Financial fitness: Get yourself in financial shape

Deferred Comp Bridging Your Retirement Gap
SECOND QUARTER
2013
Financial fitness: Get yourself in financial shape
Start learning how at the 2013 Financial Fitness Expos!
State employees will be afforded two hours of paid
time off, plus reasonable travel time, to attend
James Bruce Convention Center
303 Conference Center Drive, Hopkinsville
Tuesday, August 20
10:00 a.m. – 3:00 p.m. C.D.T.
877.452.3836
Muhammad Ali Center
144 N. Sixth Street, Louisville
Wednesday, September 18
10:00 a.m. – 3:00 p.m. E.D.T.
502.438.9528
Frankfort Convention Center
405 Mero St., Frankfort
Tuesday, September 17
10:00 a.m. – 3:00 p.m. E.D.T.
502.564.5335
Ashland Plaza Hotel
& Convention Center
1 Ashland Plaza, Ashland
Tuesday, October 15
10:00 a.m. – 3:00 p.m. E.D.T.
606.329.0055
one Expo. If you are not a state employee, you will
need to check with your employer regarding paid
time off to attend an Expo. All employees should
coordinate their attendance with their supervisor
and will be provided a Certificate of Attendance
at the Expo to present to their employer upon
return to work. If you have any questions, please
call Chris Helvey, Claudia Morton or a member
of the Marketing Team at 1.800.542.2667.
2013 Financial Fitness Expos
Pre-registration is not required for the 2013 Expos.
(continued on page 3)
KDC bids ING U.S. farewell
and welcomes back NRS
The Kentucky Deferred Compensation Plans (KDC) transitioned from
ING U.S. to Nationwide Retirement Solutions (NRS) for third-party
recordkeeping, marketing and communications services July 1, 2013.
Details about the transition were sent directly to participants prior
to the transition and are also available on the KDC Plan website
at www.kentuckydcp.com. If you have any questions, please call
Chris Helvey at 502.573.9188 or 1.800.542.2667.
KDC would like to take this opportunity to express its appreciation
for the loyal service and hard work ING U.S. has given to our program
and participants throughout the life of the contract. ING U.S.
worked with KDC to create and present award-winning programs.
ING Plan Representatives helped thousands of Kentuckians enroll
in the Plans and tens of thousands to increase their deferrals. They
brought many exciting and innovative features to KDC participants,
including Live Chat and the Mobile App. Their staff has helped
thousands of Kentuckians to have the opportunity for a better
retirement, and KDC hereby extends our best wishes to all those
at ING U.S. who labored on behalf of the Kentucky participants.
Bob Brown, KDC Executive Director, accepted
the Eddy Award for second place in the Special
Projects category for our Road Map to Retirement
campaign at the Pensions & Investments annual
East Coast Defined Contribution Conference in
March 2013.
Fixed Contract Fund Rate for Third Quarter 2013
A blended net crediting rate that will yield an annualized 1.52% is in effect
for the third quarter 2013. Last quarter the yield was an annualized 1.68%.
PAGE 1
KDC Customer Service Line: 1.800.542.2667 or 502.573.7925
Plan website: www.kentuckydcp.com
Fund Spotlight is an ongoing series in the KDC Connection featuring information regarding
investment categories and options in the KDC Spectrum. This article is for educational
purposes only. You should carefully read and review all investment information prior to
making any investment decisions.
Fidelity® Contrafund®
This quarter’s spotlight provides information about the Fidelity Contrafund (FCNTX).
This is the Large-Cap core specialty option in Tier 4 of the KDC Spectrum.
Donna Richardson
Certified Retirement Counselor®
Meet
Donna Richardson
Donna Richardson is a KDC Plan
Service Representative with over 14
years of financial services experience,
specializing in state supplemental
retirement plans and mutual fund
investing.
Donna assists state, county and city
government employees, public school
and state university employees in the
Far-West Kentucky region with their
KDC accounts. She helps with setting
retirement objectives and strategies,
explains investment options, offers
one-on-one account reviews and
answers questions about KDC.
