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MUTUAL FUNDS
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DELAWARE INVESTMENTS
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EATON VANCE
EVERGREEN FUNDS
FEDERATED FUNDS
FIDELITY ADVISOR FUNDS
FIRST EAGLE FUNDS
FRANKLIN TEMPLETON FUNDS
HARTFORD MUTUAL FUNDS
JOHN HANCOCK MUTUAL FUNDS
KEMPER MUTUAL FUNDS
LORD ABBETT
MFS FUNDS
MUNDER FUNDS
MUTUAL SHARES
NUVEEN
OLDHAM RESOURCE GROUP - FLEXSELECT
OPPENHEIMER FUNDS
PARNASSUS FUNDS
PHOENIX INVESTMENTS
PIMCO FUNDS
PIONEER FUNDS
PRINCIPAL FUNDS / WM FUNDS
PRUDENTIAL MUTUAL FUNDS/JENNISON DRYDEN
PUTNAM FUNDS
SELIGMAN FUND GROUP
VAN KAMPEN
ANNUITIES
AEGON
AIG / SUN AMERICA
ALLIANZ LIFE
ALLSTATE LIFE
AMERICAN EQUITY
AMERICAN GENERAL
AVIVA LIFE
AXA EQUITABLE
DELAWARE LIFE
GE CAPITAL ASSURANCE
GENWORTH
GREAT AMERICAN
GUARDIAN LIFE
GUGGENHEIM LIFE
HARTFORD LIFE & VARIABLE
INTEGRITY LIFE
JACKSON NATIONAL LIFE
JEFFERSON PILOT
JOHN HANCOCK
KEMPER INVESTORS LIFE
LINCOLN FINANCIAL / AM LEGACY
METROPOLITAN LIFE
NATIONWIDE LIFE
NEW YORK LIFE
PENN MUTUAL LIFE
PRUDENTIAL
SECURITY BENEFIT LIFE
SECURITY MUTUAL LIFE
SUN LIFE ASSURANCE
SYMETRA FINANCIAL
TRAVELERS / METLIFE / BRIGHTHOUSE
VOYA / ING / RELIASTAR
Investors should carefully consider the investment objectives, charges and expenses of any mutual fund or variable annuity before investing. For a prospectus containing this and other information call your financial representative. Please read prospectus carefully before investing.
Tax Sheltered Account - 403(b) Plans
As an employee of a non-profit organization, you have access to a powerful savings vehicle—the Tax Sheltered Account. It enables you to save for the future, while reducing your taxes today. The difference between saving in the bank or credit union, and saving in a TSA may be significantly more for you over time.
Sometimes called tax-sheltered accounts, tax-deferred annuities or tax-sheltered custodial accounts, (403(b)s) are offered through your employer and the contributions you make come out of your paycheck before taxes. Because the money is coming out of your paycheck pretax, your taxable income is lower and your tax burden is decreased. Plus, since the money is coming out of your paycheck before you get it, you'll never even see it to miss it!
Consider this hypothetical situation:
With TSA | Without TSA | |
Gross monthly income | $ 4,000 | $ 4,000 |
Monthly investment savings | 400 | 400 |
Taxable income | 3,600 | 4,000 |
Federal withholding (22%) | 792 | 880 |
State income tax (6%) | 216 | 240 |
Net Pay | $ 2,592 | $ 2,480 |
MAIN FEATURES
Loans, rollovers and employer match may be permitted. You can begin taking normal distributions from a 403(b) plan at age 59½. Early withdrawal penalty of 10% generally applies on money withdrawn before age 59½. Required minimum distributions begin at age 72 or retirement which ever one is later. Flexibility in plan design. Reduces the employee's current taxable income. May take to next employer. Account balance and any earnings grow tax-deferred until withdrawn.
ANNUAL CONTRIBUTIONS
You may contribute (on a pre-tax basis) either 100% of your compensation or $19,500, whichever is less. Participants age 50 or older may make an additional annual "catch-up" contribution of $6,500. On top of that, a special rule for 403(b) participants allows certain employees with 15 or more years of service to contribute up to an additional $3,000 per year.
