FINRA Reference FR2014-0806-0056/E 12/05/14

. . . Estimate my retirement income needs. To determine how much

you should be investing in your retirement plan, you need to project

how much income you’ll need during retirement. Your fi nancial pro-

fessional can help you estimate your needs, set a retirement goal and

calculate how much you need to invest to help you reach that goal.

. . . Make the most of my company match (if offered). Employer

matching contributions are essentially “free” retirement money you

receive for contributing to your employer’s retirement plan. So

consider contributing at least enough to receive your employer’s full

match. But don’t assume that the amount needed to receive the

full match is the total amount you should be investing. Employers

often match only 3% or 4% of pay. You may need to contribute

more than that to meet your retirement needs.

. . . Not let investment market volatility or “hot tips” guide my investing. Your fi nancial professional can help you choose a mix of

stock and bond investments that will help you work toward your goal.

Once that mix is set, resist the temptation to sell stock investments

whenever the market declines. Also resist buying investments based

on “hot tips” from friends or the media, unless those investments are

suited to your needs.

. . . Work at getting out of debt. Every debt payment you eliminate by

paying off a credit card or loan gives you that much more money to

invest toward retirement and your other fi nancial goals.

. . . Periodically review my progress. Sit down with your fi nancial

professional at least annually to see how you are doing and whether

your retirement investment strategy needs any changes.

. . . Look forward to a comfortable retirement. Keeping these resolu-

tions will help you work toward having the retirement you want.

In 2015, I Resolve To . . .

A new year. A clean slate. Time to get

a fresh start on retirement investing

by making a few resolutions.

January/February 2015

Member

MDRTThe Premier Association of

Financial Professionals ®

Paul R. SobottaCLU®, ChFC®, CFP®Financial Professional/Pruco Securities Registered Representative

The Prudential Insurance Company of America205 Washington StreetArcadia, WI 54612

Parent/Agency Office Phone Number

Bus: (608) 323-7032Fax: (608) 323-7964paul.sobotta@prudential.comwww.prudential.com/us/p.sobotta

With my training and commitmentto my clients, I am confident I canprovide a level of personalized service unmatched by my peers. As your financial professional, I willwork diligently to help you achieveyour financial goals with appropriate insurance and financial

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Ideally, you will have signifi cant retirement assets when you’re

ready to retire. But don’t be misled by a big lump sum. That

money has to last throughout your retirement — and that

could be many years.

Not your grandparents’ retirementYou may be retired considerably longer than your grandparents

were. The average life expectancy for a newborn baby in the U.S.

at the beginning of the 20th century was 47.3 years.1 The pro-

jected average life expectancy for babies born in 2015 is 78.9

years,2 an increase of more than 30 years.

Good news and not-so-good newsA long retirement is great . . . as long as the money doesn’t

run out. Even a generous lump sum shrinks when you divide

it up into annual amounts. For example, without adjusting

for any investment earnings or income taxes payable, a

lump sum of $400,000 equals just $20,000 a year for

20 years. This very rough calculation highlights how

important it is to look at your invested assets in

terms of the annual amount you could potentially

withdraw from them.

Help from other placesYou will probably receive some

retirement income from

Social Security. But remem-

ber that Social Security was

never designed to cover the

bulk of your retirement

living expenses. It’s best to

view it as supplemental

income. And benefi t

formulas and age

requirements could

change in the future.

Pensions used to be a

second major source of

retirement income. How-

ever, things have

changed and pension plans are becoming fairly rare. Instead, the

benefi ts that many of today’s retirement plans provide are

determined by the amount you have in your account — that big

lump sum.

You can do itHow should you tackle building your

retirement assets? Estimate how much

income you’re going to need and set a

realistic goal. Choose a mix of investments

that can help you reach your goal, considering

the amount of time you have to invest and your

risk tolerance. And just keep working at it.

1 Health, United States, 2013, National

Center for Health Statistics

2 The 2012 Statistical

Abstract, U.S.

Census Bureau

Whether you look at New Year’s Day as a fresh start or as just another day, it’s as good a time as any to look at where you are

and where you’re headed. One place you’re probably headed, at some point, is retirement!

That Lump SumDon’t Let

Fool You

By the numbers:

THE RETIREMENT PICTURE IN AMERICA

Source: Gallup.com, April 201429546

6262Average age people actually retire:

6666Average age people expect to retire:

11%11%Percentage of 18- to 29-year-olds who expect to retire before age 55:

3%3%Percentage of 30- to 49-year-olds who expect to retire before age 55:

If someone handed you $1,000, what

would you do with it? Go shopping? Use it

for a down payment on a cruise? There are

plenty of tempting options. But the smart

thing to do when you have extra cash is to

use it to improve your fi nancial situation.

