Saving For Retirement

Saving For Retirement

Your goal is simple: Maximize your savings so that you can enjoy a comfortable retirement. The sooner you start, the greater the likelihood that you'll achieve the retirement lifestyle you want. Even if your budget is your top concern, and you need to start small - start.

Where to save

People are enjoying longer and longer retirements, so you need to ensure you'll have enough to enjoy your future. To sustain your lifestyle, many experts believe you'll need 75-89% of your present income.1 Saving in taxed deferred vehicles is a smart place to start because your savings can usually grow faster if you don’t pay tax as the money is growing. Consider the benefits of the following savings investment vehicles:

401(k)

A 401(k) plan is a tax-deferred investment vehicle specifically designed for retirement. You only pay taxes on contributions and earnings when the money is withdrawn. Your employer's specific 401(k) plan will allow you to contribute up to a certain percentage of your before-tax pay; as of 2008, the maximum dollar amount the law allows an employee to contribute from before-tax pay is $15,500.

403(b)

A 403(b) plan is only available to employees of certain non-profit tax-exempt organizations: 501c(3) Corps, including colleges, universities, schools and hospitals. As with a 401(k) plan, all contributions and earnings to your 403(b) are tax deferred and many employers provide matching contributions to your 403(b) account which can range from 0% to 100% of your contributions.

Individual Retirement Account (IRA)

IRAs are one of the easiest, most convenient ways to meet your retirement goals. Like employer-sponsored retirement savings accounts such as 401(k)s, the money you save in an IRA grows tax-deferred* and becomes available to you without federal tax penalties when you turn 59½.

Deferred Annuity

Deferred annuities can be a great choice for building a tax-deferred retirement nest egg-especially if you want to save more than you might with IRAs and 401(k) plans. With a deferred annuity, you have the option to convert your annuity balance into an income stream which can generate income for the rest of your life.

Types of investments

Whether you save inside a tax deferred account of additionally outside of one, there are many different types of products that you can use to invest your savings. Here are a few.

Mutual Funds

Mutual funds pool the money of many people and invest it in a portfolio of stocks, bonds, and/or money market instruments to meet specific investment objectives. As an investor, you receive shares of the mutual fund in exchange for your investment dollars.

CD's

You can potentially increase your savings without risk to your principal with deposit accounts like the ones offered by MetLife Bank:

  • High-yield savings accounts
  • Money market deposit accounts
  • CDs

Banking products and services, offered by MetLife Bank®, NA, Member FDIC, a MetLife company.

Investment products are:

  • Not FDIC/NCUSIF Insured ·Not a Deposit Product ·May Lose Value ·No Bank Guarantee
  • Not a Condition of Any Bank Service ·No Guarantee of Insurance Underwriter Performance

Variable Annuities

With more growth potential in return for a higher level of risk, variable annuities can offer investment choice and flexibility through a variety of professionally-managed investment portfolios. These portfolios generally include stock and bond portfolios, ranging from conservative to aggressive risk levels. The value of a variable annuity will fluctuate, depending on how the investment options perform.

Retirement safeguards

Before investing, carefully consider the investment objectives, risks, charges and expenses of the mutual fund and/or variable annuity as well as their investment options. This and other information is contained in the prospectus, which you should read carefully before investing. Prospectuses are available from your registered representative. Mutual funds and/or variable annuities are subject to market risk. Your principal value may decline.

MetLife's Disability Income Insurance and Life Insurance products offer guarantees**benefits that can help you protect your savings and future income.

If you were unable to work due to an unexpected illness or accident, then disability income insurance can be a way to replace a portion of your income and help you continue to save for retirement while maintaining your standard of living.

Having a life insurance policy in place can help provide guaranteed* income for your loved ones and lessen their financial burden when you're no longer here. The money can help with everything from mortgage payments to college tuition.