457 Plan
A 457 Plan is a retirement plan offered by certain employer groups which allow employees to make contributions on a pretax basis through salary reductions. Since the money is invested pre-tax, your current income tax is reduced. Your money is invested in the investments of your choice and grows on a tax-deferred basis until you begin withdrawals, usually at retirement.
AVAILABLE TO
Employees of state and local governments, municipalities, and entities that are tax-exempt under federal law.
HOW IT WORKS
Employee's pretax dollars invested in available investment options.
MAIN FEATURES
Generally no loans and no matching employer contributions. No early withdrawal penalty but must qualify for distribution (attainment of age 72, separation from service, unforeseeable emergency). Nondiscrimination rules do not apply. Account balance and any earnings grow tax-deferred until withdrawn.
ANNUAL CONTRIBUTIONS
You may contribute (on a pre-tax basis) either 100% of your compensation or $19,500, whichever is less. Participants age 50 or older can make an additional annual "catch-up" contribution of $6,500, but not in your final three taxable years before you reach the plan's normal retirement age. There is a special clause to double contribution limits in your last three years prior to your retirement stipulated by the plan document. The actual amount may vary based on your employer's specific plan design.
Traditional IRA
Eligibility:
Any individual with earned income who is under 70½. A nonworking spouse under age 70½ who files a joint return that includes earned income.
Deducibility Phase-out: If an individual has a retirement plan at work they, can only fully deduct IRA contribution if: A. Single w/AGI of $64,000 or less B. Joint(IRA owner is active plan participant) w/AGI of $103,000 or less C. Joint(IRA owner's spouse, not IRA owner is active plan participant) w/AGI of $193,000 or less.
Maximum Contributions:
$6,000 total contribution to all Traditional IRAs and Roth IRAs in 2019. If age 50 or older, may add an additional $1,000 to total contribution.
Distribution:
Distribution penalty of 10% if taken before age 59½ (with certain exceptions) . Required minimum distributions will begin at age 70½
Roth IRA
Eligibility:
Single filer with earned income. (Eligibility to participate gradually phased out for modified AGI from $122,000–$137,000.)
Joint filers with earned income. (Eligibility to participate gradually phased out for modified AGI from $193,000–$203,000.)
Married, filing separately: eligibility to participate phased out at $10,000.
Maximum Contributions:
Same as Traditional IRA, subject to phase-out range depending on modified AGI.
Distribution:
Distributions from regular contributions can be made at any time without taxes or penalty. Converted amountsmust satisfy the 5-year investment period to avoid an early withdrawal penalty (except conversion amounts that were originally contributed to the Traditional IRA with after-tax money). Distributions from earningsare tax-freeif the initial contribution in the account was made at least 5 years ago andthe IRA holder meets one of the following conditions: is age 59½ OR is disabled OR is purchasing first home OR dies. Distributions from earningsare penalty-free(under same conditions as for Traditional IRA qualified distributions).
SEP IRA
Eligibility:
Small business owners and self-employed individuals who want a plan that is relatively easy to set up and administer.
Maximum Contributions:
25% of employee's compensation up to a maximum amount of $56,000
Distribution:
Distribution penalty of 10% if taken before age 59½ (with certain exceptions). Required minimum distributions will begin at age 70½
SIMPLE IRA
Eligibility:
Employees who are employed by a company that does not maintain another retirement plan and has 100 or fewer employees earning at least $5,000 in or during the preceding year.
Maximum Contributions:
Eligible employees may defer up to $13,000 of their salary. If over the age of 50 you may defer $16,000.
Distribution:
Distribution penalty of 10% if taken before age 59½ (with certain exceptions). Penalty is increased to 25% if distribution is taken within two years of the date contributions were first deposited. Required distributions will begin at age 70½ in most cases.
*Source: Tax Facts
Information current, subject to legislative change and not intended to be legal advice. Consult a tax advisor regarding specific circumstances.
