POWER ON€¦ · 6. MATCHING CONTRIBUTIONS! Top Reasons to Contribute to Your 401(k) Account C:...

Roman Catholic Bishop of Worcester 403(b) Plan

POWER ON (maximize your retirement plan)

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Presented By: Jorge Casasnovas; Registered

Representative of MML Distributors, LLC

Date: August 12, 2015

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Who Is MassMutual?

The record-keeper for the Roman Catholic Bishop of Worcester 403(b) Plan;

Operating since 1851 and in the retirement service industry for over 65 years;

Massachusetts Mutual Life Insurance Company (MassMutual) and its subsidiaries include:

- OppenheimerFunds, Inc. - Baring Asset Management, LLC

- Babson Capital Management, LLC - The First Mercantile Trust Company

- Cornerstone Real Estate Advisers, LLC - MML Investors Services, LLC

Recognized by FORTUNE magazine as one of the World’s Most Admired Companies (2014); named one of 25 Noteworthy companies by Diversity Inc. (2014);

Rated1 AA+ (Very Strong) by Standard & Poor’s, and A++ (Superior) by A.M. Best Company.

1 Financial strength ratings are for Massachusetts Mutual Life Insurance Company and do not apply to any separate

investment accounts or mutual funds offered under the contract. Ratings are as of March 2015 and are subject to change.

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How Much Do You Need??

Will your Social Security be enough?

Probably not…

Did you know?

In 2014 the average Social Security retirement benefit

was $1,294 per month* or $15,528 per year.

*Source: www.SSA.gov, January 2015

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4

Am I Saving Enough?

Source: AON/Hewitt Universe Benchmarks Report, 2012

Personal Retirement Savings Rates (excluding employer contributions)

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Why Start Now?

Source: Standard &

Poor’s. Examples

assume an average

annual return of 8%

until age 67.

Examples are

hypothetical and do

not represent the

performance

of any particular

investment vehicle.

Individual results will

vary.

Investor A invested

$100/month from age 27 - 37.

Total investment $12,000

$150,030

By age 67

$185,320

By age 67

Investor B invested

$100/month from age 37 - 67.

Total investment $36,000

Starting now can help make retirement affordable:

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6

Your Saving Solution

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1. It’s EASY

2. TAX-DEFERRED savings

3. You owe it to YOUR FUTURE

4. Choice of INVESTMENTS OPTIONS

5. You can TAKE IT WITH YOU

6. MATCHING CONTRIBUTIONS!

Top Reasons to Contribute to Your 401(k) Account

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How Much You Can Save

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Eligibility / Entry: Immediate;

Through payroll deductions you can save up to 100% of your pay;

These elective deferral contributions can be made with pre-tax dollars;

Your contributions may not exceed the statutory limit of $18,000 in 2015;

If you are age 50 or over in 2015, you may contribute an additional $6,000 above

the normal plan and legal limits.

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Matching Contributions

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Company Match Contribution: Salary Deferral Company Match

1% 1%

2% 2%

3% 4%

4% 4%

Vesting:

Year of

Service1 2 3 4 5

Vested

Pct.0% 0% 60% 80% 100%

Eligibility: 3 years of service

Entry: Annual

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Understanding

Your Investments

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Morningstar

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7/20 YTD:

• Top Performing Mutual Funds: Large Growth, Mid Growth, Small Growth

• Outperforming Stocks: Japan

• Underperforming Stocks: Latin America Stocks

• Outperforming Sector: Healthcare

• Underperforming sector: Precious Metals (Gold, Silver, Platinum) and Energy

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S&P 500 Annual Returns

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1 Source of chart data: Ned Davis Research, 12/31/13. The chart depicts the growth of a $10,000 hypothetical investment in the stocks in the S&P 500 Index on 1/2/80 held to 12/31/13.

The chart also depicts the growth if an investor had cashed out of the market following each 20% decline in the market, invested in a 90-day Treasury Bill for one year and then re-entered

the market. The S&P 500 Index is a broad-based measure of domestic stock market performance that includes the reinvestment of dividends. The index is unmanaged and cannot be

purchased directly by investors. Index performance is shown for illustrative purposes only and does not predict or depict the performance of any investment. Past performance does not

guarantee future results. Due to ongoing market volatility, current performance may be more or less than the results shown in this presentation. The performance information does not

show the effects of income taxes on an individual’s investment. Taxes may reduce your actual investment returns or any gains you may realize if you sell your investment. An investor’s

shares, when redeemed, may be worth more or less than the original cost.

Staying in Stocks vs. Moving to T-bills in Bear Markets: Growth of $10,000 (1980–2013)1

Value of Staying the Course

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Optimism

Excitement

Anxiety

Denial

Panic

Defeat

Despair

Hope

Optimism

Pitfall: Buying High And Selling Low

Source: National Bank Financial, CEG Worldwide

Many investors

buy here

Many investors sell here

Stock price, market level,

and asset class level

Passion

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Regular Investing May Help Smooth the Ride

Past performance does not guarantee future results. This chart is shown for illustrative purposes only and is not intended to

represent the performance of any specific fund. Systematic investment plans, such as dollar cost averaging, do not assure a

profit and do not protect against loss in declining markets. Before investing, investors should evaluate their long-term financial

ability to participate in such a plan.

