Mutual of America 2018 Annual Report – Nearing Retirement

Fine-Tuning the Vision

As retirement begins to come into view, it’s time to put saving for retirement into high gear and make any needed course adjustments to ensure a smooth transition into this next phase of your journey. To see how you can fine-tune your vision as you approach retirement, consider Steve Sutter’s story.

Steve Sutter is the third-generation owner of Sarasota, Florida-based Sutter Roofing, one of the oldest and largest roofing and sheet metal contractors in the U.S. To ensure the continued success of the business his grandfather started in 1902, Steve has been preparing for retirement by slowly transferring the reins to his two sons, Brad and Doug.

At the same time, Steve also has been focusing on creating a roadmap to help himself prepare financially for the inevitable twists and turns that lie ahead. One move that he made recently was to roll over retirement savings that he accumulated with another retirement services provider into his account in Sutter Roofing’s retirement plan with Mutual of America.

“Mutual of America has been our 401(k) provider since we transitioned from another provider in 2014,” said Steve. “We’ve been tremendously pleased with the performance of the investment funds they offer, including their target-date funds, so I didn’t hesitate to move my money into the plan. Having more of my retirement savings in one place will also make it easier for me to manage my assets, especially in a few years, when I’ll need to start taking required minimum distributions from my retirement accounts.”

The addition of Steve’s assets to his company’s plan provided another key benefit: Sutter Roofing’s 401(k) now has sufficient assets in their retirement plan at Mutual of America to qualify for lower asset-based charges on Mutual of America’s Separate Account investment funds, which translates into cost savings for every participant in the plan with money allocated to the investments.

3 Quick Tips

For Savers Nearing Retirement

  1. Sharpen your vision for retirement and calculate your retirement income needs.

  2. Take advantage of catch-up contributions to boost your savings.

  3. Develop a Social Security and retirement-date strategy.

Steve recognizes that the transition into retirement takes careful preparation, which is one more reason that he’s pleased to have Mutual of America’s Tampa Bay Regional Office working with him. “They are incredibly responsive. Whenever I have a question or an issue, I can pick up the phone, call Participant Account Executive Paul Schobert, and get immediate help.”

According to Steve, that client-first approach helped to win over some skeptical employees who felt that a new provider would not understand their needs. “Forty percent of our employees are Latino. Mutual of America comes to our enrollment and participant education meetings with knowledgeable individuals who are bilingual and culturally aware. The one-on-one attention they provide helped to make the onboarding process especially smooth. More importantly, it has created new excitement and appreciation for our retirement plan across all segments of our workforce.”

“Having more of my retirement savings in one place will make it easier for me to manage my assets in retirement.”

As Steve reflects on his career and the connections he’s made along the way, he’ll tell you that it was his problem-solving approach to business and the trust that he built with customers that played a big factor in his success. He sees the same can-do approach in how Mutual of America does business.

“Paul attends our monthly team meetings. His steady presence has gone a long way to building confidence in Mutual of America and the tools and resources they provide. Employees who might have ignored our retirement plan in the past now actively participate, recognizing that the plan offers something for everyone, no matter where they come from or what stage of life they’re in.”

You should consider the investment objectives, risks, and charges and expenses of the variable annuity contract and the underlying investment funds carefully before investing. This and other information is contained in the contract prospectus or brochure and underlying funds prospectuses and summary prospectuses, which can be obtained by calling 1-866-954-4321 or by visiting mutualofamerica.com

Mutual of America’s group and individual retirement products are variable annuity contracts and are suitable for long-term investing, particularly for retirement savings. The value of a variable annuity contract will fluctuate depending on the performance of the Separate Account investment funds you choose. Upon redemption, you could receive more or less than the principal amount invested. A variable annuity contract provides no additional tax-deferred treatment of benefits beyond the treatment provided to any qualified retirement plan or IRA by applicable tax law. You should consider a variable annuity contract’s other features before making a decision.

There is a contract fee (unless you elect to receive documents electronically), and investments in the Separate Account investment funds are subject to Separate Account charges and underlying funds investment management fees and expenses. Withdrawals of the tax-deferred interest and any investment earnings are subject to income tax at your ordinary income tax rate at the time of withdrawal, and if made prior to age 59½, a 10% federal tax penalty.

Statements made in this interactive annual report by clients of Mutual of America are not paid testimonials. These testimonials may not be representative of the experience of other clients and are not indicative of future performance or success.

Past performance is no guarantee of future results.

The target date set forth in each Retirement Fund's name is the approximate date that the fund expects investors to retire and begin withdrawing their account balance. The value of a Retirement Fund is not guaranteed at any time, including at and after the target date. There is no guarantee that a Retirement Fund will correctly predict market or economic conditions, and as with other mutual fund investments, you could lose money. In addition to a retirement date, individuals should consider their risk tolerance, time horizon, personal circumstances and complete financial situation before investing.

Before making a transfer, you should review the accounts you have with other providers to determine the fees and expenses you currently pay and whether there are any surrender charges that may result and to ensure that it is in your best interest to transfer your other accounts to your current plan.

There is no separate fee for Mutual of America’s Financial Consulting Services, although there are minimum account balance requirements. The information provided by Mutual of America’s Financial Consultants is educational in nature and is not intended to serve as a primary basis for investment decisions. Mutual of America’s Financial Consulting Services do not create an investment advisory or a fiduciary relationship (including under ERISA) between you or your employees and Mutual of America. Mutual of America and its Financial Consultants do not provide tax or legal advice. Consult your personal tax adviser or attorney for matters involving taxation and tax planning and your attorney for matters involving personal trusts and estate planning.