Donna is very effective in explaining
how participation in Kentucky Deferred
Compensation can help generate
additional retirement income to
supplement other retirement benefits.
Last year, she helped over 700 public
employees enroll with KDC.
Donna holds FINRA series 6 and 63
licenses and a CRC® (Certified
Retirement Counselor) designation
from InFRE (International Foundation
for Retirement Education). She can
be reached at 270.724.1586.
Registered Representative of
ING Investment Advisors, LLC,
member SIPC.
SECOND QUARTER
PAGE 2
2013
The Fund is a diversified equity fund with a large-cap growth bias. Fidelity’s
investment approach seeks companies they believe are poised for durable multiyear
earnings growth that is not accurately reflected in current valuation. The emphasis
is on companies with “best of breed qualities,” including those with a strong
competitive position, high returns on capital, solid free cash flow generation and
management teams that are stewards of shareholder capital. Fidelity strives to
uncover these investment opportunities through in-depth fundamental analysis
conducted in concert with Fidelity’s global research team.
The Fund’s 10 largest holdings (out of 373 holdings) as a percentage of total net
assets as of March 31, 2013 were:
1. Google Inc. A
5.5%
2. Apple Inc.
4.9%
3. Berkshire Hathaway Inc. Class A
3.8%
4. Wells Fargo & Co.
2.5%
5. The Coca-Cola Co.
2.5%
6. The Walt Disney Co.
2.3%
7. Noble Energy Inc.
2.2%
8. Visa Inc. Class A
1.9%
9. Biogen Idec Inc.
1.8%
10. TJX Companies Inc.
1.8%
The top 10 holdings are presented to illustrate examples of the securities in
which the fund may invest, and may not be representative of the fund’s current
or future investments. The top 10 holdings exclude money market investments
and futures contracts, if any. Depositary receipts are normally combined with
the underlying security.
Stock markets, especially foreign markets, are volatile and can decline
significantly in response to adverse issuer, political, regulatory, market
or economic developments. Foreign securities are subject to interest rate,
currency exchange rate, economic and political risks.
It may be appropriate to include a specialty Large-Cap core fund as part of your
overall investment allocation if you are seeking long-term capital appreciation.
All investments are subject to risks. Past performance does not guarantee
future results.
Your local Plan Service Representative can help you understand how this option
might fit into your investment strategy and time horizon. Fund fact sheets
for all investments in the Spectrum are available on the Plan website or by
calling 1.800.542.2667.
(continued from page 1)
Financial fitness: Get yourself in financial shape
Talk with professionals
Learn more at workshops
•
Setting Your Financial Workout Plan
•
•
•
Local KDC staff and Plan Service registered representatives
will be available to review your account(s) with you in
person and help you make changes.
Mutual fund representatives can discuss the investment
options and answer your fund questions.
2013
Financial
Fitness Expos
Understanding KDC’s Spectrum of Investment Options
10:15 a.m. and 1:15 p.m.
All locations
When You Don’t Want to be the Biggest Loser
How to Read and Understand Your Account Statement
Kentucky Retirement Systems, Social Security and
KTRS representatives will also be present as
schedules permit.
11:15 a.m. and 2:15 p.m.
Find out about the Roth 401(k) and Deemed IRA
programs, discuss payout options and obtain loan
information.
Refreshments and prizes
All locations
Go to the Cyber Café to enjoy cookies and fresh popcorn as
you take the Expo survey and earn a special prize. Additional
door prizes will be awarded throughout the day. You must
be present to win.
Retiree Corner
Managing cash flow in retirement
If you want to stretch your retirement savings to
make them last, here are some money management
strategies to consider.
Delay if you can. Try to postpone withdrawing money from
your retirement accounts. This will give your account assets an
opportunity to continue accumulating tax-deferred for as long
as possible. If the income from your pension and Social Security,
if applicable, does not cover your living expenses, you may want
to consider drawing down what you need from bank accounts
or taxable brokerage accounts first. Your choice of which
accounts to access, the amounts and the timing can affect
how well you live in retirement.
