SUCCEED SUNRISE PHOTOS TAKEN BY REAL PEOPLE OF THEIR ACTUAL DAY ONES OF RETIREMENT. WHAT WILL YOURS LOOK LIKE? INVEST EASILY FOR YOUR DAY ONE OF RETIREMENT AND BEYOND Prudential SmartSolution IRA Investment Guide
Reach your Day One of retirement with confidence One of the most important steps in planning for your retirement is creating an investment strategy that takes into account your unique needs, investor style and to retirement. A Prudential SmartSolution IRA can help. The Prudential SmartSolution IRA 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 easy 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 Personal help every step of the way Prudential Retirement Counselors will answer your questions, review your individual progress and help keep you on track to meet your goals. 2 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.
A Prudential SmartSolution IRA makes picking your investment strategy quick and easy. When choosing investments, financial professionals recommend selecting those that help you manage your risk and that fit your investment objectives An effective way to do this is asset allocation the process of spreading money among a variety of asset categories, such as stocks, bonds and stable value investments. Dividing your portfolio among a mixture of investment classes minimizes your reliance on any one investment. Now may be a good time to revisit your asset allocation strategy by: using GoalMaker, Prudential SmartSolution IRA s asset allocation program; contacting a Retirement Counselor 3 at 1-877-778-2100 for assistance; or visiting Prudential online at www.prudential.com/online/retirement. This way, if your investments in one category are performing poorly, you could have assets in another category that are performing well, and the gains in one may help offset the losses in the other. Keep in mind that application of asset allocation and diversification concepts does not assure a profit or protect against loss in a declining market. It is possible to lose money by investing in securities. 3 Retirement Counselors are registered representatives of Prudential Investment Management Services LLC who will receive compensation if you decide to either roll over your plan account to an individual retirement account (or IRA ) through Prudential or keep your funds in your employer-sponsored retirement plan. The timing and amount of these compensation payments for an IRA rollover is more favorable than for remaining in the plan. Should you choose to roll to an IRA through Prudential, such compensation does not differ based on which IRA you choose or how your money is invested. 3
GoalMaker: Asset allocation made easier Creating an investment mix that s tailored to your specific goals can challenge even the most seasoned investors. That s why we offer GoalMaker, a powerful asset allocation tool offered through your Prudential SmartSolution IRA at no additional cost. Here s how GoalMaker can help you choose a diversified model portfolio that matches your investor style and to retirement. STEP 1: Determine your investor style Investor style is simply how comfortable you are with short-term swings in the market. (To help determine yours, please see Investor Style Quiz on page 5.) STEP 2: Determine your to retirement How much time do you have until you need to start taking income from your savings? Once you ve determined your investor style and to retirement, simply match them with the corresponding GoalMaker portfolio at the end of this brochure. Then, if you re comfortable with that portfolio, you re ready to go. CONSERVATIVE INVESTORS generally are concerned about short term ups and downs in the market, and want to minimize risk and maintain principal. MODERATE INVESTORS generally are willing to sacrifice safety of principal for potentially greater returns, and can tolerate modest market fluctuations. AGGRESSIVE INVESTORS generally seek to maximize investment returns, and can tolerate substantial market swings. Let GoalMaker help you all along the way Staying on course to your Day One of retirement and beyond GoalMaker doesn t end by helping you select a diversified model portfolio customized to your specific needs. Because one investment option in your portfolio may grow (or decline) faster than another, over time your original asset allocation may become unbalanced. But with automatic rebalancing, GoalMaker 4 systematically moves money within your portfolio to maintain your original allocation. This way, GoalMaker can help ensure that the asset allocation that was designed for you stays on track. How to enroll in GoalMaker Just log on to your account at www.prudential.com/online/retirement and select GoalMaker from the menu of options on the Account Details page. For assistance, or to open a Prudential SmartSolution IRA, contact a Prudential Retirement Counselor toll-free at 1-877-778-2100. Determining an investment mix for your unique goals doesn t have to be difficult. And with GoalMaker s help, it isn t. 4 4 Even with Automatic Rebalancing, Prudential Retirement suggests reviewing your investments at least annually.