Whether it’s a lot or a little, here’s how to put your cash to work:

Got Cash? Do the Right Thing

Fake Filers Tax season is coming and

you know what that

means. Tax identity

thieves will start crawling

out of the woodwork.

What’s their scam? Using

stolen Social Security

numbers (SSNs) to make

fake W-2s that report

nonexistent income and

allow them to collect

bogus tax refunds.

SOSIf thieves get your SSN, they could fi le a fake return before

you fi le the real one. If that happens, when the IRS gets

your return, it will send a letter or notice saying a return has

already been fi led using your SSN. The IRS will also work

with you to get things straightened out.

FYIThe IRS will never contact you via e-mail or text message.

Any correspondence you receive about confi rming your

account information is bogus. Do not reply or click on any

links. The IRS asks taxpayers to forward any e-mails that

claim to be from the IRS to phishing@irs.gov.

It’s a No-brainerIt would be great if you could help your

kids pay for their college education and

put money away for your retirement at

the same time. But both require a lot of

money, and it’s diffi cult to juggle two big

fi nancial goals at the same time.

Send your money to college? If you’re like many parents, you’ve been

putting your kids’ needs fi rst since they

were born. So it’s diffi cult to put your

needs above theirs. However, you’re going

to need a lot more money to fund a

comfortable retirement than your kids will

need to pay for college.

When the time comes, your children can

apply for scholarships and fi nancial aid to

help pay their college bills. Plus, they have

their whole career in front of them —

decades of “earning” years — to pay off

any loans they may have to take.

Or tuck it away for retirement?Borrowing to pay for your retirement isn’t

really an option. If you hope to be able to

continue your current lifestyle after you

retire, your best plan is to keep investing

until you retire (and beyond). And if you

need another reason to put yourself fi rst,

think of it as a gift to your kids. Because if

you run out of money during retirement,

the tables will be turned and they could

end up having to help you.

Build up an emergency fund (ideally enough to

cover three to six months’ worth of expenses).

Pay down high interest rate credit card

balances and other consumer debt.

Invest in your future by putting the money

in your retirement account.

DEBT

2015/01 RET

Q. My employer has offered me an incentive to retire early. What should I consider before making a decision?

A. Retiring means giving up a steady income, having

fewer years to invest for retirement and losing out on any

matching contributions or profit sharing contributions

your employer might make to your retirement plan

account. And the earlier you tap your retirement invest-

ments, the greater the possibility you’ll run out of money

later on.

So before you act on an early retirement incentive,

thoroughly review the offer and ask for the details in

writing. You may want your financial professional and

legal advisor to look at the written offer with you. Also,

gather as much information as you can about your future

with the company. Accepting an early retirement incen-

tive may be to your advantage if there’s a possibility you

might lose your job in the not-too-distant future.

Q. Does doing a retirement income projection really help achieve retirement readiness?

A. Surveys from the LIMRA Secure Retirement Institute

(SRI)* and the Employee Benefit Research Institute

(EBRI)** seem to indicate yes. Ninety-three percent of

those surveyed by the SRI found income projections

somewhat or very helpful in preparing for retirement.

Similarly, 85% of EBRI respondents said it was somewhat

or very useful to hear an estimate of the monthly income

they might receive from their retirement plan. Among the

EBRI respondents whose illustrated income was lower

than expected, 90% found the estimates somewhat or

very helpful. Seeing an income projection also prompted

many of these people to consider taking action. Thirty-five

percent said they’d increase their retirement contribu-

tions, and 32% indicated they would work longer. For an

estimate of your potential retirement income, talk with

your financial professional.

* LIMRA Secure Retirement Institute Quarterly Retire-

ment Perspectives, Fourth Quarter 2013

** EBRI.org Notes, Vol. 35, No. 3, March 2014

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© DST, 2014

Prudential Financial, its affiliates, and its financial professionals do not offer legal or tax advice. Consult your legal or tax advisor about your situation. Life insurance and annuities are issued by The Prudential Insurance Company of America and its affiliates. Securities offered through Pruco Securities, LLC. Each is a Prudential Financial company in Newark, NJ that is solely responsible for its own financial condition and contractual obligations. Availability of other products varies by carrier and state. Policies and contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force. I can provide costs and details.

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