Why do you participate in the deferred compensation plan?

1) It allows individuals to invest pretax dollars, 2) When there was an employer match, it was free money, and 3) The fund is yours if you decide to work somewhere else before you retire.

Who or what influenced you to start saving extra money for retirement?

At new employee orientation in 1991, the Department Director gave two tips that would help state employees who do not make high salaries: 1) participate in the deferred compensation plan, and 2) use the flexible spending accounts, as both are pre-tax and will make you money.

How did you decide how much to save in the Plan each paycheck?

Something I had read previously on finances suggested a goal of 10% of your paycheck.

What do you think keeps other state employees from participating in the deferred compensation plan?

Procrastination, I’ll do it later, or when I get older. When I was young, I was reluctant to contribute to a regular IRA, because I might want to buy something with that money.

Have you taken advantage of the free training and consultation services provided by plan?

Yes. I have attended workshops and training offered by the deferred compensation plan staff. The financial education professionals are very knowledgeable and provide un-biased information and advice. Most commission based financial advisors/planners will suggest what they sell, as their income depends on moving that product.

You are toward the latter part of your career with the state. What savings advice would you give other employees at the same stage of their careers?

1)Attend all the education, training, and retirement seminars that are available, 2)continue making contributions, or increase them if you can, 3) consider working a few extra years to build up your account, and 4) make an appointment with an education specialist to go over your situation, goals, and needs. They give good advice.

What has been the most rewarding part of participating in the deferred compensation plan?

Watching your nest egg go from a very small amount to a significant amount that can make a difference in your retirement when added to your pension and social security.