• Here's Why

    Finding saving opportunities can be as simple as making small changes to your spending habits. Consider skipping that monthly $12 movie and watching TV instead. Investing that money in your retirement plan each month has the potential to add up to an extra $30,299 by retirement age.

    Assumes: 30-year-old contributing $12 monthly to a qualified retirement plan with an average annual return of 8% (rate of return will vary) for a 37-year period. Example is hypothetical and does not represent the performance of any particular investment vehicle. (Source: MassMutual.com/SmallChange, 2014)

    I don't make enough money right now to increase my retirement plan contribution. Fiction! Fact or Fiction?
    Here's Why
  • Here's Why

    Not saving as much as you can right now may mean that your money isn't working as hard as it could be for you. It also might mean that you will need to save a lot more later. Take a balanced approach – pay down debt while saving for both an emergency and your future.

    At my age, I should focus on other financial priorities before saving for retirement. Fiction! Fact or Fiction?
    Here's Why
  • Here's Why

    If the average 40-year-old saved an additional $10 each week, it has the potential to add up to $45,664 in their retirement account by age 67.

    Based on: $0 starting balance; current age of 40; assumes regular deferrals with an average annual return of 8% (rate of return will vary); age of retirement: 67. Example is hypothetical and does not represent the performance of any particular investment vehicle. Source: Bankrate.com, 401(k) Calculator, 2014

    Even a small increase in my retirement account contribution will make a difference when I retire. Fact! Fact or Fiction?
    Here's Why
  • Here's Why

    There is no one-size-fits-all rule when it comes to how much you should save for retirement. There are many factors to consider, including, but not limited to, age, salary, existing savings balance and the lifestyle you want during retirement. For some, saving less is perfectly acceptable while others may need to save substantially more than 10% for a comfortable retirement. An online calculator may help you determine a strategy that fits your needs.

    Saving 10% of my income toward retirement is enough. Fiction! Fact or Fiction?
    Here's Why
  • Here's Why

    According to the Social Security Administration:

    • A man reaching age 65 today can expect to live, on average, until age 84.3.
    • A woman turning age 65 today can expect to live, on average, until age 86.6.

    About one of every four 65-year-olds today will live past age 90, and one of 10 will live past age 95.

    (Source: Social Security Administration, January 2015)

    My retirement savings will need to provide an income for potentially 15-20 years. Fact! Fact or Fiction?
    Here's Why
  • Here's Why

    This provision is called the “catch-up” contribution. In 2015, some retirement plans allow individuals age 50 or older the ability to contribute an additonal $6,000 above the allowable limit of $18,000 to make up for not saving enough in prior years.

    Individuals age 50 and over can make additional pre-tax contributions above the allowable limits to a qualified retirement plan. Fact! Fact or Fiction?
    Here's Why
  • Here's Why

    The earlier you start making contributions, the better. More time allows more opportunity for compound earnings (when your contributions and investment earnings grow together). Starting early also helps broaden your risk horizon, giving you more opportunity to ride out potential market fluctuations.

    I have plenty of time to plan for retirement. Fiction! Fact or Fiction?
    Here's Why
  • Here's Why

    An average 25-year-old who saves 5% of his or her $35,000 annual income ($34 per week) in a qualified retirement plan has the potential to accumulate $266,679 by retirement*. Waiting just one year could cost this person $15,282 – or more if his or her employer offered a contribution matching program.

    *Assumes retirement age of 67 and an average annual return of 8% (rate of return will vary). (Source: www.massmutual.com/costofwaiting, 2014)

    Waiting a few years to save for retirement won't make that much of a difference. Fiction! Fact or Fiction?
    Here's Why
  • Here's Why

    By not enrolling in your retirement savings plan, you are missing out on valuable tax incentives that can help you save for your future. With limited resources, it is smart to take a balanced approach to your finances. Remember, you can borrow for college or a home, but you can't take a loan to pay for retirement.

    Retirement planning can wait.  I need to focus on saving for a home and/or my kid's college fund. Fiction! Fact or Fiction?
    Here's Why
  • Here's Why

    The money you contribute to your retirement plan is always yours. If you change jobs, you have the option to roll your savings into a qualified retirement plan with your new employer or into an IRA with your preferred financial institution.

    Signing up for a retirement plan with my current employer means my money will be left behind if I change jobs in the future. Fiction! Fact or Fiction?
    Here's Why
  • Here's Why

    Enrolling in a qualified retirement plan can offer tax incentives that might potentially lower your federal taxable income today. It may also offer you a broader investment selection and potential for greater rates of return, compared to a typical bank savings account. If you are over 50, you may also be able to make catch-up contributions and save above the annual allowable limit.

    Please consider an investment option's objectives, risks, fees and expenses carefully before investing. All investments options have the potential to lose value. Information about investment options can be found in the applicable prospectuses or summary prospectuses, if any, or in fact sheets for the investment options, available from your plan sponsor or the participant website.

