12080-pt_ppt - Trs

12080-pt_ppt - Trs

Investing 101 Retirement Planning Essentials Plan name here PRESENTERS NAME TITLE 1 Investing 101 according to Warren Buffet Always invest for the long term. 2 Investing 101

why is investing necessary? $20 $20 $20 1998 2005 2015 Investments are subject to market risk, including the loss of principal. 3 Investing 101 todays

goals See the long game Know the building blocks Answer a big question Know your resources 4 Investing 101 investing 101 SEEING A LONG-TERM APPROACH 5 Investing 101

the snowball effect Even a Little Can Add Up Even Even aa little little can can add add up up $25 a week Grows free from taxes until withdrawn

In 10 years $17,686 In 25 years $73,619 In 35 years $149,527 Assumptions: $25 weekly contributions, 6% annualized return. Assumed rate of return does not reflect the return of any specific investment and is not meant to imply or guarantee future results. Investing in any fund involves risk. An investments return and principal value will fluctuate, so your interest may be worth more or less than the original cost. There is no assurance that any fund will meet its stated objective. Source: Dinky Town 401(k) Savings Calculator, dinkytown.net 6 Investing 101 know the

building blocks Cash Bonds Stocks The value of bonds changes in response to changes in economic conditions, interest rates, and the creditworthiness of individual issuers. Bonds can lose value as interest rates rise, and an investor can lose principal. Stocks are subject to market risk, including the loss of principal. 7 Investing 101 about cash Lower risk/return

Higher risk/return Designed to preserve your investment Generally low risk and typically low return Usually very liquid Value fluctuates very little over time An investment in a cash equivalent investment choice is not insured or guaranteed by the FDIC or any other government agency. Although the investment seeks to preserve the value of your principal, it is possible to lose money by investing in the investment choice. These investment choices have generally provided a dependable level of stability and liquidity; nevertheless, the investment is still subject to credit risk and to liquidity risk. Money market funds invest in short term (less than one year), high quality debt obligations, such as Treasury bills, certificates of deposit and commercial paper, and most Money market funds strive to maintain a net asset value of $1 per share. They are not guaranteed by the FDIC or any other government agency. This type of investment choice strives to preserve principal and provide a modest dividend (subject to fluctuation), as well as liquidity. Nevertheless, the investment is still subject to credit risk and liquidity risk, and the risk that inflation will outpace the funds returns. It is still possible to lose money in a money market fund.

8 Investing 101 about bonds Lower risk/return Higher risk/return Promise of repayment from a borrower to a lender Susceptible to interest rate fluctuation As interest rates rise, bond values fall Riskier than cash equivalents, typically less risky than stocks Potentially higher returns than cash, typically lower returns than stocks over extended periods of time The values of bonds change in response to changes in economic conditions, interest rates, and the creditworthiness of individual issuers. Investment choices that invest in bonds can lose their value as interest rates rise and an investor can

lose principal. 9 Investing 101 about stocks Lower risk/return Higher risk/return Ownership in a corporation Most opportunity for gain (historically) More risk than bonds or cash equivalents (historically) Higher return potential than bonds or cash equivalents over extended periods of time All investments involve risk, including loss of principal and there is no guarantee of profits. Investors should carefully

consider their objectives, risk tolerance, and time horizon before investing. Transamerica Retirement Solutions does not provide investment advice. Clients and other interested parties must consult and rely solely upon their own independent advisors regarding their particular situation. Transamerica Retirement Solutions does not act as a fiduciary. 10 Investing 101 pop quiz! Name the asset class 11 1. Loans to governments, municipalities, or corporations 2. The most liquid investment

3. Typically have the most risk 4. Usually the safest investment 5. Typically have the highest returns Investing 101 Cash Bonds Stocks

what are mutual funds? Mutual funds are registered funds and are available by prospectus only. The prospectus tells you the objectives, risks, charges, and expenses of an investment. Read them carefully before you invest. Mutual funds are subject to market risk, including the loss of principal. 12 Investing 101 a few words about risk All investments involve risk, including loss of principal, and there is no guarantee of profits. Investors should carefully consider their objectives, risk tolerance, and time horizon before investing. There is no assurance that any fund will meet its stated objective. 13 Investing 101

are you comfortable doing this on your own? 14 Investing 101 diversification and asset allocation Diversification does not assure a profit or protect against market loss. 15 Investing 101 the need to

monitor and rebalance Rebalancing does not protect against losses or guarantee that an investor's goal will be met. 16 Investing 101 are you comfortable doing this on your own? 17 Investing 101 investment solutions from Transamerica Target date funds

