Advantages of Expert Guidance

RP-0011-0314
Tracking #1-243641
2Q 2014 Participant Newsletter
03/27/2014

Retirement planning is not difficult, but your options can sometimes become confusing to sort through on your own. Fortunately, you may have access to advisor tools and online resources through your company’s benefits program to help you make decisions that are right for you.

For example, a 2011 study showed that plan participants who received some sort of outside help have earned higher returns than those handling their own investment choices—by 2.92% a year.2 Having access to an advisor or online help not only may save you time, but it could also prevent you from making bad mistakes, such as pulling money out of the market during steep declines and then failing to get back in during recoveries. Advice that’s available in your plan may offer unbiased guidance on investment options that best meet your objectives and risk tolerance, impose rebalancing discipline, and spur you to take action if you haven’t made any changes to your plan in a while.

A financial advisor is equally valuable when it’s time to transition out of your plan when you retire or change jobs. An investment professional will also help you decide which distribution option is best for you, whether it’s a rollover IRA that provides access to additional investment options or periodic withdrawals that your present plan lacks, or a recommendation to stay in your plan.

You should be aware that financial advisors charge fees or commissions for their services and that target date funds and managed accounts also have fees and charges associated with them. If you prefer to manage your account yourself, there are a host of online calculators and worksheets available from your plan provider, AARP.com, and many other sources. Check out AARP’s blog for practical ideas for managing your finances at: http://tinyurl.com/AARPBlogs.

More Help = Potentially Better Returns

Let’s suppose Steve and Charlene both invest $10,000 in their retirement plan at age 45. Steve likes to make investment decisions on his own, while Charlene gets advice from a financial advisor and online resource. A 2011 Financial Engines/Aon Hewitt study shows that Charlene, who uses advice, earns 2.92% more a year on average in her account than Steve ($71,400 versus $42,100, respectively).

Assumptions: Both Steve and Charlene invest a lump sum of $10,000 on their 45 additional contributions, but their portfolios grow at median annual rates such that Charlene earns 2.92% more a year than Steve over 20 years, net of fees. of any investment. All investing carries risk, including risk of losses. detailed explanation of how this hypothetical example was constructed Plans: 2006 Through 2011,” Financial

2 Aon Hewitt and Financial Engines study of 425,000 plan participants, in eight large 401(k) plans, who used target date funds, professionally managed accounts, or online help between January 1, 2006, and December 31, 2010.

Disclosure: This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. LPL Financial and its advisors are providing educational services only and are not their particular needs. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Kmotion, Inc., P.O. Box 1456, Tualatin, OR 97062; www.kmotion.com © 2014 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this newsletter are those of Kmotion. The articles and opinions are for general information only and are not intend recommendations for any individual. Nothing in this publication shall be construed as providing investment counseling or directing employees to participate in any investme Please consult your financial advisor or other appropriate professional for further assistance with regard to your individual situation.

Assumptions: Both Steve and Charlene invest a lump sum of $10,000 on their 45th birthday. They make no additional contributions, but their portfolios grow at median annual rates such that Charlene earns 2.92% more a year than Steve over 20 years, net of fees. This hypothetical example is not intended to depict the performance investment. All investing carries risk, including risk of losses. Individual results will vary. how this hypothetical example was constructed, please see “Help in Defined Contribution inancial Engines and Aon Hewitt, September 2011, pp. 10, 46. Aon Hewitt and Financial Engines study of 425,000 plan participants, in eight large 401(k) plans, who used target date funds, professionally managed accounts, or online help between January 1, Disclosure: This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. LPL Financial and its advisors are providing educational services only and are not able to provide participants with investment advice specific to their particular needs. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material. P.O. Box 1456, Tualatin, OR 97062; www.kmotion.com 2014 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this newsletter are those of Kmotion. The articles and are for general information only and are not intended to provide specific advice or recommendations for any individual. Nothing in this publication shall be construed as providing investment counseling or directing employees to participate in any investment program in any way. Please consult your financial advisor or other appropriate professional for further assistance with regard to your individual situation.