Managing Participants Beyond Termination of Employment - Robert Malczyk

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PANEL: MANAGING PARTICIPANTS BEYOND TERMINATION OF EMPLOYMENT

• Carol Idone , VP, Client Relationship Management & Consulting, HANYS • Jude McDonough, Retirement Plan Advisor, Community Bank Wealth Management• Sean Arnold, QKA, CISP – Product Manager, BPAS AutoRollovers & MyPlanLoan

Moderator: Robert A. Malczyk , VP, Sales, BPAS

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I can’t afford to save for retirement

I have too much student debt

How much do I save for retirement and still have enough for my

(our) children’s college education

Heck I saved $40,000 in my 401(k) how much will I get a

month?

When should I retire? DO I HAVE ENOUGH?

Should I start Social Security at

62? 67? 70?

How much will my medical care cost?

I have money in my old employers 401(k) and

some IRA accounts, and some funds in a 403(b),

CAN YOU HELP ME?

What if I live to age 95?

Distribution Considerations

Cash it out?Leave it in the plan?

Rollover into an IRA?

Traditional or Roth?

Early Withdrawal Penalty (59 ½, 55)

Participant Loan

Company Stock – what is NUA?

Investment Options

Stocks

Bonds

Mutual Funds

Annuitize?

Income Streams

Fees

What are basis points?

Longevity Risk

Inflation Risk

Beneficiary Considerations

Healthcare Costs Required Minimum Distributions (RMDs)

Immediate Annuity

Deferred Annuity

Wealth Transfer

Estate PlanningLeaving a Legacy

4% Rule?

Case Study #1

• Female Age 66• Applied for full social security• Last 15 years working for a large employer (excellent medical coverage)• Previously employed as a nurse in a hospital – 403(b) savings• Large balance in her IRA• Total Assets $1m• Has a personal financial advisor

Greatest ConcernHealth Coverage for herself and her husband (significant costs for prescriptions)

Case Study #2• Husband, 63, self-employed, averages $100k per year income (net); no retirement savings• Wife, 60, public school teacher; participates in a DB plan which will replace 60% of

income; has $200,000 in a 403(b)• Both healthy• The wife will be inheriting $500,000 (net) from her mother’s estate, expected within 6

months

Greatest Concern• Wife would like to retire sooner than later• What to do with the $500,000• Health care costs (including LTC)

Case Study #3

• Husband and wife, ages 62 and 67• Been working with the company 20+ years• Household income approximately $300K per year• $500K in 401K assets• $300K in CD’s• $200K in other assets• Debt free including primary residence

Greatest Concerns:Health Coverage for younger spouse, Stock market volatility and when to retire

Solutions

• IRA Rollover• Keeping money in the plan• Annuity options• Lifetime withdrawals• Roth withdrawals• 701/2 minimum distributions• 4% Rule• New DOL Guidelines

Conclusion

Call BPASWe can help you

B P A S P A R T N E R C O N F E R E N C E 2 0 1 6

BPAS PARTNER CONFERENCE 2016

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