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Enrollment: Alameda County Deferred Compensation Plan. Alameda County Deferred Compensation Plan. May 2010. INST-20081201-A023892 RS.PP.080 Edition 6/2007 Updated 12/2008. # 84. 668. 135 Yrs. 3.6 Mil. Why Prudential. How Prudential Can Help.

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slide1

Enrollment: Alameda County Deferred Compensation Plan

Alameda County Deferred Compensation Plan

May 2010

INST-20081201-A023892 RS.PP.080

Edition 6/2007 Updated 12/2008

slide2

#84

668

135 Yrs.

3.6 Mil.

Why Prudential

How Prudential Can Help

Ranked #84in the Fortune 500 List of America’s Largest Corporations

$668 billion in assets under management as of December 31, 2009

Helping people achieve financial security for over 135 years

Serving over 3.6 million participantsand annuitants

All data as of December 31, 2009

slide3

High Risk/High Potential Return

Global/ International Stock

Balanced

Small-Cap

Stock

Mid-Cap

Stock

Large-CapStock

R E T U R N

Stability Income Growth

Fixed- Income

Stable Value

Low Risk/Low Potential Return

R I S K

Investment Categories

market risk
Market risk

Market Risk

This example is for illustrative purposes only and is not intended to represent the performance of any specific investment. For information about the funds offered in your plan, please refer to the Fund Fact Sheets. Indexes are unmanaged; invesments cannot be made directly to an index.

slide5

Investments

Stable Value

  • Stable Value Fund

Fixed Income

  • Prudential MoneyMart Assets
  • Delaware Diversified Income Fund
  • Oppenheimer Strategic Income Fund
  • Medley Diversified Bond Account (VCA-24)
  • Medley Government Income Account (VCA-24)

Balanced

  • American Funds American Balanced R3
slide6

Investments

Large-Cap

  • Allianz NFJ Dividend Value A
  • American Funds Fundamental Invs R3
  • Davis NY Venture Fund A
  • Prudential Stock Index Fund I
  • American Funds Growth Fund of America R3
  • Franklin Flex Cap Growth Fund
  • Prudential Jennison Growth Fund Z
  • Medley Capital Growth Account (VCA-10)
  • Medley Equity Account (VC-24)
slide7

Investments

Mid-Cap

  • Goldman Sachs Mid Cap Value Fund A
  • Lord Abbett Mid Cap Value Fund
  • Ariel Appreciation Fund
  • Prudential Jennison Mid Cap Growth Fund Z

Small-Cap

  • Delaware Small Cap Value Fund A
  • Prudential Jennison Small Company Fund
slide8

Investments

Global / International

  • Templeton World Fund
  • AllianceBernstein Global Thematic Growth A
  • American Funds EuroPacific Growth Fund R3
  • Mutual European Fund
  • Templeton Developing Markets Trust

Other

  • BlackRock Health Sciences Portfolio
slide10

What is GoalMaker?

  • Optional asset allocation program adopted by your employer
  • Helps target the investment options best suited to your retirement goal
  • Uses investment options offered by your retirement program
  • 12 diversified portfolios, based on various risk tolerances and time horizons

Application of asset allocation and diversification concepts does not ensure safety of principal and

interest. It is possible to lose money by investing in securities.

slide12

Your Asset Allocation

The asset allocation models are provided as samples and not as investment recommendations. The model portfolios are based on generally accepted investment practices and take into account the principles of modern portfolio theory, in which allocations are adjusted in an effort to achieve maximum returns for a given level of risk. You may want to consider other assets, income, and investments you may have before applying these models to your individual situation. Consult the prospectus for information about how the portfolio manager invests the assets of any particular investment option. Proposed allocations assume a retirement withdrawal period of 15 years. Past performance of investments or asset classes does not guarantee future results.

slide13

GoalMaker Portfolios

Application of asset allocation and diversification concepts does not ensure safety of principal and interest. It is possible to lose money by investing in securities. The GoalMaker portfolios are subject to change including, for example, the replacement of investment options and allocations within the portfolios. You will be notified in writing in advance of such changes.

slide14

GoalMaker Automatic Rebalancing

Changes due to

market fluctuation

Original portfolio

Application of asset allocation and diversification concepts does not ensure safety of principal and interest.

It is possible to lose money by investing in securities.

slide15

GoalMaker – Age Adjustment

Paul

Age:25/Just out of school

  • His Investor Profile
  • Conservative Investor
  • 16+ Years to Retirement

Application of asset allocation and diversification concepts does not ensure safety of principal and interest.

