Your Number. Every person has one. ANNUITIES. Your future. Made easier. SM

Transcription

1 Your Number. Every person has one. Not FDIC/NCUA Insured Not A Deposit Of A Bank Not Bank Guaranteed May Lose Value Not Insured By Any Federal Government Agency ANNUITIES Your future. Made easier. SM

2 Know Your Number Your Number. Every person has one. It s the amount of money you ll need to have saved to retire the way you want. Most people don t know their number. Many don t know how to get their number. And once reached, some don t know what to do with it. Determining Your Number may seem daunting. But, with the help of a financial professional, it s easier than you think. Your Number is based on several factors, including: Current age Retirement savings When you want to retire Retirement expenses Annual income Inflation Entering these factors into a retirement calculator, such as the one found on can help you determine Your Number. Keep in mind, Your Number can be flexible. Only 47% of workers report they and/or their spouse have tried to calculate how much money they will need to live comfortably in retirement. Source: Employee Benefit Research Institute, 2008 Retirement Confidence Survey How? By deferring retirement a few years, not only do you shorten the number of years during which you need income, but you lengthen the number of years your money is invested and could potentially continue to grow. 44% of workers who did this calculation changed their retirement planning as a result. Source: Employee Benefit Research Institute, 2008 Retirement Confidence Survey

3 Get to Your Number You know Your Number, now you need a strategy to help you get there. If your personal savings fall shy of Your Number, remember, you are not alone. Only 18% of workers say they are very confident in having enough money to live comfortably in retirement. Source: Employee Benefit Research Institute, 2008 Retirement Confidence Survey. There are two important steps to reach Your Number: saving and investing. Whether you are near, far or already in retirement, investing your savings is key. Saving: A reduction or lessening of expenditure or outlay The first step is to consider maximizing your contributions to tax-advantaged investment vehicles: Employee-sponsored retirement plans, such as 401(k) and 403(b) plans Traditional and Roth IRAs Annuities IRAs and 401(k) plans are tax-advantaged vehicles designed to help you save and invest for retirement. However, not everyone can contribute to an IRA due to income restrictions and both of these options have contribution limits set by the federal government. Investing: To commit money or capital in order to gain a financial return Stocks generally provide investors with the best growth potential over the long run. If $1 had been invested in large capitalization stocks over the last 82 years, that $1 would have been worth $2,049 by the end of Stocks, Bonds, Bills and Inflation: % 12% 11.7% Compound Annual Return % 9% 6% 3% 3.0% Inflation 3.7% Treasury bills 5.7% 9.6% Government bonds Large stocks Small stocks 0 Past performance is no guarantee of future results. Hypothetical value of $1 invested at the beginning of Assumes reinvestment of income and no transaction costs or taxes. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index Morningstar, Inflation Inc. All rights reserved. 3/1/2009 Government bonds and Treasury bills are guaranteed by the full faith and credit of the United States government as to the timely payment of principal and interest, while stocks are not guaranteed and have been more volatile than the other asset classes. Furthermore, small company stocks are more volatile than large company stocks, are subject to significant price fluctuations and business risks, and are thinly traded. Generally the higher the potential return, the greater the risk. The compound annual returns of small stocks, large stocks, government bonds, Treasury bills and inflation are charted here. The compound rate of return represents the cumulative effect that each series of gains or losses has on an original $1 invested from 1926 through

