A SMART SOLUTION TO THE “AM I SAVING ENOUGH ... - Prudential

A SMART SOLUTION TO THE
“AM I SAVING ENOUGH” CHALLENGE
The Prudential SmartSolution IRA
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A smart way to invest today
A Prudential SmartSolution IRA is a flexible
addition to your overall retirement income strategy.
With the SmartSolution IRA you get:
Tax-deferred investing
Rolling retirement money into a SmartSolution IRA allows you
to continue to take advantage of tax-deferred investing until it’s
time to start making withdrawals.
A wide variety of investments to choose from
• Investment choices from an expansive list of
carefully selected retail mutual funds
• Principal protection and guaranteed rate of return with
PruSecure (where available) 1
• Help creating Guaranteed income for life (where available) 1,2
Tools that make it easier to stay on track
• Easy investment selection and automatic rebalancing with
GoalMaker ® , an optional asset allocation program available
at no additional cost
• Familiar and easy to use website and simplified
quarterly statements
• Flexible enrollment options either online or by paper form
• Regular contributions can be automatically debited from
your bank account
• Ongoing education and updates on important retirement
planning issues, via webinars and podcasts
One low fee
All services are provided for one fee. There is an annual asset-based
custodial fee assessed quarterly. There are no transaction costs.
Personal help every step of the way
Prudential Retirement Counselors will answer your questions and
review your progress to help keep you on track to meet your goals.
1
Guarantees are based on the claims-paying ability of the insurance company and are subject to certain limitations, terms, and conditions.
2
Restrictions may apply. Please see the product prospectus for more information. Terms and availability may vary by state.
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You can start the journey to a more secure retirement in three smart steps:
STEP 1:
Choose an IRA
STEP 2:
Decide how to invest
STEP 3:
Build your portfolio
STEP 1: Choose an IRA
Individual Retirement Accounts (IRAs) are retirement
accounts that you can set up on your own, even
if you participate in other employer-sponsored
retirement plans. There are two basic types of
IRAs: Traditional or Roth.
Both allow you to rollover your account from previous
employer-sponsored plans and make contributions to
your account at any time during the year up to the
allowable limit. (Income limitations apply.)
REMEMBER...
Both Traditional and Roth IRAs allow your money to
potentially grow tax-deferred in your account.
Contributions to either a Traditional or Roth IRA have
potential tax advantages. That is, you don’t pay annual
income taxes on the earnings while your money
is in the account.
Traditional:
Contributions to a Traditional IRA may also be tax
deductible. That is, you may be able to subtract
your annual IRA contribution from your taxable income,
thereby lowering your current year’s taxes. (Annual
income limitations may apply.)
Roth:
Contributions to a Roth IRA are not tax deductible.
However, withdrawals from your Roth IRA—both the
contributions and any earnings—may be income tax free. 1
The key difference between these two investment options:
an income tax advantage “up front,” with your contribution,
or later, when it’s time to withdraw your money.
1
In order for distributions to be made from a Roth IRA free of penalties and federal income taxes, your Roth IRA must have been established at least five
tax years before the withdrawal (period begins with the tax year for which your first contribution is made) and your distribution must be: a) made on or
after the date you attain age 59½; b) made to your beneficiary or your estate after your death; c) attributable to your being disabled; or d) taken because
you are a qualified first-time home-buyer (lifetime limit of $10,000).
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STEP 2: Decide how to invest
Regardless of which type of Prudential SmartSolution IRA you choose, it’s important to build a
portfolio that is tailored to your specific retirement goal.
Because the Prudential SmartSolution IRA includes a broad mix of investment options to choose from, you have the
flexibility to customize a portfolio that complements both how comfortable you are with market fluctuations and your
investment time frame.
If you are not comfortable building your own investment portfolio, you can take advantage of the Prudential
SmartSolution IRA’s unique GoalMaker ® feature, an asset allocation program that’s available at no additional cost.
GoalMaker matches your investor style and years to retirement to one of 12 investment model portfolios that best suit your
retirement goals. 1 GoalMaker also helps you stay on track through automatic rebalancing, which ensures the assets
in your portfolio remain allocated over time, in line with your original investment objectives.
1
All investing involves various risks, such as fixed income (interest rate), default, small cap, international and sector—
including the possible loss of principal. Keep in mind that application of asset allocation and diversification concepts
does not ensure a profit or protect against loss. It is possible to lose money by investing in securities.
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STEP 3: Build your portfolio
GoalMaker is just one of several investment
options and features that the Prudential
SmartSolution IRA offers to help you shape a
portfolio specific to your retirement income needs.
