Transamerica IRA. make the most of it. Saving and investing made simple with the

Transcription

1 Saving and investing made simple with the Transamerica IRA It s your hard-earned money. We re here to help you make the most of it. If you re looking for simplicity, consolidate all of your 40(k) accounts into a single IRA. ~ Kiplinger When considering rolling over assets from an employer plan to an IRA, factors that should be considered and compared between the employer plan and the IRA include fees and expenses, services offered, investment options, when penalty-free withdrawals are available, treatment of employer stock, when required minimum distributions may be required and protection of assets from creditors and legal judgments.

2 SUMMARY INSERT The Transamerica IRA at a glance Gain the confidence you deserve. It s that simple. What you could gain from an IRA Automated Easily Managed Tax-Advantaged Consolidated SAVINGS More Investment OPTIONS CONTROL FLEXIBILITY See the IRA comparison chart on the next page The Power of Compounding Annual contribution limit for 05 $5,500 # of years 0 Average interest rate 7% TOTAL $4,58 Note: this is a hypothetical example and does not represent the return on any particular investment. What you could gain from a Transamerica IRA No No administrative fees with a minimum balance, no transaction fees, sales loads or commissions Simple Investment Strategies Time-Based Target Date Funds Personalized guidance on your terms Financial simplicity 4/7 online account access A company you can count on Risk-Based Asset Allocation Funds Self-Selected Other Mutual Funds Open a Transamerica IRA in easy steps Call a Transamerica Retirement Counselor at Pick your investments Transfer your money If you re 50+, your limit increases to $6,500, increasing your total to $68,47 Provided you maintain an account balance of $5,000 there are no annual administrative fees Transamerica assesses an administrative fee of $8.75 quarterly on low-balance accounts (less than $5,000). The mutual funds are no-load; however, there are fund management expenses. The prospectus contains additional information about the funds, including investment objectives, risks, charges, and other expenses. The prospectus should be read carefully before investing. Target date funds are subject to the same risks as the underlying assets in which they invest. Each fund s asset allocation becomes more conservative over time: The percentage of assets allocated to stocks will decrease, while the percentage allocated to bonds will increase, as you approach the target date. The higher the fund s allocation is to stocks, the greater the risk. The target year represents approximately when the fund s managers assume the typical investor plans to start withdrawing their money. The fund s principal value is never guaranteed, including at and after the target. You can lose money by investing in a target date fund, including near and following retirement. There is no guarantee that the fund will provide adequate retirement income. The information provided is general in nature and may not apply in all situations. IRA products and related services and investments

3 SUMMARY INSERT Which IRA is right for you? Picking the right IRA for you depends on a few factors, such as your investment goals, age, earned income and tax bracket. The chart below illustrates the two main types of tax-advantaged IRAs Traditional IRA > > You can contribute up to age 70½ Age Restrictions > > None Roth IRA > > You must earn income to contribute but there are no income limitations > > Contributions may be tax-deductible > > 05 limit: age < 50: $5,500; age > 50: $6,500 Contributions > > Your earned income cannot exceed a certain amount to be able to contribute (updated yearly) > > Contributions are not tax-deductible > > 05 limit: age < 50: $5,500; age > 50: $6,500 > > Grow tax-deferred Earnings > > Grow tax-free > > Penalty-free but taxed as current income Withdrawals (After Age 59½) > > Tax-and penalty-free as long as the account has been open 5 years > > Subject to a 0% penalty in addition to any ordinary income tax that may be due (exceptions may apply) Early Withdrawals (Before Age 59½) > > Subject to a 0% penalty in addition to any ordinary income tax that may be due (exceptions may apply) > > You must begin taking distributions at age 70½ Required Distributions > > Not required > > You can use money you ve earned > > You can roll over a traditional 40(k) or 40(b) tax-free > > You can transfer funds from a traditional IRA (but only once per year) Funding Options > > You can use money you ve earned > > You can roll over a Roth 40(k) or 40(b) tax-free > > You can roll over a traditional 40(k) or 40(b) but you ll have to pay taxes > > You can convert a Traditional IRA Ready to open an IRA? Have more questions? No problem! Our team of Retirement Counselors is available at any point to discuss your investment options, help you with the paperwork or answer any questions you may have about your journey ahead, all at no cost to you. Call today: are available from unaffiliated financial institutions as well as from Transamerica. Rollovers and transfers may be subject to differences in features and expenses. Indirect transfers may be subject to taxation and penalties. Because each person s circumstance is unique, you should consult a financial advisor to address your particular situation. Retirement counselors are registered representatives of Transamerica Investors Securities Corporation (TISC), 440 Mamaroneck Avenue, Harrison, NY 058. Member FINRA. TISC and Transamerica are affiliated companies. 450 (0/5) 05 Transamerica Retirement Solutions Corporation

