What's New?

With the 2023 New Year off and running, and the first quarter of the year continuing a yo-yo of market volatility but ending in positive territory, most Nevadans are excited to bring in the spring and summer months after an extremely snowy winter. With that, NDC continues working hard to bring the most value to participants and assisting them on their financial wellness journey to and through retirement.

An investment change is coming to the NDC Plan

At its Annual Strategic Planning Meeting on January 21, the NDC Committee received a presentation and data to consider potential changes to a more cost-effective asset class and higher-ranking fund manager within the Large Cap Growth category of the NDC core investment lineup.

With the assistance of our contracted investment consultant, Hyas Group, the NDC Committee approved to replace the T. Rowe Price Growth Stock Fund – I Class (PRUFX) with the JPMorgan Large Cap Growth Fund Class R6. The change will impact approximately $53 million in Plan assets and potentially provide participants with more interest earning potential.

The change will take place automatically. You are not required to do anything. The change will take place on Friday, April 28, 2023 after the close of the New York Stock Exchange (NYSE), generally 1:00 p.m. PT.

For more information on this change, please review the notice that was mailed to participants in late March. You can also view the notice at nevada.beready2retire.com. Please contact the NDC Administrative Office at (775) 684-3398 for questions about this investment change.

Annual Notice: NDC participants will receive a customized Retirement Evaluation in 2023

For the last two summers, NDC has deployed successful annual Retirement Evaluation* campaigns to active participants. The campaign returns this year to help promote retirement readiness, increase financial literacy, and improve financial wellness. Actively participating participants with a balance of at least $5,000 in their NDC account will be provided this customized annual Retirement Evaluation by mail and email over the summer. In preparation for the annual Retirement Evaluation campaign, we encourage all NDC participants to visit nevada.beready2retire.com to register their NDC account username and password online if they have not already done so. We then suggest that all participants log into their NDC account and use the myOrangeMoney^®** experience on the account homepage to provide NV PERS pension data, salary data, information about their retirement goals, and any other financial data that would help to estimate if they are on track for retirement. The more information participants provide myOrangeMoney, the more accurate and impactful the Retirement Evaluation will be in estimating your future retirement income. If you need assistance with the myOrangeMoney experience, please call the NDC Plan Information Line at 855-GO-RET-NV (467-3868).

NDC receives a P&I Eddy Award from Pensions & Investments

The P&I Eddy Awards were created over 25 years ago to identify and reward the best practices in providing investment education to defined contribution plan participants. We are proud to announce that NDC was honored in March at the annual Pensions & Investments DC East Conference with a 1st place Eddy Award in the Financial Wellness category among public plans with more than 5,000 participants. We congratulate all of the winners and thank you for placing your trust in the Nevada Deferred Compensation Program as an important component of your retirement saving strategy.

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

*Advisory Services provided by Voya Retirement Advisors, LLC (VRA). For more information, please read the Voya Retirement Advisors Disclosure Statement, Advisory Services Agreement and your plan's Fact Sheet.

**IMPORTANT: The illustrations or other information generated by the calculators are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. This information does not serve, either directly or indirectly, as legal, financial or tax advice and you should always consult a qualified professional legal, financial and/or tax advisor when making decisions related to your individual tax situation.

What’s your money IQ?

If you are like many Americans, you either learned about money from others or by making financial mistakes growing up. You probably know some concepts like spending less than you make, but many of us fall short of the skills needed to confidently manage day-to-day finances and invest to grow money for the future.

April is Financial Literacy Month. Financial literacy is the knowledge and application of various financial skills. It is essential to your whole health, wealth and well-being so you can provide for yourself now and in the future. Without basic money management, it’s easy to get into financial confusion. Over time, that confusion can cost you. NDC’s contracted recordkeeper, Voya Financial^®, has developed a Financial Literacy Knowledge Center to offer a wide range of topics to help increase your money knowledge so you can take the steps needed to make confident financial decisions.

Getting to where you want to go will depend on the choices you make today. Are you ready to learn more so you can better manage your money for life? Visit voya.com/page/voya-financial-literacy-knowledge-center for more information. Remember, it is never too late to plan, invest and protect your future. We want you to live well and retire well, so we encourage you to visit the knowledge center today to help master your money for life.

What can you learn from your taxes?

We can all use every dollar we earn. When you overpay on your taxes throughout the year, though, you essentially give the government an interest-free loan.

That’s money you don’t get to invest and use for yourself during the year. Did you know that the average income tax return in 2022 was $3,039?¹ Have you considered what putting those dollars to work within your retirement savings plan could mean for you over time?

