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Prudential SmartSolution IRA

Plan your future with GoalMaker

-easily

Investing for Your Future

How should you invest your money?

Choosing your investment mix just might be the most important decision you make when it comes to preparing for a secure retirement. An investment strategy called asset allocation could help you build a better financial future.

How asset allocation works

Asset allocation is the process of spreading your money across different asset classes, such as stocks, bonds, and stable value investments. By dividing your portfolio among a variety of investment classes, you help manage risk because your portfolio no longer has to rely on any one single investment. Generally, when one kind of investment is performing well, another may not be performing as well. And, since you don't know which asset class will perform well next year or the year after, having a variety of asset classes may help you to better weather the rough spots in the market. Keep in mind, however, that asset allocation does not guarantee a profit or protect against a loss. Application of diversification does not ensure safety of principal or interest. It is possible to lose money by investing in securities.

For tools, articles, online courses, and educational resources, visit the Prudential Retirement Education and Planning (PREP) website at www.prudential.com/prep

Diversification's role in asset allocation

Diversification takes asset allocation one step further by investing in a variety of investments within each asset class (for example, Large Cap vs. Small Cap, Growth vs. Value). Diversification spreads risk around and helps even out the return of an asset class even though its individual investments may move up and down over time. Asset allocation and diversification work together to help manage risk.

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Understanding risk

All investments include risk

Understanding the different kinds and degrees of risk and their relation to an investment's potential return can help you make smarter investment decisions. The graphic below shows the relationship between risk and the potential for return. Generally, to reach your long-term financial goals, you should consider investing in an assortment of investment options that have good long-term growth potential, but are also within your "risk tolerance, or ability to weather " market ups and downs.

MARKET RISK

The possibility that investors will lose money due to the decline in the price of their investments.

INFLATION RISK

The possibility that the growth of an investment may not keep pace with the average rate of inflation. In this sense, seemingly safe investments such as stable value or fixed income can be risky over time if they do not outpace inflation.

Stability

Income

Growth

Global/International Stock Small-Cap Stock

Return

Mid-Cap Stock Large-Cap Stock Fixed Income Stable Value

Low risk/ low potential return

Risk

High risk/ high potential return

This is a simplified illustration of the relationship between investment risk and potential rate of return. There is no assurance that higher risk investments will provide greater returns over time. Past performance is not indicative of future performance.

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Stable Value

These investments combine safety of principal with liquidity and seek to produce rates of return which are superior over the long term.

Types of investments

Fixed Income

Fixed income investments invest in corporate and government bonds. They can go up or down in value each day, so they carry more risk than stable value investments, but also offer more opportunity for a potentially larger return.

Balanced

Retirement accounts typically offer investors a range of investment options that invest in many types of securities.*

Balanced investments combine fixed income and stock components to offer you a combination of the stability of interest income and the growth potential of stock investments. As a result, these investments typically do not experience the full ups and downs of the stock market.

Stock/Equities

Stock/Equity investments own shares of corporations, which provide investors a chance to participate in the profits--or losses-- of those corporations. Stocks have the potential for higher returns, but they carry more risk than other investment options. There are many types of stock investments, each categorized by the size of the companies they invest in, the investment style followed by the fund manager and the geographic focus of the fund.

*This section is designed to provide you with general information about different types of investments. Not all retirement plans offer investments in every category.

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SIZE OF MARKET CAPITALIZATION

Large Cap Over $10 billion $2 billion to $10 billion Under $2 billion

Investment factors

Mid Cap Small Cap

INVESTOR STYLE

Growth The stocks are expected to grow faster than the economy The stocks are thought to be a bargain because they have been undervalued or overlooked by investors These investments combine both growth and value stocks

Value

Blend

GEOGRAPHIC FOCUS

Domestic Global International Invests primarily in U.S. companies Invests in both U.S. and foreign companies Invests primarily in foreign countries

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GoalMakerasset allocation made easy

As we said earlier, choosing an investment mix that's tailored to your specific goals and time frame just might be the most important decision you make when it comes to preparing for a secure retirement. Creating that diversified portfolio can frustrate even seasoned investors. GoalMaker®, a powerful asset allocation program offered through your Prudential SmartSolution IRA at no additional cost, can help you choose a diversified model portfolio that matches your investor style and time frame. Here's how:

STEP 1

Determine your investor style

Investor style is simply how comfortable you are with short-term swings in the market. (To help determine yours, please see "Investor Style Quiz" on page 8.)

Conservative investors :

generally are concerned about short-term ups and downs in the market, and want to minimize risk and maintain principal.

Moderate investors :

generally are willing to sacrifice safety of principal for potentially greater returns, and can tolerate modest market fluctuations.

Aggresive investors :

generally seek to maximize investment returns, and can tolerate substantial market swings.

STEP 2

"Set" your years to retirement

How much time you have until you retire and need to start taking income from your savings. Think about the age you will need income from your retirement savings. Simply refer to the GoalMaker section of your Prudential SmartSolution Investor Toolkit and match your investor style and years to retirement with the corresponding model portfolio. Then, if you're comfortable with that portfolio, you're ready.

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Staying on course

Let GoalMaker help you reach your goal

GoalMaker doesn't end by helping you select a diversified model portfolio customized to your specific need. With its Automatic Rebalancing* feature, GoalMaker will rebalance your investment quarterly to ensure that the asset allocation that was designed for your indicated investor style stays on track. That's important because sometimes one investment option in your portfolio may grow (or decline) faster than another, throwing your original asset allocation off balance. With Automatic Rebalancing, money is moved among the investments in your GoalMaker* portfolio to maintain your original allocation. Signing up for GoalMaker is easy. Just log on to your account at www.prudential.com/online/retirement and select GoalMaker from the menu of options on the Account Details page. For assistance, or to open a Prudential SmartSolution IRA, contact a Prudential Retirement Counselor** toll-free at 1-877-PRU-2100. Determining an investment mix for your unique goals doesn't have to be difficult. And with GoalMaker's help, it isn't.