PortfolioXpress SecurePath for Life Custom model portfolios Transamerica Managed Account Asset allocation funds 18 Investing 101 PortfolioXpress PortfolioXpress is a registered service mark of Transamerica Retirement Solutions Corporation (Transamerica). PortfolioXpress is available to plans that have online enrollment at no additional cost although the fees of the underlying investment choices continue to apply. PortfolioXpress presents a series of asset allocation models up to and through a designated retirement year. You are solely responsible for selecting the retirement year and risk preference (if applicable). In implementing the service, you agree to each asset allocation mix and automated rebalancing transaction that will take place over time within the account as you approach the selected retirement year. If you sign up, you should carefully review the

service agreement for details on any applicable fees and other terms and conditions that may apply. PortfolioXpress is designed as investment education. Transamerica does not provide investment advice. Retirement date portfolios are subject to the same risks as the underlying assets in which they invest. In general, the higher the portfolios allocation to stocks, the greater the risk. The principal value of the portfolio is never guaranteed, including at and after the target date. Diversification does not guarantee against loss in a falling market. 19 Investing 101 SecurePath for Life SecurePath for Life consists of a group variable annuity contract which offers certain guaranteed lifetime withdrawal benefits to participants. Although SecurePath for Life provides a guaranteed income base as well as a guaranteed income amount consisting of a guaranteed lifetime withdrawal benefit, the investment options available under the product are variable investments and may lose value. Certain withdrawals will reduce a participants income base, and therefore the guaranteed income amount. A plan sponsor may exercise certain rights under the group variable annuity contract that may terminate the guaranteed lifetime withdrawal benefits available to participants, including termination of the contract, termination of the plan, or the transfer of the assets left under the contract to another investment fund. Guarantees are

subject to the terms and conditions set forth in the contract and the prospectus. Group annuity contracts are issued by Transamerica Life Insurance Company (TLIC), 4333 Edgewood Road, NE, Cedar Rapids, Iowa 52499, which is licensed and offers products in all states, except New York. Guarantees of withdrawals provided under SecurePath for Life are supported by TLICs general account and are contingent on the claims-paying ability of TLIC. Group annuity contracts issued in New York are issued by Transamerica Financial Life Insurance Company (TFLIC), 440 Mamaroneck Avenue, Harrison, NY 10528, which is licensed in New York. Guarantees of withdrawals provided under SecurePath for Life are supported by TFLICs general account and are contingent on the claims-paying ability of TFLIC. Product features and availability may differ by state. 20 Investing 101 Disclosures Target date funds generally invest in a mix of stocks, bonds, cash equivalents, and potentially other assets, either directly or via underlying investments, and may be subject to all the risks of these assets. The investment allocations become more conservative over time: The percentage of assets allocated to stocks will decrease while the percentage allocated to bonds will increase as the target date approaches. The higher the allocation is to stocks, the greater the risk. The investment options principal value is never guaranteed, including at and after the target date. Asset allocation funds invest in a mix of stocks, bonds, cash equivalents, and potentially other types of assets, either directly or via underlying investments, and are generally considered diversified investment choices. Allocation funds may

be subject to all of the risks of the assets in which they invest. The higher the funds allocation to stocks, the greater the risk. Asset allocation and diversification do not assure better performance, cannot eliminate the risk of investment losses, and do not protect against an overall declining market. Managed Account: Ibbotson Associates Inc. is an independent, third-party, SEC-registered investment adviser that provides the investment advice and portfolio management methodologies for the Managed Account service. Neither Transamerica Retirement Solutions nor Ibbotson is responsible for selecting the core investment options available within the plan. Custom Model Portofolios: When considering a custom portfolio, first think about your personal circumstances, market outlook, risk tolerance, and the potential universe of appropriate investments. If you subscribe to the service, your account will be rebalanced to the portfolio option you select. From time to time, funds may be added to or removed from the custom portfolio mixes, or changes may occur to the portfolios target investment allocations. The custom model portfolios are subject to the same risks as the underlying assets in which they invest. The higher the portfolio's allocation to stocks, the greater the risk. The portfolio's principal value is never guaranteed. Maintenance of these portfolios is the responsibility of .Transamerica Retirement Solutions does not provide advice to your account. 21 Investing 101 doing it

yourself 22 Investing 101 SM Less than 65% 65 - 79% 80 - 94% 95 - 100% Rainy Cloudy

