Your Fiscal Fitness Review Financial wellness tips, tools and checklists from TIAA-CREF especially for State University of New York employees
Keeping “fiscally fit” is now more important—and easier—than ever before No matter where you are in your life and career, chances are you’re juggling multiple financial priorities. From paying off student loans and getting established, to caring for a household and aging parents, to getting prepared for your own retirement, every life stage has inherent fiscal challenges that can strain even the most carefully designed budgets. To help achieve financial success at any age—and especially at retirement—it’s important to have a wellness plan for your financial future. TIAA-CREF is pleased to provide this checklist guide to help you better manage your fiscal priorities.
Get objective financial advice—at no extra cost In reviewing this checklist, you’ll probably have questions, ideas and considerations about various aspects of your financial life. “Am I putting enough away for retirement?” “What should my investment mix look like at this point in my life?” “What about other retirement assets I have?” And more. See page 6 of this guide for more information about how you can schedule a financial advice session with a TIAA-CREF consultant at no additional cost. This advice service is part of your SUNY retirement benefits package. We can meet with you in one of our offices throughout the New York area or on campus at your convenience.
A checklist for your financial well-being No one wants to run out of money in retirement, but 47% of Americans approaching retirement today are facing a savings shortfall. Below is a checklist that can help you keep your financial outlook clear, healthy and on track. Budgeting and Financial Management
Insurance
c Create/update budget
c Make sure beneficiaries are
c Set savings goals c Schedule an advice session with a
TIAA-CREF Consultant c Set spending priorities c Look for ways to cut/reduce
overhead costs (don’t forget to consider taxes and inflation)
c Check life insurance coverage
up-to-date on each of your retirement accounts, especially if you have had a change in your family situation, financial obligation and/or relationship c Keep all policies in a safe place
long-term care insurance
Estate Planning
c Reduce credit card spending/debt
c Consult with attorney to
switch to no-fee credit card c Ask for lower interest rate or switch
to lower interest rate card c Refinance and/or consolidate
consumer loans
Projected Retirement Income Gap
c Consider disability and
Credit and Lending c Ask for credit card fee waiver or
Consider the large gap between even the maximum monthly Social Security income and average actual living expenses. The shortfall is nearly $800 a month. For many people who don't qualify for the maximum benefit, the gap could be even greater.
$764
Monthly shortfall
make/update Will and Powers of Attorney
$3,1301
c Update beneficiaries on all
Monthly Average spending monthly over spending age 65 over age 65
financial accounts c Consider tax-advantaged
wealth transfer techniques
c Check credit reports and scores
$2,3662
Maximum monthly Social Security payments
Investing c Set/reassess investment goals c Increase retirement plan
contributions
Source: U.S. Bureau of Labor Statistics 2009 Consumer Expenditure Survey.
1
s of July 2011. Based on a retirement age of 66. A Source: U.S. Social Security Administration.
2
c Reassess investment allocations c Consider supplemental retirement
plan contributions c Open/fund IRA
To schedule an appointment, call 800 842-2252 or visit www.tiaa-cref.org/suny. 1
Five Steps To A Healthy Retirement Step 1: What’s your Retirement Number? Determine how much retirement income you may need. A good rule of thumb states that individuals may need to replace at least 70% of their current pretax income for at least 15 years. How are you doing on your retirement planning? c Current annual preretirement income (pretax): $ ____________ c Full Lifestyle during retirement – 80% of income: $ ____________ c Restricted lifestyle during retirement – 70% of income: $ ____________ c Estimated years in retirement: ____________ c Estimated assets required:
Retirement income __________ X number of retirement years ____________ = ______________
Step 2: Determine if you are contributing enough to your retirement. Are you taking advantage of catch-up contributions? If you’re 50 or older, you can save an additional $5,500 to your retirement plan for a total of $22,000 in 2011.2 Also, consider taking additional income you receive from salary increases and bonuses to help boost your retirement savings. c Am I contributing enough? c Yes
c No
c Am I eligible for the catch-up provision? c Yes
c No
If yes, what amount? _________________ To begin or increase your Voluntary Savings Plan Contributions, you will need to provide to your benefits office a new Salary Reduction Agreement which is available at www.tiaa-cref.org/SUNY or your campus HR office.
