Spend Less and Build Savings

Here are some ways to help you reduce expenses and have more money available
to save.

It can be difficult to think about retirement in this current environment, especially if you have other more pressing financial issues to take care of. Yet, developing good habits for managing expenses and saving over time can prove beneficial when you're ready to retire. Following are some tips on how to spend less and, as a result, potentially have more money to set aside to help you plan for a financially secure future:

  1. Organize your financial goals according to what you want to accomplish in five years or less and what will take longer than five years. This can help you separate short-term goals (such as paying off credit cards and other loans) and long-term goals (traveling during retirement)—all while you continue to save. Check out this helpful worksheet from the Employee Benefits Security Administration.

  2. When you have a clearer idea of your goals and priorities, look for ways to cut expenses. Consider a variety of cost-cutting options ranging from setting aside pre-tax money in a Flexible Spending Account, if your employer offers one, to making fewer big-ticket purchases, among other things. You can use these helpful Savings Fitness Worksheets to guide you.

  3. Avoid bad debt resulting from credit card misuse. One rule of thumb: if you don't have the savings available, keep the credit cards in your purse or wallet! Also, try to pay off your credit cards in full each month. Leaving a balance on your credit card will cost you more money because you will have to pay interest fees on top of the principal.

  4. Once you have a clear vision of your goals and saving for them, revisit your spending plan periodically to stay on track. With reduced expenses and spending, look to sock away more savings into your retirement plan. For example, if your employer offers a match and you're not taking full advantage of it, do so. And, if you're age 50 or older, you may be able to boost your retirement savings with "catch-up" contributions.*

To learn more about saving for your retirement, contact your local Mutual of America representative today.

*Tax-Deferred Annuity, 403(b), 401(k) and Governmental Section 457(b) Plans. Section 457(b) Eligible Deferred Compensation Plan participants can make a special catch-up contribution if they are within three years of their normal retirement age.

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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