Employees who want to save for retirement through their employer's tax-deferred retirement plan. Employees' pretax dollars are invested in plan investment options. Employee deferrals pursuant to a salary reduction agreement with the employer are automatically deducted from eligible compensation. Some or all employee contributions may be matched by employer.
| Traditional 401(k)
| Safe Harbor 401(k)
| SIMPLE 401(k)
| |
| Available | No limit on number of employees. Other plans are allowed.
| No limit on number of employees. Other plans are allowed.
| 100 or fewer employees earning $5,000 or more in prior year. Must be employer's only plan.
|
| Maximum employee elective contribution | $19,000
| $19,000
| $19,000
|
| Maximum employee catch-up contribution 50 years or older | $6,000
| $6,000
| $6,000
|
| Employer contributions | Optional
| Required
| Required
|
| Vesting | Vesting schedule permitted for employer contributions.
| Safe Harbor employer contributions must be 100% vested. Additional employer contributions may be subject to a vesting schedule.
| Employer contributions must be 100% vested.
|
| Loans | Permitted
| Permitted
| Permitted
|
| Average Deferral Percentage (ADP) test | Required
| Not Required
| Not Required
|
| Top-Heavy Requirements | Top-heavy plans must provide a minimum 3% employer contribution for all eligible non-key employees.
| Not Required
| Not Required
|
| Plan administration | Full administration required.
| Simplified.
| Simplified; least expensive.
|
| Roth feature option | Available
| Not Available
| Available
|
*Source: 2007 Tax Facts
Plan ahead for your children's future through the College Savings Plan.
A college savings plan provides a flexible, tax efficient way to save for higher education. You can use the money to pay for qualified education costs at any eligible college, university, technical or graduate school in the U.S. as well as some foreign institutions.
Facts at a glace
Earnings and withdrawals for qualified higher education expenses are free from federal tax. Only the account owner may request withdrawals. Any earnings on non-qualified withdrawals are subject to a 10% federal tax penalty in addition to federal and, if applicable, state income tax.
There are no income limits. You can contribute no matter how much you earn.
You can contribute until your account value reaches $500,000.
Up to $15,000 ($30,000 for married couples) can be contributed each year without gift-tax consequences, and under a special election, up to $75,000 ($150,000 for married couples) can be contributed at one time by accelerating five years' worth of investments
You maintain control of the assets. You decide when the money will be spent.
Growing Price of College
Many want to help their children, grandchildren, nieces and nephews realize their dreams — whether it's to become an astronaut, engineer, teacher or technician.
And everyone knows how expensive a college education can be.
College costs roughly $120,000 for four years at a private school and $55,000 for a public school.
College costs are increasing almost twice as fast as the inflation rate.
The odds of winning a full-ride athletic scholarship are less than 1%.
What four years of college could cost? *
| Your child's current age | Public school | Private school |
|---|---|---|
| Newborn | $204,244 | $415,818 |
| 3 | $171,487 | $349,128 |
| 6 | $143,984 | $293,135 |
| 9 | $120,892 | $246,122 |
| 12 | $101,503 | $206,649 |
| 15 | $85,224 | $173,506 |
| 18 | $71,556 | $145,679 |
But there's good news
Changes in the tax law have increased the opportunities for tax-advantaged savings, no matter how much you earn.
You now have more flexibility to manage your college investments.
You have the option to change your beneficiary if you need to.
*Source: American Funds Literature "Paying for college is harder than ever". The College Board for the 2006–2007 school year; projected costs are adjusted for 6% inflation. Assumes college costs increase at 6% a year on average. For illustration only.
Life Insurance
Life Insurance offers a safe, predictable way to help provide peace of mind to you and your family. Ensure your family's financial stability - Your family depends on your earning ability. Life insurance can be used to provide needed funds while your family is adjusting.
Protect your family from unpaid debt - Unpaid mortgages, car loans, medical bills and credit card debts can cause extra financial strain on the family members you leave behind. Life insurance can pay off these obligations, freeing up other assets for your family to use.
Secure your children's future - Education is an opportunity and it takes money to ensure this opportunity. Life insurance can help secure your children's future and dreams.
Provide tax-free funds to your loved ones - Life insurance proceeds pass to your heirs free of income tax.
Types of Life Insurance:
Term Insurance
Term insurance provides death benefit protection for a term of one or more years. Death benefits are paid only if the insured dies within the specified term of years. Term insurance typically provides the largest immediate death benefit for each premium dollar.
Most term insurance policies are renewable for one or more additional years even if the insured's health has changed. Each time the policy is renewed for a new term, premiums increase. Term policies generally contain a conversion feature. This enables the policy owner, prior to the final conversion date, to exchange the term policy for a permanent plan of life insurance such as whole life or universal life, without evidence of insurability. Premiums for the new policy will be higher than what the policy owner had been paying for the term insurance.
