INDUSTRY INSIGHT
RETIREMENT
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Navigating Unchartered Waters:
How to stay financially afloat in a sea of fiscal uncertainty
There’s no doubt about it, these are challenging times in which we live.
If you’ve lost sleep in recent months due to stress about paying for college,
having enough money for retirement, or even keeping the roof over your
head, you are not alone. With so many components outside of your control,
it’s easy to feel adrift without a lifeboat. And since many experts say the
economy’s instability is the one thing we can count on for the indefinite
future, taking action now to help strengthen your financial position is
essential. Five steps you may want to consider taking immediately:
1. Don’t panic and pull out. Most financial experts agree now is not the
time to simply stop investing or cease contributions to your retirement
plans. That’s especially true if your target retirement date is ten or more
years away. Revisit your portfolio, your risk tolerance and how to
reallocate funds if necessary to minimize losses and maximize gains.
2. Pay off unsecured debt. Now is the time to pay down credit card and
student loan debt. Trim your budget to make extra payments. Set a
target goal date to become debt free once and for all.
3. Save, Save, Save. If the worst happens and you lose your job, do you
have enough savings to carry you through? If not, start socking away
at least 10% of your income if at all possible. In this economy, it could
take six months or more to find a comparable new job, so six to eight
month’s living expenses should be your target goal.
4. Review your insurance coverage. Now is the time to review, update
or purchase insurance policies to make sure you are adequately
covered. If you have neglected to purchase life insurance or disability
income insurance*, it’s time to explore the benefits of these important
financial safeguards.
5. Inquire about annuities. With many retirement account balances
taking a tumble in recent months, searching out ways to establish
a secure guaranteed stream of income during retirement is important.
Variable annuities offer a wide range of professionally managed
investment options, guaranteed death benefits, and a variety of
payout options including guaranteed income for life.
Surviving the recent economic storm is difficult, but not impossible. It
will take discipline, planning, and yes, even courage. But the good news is,
taking positive, proactive steps now can help put you back in the helm and
keep your financial dreams afloat for years to come.
Investors should consider the contract and the underlying portfolios’
investment objectives, risks, charges and expenses carefully before
investing. This and other important information is contained in the
prospectuses, which can be obtained from your financial professional.
Please read the prospectuses carefully before investing.
It is possible to lose money by investing in securities.
Variable annuities are appropriate for long-term investing and designed
for retirement purposes. Investment return and principal value of an
investment will fluctuate so that an investor’s unit values, when redeemed,
may be worth more or less than their original cost. Withdrawals or
surrenders may be subject to contingent deferred sales charges (CDSC).
Withdrawals and distributions of taxable amounts are subject to ordinary
income tax and, if made prior to age 59 ½, may be subject to an additional
10% federal income tax penalty. Withdrawals, for tax purposes, are deemed
to be gains out first. Withdrawals can reduce the living benefit, death benefit
and account value.
Optional benefits have certain investment, holding period, liquidity and
withdrawal limitations and restrictions; you should see the prospectus for
more information.
Our products contain exclusions, limitations, reductions of benefits and
terms for keeping them in force. Your licensed financial professional can
provide you with costs and complete details.
Insurance is issued by The Prudential Insurance Company of America
and its affiliates, Newark, NJ. Variable annuities are issued by Pruco Life
Insurance Company (in New York, by Pruco Life Insurance Company of
New Jersey), Newark, NJ and distributed by Pruco Securities, LLC (Pruco).
All are Prudential Financial companies and each is solely responsible for its
own financial condition and contractual obligations. *Availability varies by
carrier and state.
Variable annuities offered by Prudential Financial companies are available
at a total annual insurance cost of 0.55% to 1.95%, with an additional fee
related to the professionally managed investment options. The fees will vary
depending on the underlying annuity and investment options selected.
Payments of guaranteed principal and income, as well as living and death
benefit guarantees are contingent upon the claims-paying ability of the
issuing company. Guarantees do not apply to the investment performance
or safety of the underlying subaccounts in the variable annuity. Optional
living and death benefits are available for an additional fee and may not be
available in all states and may not be elected in conjunction with certain
optional benefits. The fees are in addition to fees and charges associa