A message from ASRS Executive Director Paul Matson
Dear Supplemental Saving Plan (SSP) Participants and Prospective Participants:
Welcome to this information source for the tax-advantaged Supplemental Saving Plan offered by the Arizona State Retirement System (ASRS) and managed by our partner - Nationwide Retirement Solutions (Nationwide).
The SSP and its various investment offerings are overseen by the ASRS and administered by Nationwide.
The ASRS has designed the SSP to have the following four main attributes for our participants:
- Professional Oversight
- Effective Investment Design
- Excellent Customer Service (Walk-in offices available!)
- Low Cost
In developing the SSP investment offerings, the ASRS recognized that some participants may want significant involvement in managing their investment portfolios, others may desire minimal involvement in managing their investment portfolios, and some may want to be somewhere in between.
As a result, we have selected a series of investment offerings that allow you to utilize a variety of investment approaches - or a combination of approaches. The offerings below are titled to help indicate the level of involvement required by you, should you choose that investment offering.
On behalf of both the ASRS and our partner Nationwide, we hope you find this summary helpful.
Best wishes for a rewarding career and a very happy retirement!
Sincerely,
Paul Matson
Executive Director
Arizona State Retirement System
Investment offerings
This is the default investment option in the SSP if you do not actively select another option, meaning that you will be automatically enrolled in the Target Date Fund closest to your assumed retirement year (age 65). You may choose a different Target Date Fund if you think you may retire earlier or later than the assumed date. With this approach, you would not typically conduct your own specific investment analysis, but rather make an investment selection of a pre-defined, pre-diversified portfolio based on the year you plan to retire. This approach is typically used by those who prefer less active involvement in managing their investments. Target Date Funds are monitored by the ASRS and Nationwide. This approach requires little involvement by you and is commonly used.
With this approach, you make your own investment selections from a broad set of investment offerings – typically mutual funds. You would typically build a diversified portfolio by selecting a series of investments from a mix of categories. The following categories (often called asset classes) of investment offerings are typically available: (Within each category, there are between one and several specific choices.)
- Short Term Investments
- Bonds
- Large Size US Companies
- Medium Size US Companies
- Small Size US Companies
- International Companies
- Real Estate
You choose from a preselected list of investments monitored by the ASRS and Nationwide.
This approach requires moderate involvement by you and is commonly used.
With this approach, you or your independent financial advisor conduct your own specific investment analysis and make your own investment selections from an array of choices available through a brokerage account referred to as a Personal Choice Retirement Account (PCRA).
You choose from a wide array of investments not monitored by the ASRS or Nationwide.
This approach requires significant involvement by you or an independent financial advisor, and is not commonly used.
With this approach, you would not commonly conduct a lot of your own specific investment analysis but would rather make a single investment selection into the ProAccount, a Nationwide product, which will develop a diversified portfolio for you based on your answers to a series of questions designed to identify your investment style and risk profile.
This approach is typically used by people who want a pre-defined and pre-diversified portfolio based upon more personal characteristics and want less involvement in managing their investments. Additional fees apply.
This approach requires some initial engagement by you to complete questionnaires, but little ongoing involvement by you.
Here are some quick ways to get started with tax-advantaged saving
3300 N. Central Avenue
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Target Date Funds invest in a wide variety of underlying funds to help reduce investment risk. So, in addition to the expenses of the Target Date Funds, you pay a proportionate share of the expenses of the underlying funds. These funds use a strategy that reallocates equity exposure to a higher percentage of fixed investments over time. Target Maturity Funds are designed for people who plan to withdrawal funds during or near a specific year. Like other funds, Target Date Funds are subject to market risk and loss. Loss of principal can occur at any time, including before, at or after the target date. There is no guarantee that target date funds will provide enough income for retirement.
Retirement Specialists are registered representatives of Nationwide Investment Services Corporation, Member FINRA.
Please visit www.nationwide.com/proaccount to review our disclosure documents summarizing the investment services provided by Nationwide Investment Advisors, LLC.
There is an annual fee for Nationwide ProAccount. The fee is listed in the Participant Agreement and is calculated daily, based on the market value of your assets, and deducted from your account at the end of each quarter. A 90-day trial period allows you to enroll in the service with no up front fee. Your account is charged only if you continue the service beyond the trial period.
Nationwide ProAccount neither guarantees a profit nor eliminates risk.
Nationwide Investment Advisors, LLC (NIA) provides investment advice to account holders enrolled in Nationwide ProAccount. NIA is an SEC-registered investment adviser and a Nationwide affiliate.
NIA has retained Wilshire® as an Independent Financial Expert for Nationwide ProAccount. Wilshire provides investment allocation portfolios based on participant ages and their personal tolerance for investment risk.
Retirement products are offered by Nationwide Trust Company, FSB or Nationwide Life Insurance Company.
Wilshire is a registered service mark of Wilshire Associates, which is not an affiliate of Nationwide or NIA.
Nationwide ProAccount is a service mark of Nationwide Mutual Insurance Company. © 2024 Nationwide.