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In this Issue
August 2008 E-zine for ERB Members

Tracking Down
Today’s Money
Chapter Two

A retirement planning publication of the U.S. Dept. of Labor, “Taking the Mystery Out of Retirement Planning” can help you shine a light on the mystery of where you will find the money to support yourself in retirement.

Many people don’t have a clear idea of how much money they actually have, so it’s hard to know how much they might be able to count on when they no longer work. Finding out what part of today’s money can go toward retirement simply means adding up the value of all your current assets.

In this case, “assets” are cash, investments, and anything of value you can exchange for cash, like your house, savings bonds, or even fine jewelry. This figure will be your first important clue.

Recording these amounts could be a pleasant surprise. You don’t want to count emergency money and savings for your children’s education, or a big trip –only money that you are not going to touch for at least 10 years.

More Than You Think

Tracing your money in retirements should be fairly easy. In fact, you can calculate your NMERB pension plan as well as your projected Social Security income on the NMERB web site at www.nmerb.org Also, if you didn’t roll over your retirement plan balance when you changed jobs into a new retirement plan account, or into an IRA, or if you didn’t take your account balance as cash, you may discover some forgotten retirement assets you have. This is a good time to think about keeping your money with fewer, rather than more, quality financial institutions so it is easier to manage.

Now, take a few minutes to complete Worksheet A, page 7, of the U.S. Dept. of Labor, “Taking the Mystery Out of Retirement Planning” guide found online here.

Quit Worrying, Start Planning

Remember you’re facing a retirement that’s probably going to be longer than your parents’ and will involve more uncertainties. This new kind of retirement probably means there are many American workers worrying about, instead of planning for the future.

You can choose to stop worrying and start figuring. Not only will you come up with facts to work with, the chances are good you might change the way you save. When filling out the worksheets online, remember to include your spouse’s assets if you’re married. And be prepared to redo this first one. A raise and changes in your investments for example, will affect the numbers.

For members without Internet access, you may talk with a benefits advisor at the U.S. Department of Labor Employment Benefits Security Administration at 1-866-444-3272. It’s a toll free call.

(This article includes excerpted material from “Taking the Mystery Out of Retirement Planning,” U.S. Department of Labor, Sept. 2006.)

 

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SPOTLIGHT: Meet ERB Staff

Dale Goar: He Keeps IRIS in Bloom

The Santa Fe NMERB office is a pleasant but ordinary stucco building, the kind you see everywhere in New Mexico. Pleasant, but scarcely a castle, yet one could still regard employee Dale Goar as a kind of wizard, one that can manage the complex technology that keeps our system-wide data management system, IRIS, humming along.

Dale Goar, Santa Fe office.

If you haven’t given much thought to IRIS (Integrated Retirement Information System) which NMERB launched in 2006, that’s a good thing, because it reflects how smoothly Dale does his job as systems administrator for NMERB.

Through IRIS, Dale provides a bounty of information for members. He is responsible for providing members with 1099s and member annual statements each year. This year, NMERB is adding a yearly retirement statement to all retirees. “With Phase 3, our IRIS web enablement, I will be responsible to see that the servers are up and running, and that both members and employers can access the NMERB web page,” Dale says.

Dale also fulfills data requests from legislative and other government agencies among other responsibilities. “IRIS allows us to do improved statistics reports, it allows us to do better reports for managers,” he says. The quality of data for these documents has really improved with IRIS, he adds.

Dale is responsible for some of the tremendous technological changes at NMERB over the past 15 years and remembers well the kind of early equipment organizations had available then for data processing.
“When I started here, NMERB had two IBM 486 PCs and everyone was connected to the AS400 server with dumb terminals. Within the first year, I was able to get us a tape drive to do full system backups. Then in 1995, we got three Gateway 2000 computers for the Accounting Department. I set up the first Windows networking system between the three Gateway computers.”

Other technology advances are forthcoming for NMERB, Dale says. “This fiscal year, we’re going to upgrade our imaging system to the Filenet P8,” an ultra-secure electronic management storage system.

As young as he is, Dale recalls his Western New Mexico University professors talking about the really old days, when data input required punch cards, and what happened when an accidental stumble sent an entire pack of them flying to the floor. Change is good.

He enjoys his job with NMERB and likes to think about managing a department here one day. He’s thinking about getting his master’s degree in either information management or an MA in the arts with a core concentration in MIS. Either way, he dreams of ventures outside of work too when the day comes.

“I’d like to move to a cattle ranch one day,” he confides. He enjoys Gene Autry movies, and books set in the 1700s and 1800s. Fishing for walleye on Conchas Lake is a favorite pastime and he likes to hunt elk too.

We can only guess if he’s a Wizard of Oz fan.


If You Are a Married Woman

In preparing for retirement, married women face the very real possibility of spending part of their retirement years without the support of a husband – most likely through widowhood. The loss of a spouse can sometimes mean the loss or reduction of benefits that can place women in financial jeopardy. For that reason, women will need to focus on their financial resources as a single person as well as half of a couple.

Consider what happens to your Social Security and to retirement benefits if your spouse dies or you divorce. Know what assets you can count on. Check Social Security benefit documents, retirement plan documents and wills. Remember that wills are important, but they may not provide the protection desired. Depending on the way assets are titled, or the terms of a will, the money women believe they can count on may not be passed to the surviving spouse.
(This article includes excerpted material from “Taking the Mystery Out of Retirement Planning,” U.S. Department of Labor, Sept. 2006.)

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New Mexico Educational Retirement Board (NMERB)
Managing the Retirement Assets of New Mexico's Educators
Santa Fe 505.827.8030
Albuquerque 505. 888.1560
Las Cruces 575.647.3313