INVESTOR STYLE QUIZ 5 Circle the points that correspond to your answer for each statement. When you are done, add up your points to determine your Investor Style. 1 How concerned are you that you won t achieve a high enough rate of return over the long term? Very concerned 10 Somewhat concerned 7 Not concerned 3 2 How concerned are you about inflation s effect on your retirement savings loss of buying power? Very concerned 6 Somewhat concerned 4 Not concerned 1 3 How concerned are you about wide swings in your account value over 1 3 months? Very concerned 0 Somewhat concerned 4 Not concerned 12 4 How concerned are you about wide swings in your account value over 1 2? Very concerned 2 Somewhat concerned 6 Not concerned 12 5 Which of the following concerns you most about your account? My ability to get back at least the same amount of money that I put in 2 That my money is not earning enough 6 How much I have gained or lost this month 0 6 One of the investments in your account has performed very well for a few. What would you do if it suddenly dropped 1 in 3 months? Sell immediately 0 Hold it 6 Buy more 8 7 How much experience do you have with stock investments? A great deal 6 A fair amount 4 Very little 2 None 1 8 How comfortable are you with stock investments? A great deal 12 A fair amount 10 Very little 4 Not at all 0 9 How much experience do you have with bond investments? A great deal 5 A fair amount 3 Very little 2 None 1 10 How comfortable are you with bond investments? A great deal 7 A fair amount 4 Very little 3 Not at all 0 INVESTOR STYLES CONSERVATIVE 0 40 PTS MODERATE 41 60 PTS AGGRESSIVE 61 + PTS 5 This quiz is designed to be used as a guide only and is not intended as financial advice. Your financial decisions should not be based solely on the score you have obtained using this quiz. 5
Prudential SmartSolution IRA with PruSecure (GIA) Prudential SmartSolution IRA with MoneyMart (Nevada, Montana, Utah only) CONSERVATIVE MODERATE AGGRESSIVE CONSERVATIVE MODERATE AGGRESSIVE 16+ 24% 1 1 1 31% 1 1 3 13% 13% 16+ 1 24% 30% 31% 3 1 1 1 1 13% 13% YEARS TO RETIREMENT 11-15 6-10 1 1 2 2 9% 1 1 4% 12% 1 1 4% 39% 2 2 YEARS TO RETIREMENT 11-15 6-10 1 49% 3 2 20% 1 9% 4% 4% 12% 1 3 49% 5 1 0-5 3% 3 44% 32% 2 3% 1 12% 12% 21% 2 0-5 3% 3% 6 52% 1 12% 12% 4 Prudential MoneyMart Assets, Inc. A* PruSecure (GIA) Prudential Total Return Bond R Prudential Jennison Growth R Prudential Strategic Value R Prudential Jennison Small Company R Prudential Small Cap Value R Target International Equity R All investing involves various risks, such as: fixed income (interest rate), default, small cap, international and sector including the possible loss of principal. 6 *An investment in the money market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the Fund. These model portfolios are provided as samples and not as investment recommendations. The model portfolios are based on generally accepted investment practices and take into account the principles of modern portfolio theory, in which allocations are adjusted in an effort to achieve maximum returns for a given level of risk. You may want to consider other assets, income, and investments you may have before applying these models to your individual situation. Please note that in addition to the specific investments used in the GoalMaker portfolios, other investments may be available under your retirement program. Past performance of investments or asset classes does not guarantee future results.