Additional investment options include:
PruSecure—guaranteed rate of return
This stable value investment offers a long-term, guaranteed
rate of return. Its yields are published in advance, and its
guarantees are backed by the claims-paying ability of
The Prudential Insurance Company of America. 1
Prudential IncomeFlex—guaranteed lifetime income
Prudential IncomeFlex ® , a feature of the Prudential
Retirement Security Annuity, can help provide lifetime
retirement income, regardless of future market
performance. 2
Target Portfolios—managed for increased stability
The Target Portfolio Fund family offers an array of
mutual funds designed to help address short-term and
long-term investment needs. Some of the portfolios use
the complementary styles of more than one manager.
Prudential Investments—depth of choice
The Prudential Investments’ mutual fund family offers
funds across a range of asset classes and sectors, including
equity, fixed income, real estate and special securities.
1
Only available through the Prudential SmartSolution IRA.
2
Guarantees are based on the claims-paying ability of the insurance company and are subject to certain limitations, terms and conditions. Withdrawals or
transfers proportionately reduce guaranteed values prior to locking in. After Lock-in withdrawals in excess of the Lifetime Annual Withdrawal Amount will
reduce future guaranteed withdrawals proportionately.
The Prudential SmartSolution IRA product invests in Prudential managed funds. Prudential Investments and Target are Prudential subsidiaries and Prudential
earns fees for managing these accounts. These fees are described in the prospectus for each fund.
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Know your options
People sometimes leave their jobs. If this
should happen to you, consider how you’d like
to handle your assets in your previous employer’s
retirement program. A poor decision at a time
of change can undo years of solid retirement
planning. Your options may include:
Leaving your account in the plan*
• Assets remain tax-deferred and targeted to retirement
• Investment choices limited to plan options
• Costs may be lower than other choices
• Investment choices are selected by a party legally
obligated to act in your best interest
• Service available from the Prudential Participant Service Center
Rolling over to your new employer’s retirement plan
• Assets remain tax-deferred to retirement
• Investment choice limited to plan options
• Investment choices are selected by a party legally
obligated to act in your best interest
Cashing out
Taxes and penalties could reduce your payout by up to 50%
(generally not recommended).
*
Not all accounts can remain in the plan and there can be a cost to do so.
Rolling your savings to an IRA
• Guidance from an experienced Prudential Retirement Counselors
• Assets remain tax-deferred
• Investment choice may be broader than your current plan
• Flexibility and control
• Costs may be higher than remaining in the plan
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COMPLETE YOUR RETIREMENT INCOME STRATEGY
With the Prudential SmartSolution IRA
We’re here to help
You have an array of resources at your fingertips to help you every step of the way:
with its broad choice of investment options, flexibility, and tax-advantaged features, the Prudential
SmartSolution IRA can be a great complement to your retirement planning strategy. But our help
doesn’t stop there. We also offer planning and educational resources:
Go online:
www.prudential.com/prep
The Prudential Retirement Education & Planning
website (www.prudential.com/prep) offers
educational articles, webinars, tutorials, calculators
and more, all available at your convenience, to
help you make informed decisions.
By phone:
1-877-778-2100
Prudential Retirement Counselors can help
you refine your retirement income strategy over
time as your needs change.
Retirement Counselors 1 are available toll-free,
Monday through Friday, from 8 a.m. to 6 p.m., ET.
Prudential has been keeping its promises to individuals for more than 135 years, with a focus on sound money
management and superior financial strength.
Prudential Financial companies include The Prudential Insurance Company of America (PICA) and Prudential Retirement
Insurance and Annuity Company (PRIAC), a wholly owned subsidiary of PICA.
1
Retirement Counselors are registered representatives of Prudential Investment Management Services LLC, who will receive compensation based on your
decision to either keep your funds in your employer-sponsored retirement plan or roll over to a Prudential IRA. These representatives receive additional
compensation based on whether and how much you roll over to an IRA, and their compensation recognizes the additional services involved in the rollover
process. Such compensation does not differ based on which Prudential IRA you choose or how your money is invested.
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280 Trumbull Street
Hartford, CT 06103
www.prudential.com/prs
1-877-778-2100
Not FDIC Insured Are Not Bank or Credit Union Guaranteed May Lose Value
Investors should carefully consider a fund’s investment objectives, risks, charges and expenses before investing or transferring out of
your current retirement plan. For more complete information, please call 1-877-778-2100 for a free prospectus that contains this and
other information about our funds. For variable insurance products, please read and consider carefully both the contract prospectus and
underlying-fund prospectus before investing. It is possible to lose money investing in securities.
Shares of the funds are offered by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, 14th Floor, Newark, NJ 07102-4077. Retirement Counselors are
registered representatives of PIMS.
