Janus Time Segmentation Framework: A Retirement


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Janus Time Segmentation Framework: A Retirement Cash Flow Strategy Think in Waves The Janus 4-wave framework is a fresh way of thinking designed to help you distribute retirement investments over your lifetime. Each wave is meant to fund a period of time within retirement and should be invested based on that time horizon and your risk tolerance. Assets that are to be used earlier can be invested more conservatively and assets for later in retirement can be invested more aggressively. It is important to be aware that you may need to adjust your spending habits based on the performance of the other waves over time.

WAVE 1 (next 5 years) is for your short-term financial needs and designed to be your cash management segment

The Benefits: • A fresh way of thinking about making your retirement money last.

from which all distributions are made (ex: money market funds, pension and cash equivalents). As you re-allocate every five years, you will replenish Wave 1 with assets from your other waves, eventually depleting the other waves as you are in retirement longer.

• Designed to work with your assets and investments.

WAVE 2 (years 6-10) is designed to be filled with assets for retirement years 6-10 and typically invested in

• Easy to understand and easy to implement.

conservative investments. (ex: bond funds or fixed income products)

WAVE 3 (years 11-20) is designed to be filled with assets for retirement years 11-20 and typically invested in moderate investments. (ex: blended funds or large cap and mid cap equities)

4

WAVE 4 (years 21-30+) is designed to be filled with assets for retirement years 21-30 and generally invested in the most aggressive investments. (ex: small cap or foreign equities and growth-orientated investments)

Put the plan into action! The example worksheet on the next page will help you get started. The Janus Time Segmentation Framework (the “framework”) is a retirement income distribution tool that is provided as a service and is intended for educational purposes only. The framework is only one component of a complete financial plan. The results of the framework are based on information that you provide including the value of your assets, your asset classifications, and your spending needs. Therefore the results shown in the framework are dependent on the values entered. Since asset values change over time, your results may change if you use the framework more than once. It is up to you or your advisor to implement and monitor the retirement income distribution plan if you so choose. For a complete retirement income distribution plan, you should work with your tax or financial advisor. Janus does not verify or review your financial or tax situation in any way nor is Janus responsible for the completeness, accuracy, or appropriateness of the information provided in the framework. Page 1 of 4

Janus Time Segmentation Framework: A Retirement Cash Flow Strategy Worksheet Example Below is an example of a completed Retirement Cash Flow Strategy Worksheet for your reference. Notice in the example how within each wave, financial needs are listed first, investments are listed second.

4 FIRST 5 YEARS OF RETIREMENT

Cash Equivalents

YEARS 6-10 OF RETIREMENT

Conservative Investments

Financial Needs for the First 5 years of Retirement

Financial Needs 6-10 Years into Retirement

• Living

• Living

Expenses-45k

• Medical

Expenses-35k

Expenses-45k

• Medical

Expenses-40k

YEARS 11-20 OF RETIREMENT

YEARS 21-30+ OF RETIREMENT

Moderate Risk Investments

Growth-Oriented Investments

Financial Needs 11-20 Years into Retirement

Financial Needs 21-30+ Years into Retirement

• Living

Expenses- 100k

• Medical

Expenses- 75k 60k

• Living

Expenses- 35k

• Medical

Expenses- 60k

• Other-

30k

• Other-20k

• Other-30k

• Other-

Your Portfolio’s Cash Equivalents

Your Portfolio’s Conservative Investments

Your Portfolio’s Moderate Risk Investments

Your Portfolio’s Growth-Oriented Investments

• Cash- 60k

• Fixed Income- 75k

• Blended

• Aggressive

• Pension- 40k

• Bond Fund- 25k

• Moderate

• Annuity- 15k





Total $ 100k

Total $ 115k

Total $ 235k

Total $ 115k

Total $ 100k

Fund - 135K Growth- 100k

Total$ 125k

Growth- 150k



Total $ 235k

Total$ 150k

Complete the next page for your personalized Retirement Cash Flow Strategy and see how Janus Time Segmentation can help you plan your retirement distributions. Investing involves market risk; principal loss is possible. Equity and fixed income securities are subject to various risks including, but not limited to, market risk, credit risk, and interest rate risk. Page 2 of 4

Janus Time Segmentation Framework: A Retirement Cash Flow Strategy Worksheet Complete the worksheet below to see how the Janus Time Segmentation Framework applies to your retirement distribution plan.

4 FIRST 5 YEARS OF RETIREMENT

Cash Equivalents

YEARS 6-10 OF RETIREMENT

Conservative Investments

YEARS 11-20 OF RETIREMENT

YEARS 21-30+ OF RETIREMENT

Moderate Risk Investments

Growth-Oriented Investments

Financial Needs for the First 5 years of Retirement

Financial Needs 6-10 Years into Retirement

Financial Needs 11-20 Years into Retirement

Financial Needs 21-30+ Years into Retirement

























Total $

Total $

Total $

Total$

Your Portfolio’s Cash Equivalents

Your Portfolio’s Conservative Investments

Your Portfolio’s Moderate Risk Investments

Your Portfolio’s Growth-Oriented Investments

























Total $

Total $

Total $

Total$

Continue to the next page to see how Janus Time Segmentation might look over time. Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus at 800.525.3713 or download the file from janus.com/reports. Read it carefully before you invest or send money. Page 3 of 4

Time Segmentation Framework: An Example Plan in Action Over time, closely manage the framework and reallocate assets as needed by harvesting investment returns from one wave to the next—and minimizing risk as the years progress.

4 Moderate Risk Investments

Cash Equivalents

Conservative Investments

FIRST 5 YEARS OF RETIREMENT

YEARS 6-10 OF RETIREMENT

YEARS 11-20 OF RETIREMENT

Growth Oriented Investments

YEARS 21-30+ OF RETIREMENT

LOW

s

s

The bar’s height corresponds to the sum of each wave’s investments.

Risk Return Potential

HIGH

We offer a variety of focused investment options to help meet your goals. To learn more about our funds please visit janus.com/allfunds or call 800.525.3713 to speak to a Janus Representative. Janus Distributors LLC C-0913-43522 10-30-15

266-15-26076 09-13

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