The Retirement Road Map presentation has three major components:

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1 The Retirement Road Map presentation has three major components: I. "The Brochure" this section is similar to the tri-fold brochure that tells the story of retirement distribution planning. II. The Current Situation this section illustrates the client s lifestyle needs and wants, their expected incomes, the amounts needed today for any remaining income desired, and an investment strategy for retirement. Monte Carlo simulation is used to illustrate the likelihood of the plan s success given real-life uncertainties such as economic conditions, death and long-term care. The likelihood of the plan s success is measured by when the client will run out of money. III. Recommendations and Considerations this section illustrates the advisor recommended planning considerations for the client, including the use of annuities, life insurance, and/or long-term care insurance. Other Considerations and Recommendations Part III of the printed presentation allows the advisor to illustrate recommendations for how they can improve the client s retirement planning. Advisors can recommend for qualified plan distribution strategies, immediate or deferred annuities, life insurance, long-term care or other supplemental policies and riders, or additional analysis in order to improve the client s retirement plan. EVERYTHING in this presentation is done for a reason! Understand how to use the pages below to help your clients understand the presentation and motivate them to take action. Cover Page Page separator makes sure the advisor doesn t get into the recommendations portion of the presentation unless they feel the client is ready for a recommendation. The recommendations section allows the advisor to illustrate to the client the effects specific products and specific values can have on the client s retirement. If the client agrees with the recommendation, the advisor will be in position to make the sale immediately because of the specific nature of the product recommendation. All recommendations are inputted by the advisor in the Recommendations section of the fact finder. The advisor will be asked in the fact finder whether or not they want to illustrate each of the recommendations discussed in this document.

2 How Should You Take Your Retirement? This page justifies your recommendation as to how the client should take their qualified plan distributions during retirement. It illustrates and explains 3 methods of taking the qualified plan distributions and how the distribution strategy affects the Total Amount Required Today. Advisors could easily change the distribution method in the Recommendations section of the fact finder--even to an option that does not create the lowest amount required today: As Needed may be illustrated for clients with health problems or those convinced they will not live as long so that they are sure to spend all their qualified plan dollars before they die. Required Minimum may be illustrated for clients worried about higher taxes at the start of retirement or those that do not need additional income (such as clients receiving deferred compensation). Additionally, high net worth clients with estate planning issues, or who are considering the Stretch IRA concept, may want to see the Required Minimum option.

3 What is an Annuity? Most clients (and perhaps some advisors) do not have a working knowledge of what annuities are and how they may fit into retirement distribution planning. This static page is designed to explain basic annuity concepts to help educate clients so they can make decisions. Effects of Proposed Annuity In the Recommendations section of the fact finder, the advisor can recommend an immediate or deferred annuity settlement option (not a withdrawal option on a deferred annuity) and illustrate the effects of that specific annuity recommendation on this page. Use the table at the bottom of the page along with the bottom two emphasis statements to easily compare the effectiveness of the annuity to the clients planning without the annuity. Keep in mind that you may not affect the values in the emphasis statement at the bottom of the page by much, but this is still a powerful sales opportunity for annuities. Remember that if you do not use an annuity, you will only achieve the results in the illustration if you are able to earn the assumed rate of return on your investments throughout retirement. Purchasing an annuity allows the client to move the investment risk to the insurance company and guarantees that the income will continue as long as the client, spouse, or both are alive (depending on the annuity type).

4 Effects of Proposed Annuity Ledger This ledger shows the specific numbers used to create the graph on the previous page. Clients can see the actual values in each year of retirement for their needs, Social Security, qualified plans, etc. Once again, the Remaining Income Required column illustrates the shortfall each month the client will face with the annuity in place.

5 Effects of Life Insurance In the Recommendations section of the fact finder, the advisor can recommend a life insurance face amount and premium (either monthly premium or lump-sum single premium) and illustrate the effects of that specific life insurance recommendation on this page. The top graph shows the before, the bottom graph shows the after. Notice that the red that was solved by the life insurance death benefit is simply not covered up by another color representing the insurance proceeds. The needs are removed from the graph because the death benefit provides cash at the exact time the proceeds are needed. The needs are not planned for ; they are eliminated with the life insurance in place. The bottom graph also incorporates the additional monthly premium (if applicable). In this example, you can compare the income needs around ages as the values hover around that $16,000 line; you can see that the needs are slightly higher in the bottom graph due to the insurance premiums. Permanent Life Insurance This page also confirms the need for at least partial permanent life insurance coverage. If Client A lives longer than anticipated, the cash value could provide income in the form of withdrawals. This would also cause the death benefit to decrease, but most likely, the Survivorship phase would be shortened. Conversely, if Client A dies prematurely, the death benefit may not be enough to cover a longer Survivorship phase, but the surviving spouse would also have the assets that were meant to cover Client A s income needs if they had lived longer.

