An Educational Guide for Individuals What is the sign of a good decision? Staying up enjoying retirement not staying up worrying about it.
Contents 2 Establishing Your Plan Envision goals Estimate expenses Evaluate resources Earmark income Ensure your plan 6 Income Maximizing Social Security Guaranteeing income Other income strategies Withdrawal rate Withdrawal order 11 Access Funding emergencies Diversifying investments Diversifying products 14 Health Care Medicare Medigap insurance Long term care 17 Legacy Wills/beneficiaries Life insurance/trusts Charitable giving The MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives.
Your retirement success is driven by a series of good decisions. When planning for retirement, we all face similar questions. But each of our answers will be as unique as we are based on where we are now and where we want to be later. Reaching those goals will require making a series of good decisions about what s right for you in these key areas: Income. How will you create income for life? How much of your income should you guarantee? What about inflation? The more efficiently you answer these questions, the fewer resources you ll need to dedicate to creating income. In turn, that will enable you to keep more of your money available to meet other goals. Access. Will you have access to money as you need it? Over the 20 to 30-plus years your retirement will span, no doubt there will be unexpected challenges and opportunities along the way. You ll need assets readily available to handle the unexpected and still maintain your lifestyle. Health Care. How will you manage medical costs? Thanks to medical advances, people are living longer than ever in history. But the longer we live, the more it may cost to maintain our health or provide for long term care. Plan now to ensure your lifestyle isn t jeopardized by health care costs. Legacy. What legacy will you leave? For many, the thought of living well includes leaving behind a legacy of financial security. If this is important to you, you ll also want to explore how to establish a sound estate plan. In this brochure, we ll identify the signs of good decisions in each of these areas. 1
Establishing Your Plan Good things can come to those who don t wait Five steps to establish a plan: ENVISION the kind of retirement lifestyle you want ESTIMATE how much you ll need to fund that lifestyle EVALUATE the resources you can tap for income EARMARK guaranteed income to cover your basic needs ENSURE you re doing as much as you can now to plan for later Success of any kind rarely just happens it s created by people who take the time to imagine where they want to go and plan how to get there. The same is also true when it comes to creating a sound income plan. A sound plan has to address not only the kind of lifestyle you want, but it has to be flexible enough to meet your changing needs and must work in both good markets and bad. Consider these five simple steps to establish your own comprehensive income plan. Once your income plan is in place, you ll be in a better position to make good decisions about other important planning objectives such as liquidity, health care and your legacy. Step 1: ENVISION your goals What are you looking forward to when you retire? Spending time with your family or hopping the globe? Finally being able to pursue special interests or opening a new business? Never working again or just choosing when and where you want to work? Go ahead. Give yourself permission to envision the lifestyle you really want. It s the only way you ll truly be motivated to take the steps necessary to get there. Step 2: ESTIMATE your expenses Now it s time to get practical. How much is it going to cost to live the life you want? Keep in mind that some expenses will likely go up in retirement like health care, insurance and travel. Others may go down, possibly your housing and transportation costs. Of course, it all depends on the lifestyle you choose. But now s the time to get a good handle on how much you re likely to need. A good way to start is to estimate the cost of your basic needs, as well as your non-essential lifestyle needs. 2
Basic needs. One way to estimate how much you ll need for the basics in retirement is to consider how much you spend on the basics now. Please fill in some of the items you may need to estimate in each category below. Living Expenses: Housing: Transportation: Health Care: Insurance: Discretionary expenses. On to the fun stuff. Imagine that your basic needs are covered. What else is important to you? Estimate what you d like to have available each month for entertainment, travel, hobbies or charitable interests. While it s critical to budget for the basics, you ll also want to plan for the things that will make your retirement more rewarding. Step 3: EVALUATE your resources Next question where is all that money going to come from? As this pie chart illustrates, approximately 70% of current retirees total income comes from guaranteed sources of income Social Security and pension income Where will your income come from? Social Security Pensions/ Retirement Employment Earnings Interest & Dividends Other 12% 10% 9% 26% 43% Guaranteed Income Sources from defined benefit (DB) or other retirement plans. As DB plans decline, a smaller proportion of income from that source will be guaranteed. The remaining amount comes from personal savings and earnings. As you inventory your resources, try grouping them into these major categories: Guaranteed income sources. There are only three sources of income guaranteed to continue for life: Social Security, an employer pension plan (if you re fortunate enough to have one) and annuities. 