SECURITY BENEFIT. Advisor Program. MUTUAL FUNDS FOR IRA SEP/SIMPLE IRA 403(b)(7)

Transcription

1 SECURITY BENEFIT Advisor Program MUTUAL FUNDS FOR IRA SEP/SIMPLE IRA 403(b)(7)

2 Security Benefit Advisor Program SAVE AND CONSOLIDATE DIVERSIFY YOUR PORTFOLIO CREATE DYNAMIC STRATEGIES Security Benefit s Advisor Program allows you to construct your personal path to retirement, leveraging the expertise of more than 25 investment firms, across 35 different strategies, and 120 mutual funds.

3 Security Benefit Everyone will likely travel a different path to retirement, with unique goals and aspirations. But after more than a century of history, we ve learned that many people face similar challenges in reaching their retirement goals. Start Saving Early Many people are not starting to save early enough. Nearly half of workers between the ages of reported they have not saved anything for retirement. Many of us know the earlier we start saving, the easier it will be to reach our goal. But how much more will it cost you to wait? How much will you need to save to have $500,000 at retirement? TOTAL SAVINGS AGE AMOUNT SAVED TOTAL CONTRIBUTIONS EARNINGS 1 AT AGE $327/month $164,808 $335,192 $500, $669/month $256,896 $243,104 $500, $1,557/month $317,628 $187,370 $500, $5,786/month $486,108 $13,892 $500,000 Diversify Your Portfolio Some investment portfolios may be too concentrated. A well-diversified portfolio across asset classes may help balance your risk, but it s also important to choose investments from different companies to avoid overlapping styles. Multi-fund platforms allow you to benefit from the advantages of diversification. Savvy investors diversify investments across fund companies to make the most of a variety of fund managers and investing styles. Plan for a Long Retirement The average retirement age for Americans today is 61 2, down from age 65 just 10 years ago. However, statistics show the typical American couple has a 50 percent chance of at least one person living to age That means most people will need to plan for at least 20 to 30 years of retirement living; your time in retirement may be longer than your personal career. 1 Earnings based upon a 6% hypothetical rate of return and does not represent the actual return of any specific investment. 2 Gallup s Economy and Personal Finance survey, conducted April 4-14, Annuity 2000 mortality table published by the Society of Actuaries.

4 Security Benefit INTEREST EARNED $500,000 TOTAL SAVINGS Start Saving Early Starting to save early allows you to make smaller contributions over time to meet your retirement needs. CONTRIBUTIONS AGE 25 AGE 35 AGE 45 AGE 55 Diversify Your Portfolio Diversifying across asset classes, strategies, and fund companies helps to balance risk and avoid investment style overlap. Plan for a Long Retirement Taking into account longer life expectancies, most people will need to plan for 20 to 30 years of living in retirement. 1 in 2 Men 84 will live to Women 88 will live to Spouses 92 will live to Source: Annuity 2000 mortality table published by the Society of Actuaries. 4

5 Building an investment portfolio for your future takes time, careful planning, and a thoughtful combination of investment strategies. Nearly every client will begin and end at a different point on the retirement path, but along the way you will need flexibility to change strategies, reallocate assets, and diversify your portfolio. For more than 120 years, Security Benefit has been helping people save and plan for the future. Throughout that time, we ve developed a network of partnerships and relationships with some of the most well-known investment firms in the U.S. that are leaders across a variety of different asset classes or very specialized strategies. The Security Benefit Advisor Program places the power of this network into your hands. Security Benefit s Advisor Program is designed to provide you the ability to choose how you ll travel down your own path to retirement, leveraging the expertise of more than 25 investment firms, 120 mutual fund options, and 35 different strategies. Regardless of where you are in the retirement planning and saving process, the Security Benefit Advisor Program can be the vehicle to help you move forward To and Through Retirement.

