December 2014 DC Update
Casey Fick: Hi I’m Casey Fick communications manager for the State of Missouri Deferred Compensation Plan and this is the holiday edition of the DC Update. This time of year can be especially stressful as you’re balancing the financial demands of the holidays with other responsibilities. As a retirement saver, it’s especially important that you not lose sight of your long-term financial goals.
State Employee: Retirement savings? Ba-humbug. How can I think about retirement with all of these bills and this huge shopping list? I wouldn’t even know how to start saving for retirement. I’m so ready for the holidays to be over.
Casey Fick: Excuse me. Hey. You. Sitting at your desk.
State Employee: Are you talking to me?
Casey Fick: Yes you. It seems you’ve got a bit of the holiday blues.
State Employee: You’re always talking about retirement savings, but how on earth can anyone think about retirement when there are so many other things I got to buy this month? I’m not even old to retire.
Casey Fick: Well, first of all, even newer employees need to be thinking about retirement. After all, the sooner you start saving, the more time your savings have to grow. But honestly, you’re making it way too hard on yourself. Let me show you something:
State Employee: Wait a second, that’s me. I remember that day. It was a few years ago when I first started working for the state.
Casey Fick: So, what was the occasion?
State Employee: I think I was celebrating my first paycheck. You know how it is when you have your first real job? There’s nothing wrong with spoiling yourself from time to time.
Casey Fick: I agree, I agree. And the thought of saving money for retirement shouldn’t make you think you can’t splurge every once in a while. The thing is, as a state of Missouri employee, you can save quickly and easily with the deferred compensation plan. Once you set up a savings amount, it automatically comes out of your paycheck. It’s pretty painless. The most important thing is that you’re paying yourself first before you pay anyone else. And saving money for retirement won’t break the bank. Three or 4 % per pay check is what, one or two less shirts?
State Employee: That’s great, but I’m not an investment guru. I wouldn’t know the first thing about managing money.
Casey Fick: That’s the beauty of the deferred compensation plan. Look, state employees are doing some pretty great things across Missouri day in and day out, but we don’t expect them all to be investment professionals. That’s why we offer custom investment products like the Missouri Target Date Funds. Ever heard of em’?
State Employee: Like the store, right?
Casey Fick: Not exactly! A Missouri Target Date Fund is a savings option that takes the guesswork out of managing your investments. I’m sure you’ve heard about not putting all of your eggs in one basket, right? Well, all you do is pick the target date fund number that’s closest to your retirement year, make regular contributions to your account and then investment professionals will do the rest. It’s like an automatic way to keep those eggs in different baskets throughout your career!
State Employee: Sounds great, but what if I questions along the way?
Casey Fick: Let me show you something else:.
That’s Tasha Reinkemeyer at this very second giving a one-on-one consultation at the local plan office in Jefferson City. Tasha and 6 other education specialists are responsible for educating state employees on the benefits of the deferred compensation plan. Her fellow education specialists are located throughout the state, so employees are never far from an answer to their questions. And they do more than FREE consultations; they also present FREE seminars on a number of financial topics that can help savers throughout their career. Just go to www.modeferredcomp.org and click on the red button at the top of the page to see an event in your neck of the woods.
State Employee: Yeah, but nothing’s ever FREE. What’s the catch?
Casey Fick: There are no catches. The deferred compensation plan is a state employee benefit. Representatives like Tasha don’t earn commissions on the amounts you contribute to the deferred compensation plan or the investment products you choose inside the plan. They really are here to make sure you make the most of this important employee benefit.
State Employee: Yeah, well, after this holiday season’s over, it’s going to take a miracle to get my money back on track.
Casey Fick: It’s funny you would mention that. Beginning in February of 2015, deferred compensation plan education specialists will offer the Pocket Change financial seminar for state employees just like you. This two hour session will discuss important topics like where money will come from in retirement, ways employees can better manage their budget, taking advantage of state employee benefits, and understanding basic savings and investment topics.
State Employee: Sounds pretty cool. Sign me up!
Casey Fick: Well, if you’re interested in the session, let your HR manager know so that he or she can schedule a session with Tasha Reinkemeyer using the contact information on the screen. (800-392-0925, Option 2, Ext. 15)
State Employee: How’d you do that?
Casey Fick: Magic of course.
Casey Fick: Hey, let me show you one more thing.
State Employee: Wait, is that me? Is that what my retirement will look like? Where’s the beach, where’s my boat?
Casey Fick: Retirement is never as far away as it seems. It’s no doubt that life happens, things come up, days turn into months, months into years. The next thing you know, you’re knocking on retirement’s door.
State Employee (mouthing the words): Look at my hair
Casey Fick: Look, you can’t control time, but you can choose take control of your money now to improve your financial situation in the future. Getting started is easy. Log in to your deferred compensation plan account through ESS or by enrolling at www.modeferredcomp.org and set up your contributions. If you do this today your contributions will begin with your first paycheck in January, like an automatic new year’s resolution. And remember, take advantage of the free training. Take advantage of custom investment solutions. Take advantage of your time!
State Employee: I can do this. I know I can do this. If I stop spending all of this money I can still take control of my retirement, right? Where did you go?
Casey Fick: Thanks for tuning in to the holiday edition of the DC Update. As 2014 winds down, remember to cherish your past and learn from it, plan for your future because it’s closer than you think, and whatever your situation, remember there’s no better time to start saving than right now. Until next time, this has been Casey Fick from the deferred compensation plan, your smart, simple savings solution.
Included in the video above are the following important updates:
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Pocket Change Financial Seminar
Beginning around February of 2015, deferred compensation plan education specialists will start delivering the Pocket Change financial seminar. This unique, 2-hour training event will discuss important topics like where money will come from in retirement, ways employees can better manage their budget, taking advantage of state employee benefits, and understanding basic savings and investment topics. All attendees will leave the session with a personalized financial roadmap developed just for state of Missouri employees. If you’re interested in bringing this session to your agency, have your HR department contact Tasha Reinkemeyer at 800-392-0925, option 2, ext. 15. Check the Plan website for more details in 2015.
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2015 Contribution Changes
You still have time to make contribution adjustments that will go into effect on your January paycheck. Simply log on to the deferred compensation plan website via the ESS portal or www.modeferredcomp.org and navigate to the Contributions page to adjust your savings amount. Think of it as a quick and easy way to fulfill your New Year’s resolution!
Thank you once again for your continued support of the State of Missouri Deferred Compensation Plan. We wish you a safe and happy holiday season and a joyous new year.
The State of Missouri Deferred Compensation Plan Team