Four Money Hacks for Uncertain Times

Saving tips and ideas for the current environment.

Two-thirds (67%) of Americans say that the COVID-19 pandemic has been a wake-up call for them to reevaluate their finances, according to a recent survey.1 We've compiled four money hacks that can help make saving for important long-term goals like retirement doable, no matter your age or life stage.

1. Manage what you can.

The health and economic strains of the COVID-19 pandemic have left many Americans more focused on meeting everyday expenses than saving for retirement.

  • If you made the decision to reduce or stop contributions to your retirement plan, consider revisiting that choice when you're able. Saving for retirement will directly impact whether you'll have the kind of lifestyle you want after you finish working.

  • If you've been consistently contributing to your plan, consider upping your savings rate. Because of social distancing, you may find that you've been spending less money on extras, like dining out, concerts and vacations. Putting some of that money toward your future may increase your chances of reaching your goal to have enough money in retirement.

2. Do a safety check.

Focusing on the future can be difficult during unsettling times like these. When it comes to retirement, it's important to remember that you may have more time than you realize to ride out market swings.

  • To help you get and stay on the right track, now may be a good time to look back at the last several months and consider how comfortable you're feeling with the amount of volatility your retirement savings account experienced.

  • If you realize that you don't have as high a tolerance for risk as you may have thought, talk with your local Mutual of America representative to learn how you can reallocate your assets to reflect your revised risk tolerance.

3. Make it simple.

When you left your last job, did you remember to take your retirement account with you?

  • You may be able to roll over those assets into your current plan. One of the benefits of consolidating your retirement savings in one account is that it makes it much easier to monitor your asset allocation and rebalance when necessary.

  • Having all of your assets in one retirement account instead of different accounts may save you money on account management and maintenance fees. (Keep in mind that rollovers are tax-free.) 2

4. Live with intention.

If you can’t remember the last time you checked the beneficiary designations on your retirement account, now is a good time to do a quick review.

  • Perhaps you got married recently or you married again. Or maybe you’ve become a first-time parent or grandparent.

  • Whether you’re young and building wealth for your future or are older and nearing retirement, it’s important to make sure your beneficiary designations are up-to-date and reflect where you want your assets to go should something happen to you.

For more tips to help you navigate your financial journey, contact your local Mutual of America representative today.

1

Tough Talks During COVID-19 Survey, LifeHappens®, July 8, 2020. https://lifehappens.org/press/covid-19-sparks-new-family-conversations-around-financial-matters/

2

Before consolidating your accounts, you should review them to determine the fees and expenses you currently pay and whether there are any surrender charges that may result.

Distributions that are not rolled over are subject to income tax at your ordinary income tax rate at the time of withdrawal. Distributions made prior to age 59½ will also be subject to a 10% federal tax penalty unless an exception applies.


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 1-800-468-3785 or visiting mutualofamerica.com. Read them carefully before investing.

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 options 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.




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