Mutual of America 2018 Annual Report – Living in Retirement

Realizing the Dream

People often view retirement as a destination. In fact, it is simply the first in a series of transitions that you’ll cross as you journey through the rest of your life. For early retirees Sandy and Fred Osborn, preparing for those milestones has been a key to avoiding some of the potholes that can throw a plan off course. Here is their story.

Sandy and Fred Osborn joke that they were each born with the “saving gene.” Frugality may be in their blood — both are children of farm workers — but their lives have been rich in all the ways that matter. They have a happy marriage, own a home and enjoy full lives in the San Francisco Bay Area. Along the way, their disciplined approach to saving enabled them to retire in their 50s.

“Early on, Fred and I decided to pay ourselves first and sock away as much as we could for the future,” said Sandy. “We started small, but our enthusiasm for saving increased as we watched our retirement accounts grow with time and compounding.”

Having access to a comprehensive 401(k) plan and working with Mutual of America’s San Francisco Regional Office, headed by Abbas Moloo, helped.

“When I worked at Consumer Credit Counseling Services of San Francisco, our plan was provided by Mutual of America,” Sandy said. “What I remember most was how Abbas and his team would regularly come out to meet with us. I was always a good saver, but what I learned in those meetings helped me to grow as an investor and to truly embrace the importance of having a long-term plan for retirement.”

3 Quick Tips

For Savers Living in Retirement

  1. Make sure you have enough income to meet your needs.

  2. Review the asset allocation strategy for your portfolio to ensure it reflects your new stage of life.

  3. If possible, pay off your debt. Not having a mortgage, car payment or credit card balance will help your income stretch further.

While Sandy was maximizing her 401(k) plan, Fred, who had access to a pension plan where he worked, was also setting aside money in an Individual Retirement Account to boost their savings. “I learned a lot about investing from the information Sandy brought home and from the online tools and resources Mutual of America makes available on its website.”

Specifically, Sandy and Fred leveraged Mutual of America’s Retirement Nest Egg calculator, which they used to quantify the amount of savings they needed to fund the lifestyle they envisioned for retirement. “We also used the Retirement Readiness calculator to determine whether, given Fred’s pension and IRA and my 401(k) savings, we were on track to reaching our retirement goals.”

“We’re hoping to buy an RV and travel across the country. Mutual of America has been a big part of helping us to make our dreams happen.”

As important as these tools have been to the Osborns’ success, they credit Zohreh Ghaissari, Mutual of America Vice President and Regional Financial Consultant, and the services she provided, for helping them gain the confidence to retire early.

“Fred exited the workforce first, so that we could test to see if we could live solely on his pension and allow my retirement savings to keep growing,” said Sandy. “Once we saw that the financial projections that Zohreh helped us to develop were sound, I stopped working. As we’ve become more comfortable with our plan, Fred and I have begun to move toward the next phase of our retirement. We’re hoping to buy an RV and travel across the country. Mutual of America has been a big part of helping us to make our dreams happen.”

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.