RETIREMENT PLAN CHANGES SEMINAR
Boston Children’s Hospital June 2015
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LEGAL DISCLAIMERS
This presentation is intended as a visual component to a broad educational program presented by CAPTRUST Financial Advisors. This presentation is not individual investment advice. If you have questions or concerns regarding your own individual retirement needs, please contact a CAPTRUST representative for further assistance.
CAPTRUST does not render legal, accounting, or tax advice. This material has been prepared solely for informational purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Any performance data quoted represents past performance. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results.
Individual investors have particular needs in planning for retirement. No single solution fits every investor.
Your individual needs and goals are just as unique as you are.
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HOW WE WORK TOGETHER FOR YOU
Boston Children’s Hospital,
CAPTRUST and Fidelity work
together on all aspects of your
retirement plan to ensure a sound
beneficial plan offering for YOU.
Plan Sponsor
Boston Children’s Hospital
Plan Recordkeeper Fidelity
Investment Advisor
CAPTRUST
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• Consolidated fund line-ups within each plan
• Optional post-tax Roth employee contributions
• Optional self-directed brokerage accounts
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ENHANCEMENTS
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WHY ARE WE MAKING CHANGES
• Simplify choice for participants and better meet the needs of all types of investors
• Offer a well diversified "best in class" fund lineup
• Lower cost plan administration
• Continue to enhance and provide efficient investment and plan oversight
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CONSOLIDATION
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Investment platforms staying the same: Boston Children’s Hospital Plans will continue to be offered through Fidelity
Tier I Target Date
Tier II Core Investment Options (Active)
Tier III Core Investment Options (Passive)
Tier IV Self-Directed Brokerage
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ADVANTAGES OF A CONSOLIDATED FUND LINEUP
• Provide choice and solutions for investors with different levels of engagement
• Leverage the plan assets to reduce investment costs charged to individual participants
• Provide a diversified core menu including active and passive options and Target Date funds that are selected and monitored on a regular basis
• Access to a self-directed brokerage account designed for more experienced investors
• Roth retirement savings option
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TRADITIONAL VS. ROTH
*Deciding to save for retirement is step one. Your personal tax situation will help you determine what “type” of contribution is best for you.
TRADITIONAL SAVINGS (Pre-Tax) ROTH SAVINGS (Post-Tax)
• Tax Deferred Savings – Taxes are paid when money is withdrawn
• Paycheck impact is typically lower due to tax savings
• Beneficiaries will be taxed at distribution
• There are no requirements to have money invested for any specified period
• Participant’s access to accounts will be limited until age 59 ½, normal retirement or death or disability
• Contributions are taxed at current rates
• Investments grow tax free
• Paycheck impact will be slightly higher as taxes are deducted at time of contribution
• Beneficiaries will not be taxed at distribution if they meet time guidelines
• Accounts must be held for 5 years from the initial contribution
• Participant’s access to accounts will be limited until age 59 ½, normal retirement or death or disability
Same payroll deduction convenience
Same investment options Same contribution limits
Different tax consequences
Summary
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EX
PE
CTE
D R
ETU
RN
EXPECTED RISK
Cash and Equivalents - Money Market Fidelity Retirement Money Market – JA Only**
Stable Value MetLife Stable Value
Intermediate Term Bond Fidelity Spartan US Bond Index Adv Fidelity Total Bond
Target Date Funds Fidelity Freedom
Large Company Value JHancock Disciplined Value R4
Large Company Blend Fidelity Spartan 500 Index Instl
Large Company Growth Fidelity Contrafund K
Medium Company Value MFS Mid Cap Value R4
Medium Company Blend Fidelity Spartan Extended Mkt Index Adv
Medium Company Growth Eagle Mid Cap Growth R5
Foreign Large Blend Fidelity Spartan Global ex US Index Advtg T Rowe Price Overseas Stock
Foreign Large Growth Fidelity Diversified International K
Small Company Value Goldman Sachs Small Cap Value IR
Small Company Growth Wells Fargo Adv Small Co Growth I