Investing $1,200 All at Once vs. $100 a Month for One Year

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Risk/Return Spectrum for Investments

Higher

Lower

PO

TE

NT

IAL

RIS

K/R

ET

UR

N

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Capital Preservation

Metropolitan West Total Return Bond Fund

Vanguard Total Bond Market Index Fund

Short-term / Stable Value

Intermediate Term Bond

Large Cap Value

Large Cap Core

Large Cap Growth

T. Rowe Price Retirement Target Based Series:

Balanced, 2005, 2010, 2015, 2020, 2025, 2030, 2035, 2040,

2045, 2050, 2055

American Funds Washington Mutual Investors

Vanguard 500 Index Fund

Lifecycle Asset Allocation

Mid Cap Value

Mid Cap Core

International Large Core

Mid Cap Growth

CRM Small/Mid Cap Value Fund

Vanguard Extended Market Index Fund

Ave Maria Rising Dividend Fund

T. Rowe Price Institutional Large Cap Growth Fund

Eaton Vance Atlanta Capital Small - Mid Cap Fund

American Funds EuroPacific Growth Fund

Vanguard Total International Stock Index Fund

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Risk-based Asset Allocation Portfolio Samples

Conservative Moderate Aggressive Ultra Aggressive

70% Cash/Bond

30% Stock

40% Cash/Bond

60% Stock

15% Cash/Bond

85% Stock

0% Cash/Bond

100% Stock

Note: Sample allocations shown for illustrative purposes only. Actual allocation percentages may vary. Not to be

construed as a recommendation of any particular investment option or strategy. A significant percentage of the underlying

investments in an ultra aggressive asset allocation portfolio have a higher than average risk exposure. Investors should

consider their risk tolerance carefully before choosing such a strategy.

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Target Date Investment Options:

The risk/return

indicator is for

comparative purposes

and is based on the

general comparative

risks of these

categories. Asset

allocation portfolios

are automatically

rebalanced for you on

a periodic basis.

Higher

Lower

Po

ten

tia

l R

isk

/Re

turn

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Retirement 2010 (T. Rowe Price)



T. Rowe Price Retirement 2005 Fund











T. Rowe Price Retirement Balanced Fund

Target allocations vary. Target date investment alternatives do not guarantee that you will have adequate retirement income. You can lose

money at any time, including near and following retirement. Target date asset allocation investment alternatives do not eliminate the need for you

to decide, before investing and from time to time thereafter, whether the investment alternative fits your financial situation. Even if you plan to

retire in 2030, you may decide, based on your investment objectives, tolerance for risk, and other assets, that the investment strategy and risks of

a 2020, 2040, or other target date fund would be more appropriate for you. Or you may decide that you don't want to invest in a target date asset

allocation investment alternative and would rather actively manage your investments by selecting different investment alternative(s).

Typical Target Date Asset Allocation Glide Path

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Investing Guidelines

Review your risk tolerance

Re-confirm your asset allocation – set realistic expectations

Avoid making ‘emotional’ changes to your portfolio

Evaluate long term goals and objectives – re-adjust if necessary

Review deferral rates - are you saving ENOUGH?

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Details on Investments

Risk Disclosures for Certain Asset Categories – Please note that your plan may not

offer all of the investment options discussed below. If a retirement plan fully or partially terminates its investment in The Guaranteed Interest Account (GIA), SF

Guaranteed, Fixed Interest Account or SAGIC investment option, the plan receives the liquidation value of its

investment, which may either be more or less than the book value of its investment. As a result of this adjustment, a

participant’s account balance may be either increased or decreased if the plan fully or partially terminates the contract

with MassMutual.

Money market investments are not insured or guaranteed by the Federal Deposit Insurance Corporation or

any other government agency. Although these investments seek to preserve the value of your investment at

$1.00 per share, it is possible to lose money by investing in a money market option.

Risks of investing in inflation-protected bond investments include credit risk and interest rate risk. Neither the bond

investment nor its yield is guaranteed by the U.S. Government.

High yield bond investments are generally subject to greater market fluctuations and risk of loss of income and

principal than lower yielding debt securities investments.

Investment option(s) that track a benchmark index are professionally managed investments. However, the benchmark

index itself is unmanaged and does not incur fees or expenses and cannot be purchased directly for investment.

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offer all of the investment options discussed below. Investments in companies with small or mid market capitalization (“small caps” or “mid caps”) may be subject to

special risks given their characteristic narrow markets, limited financial resources, and less liquid stocks, all of which

may cause price volatility.

