PRU097(RSFO201) 9/27/06 5:24 PM Page 1 National Parks on ...

[Pages:2]Pretend for a moment that you visit the National Parks on vacation, but you spend the whole time in your tour bus. You can see the majestic sights from your window, but you never get out to explore all the parks have to offer. It's better than not going at all, but just barely.

It's the same with your workplacesponsored retirement program. Joining the program and making any contribution is a good thing. But, if you don't take full advantage of everything your retirement program has to offer, it's like going to the Grand Canyon and staying in the car: better than not joining at all, but just barely.

The Prudential Insurance Company of America Prudential Retirement 30 Scranton Office Park Scranton, PA 18507-1789

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How to make the most of your retirement program

Do More of These:

Enroll in the program--seems obvious, but worth repeating. Your program is a taxadvantaged savings opportunity you can't afford to pass up.

Save more. Get in the habit of making small increases on a regular basis--you'll hardly feel it in your paycheck, but you'll appreciate the difference it can make at retirement. Your program may also offer a tool to have your contributions automatically increased each year.

Vary your investments. Spreading your money across a variety of different asset classes can help manage your investment risk. And you don't have to be an investment professional to figure it out. For help, visit Signature OnlineSM, the educational website of Prudential Retirement?, at signature to take the online course "How to Choose Investments."

Review your account periodically. Use your account tools and retirement statement to monitor your account, and make changes as necessary to keep on track toward your goals.

Keep learning. An informed investor may make better decisions, and better decisions may lead to better outcomes. Signature Online has a wealth of information--online courses, articles, calculators--as well as links to a host of excellent resources to help you learn more.

How much will it cost each month?

Compare the impact of three different contribution rates on your take-home pay. See for yourself that when you increase your contributions, you do not decrease your take-home pay as much as you may think. Additionally, your taxable income is reduced. You pay less in current federal taxes and invest more into your account.

Contribution Percentage

Your monthly contribution amount

Amount your take-home pay is reduced each month

6%

$175 $131

9%

$263 $197

12%

$350 $263

This chart assumes a 25% pre-retirement tax bracket and does not take into account state or local taxes. It also assumes an annual salary of $35,000. Amounts withdrawn before age 591/2 may be subject to a 10% federal income tax penalty, applicable taxes and plan restrictions. Withdrawals are generally taxed at ordinary income tax rates.

Do Less of These:

Taking a loan or withdrawal from your account. It's tempting, but resist the urge to take a loan or withdrawal from your retirement program. Any money you take out of your account loses its tax-deferred status and may have tax consequences, and a penalty.

Not only are there tax implications, but the impact on your savings over the long term could be substantial. Don't jeopardize your long-term goals for short-term needs-- consider other options, like a bank or credit union.

FOR MORE INFORMATION . . . Take control of your financial future by making the most of your retirement program--explore all the possibilities your program offers. You can get started at Signature Online, signature. Read an article, take an online course, create different "what if" scenarios with the interactive calculators, and check out the links to other resources--take the whole tour!

Prudential Retirement's Manager of Managers funds are offered through separate accounts available under group annuity contracts issued by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT, a Prudential Financial company.

Securities products and services are offered by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, 14th Floor, Newark, NJ 07102-4077. PIMS is a Prudential Financial company.

Prudential Retirement and Prudential Financial are registered service marks of The Prudential Insurance Company of America, Newark, NJ and its affiliates. Prudential Retirement is a Prudential Financial business.

INST-20060915-A021381

RS.FO.201.0906

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