2 To schedule an appointment, call 800 842-2252 or visit www.tiaa-cref.org/suny.
Step 3: Determine how you want your income distribution in retirement. Most people put a significant amount of time and effort into creating and funding a portfolio that will make retirement possible. But few give much thought to how they will tap into their investments once retirement arrives. Now is the time to review and choose which combination of income options suits you according to your aversion to risk, how soon you will retire and your life expectancy. c Estimate my Social Security Benefit The Retirement Estimator gives estimates based on your
actual Social Security earnings record. Visit www.socialsecurity.gov/estimator. c Schedule an Advice session with my TIAA-CREF consultant to discuss my income options.
Date
time Meeting location
Step 4: Determine if you are invested appropriately for retirement. Diversifying asset classes — stocks (equities), bonds (fixed income), money market funds, real estate and guaranteed investments — is critical to balancing growth potential vs. risk. Market fluctuations can throw your asset allocation off balance and your outlook, investment goals and life situation can change. That’s why you should review your allocations and contributions periodically. You may need to rebalance your portfolio to keep your investments aligned with your goals. c Schedule a one-on-one meeting with my TIAA-CREF consultant to help structure my customized
portfolio to meet my specific retirement investment objectives.
Date
time Meeting location
Step 5: Estimate your postretirement expenses. You should get a clear picture of the type of expenses and income needs you’ll have after you retire. Pay particular attention to healthcare options, including Medicare and any benefits available from your employer.
To schedule an appointment, call 800 842-2252 or visit www.tiaa-cref.org/suny. 3
Your Important Records Assets: What You Own Cash and Cash Equivalents Checking Account
Retirement/Pension Benefits Employer/Type Plan Defined Benefit 403(b)
Savings Account
Plan Administrator
Other
Address
Retirement Assets
Phone #
Defined Contribution Pension
Account #
Defined Benefit Pension
Primary Beneficiary
Social Security Pension
Contingent Beneficiary
Tax-Deferred Annuity 403(b)
Statement Location
457(b)/401(k)
Employer/Type Plan
Keoghs IRAs After-Tax Annuities Other Invested Assets Brokerage Accounts Stocks Bonds Real Estate Funds Mutual Funds Life Insurance Cash Value Other Personal Use Assets Primary Residence Secondary Residence(s) Car(s) Furnishings Jewelry
Defined Benefit 403(b)
401(k)
Other
401(k)
Other
Plan Administrator Address Phone # Account # Primary Beneficiary Contingent Beneficiary Statement Location Employer/Type Plan Defined Benefit 403(b)
Other
Plan Administrator Address Phone # Account # Primary Beneficiary Contingent Beneficiary Statement Location
Collectibles (art, antiques, etc.) Other
4 To schedule an appointment, call 800 842-2252 or visit www.tiaa-cref.org/suny.
401(k)
Annuities Company Contract # Address Phone # Primary Beneficiary Contingent Beneficiary Statement Location Company Contract # Address Phone #
Life Insurance Type of Coverage Term
Whole Life
Variable
Universal
Group
Variable
Universal
Face Amount Value Company Policy # Agent Phone # Primary Beneficiary Contingent Beneficiary Statement Location Type of Coverage Term
Whole Life
Primary Beneficiary
Face Amount Value
Contingent Beneficiary
Company
Statement Location
Policy #
Mutual Fund Accounts
Group
Agent Phone #
Name of Company/Fund
Primary Beneficiary Contingent Beneficiary
Address Phone # Account # Statement Location Name of Company/Fund
Statement Location
Health Insurance Type of Insurance Group Medical Disability Income
Individual Medical Long-term Care
Company Address
Agent
Phone #
Phone #
Account #
Document Location
Statement Location
Type of Insurance
Name of Company/Fund
Group Medical Disability Income
Individual Medical Long-term Care
Company Address
Agent
Phone #
Phone #
Account #
Document Location
Statement Location To schedule an appointment, call 800 842-2252 or visit www.tiaa-cref.org/suny. 5
Important Papers to Keep and for How Long This is a list of important documents you should keep and the recommended length of time you should keep them: Documents
How Long to Keep
Bank statements
Six years
Birth certificates
For life
Canceled checks
Six years
Contracts
Until updated
Credit card account numbers
Until updated
Divorce papers
For life
Home purchase and improvement records
As long as you own the property
Household inventory
Until updated
Insurance, life
For life
Insurance, car, home, etc.
Until updated
Investment records Six years after tax deadline for year of sale Investment certificates
Until cashed or sold
Loan agreements
Until updated
Military service records
For life
Real estate deeds
As long as you own the property
Receipts for large purchases
Until sale or discard
Service contracts and warranties
Until sale or discard
Social Security card
For life
Tax returns
Six years from filing date
Vehicle titles
Until sale or disposal
Will
Until updated
6 To schedule an appointment, call 800 842-2252 or visit www.tiaa-cref.org/suny.
Financial rules of thumb Here are a few tips to consider as you prioritize your goals and create your savings plan: < Build an emergency fund equal to at least three to six times your
Visit www.tiaa-cref.org/calcs to find tools and calculators to help you make decisions on how to reach your saving and investment goals.
gross monthly salary. < Plan to replace 70% or more of your final salary in order to
maintain your standard of living in retirement. To accomplish this, first maximize your tax-deductible contributions to your voluntary retirement plans such as 403(b), 457(b) and 401(k) plans. < Purchase enough life insurance to meet your needs. To estimate
your coverage needs, you can also speak with a TIAA-CREF Life Insurance Company insurance and annuity specialist at 877 825-0411 to find out which coverage is best for you. < Obtain enough disability insurance to replace at least 60% of your
monthly salary.
< Target Value Calculator—if you know
how much money you’ll need for a goal but don’t know how much to save monthly or annually < Asset Allocation Evaluator—to help
you determine your risk tolerance and how you may want to allocate your retirement savings across asset classes < Life Insurance Needs Analysis
Calculator to estimate how much life insurance your survivors may need in the event of your death
To schedule an appointment, call 800 842-2252 or visit www.tiaa-cref.org/suny. 7
How to contact us It’s easy to reach us if you want to learn more about TIAA-CREF or for help in opening or managing your account. By phone Call us at 800 842-2252 to speak with one of your dedicated TIAA-CREF SUNY Service team consultants. They are available Monday to Friday from 8 a.m. to 10 p.m. and Saturday from 9 a.m. to 6 p.m. (ET). Just enter your Social Security number or contract number.
Online Visit us at tiaa-cref.org to explore the many ways that we can serve your financial needs. To send an email message to us, just click “Contact Us” at the top of the home page.
In person Call 800 732-8353 to schedule an appointment with a TIAA-CREF Consultant right on campus. Or you can visit tiaa-cref.org and click on the “Find a Local Office Tab” to locate a TIAA-CREF branch in your area.
Diversification is a technique to help reduce risk. There is no absolute guarantee that diversification will protect against a loss of income. Rebalancing does not protect against losses or guarantee that an investorâ&#x20AC;&#x2122;s goal will be met. TIAA-CREF products may be subject to market and other risk factors. See the applicable product literature, or visit tiaa-cref.org for details. TIAA-CREF Individual & Institutional Services, LLC, and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products. Advice and Planning Services is a division of TIAA-CREF Individual & Institutional Services, LLC. Brokerage Services are provided by TIAA-CREF Brokerage Services, a division of TIAA-CREF Individual & Institutional Services, LLC, members FINRA and SIPC. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF ), New York, NY. Life Insurance is issued by TIAA-CREF Life Insurance Company, New York, NY.
You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or go to www.tiaa-cref.org/prospectuses for a prospectus that contains this and other information. Please read the prospectus carefully before investing. Investment products are not FDIC insured, may lose value and are not bank guaranteed. Š2011 Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF), 730 Third Avenue, New York, NY 10017.
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For information about your retirement plan account, or to set up a one-on-one appointment, call 800-842-2252. Consultants are available Monday through Friday, 8 a.m. to 10 p.m. (ET), and Saturday, 9 a.m. to 6 p.m. (ET).
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