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RETIREMENT

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					Generation Y Q & A
Prudential Retirement Webinar Series



                                       We’ve selected some commonly asked questions from over
                                       200 submitted during November’s Gen Y – Guide to Preparing
                                       for the Future webinar. Although this information can help
SHOULD THINK ABOUT                     you better understand general retirement investing principles,
                                       you should consult your own financial advisor for information
RETIREMENT                             about your specific situation.

    A Gen Y guide to
 preparing for the future              TABLE OF CONTENTS
                                       Retirement strategies................................................................................ 2
                                       Contributions ............................................................................................. 4
                                       Additional ways to save ............................................................................ 5
                                       Loans & withdrawals ................................................................................ 5
                                       Changing jobs ............................................................................................ 5
RETIREMENT STRATEGIES
Am I saving enough and when         That depends on how much you’re saving, how you’re investing what you’re saving, and when you plan on retiring. As someone participating in a
will I be able to retire?           retirement plan recordkept by Prudential Retirement®, you can find out if you’re doing enough by using the Retirement Income Calculator. Available on your
                                    online account, the Retirement Income Calculator will take your financial information and let you know how much you may have in retirement. And if there’s
                                    a gap between where you’re headed and where you’d like to be, the Retirement Income Calculator will provide you with some strategies to help make up
                                    the difference.

How much do I need in savings       Many financial professionals estimate that you will need approximately 80% of your income to sustain your lifestyle in retirement, for every year that you
at retirement? Is there a           will live in retirement. But how much you need in retirement really depends on how you plan on spending your time in retirement. If you plan on travelling,
general monetary goal such as       taking up new hobbies, or even going back to school, that will require more funding than if you plan on a quiet, modest retirement. To get an idea of how
“X times your annual salary”        much you may need in retirement, spend some time with the Retirement Income Calculator. Available online, the Retirement Income Calculator can tell you
                                    how much money you may need in retirement and if you’re doing enough for your retirement.
or half a million dollars by the
time you’re age 65?

How can I figure out what my        The Retirement Income Calculator can help translate your current financial information, such as how much you’re saving and how you’re investing what
current savings will be worth       you’re saving into a clear picture of what you may have in retirement, based on any age you pick. You may also want to explore the Prudential Retirement
when I’m age 67?                    Education & Planning website, “PREP” at www.prudential.com/prep. It’s loaded with great calculators and tools to help you discover if your retirement
                                    planning strategy is working for you.

For Gen Y’ers, what is a            That depends on your individual situation. For example, employees of a governmental agency may have pre-determined retirement ages. Most other
reasonable age to plan on           organizations have no requirement, so when you retire is entirely up to you and your retirement planning strategy. To get an idea of what age is realistic
retiring? 70?                       for you, you may want to explore the Prudential Retirement Education & Planning website, “PREP” at www.prudential.com/prep. It’s loaded with great
                                    calculators and tools to help you discover how your retirement planning strategy is working and when you may be financially prepared to retire in the
                                    manner you envision.

Is there a particular age when      Anytime is a good time to explore additional ways to save for retirement. And considering how time can be a great ally, the sooner you start, the better.
you [should] diversify your         For example, you may want to consider a Roth IRA, which offers the potential for tax free distributions at retirement. This will help you diversify your future
portfolio, instead of just having   tax liabilities, and can help balance out your overall retirement planning strategy. For more information, please talk to your tax advisor, or explore the
a 401(k)?                           Prudential Retirement Education & Planning website, “PREP” at www.prudential.com/prep.


