NAVIGATING UNCHARTERED WATERS: HOW TO STAY FINANCIALLY AFLOAT IN A SEA OF FISCAL UNCERTAINTY

There’s no doubt about it, these are challenging times in which we live. If you’ve lost sleep in recent months due to stress about paying for college, having enough money for retirement, or even keeping the roof over your head, you are not alone. With so many components outside of your control, it’s easy to feel adrift without a lifeboat. And since many experts say the economy’s instability is the one thing we can count on for the indefinite future, taking action now to help strengthen your financial position is essential. Five steps you may want to consider taking immediately:

1. Don’t panic and pull out. Most financial experts agree now is not the time to simply stop investing or cease contributions to your retirement plans. That’s especially true if your target retirement date is ten or more years away. Revisit your portfolio, your risk tolerance and how to reallocate funds if necessary to minimize losses and maximize gains.

2. Pay off unsecured debt. Now is the time to pay down credit card and student loan debt. Trim your budget to make extra payments. Set a target goal date to become debt free once and for all.

3. Save, Save, Save. If the worst happens and you lose your job, do you have enough savings to carry you through? If not, start socking away at least 10% of your income if at all possible. In this economy, it could take six months or more to find a comparable new job, so six to eight month’s living expenses should be your target goal.

4. Review your insurance coverage. Now is the time to review, update or purchase insurance policies to make sure you are adequately covered. If you have neglected to purchase life insurance or disability insurance, it’s time to explore the benefits of these important financial safeguards.

5. Inquire about annuities. With many retirement account balances taking a tumble in recent months, searching out ways to establish a secure guaranteed stream of income during retirement is important. Variable annuities offer a wide range of professionally managed investment options, guaranteed death benefits, and a variety of payout options including guaranteed income for life.

Surviving the recent economic storm is difficult, but not impossible. It will take discipline, planning, and yes, even courage. But the good news is, taking positive, proactive steps now can help put you back in the helm and keep your financial dreams afloat for years to come.

Investors should consider the contract and the underlying portfolios’ investment objectives, risks, charges and expenses carefully before investing. This and other important information is contained in the prospectuses, which can be obtained from your financial professional. Please read the prospectuses carefully before investing.

Variable annuities are appropriate for long-term investing and designed for retirement purposes. Investment return and principal value of an investment will fluctuate so that an investor’s unit values, when redeemed, may be worth more or less than their original cost. Withdrawals or surrenders may be subject to contingent deferred sales charges (CDSC). Withdrawals and distributions of taxable amounts are subject to ordinary income tax and, if made prior to age 59 ½, may be subject to an additional 10% federal income tax penalty. Withdrawals, for tax purposes, are deemed to be gains out first. Withdrawals can reduce the living benefit, death benefit and account value.

Optional benefits have certain investment, holding period, liquidity and withdrawal limitations and restrictions; you should see the prospectus for more information.

Our products contain exclusions, limitations, reductions of benefits and terms for keeping them in force. Your licensed financial professional can provide you with costs and complete details.

Insurance is issued by The Prudential Insurance Company of America and its affiliates, Newark, NJ. Variable annuities are issued by Pruco Life Insurance Company (in New York, by Pruco Life Insurance Company of New Jersey), Newark, NJ and distributed by Prudential Annuities Distributors, Inc., Shelton, CT. All are Prudential Financial companies and each is solely responsible for its own financial condition and contractual obligations.

Variable annuities offered by Prudential Financial Companies are available at an annual cost of 0.65% to 1.65% for mortality expense & administration fees, with an additional fee related to the professional investment options. The fees will vary depending on the underlying annuity and investment options selected.

Payments of guaranteed principal and income, as well as living and death benefit guarantees are contingent upon the claims-paying ability of the issuing company. Guarantees do not apply to the investment performance or safety of the underlying subaccounts in the variable annuity. Optional living and death benefits are available for an additional fee and may not be available in all states and may not be elected in conjunction with certain optional benefits. The fees are in addition to fees and charges associated with the basic annuity. See the prospectus for complete details.

0217612-00001-00, Ed 09/08/2014, Exp 02/28/2016

Provided courtesy of Prudential, Newark, NJ. For more information, contact Mark Gabriel, a Financial Professional Associate with The Prudential Insurance Company of America’s North Western Hills Financial Group agency located in Warren, NJ. He can be reached at and (908)731-4074.