across asset class
This chart is for illustrative purposes only.
No investment strategy, such as diversification, can guarantee a profit or protect against loss in periods
of declining value.
What Type of Investor Are You?
• You may have time to regularly
monitor investment options and
rebalance as needed
• You may feel comfortable with
concepts of investing
• You may want to be very
involved in retirement planning
What type of investor are you?
• You may not have time to monitor
• You may not feel comfortable
with concepts of investing
• You may not have time to
Choose from the
• Evaluate your tolerance of risk
• Adjust for your time horizon
• Establish a rebalance schedule
• Monitor periodically
CP Model Portfolios
-Investment selection based on risk
- Multiple fund families
- Actively managed by Creative Planning
Registered Investment Advisor
-Creative Planning recognized in Worth and
Barron's magazines as a leader in the industry
“Be fearful when others are greedy and be
greedy when others are fearful.”
- Warren Buffett
Questions regarding your investment options or choices contact: