It pays to save Features of NRECA's 401(k) Pension Plan

Nearly everyone will need some personal savings to help pay for life in retirement. Contributing to your 401(k) account is a way to build the nest egg you’ll need. The 401(k) Pension Plan offered through NRECA provides a tax-advantaged way to invest in funds that are available exclusively to co-op employees with a variety of options to fit your situation and risk tolerance.

FEATURES OF THE 401(K) PENSION PLAN

Choose from a variety of investment options, including the Target Date Portfolios

NRECA’s Target Date Portfolios were created to help take the complexity out of investing for retirement by providing a ready-made way to invest. To ensure a diversified investment mix, you need only to select the appropriate Target Date Portfolio(s) closest to the year you’d be eligible to retire, rather than trying to select and manage a collection of different funds. Over time, each fund’s investment mix is gradually shifted to provide an age-appropriate mix of assets. If you’d prefer to create your own portfolio, you can choose from the plan’s investment line-up.

Saving money is not as hard as you think

You can contribute directly from your paycheck before income taxes are calculated, which lowers your taxable income today. For every $100 you contribute, only $75 comes out of your take home pay, assuming a 25% federal income tax bracket. And because your 401(k) is a tax-deferred account, it could grow faster than an ordinary, taxable account.

You own your contributions 100%, no matter where your career leads

The money you contribute to your account – and any investment earnings – belongs to you from day one. You don’t need to satisfy any service requirements to “own” those funds.

RESOURCES TO HELP YOU SUCCEED Personal Investment & Retirement Consulting (PIRC) Team

A team of financial professionals standing by to answer your investing and retirement planning questions at no additional cost. PIRC can work with you to:

> Create a savings plan and make sure it’s on track

> Choose investments that align with your goals

> Decide how to save for college expenses

> Help you evaluate advice provided by for-profit advisors

> Create an income plan when you are ready to retire

Risk Assessment Quiz

Although risk tolerance is not an exact science, your personal attitude towards risk is one of the factors that can help you determine how to invest money in your 401(k) account. NRECA offers a short risk assessment quiz that can help you determine if you are a conservative, moderate, or aggressive investor. It even provides sample asset allocation guidance based on your risk profile.

Now is the time to take advantage of this valuable benefit offered by the co-op! If you are ready to save, reach out to Missy, Kim, or Julie.

In May, Member Services Representative Kelsey James graduated from Indiana University East with a bachelor of arts degree in Spanish and a double minor in criminal justice and psychology.

Kelsey enjoys listening to music, cooking, painting, and learning about languages. She enjoys being creative and is passionate about learning new things.

Congratulations, Kelsey!