1 Part-time/temporary income. Don t forget about rental income, part-time work or one-time asset sales. Personal savings and investments. Under this category, list your 401(k) or any other employersponsored retirement plans, IRAs, bank savings, mutual funds and individual securities you plan to use for retirement income. Source: LIMRA analysis of U.S. Census Bureau s Current Population Survey, March 2011 Supplement. Analysis based upon individual s retirement status. 1 Annuity guarantees are based on the claims-paying ability of the issuing insurance company. 3
Establishing Your Plan (continued) Good things can come to those who don t wait Step 4: EARMARK guaranteed income for your basic needs Once you ve itemized and grouped expenses and resources, you re ready to match them up and identify any gaps. Your first priority? Make sure your basic needs will be covered by earmarking guaranteed income to pay for them. The greater the percentage of income that s guaranteed, the less stress and more security you ll have throughout retirement. Guaranteed Income $ Basic Needs $ Gap = $ That leaves the income generated by your other savings to cover any basic needs gap, as well as your discretionary expenses. You can then match up any part-time/temporary income to fund short-term or one-time expenses. Step 5: ENSURE you re doing everything you can now to plan for later If you ve identified gaps, you could work longer than you might have planned, or work part-time in retirement. You could also try to live on less. But as long as you have some time before you retire, there are several ways you can build more retirement resources now. Save more as soon as possible. The longer your money has to grow, the more you may have to spend later. It s never too late to make a difference. Look for additional tax-deferred savings opportunities. The fastest way to build your resources is to protect any earnings from the drain of annual taxes. So you ll want to maximize tax-deferred savings vehicles available to you. Let s look at an example of how your savings can add up: Additional savings each year: $5,000 Hypothetical annual earnings: 7% Additional resources after 10 years: $74,000 Additional resources after 15 years: $134,000 This hypothetical illustration is not a projection of future values and does not represent the performance of any MassMutual product. Make sure you re contributing as much as possible to any tax-advantaged, employer-sponsored retirement savings plan available to you, as well as your IRA. Then consider deferred annuities, where your payments can compound tax-deferred until you withdraw them. 2 We ll talk more about annuities and how they may fit into your income plan in the next section. Next steps Ask your financial professional for MassMutual s fact finder worksheet to estimate expenses and evaluate resources. Consider ways to guarantee more income. Ensure you re saving as much as possible, particularly in tax-advantaged investments. 2 Taxable withdrawals are subject to income tax and, if made prior to age 59 1 2, may be subject to a 10% federal income tax penalty. Annuities do not provide any additional tax advantage when used to fund a qualified plan. Investors should consider buying an annuity to fund a qualified plan for the annuity s additional features, such as lifetime income payments and death benefit protection. 4
Sign of a good decision about income: You stop working. But you still have a need for regular income. 5
Income How will you create lifetime income? If you have questions... we can help answer them. When should you start collecting Social Security? How can you turn other savings into more guaranteed income? What are your options for generating regular income? How much can you withdraw each year? Which resources should you withdraw from first? Let s look at decisions you can make to maximize and even expand your sources of guaranteed income. Then we ll explore how to efficiently structure regular income from your other resources. When should you start collecting Social Security? For the foreseeable future, Social Security is still likely to serve as the basis of guaranteed income for many retirees. So, it s important that you consider how to maximize this lifetime benefit from the government. Nearly three out of four retirees don t get their full Social Security benefits. According to the Social Security Administration, 73% of current recipients receive reduced benefits for life because they started collecting their benefits before they reached their full Social Security retirement age. Collecting Social Security earlier can affect your benefits each year and over time. HYPOTHETICAL EXAMPLES Assumes $1,000 at a full retirement age of 66 and 2% annual cost-of-living adjustments. 