    It is never too late to start saving for retirement. Fact! Fact or Fiction?
    Here's Why
  • Here's Why

    Social Security was never meant to serve as a sole source of retirement income. It was originally established as a safety net to help augment your personal retirement savings. In 2014, the average Social Security monthly benefit was only $1,294.

    (Social Security Administration, December 2014)

    Social Security will provide me with enough income during retirement. Fiction! Fact or Fiction?
    Here's Why
  • Here's Why

    The average person may have 11.3 jobs over the course of their career*. That's a lot of potential retirement accounts! Having more than one retirement plan can be confusing and time-consuming to manage. Consolidating your accounts may help simplify your planning and make your strategy more effective. Consolidation may not be right for everyone - individual situations will vary. Consider seeking consultation from your own independent financial and or tax advisor before consolidating.

    (* U.S. Bureau of Labor Statistics, 2012)

    Consolidating your retirement accounts from previous employers can help create a more effective plan. Fact! Fact or Fiction?
    Here's Why
  • Here's Why

    If you take a payout now from your previous retirement plan, rather than roll it into your new employer plan, you could lose 25-40% of your savings to taxes and penalties.

    Assumes early withdrawal penalty, federal, and possible state taxes.

    When changing employers, cashing out a previous retirement account is more beneficial than rolling it over. Fiction! Fact or Fiction?
    Here's Why
  • Here's Why

    If you have multiple accounts, you may have to deal with multiple statements, contacts and websites to manage your overall retirement plan. More accounts also means the potential for more fees. Consolidation may not be right for everyone - individual situations will vary. Consider seeking consultation from your own independent financial and or tax advisor before consolidating.

    Consolidating multiple retirement accounts may help me save time and money. Fact! Fact or Fiction?
    Here's Why
  • Here's Why

    Multiple retirement accounts might offer you more investment options, but they can also result in duplication. This may compromise your overall investment strategy.

    Diversification does not assure a profit and does not protect against loss in a declining market.

    Having multiple accounts is a great way to diversify my investments.  Fiction! Fact or Fiction?
    Here's Why
  • Here's Why

    Consolidating all your assets may make it easier to see the big picture and better understand if you are on target for retirement.

    As you get closer to retirement, consolidating multiple retirement accounts can be beneficial. Fact! Fact or Fiction?
    Here's Why
  • Here's Why

    At MassMutual, the consolidation process is surprisingly simple. If your retirement plan allows, we can help you consolidate retirement savings from IRAs and previous employer plans, like a 403(b), 457 or 401(k), into your current plan.

    Consolidating retirement accounts is a lot of work. Fiction! Fact or Fiction?
    Here's Why
  • Here's Why

    Age can have a significant impact on choosing your investment strategy. The younger you are, the more time you have to ride out market fluctuations and rebound from negative performance years.

    Asset allocation is the act of balancing risk and reward by apportioning a portfolio's assets according to an individual's financial goals, risk tolerance, and investment horizon. Diversification is a technique that mixes a wide variety of investments within a portfolio. Neither asset allocation nor diversification assure a profit and do not protect against loss in a declining market. There are risks involved with investing, including possible loss of principal.

    Age doesn't play a role in determining your allocation strategy. Fiction! Fact or Fiction?
    Here's Why
  • Here's Why

    If you self-manage your portfolio, keeping an eye on your investment mix is important for maintaining your strategy. Market fluctuations can adversely affect how your assets are diversified – potentially exposing you to more risk than you are comfortable with.

    Asset allocation is the act of balancing risk and reward by apportioning a portfolio's assets according to an individual's financial goals, risk tolerance, and investment horizon. Diversification is a technique that mixes a wide variety of investments within a portfolio. Neither asset allocation nor diversification assure a profit and do not protect against loss in a declining market. There are risks involved with investing, including possible loss of principal.

    I should check my retirement plan investment mix at least once each year. Fact! Fact or Fiction?
    Here's Why
  • Here's Why

    According to the study, “Determinants of Portfolio Performance,” market timing only contributes about 1.8% to your overall portfolio return. The amount you invest in each individual investment – your asset allocation – determines 91.5% of your overall return. Investment selection makes up approximately 4.6%, and other factors equate to 2.1%.

    Source: "Determinants of Portfolio Performance," by Gary P. Brinson, L. Randolph Hood, and Gilbert L. Beebower. Updated in Financial Analysts Journal, May/June 1991.

    Asset allocation is the act of balancing risk and reward by apportioning a portfolio's assets according to an individual's financial goals, risk tolerance, and investment horizon. Diversification is a technique that mixes a wide variety of investments within a portfolio. Neither asset allocation nor diversification assure a profit and do not protect against loss in a declining market. There are risks involved with investing, including possible loss of principal.

    Timing the market is the key to maximizing your investment return. Fiction! Fact or Fiction?
    Here's Why
  • Here's Why

    Target date retirement funds (TDFs) may be an option if you don't want to actively manage your retirement savings. TDFs offer a long-term investment strategy based on holding a mix of investments that automatically becomes more conservative as you get closer to your target retirement date. There are considerable differences among TDFs offered by different providers, even among TDFs with the same target date. For example, TDFs may have different investment strategies, glide paths and investment-related fees.