4 Protect Your Number 3

5 Your Number is valuable. And while investing in stocks for the long term is a great way to get to Your Number, market volatility can threaten its safety. There are several ways to protect Your Number from market risk. You could take it out of the market altogether. Savings accounts, CDs and even your mattress will protect your money from downward slides in the stock market. But a move like that limits (or eliminates) your upside potential and you may not even keep up with inflation. This means your money will buy less in retirement than it does today. Protection from Volatility and Inflation How can you protect Your Number from stock market volatility and inflation? Luckily, there s a long-term investment designed for retirement purposes that offers downside protection while you invest in the stock market. We re talking about a variable annuity, which allows you to allocate your premiums among a range of fixed and variable investment options. These investment options can allow Your Number to grow tax-deferred until an income stream begins. How does a variable annuity protect Your Number? Investing in stocks gives you the opportunity to outperform inflation, protecting your future buying power. Optional living benefits can be added to your contract to protect your future retirement income from current market fluctuations. Death benefits are available to protect the value your contract for your beneficiaries. You should consider the investment objectives, risks and charges, and expenses of the variable annuity and its underlying variable annuity investment options carefully before investing. The prospectus for the variable annuity and underlying variable annuity investment options contain this and other information. You may obtain free prospectuses by calling your financial advisor or Read the prospectus carefully before investing. Living benefits and enhanced death benefits are available for an additional cost. A word on variable annuities: A variable annuity is a long-term investment designed for retirement planning. It is a contract between you and an insurance company, under which the insurer agrees to make periodic payments to you. Variable annuities offer the opportunity to allocate premiums among fixed and variable investment options that have the potential to grow income tax-deferred, until an income stream begins either immediately or at a future date. This income may be the return of your premium or principal and is guaranteed by the issuing insurance company for a specified period of time or for the life of the annuitant. Withdrawals of investment earnings will be subject to ordinary income tax and, if taken prior to age , a 10% IRS penalty tax may apply. Variable Annuities offer death benefits that provide protection for your beneficiary and optional living benefits, available for an additional cost, that provide protection for the contract owner. IRAs and other qualified plans already offer tax deferral like a variable annuity. That's why you should buy a qualified annuity contract only if you are interested in the added living and death benefit protection available. Annuity products are based on the financial strength and claims paying ability for ING USA Annuity and Life Insurance Company, who is solely responsible for all obligations under its policies. All withdrawals reduce the death benefit and may reduce the value of any optional benefits. 4

6 Live off Your Number You know how to grow and protect Your Number. But ultimately, you need to live off it. You need to find out how much income you will need to live comfortably in retirement. What portion of Your Number do you need to guarantee so that you never run out of money? Income for life Investing in a variable annuity will help you turn your retirement savings into a stream of income that is guaranteed to last for life, no matter what happens in the market. Variable annuities do this with living benefits guarantees for turning retirement assets into income. These living benefits are optional riders available for an additional cost. The following steps will help you figure out how much guaranteed income you will need. Figure out your monthly income needs. Use Column 1 in the worksheet to determine how much monthly income is needed to pay your expenses in retirement. Column 2 helps you figure out how much monthly income you will receive from Social Security and pensions. The difference is your monthly income gap. Multiply your monthly income gap by 12 to find out how much of your own money you will need annually during retirement. Identify your existing assets in Column 3 of the worksheet. This is what you have available to convert to retirement income. Now you know how much income you need to guarantee. So, how do you use Your Number, or part of Your Number, to cover your income gap and last for life? * Guaranteed income sources are subject to the financial strength and claims paying ability of the respective entity. Please see important disclosures on the reverse side. 5

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8 An ING variable annuity with ING 7

9 LifePay Plus ING LifePay Plus minimum guaranteed withdrawal benefit 1 can provide a flexible alternative for income in retirement. It can help you reach Your Number and turn it into income that lasts for life. Now that you know the size of your income gap, ING Annuities 2 has a way to fill it. When you add ING LifePay Plus to your contract, you guarantee a certain amount of annual income for the rest of your life. You also position yourself to capture gains during up markets and protect yourself in declining markets. Here's how it works: Your initial guaranteed withdrawal base equals all premiums paid before the first withdrawal. 3 The guaranteed withdrawal base determines the amount of your guaranteed lifetime income. Maximize Your Income Potential Capture Gains in an Up Market On each contract anniversary, if your contract value is higher than the current guaranteed withdrawal base, the Annual Ratchet locks in this amount as your new guaranteed withdrawal base 3. This is referred to as the Annual Ratchet. Protect Yourself in a Down Market For each of the first 10 complete contract years after the rider is issued, you will have the opportunity to outperform the Annual Ratchet. On the contract anniversary of any year that you did not take a withdrawal, ING will look back to the guaranteed withdrawal base on the previous contract anniversary and increase it by 6% of the initial guaranteed withdrawal base, or the guaranteed withdrawal base on the most recent Annual Ratchet, reduced for excess withdrawals and increased for additional premiums. Whenever that amount is greater than your contract value or the Annual Ratchet, it will become the new guaranteed withdrawal base. This is called the 6% Step-Up. When you begin taking withdrawals, you receive a certain percentage of your benefit base (percentage determined by your age at first withdrawal) annually for the rest of your life. 1 Optional benefits and riders are available for an additional cost. 2 ING Annuities is the marketing name for ING USA Annuity and Life Insurance Company. 3 On products offering a bonus, the premium credits will be excluded from the withdrawal base for a period of 36 months. The opportunity for a 6% Step-Up is available in the first 10 contract years only. In order to receive lifetime income the first withdrawal must occur on or after age If withdrawals taken prior to age reduce your contract to $0, you will not be eligible for lifetime withdrawals. 8

