Paychex, Inc. · NASDAQ:PAYX
Paychex — Investor Presentation (2016)
28 slides from Paychex's investor presentation, 2016
Slide 1: 401(k) Plan for Your Future: 2016 Enrollment
401(k) Plan for Your Future 2016 ENROLLMENT © 2016, PAYCHEX, Inc. All rights reserved.
Slide 2: How Do You Envision Your Retirement?
How Do You Envision Your Retirement? Traveling to A life of Spending time with exotic places? leisure? family and friends? 2
Slide 3: Where Will the Money Come From?
Where Will the Money Come From? > Pre-Retirement Income + Other Retirement Income Total Retirement Income 3
Slide 4: How Much Will You Need?
How Much Will You Need? You will need more than Your income Inflation will affect you think! may be fixed. purchasing power. 4
Slide 5: Loss of Buying Power
Loss of Product Gallon of milk Now $3.50 In 20 Years $6.32 Buying Power Movie ticket $8.00 $14.45 Here is what some common items could cost in 20 years if the cost of Candy bar $.70 $1.26 living increases at a rate of 3% a Lunch for 1 $8.00 $14.45 year. Coffee (1 can) $6.00 $10.84 Monthly rent $700
Slide 6: Where Will Your Income Come From?
Where Will Your Income Come From? Social security? Regular Other Your savings? investments? 401(k) plan! 6
Slide 7: What is a 401(k) Plan?
What is a 401(k) Plan? The term 401(k) refers to a section of The federal government and most state the Internal Revenue Code that permits governments have enacted policies to deferring taxes on retirement savings permit federal income tax deferrals to deducted directly from payroll. encourage appro
Slide 8: Advantages
Advantages The tax The take-home advantage. advantage. 8
Slide 9: The Tax Advantage
The Tax Advantage You’re saving with tax-deferred dollars, which means you don’t pay federal or state income taxes on the money you save until you withdraw it, generally at retirement. At that time, you will likely be in a lower tax bracket. The interest on the money you put away is also tax def
Slide 10: The Compounding Interest Advantage
The Compounding Interest Advantage 10
Slide 11: The Take-Home Advantage
The Take-Home Advantage Without With 401(k) 401(k) ANNUALIZED GROSS $35,000 $35,000 PAY 401(k) 0.00 -1,750 Taxable Pay 35,000 33,250 Federal Income Tax -9,450 -8,978 (27%) FICA (7.65%) -2,678 -2,678 Conventional Saving -1,750 0.00 Account NET TAKE-HOME PAY $21,122 $21,594 ANNUALIZED SAVINGS: $472 11
Slide 12: You Are in Control!
You Are in Control! It’s simple. You decide how much money to invest. It’s deducted directly from your paycheck. You decide how you would like your money divided among the investments offered. 12
Slide 13: Who's Eligible?
Who’s Eligible? Those who meet the company’s eligibility requirements. Employees can enroll at any time once they reach their initial entry date. Age Service Hours of Employment 13
Slide 14: How Much Can I Contribute?
How Much Can I Contribute? Increments of whole percentages. For 2016: Up to $18,000 maximum. Age 50 or over, up to another $6,000 catch-up contribution. 14
Slide 15: Whose Money is It?
Whose Money is It? Your contributions are always 100% yours! Any employer contributions become yours according to your plan’s vesting schedule. 15
Slide 16: How Can I Access My Money?
How Can I Access My Money? Loans may be available. Participants may begin withdrawing at age 59½. Withdrawals must begin no later than April 1 of the calendar year following the later of: the calendar year in which the participant attains age 70½* or the calendar year in which the particip
Slide 17: Minimize Risk, Maximize Returns!
Minimize Risk, Maximize Returns! Start Keep your retirement Educate now. assets for retirement. yourself! 17
Slide 18: Reaching $1 Million is Possible
Reaching $1 Million is Possible $1 Million By Age 65 Age Monthly Yearly Value at 65 20 $200 $2,400 $1,001,822 25 $300 $3,600 $1,007,211 30 $450 $5,400 $1,004,951 35 $685 $8,400 $1,005,683 40 $1,065 $13,200 $1,009,037 45 $1,690 $20,400 $1,002,296 50 $2,850 $34,200 $1,002,890 55 $5,340 $64,200 $1,002,
Slide 19: Getting In…Enroll Today!
Getting In…Enroll Today! Enrollment Worksheet Enrollment Beneficiary Form Determine the amount. Create and access Return to employer as soon Designate which funds. your account online at as possible. https://benefits.paychex.com. or Call Paychex Retirement Services at 877-244-1771. 19
Slide 20: Enrolling In Your 401(k) Account
Enrolling In Your 401(k) Account >>
Slide 21: Getting Started
Getting Started ‘} Review the Participant Fee Disclosure, and print a copy for your records. > View Participant Fee Disclosure * 2 How do you want future Participant Fee Disclosures delivered to you? ®© By email (sent from Paychex) © On paper (distributed by your employer) *Notes: 1. You may withdra
Slide 22: Verify Birth Date
1. Verify Birth Date 2. Enter Deductions 3.ChooseFunds 4.Review and Submit 5. Confirmation q Verify your birth date 6/05/1971
Slide 23: Enter Deductions
Enroll vd 1. Verify Birth Date 2.EnterDeductions 3.ChooseFunds 4. Review and Submit 5. Confirmation 2 Set up your payroll deductions Choose dollars or percent Percent of wages “ Dollar amount Payroll Deductions Your Contribution {use increments of 1%) Regular contributions Pretax contribution [?) Ro
Slide 24: Choose Funds
1. Verify Birth Date 2. Enter Deductions. 3. Choose Funds 4. Review and Submt 5. Confirmation 53) Choose future funds Choose your funds ‘% of contribution Investments {must total 100%) Bond [7} Invest123 U.S. Government Bond Portfolio C Retirement Advanta’ ore Bond Equity {?) Invest123 Capital Appre
Slide 25: Review and Submit
Enroll 1, Verify Birth Date 2 Enter Deductions 3. Choose Funds 4. Review and Submit 5. Confirmation a4 Review and submit Effective Date Jan 9, 2013 Your Payroll Contributions 6% pretax 0% post-tax (Roth) Your Contribution Start Date Jan 9, 2013 Your Funds 10% into Invest123 U.S. Government Bond Port
Slide 26: Confirmation
Enroll 1. Verify Birth Date 2. Enter Deductions 3. Choose Funds 4. Review and Submit _5. Confirmation 8 Confirmation Please print this page for your records You are enrolled in your company's retirement plan Your confirmation number is 20309868. Effective Date Jan 9, 2013 Your Payroll Contributions
Slide 27: Managing Your 401(k) Account
Managing Your 401(k) Account Remember, 24/7 YOU’RE IN CONTROL! By Computer By Mobile App By Phone Access online at Free mobile access for Call 877-244-1771 from a https://benefits.paychex.com Paychex clients and their touch-tone phone. employees using Apple®- and Android™-powered devices. 27
Slide 28: Thank You!
THANK YOU! Speak to a representative CALL 877-244-1771