Professional Development May 19, 2014

1. Professional DevelopmentMay 19, 2014 ISIC Pupil Services

2. A Word From Out Sponsor… North American Insurance Company

3. California Teachers Retirement (CalSTRS)California Public Employees Retirement (CalPERS) Are you saving enough for ALL your tomorrows?

5. Reality Check! More than 50% of working adults over 50 believe they may have to delay retirement. 16% say they never expect to stop working.**

6. Factors That Will Impact Your Lifestyle In Retirement • Market risk • Rising taxes • Health issues • Your CalSTRS/CalPERS pension

7. How Do You Determine Your CalSTRS Pension? • Your age and years of service under CalSTRS • Age factor (from CalSTRS Table) • Final average compensation

8. Calculating Your Monthly Retirement Benefit Sample Calculation 1. Jane’s years of service 29 2. Her age factor at age 60 2% 3. Multiply her 29 (YOS) X 2% (Age factor) = Payout Factor (PF)58% Jane, Teacher, Age 31

9. Calculating Your Monthly Retirement Benefit, cont. Calculate Jane’s Monthly Payout: highest one year salary $60,000 X 58% (PF) = yearly payout $34,800 $34,800/12 = monthly payout$2,900 Is that adequate today? For illustrative purposes only. Source: CalSTRS Handbook $23,316/12 = monthly after tax $1,943 That’s a Big Income Gap…..

10. In Attempting to Fill the Income Gap Do You Take?

11. Why Do People Take Risk With Their Retirement?

12. “Potential” Higher Returns Upside Potential .25% to 1.6% Fixed Products Variable Products Safety of Principal Risk of Principal That’s Another Big Income Gap…..

13. TAXES** 100% Taxed at Access 100% Tax-Free Access Tax Free Tax Deferred $$$ Retirement Savings $$$ Retirement Savings 0 Taxes Paid Taxes Paid

14. TAX PLANNING STRATEGIES Are TAXES going to be LOWER or HIGHER when you retire?

15. Changes In Our Economy 2nd Worst Financial Crisis in History Stock Market Crash – 25% Taxes High for 50 Years If So, Does It Make Sense To Defer Your Taxes? Will History Repeat Itself?

16. HEALTH Unexpected Medical Expenses cause… 62% of all Bankruptcies. 49% of all Foreclosures. …and 75% of the above had health insurance

17. HEALTH • Research shows that at least 70 percent of people over 65 will need long term care services at some point in their lifetime1. • Every minute someone will die from a heart attack and every 40 seconds, someone suffers a stroke2 • The average annual nursing home cost in California is $84,000.3 • Will you have enough in reserve to bridge this huge… Medical Expense/Income Gap?... • 1National Center on Caregiving, 2012 • 2American Heart Association, American Stroke Association, Heart Disease and Stroke Statistics, 2008 update • 3Genworth’s 2013 Cost of Care Survey

18. How Do You Fill The Income Gaps? Our Focus Going Forward

19. Rule #1: Never Lose Money Rule #2: Never Forget Rule #1 ~Warren Buffett

20. There Are Strategies Today That Give You The Best Of Both Worlds….. Safety with Upside Potential Upside Potential .25% to 1.6% Fixed Products Variable Products Indexed Products Safety of Principal Risk of Principal

21. HOW MONEY WORKS Large Company Stocks Indexed Account EARNINGS & GROWTH $100,000 Invested 1997 $212,039 $212,039 $197,245 $210,000 $61,331 Difference! $200,000 $183,484 $190,000 $170,683 $170,683 $180,000 $158,775 $170,000 $154,762 $150,708 $151,836 $154,330 $150,708 $160,000 $143,563 $140,217 $139,739 $150,000 $133,547 $134,185 $133,065 $128,379 $130,430 $140,000 $124,230 $124,230 $120,396 $115,563 $117,453 $116,838 $130,000 $107,500 $109,673 $120,000 $103,485 $110,000 $93,403 8/97 8/98 8/99 8/00 8/01 8/02 8/03 8/04 8/05 8/06 8/07 8/08 8/09 8/10 8/11 8/12 $100,000 $90,000 Indexing COMBINES Safety and Potential

22. What Are Your Potential Options? • After-tax contributions • Tax-deferred growth • Non-taxable income • Roth IRA Indexed Annuity or Roth 403b • Tax-deductible contributions • Tax-deferred growth • Taxable income • 403b Indexed Annuity Both strategies can also provide a guaranteed stream of income for life Guaranteed Lifetime Income Rider 2nd Pension!