Important Considerations The decision to roll over from your Plan to an IRA needs careful consideration of the following factors: Compensation The Retirement Counselors are registered representative of PIMS, LLC who will receive compensation if you decide to either roll over your Plan account to an individual retirement account (or IRA ) through Prudential or keep your funds in your employer-sponsored retirement plan. The timing and amount of these compensation payments for an IRA rollover is more favorable than for remaining in the plan. Should you choose to roll to an IRA through Prudential, such compensation does not differ based on which IRA you choose or how your money is invested. Prudential is very likely to earn more revenue if funds are rolled over to a SmartSolution IRA than if maintained in your account balance under your former employer s plan. Investment Options If you remain in your former employer s plan, the investment choices are selected by a party that has a fiduciary obligation to act in your best interest. The SmartSolution IRA is not affiliated with any employer-sponsored plan or plan sponsor, and a rollover to an IRA means that 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. Penalty-Free Withdrawal If you leave your job between age 55 and 59½, you may be able to take penalty free withdrawals from a plan. In contrast, penalty-free withdrawals generally may not be made from an IRA until age 59½. It also may be easier to borrow from a plan than from an IRA. Protection from Creditors and Legal Judgments Generally, plan assets have unlimited protection from creditors under federal law, while IRA assets are protected in bankruptcy proceedings only. State laws vary in the protection of IRA assets in lawsuits. Required Minimum Distributions Once you reach the age of 70½, the rules for both plans and IRAs require the periodic withdrawal of certain minimum amounts, known as the required minimum distribution. If you are still working at age 70½, generally you are not required to make the required minimum distributions from my current employer s plan which may be advantageous for you if you work into your 70s. Employer Stock If you hold significantly appreciated employer stock in a plan, you should consider the negative tax consequences of rolling the stock to an IRA. If employer stock is transferred in-kind to an IRA, stock appreciation will be taxed as ordinary income upon distribution. The tax advantages of retaining employer stock in a non-qualified account should be balanced with the possibility that you may be excessively concentrated in employer stock. It can be risky to have too much employer stock in my retirement account and it may be advisable to liquidate the holdings and roll over the value to an IRA, even if it means losing long-term capital gains treatment on the stock s appreciation. Fees and Expenses You have the option to maintain your account balance under your former employer s plan instead of rolling my account balance to an IRA, and that the fees associated with remaining in the plan will be different from, and are likely to be less than, the fees of the SmartSolution IRA. Both employer plans and IRAs typically involve investment-related expenses and plan or account fees. You may request a comparison of fees between your former employer s plan record kept by Prudential and a SmartSolution IRA. Investment-related expenses may include sales loads, commissions, the expenses of any mutual funds in which assets are invested and investment advisory fees. Plan fees typically include plan administrative fees such as recordkeeping, compliance, trust fees and fees for services. IRA account fees may include administrative, account set-up and custodial fees. For additional questions or explanations, please contact Prudential Retirement at 1-877-778-2100 on (1) compensation (2) investment options (3) penalty-free withdrawals (4) protection from creditors and legal judgments (5) required minimum distributions (6) employer stock and (7) fees and expenses. 7
280 Trumbull St Hartford, CT 06103 www.prudential.com/prs Summary of Fees The Prudential SmartSolution IRA provides fund monitoring, professional retirement counseling, planning tools such as GoalMaker and more. It s simple, straightforward and smart. Account balance Annual custodial fee* $100,000 and up 0.2 ($500 maximum) $50,000 99,999 0.4 $25,000 49,999 0.90% Under $25,000 1. ($100 minimum) Investors should carefully consider a fund s investment objectives, risks, charges and expenses before investing. For more complete information about the Investment options available through your plan, please call 1-877-778-2100 for a free prospectus that contains this and other information about our funds. For variable insurance products, you should 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 each fund are offered through Prudential Investment Management Services LLC (PIMS), Three Gateway Center, Newark, NJ 07102-4077. 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 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. Investment advisory services provided by Global Portfolio Strategies, Inc., a registered investment advisor and Prudential Financial company. Additional fees may apply for clients terminating accounts with PruSecure (GIA). See the PruSecure (GIA) disclosures for details. Fees that Prudential Retirement and its affiliates receive in connection with investments in these funds include a 12b-1 fee of (0.50%), after waiver, and an annual sub-accounting and/or servicing fee of (.13%) per client invested in the fund. The PruSecure (GIA) 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 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 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 and can even stop them. * One quarter of the Prudential SmartSolution fee will be charged quarterly and is based on the total balance of your account at the end of each calendar quarter. The Annual custodial fee may be waived for any calendar quarter if 7 or more of your account balance is invested in PruSecure (GIA). Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Target Class R shares and Prudential Investments Class R share funds were introduced after original inception date of the Target Class T and Prudential Investments Class A share funds. Results prior to inception of Target R and Prudential Investments R share funds are hypothetical, based on Target Class T or Prudential Investments Class A share returns at net asset value adjusted for additional distribution and service (12b-1) fees of 0.7 annually. The Portfolio s Distributor has contractually agreed to waive 0.2 annually of the Class R 12b-1 fee. See the individual prospectuses for specific effective dates of the waiver. Hypothetical Class R share returns would be greater with the waiver. In creating hypothetical Class R share returns, no adjustments are made for any differences in other expenses that may or may not impact hypothetical Class R share returns. Please see the fund s most recent shareholder report for actual date of first sale. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class. 2015 Prudential Financial, Inc. and its related entities. Prudential, the Prudential logo, the Rock symbol and Bring Your Challenges are service marks of Prudential Financial, Inc., and its related entities, registered in many jurisdictions worldwide. 0183280-00010-00 ROFS003 Printed 06/2015