Start a New Family Tradition in 2014: Save! It’s a new year, and the Capobianco family of Michigan would like to share its very special, year-round tradition with you: saving for the future. The tradition has been passed down from father to daughter, and now Julia Capobianco, a 25-year-old emergency technician from St. John Macomb Hospital in Warren, Michigan, is taking her dad’s advice to heart, “Save at least 10% of what you make!” “In my family, they’ve always had strong values in regards to saving,” Julia told us. “I hope I can inspire other young people and get across the message that it’s never too early to start saving! It’s a really good message to impart to the next generation.” What’s got Julia so excited about saving? Her answer: the end goal! Her retirement dream keeps her focused. “I would like to retire around 55,” Julia says, “then travel and just enjoy the rest of my life!”
Save at least 10% of what you make!
Sound too good to be true? It shouldn’t. By starting early and saving 10% of each paycheck, Julia’s goal is within reach. It’s simple…get started early. Julia started saving for retirement when she first joined St. John Macomb Hospital in 2009. She was 21 and just beginning college, but despite student loans and personal expenses, she saved 3% of each paycheck. This allowed Julia to maximize her employer matching contribution. Even by starting small, she was surprised to see what this would mean when she retired. “If I continued on the same path—and I wasn’t making very much money at the time—I would have over a million dollars in savings! That really inspired me. I said to myself: If I can do this when I’m making this much, just imagine what I can do in the future. Having that end goal in mind really inspired me to save.” A year later, she bumped up her retirement plan savings rate to 10% of her paycheck—the savings rate that her dad had advised. (continued on next page)
GOOD NEWS! 2014 Fee Holiday: The 0.15% basis point administrative fee will be waived for 2014! Plan administrative fees cover core plan features, including recordkeeping and other plan services that impact all associates. The fee normally appears on your quarterly statement as “Administrative Fee–Pro Rata.” This fee will be re-evaluated again in late 2014 and will be communicated to associates at that time.
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“I don’t even miss it when it’s taken out of my check,” said Julia. “I still have enough money to do the things I want to do. I don’t miss it one bit!”
Julia shares her story because she wants other young people to know that saving 10% is doable. “Four years ago, I had this conversation with a transporter,” she related to us. “I told him about my retirement savings plan, and he said that he couldn’t do that, that he needed his money now, had college expenses, and couldn’t afford to do it. A lot of people think, ‘Oh, I don’t have to start saving now, I’m not that old.’ But if you want to build yourself up and have a comfortable retirement, it’s never too early to start saving.” Focus on the end goal If you keep your dream for retirement in mind, saving doesn’t feel like a burden. “I think a lot of people don’t see the end goal or they don’t have an end goal in mind,” Julia says. “But when you present the facts and you’re able to see that if you save 10%, you could have this amount by so-and-so time, that’s inspiring. People should think about the goal, and then see the path to make that work.” To make sure she’s on course to meet her goals, Julia checks in regularly with her onsite Retirement Planning Consultant, Trecia Scribner. Julia sees these meetings as an opportunity to learn more about investments, different stocks, and how things fit together. “Monitoring your account is very important,” she says. “Just to keep updated with how things are going.” Meeting two to three times a year with Trecia means she can focus on her life today, without worrying about her future.
BUILD a better future for yourself.
INSPIRE others to do the same
Family values Julia’s commitment to save came from watching her father, who now wishes that he had saved more earlier. “He didn’t start saving as early, and found out later in life that he should have saved more. It really meant a lot to him to instill those values in me so that I wouldn’t be in that same situation.” Julia is already an inspiration to one new saver: Julia’s younger sister! She is also studying full-time to become a physician’s assistant and working part-time, and saves 10% of her pay. Julia’s well on her way to her retirement dreams, thanks to her dad’s wise advice. Building a better future for ourselves and inspiring others to do the same—there’s no better tradition you could start this season. How can you start a saving tradition in your family? •S tart early and keep saving. Because Julia started early, and raised her contribution rate to 10%, she expects to retire early without having to save heavily when she gets older. •M ake a budget (and stick to it). Always spend less than you earn. •L earn about your options. Meet with your local Retirement Planning Consultant to get informed about all your retirement options and set goals for your future. •V isit ah.trsretire.com. You’ll find the tools and resources to bring your retirement goals to life. • Questions? Call 877.346.7284 Option 1 or 2. • Share! If you have an opportunity, pass on your tradition to others!
2014 Contribution Limits The IRS has formally announced the 2014 savings limits for retirement plans. They remain the same as for 2013:
Did You Know?
• In 2013, the onsite Retirement Planning Consultant team serving all health ministries met with over 89,000 associates and conducted over 23,000 one-onone meetings. • And, 6.86% was the average contribution for active associates across all health ministries. • It’s a new year! Be sure to meet with your Retirement Planning Consultant in early 2014 and plan for your future!
•Y ou may contribute up to $17,500 in 2014. • If you are age 50 by December 31, 2014, a catch-up provision allows you to contribute an additional $5,500 in 2014.
For information on the diversification of your account: • Visit ah.trsretire.com •C ontact your onsite Retirement Planning Consultant •S peak with a Transamerica Participant Counselor by calling 877.346.7284 Option 2
Are your retirement assets diversified, George?
Indeed! I’ve allocated 70% in acorns, 20% in pine cones, and 10% in mixed berries.
Frequently Asked Questions Here are a few of the questions the Retirement Planning Consultant1 team frequently receives: •H ow do I increase my contribution? There are several ways to increase your contribution: - Visit ah.trsretire.com. Sign in to your account, go to “Manage,” and click “Contributions.” - Your contributions will automatically increase if you sign up for the Auto-Increase service2 through the website or with your local Retirement Planning Consultant. No future action would be necessary. - You can ask your local Retirement Planning Consultant for a Quick Increase brochure, then return the completed form to your Retirement Planning Consultant. • Do I have to re-enroll for the 403(b) during open enrollment? No, you can enroll at any time and you can change your contribution at any time. To get started: - Visit ah.trsretire.com. Below the banner in the “Take Action!” section, click “Enroll in the Program.” - Contact your local Retirement Planning Consultant. • How do I look at my account online? What is my password? Visit ah.trsretire.com. In the upper right corner of your screen you will see “Sign In.”
The Guaranteed Pooled Fund rate for 2014: 1.00% for all new deposits.3
Provide your “User Name,” which is your Social Security # and “Password” - For new users, click “New user? Get started now” and follow the prompts. - If you forgot your ID or password, click “Forgot your ID or password?” and follow the prompts.
Go Green Be sure to provide Transamerica with your current email address. Sign up for e-Statements. To get started, visit ah.trsretire.com or meet with your Retirement Planning Consultant.
PT-14251 (12/13) © 2013 Transamerica Retirement Solutions Corporation
The role of the Retirement Planning Consultant is to assist you with your savings and investment plan. There are no fees or commissions for meeting with your Retirement Planning Consultant, who is a registered representative with Transamerica Investors Securities Corporation (TISC), 440 Mamaroneck Avenue, Harrison, NY 10528. Transamerica Retirement Solutions is affiliated with TISC, but is not affiliated with Ascension Health.
You should evaluate your ability to continue the Auto-Increase service in the event of a prolonged market decline, unexpected expenses, or an unforeseeable emergency.
The Guaranteed Pooled Fund is a group annuity contract offered through Transamerica Financial Life Insurance Company, 440 Mamaroneck Avenue, Harrison, NY 10528, which provides the guarantee of principal and interest.
Start a New Family Tradition in 2014: Save! 2014 Contribution Limits Frequently Asked Questions Go Green