International/global investing can involve special risks, such as political changes and currency fluctuations. These

risks are heightened in emerging markets. You cannot transfer into international/global investment options if you have

already made a purchase followed by a sale (redemption) involving the same investment within the last sixty days. In

addition, you may not request a transfer into international/global investment options between 2:30 and 4 p.m. ET.

Other trading restrictions may apply. Please see the investment’s prospectus for more details.

A significant percentage of the underlying investments in aggressive asset allocation portfolio options have a higher

than average risk exposure. Investors should consider their risk tolerance carefully before choosing such a strategy.

An investment option with underlying investments (multi-investment options and any other offered proprietary or non-

proprietary asset-allocation, lifestyle, lifecycle or custom blended options) may be subject to the expenses of those

underlying investments in addition to those of the investment option itself.

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offer all of the investment options discussed below. Investments may reside in the specialty category due to 1) allowable investment flexibility that precludes

classification in standard asset categories and/or 2) investment concentration in a limited group of securities or

industry sectors. Investments in this category may be more volatile than less-flexible and/or less-concentrated

investments and may be appropriate as only a minor component in an investor's overall portfolio.

Investments that invest more of their assets in a single issuer or industry sector (such as company stock or sector

investments) involve additional risks, including unit price fluctuations, because of the increased concentration of

investments.

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offer all of the investment options discussed below. In target date strategies, the year in the strategy name refers to the approximate year investors in the strategy would

plan to retire and likely would stop making new contributions to the strategy. Target date strategies follow their own

asset allocation path (“glide path”) to progressively reduce equity exposure and become more conservative over time,

reaching their most conservative allocation in their target date year. Investors may choose a date other than their

presumed retirement date to be more conservative or aggressive depending on their own risk tolerance.

Lifestyle strategies comprise options based upon investors’ risk tolerance (often determined by responses to a risk

quiz). The specific options will depend upon what your plan has selected, but may include conservative, moderate

conservative, moderate, aggressive, and ultra-aggressive. The asset allocation of lifestyle strategies does not follow a

glide path, so will not automatically become more conservative over time.

Blended strategies offer a combination of target date and lifestyle features, including following a glide path that

becomes most conservative in their target date year while allowing investors to select the strategy that coincides with

their risk tolerance.

Generally target date and blended strategies are designed to be held beyond the presumed retirement date to offer a

continuing investment option for the investor in retirement. However, investors in any of these strategies should also

consider their own personal risk tolerance, circumstances and financial situation to determine if they should consider

moving to a lower risk strategy as they near retirement. Investments in these options are not guaranteed and you may

experience losses, including losses near, at, or after the target date (if applicable). These strategies’ stated asset

allocation may be subject to change. Additionally, there is no guarantee that the options will provide adequate income

at and through retirement.

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MassMutual is

Here to Help

Benefits of Consolidating Retirement Accounts

Maintaining one account may make it easier to manage your

retirement savings:

One point of contact – one statement, one phone line, one website

Rebalance just one allocation instead of multiple accounts

Flexible and convenient investment changes

Easy retirement planning, investment guidance, and rebalancing tools

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Note: Consolidation may not be right for everyone – individual situations will vary.

Consider seeking consultation from your own independent financial and/or tax

advisor before consolidating.

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MassMutual Resources

Automated Telephone Services: 1-800-743-5274

(Customer Service Representatives 8 a.m. to 9 p.m. (ET))

Participant Retirement Plan Website:

www.retiresmart.com

Search for “RetireSmart” or “MassMutual” in your

phone’s app store.

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APP

Make Room for a NEW Mobile APP!

Available for Android and Apple devices.

The app lets you view:

Total account balance

Balances by source and investment

Vested balance by source

Personal rate of return

Last contribution amount

Asset allocation by investment in chart

and list form

It also provides:

A link to Retiresmart.com

Login assistance

Contact information and more

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Accessing Your RetireSMARTSM

Website

www.retiresmart.com

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Log in

Highlight Section:

Includes the

latest tools,

videos, and

events

Main navigation

Navigating the RetireSMARTSM Website (Pre-log in) – Where Should I Be?

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Navigating the RetireSMARTSM Website (Pre-log in) – Where Should I Be?

Retirement

planning tools &

education

including:

seminars, videos,

tutorials, articles

– all organized

by age and topic

Choose your age

Choose your

topic

Planning tools

& calculators

Quick actions Upcoming

events & more

Account balance

& asset allocation

Navigating the RetireSMARTSM Website (Post log in) – What’s New?

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Choose your

strategy:

By myself

By risk

By age

RetireSMARTSM Website: Choosing Your Investment Strategy

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Closing the Gap in Retirement Income

* Based on individual assumptions

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* Practical action plan with acceptable probability of success

Increasing the Chances of Success

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© 2015 Massachusetts Mutual Life Insurance Company, Springfield, MA. All rights reserved.

www.massmutual.com. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life

Insurance Company (MassMutual) and its affiliated companies and sales representatives.

RetireSmartSM

is a service mark of Massachusetts Mutual Life Insurance Company.

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