MORE CHOICES TO HELP MEET YOUR RETIREMENT SAVINGS CHALLENGES ?· MEET YOUR RETIREMENT SAVINGS CHALLENGES…
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MORE CHOICES TO HELP MEET YOUR RETIREMENT SAVINGS CHALLENGESSelf-Directed Brokerage
More choice, more opportunities to meet your retirement challengesReaching your retirement goals requires that you have a plan that can help you overcome any challenges that stand in the way of getting you there. Through your retirement plan, you have an additional opportunity: the ability to transfer a portion of your retirement assets to a Self-Directed Brokerage account where you will have access to a greatly expanded investment selection--thousands of stocks traded on U.S. stock exchanges and hundreds of mutual funds and individual bonds.
Is a Self-Directed Brokerage account right for you?If you are comfortable with adding a potentially higher level of risk to your retirement plan assetswith the potential for higher rewardthen Prudential Retirements Self-Directed Brokerage account may be right for you. Before you open an account, youll want to consider these pros and cons:
You will have a broad array of investment choices.Self-Directed Brokerage gives you the opportunity to invest a portion of your retirement assets in the stocks traded on U.S. stock exchanges, including the New York Stock Exchange, NASDAQ, and the American Stock Exchange. You may also invest in a broad selection of mutual funds and individual bonds. (Investment restrictions may apply.)
You may be exposed to greater volatility.Investments that offer the greatest potential reward are also subject to greater risk and volatility.
You will pay additional fees.Prudential Retirement will deduct an annual account fee from your core retirement savings plan account, and a transaction fee will be charged for each purchase or sale of securities. You should carefully consider whether it makes sense to incur the additional costs.
Monitoring your accountInformation about your Self-Directed Brokerage account will be available through a number of sources:
Brokerage statements You will receive a separate monthly brokerage account statement that provides general account information, including account balance, security detail, trading activity and other account activity. Your core retirement plan quarterly account statement will include your Self-Directed Brokerage account balance.
Internet access You can access your account information online through the Prudential participant website. Click the Self-Directed Brokerage account link to view your brokerage account information, up-to-date financial news, market overviews, real-time quotes, a trading facility, and more.
Taking withdrawalsYou cannot take a plan withdrawal directly from your Self-Directed Brokerage account; however, you can transfer cash to your core account. Permissible withdrawals from your account will then be subject to normal withdrawal processes and penalties as described by your plans rules.
Loans (if available)You cannot take a loan from your Self-Directed Brokerage account. Loan repayments to your core account, if applicable, cannot be made through your brokerage account. However, the assets in your brokerage account are included when calculating the maximum amount available for a loan.
The next move is yoursBy including the Self-Directed Brokerage feature in your plan, your employer is providing you with additional investment choice to build on your retirement strategy. If you believe Self-Directed Brokerage can play a role in your investment strategy, complete and return the enclosed account application. If you have any questions, just speak with a Retirement Counselor by calling the toll-free number listed in this packet.
THE PROS AND CONS OF SELF-DIRECTED BROKERAGE
Pros Greater investment choice and flexibility
Opportunity to invest in individual securities
More control over the types of investments in your retirement account
Cons Additional investment risk
Time required to research, select and monitor your investments
OPENING AN ACCOUNT
If you have decided to open an account, follow these simple steps:
Step 1Complete and return the enclosed account application.
Step 2Review the new account information that will be mailed to you confirming your account details.
Step 3Once you have established your brokerage account, you are ready to begin building your brokerage portfolio. Call the toll-free number in this packet to transfer funds into your Self-Directed Brokerage account. Representatives are available Monday through Friday from 8 a.m. to 9 p.m. ET.
Funds must be available in your account before placing a trade. Transfers from the core account, as well as dividends, interest and the proceeds gained from the sale of securities, will be automatically invested in a money market fund* until you provide further investment instructions. Please review your prospectus (where applicable), which contains complete information, including charges and expenses. Dividend reinvestment is available.
Please review the specific account highlights of your plan for any transfer restrictions or limitations that may apply.
* An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency. Although money market funds seek to preserve the value of your investment at $1 per share, it is possible to lose principal by investing in the fund.
Your investment optionsPermitted investmentsYour plan sponsor may restrict or limit any of these investment options. See the enclosed plan highlights for your plans specific options and fees. Please contact your plan sponsor for further details.
Equities traded on U.S. stock exchanges (subject to certain restrictions)
Bonds or other debt instruments
Certificates of Deposit (CDs), unit investment trusts (UITs)
Mutual funds from many of the best-known fund families
Ask a Retirement Counselor for a complete listing of funds. For more detailed information about the mutual funds available, please call 1-877-778-2100 for a free prospectus.
Read the prospectus (where applicable) carefully before investing.
Restricted investmentsThese investments are generally not available for purchase in your Prudential Retirement Self-Directed Brokerage account:
Margin purchases or short sales
Options (covered call writing may be offered under the terms of your plan)
Mortgages, collectibles or tangible assets
Investments available in your core retirement program
Employer stock (if applicable)
Investments restricted by your plan sponsor
Equities valued at less than $5 per share at the time of purchase.
THE RISK-REWARD SPECTRUM
This illustration shows the general risk and reward for each asset class.
This illustration is based solely on the characteristics of these general investment categories. Risks (potential for loss of principal value) associated with the investment options can vary.
Money Market/Stable Value
Money market instruments (i.e., CDs, T-bills) Guaranteed accounts Stable value accounts Short-term high-grade bonds
Government intermediate bonds Government long-term bonds Corporate intermediate bonds Corporate long-term bonds
Domestic large-cap stocks Domestic small-cap stocks Domestic mid-cap stocks International stocks
Potentially lower risk and reward Potentially higher risk and reward
0156337-00002-00 RSBR477 06/2011 Printed 06/2011
Investors should consider the funds investment objectives, risks, charges and expenses before investing. The prospectus, and if available the summary prospectus, contain complete information about the investment options available through your plan. Please call 1-877-778-2100 for a free prospectus and if available, a summary prospectus that contain this and other information about our mutual funds. You should read the prospectus and the summary prospectus, if available carefully before investing. It is possible to lose money when investing in securities.
Retirement Counselors are registered representatives of PIMS.
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, the Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
MUFG UNION BANK, N.A. 401(K) PLAN PLAN NUMBER 720441
Your Self-Directed Brokerage Account HighlightsPrudentials Self-Directed Brokerage Account provides participants significantly expanded investment choices in addition to the core investments in the Plan. The following guidelines provide you with the details associated with opening and maintaining a Prudential Self-Directed Brokerage Account.
If you have any questions regarding your Core Account or your eligibility for the Self-Directed Brokerage Account, please call 1-877-PRU-2100 (1-877-778-2100) to speak with a Prudential Participant Service Representative, Monday through Friday, 5:00 AM to 6:00 PM, PT. Once your brokerage account has been established you will be able to access it online via the Prudential Online Retirement Center.
Eligibility Requirements $5,000 minimum account balance to open a Self-Directed Brokerage Account Initial transfer to the Self-Directed Brokerage Account of at least $2,500 or more Subsequent transfers to your Self-Directed Brokerage Account of at least $1,000 or m