Investment Services

Retirement

College Savings

Unexpected Windfall

College Savings

Assisting your children or grandchildren with their college education is high on your list of priorities. As education costs continue to rise, early planning is critical. You also need to consider how to help protect their educational opportunities should something happen to you. With the right strategies, you can manage the costs.

• Education Savings Plan

  Build a solid financial foundation with a 529 College Savings Plan.There is no guaranteed rate of return. The risk with a 529 Plan is that the investments may not perform well enough to cover the rising cost of college as anticipated. Past performance does not guarantee future results. Non-qualified withdrawals may be subject to taxes and an additional 10% federal tax penalty on any earnings. Investing in a 529 plan outside of your domiciled state may deny you the opportunity to take advantage of favorable state tax treatment or incentives. The donor controls the account and there are no income limits to establish a 529 plan. Contributions are considered gift exclusions on a prorate basis for estate purposes. Educational IRAs have greater investment flexibility than a 529 Plan, but have income limitations. You should carefully consider the investment objectives, risks, charges and expenses of the underlying investments before investing. This and other information can be found in the offering statement, which can be obtained from your investment representative or by calling {insert appropriate phone number}. Please read it carefully before you invest or send money.

• Life Insurance

  Learn how whole life insurance can help supplement your college savings.*

• Mutual Funds

  Obtain professional management and asset diversification that can help you reach your educational savings goals.

Prefer to speak to someone that can help you develop the right financial strategy to meet your needs?

• Talk to a Financial Professional.

Shares of mutual funds and 529 plans are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

Before investing in any mutual fund or 529 plan investors should carefully consider a fund’s or 529 plans investment objectives, risks, charges and expenses. Fund prospectuses and plan documents contain this and other information about the funds.

Some States offer favorable tax treatment to their residents only if they invest in the state’s own 529 plan. You should consult your tax advisor.

Distributions under the policy (including cash dividends and partial/full surrenders) are not subject to taxation up to the amount paid into the policy (the cost basis). If the policy is a Modified Endowment Contract, policy loans and/or distributions are taxable to the extent of gain and are subject to a 10% tax penalty. Access to cash values through borrowing or partial surrenders can reduce the policy’s cash value and death benefit, increase the chance the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured. Loans and withdrawals will reduce death benefits and may impact the amount and frequency of future premium payments. If you take a policy loan or withdrawal, you may incur a significant income tax liability if the policy terminates before the death of the insured. When taking loans or withdrawals, your policy should be carefully monitored annually with your agent or other financial professionals. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. MassMutual, its employees, or representatives are not authorized to give legal or tax advice. Individuals are encouraged to seek advice from their own tax or legal counsel.

Unexpected Windfall

Your newfound wealth provides you with lots of options and an increased need for planning. Before you start spending, think about how you can minimize your taxes, fund your retirement and protect your loved ones. You have a opportunity to secure a more comfortable future with some solid planning today.

To get started, consider a few of the following options:

• Annuities

  Invest a portion of your windfall in a deferred annuity to help accumulate assets for the future. Designed to provide guaranteed income for life1, annuities also offer death benefit protection.If you are considering an annuity to fund a qualified plan such as an IRA, the tax deferral feature of the annuity offers no additional value, since IRAs are already afforded tax-deferred status. Under these circumstances, you should only consider buying an annuity if it makes sense because of the annuity’s features and other benefits, and are willing to incur any additional costs for these features and benefits. Evaluate the fees and expenses and consider whether the annuity’s features and other benefits will be right for you.

• Individual Retirement Accounts

  Help reach your retirement goals with the potential for years of tax-deferred growth.

• Long Term Care Insurance

  Plan for potential high costs associated with unforeseen long term care needs.

• Mutual Funds

  Invest in professionally managed funds to help reach your new financial goals.

• Trust Services

  Obtain professional fiduciary services for your ongoing finances, charitable giving, special needs or estate planning and analysis through a well-crafted trust.

Prefer to speak to someone that can help you develop the right financial strategy to meet your needs?

• Talk to a Financial Professional.

2 Trust services provided by the MassMutual Trust Company FSB, a wholly-owned subsidiary of MassMutual.

Shares of mutual funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

Before investing in any mutual fund, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses contain this and other information about the funds.

Related Information

• Net Worth Calculator
• Savings, Taxes & Inflation Calculator
• Evaluating Your Gross Estate
• Asset Protection at a Glance