23. Time Magazine Suggests a New Option to Supplement Your Retirement IN Life Insurance Pension Plan Cash Value __________________________________________

24. One Solution for Multiple Risks Death Benefit Protection Accelerated Living Benefits Cash Value Accumulation = Indexed Universal Life… insurance you don’t have to die to use. Benefits may not be mutually exclusive. Using one benefit may reduce or eliminate another.

25. What's The Best Strategy For You? Annuities (Indexed 403(b)/TSA, ROTH IRA) Indexed Universal Life (Living Benefits, Tax Free Income for Life) Both Every Situation is Different*

26. Financial Solutions for Today’s School District Employees

27. Financial Solutions for Today’s School District Employees Financial Solutions for Today’s School District Employees

28. Administrative Updates

29. Reed Settlement Update • Schools That Tentatively Purchased to Date • Fremont HS • Jefferson HS • West Adams Preparatory HS • Roosevelt HS • Positions Available • Reed PSA Counselor – B-Basis *Deadline for all previously flown positions is 5:00 PM tomorrow, May 20, 2014!

30. Z – Time • Z – Time Worked up through 6/13/14 • Fax forms to Valerie at (213) 241-2031 • Z – Time Worked after 6/13/14 • Fax forms directly to Gloria at (213) 241-6858

31. Closing Out the School Year • As if you will not be returning to that site • Take all personal notes and belongings with you • Leave files for next year’s counselor • Optional: • Counselor to Counselor Case Transfer Forms and Files • Form is posted on the ISIC PSA Website • School mail to ISIC PSA (Beaudry, 11th Floor) for August Distribution • Distribute and Collect Matriculation Forms • Forms are posted on the ISIC PSA Website

32. SART Tally • We will pass the list around. • Please review it for your school(s) SART totals based on your Monthly Summary of Services. • The number of SART meetings you indicated on the SART Tally Sheet must correspond with the number of SART contracts on file for this school year for each school assignment. • If it is correct, please initial next to the school. • If it is incorrect, please make changes on the list. • Pass it on to the next counselor. • Thank you for your cooperation.

33. Due Dates • Friday, May 30, 2014 • Timesheets for May & June • Mileage Form for May (Complete Month) • Multi-Funded Time Reports for May & June • Wednesday, June 4, 2014 • Monthly Summary of Services for May • Last week of School • Sign-In Card on Last Day of Work at Each Location (please make sure it is a clear and legible copy with all signatures) • Fax or E-mail All Documents to Valerie • Fax # (213) 241-2031

34. April Awards 100% Attendance Submittal Best Student Attendance Monthly Perfect Attendance Perfect Attendance SARB Awards

35. 100% Attendance Submittal(April, 2014)

36. Best Student Attendance(through April 30, 2014)

37. Monthly Perfect Attendance(April, 2014) Great job!

38. Perfect Attendance Wall of Fame(through May 18, 2014)

39. Operation School Bell @ GLAYS Counselor Spotlight Cesar Martinez

40. Attendance Assembly

41. Bike Raffle Winner

42. Raffle Winner

43. Operation School Bell @ GLAYS Counselor Spotlight Norm Wallace

44. Sun Valley MS

45. Operation School Bell @ GLAYS Counselor Spotlight SARB Awards

46. Exceeding ExpectationsMost SARB Cases Presented Megan Brown - 4 Maribel Munguia Dugas - 4 Martha Lopez - 4 Grace Ortiz - 3 Veronica Villanueava - 3

47. Honorable MentionStudents with 75% Improved Attendance Post SARB Megan Brown Maureen Greeley Jay Kirby Armond Mc Daniels Grace Ortiz Deirdre Skelton Marcela Tarquino-Klossner Veronica Villanueva

48. “I’m IN” Attendance AwardsFebruary & March Please pick up your awards before you leave today.

49. Birthdays Kendis Wilbourne – May ? Micquelyn Jones – May 5th Maureen Greeley – May 14th Wanda SooHoo – June 14th Megan Brown – June 17th Jose Diaz – July 2nd

50. Happy Retirement! Anthony Therrattil Norm Wallace