What is the best way to make        If you are referring to decreases in your account due to market downturns, often the most prudent approach is simply to leave your account alone as
up for losses? I am not able to     history has shown that the market tends to move in cycles and downturns are usually followed by upticks. And with you being a Gen Y’er, you likely have
contribute to my account. My        plenty of time before retirement for recovery. So your losses, while disturbing, may only be temporary. If you are seeking additional ways to save more for
account is company sponsored        your retirement, you can take advantage of other savings vehicles outside of your company-sponsored plan, such as a Traditional or Roth IRA, , which are
                                    savings vehicles that also offer tax advantages for savers. To learn more about IRAs, visit the Prudential Retirement Education & Planning website, “PREP”
and contributions are strictly
                                    at www.prudential.com/prep or speak with a Prudential Retirement Counselor by calling 1-877-PRU-2100 (1-877-778-2100) about IRAs or additional ways
by my employer.                     to save.


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Does Prudential Retirement          Asset allocation is a helpful strategy when saving and investing for retirement. Unfortunately, Prudential cannot advise you on how to allocate your
offer advice on asset               retirement assets. Prudential can provide you with insight and education regarding asset allocation concepts and strategies, through tools, articles, and
allocation? How do I distribute     self-paced learning sessions found on the Prudential Retirement Education & Planning website, “PREP” at www.prudential.com/prep. If you would like
my money across the different       professional financial advice, consider contacting someone trained in personal finance. Start by looking online or in your local Yellow Pages. Or ask friends
                                    and relatives for a reference. Be sure the one you select has the proper credentials, such as CFP (Certified Financial Planner), RFP (Registered Financial
funds available in my plan?
                                    Planner), or ChFC (Chartered Financial Consultant). Also consider visiting the FINRA website www.FINRA.org to do a “Broker Check” on anyone you are
                                    considering.

Will the 401(k) contribution        No. The limit is the same as 2010, which is $16,500. And the limit for catch-up contributions (for those 50 and above) is an additional $5,500.
limit increase for 2011?

How do I see my asset               You can log onto your online account at www.prudential.com/online/retirement. Or, check your monthly or quarterly account statement. You can also
allocation?                         make changes to your allocations online or by calling 1-877-PRU-2100 (1-877-778-2100).


How do I know when to re-           In general, it’s wise to review your asset allocation at least once per year to get an idea if your allocation strategy is working for you or needs to be refined.
allocate funds?                     You can also use major life events—marriage, the birth of children, milestone birthdays—as great opportunities to review your allocation strategy and
                                    make necessary changes.
                                    If you find your asset allocation no longer fits your strategy, you may need to rebalance. Rebalancing your account enables you to put your desired
                                    asset allocation back on track. This can help you to ensure that your account remains invested in a way that’s consistent with your long-term goals and
                                    investment objectives. But keep in mind that financial professionals generally do not advise that you change your investment allocation in reaction to short-
                                    term developments in the financial markets.

What happens when you stop          Yes. This is called “compounding” and it is the money’s ability to “earn interest on interest.” The concept of compounding can really work in your
investing because of present        favor when you start saving early because the longer your money is in the plan, the more potential it has to grow. So even if you have to stop making
financial problems? Does the        contributions to your plan, your existing balance remains invested and has the potential to continue to grow.
money still keep on earning
dividends or interest?

I am 45 yrs old, and took a         If you’re already contributing the maximum, which is $16,500 for the year 2011, there’s not much else that you can do in the plan. You can take advantage of
withdrawal due to financial         other savings vehicles, such as IRAs, to save even more than the amount permitted in your plan. Another option for catching up, though one that won’t be
difficulties. How can I catch up?   available to you for five years, are catch-up contributions, which are available to plan participants age 50 and over.




                                                                                               3
I am 36 years old and have         A great place to start is to learn more, by visiting the Prudential education web site www.prudential.com/prep. You’ll find articles such as “The Family:
approximately $40,000 in my        Saving for Retirement and College” http://www3.prudential.com/signature/Saving-Retirement-College.html and even an online course “Saving for
401(k) plan. I am married          College” http://www3.prudential.com/signature/includes/courses/college/default.html
with three young children. I       Unfortunately, Prudential cannot advise you on how to allocate your assets for all of life’s priorities. Prudential is only prepared to offer you insight and
would like to plan for not only    assistance to your retirement planning strategy. If you would like professional financial advice, consider contacting someone trained in personal finance.
my retirement, but also my         Start by looking online or in your local Yellow Pages. Or ask friends and relatives for a reference. Be sure the one you select has the proper credentials,
children’s education. What         such as CFP (Certified Financial Planner), RFP (Registered Financial Planner), or ChFC (Chartered Financial Consultant). Also consider visiting the FINRA
                                   website www.FINRA.org to do a “Broker Check” on anyone you are considering.
advice do you have for this
situation?