It is possible to lose money by investing in securities.

slide16

GoalMaker – Age Adjustment

Paul

Age:50/Thinking about retirement

  • His Investor Profile
  • Still a Conservative Investor
  • 15 Years to Retirement

Application of asset allocation and diversification concepts does not ensure safety of principal and interest.

It is possible to lose money by investing in securities.

slide17

GoalMaker Investor Type

Optional Exercise

slide18

Retirement Facts

  • The biggest misconception about retirement is that it is purely a function of age
  • Only 18% of the current workforce is very confident about having enough money to live comfortably in retirement*
  • Inflation will affect your savings

.

*Source: 1993-2008 Retirement Confidence Survey - Employee Benefit Research Institute

slide19

Why Save in a Retirement Plan

  • You pay less in current federal taxes today
  • Compounding helps your money grow
  • Your money worksharder for you
  • Saving iseasy
  • Choose from avarietyof investments offered by the program

The compounding concept is hypothetical and for illustrative purposes only and is not intended to represent performance of any specific investment, which may fluctuate. No taxes are considered in the calculations; generally withdrawals are taxable at ordinary rates. It is possible to lose money by investing in securities.

slide20

80%

Retirement Income Needs

Of your current income

slide21

Susan

Retirement Income Needs

Example: Susan (in workforce 15 years)

Susan’s pre-retirementincome:$30,000

Applying the 80% rule, she’ll need

$24,000each year of retirement

Assuming she retires at age 65 and lives toage 85, she’ll need:

$480,000

slide22

Sources of Retirement Income

Other

Social Security

Retirement

Savings

3%

17%

37%

15%

Personal

Savings

28%

Earnings

Source: Data for 2006 are Social Security Administration calculations from the March 2007 Annual Social and Economic Supplement to the Current Population Survey.

slide23

Your Program Highlights

  • Eligibility
  • How your money goes in
  • How your money comes out
slide24

Example: Terry

Pay: $30,000

Filing Status:Single

$4,500

$4,000

Saves 6%:$1,800 per year

$3,500

$3,000

$0

Federal Income Tax Paid*

Reason to Participate Now

The Potential to Pay Less in Federal Income Tax

A savings of $270 at tax time

$4,099

$3,829

Not Participating

Participating

*Based on 2008 Internal Revenue Service

Tax Table. It considers, no other income,

deductions, exemptions or taxes.

slide25

$100k

$75k

50k

$25k

$0

At Retirement-Age 65

Reason to Participate Now

Compounding Interest

A difference of $47,266 at age 65

$89,716

Example: Carla

Age: 25

Saves: $35 per month

Example: Beth

Age: 35

Saves: $35 per month

$42,450

Carla

Beth

Assumes 7% interest. The compounding concept is hypothetical and for illustrative purposes only and is not intended to represent performance of any specific investment, which may fluctuate. No taxes are considered in the calculations; generally withdrawals are taxable at ordinary rates. It is possible to lose money by investing in securities.

slide26

A Little Can Make A Difference

$46,114

$456.25 per year

$8.75 per week

$1.25 per day

Assumes 7% interest over a period of 30 years. The compounding concept is hypothetical and for illustrative purposes only and is not intended to represent performance of any specific investment, which may fluctuate. No taxes are considered in the calculations; generally withdrawals are taxable at ordinary rates. It is possible to lose money by investing in securities.

slide27

How Much is Enough?

Gross Pay Per Paycheck $300 $500 $700 $1500

3% Contribution Amount 9 15 21 45

Take-home pay reduced by 7 11 15 33

Estimated Tax Advantage* 2 4 6 12

7% Contribution Amount 21 35 49 105

Take-home pay reduced by 15 26 36 77

Estimated Tax Advantage* 6 9 13 28

9% Contribution Amount 27 45 63 135

Take-home pay reduced by 20 33 46 99

Estimated Tax Advantage* 7 12 17 36

You can review your own paycheck impact using our

paycheck impact calculator on Prudential’s Retirement Education and Planning Site:

http://www.prudential.com/PREP/tools

Prudential Financial is not a legal or tax adviser and encourages you to consult your individual legal or tax adviser with any specific questions.

*Based on a 28% Federal tax rate

slide28

Enroll by completing the enrollment forms in the back of the Prudential Retirement Workbook

Learnmore about planning for retirement at www.prudential.com/prep

Reevaluateyour plan at least once per year

Next Steps

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