    Target retirement date (lifecycle) investment options are designed for participants who plan to withdraw the value of their accounts gradually after retirement. Each of these options follows its own asset allocation path (“glide path”) to progressively reduce its equity exposure and become more conservative over time. Options may not reach their most conservative allocation until after their target date. Others may reach their most conservative allocation in their target date year. Investors should consider their own personal risk tolerance, circumstances and financial situation. These options should not be selected solely on a single factor such as age or retirement date. Please consult the prospectus (if applicable) pertaining to the options to determine if their glide path is consistent with your long-term financial plan. Target retirement date investment options’ stated asset allocation may be subject to change. Investments in these options are not guaranteed and you may experience losses, including losses near, at, or after the target date. Additionally, there is no guarantee that the options will provide adequate income at and through retirement.

    Target date retirement funds automatically adjust to gradually become more conservative as retirement gets closer. Fact! Fact or Fiction?
    Here's Why
  • Here's Why

    If you are near retirement age or choose to remain invested during retirement, it is important to protect your savings from unpredictable market fluctuations as best as you can. Considering a more conservative approach might be an ideal strategy. Understanding your risk tolerance and consulting a financial professional may help you determine the most appropriate strategy.

    Asset allocation is the act of balancing risk and reward by apportioning a portfolio's assets according to an individual's financial goals, risk tolerance, and investment horizon. Diversification is a technique that mixes a wide variety of investments within a portfolio. Neither asset allocation nor diversification assure a profit and do not protect against loss in a declining market. There are risks involved with investing, including possible loss of principal.

    As you get closer to retirement, you may want to consider a more conservative allocation strategy. Fact! Fact or Fiction?
    Here's Why
  • Here's Why

    Everyone can benefit from consulting with a financial professional. They can help you with budgeting, taxes, estate planning, debt consolidation and retirement planning. Advisors are compensated in various ways, including lump-sum fees, commissions or a fee based on a percentage of your assets. Make sure you understand all fees and costs before hiring any professional.

    Only very wealthy people consult financial planners. Fiction! Fact or Fiction?
    Here's Why
  • Here's Why

    Scary, right? According to the Social Security Administration, just over one in four of today's 20-year-olds will become disabled before they retire. Most people think disability is caused by an accident, but back injuries, cancer, heart disease and other illnesses cause the majority of long-term absences.

    (Social Security Administration Fact Sheet, December 2014)

    One in four of today's 20-year-olds will become disabled before retirement. Fact! Fact or Fiction?
    Here's Why
  • Here's Why

    Purchasing life insurance at an earlier age may be beneficial, because premiums are typically lower for younger, healthier individuals. Life insurance makes sense if you have – or plan to have – a spouse, domestic partner or children, especially if you are the head of household.

    (Millennials Too Young for Insurance, Wall Street Journal, 2013)

    I'm too young for life insurance. Fiction! Fact or Fiction?
    Here's Why
  • Here's Why

    According to the Social Security Administration, 65% of initial Social Security disability applications were denied in 2013. Furthermore, the average monthly benefit payment for approved claims was $1,146. Depending on your income, this may not be enough to cover your monthly expenses.

    (Social Security Administration Disabled Worker Beneficiary Data, December 2013)

    In the event of a long-term disability, Social Security will provide adequate income replacement for me and my family. Fiction! Fact or Fiction?
    Here's Why
  • Here's Why

    According to LIMRA research, both men and women are less likely to own insurance today than they were in 2004. Thirty-nine percent of men and 43% of women have no life insurance coverage.

    (LIMRA, June 2013)

    Nearly half of Americans do not have any life insurance coverage. Fact! Fact or Fiction?
    Here's Why
  • Here's Why

    Generally, group long-term disability coverage replaces 60% of your base salary if you become too sick or hurt to work. But if your employer pays the premium for the policy, the benefit is taxable, so you get 60% of income minus taxes. Also keep in mind that the 60% generally applies to base salary only. Bonuses and commissions are not usually included. In addition, the amount of income covered is generally capped at $5,000 per month, which may be less than 60% of your income.

    (Disability Insurance Myths, Insurance.com 2013)

    Group long-term disability plans typically replace only 60% of your base salary. Fact! Fact or Fiction?
    Here's Why
  • Here's Why

    Life insurance proceeds can help pay immediate expenses, including uncovered medical costs, funeral expenses, final estate settlement costs, taxes and other lump-sum obligations such as outstanding debts and mortgage balances. They can also help your family cover future financial obligations, like everyday living expenses, money for college or your spouse's retirement and more.

    (Source: LIMRA Life Insurance Fact Sheet, September 2014)

    Americans expect to use life insurance more than any other source of financial assets to help pay bills if the household's primary wage-earner dies. Fact! Fact or Fiction?
    Here's Why
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