3 AGE 62 66 70 Begin Monthly Benefit: $750 reduced by 25%. Starting at age 62 First year: $6,000 Break-even age: 5 By age 90 cumulative benefit: $330,456 Wait Monthly Benefit: $1,000 receive full benefit. Starting at age 66 $11,902 75 $394,066 Delay Monthly Benefit: $1,320 increased by 32%. 4 Starting at age 70 $17,017 78 $449,413 3 Social Security Administration, Publication No. -5-10147, ICN 480136, August 2015 4 Delayed retirement credits may accrue for each month that you delay receiving your benefit beyond your full retirement age. People who were born in 1943 or later can earn up to 8% of their full retirement age benefit each year until they reach age 70. That s a potential increase of up to 32%. Spousal benefits are not eligible for delayed retirement credits. 5 The approximate age your cumulative benefits would have equaled the benefits you would have received if you started payments at age 62. Full retirement age varies by birth year. 6
Many people don t realize that when they begin to take Social Security affects how much they get not just at age 62, but for the rest of their lives. As the chart on page 6 shows, you can increase your lifetime benefit by waiting until at least your full retirement age to collect. (This age depends on the year you were born.) Each year you wait past that age can increase your Social Security checks even more. This is an important consideration, as you may spend 30 or more years in retirement. How likely will you need income into your 90s? Female Male Couple [ [ [ 65% 43% 20% 57% 34% 13% 85% 62% 31% Percent 0 20 40 60 80 100 Source: Annuity 2012 Mortality Table, Society of Actuaries Age 85 Age 90 Age 95 As this chart shows, over 80% of couples may need income for at least one spouse up to age 95. And, nearly half of all men and women may celebrate their 90th birthday! How can you turn other savings into more guaranteed income? There is only one other way to increase your guaranteed income. You can use a portion of your savings to purchase an annuity the only financial vehicle you can purchase that can help you actually turn your savings into a guaranteed stream of income. 6 Different types of annuities to consider. There are two basic categories of annuities. Which type may be right for you depends on when you need income: An income annuity can provide income either immediately or at a specific time in the future. A deferred annuity allows your assets to grow taxdeferred now. Then, when you re ready to retire, it can turn those assets into regular income payments. 7 With either type of annuity, you can choose whether you want your income to continue for a certain period of time, or for the rest of your life. You can even choose to have your guaranteed income continue for your spouse if he or she outlives you. Your choice of deferred fixed or variable annuities. A fixed annuity will guarantee you a fixed interest rate set by the annuity issuer. A variable annuity will allow you to choose from underlying investments, including equity-based investments which have historically offered the growth potential necessary to outpace inflation. However, the investment return and principal value will fluctuate and may be worth more or less than the original cost when redeemed. Variable annuities also include specific charges and expenses. Annuity contracts typically include a death benefit that guarantees your beneficiaries will get back at least what you put in (minus withdrawals) an advantage not available with mutual funds or other investments. Some variable annuities also offer guaranteed living benefits which can be added for an additional charge. The guarantees are based on the claims-paying ability of the issuing company. 6 Guarantees are based on claims-paying ability of the issuing company. 7 Taxable withdrawals are subject to income tax and, if made prior to age 59 1 2, may be subject to a 10% federal income tax penalty. 7