4 Simplify your financial life with an IRA IRAs can make saving and investing for the road ahead easier. Helping you achieve the financial future you deserve. Whether you re changing jobs, retiring, inheriting money or looking for a simpler way to save for the long-term, an Individual Retirement Account (IRA) provides you a tax-advantaged way to make the most of your money. What you could gain from an IRA: Consolidated savings Generate savings from tax-deferred or tax-free earnings (depending on which IRA you choose) that can compound yearly to help your money grow faster. Improved efficiency Avoid overlapping investment strategies and eliminate the added time and expense of managing multiple accounts enabling more streamlined account management for you and your beneficiaries. More control and flexibility Choose from a wide array of investment options to tailor your strategy to meet your retirement needs. No one can alter your strategy without your consent. Consider this: If you contribute the annual limit of $5,500 to your IRA yearly for the next 0 years, with a 7% average annual return, you could end up with $4,58 in your retirement savings. If you re 50 or older, your limit increases to $6,500, increasing your total to $68,47 (before tax).* * Rates of return are hypothetical and do not reflect the performance of any particular investments. Past performance is not a guarantee of future results. Balances in a traditional IRA are subject to federal income tax upon withdrawal.

5 Your 40(k) options when you change jobs or retire: Advantages Drawbacks Rollover your old 40(k) into an IRA > > Broad set of investment options > > Tax-deferred investment gains > > Typically more control and flexibility over your investments > > Gain independence from your former employer > > Able to consolidate multiple retirement accounts > > You cannot buy an individual stock or bond in the Transamerica IRA > > Funds may not be protected from creditors or legal judgments > > Loans are not allowed Leave your assets in your former employer s plan > > Tax-deferred investment gains > > Penalty-free withdrawals may be allowed provided you separate from service after age 55 > > May have greater protection from creditors in bankruptcy > > May be able to delay required minimum distribution past 70½ > > Limited to the plan s investment options > > May require a minimum account balance to remain in the plan > > May have less control and flexibility Roll your assets to your new employer s 40(k) plan > > Tax-deferred investment gains > > Loans may be allowed > > Penalty-free withdrawals may be allowed provided you separate from service after age 55 > > In general, similar benefits as option > > Your new employer may not provide this option > > Limited to the plan s investment options > > May have less control and flexibility > > Possible waiting period before transfer can take place 4 Cash out your retirement savings plan > > You will have cash readily available > > Reduces future savings > > Loss of future tax-advantaged growth and compounding > > 0% immediately withheld for income taxes > > 0% federal tax penalty if you cash out before age 59½

6 Delivering the confidence you deserve For over a century, Transamerica has been committed to helping you gain stability and confidence by building a solid financial foundation for now and the future. What you could gain from a Transamerica IRA: Cost-effective savings Your savings may grow faster when you re able to retain more of your hard-earned money, allowing more opportunity for compounding interest. Our IRA has: > No administrative fees with a minimum balance > No sales loads > No commissions > No transaction fees Financial simplicity > Access to a wide selection of investment options and leading fund managers > 4/7 online account access > Automate your IRA account for continuous contributions and savings > One account, one point of reference, one statement > Frequent financial checkups to help you stay on track Personalized guidance You have unlimited access to our team of Transamerica Retirement Counselors on your terms. Enjoy any of these services for no additional cost: > A one-time consultation > Occasional professional guidance > A dedicated Retirement Counselor working with you every step of the way 4 Invest easier Pick an investment strategy that fits your needs and objectives. You have access to: > Portfolios suited to fit your investing style > Customizable investments 5 A company you can count on Transamerica is one of the world s leading financial services companies. We provide solutions for insurance, investments and retirement for more than 9.5 million customers. 6 Hassle-free paperwork Work with a Retirement Counselor or fill out the paperwork on your own, either way it s a quick and easy process. You can get started faster with our safe and secure e-signature (click-to-sign) process. See more on page 6. 4

7 Pick an investment strategy that s right for you Whether you want a hands-off approach, a completely customized portfolio or something in the middle, a Transamerica IRA allows you to develop a personalized strategy, with the flexibility to change at no additional cost. We help you save and invest wisely so you can live the life you want. simple ways a Transamerica IRA can help you easily manage your savings Time-Based Investment Approach ClearTrack sm Target Date Series: > One portfolio based on the year you expect to retire, making it easier to maintain your investment balance throughout your journey. > Your funds are actively managed by the professionals at QS Investors, a Legg Mason company, who rebalance your portfolio to become more conservative over time as your target date approaches. Risk-Based Investment Approach Transamerica Asset Allocation Portfolios: > One portfolio based on your personal level of risk tolerance (i.e., conservative, moderate, aggressive, etc.). > Your funds are continually monitored by professional money managers who manage your investments to stay on track with the portfolio s risk level. Self-Selected Investment Approach Other Transamerica Mutual Funds: > You handpick your own investments, choose your investment mix, monitor the funds and make adjustments as needed. > You have access to industry leading sub-advisers in a single investment allocation. Need help deciding? Work with one of our licensed Retirement Counselors at any time to discuss your options and develop a personalized investment strategy for your unique plans and objectives. Speak with a Retirement Counselor now: Target date funds are subject to the same risks as the underlying assets in which they invest. Each fund s asset allocation becomes more conservative over time: The percentage of assets allocated to stocks will decrease, while the percentage allocated to bonds will increase, as you approach the target date. The higher the fund s allocation is to stocks, the greater the risk. The target year represents approximately when the fund s managers assume the typical investor plans to start withdrawing their money. The fund s principal value is never guaranteed, including at and after the target. You can lose money by investing in a target date fund, including near and following retirement. There is no guarantee that the fund will provide adequate retirement income. 5

