What's New?

The Nevada Public Employees’ Deferred Compensation Program (NDC) welcomes the summer with a bunch of exciting tasks at hand, a new look, and Plan enhancements to assist participants and employees as you NV Your Retirement.

REMINDER: Changes to the NDC core investment lineup took effect July 9, 2021

As a reminder, at its March 2, 2021 Quarterly Committee Meeting, the NDC Committee elected to make changes to the NDC core investment lineup. Communications have been sent to all participants’ address of record. The following changes took place on July 9, 2021 at close of the New York Stock Exchange:

• NDC will be adding the Sterling Capital Total Return Fund – Class R6 (STRDX) to the lineup as a side companion to the already utilized Vanguard Total Bond Index.
  
  
• NDC will be mapping the Vanguard Institutional Index (VINIX) to the new Vanguard Institutional Index Fund – Institutional Plus Shares (VIIIX). This will impact approximately $117 million in Plan assets. The move will save participants approximately $22,000 per year in investment costs.
  
  
• The Plan will eliminate the Hartford MidCap HLS (HIMCX) and Vanguard Extended Market Institutional Index (VIEIX), and will map the near $125 million in assets in these two funds to a newly added Vanguard Extended Market Index Fund – Institutional Plus Shares (VEMPX). The move will save participants approximately $406,000 in investment costs annually.
  
  
• NDC will eliminate and map assets in the Vanguard Developed Markets Index (VTMNX) to the newly added Vanguard Total International Stock Index Fund – Institutional Shares (VTSNX). The move will provide participants with emerging markets exposure inside the index.

NDC welcomes its newest members to the NDC Program

The Nevada Public Employees’ Deferred Compensation Program welcomes the following local government entities/political subdivisions into the NDC family:

• City of Carlin
• Grover C. Dils Medical Center
• TRI General Improvement District

We look forward to working with all of these government employees and assisting them with their financial wellness now and in the future.

NDC reminds its participants to register your NDC account Username and Password for enhanced online security

NDC Administration encourages participants to make sure that they register their accounts online through the NDC’s secure website at nevada.beready2retire.com (click Register Now) or through the NDC website at defcomp.nv.gov (click Login to Voya).

Mark your calendars now….

To promote and participate in National Retirement Security Month (NRSM), NDC will again be hosting the 15th Annual Financial Education Days in October 2021. Be sure and mark your calendars to be able to attend one of the virtual workshop sessions. More detailed information will be sent out to employees and participants in the months to come, and detailed in the next quarter’s Deferred Word newsletter as well.

In closing, all of us here at NDC wish you and your family a safe and enjoyable summer.

Pay yourself first.

If you are like most Americans, you pay your bills as soon as you get paid.
That’s the right thing to do, right? Not exactly.

If you want to grow your wealth, you’ll want to pay yourself first. This is how many wealthy people manage their finances. They pay themselves first with a specific amount of money immediately into savings, and then live off of what’s leftover. That’s how wealth grows. Learn how to take small steps today to help you build toward more wealth later.

So how do you actually pay yourself first when you have so many bills?

Every time you get a raise, the first thing you can do is increase your pre-tax contributions to your NDC account. Even a small increase to your pre-tax contributions can have a big impact on retirement and, because it’s automatic, you won’t even notice the difference in your take-home pay. Taxes are generally due upon withdrawal of tax-deferred assets.

Paying yourself first and saving more sounds easy, right? But what about those bills? How can you save even a little more if your bills are larger than your income? Consider this:

1. Make sure you have a budget and know where your money goes. Then, trim some of your spending if you can. Keep your expenses low, and set realistic savings goals to find more to save.
   
   
2. If you come up short to pay bills, resist dipping into your savings as a bailout. It may solve a short-term problem, but it creates more challenges to your long-term goals. Find ways to increase your income, for example. You could sell unwanted items, start a side gig or take a part-time job. Then, resolve to live by your budget and regularly monitor your monthly spending.
   
   
3. What about debt? While you continue to pay your normal bills, make it a priority to focus on getting out of debt. Visit voya.com/voyalearn today for a 2-minute video on how to prioritize debt and make a plan to eliminate it. Just search “debt” for the video, Spending and savings series: prioritizing debt.

As you find new ways to create income or manage expenses, we can help. Call (775) 886-2402 to schedule a personal appointment with a local Voya financial professional* to help you create a plan that pays yourself first with pre-tax contributions, using the NDC Plan. We want to help you create a healthier, and potentially wealthier, future.

*Information from registered Plan Service Representatives is for educational purposes only and is not legal, tax or investment advice. Local Plan Service Representatives are registered representatives of Voya Financial Advisors, Inc., member SIPC.

Protect your legacy and your loved ones.

What is life insurance?

If you have a family or loved ones who depend on you financially, life insurance can help you protect them. If something happens to you, the death benefits your policy provides can help them meet their future financial needs.

What does life insurance matter?