Income (continued) How will you create lifetime income? Evaluating non-guaranteed income-generating strategies Strategy Description Considerations Withdrawing Taking only the interest generated by You need a substantial base to generate meaningful interest/dividends bonds and/or the dividends from stocks interest income and it may not outpace inflation over time. This strategy may not provide the same level of income as other strategies. Taking systematic Withdrawing a certain percentage from Continued opportunity for growth; access to other withdrawals your account on a regular basis assets when needed, but no guarantees your income will last for life. Laddering fixed- Purchasing a series of bonds with Security of knowing when your income will come due, income maturities different maturity dates, thus staggering but not much opportunity for growth to outpace inflation. the return of your principal Tapping into your Using the equity in your home as May affect the security of your home; even if the value home equity collateral for a line of credit/loan of your home decreases, the loan amount does not. or taking out a reverse mortgage A reverse mortgage can impact your ability to leave a legacy and reduce your choices during your lifetime. This information is being provided for educational purposes only and is not meant to encourage you or discourage you from adopting any strategy. Please consult with your financial professional, who can help you evaluate your options based on your risk tolerance, time horizon and financial situation. What other options do you have for generating income? Once you ve bridged the gap between your basic needs and your guaranteed income, you can focus your attention on efficiently structuring regular income from your other resources even though that income won t be guaranteed. Think about the resources you identified on page 3. Are your assets saved in bank accounts, invested in retirement plans or tied up in your home equity? Regardless of where those assets are, there are a variety of ways to transform them into income when you retire. Some of the most common withdrawal strategies are highlighted in the chart above. Which option, or combination of options, is right for you depends on a number of factors, such as your desire for growth, your need for security and your preference for liquidity. Your financial professional can help you evaluate all your options and tailor a strategy that best addresses your objectives. How much can you withdraw each year? Whichever withdrawal strategy you employ, you ll need to temper your withdrawal rates. If you don t, you risk running out of money long before you ve run out of bills. Since most retirees don t have the opportunity to re-make what they ve earned over the years, you ll need to preserve what you ve accumulated. That starts with deciding what percentage of your assets you can afford to withdraw each 8
year. Be sure to balance your withdrawal rate with your investment strategy. Invest too conservatively and chances are you won t have enough growth to outpace even a low withdrawal rate over time. But opt for a balanced investment strategy and a low withdrawal rate, and you have a much better chance of sustaining income for life. Which resources should you withdraw from first? Another way to extend your portfolio s life span is to strategically decide which resources to withdraw first. Again, your financial professional can tailor your strategy, but in general, you may want to withdraw from your least tax-advantaged resources first: How long will my money last? Probability of meeting income needs Withdrawal Rate Taxable investments such as mutual funds; Tax-deferred plans such as your employer s retirement savings accounts, IRAs and annuities; Tax-free sources such as Roth IRAs. 83% 97% 95% 92% 87% 4% 27% 69% 80% 80% 78% 5% 2% 25% 54% 64% 66% 6% 0% 4% 28% 45% 51% 7% 0% 0% 11% 29% 39% 8% 100% Bonds 75% B 25% S 50% B 50% S 25% B 75% S 100% Stocks This ordering allows you to extend the time your taxadvantaged assets can compound which, in turn, can boost the income they can generate over time. Keep in mind, this is a general rule of thumb. Specific circumstances, such as a tax rate increase or wealth transfer goals that include highly appreciated taxable investments, are just two examples of things that may impact your decision. You should always consult with your tax advisor to help you determine what might be your most tax-efficient withdrawal strategy. Bonds Stocks The table shows how the amount of withdrawal and various portfolio allocations can affect the chance of meeting income needs over a 25-year retirement. It is assumed that a person retires at year zero and withdraws an inflation-adjusted percentage of the initial portfolio wealth each year beginning in year one. Annual investment expenses were assumed to be 0.69% for stock mutual funds and 0.57% for bond mutual funds. The inputs used are historical 1926 2014 figures. Stocks are represented by the Ibbotson Large Company Stock Index. Bonds are represented by the five-year U.S. government bond, inflation by the Consumer Price Index, and mutual fund expenses from Morningstar. An investment cannot be made directly in an index. The data assumes reinvestment of income and does not account for taxes. 2015 Morningstar. All rights reserved 3/31/2015. Next steps Weigh the benefits of delaying Social Security. Consider purchasing an annuity. Evaluate other income strategies. Decide how much to withdraw, from where and when. Have a financial professional help you tailor your own income strategy. 9
10 Sign of a good decision about access: You feel more confident about the short term and the long term.
Access Will you have access to money when you need it? Think back over the last 30 years. Have there been any unexpected twists and turns? Times when you needed extra cash to cover an emergency or seize an opportunity? Now imagine the next 30 years. Chances are retirement, too, will have its share of surprises. While you can t predict what will happen, you can prepare by having assets readily available in your retirement plan. Here s the irony: When you plan efficiently for income and access, you can also invest more effectively for growth. Can you fund emergencies without jeopardizing your lifestyle? First things first. You need to make sure you have ready access to funds just in case you need them. And if you do need to take short-term withdrawals, you need to be confident you won t be jeopardizing your long-term financial security. If you have questions... we can help answer them. Can you fund emergencies without jeopardizing your lifestyle? Are your investments diversified for access and growth? Is your product mix also diversified for access, growth and guaranteed income? So how do you accomplish that? One way is to keep a small portion of your retirement assets in a liquid account, earmarked for emergency needs. That way, you can withdraw your money if needed without affecting your overall investment strategy. Are your investments diversified for access and growth? It used to be conventional wisdom that as you neared retirement, you needed to move your money into safe, conservative investments. But now that retirement can span three decades, that may no longer be the safe thing to do. If you don t keep at least some of your assets invested for growth, your income won t continue to outpace inflation. And if your buying power is weakened, you won t be able to maintain the lifestyle you want. So here s the new retirement reality. It s critical that you continue to diversify your investments. Now s the perfect time to work with your financial professional to review your allocation strategy and make sure you have a good mix of asset classes. Please note, asset allocation and diversification do not assure a profit and do not protect against a loss in a declining market. 11
Enhancing access, growth and guaranteed income The OLD view of retirement allocation The NEW view of retirement allocation Stocks Stocks Bonds Guaranteed Solutions Stocks Bonds Guaranteed S Bonds Guaranteed Solutions Dividing investments among a conservative mix of stocks and bonds Regularly buying fixed income annuities to guarantee more income as you age, leaving you free to invest remaining assets more aggressively for growth potential Stocks and bonds involve investment risks, including the possible loss of the principal amount invested. Diversification does not guarantee profit nor protect against loss. Do you have a diverse mix of products to provide access, growth and guaranteed income? As you move into retirement, it s not enough to diversify your investment mix. You also need to diversify your product mix. By introducing guaranteed product solutions to your retirement portfolio, you can take some level of risk off the table. These guaranteed products can be used to address specific needs. MassMutual has conducted research that shows when a variety of products and planning techniques are combined to meet each individual s unique needs, the whole can be stronger than the sum of the parts. Our research analyzed new planning approaches and strategies that combine single premium immediate annuities with other planning techniques to create retirement income synergies. An income annuity immediately generates a stream of income payments, guaranteed to continue for life. Increasing annuity benefits each year allows you to guarantee more and more of your retirement income as you age, thereby increasing your income security. As your guaranteed income builds, you can also reduce the amount you need to withdraw from your other investments each year. Since you won t be depending on those investments for income, you may be more confident investing them more aggressively for long-term growth potential. Next steps Set aside an emergency fund. Review how your products and investments are diversified. Ask your financial professional if guaranteed products could help improve your retirement results. 12
Sign of a good decision about health care: You ll feel prepared for the future whatever it brings. 13
Health Care How will you manage medical costs? Some questions to ask in planning for medical costs in retirement: How much will health care cost in retirement? What will Medicare cover? Do you need Medigap insurance? Will you be prepared for long-term health care needs? Assuming Medicare benefits remain at their current levels, a couple with unsubsidized retiree health benefits will need between $256,000 and $443,000 to cover health care costs in retirement. 8 No wonder health care costs rank as one of retirees biggest financial concerns. But the sooner you plan for this cost, the better you ll feel about your retirement security. Keep in mind, too, that the chances of those costs being offset by retiree health care insurance grow slimmer each year as fewer and fewer employers extend health care benefits to retirees. What is typically covered by Medicare and how much it costs Medicare option: What it may cover: How much it may cost: Medicare Part A Medicare Part B Inpatient medical care (NOT custodial or long term care) in a hospital, skilled nursing facility or hospice Home health care (in certain conditions) Medically necessary doctor s services and other outpatient care Limited preventive services, such as flu shots Generally available at no cost to individuals who have paid Medicare taxes while working in the U.S.; even if you aren t eligible for premium-free Part A coverage, you may still be able to enroll and pay a premium Generally available for a relatively low monthly premium (about $100 a month in 2012 for most Americans) Source: http://www.medicare.gov For more information regarding benefits provided by Medicare, visit www.cms.hhs.gov. 8 Funding Savings Needed for Health Expenses for Persons Eligible for Medicare, Employee Benefit Research Institute (EBRI) Issue Brief, No. 351, December 2010. 14