8 Open a Transamerica IRA in easy steps STEP STEP STEP Call a Transamerica Retirement Counselor at Have all of your information ready pertaining to: > Any accounts you want to roll over > How you want to fund your new IRA You can directly contribute from your bank using a check or money order, or Set up automatic deposits from your bank > Your beneficiary(s) Pick your investments A Retirement Counselor will guide you through the entire process from A to Z. We ll help you: > Fill out all of the paperwork You ll receive an with a private passcode to our secure website, where you ll be able to electronically sign (click-to-sign) your documents > Create a personalized investing strategy > Set up automatic contributions to make it easier to build your savings Transfer your money When your account is funded, we ll immediately invest in the funds you ve chosen and you ll be all set to save and invest for your future. Take control of your financial future today Set yourself up for success by consolidating your savings into a convenient Transamerica IRA. You ll enjoy saving and investing simplicity, along with professional guidance at any time, for no additional cost. Your success is our No. priority, now and into the future. 6

9 Gain the confidence you deserve. It s that simple. Open your Transamerica IRA now: Speak with a Retirement Counselor at

10 Web Phone (toll free) Monday Friday, 9 a.m. 6:0 p.m. (EST) Mail Transamerica Retirement Solutions 408 St. Peter Street, Suite 0 St. Paul, MN 550 Provided you maintain an account balance of $5,000 there are no annual administrative fees Transamerica assesses an administrative fee of $8.75 quarterly on low-balance accounts (less than $5,000). The mutual funds are no-load; however, there are fund management expenses. The prospectus contains additional information about the funds, including investment objectives, risks, charges, and other expenses. The prospectus should be read carefully before investing. The Funds advisor, Transamerica Asset Management, Inc., has chosen QS Investors, LLC as its sub-adviser. QS Investors, LLC, a wholly owned affiliate of Legg Mason Inc., is a New York-based investment firm providing asset management and advisory services to a diverse array of institutional clients. QS Investors delivers disciplined and systematic solutions that address clients complex investment challenges. The team has developed approaches to integrating quantitative and behavioral investment insights and dynamically weighting opportunities in response to changing conditions in the economy and the market. QS Investors offers a broad spectrum of strategies which includes actively managed U.S. and global equities, liquid alternatives, and customized solutions. The prospectus and/or summary prospectus contains additional information about the funds including the investment objectives, risks, charges and other expenses. You should consider all such information carefully before investing. Contact for a free prospectus or summary prospectus, and read it carefully before making your investment choices. The tax and other rules governing an IRA may be different from those governing an employer s retirement plan. Read carefully the applicable IRA disclosure statement and other documentation for any IRA you are considering. Consult a tax advisor if you have any questions about how opening an IRA will affect your financial and tax situation. The representatives of Transamerica will, of course, be happy to answer any questions concerning the operation and financial aspects of a Transamerica IRA, but cannot give you legal, tax, or investment advice. Asset Allocation ( Risk-Based ) funds are subject to the risks of the underlying funds in which they invest. To the extent the fund invests more of its assets in stock investments, it will be subject to greater risk than a fund investing more of its assets in bond funds. Lower rated, high yield corporate debt securities represent a much greater risk of default and tend to be more volatile than higher rated or investment grade bonds. Foreign securities and markets pose special risks in addition to those customarily associated with domestic securities. These risks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investing in emerging markets may accentuate these risks. The Transamerica Funds are advised by Transamerica Asset Management Inc. and securities are offered through Transamerica Investors Securities Corporation (TISC), Member FINRA, 440 Mamaroneck Avenue, Harrison, NY 058 by agreement with the Funds underwriter. The role of the retirement planning consultant is to assist you with your savings and investment plan. There are no fees or commissions for meeting with your retirement planning consultant, who is a registered representative with TISC. References to Transamerica pertain either to an individual company collectively to these and other Transamerica companies. Transamerica companies identified here are affiliated. 450 (0/5) 05 Transamerica Retirement Solutions Corporation