When you contribute an additional $2,000 per year (equal to $76.92 per bi-weekly or $166.67 per monthly pay period) from these ages until age 65, here’s how much more it could mean for you in retirement.

These examples assume a retirement age of 65, an annual investment of $2,000, and an average annual return of 7% compounding once annually.
These assumptions are meant for educational use and not a guarantee of future results.

Every pre-tax dollar you contribute to the NDC Program reduces your taxable income by a dollar. As a result, you’ll pay less in your current income taxes for the year because, in the eyes of the IRS, you’ve been paid less money. This can help reduce the impact to your overall take-home pay. You’ll pay taxes on the contributions and earnings in the year the money is distributed, which could mean a lower tax bracket when you’re older.

Visit nvdeferredcomp.timetap.com to schedule an appointment with one of the local financial professionals from the NDC’s contracted recordkeeper, Voya Financial. Together, you can review and discuss your retirement saving strategy. This tax season, consider contributing more to your retirement now for the potential of more later.

How to find the upside in a downturn

Even though we know it’s important to stay informed about the world around us, the news can sometimes be too much. It’s important to maintain a sense of order and overall well-being in life, no matter what’s going on around us. So how do we find the upside in an economic downturn?

It’s true that our money may not go as far as it did before inflation, but it doesn’t have to impact your whole health and wealth. Maintaining a positive mindset during stressful times is a key to overall wellness. You can also:

1. Set aside quiet time to just breathe. Shut off your phone, clear you schedule, and then clear your mind.
   
   
2. Look for the good and think about what makes you grateful. Take stock in what you have instead of focusing on what you don’t.
   
   
3. Make self-care the top priority for your health. Find ways to destress, nourish yourself, connect to others and build fun into your life. Then, turn to your wealth.
   
   
4. If you have debt, make a plan to get out of it. Not enough emergency savings? Save more to avoid future debt or to keep from raiding your retirement fund. Not sure how to change your money habits? Consider ways to cut expenses, earn more money and build a realistic spending and saving plan for yourself.

Economic uncertainty will always be around in some form. While you can’t change what is happening in the world, you can change your response to it and build healthy habits in all areas of your life. For more tips and insight to help recession-proof your life and manage market downturns, visit Voya’s Navigating Market Volatility page at voya.com/page/navigating-market-volatility.

What kind of retirement withdrawal strategy do you have in place?

You’ve spent years climbing that hill called life, preparing for the day when you can ease back on the throttle and enjoy what you’ve accomplished. Now that you’ve begun taking, or are planning to take, income from your savings for retirement, it’s important to consider how to make the most of what you have.

Think of your retirement savings as a monthly “paycheck replacement”

You may have several sources of retirement savings like your NDC account, NV PERS pension, and Social Security. Whatever the source of your income, think of it as a paycheck replacement from yourself that you’ll be counting on for years to come. That also means considering things like budgeting and different tax strategies.

Know what you need to spend each year. Because of taxes and other requirements, you’ll need to decide the order and amount of each asset you tap. You must also consider which accounts require you to take a minimum distribution each year. A tax advisor or financial professional can be a great help at this time.

Know your conversion options. You may want to convert some of your assets into other products that may be better suited to provide a steady and reliable income stream. Voya and the NDC Administrative Office can help review and discuss the options that may make the most sense for your unique situation.

We all want to live a long and healthy life in retirement. That means taking a realistic look at a few factors that can affect your income stream.

Market downturns. When markets overall perform badly, they can still impact the value of even a conservative portfolio. After big market swings, you may need to re-evaluate and adjust your withdrawal strategy.

Taxes. If your income stays about the same in retirement, your taxes may stay the same too. Any decision to withdraw principal or earnings from a savings account, though, could have a tax impact.

Medical expenses. Even though Medicare kicks in when you turn 65, treating unplanned health issues can have a big impact on your finances. Remember, the amount of taxable income you have in retirement can affect the cost of your Medicare insurance coverage.

Longevity. Life expectancies are increasing, so make sure your income strategy considers that you (and your spouse) could live another 30 years or more. According to the Society of Actuaries, there is a 50% chance that a couple currently aged 65 will have at least one spouse live to age 90.

The challenges of retirement aren’t all that different from the ones you’ve been handling for years. You don’t have to do it alone, though. Resources through the NDC Program, your tax advisor, and other trusted professionals can work with you to develop and adjust your retirement withdrawal strategy as needed. We’re here to help.

THE DEFERRED WORD   |  First Quarter 2023

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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