6

7 Security Benefit Save and Consolidate Whether you re just beginning your retirement savings plans or need to consolidate assets, the Security Benefit Advisor Program provides you the flexibility to do both. There are three ways the program can help you save and manage your retirement assets. Save on Your Own Traditional IRA The Program allows you to start your own Individual Retirement Account (IRA) with as little as $100 with recurring contributions throughout the year. Your contributions to a traditional IRA are generally tax-deferred. Roth IRAs The Program also allows you to establish a Roth account. Although Roth contributions are not tax deductible, your contributions and earnings are tax-free once you reach age 59½, which can help you limit your overall tax liability during retirement. Save Through Your Employer s Retirement Plan Education and Non-Profit agencies 403(b)(7) School districts and non-profit agencies offer 403(b)(7) retirement plans to help employees save for retirement directly from their paycheck. Typically, there s no fee to participate and your contributions are tax-deferred. Small Businesses SIMPLE or SEP IRA The Savings Investment Match Plan for Employees (SIMPLE) IRA allows small companies to establish and make contributions to their employees retirement accounts. SEP (Simplified Employee Pension) IRAs are basic traditional IRAs established on behalf of the employee, and the employer can make discretionary contributions to the account. Consolidate Assets Retirement Rollovers Saving enough for retirement can be difficult enough. You shouldn t have to spend more time trying to manage multiple retirement accounts from former employers and fund providers. The Security Benefit Advisor Program makes it easy, allowing you to consolidate retirement assets from other plans or accounts into one flexible platform. You can roll over assets into your IRA from: 401(k), 403(b), and 457 accounts Other IRAs SEP/SIMPLE IRAs 7

8 Security Benefit Diversify Your Portfolio Managing your retirement accounts should be easy, simple, and all within one place. More importantly, you need the ability to build your portfolio with investments from talented firms that have excelled within your chosen asset classes or strategies. A well-diversified portfolio combines a good mix of investments from different fund companies that have demonstrated leadership different mutual funds 35+ asset classes and strategies 25+ different fund managers The Diversification Equation A well-diversified portfolio goes beyond one specific asset class or fund company. The Security Benefit Advisor Program is designed to provide you a wellrounded choice of investment options across a large set of sectors and strategies from some of the most popular funds and fund managers within the country. More Choices Asset classes and strategies can change as global economic forces evolve. That s why we work closely with financial advisors to incorporate new and relevant strategies into the fund lineup. And through the relationships we ve developed, we are able to offer more funds in new asset classes and sectors from premier fund companies and highly specialized, niche firms. Rebalance, Reallocate, Reinvest with No Transaction Fees Unlike many traditional fund platforms, which offer a limited choice of fund companies or charge fees to exchange shares between funds, the Security Benefit Advisor Program allows you the freedom to make changes to your portfolio. This allows you to exchange full or partial shares of a fund within the program without a fee. No asset allocation fees No rebalancing fees No fees for withdrawals or required minimum distributions No ticket charges or exchange fees 8

9 Security Benefit Create Dynamic Strategies The Security Benefit Advisor Program is a flexible platform with a full library of investment options across a myriad of asset classes and strategies that allow you to reach your retirement goals. Choose from a single fund or create a custom portfolio with specialized approaches and a global footprint. Diversify Portfolios Go beyond the traditional equity and bond portfolio and construct a portfolio to balance risk across global equity or bond markets. Portfolio Construction U.S. EQUITY Large cap blend Large cap growth Large cap value Mid cap blend Mid cap growth Mid cap value Small cap blend Small cap growth Small cap value FIXED INCOME Bank loan High yield bond Inflation-protected bond Intermediate government bond Intermediate term bond International bond Money market Multi-sector bond Short-term bond MULTI-ASSET Balanced Target date 4 Target risk INTERNATIONAL Emerging markets equity Foreign large blend Foreign large growth Foreign large value World allocation World stock 9 SPECIALTY/ SECTOR Energy Natural resources Precious metals Socially responsive Technology ALTERNATIVES/ NON-TRADITIONAL Commodities Long/Short equity Managed futures Multi-alternative Non-traditional bond Real estate

10 Fund Partners of the Security Benefit Advisor Program 4 The principal value of target date funds is not guaranteed at any time, including at or after the target date, which is the approximate date when investors turn age 65. The funds invest in a broad range of underlying mutual funds that include stocks, bonds, and short-term investments and are subject to the risks of different areas of the market. The funds emphasize potential capital appreciation during the early phases of retirement asset accumulation, balance the need for appreciation with the need for income as retirement approaches, and focus more on income and principal stability during retirement. The funds maintain a substantial allocation to equities both prior to and after the target date, which can result in greater volatility.