10 We re ING, and when it comes to Your Number, we can make it easier. Visit to try our retirement income calculator Contact our customer service center at Talk to your financial professional about an ING variable annuity with ING LifePay Plus 9

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12 Client Services Our friendly Customer Service staff is ready to help you. You will receive quarterly statements, confirmations of every financial transaction, and access to 24-hour, automated, telephone customer service. ING Annuities Customer Service ING USA Annuity and Life Insurance Company 909 Locust Street Des Moines, IA You should consider the investment objectives, risks and charges, and expenses of the variable annuity and its underlying investment options carefully before investing. The prospectuses for the variable annuity and underlying investment options contain this and other information. You may obtain free prospectuses by calling your financial professional or Please read the prospectuses carefully before investing. All guarantees are based on the financial strength and claims paying ability of the issuing Insurance Company, who is solely responsible for all obligations under its policies. Variable annuities are issued by ING USA Annuity and Life Insurance Company (Des Moines, IA) and distributed by Directed Services LLC (West Chester, PA). Both companies are members of the ING family of companies. This material was written to support the promotion or marketing of the transaction or matters addressed herein. It was not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer under the U.S. federal tax laws. Each taxpayer should seek advice based on the taxpayer s particular circumstances from an independent tax advisor. Variable annuities are long-term investments designed for retirement planning. They are a contract between you and an insurance company, under which the insurer agrees to make periodic payments to you. Additionally, variable annuities offer the opportunity to allocate premiums among fixed and variable investment options that have the potential to grow income tax-deferred, until an income stream begins either immediately or at a future date. This income may be the return of your premium or principal and is guaranteed by the issuing insurance company for a specified period of time or for the life of the annuitant. Withdrawals of investment earnings will be subject to ordinary income tax and, if taken prior to age , a 10% IRS penalty tax may apply. Variable Annuities offer death benefits that provide protection for your beneficiary and optional living benefits, available for an additional cost, that provide protection for the contract owner. Variable insurance products are subject to investment risk, are not guaranteed and will fluctuate in value. In addition, there is no guarantee that any variable investment option will meet its stated objective. All withdrawals reduce the death benefit and may reduce the value of any optional benefits. Early withdrawals and other distributions of taxable amounts may be subject to ordinary income tax, a surrender charge, and if taken prior to age , a 10% federal tax penalty may apply. Withdrawals from the Fixed Account also may be subject to an MVA. See the prospectus for details. Account values fluctuate with market conditions, and when surrendered the principal may be worth more or less than the original amount invested. IRAs and other qualified plans already provide tax deferral like that provided by the annuity. For an additional cost, the annuity provides additional features and benefits, including death benefits and the ability to receive a lifetime income. If other options are available, you should not purchase a qualified annuity unless you want these additional features and benefits, taking into account their cost. Benefit rider forms: IU-RA-3061and IU-RA A 2009 ING North America Insurance Corporation cn ING, A Global Leader In Financial Services ING USA Annuity and Life Insurance Company is a subsidiary of ING Groep N.V. (ING), a leading international financial services organization with roots dating back to Today, ING has an impressive global position: Provides financial services to more than 75 million private, corporate and institutional clients. Employs more than 124,600 people in more than 50 countries. Has $770 billion in assets under management as of December 31, Ranks 9th in the 2008 Forbes Global 2000 as measured by a composite ranking of sales, profits, assets and market value. Ranks 7th in the 2008 FORTUNE Global 500 as measured by revenue. The assets of ING have no impact on ING USA Annuity and Life Insurance Company's ability to meet its obligations or upon the performance of its products. Insurance product obligations are the sole responsibility of ING USA Annuity and Life Insurance Company /01/2009