*Even if you have Automatic Rebalancing, Prudential Retirement suggests reviewing your investments at least annually. **Retirement Counselors are registered representatives of Prudential Investment Management Services LLC who will receive compensation if you decide to either roll over your plan account to an individual retirement account (or "IRA") through Prudential or keep your funds in your employer-sponsored retirement plan. The timing and amount of these compensation payments for an IRA rollover is more favorable than for remaining in the plan. Should you choose to roll to an IRA through Prudential, such compensation does not differ based on which IRA you choose or how your money is invested.

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Investor Style Quiz*

Circle the points that correspond to your answer for each statement. When you are done, add up your points to determine your Investor Style.

1. How concerned are you that you won't achieve a high enough rate of return over the long term?

Very concerned ........................................ 10 Somewhat concerned................................ 7 Not concerned ............................................ 3

7. How much experience do you have with stock investments?

A great deal .............................................. 6 A fair amount ............................................ 4 Very little ................................................... 2 None .......................................................... 1

2. How concerned are you about inflation's effect on your retirement savings' loss of "buying power?"

Very concerned .......................................... 6 Somewhat concerned................................ 4 Not concerned ............................................ 1

8. How comfortable are you with stock investments?

A great deal ............................................ 12 A fair amount ......................................... 10 Very little .................................................. 4 Not at all ................................................... 0

3. How concerned are you about wide swings in your account value over 1­3 months?

Very concerned .......................................... 0 Somewhat concerned................................ 4 Not concerned .......................................... 12

9. How much experience do you have with bond investments?

A great deal ............................................. 5 A fair amount........................................... 3 Very little .................................................. 2 None ......................................................... 1

4. How concerned are you about wide swings in your account value over 1­2 years?

Very concerned .......................................... 2 Somewhat concerned................................ 6 Not concerned .......................................... 12

10. How comfortable are you with bond investments?

A great deal .............................................. 7 A fair amount .......................................... 4 Very little................................................... 3 Not at all ................................................... 0

* This quiz is designed to be used as a guide only and is not intended as financial advice. Your financial decisions should not be based solely on the score you have obtained using this quiz.

5. Which of the following concerns you most about your account?

My ability to get back at least the same amount of money that I put in ........ 2 That my money is not earning enough..... 6 How much I have gained or lost this month ....................................... 0

6. One of the investments in your account has performed very well for a few years. What would you do if it suddenly dropped 15% in 3 months?

Sell immediately ........................................ 0 Hold it ......................................................... 6 Buy more .................................................... 8

INVESTOR STYLES

CONSERVATIVE ..................................0­40 PTS. MODERATE........................................ 41-60 PTS. AGGRESSIVE.........................................61+ PTS.

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280 Trumbull Street Hartford, CT 06103 www.prudential.com/prs 1-877-778-2100

Not FDIC Insured

Are not Bank or Credit Union Guaranteed

May Lose Value

Investors should consider the fund's 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.

The fees associated with account balances remaining in the plan will be different from, and are likely to be less than, the fees associated with a rollover IRA. You should review your Plan's provisions to determine whether you are permitted to keep your account balance in the plan sponsored by your former employer or discuss rollover provisions in your new Employer's plan. You may contact Prudential's Participant Service Center at 1-877-778-2100 to obtain a comparison of fees between your former employer's plan record kept by Prudential and an IRA. Prudential is very likely to earn more revenue if funds are rolled over to a Prudential SmartSolution IRA than if maintained in your account balance under your former employer's plan. If you remain in your former employer's plan, the investment choices by a party that has a fiduciary obligation to act in your best interest. The Prudential SmartSolution IRA is not affiliated with any employer-sponsored plan or plan sponsor, and a rollover to an IRA means you are no longer part of an employer-sponsored plan. Once assets are rolled over to an IRA, they normally cannot be rolled back to a former employer's plan. Securities products and services are offered by Prudential Investment Management Services, LLC (PIMS), Three Gateway Center, 14th Floor, Newark, NJ 07102- 4077, a Prudential Financial company. Member FINRA/SIPC. Investment advisory services provided by Global Portfolio Strategies, Inc., a Prudential Financial Company. Retirement Counselors are registered representatives of PIMS. The PruSecure Account is a group annuity product issued by The Prudential Insurance Company of America (PICA), Newark, NJ 07102. Amounts contributed to the contract are deposited in PICA's general account. Payment obligations and the fulfillment of any guarantees specified in the group annuity contract are insurance claims supported by the full faith and credit of PICA. PICA periodically resets the interest rate credited on contract balances, subject to a minimum rate specified in the group annuity contract. Past interest rates are not indicative of future rates. This product is neither a mutual fund nor a bank product. The obligations of PICA are not insured by the FDIC or any other federal governmental agency. Prudential Retirement is compensated in connection with this product when general account investment returns exceed the interest credited on contract balances. Other than such compensation, there are no additional charges imposed that reduce the interest rate credited. The Prudential SmartSolution IRA invests in Prudential managed funds. Target and Prudential Investments (including Prudential Jennison) are Prudential subsidiaries and Prudential earns fees for managing these accounts. These fees are described in the prospectus for each fund. Prudential, the Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. 0197052-00001-00 RSBR574 Published 03/2011

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