Partly Sunny Sunny Important: The projections or other information generated by the OnTrack tool regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and do not guarantee future results. Results derived from the OnTrack tool may vary with each use and over time. Please access the OnTrack tool for more information regarding the criteria and methodology used, the tools limitations and key assumptions and other important information. 23 Investing 101 youre not in this alone Three more ways we can help: 1 Review or change investment strategies 2 Consolidate your accounts 3 Provide useful information about your plan

Review the fees and expenses you pay, including any charges associated with transferring your account, to see if consolidating your accounts could help reduce your costs. Be sure to consider whether such a transfer changes any features or benefits that may be important to you. 24 Investing 101 questions Online: [Enter URL] By phone: [800-755-5801] Download the app: My TRSRetire 25 Investing 101 staying connected

@TRSretire @Transamerica 26 Investing 101 Transamerica Retirement Solutions TRSretire the rule of a simple way to estimate how long it will take to double your money 27 Investing 101

market timing vs. Average annual total returns (%) time in the market 9 8 7 6 5 4 3 2 1 0 None 5 best 10 best 20 best

Total missing days S&P 500 Index (1983-2013) Sources: Columbia Management Investment Advisers, LLC, Ned Davis Research, Inc. December 31, 1983 to December 31, 2013 28 Investing 101 25 best dollar cost averaging why it works Dollar Cost Averaging Unit Price Averaging of unit price Stock movement Dollar cost averaging does not guarantee a profit or protect against a loss in a declining market, so you should consider

your ability to continue investing through periods of adverse market conditions. 29 Investing 101 keeping losses in perspective The market not only goes up, it goes down. Dont panic when it does. 30 Investing 101 ignoring distractions especially the media 31

Investing 101 rational minds can act irrationally Which gray circle is bigger? 32 Investing 101 Which gray bar is longer? Are the gray horizontal lines parallel? avoiding investor misbehavior

They are the same size 33 Investing 101 They are the same width The horizontal lines are parallel DISCLOSURES The OnTrack Tool About Probability Illustrations, Limitations, and Key Assumptions The probability illustrations the OnTrack tool generates are based on Monte Carlo simulations of 500 possible investment scenarios for a given time period and assume a range of possible returns. The illustrations are generated according to models developed by Ibbotson Associates, a leading independent provider of asset allocation, analytical, and wealth forecasting software. The Your Retirement Outlook SM graphic reflects the difference between the models estimated annual income (which corresponds to a 70% probability of achieving your income goal in the investment scenarios simulated) and your annual income goal.

When forecasting the probability of achieving your income goal, the model employs different returns for different asset classes, based on Ibbotsons capital market assumptions developed using historical and forward-looking data. Current assets are assigned to asset classes based on Morningstar categories, and fees and charges inherent in investing are incorporated with an average fee assumption for each asset class. The historical and forward-looking benchmarks used for modeling the various asset classes are below. Return assumptions are updated annually; these updates may have a material impact on your projections. Return assumptions are estimates not guarantees. The returns you experience may be materially different than projections. You cannot invest directly in an index. 34 Investing 101 DISCLOSURES OnTrack Tool Benchmark Indexes Lower Risk/ Asset Class Volatility Forward-Looking Benchmark

Historical Benchmark Cash Citigroup 3-Month Treasury Bill Ibbotson SBBI T-Bill Index Short-Term Bonds Barclays U.S. Treasury 1-3 Yr. Term Index Ibbotson 2 Yr Treasury Index TIPS Barclays Capital U.S. Treasury: U.S. TIPS Ibbotson TIPS Index Aggregate Bonds

Barclays Capital U.S. Aggregate Index Barclays Capital U.S. Aggregate Index Long-Term Bonds Barclays Capital U.S. Long Credit A Index Ibbotson 25 Year Treasury Index High-Yield Bonds Barclays Capital U.S. Corporate High Yield Index Ibbotson High Yield Index International Bonds Citigroup WGBI

Ibbotson Global Bond Composite Large-Cap Stocks Russell 1000 Index CRSP Declines Index Mid-Cap Stocks Russell Midcap Index CRSP Declines Index Small/Mid-Cap Stocks Russell 2500 Index CRSP Declines Index Small-Cap Stocks

Russell 2000 Index CRSP Declines Index REITs FTSE NAREIT Equity REITs FTSE NAREIT Equity REITs MSCI EAFE Index MSCI EAFE Index MSCI Emerging Markets Index Ibbotson Emerging Market Composite DJ-UBSCISM