What will Medicare cover? One way to manage part of the costs of your retirement health care is to effectively utilize Medicare, the federal government s health insurance plan primarily designed for those age 65 and over. As long as you ve entered the United States legally and have been here for at least five years, you re eligible for Medicare. What s covered under your Medicare plan depends on which of the Medicare parts you have. One of the best times to buy a Medigap policy is during the open enrollment period. That period is generally within the first six months of turning age 65, although its definition differs by state. If you apply within open enrollment, there is no medical underwriting, which means you can t be refused a policy, forced to wait for your coverage or even charged more because of any health problems. Although Medigap policies used to cover prescription drugs, no new Medigap policies can cover these costs. You may want to join a Medicare Prescription Drug Plan offered by private companies approved by Medicare. Do you need Medigap insurance? Medicare Part A, Part B or both doesn t cover the total cost of most medical services or supplies. Given that those out-of-pocket costs could severely affect your lifestyle, you may want to buy a Medigap insurance policy, offered by a number of health insurers. As its name implies, Medigap insurance policies are literally designed to help bridge the gap between your retiree health care costs and your Medicare benefits. Will you be prepared for long-term health care needs? Long term care expenses are one of the largest unfunded potential liabilities facing today s retirees and soon-tobe-retirees. These types of large expenses could have a significant impact on a retirement portfolio and your ability to create meaningful income for life. Long-term care insurance could potentially be a solution. Please consult an insurance agent who specializes in longterm care insurance for complete details prior to purchasing a policy. Next steps Estimate your retiree health care costs. Learn more about Medicare benefits at www.medicare.gov. Investigate a supplemental Medigap policy. Consider long term care insurance. 15
16 Sign of a good decision about legacy: What you really pass on to your family peace of mind.
Legacy What will you leave for your family? So far, we ve been discussing retirement in terms of your income. Now let s explore what it means to your family or perhaps a favorite charity. Wouldn t you like to know that if something happened to you, your family would be taken care of? That they wouldn t have to worry about making ends meet or be forced to sell off assets to pay estate taxes or sacrifice their own long-term goals to meet short-term expenses? That s the kind of peace of mind you gain and pass on by integrating legacy planning into your retirement strategy. Here is the next series of good decisions that may contribute to your retirement success. How should you start planning for your legacy? One of the best ways to begin the legacy planning process is to inventory all your assets. Make a list of everything you own, including: real estate/other types of property; business interests; employer-sponsored retirement plans; bank accounts; brokerage and mutual fund accounts; Traditional, Roth and Rollover IRA accounts; and insurance policies and annuities. If you have questions... we can help answer them. How should you start planning for your legacy? Do you need a will? Are the beneficiaries on your accounts up to date? Do you have enough life insurance? Should you consider trusts? How can you maximize your charitable giving? Next to each asset, write down account numbers and other pertinent data. Locate any legal papers, such as deeds and contracts. Then, place all this information in safekeeping for your heirs, possibly in a safety deposit box. Do you need a will? Yes you do, and here s why: A will is a legal document that directs the disposition of assets after your death. Without a will, you would be leaving all decisions concerning your assets to the discretion of the laws of the state having jurisdiction over your estate. This can be both emotionally and physically draining for your heirs. 17
Are your beneficiary designations updated? Not all assets are distributed by will. Despite what your will says, certain types of assets are passed on to the beneficiary listed on the account, for example, employer-sponsored retirement plans, annuities and life insurance. So it s critical to keep your beneficiary designations current. Imagine your youngest child not inheriting any of your 401(k) savings simply because you never added them as a beneficiary. Take the time now to check your designations and adjust them as needed. Should you consider trusts? Trusts are not just for the wealthy. They can be extremely useful to anyone who wants to put conditions on how and when their assets will be distributed after their death. Trusts can also help transfer assets outside of the public glare and delay of probate court. Now s the time to consult with your legal and financial professionals to see whether trusts can help you accomplish your specific goals. How can you give more efficiently