Retirement 101
What is the main benefit of a Defined Benefit Plan?
Pension, Guaranteed Income for Life
What type of Retirement Plans did employers use before 401ks became the normal?
Defined Benefit Plans (Pensions)
What are the two different type of IRAs and 401ks?
Roth and Traditional
What is your only option when investing during a bear market?
Stay the course!
Who is the President of Workplace?
Brock Johnson
What is the process called when you transfer funds from one Retirement Account to another?
Rollover
What are the 2023 Contribution Limits for 401ks? (No Catch-Up)
$22,500
What are the 2023 Contribution Limits for IRAs? (No Catch-Up)
$6,000
When did we enter the current bear market?
March 2020, the Dow Jones Industrial Average entered a bear market for the first time in 11 years
Who is the Record Keeper for the Morningstar 401k Plan?
Charles Schwab
What are the distributions called that all retirees must take at the age of 73?
RMDs
What Retirement Account is used by many state and local governments and some nonprofit organizations?
457(b) Plan
At what age do early withdrawals no longer receive a penalty?
59 ½ (same for a 401k too)
What is one of the main drivers of returns for Participants with Long Investment Horizon?
Compound Interest
What % does Morningstar match for our 401k?
75% of every dollar up to 7%
What is the difference between pre-tax and Roth contributions?
Pre-tax: tax-deferred, you pay taxes on your balance come retirement when you withdraw (includes earnings), immediate tax-break now
Roth: post-tax contributions, you pay taxes up-front when you contribute, tax-free withdrawals come retirement (including earnings)
What is the most someone can contribute to their 401k for 2023 being age 50 or older?
$30,000
Can Morningstar help me open up an IRA?
No, we only manage and advise on your employer-sponsored retirement account. You can open an IRA on your own at any brokerage or financial institution of your choice.
Given a typical glide path what Risk Level and Asset Allocation should a 65 year old be at?
More Bonds than Stocks
Specifically, Conservative and 75% Bonds, 20% Equites, and 5% Cash
How many Investment products Workplace uses? Can you name them?
Managed accounts, MPA, fiduciary services and custom models
What are the 3 Key Points to a Successful Retirement Plan?
Contributions, Asset Allocation, Time in the Market
What is it called when someone takes money out of their retirement account to meet pressing financial needs?
Hardship Withdrawal
T/F: You can start withdrawing from your IRA at age 62, the same age you can begin to collect Social Security.
False. You can begin withdrawing from your Traditional and Roth IRA at age 59 ½ or earlier with some exceptions.
Challenge Zone: What type of shares do not normally have voting power, but receive a fixed percentage of par value?
Preferred Shares
When did M* first start to use Managed Accounts?
2002