6 Effects of Life Insurance Ledger This ledger shows the specific numbers used to create the graph on the previous page. Clients can see the actual values in each year of retirement for their needs, Social Security, qualified plans, etc. Once again, the Remaining Income Required column illustrates the shortfall each month the client will face with the life insurance and monthly premiums (if applicable) in place. Effects of Recommendations At this point, the advisor can discuss with the client the total effects of the qualified plan distribution option, the proposed annuity income option and the life insurance and how they have improved the client s retirement lifestyle. The easiest way to see improvement is to look at the emphasis statement at the bottom of the page (82% of desired retirement income is satisfied.) and compare it to the original emphasis statement on the Your Retirement Journey page in the current situation section of the presentation. Remember that even if there is not an improvement in the percent of desired retirement income satisfied, the client s retirement plan may still be improved as the annuity and life insurance have shifted the investment risk from the client to the insurance company and have put safeguards in against dying earlier or later than what is expected and planned for.

7 Effects of Recommendations Ledger This ledger shows the specific numbers used to create the graph on the previous page. Clients can see the actual values in each year of retirement for their needs, Social Security, qualified plans, etc. Once again, the Remaining Income Required column illustrates the shortfall each month the client will face with the annuity, the life insurance, and with all premiums accounted for. The Unexpected What if? Now that the client is feeling warm and fuzzy about retirement due to the advisors recommendations, the advisor can illustrate how easily those plans can be shattered by unexpected needs such as critical illness, cancer, an accident, long-term care, nursing homes, or expensive surgeries. The page illustrates the current national average long-term care expense of $4,000 per month for the client starting at age 90 for three years. (The assumptions can be changed in the fact finder.) It then shows what effect the unexpected expense will have on the client s retirement plan. The page then recommends the client consider purchasing Long-Term Care insurance (or whichever supplemental policy the advisor chooses to illustrate).

8 The Unexpected What if? Ledger This ledger shows the specific numbers used to create the graph on the previous page. Clients can see the actual values in each year of retirement for their needs, including the unexpected need, Social Security, qualified plans, etc. Once again, the Remaining Income Required column illustrates the shortfall each month the client will face with the annuity, the life insurance, all premiums, and the unexpected need accounted for. Ways to Provide Predictable Incomes This static page provides supplemental information to the client and advisor concerning the various methods of supplying income streams during retirement. The annuity recommendation may open up the door to a conversation regarding ways of providing secure income to the client. This page would serve as a nice reference to that conversation. The page states that 80% of Americans said they would prefer a secure income stream during retirement, so this will be a topic of conversation with the majority of clients.

9 Recommendations After the analytical case has been made for the recommendations on the previous page, this page allows the advisor to close the sale of these individual product recommendations. The advisor can go right down the list with the client and recommend specific products by name and amount. As you move farther down the page, the recommendations become more oriented towards other planning opportunities such as a more comprehensive or detailed analysis, such as retirement analysis, qualified plan analysis, or estate planning analysis. All recommendations that appear on this page are selected by the advisor in the fact finder with the exception of the last two; Put recommendations into action. and Review your road map annually. will always appear. Recommendations Continued The number of recommendations will vary with each client, so multiple Recommendations pages may be created. About the Calculations This page will state all of the assumptions used in the calculations and in the analysis. This is a great page for the advisor to turn to in the event the client asks questions concerning growth rates, the scope of the calculations, or any other component in the analysis that was not entered on the fact finder.

10 About the Calculations Continued One of the most common questions asked by clients is What growth rate assumptions are being used for each asset class? The About the Calculations Continued page illustrates the assumed growth rate for each asset class in the chart. Remember, the client s specific investment options will be based on the client s individual risk tolerances and their overall asset allocation strategy.