Withdraw wisely. Retirement experts believe smaller
withdrawals from your retirement accounts in the first few
years after you retire could help minimize your risk of running
out of money. Some experts suggest retirees should draw
down no more than four percent from their portfolio each year,
adjusting that rate gradually higher to account for inflation. Your
withdrawal strategy should be based on your age, life expectancy,
living expenses and rate of return on your investments.
Create a budget. One way to establish a budget is to track
your expenses over a few months. Write down what you spend
on necessities, such as housing, food, taxes, and insurance, as
well as discretionary expenses, such as travel and entertainment.
Once you have a budget in place, it is easier to calculate how
much you need to withdraw from your accounts. Knowing where
your money goes can empower you to make the most of it.
Review regularly. To help stay on track, you and your spouse
or partner may want to review your income sources, expenses,
investments and asset allocation every year. You might want
to seek assistance from a professional financial planner.
Articles by ING do not provide tax or investment advice. Please consult a tax adviser or attorney before making a tax-related investment/insurance decision.
PAGE 3
Actions of the
Board of Trustees
The Authority Board of Trustees (Board) met for its
regularly scheduled quarterly meeting on June 7, 2013
and took the following actions:
•
Quarterly calendar of events
2013 Financial Fitness Expos:
Get Yourself In Financial Shape
James Bruce Convention Center, Hopkinsville
Tuesday, August 20
10:00 a.m. – 3:00 p.m. C.D.T.
Approved the minutes of the March 13, 2013 regular
Frankfort Convention Center, Frankfort
meeting, as submitted.
Tuesday, September 17
10:00 a.m. – 3:00 p.m. E.D.T.
•
Accepted a recommendation from outside legal counsel
to adopt the proposed Market Timing Policy with
•
Muhammad Ali Center, Louisville
Wednesday, September 18
Nationwide Retirement Solutions.
10:00 a.m. – 3:00 p.m. E.D.T.
Accepted a recommendation from outside legal counsel
Ashland Plaza Hotel & Convention Center, Ashland
to enable legal counsel and Authority staff to finalize the
Tuesday, October 15
ING Exit Agreement.
10:00 a.m. – 3:00 p.m. E.D.T.
Next quarterly meeting
The next quarterly meeting is set for Friday, August 30, 2013
at 9:00 a.m. at the Authority office in Frankfort at
101 Sea Hero Road, Suite 110.
Lunch and Learn Session at the
Frankfort Office, 12:00 p.m. – 1:00 p.m.
Kentucky Deferred Compensation — What Is In It For Me?
• Wednesday, July 31
To make your Lunch and Learn reservation,
call Carol Cummins at 502.573.2120.
State employees special notice
Board of Trustees Meeting
The current budget bill mandated that the June 30, 2013 regular payroll
101 Sea Hero Road, Suite 110 • Frankfort
Friday, August 30, 9:00 a.m.
(distributed on June 28) for Kentucky state government employees
(except for sheriff’s and clerk’s offices) could not be issued prior to
2013 Holiday Reminder
July 1, 2013. Many state employees did not receive their June 30, 2013
Transactions made on days when the New York
check until Monday, July 1, 2013. As a result, KDC did not receive deferrals
Stock Exchange is closed will be processed the following
from state employees for the June 30 pay date until July. Therefore, these
business day. The New York Stock Exchange and the
deferrals could not be invested until July and must be reflected as third
quarter investments on the statements for the July 1 – September 30, 2013
Authority office will be closed all day:
• Monday, September 2 Labor Day
statement period.
Note: Daylight Saving Time ends November 3.
For more information on any newsletter article, please call Chris Helvey at the Authority’s
Frankfort office, 502.573.9188 or 1.800.542.2667.
KDC Customer Service Line:
1.800.542.2667 or 502.573.7925
Website:
www.kentuckydcp.com
PAGE 4
Information from registered Plan Service Representatives is for educational purposes only and is not legal, tax or investment
advice. Local Plan Service Representatives are registered representatives of ING Investment Advisors, LLC (member SIPC).
This newsletter does not provide legal, tax or investment advice. For such advice, participants should contact their legal,
tax or investment advisers. © 2013 ING Institutional Plan Services, LLC. All Rights Reserved.
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