We all want to protect our families, especially when we are no longer there. Although death benefits are closely associated with life insurance, did you know there are life insurance products that also offer living benefits? An Indexed Universal Life policy, for example, can offer cash value for emergencies, riders for medical or long-term care expenses and flexible options to supplement retirement income. Life insurance can be an important part of your future financial strategy for you and your family. Once you’re adequately protected, you should think about estate planning.

Is estate planning for everyone?

Estate planning is not just for the rich. Your estate is basically everything you own at the time of death. If you don’t decide where it goes, the state you live in will. Putting everything in writing and in one place can help keep your estate in the hands of your loved ones. You may wish to consult with a legal professional to review your estate planning needs, and help build a holistic plan for your life and beyond.

Where do you stand financially?

You can measure your current level of protection by visiting nevada.beready2retire.com to log into your NDC account and take a financial wellness assessment. Just click Financial Wellness at the top of your account home page, above the orange money dollar bill. The assessment takes less than five minutes to complete and can help measure you on the six pillars of financial wellness, including protection. With your plan in place and organized, you can be more prepared to help protect everything and everyone that matters most to you.

Life happens. Here’s how to prepare financially.

How much emergency savings do you have?

Prior to the pandemic, emergency savings for most Americans was not so great. Did you know up to 46 million people depleted whatever emergency savings account they had?¹ That is just counting those who had emergency savings at all! The good news is that, despite this, more Americans surveyed have learned from the pandemic and are seeking to get back on track. 66% agree that they are now better prepared for future emergencies and 62% are saving more in order to cover future unexpected expenses.²

Savings rates are at an all-time high.

The biggest priority shift from this past year is that, regardless of cash flow circumstances, 69% of Americans agree that they have become more of a saver than a spender over the past six months.² Even saving the smallest amount consistently can add up over time. Starting with a $500 or $1,000 savings goal for emergencies is achievable if you set your mind to it – and set up a budget.

Where can you start?

The online budget calculator, available at voya.com/page/tools, can help you gain insight using the 50/30/20 strategy. That budgets your spending and saving to 50% needs, 30% wants, and 20% wishes. Grouping basic needs and wants can help you maximize your ability to save. A budget can also help you prioritize and personalize a new spending and savings plan based on your current situation. You can also meet with a local Voya financial professional to help you review and manage your saving opportunities. Call (775) 886-2402 to schedule an appointment to review and discuss your savings plan. Together, we can help you prepare for when life happens, unexpectedly.

Sources:
¹ NBCnews.com, 46 million Americans wiped out their emergency savings during the pandemic — How to turn it all around in 2021, https://www.nbcnews.com/know-your-value/feature/46-million-americans-wiped-out-their-emergency-savings-during-pandemic-ncna1254073, last accessed March 11, 2021

² Based on the results of a Voya Financial survey conducted through Ipsos on the Ipsos eNation omnibus online platform among 1,004 adults aged 18+ in the U.S. (including 534 who are currently working). Research was conducted Nov. 19-20, 2020.

This information is provided by Voya for your education only. Neither Voya nor its representatives offer tax or legal advice. Please consult your tax or legal advisor before making a tax-related
investment/ insurance decision.

Living out your retirment dreams.

Retirement doesn’t only mean that you’re no longer working. It means an entirely new lifestyle. What are your plans? Will you travel? Pursue a hobby? Open a business? Once you decide your goals, you can then figure out how to use your savings to fund your retirement.

According to general guidelines, your savings will need to replace 70% to 80% of your pre-retirement income – depending on how active (or expensive) your lifestyle is. You’ll need to consider how active your retirement will be, consider what you will do if you live longer than the average, and how you’ll be able to make your retirement funds last throughout your retirement years.

Retirement may end up costing more than you thought. Expenses associated with your job may have significantly decreased, as have your housing expenses (if you paid off your mortgage), but other expenses like travel and hobbies may have risen. When considering all of your costs in retirement, it’s important to consider:

• Inflation – In retirement, inflation becomes even more significant because you’re on a fixed income. Prices may rise, but your income won’t. Consider that in 1979, the average price of a new home was $71,800; as of September 2019, the average price was $362,700.
  
  
• Taxes – Tax deferral was an incentive to save for retirement, but you can only “defer” taxes for so long. While you may now be in a lower tax bracket as you draw income, you’re also pay taxes on it.
  
  
• Medical – Make sure you understand all of your medical benefits and what your coverage includes.

By setting goals in your retirement and understanding how much you need to achieve them, you can enjoy the retirement that you worked so hard to achieve. To learn more about what it takes to continue living out your retirement, contact (775) 886-2402 to schedule an appointment with a local Voya financial professional.

THE DEFERRED WORD   |  Second Quarter 2021

Nevada Public Employees’ Deferred Compensation Program (NDC)
Nevada State Library and Archives Building, 100 N. Stewart Street, Suite 100, Carson City, NV 89701

Phone 775-684-3397    |    Fax 775-684-3399    |    defcomp.nv.gov

Plan administrative services are provided by Voya Institutional Plan Services, LLC (VIPS). VIPS is a member of the Voya^® family of companies and is not affiliated with the State of Nevada Public Employees’ Deferred Compensation Program.

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