to the charities that mean the most to you? Another way to maximize what s passed on in benefits while minimizing what s paid out in taxes is to integrate charitable giving into your legacy planning. There are many gifting strategies to address different types of charitable goals. Ask your legal and financial professionals for more details on the most income tax-efficient and estate-planning friendly ways to gift or donate assets. Do you have enough life insurance? Life insurance is one key asset that passes directly to your beneficiaries income tax-free, without the costly delays of probate. It ensures your family has immediate access to cash when they need it most, so they re not forced to liquidate other resources quickly to meet expenses, pay estate taxes or fund longer-term goals. Planning for retirement is also a good time to review your insurance policies. Do you have enough financial protection? The right type of coverage? The right beneficiaries named? Your financial professional can help review your family s financial obligations and make sure they are properly covered by life insurance. Next steps Inventory your assets. Create/update your will. Review/update your beneficiaries. Assess your life insurance coverage. Ask about trusts. Consider more effective ways to give. 18
What is the sign of a good decision? Working with those who can help build your plan and your confidence. 19
Choose the right path for success. We ve covered many of the decisions necessary for retirement success the importance of establishing a plan and making decisions about income, liquidity, health care and legacy. Tackling all these decisions may seem like a daunting task. But it doesn t have to be. There are a few key choices that may help your retirement planning be less stressful and more successful. Choose a knowledgeable financial professional to map out a course of action. One of the most important choices to make now is which financial guide may help you chart your own path to retirement success. Consider someone with experience in helping others plan for retirement income. Someone with the expertise to tailor strategies just for you. And someone who can help you make informed decisions that drive positive outcomes. We encourage you to seek out the guidance of a local financial professional. A knowledgeable professional who will never rush to fit you into a category or push products. One who believes that the best way to build a successful plan is to build a strong relationship with their customers and will take the time to listen carefully to your needs, explain your options and customize your plan. 1 Long history of financial strength and strong performance. When you purchase a fixed annuity, you may depend on the guarantees it offers for 20 or 30 years or more. That s why it s important to work with a company that will be there to honor its commitments. For more than 160 years, MassMutual has been building a reputation for quality and integrity. 2 Putting member and policy owner interests first. As a mutual company, MassMutual does not have shareholders. Instead, its policy owners and members are often described as sharing in its ownership. That enables us to stay focused on the long-term interests of our customers. 3 Broad array of solutions. MassMutual offers a broad range of products to meet all your financial needs, including retirement products that can provide a guaranteed stream of income for life. Whatever solutions are right for you, we look forward to working with you and your financial professional to help you make the good decisions that retirement success requires. Choose a financially strong company to work with. When it s time to execute your plan, you ll need to choose solutions from a company with the financial strength to be there when you need them. Here are three reasons you can feel confident about choosing MassMutual. 20
MassMutual. We ll help you get there. Hopefully you found this guide helpful in outlining the decisions you ll need to make as you build a sound retirement income plan. Fortunately, you don t have to make these decisions on your own. MassMutual and your financial professional can help you clarify your goals, identify your needs, evaluate your options and tailor your plan. Take the most important next step now: Contact your financial professional. The sooner you do, the more confidently you can look ahead toward a rewarding retirement.
The information provided is not written or intended as specific tax or legal advice. MassMutual, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel. Variable annuities are sold by prospectus. Before purchasing a variable annuity contract, investors should carefully consider the investment objectives, risks, charges and expenses of the variable annuity contract and its underlying investment choices. For this and other information, obtain the prospectuses for the variable annuity contract and its underlying investment choices from your registered representative. Please read the prospectuses carefully before investing or sending money. Annuity products are issued by Massachusetts Mutual Life Insurance Company and C.M. Life Insurance Company. C.M. Life Insurance Company, Enfield, CT 06082, is non-admitted in New York and is a subsidiary of Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001. Variable annuities offered through registered representatives of MML Investors Services, LLC, Springfield, MA 01111-0001 or a broker-dealer that has a selling agreement with MML Strategic Distributors, LLC, Springfield, MA 01111-0001, a subsidiary of MassMutual. 2016 Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001. All rights reserved. www.massmutual.com. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. INC5000 516 CRN201705-168825