The sale or liquidation of any stock, bond, IRA, certificate of deposit, mutual fund, annuity, or other asset to fund the purchase of this product may have tax consequences, early
withdrawal penalties, or other costs or penalties as a result of the sale or liquidation. You or your agent may wish to consult independent or legal or financial advice before selling
or liquidating any assets and prior to the purchase of any life or annuity products being solicited, offered for sale, or sold.
The Prudential Retirement Security Annuity III and IV are variable annuities issued by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT and distributed
by Prudential Investment Management Services LLC, Newark, NJ (MemberSIPC). Both are Prudential Financial companies and each is solely responsible for its financial condition
and contractual obligations. Prudential IncomeFlex Target Portfolios are variable investment options offered under the annuity. Eligible investors may purchase the Annuity through
a Prudential SmartSolution IRA. Annuity contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force. Contract forms # ALC-408-TGWB-
2011-ROTH, ALC-408-TGWB-2011-NR, ALC-408-TGWB-II-2011-ROTH, ALC-408-TGWB-II-2011-NR or state variation. Annuities: Not Insured by FDIC or any Federal Government
Agency; May Lose Value; No Bank Guarantee. Variable annuities are suitable for long-term investing, particularly retirement savings.
Investors should consider the contract and the underlying portfolio’s investment objectives, risks, charges and expenses carefully before investing. This and other important
information is contained in the prospectuses, which can be obtained by calling your Financial Professional or logging onto the Prudential Online Retirement Center. You
should read the prospectuses carefully before investing.
Prudential Retirement Security Annuity I and II (The Annuity) is a variable annuity issued by Prudential Retirement Insurance and Annuity Company (“PRIAC”), Hartford, CT
and distributed by Prudential Investment Management Services LLC, both are Prudential Financial companies. You must be at least 50 years of age to participate in Prudential
IncomeFlex Select. Eligible investors may purchase the Annuity through a Prudential SmartSolution IRA. The Annuity or certain of its investment options or features may not be
available in all states. Variable annuities are suitable for longer term investing and contain fees, exclusions, limitations, reductions of benefits and terms for keeping them in
force. Your licensed financial professional can provide you with costs and complete details. Contract forms #ALC-408-IFGW-2006, ALC-408-IFGW-II-2007 or state variation thereof.
Guaranteed growth of the Income Base ends at age 70 or when guaranteed withdrawals begin, whichever is earlier. Withdrawals in excess of the guaranteed lifetime income
amount will reduce future guaranteed withdrawals proportionately.
The PruSecure Account is a group annuity product issued by The Prudential Insurance Company of America (PICA), Newark, NJ 07102. Amounts contributed to the contract are
deposited in PICA’s general account. Payment obligations and the fulfillment of any guarantees specified in the group annuity contract are insurance claims supported by the
full faith and credit of PICA. PICA periodically resets the interest rate credited on contract balances, subject to a minimum rate specified in the group annuity contract. Past
interest rates are not indicative of future rates. This product is neither a mutual fund nor a bank product. The obligations of PICA are not insured by the FDIC or any other federal
governmental agency. Prudential Retirement is compensated in connection with this product when general account investment returns exceed the interest credited on contract
balances. Other than such compensation, there are no additional charges imposed that reduce the interest rate credited.
The fees associated with account balances remaining in a plan will be different from, and are likely to be less than, the fees associated with a rollover IRA. You should review your
plan’s provisions to determine whether you are permitted to keep your account balance in the plan sponsored by your former employer or discuss rollover provisions in your new
employer’s plan. You may contact Prudential Retirement at 1-877-PRU-2100 to obtain a comparison of fees between your former employer’s plan and an IRA.
The Prudential SmartSolution IRA is not affiliated with an employer-sponsored plan or plan sponsor, and a rollover to an IRA means you are no longer part of an employer-sponsored
plan. Once assets are rolled over to an IRA, they normally cannot be rolled back to a former employer’s plan.
The Prudential SmartSolution IRA invests in Prudential managed funds. Target and Prudential Investments (including Prudential Jennison) are Prudential subsidiaries and
Prudential earns fees for managing these accounts. These fees are described in the prospectus for each fund.
GoalMaker’s model allocations are based on generally accepted financial theories that take into account the historic returns of different asset classes. But, of course, past
performance of any investment does not guarantee future results. Prudential Financial encourages participants to consider their other assets, income, and investments when
enrolling in the GoalMaker program. We also recommend participants periodically reassess their GoalMaker investments to make sure their model portfolio continues to correspond
to their changing attitudes and retirement time horizon.
Prudential, the Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
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