How much permanent monthly         That’s a difficult question, and depends on how your money is invested and your life expectancy. There are investment products available which can offer
income can be generated per        you a guaranteed income stream, so for more information please consult with a Prudential Retirement Counselor at 1-877-PRU-2100 (1-877-778-2100).
$100k saved at retirement and
how is it done?

CONTRIBUTIONS
I’m 24, and contributing the       “Maxing out” your retirement plan is always a good idea because, by contributing all you can, you’re enjoying the maximum tax advantages. Plus, when
max allowed annual amount          you’re younger and retirement is likely a long way off, your money has plenty of time to grow, so the more you can put in, the more you may have later.
($16,500 per year) to my           Whether you should cut back, however, is entirely up to your financial needs. If you do not have financial obligations that require you to have more liquid
401(k). Is it worthwhile at this   assets, you may be better off staying the course. If you’re experiencing significant life changes, for example, getting married, having children, purchasing
                                   a home, you may find it necessary to allocate some funds to these other priorities. It’s important, however, to find a balance. Make sure that, as other
time, or should I cut back my
                                   priorities arise, retirement remains atop your list and you never stop contributing, if at all possible.
contributions for more cash-
in-hand?

What’s better, “Regular”           That depends on when you would like to enjoy your tax advantages. Generally, when you contribute to a 401(k) plan, you do so with before-tax dollars,
or Roth Savings? Do you            causing you to pay less in taxes today, and putting off having to pay taxes on that money until you begin to make withdrawals in retirement, when you may
recommend people invest            be in a lower tax bracket. With Roth IRAs, you pay tax on that money today and not when you withdraw it. This could be advantageous if you estimate that
more in a 401(k) or Roth IRA?      you will be in a higher tax bracket in retirement. Keep in mind that some 401(k) plans allow for Roth after-tax contributions that will allow you to enjoy the
                                   same tax benefits as contributing to a Roth IRA. To learn more about the benefits of Roth IRAs or to find out if Roth contributions are available in your 401(k)
                                   plan, speak with a Prudential Retirement Counselor by calling 1-877-PRU-2100 (1-877-778-2100) or visit the Prudential Retirement Education & Planning
                                   website, “PREP” at www.prudential.com/prep.




                                                                                              4
With regard to before-tax         Your balance of before-tax and Roth contributions is an entirely personal decision and Prudential Retirement cannot offer advice or guidance on this topic.
contributions, how should         If you would like professional financial advice, consider contacting someone trained in personal finance. Start by looking online or in your local Yellow
I balance the benefits of         Pages. Or ask friends and relatives for a reference. Be sure the one you select has the proper credentials, such as CFP (Certified Financial Planner), RFP
before-tax contributions now,     (Registered Financial Planner), or ChFC (Chartered Financial Consultant). Also consider visiting the FINRA website www.FINRA.org to do a “Broker Check”
                                  on anyone you are considering.
with the benefits of after-
tax contributions (e.g. Roth
401(k))?

Does Prudential offer a Roth      Whether your plan allows for Roth after-tax contributions is completely up to your plan. To discover if yours does, speak with your plan sponsor or a
401(k) option with my plan?       Prudential Retirement Counselor by calling 1-877-PRU-2100 (1-877-778-2100).

ADDITIONAL WAYS TO SAVE
After I maximize my 401(k), is    Absolutely. For example, both Traditional and Roth Individual Retirement Accounts (IRAs) are savings vehicles that also offer tax advantages for savers.
there another way to save for     To learn more about IRAs, visit the Prudential Retirement Education & Planning website, “PREP” at www.prudential.com/prep or speak with a Prudential
retirement?                       Retirement Counselor by calling 1-877-PRU-2100 (1-877-778-2100) about IRAs or additional ways to save.


