ABC Company 401(k) Retirement Planning Meeting | June 28, 2011

ABC Company 401(k) Retirement Planning Meeting | June 28, 2011

TODAY’S AGENDAAbout Your Plan

The Benefits of ParticipatingInvesting Options

Accessing Your Account

LEARN ABOUT YOUR PLAN

WELCOME TO THE PLAN

Did you know the average American may spend 30 years in

retirement? Financial experts say that many people spend

more time planning a vacation then they spend planning their

retirement.

Now that you’re eligible, consider enrolling in the ABC

Company 401(k) Savings Plan to ensure you have the money

you need in the future.

Plan today for tomorrow. It’s easy, so let’s get started.

Let’s Explore the 5 Ways the Plan Makes It Easy to Save

1) It’s Convenient 2) Your Employer Helps You Save 3) Tax Benefits 4) Portability 5) Simple Investment Choices

* Turn to page 1 in your enrollment kit

Turn to page 1 in your enrollment kit

PREPARE FOR YOUR FUTURE

YOU CAN’T RELY ONLY ON SOCIAL SECURITY

Financial experts say you’ll need from 70% to 90% of your pre-retirement income to maintain your standard of living in retirement. Where will it come from? Today, Social Security accounts for just over one-third of the income of the average retired American. The truth is that your retirement savings, as well as other personal income sources, will be the key to your future financial security.

Turn to page 1 in your enrollment kit

PREPARE FOR YOUR FUTURE

TAX SAVINGS

Saving for retirement will cost you less than you think. Because of the tax breaks your 401(k) offers, each dollar you contribute will cost you less than a dollar from your paycheck. Consider the following illustrations for a 30-year-old earning $40,000.

Turn to page 2 in your enrollment kit

PREPARE FOR YOUR FUTURE

A LITTLE MORE CAN MAKE A BIG DIFFERENCE LATERCan’t afford to save right now? Even a small amount invested on a regular basis can make a difference over time. Investors often find ways to lower household expenses to allow for higher savings.

START SAVING EARLYStart saving as much as you can, as early as you can. Try to work up to the percentage that provides the maximum matching dollars from your employer. Consider increasing your contribution just 1% a year, each year. For example, suppose you contribute $300 per month to your traditional 401(k) and earn an average annual 8 percent rate of return. If you participate for 20 years, the account could be worth $178,184. But if you had started 10 years earlier and contributed at the same rate for 30 years, your account could be worth nearly three times that — $450,388.

Turn to page 3 in your enrollment kit

INVESTMENT OPTIONS

A LITTLE MORE CAN MAKE A BIG DIFFERENCE LATERSelecting investments is a personal choice based on how much risk you are comfortable with and how many years you will invest your money. Picking the most suitable investments is easier if you know the three most common types of investments:

Equity investments are ownership in one or more companies.

Bond investments are loans to government entities or companies that usually pay interest regularly until they mature.

Money market investments are short-term loans to a government or highly rated company

Turn to page 4 in your enrollment kit