S&P GSCI Commodity Sector Indices Higher Risk/ International Stocks Volatility Emerging Markets Commodities 35 Investing 101 DISCLOSURES OnTrack tool Assumptions and Limitations Unless you choose otherwise or your employer supplies different information, the probability illustrations assume retirement at the age at which you qualify for full Social Security benefits and an annual retirement income goal of 80% of your projected final working salary. Social Security estimates are based on Social Security Administration methodology and your current salary. Probability illustrations also assume a consistent contribution percentage (unless youve chosen to periodically increase it) and asset allocation (no future changes or rebalancing), annual inflation of approximately 2%, and annual salary increases based on a calculation that incorporates multiple factors including a salary growth curve and inflation. Mortality assumptions are based on the Society of Actuaries tables.

The models are subject to various limitations. Returns associated with market extremes may occur more frequently than assumed in the models. Some asset classes have relatively limited histories; for these classes the models use historical data for shorter time periods. The model does not consider other asset classes such as hedge funds or private equity, which may have characteristics similar or superior to those used in the model. There is no guarantee that your income goal will be achieved or that the aggregate accumulated amount will ensure a specified annual retirement income. Results derived from the OnTrack tool may vary with each use and over time. IMPORTANT: The projections or other information generated by the OnTrack tool regarding the likelihood of various investment outcomes are hypothetical, do not reflect actual investment results, and do not guarantee future results. Moreover, even though the tools estimates are statistically sound based upon the simulations it runs, it cannot foresee or account for every possible scenario that may negatively impact your financial situation. Thus you should monitor your account regularly and base your investment decisions on your time horizon, risk tolerance, and personal financial situation, as well as on the information in the prospectuses for investments you consider. 36 Investing 101 DISCLOSURES Registered funds are available by prospectus only. Any mutual fund offered under the plan is distributed by

that particular fund's associated fund family and its affiliated broker-dealer or other broker-dealers with effective selling agreements such as Transamerica Investors Securities Corporation (TISC), 440 Mamaroneck Avenue, Harrison, NY 10528. The prospectus contains additional information about the funds, including the investment objectives, risks, charges, and other expenses. You should consider all such information carefully before investing. Contact us at 800-755-5801 or visit my.trsretire.com for a free prospectus, and read it carefully before making your investment choices. The information in this seminar is general in nature and subject to change. Neither we nor TISC give legal or tax advice. Applicable laws and regulations are complex and subject to change. For legal or tax advice concerning your situation, please consult your attorney or professional tax advisor. Transamerica Investors Securities Corporation (TISC), 440 Mamaroneck Avenue, Harrison, NY 10528, distributes securities products. Any mutual fund offered under the plan is distributed by that particular funds associated fund family and its affiliated broker-dealer or other broker-dealers with effective selling agreements such as TISC. Bank collective trusts funds, if offered under the plan, are not insured by the FDIC, the Federal Reserve Bank or any other government agency and are not registered with the Securities and Exchange Commission. Group annuity contracts, if offered under the plan, are made available through the applicable insurance company. Any guarantee of principal and/or interest under a group annuity contract is subject to the claims-paying ability of the applicable insurer. Certain investment options made available under the plan may be offered through affiliates of Transamerica Retirement Solutions and TISC. These may include: (1) the Transamerica Funds (registered mutual funds distributed by Transamerica Capital, Inc. (TCI) and advised by Transamerica Asset Management, Inc. (TAM)); (2) the Diversified Investment Advisors Collective Trust, a collective trust fund of Massachusetts Fidelity Trust Company (MFTC) (includes the Stable Pooled Fund); (3) group annuity contracts issued by Transamerica Financial Life Insurance

Company (TFLIC), 440 Mamaroneck Avenue, Harrison, NY 10528 (includes the Stable Fund, the Fixed Fund, the Guaranteed Pooled Fund, and SecurePath for Life ); and (4) group annuity contracts issued by Transamerica Life Insurance Company (TLIC), 4333 Edgewood Road NE, Cedar Rapids, IA 52499 (includes Secure Path for Life ). has selected Transamerica Retirement Solutions as your retirement plan provider, but there are no other affiliations between and Transamerica or its affiliates, TISC, TCI, TAM, MFTC, TFLIC, or TLIC. 12080PT_PPT (05/15) 2015 Transamerica Retirement Solutions Corporation 37 Investing 101

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