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The Nevada Public Employees' Deferred Compensation Program (NDC) welcomes the summer, which poses to be a bright one as we help you NV Your Retirement.

There’s no better time to be a State of Nevada employee

Thanks to Governor Lombardo, his administration, the Department of Administration leadership, and the State legislature, most State employees saw some hefty salary modifications as of July 1st. These modifications and cost of living increases will continue through the rest of the biennia. We strongly encourage all State employees to think carefully before taking any action with their increased salaries. Now is the time to plan how to best put that money to work for you and your family. You don’t have to plan alone, though. The NDC wants to help!

I vividly remember an employee visiting the NDC office about 10 years ago. She was a tenured classified employee who had dedicated nearly 35 years to public service and was finally ready to retire. We assisted with contributing her “final payout” leave balance to her NDC account, which saved her thousands of dollars in taxable income. While reviewing her NDC account, I commended her on her diligence and dedication in accumulating over $2 million for retirement. It was clear that she did an amazing job at saving early and saving consistently to put her money to work for her. I then asked, “would you share with me how you did this?” She was happy to tell me the secret to her success, explaining that she enrolled on her first day in the job and started contributing $12.50 per pay period. Even though it started off small, she continued to increase her contributions every time she received a merit step increase, cost of living increase, or promotion. With every career achievement, she would always increase her NDC contribution by at least 50% of her raise.

Before long, she was saving much more than $12.50 per paycheck. Even when she got married, had children, and tragically lost her husband to cancer when she was only 29 years old, she continued to live within her means while consistently saving for retirement. She said, “I won’t lie to you. There were a few years during my career that were hard to manage at times. But by the grace of the almighty God, I seemed to endure and never went without anything that was essential to living a great life. I still feel that way.”

Her story has always resonated with me, and I share it often when I present to government employees throughout the State. I hope her story of dedication and commitment to retirement planning inspires you on your journey as well.

Look for your annual Retirement Evaluation in August

Our annual campaign is a great way to get a snapshot of where you stand on your retirement planning journey. You can use the materials to identify how to improve your retirement saving and investment strategy, get guidance on achieving financial wellness goals, and improve your overall financial confidence. Keep an eye on your mail in August, and email if we have yours on file, for your Retirement Evaluation and information about the professional management support available through the NDC Program.*

Mark your calendar for Nevada Saves Month

As the NDC prepares for Nevada Saves Month in October as part of National Retirement Security Month, we will again host the 17th Annual Financial Education & Literacy Days for all NDC participants and non-participating employees. Look for more information in September about the virtual and live workshops that will be held throughout the month.

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

*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.

Smart ways to save more of what is yours

Ask yourself this question — how financially healthy am I? Saving for retirement is one of your most important financial goals, but it’s never done in a vacuum. There will always be more immediate life events and competing priorities that could impact your ability to save.

Balancing the needs of now with your goals for the future is key to your overall financial wellness. Knowing where you stand financially across all aspects of your life is also essential to building a healthier financial future. One way to know where you stand today is to log into your account and take Voya’s financial wellness assessment. The brief assessment will measure six pillars of your foundational financial health.

• Protection: We all want to protect our families and ourselves, so getting the protection you need is essential.
• Spending and saving: Your income is a lifeline, so what you do with it counts.
• Emergency fund: Saving for a rainy day involves making sure you have enough money set aside in an emergency fund when life hands you a surprise.
• Retirement: Maintaining your current lifestyle is one of the most important factors when it comes to an ideal retirement.
• Debt management: How would life change for you if you were debt-free? Knowing where to start is essential to reducing and eliminating debt.
• Other savings goals: Think of everything you’d ever want to do if you could. Besides retirement, are there other goals you’re saving for or are interested in saving for?

So how do you get ahead? Pay yourself first. When you save more, you pay yourself first. But where do you find more to save for things like retirement in the NDC Program or for unexpected expenses in an emergency savings account? Start by banking a tax refund, bonus, or raise you got or may get this year. Then consider building a new spending plan based on your financial wellness assessment results. Challenge yourself to a no-spend month. For one month, commit to only spending on necessities like rent, utilities, and food. No dining out, shopping trips or going to shows. Go to free local events, stream something at home, and create savings momentum by avoiding a month’s worth of unnecessary expenses. Review how much more you have at the end of the no-spend month. How many of those unnecessary expenses could you realistically avoid each month? How much healthier could you be financially by doing that for a year? It takes discipline but take the challenge today and unlock your savings potential.

For more ways to help cut costs and manage your finances properly, complete any of these seven money challenges at voya.com/blog/save-1378-or-more-completing-these-7-money-challenges.

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.

Will you be able to retire early?

Like many things, it may be possible but will take dedication and effort.