Can I max out my 401(k) plan at   Yes. These are two different savings vehicles each with their own maximum contribution levels. Generally for 2011, you are eligible to contribute to a Roth
work AND also contribute the      IRA if you have earned income below $179,000 if married filing jointly, and $122,000 if you are single. Partial contribution limits may apply depending on your
max to a Roth IRA?                income, so please check with your tax advisor or the IRS website at www.irs.gov for more information.

LOANS & WITHDRAWALS
What do you recommend about       We do not recommend taking loans from your 401(k) Plan. When you take a loan, you lower your balance for a period of time and have less money working
taking out a loan from your       for you in your account. And some plans may restrict you from making additional contributions to your account until the loan is repaid. What’s worse, if you
401(k) account?                   don’t repay the loan, that money will be deemed an early withdrawal and will be subject to taxes and potential penalties. For these reasons, we recommend
                                  considering all other options before borrowing from your 401(k) Plan. If you must borrow from your account, make sure it is not for a frivolous reason.

CHANGING JOBS
I left my 401(k) at my last       You can easily roll over assets from your 401(k) plan—or from any other qualified retirement plan—by calling 1-877-PRU-2100 (1-877-778-2100). You can
job, how do I switch it to        roll those assets over into another qualified retirement plan, such as your Prudential Retirement account, if your current plan will allow it. By consolidating
Prudential?                       your assets, you’ll simplify your retirement scenario because all of your reporting will be on one statement. In addition, it might cost you less since you’ll
                                  potentially be avoiding additional account fees—and you can take advantage of the other plan offerings. To initiate a rollover into your account, contact
                                  Prudential at 1‐877‐PRU‐2100 and say “consolidate.”




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  What if I leave my job, what              As a plan participant in a Prudential sponsored retirement plan, you have many options. With most plans, if you’re pleased with the plan, you can simply
  happens to my 401(k) account?             keep your money in the plan, though you won’t be able to continue contributing to that account. If your new employer offers a qualified retirement plan, you
                                            can also rollover the assets in your account into that plan, if you wish, and continue building upon your savings. You can discuss your many plan options—
                                            and the benefits of each—by speaking with a Prudential Retirement Counselor by calling 1-877-PRU-2100 (1-877-778-2100). For plan specific questions,
                                            or questions about your personal retirement account, please contact your benefits or Human Resources office or speak with a Prudential Retirement®
                                            Counselor by calling 1‐877‐PRU‐2100.




   Still have questions?
   Call 1-877-PRU-2100 to speak with a Prudential Retirement Counselor.


The Retirement Income Calculator is hypothetical and for illustrative purposes only and is not intended to represent performance of any specific investment, which may fluctuate. There is no assurance
that retirement income objectives will be met. It is possible to lose money by investing in securities.
This material has been provided for informational purposes only and should not be considered investment advice or a product recommendation.
All investing involves various risks, such as fixed income (interest rate), default, small cap, international and sector—including the possible loss of principal.
Prudential is not responsible for the information contained in the external website(s) and makes no representations about information contained therein. The sites are provided to you for informational
purposes only. Prudential is not a tax or legal advisor and encourages you to consult your individual legal or tax advisor with any specific questions.
Retirement products and services are provided by Prudential Retirement Insurance and Annuity Company, Hartford, CT, or its affiliates.
Securities products and services are offered through Prudential Investment Management Services LLC (PIMS), Three Gateway Center, 14th Floor, Newark, NJ 07102‐4077. PIMS is a Prudential Financial
company.
Retirement Counselors are registered representatives of PIMS. Prudential Retirement is a Prudential Financial business.
Prudential, the Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
                                                                                                                                                                                                    RSF1343
0198214-00001-00                                                                                                                                                                           Published 03/2011
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