Whole Life Insurance
Whole life insurance provides death protection for life. Typically the policy owner would pay the same premium for as long as the insured should live. Premiums can be several times higher than premiums you would pay initially for the same amount of term insurance, but they can be cumulatively smaller than the premiums you would eventually pay if you were to keep renewing the term insurance policy until the insured's later years.
Although you pay a higher premium initially for whole life than for term insurance, whole life policies develop cash values which may be available to the policy owner.
Additionally, the policy's cash value can be used as collateral for a loan. If the policy owner borrows from the policy, interest is charged at the rate specified in the policy. Any money owed on a policy loan is deducted from the benefits upon the insured's death, or from the cash value if the policy owner surrenders the policy for cash.
Universal Life
Universal Life has several unique features not found in whole life policies. Specifically, the policy owner is provided with the flexibility to vary the timing and amount of premiums and the face amount, depending upon present needs.
Cash values are a function of past and present premium payments, interest crediting rates, mortality charges and expense charges. The interest rate credited to the policy cash value is based on current rates of interest, subject to a stated guaranteed minimum interest rate. In addition, current mortality and expense charges are deducted from the accumulation value, but the only guarantee is that these charges will not exceed certain maximums. As a result, the policy owner bears more of the risk of adverse trends in mortality and expenses than if a traditional whole life insurance policy were purchased. On the other hand, if the insurance company's mortality costs and expenses improve, the policy owner may benefit through lower charges.
Second-To-Die or Survivorship Life Insurance
This is one policy that covers the lives of two individuals, typically a married couple. The death benefit is payable only when the last of the two individuals die. Typically this policy type is used to provide liquidity to pay estate taxes when the second spouse dies. Other uses of this form of life insurance include: to protect dual income families, to provide key person business insurance, to replace an asset gifted to charity and to fund a business buyout.
Because of the timing of the death benefit payment, the premium charges for survivorship plans are generally lower than those of comparable single life plans.
Second-To-Die policies are available in whole life, universal and variable life versions and can be funded on either a single premium or annual premium basis.
Variable Life Insurance
Most people think Long-Term Care refers to nursing home care for elderly individuals. You might be surprised to discover who actually needs care… and who pays.
While it's true that nursing home care qualifies as Long-Term Care, that's only part of the picture.
Long-Term Care encompasses a wide range of services when individuals are unable to care for themselves and need help with normal activities of daily living. These include eating, bathing, dressing, toileting and transferring (such as moving from your bed to the bathroom). Long-Term Care often involves the most intimate aspects of someones life.
It's also the supervision, someone with a cognitive impairment (such as Alzheirmer's disease) typically requires.
Millions of working-age Americans need Long-Term Care while recovering from an accident, because of chronic (long-lasting) health problems or disability that affects their ability to perform everyday activities
You might be surprised how affordable protection really is, especially when you compare it to having to pay for care yourself. You can save more by getting protection at younger ages and when you take advantage of discounts available (such as spousal or partner discounts).
Most of us save our money after we pay taxes from our paycheck. We save money for a variety of reasons: a liquid emergency fund, vacations, a new car, a new home, our children's education and a comfortable retirement lifestyle.
Investments for savings take many forms – from checking & savings accounts, money market instruments, CD's, annuities, mutual funds, stocks, bonds and tax-free bonds. Each one has its place.
At Oldham Resource Group we help determine, with you, how to allocate your savings to help meet your objectives. Then, we offer the most consistent performing investments. Call us (800)626-6106.
Investment options available under Oldham Resource Group, Authorized Distributor for 403(b) contributions to:
Oldham Resource Group – FlexSelect Plan
(Mutual Funds Platform, choose from over 1,800 funds and 250 fund families, No-load and load-waived mutual funds)American Funds
Franklin Templeton
Great American – GALIC
ING / Voya
MetLife
Oppenheimer
Putnam
Security Benefit
Security Mutual
Symetra
Investors should carefully consider the investment objectives, charges and expenses of any product before investing. For a prospectus containing this and other information call your financial representative. Please read prospectus carefully before investing.