11 A well-diversified portfolio combines a good mix of investments across a variety of asset classes from different fund companies that have demonstrated leadership within the market.

12 Security Benefit Advisor Program A Closer Look Description: The Security Benefit Advisor Program offers more than 120 different investment options; assets are held by an independent custodian and administered by Security Benefit. Retirement Plan Types: 403(b)(7) 5, 457 5, SEP IRA, or SIMPLE IRA Minimum purchase: $25 per deposit through payroll deduction IRA or Roth IRA Minimum purchase: $5,000 or $100 per deposit Subsequent investments: $25 Automatic Account Rebalancing: Rebalance your account to a specific allocation: monthly, quarterly, semiannually or annually. Minimum investment amount: $25 per fund Dollar Cost Averaging: Invest in the market over time from a money market fund into any of the funds within the Program: monthly, quarterly, semiannually or annually. Monthly or quarterly on the first business day of the month Minimum investment of $25 per fund (from Dreyfus General Money Market Fund) Initiate in writing; change in writing or by phone Allocations and Exchanges: Make exchanges between any of the funds available within the Program with no additional fee. Some funds may limit the number of times you can make trades or apply a fee if an exchange is made within a certain time period. Minimum investment of $25 per fund Not designed for active trading. Security Benefit reserves the right to restrict the availability of telephone or other electronic transfers. Loans (403(b)(7) accounts only): Minimum $1,000. Maximum loan amount is the lesser of $50,000 less the highest outstanding loan balance during the preceding 12-month period, or 50% of the employee s nonforfeitable account value. Only one loan outstanding at a time (a second loan cannot be taken to pay off the current loan) Maximum term: Five years (unless loan is for a residence, in which case maximum term is 30 years) No prepayment allowed unless it is to pay off a loan s outstanding balance Loan origination fee: $100 Annual loan maintenance fee: $50 ($12.50 charged quarterly) Interest rate: Prime Rate plus 1.00% (based on Prime Rate on first business day of each month) Monthly loan payments made through electronic bank draft Administrative Fee: For account values of less than $25,000: $20 per year For account values of more than $25,000: None Sales Charge Waivers: Contingent deferred sales charges (CDSC) are waived for: death, required minimum distributions and domestic relations orders This product brochure must be accompanied by the Advisor Program fact sheet, which details the fees applicable to your account. 5 Roth accounts may be available if allowed by employer. 6 Dollar cost averaging does not assure a profit and does not protect against loss in a declining market. 10

13 For more than 120 years we ve been helping people, like you, overcome financial challenges and reach their goals. With a history of strength, expertise, and a singular focus on retirement, we ve dedicated our future to help you plan yours. Security Benefit, To and Through Retirement. These are general guidelines and are not meant to replace legal or tax advice for your specific situation. You should consider the investment objectives, risks, and charges and expenses of the investment options available under the Security Benefit Advisor Program carefully before investing. You may obtain a prospectus that contains this and other information about the mutual funds by calling our National Service Center at You should read the prospectus carefully before investing. Investing in mutual funds involves risk and there is no guarantee of investment results. Services and securities are offered through Security Distributors, Inc. (SDI), a subsidiary of Security Benefit Corporation ( Security Benefit ).

14 Save and Consolidate Make new contributions or roll over your qualified retirement plan assets into one flexible and cost-effective account. Diversify Your Portfolio Choose from a library of more than 120 mutual fund investments from some of the most well known fund companies in the industry. Create Dynamic Strategies Build your retirement portfolio, from a single-fund solution to custom portfolios. The Security Benefit Advisor Program offers flexibility, more options, and customized strategies to help you reach your retirement goals. Your path To and Through Retirement begins here. Looking for additional guidance? Talk to your Financial Advisor or call Security Benefit at SecurityBenefit.com ANNUITIES MUTUAL FUNDS RETIREMENT PLANS One Security Benefit Place Topeka, Kansas /03/01