Think about when you hope to retire. Is it before age 70? Is it before age 65? If you tend to spend a lot, are you willing to curb some of that spending and create a budget you can live with in retirement? If you can, great. If not, an early retirement may not be for you.

The sooner you can learn to live within a budget now, the sooner you’ll be able to save more for retirement. Achieving true financial independence means living within your means, but what if you live into your 90s and beyond? Would you be able to live well with over 40 years of replacement income coverage if you retired at age 50?

So how much is enough?

It depends on your lifestyle and income. A good place to start may be by assuming you’ll need about 75% of your current salary each year in retirement to live the same lifestyle as you have today. Then think about your family’s medical history and longevity to estimate your potential life expectancy. The myOrangeMoney experience on your NDC account homepage can help you estimate your monthly replacement income in retirement based on how much you are saving, have saved, when you plan to retire, the performance of your investments, and other factors such as Social Security and even where you plan to live in retirement.

Retiring early also means managing healthcare costs for a longer period of time. Remember, you may need to have more saved when retiring early to cover medical expenses in the years before you can apply for Medicare. You’ll need to pay for healthcare coverage during that time and beyond.

What can you do now to help retire early?

If you are young, you can take advantage of potential compounding interest by saving early and consistently to your NDC account. If you are a little late to planning for retirement, you will need to save more of your paycheck to catch-up during your remaining working years.

No matter your age, you can also consider working with the team of local financial professionals from NDC’s contracted recordkeeper, Voya Financial^®. They can help you develop a savings strategy, prepare for unforeseen expenses, and create a plan to achieve your retirement goals. Visit nvdeferredcomp.timetap.com to schedule a virtual or phone appointment at a date and time that’s convenient for you.

To learn more about how much you may need to retire, find out in 60 seconds by visiting voya.com/article/how-much-do-you-need-retire-find-out-60-seconds and take action now to help you retire well.

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.

Take control of your finances

2022 saw soaring prices for gas, food, utilities, housing and more. Now in 2023, it's clear that economic uncertainty isn’t going away anytime soon.

Economists are expecting a recession sometime in the next year because interest rates are high, credit conditions have been impacted by bank failures, the job market is showing signs of cooling down, and consumer demand is slowing. Are you worried about how a recession could impact your finances? One thing you can do to help recession-proof your life is by prioritizing your debt and making a plan to eliminate it, not add to it.

If you have debt, you’re not alone. 80% of Americans¹ report that they have debt, and it’s not necessarily because of poor money management or bad spending habits. So how do you prioritize debt and know which debt to pay first? First, it’s important to know the difference between good debt and bad debt. Good debt is a mortgage, small business loan, or educational expense that helps you build and leverage wealth. Bad debt, though, is anything that you use to purchase goods or services that have no lasting value. If you don’t have cash to pay for it, that’s creating bad debt. Think about that before the next time you use your credit card or make a purchase that you may want but know you can live without.

With bad debt in mind now, it’s easy to get started.

1. Focus on paying down debt with the highest interest rate first. Shop your debt around with creditors for the best rate and consider consolidating debt into a lower rate option.
2. Use cash for everyday purchases and be disciplined when using credits cards to avoid carrying a balance from month to month.
3. Review your reoccurring bills for cut-back opportunities
4. Continue saving for retirement and building an emergency savings fund as you pay down your debt.

It’s not uncommon to have a less-than-perfect financial situation, but you have the power to take control and point it in the right direction. Learn more by watching the Voya Learn video Prioritizing debt at voya.com/page/on-demand/spending-and-savings-series-prioritizing-debt.

Do you have a plan in place for your loved ones?

Legacy planning is the process of arranging and transferring your assets in the event of your incapacitation or death. Your legacy is more than your assets, though. Establishing an estate plan is an extremely important step in helping to take care of your loved ones when you are no longer here. Think of your estate plan as a road map for them during a very emotional time, so that everyone understands your wishes if something were to happen to you.

So what do you need to include in an estate plan?

• A will is a legal document that directs what happens to your property, who will manage your estate, and who will serve as a guardian for minor children (if needed).
• A durable power of attorney allows you to appoint someone to act on your behalf in the event you are unable to make important legal, financial, or healthcare decisions on your own during your lifetime.
• A health care proxy is someone you designate to function as your agent and make health care decisions for you if you are unable to do so.

A trust is a separate document that can play a key role in helping to fulfill your family’s financial goals. There are specific advantages associated with a trust, including:

• Continuity of asset management, privacy, and tax savings.
• Management of your assets during your lifetime, including any period of disability.
• Avoiding the court-supervised probate process at the time of your death.

There are various kinds of wills and trusts. Each kind serves a different purpose. There are also state laws and other factors you may want to consider when creating and updating your estate plan. An estate planning attorney can discuss these nuances and options with you. Do something good for those you care about and take the next step to create a legacy for them today.

THE DEFERRED WORD   |  Second 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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