**Will be offered in the BCH JA plan only
Emerging Markets DFA Emerging Markets Core Equity
BOSTON CHILDREN’S HOSPITAL NEW INVESTMENT MENU
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Passive Investment Options Active Investment Options
Self-Directed Brokerage Option
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BOSTON CHILDREN’S HOSPITAL NEW INVESTMENT MENU
Money Market Fidelity Retirement Money Market** FRTXX 0.42%
Stable Value MetLife Fixed - Old - 0.25%
Stable Value Metlife Fixed - New - 0.25%
Stable Value Metlife Policy Credit - 0.25%
Intermediate-Term Bond Fidelity® Total Bond FTBFX 0.45%
Intermediate-Term Bond Fidelity Spartan® US Bond Idx Advtg FSITX 0.10%
Moderate Allocation Fidelity Freedom Series K 0.62%
Large Value JHancock Disciplined Value R4 JDVFX 1.02%
Large Blend Fidelity Spartan® 500 Index Instl FXSIX 0.04%
Large Growth Fidelity® Contrafund® K FCNKX 0.56%
Mid-Cap Value MFS® Mid Cap Value R4 MVCJX 0.97%
Mid-CapGrowth Eagle Mid Cap Growth R5 HARSX 0.89%
Mid-Cap Blend Fidelity Spartan® Extnd Mkt Idx Advtg FSEVX 0.07%
Foreign Large Blend T. Rowe Price Overseas Stock TROSX 0.86%
Foreign Large Growth Fidelity® Diversified International K FDIKX 0.78%
Small Value Goldman Sachs Small Cap Value IR GSQTX 1.10%
Small Growth Wells Fargo Advantage Small Co Growth I WSCGX 0.95%
Diversified Emerging Mkts DFA Emerging Markets Core Equity DFCEX 0.63%
Foireign Large Blend Fidelity Spartan® Glb ex USIdxAdvtg® FSGDX 0.18%
Asset Class Investment Name Ticker Expense Ratio
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IMPORTANT INFORMATION PROVIDED IN THE TRANSITION GUIDE
NEXT STEPS
1 New fund line-ups will be added on August 4, 2015
2 Review the amount you are saving
3 Consider Roth Retirement Savings Option
4 August 3, 2015 Boston Children’s Hospital will be closing funds certain investment options and replace them with options from the new core investment menu. Final new program will be effective August 4, 2015
5 All future contributions will be directed to the new core investment menu based on either your current personal elections OR based on the tables included in the transition brochures
6 All mutual funds will be moved automatically (“Mapped”) to the new investment menu based on the table in the transition brochure.
7 Review assets with other vendors and consider consolidating to Fidelity.
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FIDELITY INVESTORS - WISHING TO MAINTAIN INVESTMENTS
1 Investigate a Self Directed Brokerage Account (BrokerageLink) to review available investment options
2 Transfer those assets that are supported on BrokerageLink.
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IF YOU DO NOTHING
AS OF AUGUST 4TH THE NEW PROGRAM WILL BE LIVE:
• All new contributions will be directed to the new investment menu
After market close on August 3rd, Investments will be directed to a like asset class, if available, or to the Target Date fund based on your current age and the year you will turn 65
• Certain existing assets with Fidelity will also move after market close on August 3rd to like asset classes or to the Target Date fund based on your current age and the year you will turn 65
• Provide a diversified core menu including active and passive options and Target Date funds that are selected and monitored on a regular basis
• Access to a Self-Directed Brokerage designed for more experienced investors
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IMPORTANT DATES
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HELPFUL TIPS
1 Any amount of systematic investing is better than none
2 Determine when you might need access to the money • Short term needs
• Long term needs
3 Identify events when you will increase the amounts you can invest (salary increases, paid off debts)
4 Understand your risk tolerance
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5 Resist the urge to “time the market”
6 Understand your investment
7 Pick a strategy and stick with it
8 Do not be afraid to ask for help, just about everyone needs it
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HELPFUL TIPS
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KEY CONTACTS FOR YOUR PLAN
Boston Children’s Hospital Role: PLAN SPONSOR
For: plan questions
Internal: HR Service Center External: HR Service Center Monday through Friday 8:30 am to 5:00 pm
Fidelity Investments Role: RECORDKEEPER
For: check balances, change investments or
contribution amounts, loans, rollovers &
beneficiary designations
Toll Free: 855.242.4032 (Participant Call Center) www.netbenefits.com/BCH (Participant Website)
BOSTON CHILDREN’S HOSPITAL TAX-DEFERRED ANNUITY PLAN
THANK YOU FOR ATTENDING!
Information was provided by Boston Children's Hospital. Fidelity Investments is not responsible for its content.