Understanding Your MMBB Statement And Managing Your Account
By James R. Cook, CFP®
Your retirement plan account with MMBB is an important tool in helping you achieve long-term financial security. For many individuals, an employer-sponsored retirement plan will be the single greatest financial asset aside from equity in your home, and the primary source of income for retirement. As of the end of March 2017, 401(k) plans in the U.S., which are similar to MMBB’s 403(b) plans, held $5.0 trillion in assets . Because of the importance of your retirement plan in your financial life, it is critical that you be actively involved in reviewing and maintaining your account.
To help you be an active participant in your own retirement account with MMBB, this article will focus on three key skills:
- Accessing your account on line
- Understanding your quarterly statements
- Managing your investments
Accessing Your Account
When you enrolled in your retirement plan with MMBB you were sent information that included a Personal Identification Number (PIN) and instructions for accessing your account online. You will need that information and the User ID that you created the first time you accessed your account to be able to log in. If you do not have that information, see the side bar with instructions on how to access your account.
- To access the login page, go to MMBB’s homepage at www.mmbb.org, click on Log In and select Manage My Retirement Account.
- You will be taken to the account Log In page, managed by our recordkeeping partner, Conduent. Here you will enter your User ID and your PIN.
That’s it. You are now logged into your account. Here you will see the home screen. The next two topics highlight some things you can do on the website.
Understanding Your Quarterly Statement
Beginning with the third quarter of 2016, MMBB stopped mailing paper statements, except for the year-end statement, that you will still receive by mail in February. You may access your quarterly statements online. If you would like to continue to receive quarterly statements in the mail you may do so by updating your communication preferences in the Personal Information section online, or by calling 877.626.4032.
To access your statement online, follow these steps once you are logged into your account:
- Select Your Plan(s) from the links at the top of the page.
- In the menu at the left of the next page, under I Want To , select Online Statement.
- You will be presented with a list of your statements, the current one will be at the top of the list. Click the View button next to the statement you would like to load.
Your statement contains multiple pages, and provides details for all the activity on your account for the quarter, and year to date. In this article, we will focus on some of the more important features.
Page 1—The Summary
The first page provides an overview of your retirement account.
- Your Current Account Information details all the activity on your account for the current quarter and year-to-date. Note that it starts with the balance at the beginning of the period, then lists the various activities that affect your account. In this illustration, the changes listed are all additions to your account’s value. However, if you make a withdrawal, or have investments that decline in value, the numbers will be negative, showing deductions to your account value. The first section ends by showing your closing balance.
- Vested Balance: The Vested Balance is the value of the account that belongs to you if you should leave your employment. Some employers require you to work a predetermined number of years before contributions that they make to the Retirement Only Plan belong to you. The difference between the Closing Balance and the Vested Balance is the amount you would currently forfeit if you left your employment.
- Housing Allowance: For ordained clergy, MMBB can declare distributions and payments in retirement as housing allowance. This line reflects the portion of your account that is eligible to be declared as housing allowance.
- Your Current Asset Mix shows both by percentages, and in pie-chart form, the types of assets that make up your investments. It does not list specific MMBB funds, just broad categories. Note that this part of the report shows your actual investments at the end of the quarter, and does not reflect any changes that you have made during the quarter.
- Your Personal Rate(s) of Return for the quarter shows your actual returns for each of the types of accounts you may have, based on how you chose to be invested.
Page 2—The Details
The second page takes a more detailed look at your MMBB account, focusing on three different ways of viewing your plan details for the last quarter.
- Your Portfolio looks at the change in value of the individual investment funds that you have chosen for your various MMBB accounts. It details the number of shares, price per share and balance at the start of the quarter and the end of the quarter. Note that this view does not show contributions, loans or distributions in the details, just overall values. Pay particular attention to the three columns at the right. These columns show what percentage of each of your MMBB accounts you are allocating to each fund when your premiums are paid.
- Your Contribution Activity is similar to the information in the summary on page one, but now it shows the details for your plan for each of your individual accounts. It starts with the balance at the start of the quarter, then lists all of the types of activity that impact your account value over the quarter, concluding with an Ending Balance and Vested balance.
- Your Fund Activity is structured similarly to the previous section, but instead of listing the detail by the type of retirement plan, it shows the activity by investment fund. Again, the report starts with the balance at the start of the quarter and then shows activity that either adds to or subtracts from the value, concluding in an Ending Balance.
The remaining pages of your statement include announcements from MMBB and a history of the investment returns for each of the funds as of the end of the current quarter and a summary description of each of the funds. Remember, daily investment information on our funds is available online at www.mmbb.org.
Managing Your Account
Now that you know how to access your account and read the details of your statement, lets look at the two most common activities that people are interested in conducting on their account:
- Transfer Current Funds
- Changing Future Investment Elections
Transfer Current Funds
Transferring current funds, that is moving money from one investment fund to another, only changes the manner in which the funds that are currently in your account are invested. For example, you may have the Balanced Fund as your only investment and you now decide to move all of your current balance to the New Horizon Fund.
Here are the steps to Transfer Current Funds:
Once you are logged into your account online, select Your Plan(s) from the menu at the top of the page and then chose the retirement plan where you want to make changes.
- You will be working with the box to the left of the page that says I Want To. In the illustration at the right, you can see the two actions we will be focusing on circled in red.
- Select Transfer Current Funds.
- You will be presented with a screen that shows your current investment elections and a table of the fund choices.
- Start by selecting the investment fund in the Transfer From section you would like to move money from and the percentage you would like to move.
- As an example, let’s say that you currently have all your money in the U.S. Equity Index Fund, but you would like to move 30% to the U.S. Blended Equity Fund and 30% to the Balanced Fund. The total you want to move is 60%, so you would enter that amount in the Transfer From section.
- Next, in the Transfer To section, you enter the percent of the total transfer you want to place in each fund. It is important to note that the totals for this section need to equal 100%. In this example, you want to split the money you are moving equally between two funds, so you would enter 50% for each of the two target funds.
- Confirm that the Total Transferred line is 100%, and select Continue, to complete the transaction.
Change Future Investment Elections
This process is like the prior process. Begin on the main screen by selecting the plan you wish to work with, and then in the I Want To box, select Change Future Investment Elections.
- You will be presented with a table like the illustration at the right. Note that it will show your current investment elections. In this illustration you are allocating 100% of your contributions to the U.S. Equity Index Fund.
- Following the previous exercise, this illustration assumes that you want to change your contributions so that they are evenly split between the Balanced Fund and the U.S. Blended Equity Fund. Enter 50% next to each of those funds.
- Confirm that the Total line is equal to 100%, and select Continue to complete the transaction.
When you make either of these changes to your investment accounts, you will receive in the mail a confirmation statement. Note that that changes that you make to your investments take one full business day to complete. A good practice is to check your account online several days after you have made a change.
Managing your financial life includes staying informed about your savings and investing. Doing so provides an opportunity to ensure that your premiums have been paid, and that your investment strategy is supporting your goals. If you have questions or need advice along the way, MMBB is here to support you. Give us a call at 800.986.6222 and let us help you on your journey to retirement.