Quote of the Month

"This one step - choosing a goal and sticking to it - changes everything." Scott Reed

RSG welcomes you to the December 2001 edition of The Retirement Strategist. We hope you enjoy our actionable ideas for implementing a better retirement stategy. Remember that time can be your greatest friend; the sooner you implement excellent retirement savings ideas, the better.

1. Questions From Members
2. Timely Investment Tip$: Supplemental Retirement Plan (SRP)
3. Fiscal Therapy: Brokerage Accounts
4. Retirement Strategies Group Service Highlight: How We Can Help You

QUESTIONS FROM MEMBERS

Q.	I work for a non-profit organization and our board is not willing to pay for a 401(k). What alternatives do I and the other employees have? Mobile, AL
A.	Many non-profit organizations are financially strapped to a tight budget and unfortunately cannot afford a 401(k), which can cost anywhere from $700 and up. Many non-profits do not realize the advantages they have over for-profit companies. You have a variety of retirement plans available to you that for-profits may not: 401(k), Simple IRA, Profit Sharing, 403(b), and 403(b)7. If your organization is not a 501(c)3, the technical identity for some non-profits, then you may be eligible for a 457-Deferred Compensation Plan. It works much like the 403(b)7, but there are some minor differences.
Q.	I have an old 401(k) and I don't know what to do with it. What would you recommend? Memphis, TN
A.	Many of us have switched jobs from time to time and we don't feel like hassling with all of the paperwork from our old retirement plans. A 401(k) is an organized retirement plan with a selection of mostly mutual funds to choose from. Depending on the type of plan your ex- employer has installed, your investments in this plan may be underperforming. It's a good idea to take a look at it now and get it under your control. One option available to you is to roll it into an IRA. This is not always the best decision, but it is the most common one.

TIMELY INVESTMENT TIP$

The ideal candidate for an SRP is someone who has already fully funded the retirement plan offered through the workplace and, if eligible, has fully funded their IRA options. If a person has done these things, and has income left to invest towards retirement, the Supplement Retirement Plan is the most advantageous way to go.

The SRP is the Cadillac of retirement plans! Reference the bullet points to see why an SRP is a wonderful way to save for retirement.

No contribution limits Tax-Free income Access to some of the best professional money managers in the industry like Fidelity, Janus, Alger, Pilgrim Baxter, Oppenheimer and many others Tax-Free switching between money manger portfolios (mutual funds) via telephone

Tax-Free growth Wide variety of investment portfolios: i.e. stocks, bonds, international, emerging markets, money markets, fixed income Tax-Free and probate free survivor's benefit No penalties for withdrawal before age 59 ˝

These plans are not for everyone, but if you feel you may fit the criteria for SRPs, it would be to your benefit to pursue this option.

Brokerage Accounts

Are you one of those people that have trouble saving money? Well, maybe it's time you started paying yourself first!

As a service to our members, you now have available to you our full-service brokerage account with on-line access at no cost! Yes, that means free of charge!! So, all that money you may have sitting in a bank, checking, or savings account, earning an exciting 2% (which means you're really losing money after inflation takes a bite), can now be in a brokerage account where the money market rates are near 6%. That's about three times as much as you would normally earn in a boring savings account. You can even write checks and have a debit card where the funds are taken right from the money market account.

Sound too good to be true? Well, here's the exciting part…with a brokerage account, no longer will you have to deal with the hassle of viewing several different financial statements. If your current portfolio includes investments from multiple companies, and you receive a handful of statements every month from each company, wouldn't it be nice to consolidate everything into one account - free of charge with only one statement? The main advantage of a brokerage account is that it allows you to consolidate all of your investments, without having to sell anything, into one account, while receiving one monthly statement for all your holdings.

Once you take charge of your money by opening a brokerage account, you can easily begin planning for retirement, your child's education, or whatever your financial dreams may be. To make a transaction with a brokerage account, all you have to do is call one of the dedicated RSG financial consultants and tell them you want to move some money from your brokerage account to any one of the 10,000+ mutual funds or company stock investments that you can choose from.

So, let's review - in one account you can have a checking account paying around 6% interest, have every imaginable investment available to you at your fingertips, always have the option to view and track all of this on-line, and receive all of this on one, convenient, monthly statement! It's much easier to save when you have all your resources in one place with only one phone call to make.

Simplify your portfolio and your life with a brokerage account.  

You have already taken the first step in requesting to receive our monthly e-bulletin. If you would like additional information including a free review of your current portfolio, information on brokerage services, mutual funds, tax-deferred annuities, or have a question on a specific financial program, please contact Retirement Strategies Group.