1. What does it mean to you? Longevity

2. What if you knew your Life Expectancy? It sure would make retirement planning much easier. ?

3. Lifespan in the US Data from World Bank Last updated: Mar 9, 2012World Bank What are the risks? The average life expectancy in the US is 78.09 years. Basing your retirement off of the average lifespan can be dangerous.

4. Running out of Money 60 Year Old Male: 20% chance of living to age 95 60 Year Old Female: 30% chance of living to age 95 60 Year Old Couple: 40% chance one of them lives to age 95 Data from World Bank Last updated: Mar 9, 2012. https://www.wellsfargo.com/investing/retirement/planning/longevityWorld Bank Average Life Expectancy 78.09 Years

5. Living Under Your Potential Lifestyle Data from World Bank Last updated: Mar 9, 2012 https://www.wellsfargo.com/investing/retirement/planning/longevityWorld Bank If the fear of running our of money causes you to live too conservatively, you may not live the retirement lifestyle that you could have had.

6. 1.Maximize Retirement Income 2.Protect Against Longevity Risk 3.Stay in Control of Your Money Data from World Bank Last updated: Mar 9, 2012 https://www.wellsfargo.com/investing/retirement/planning/longevityWorld Bank What options do you have? Consider Your Goals

7. Why? Take the guess work out of retirement and guarantee yourself a lifetime income stream. How? Invest a portion of your money with an insurance company who can use average life expectancy which can work in your favor. Guaranteed Lifetime Income Guarantees are based on the claims-paying ability of the issuing company. Index annuities are long-term investments and are not suitable for all investors. Surrender charges may apply for early withdrawals and, if made prior to age 59 ½, may be subject to a 10% federal tax penalty in addition to any gains being taxed as ordinary income. Index annuities are not FDIC insured. The S&P 500 is an unmanaged index of 500 widely held companies. The Russell 1000 is an unmanaged index comprising 1,000 of the largest capitalized U.S.-domiciled companies and whose common stock trade in the United States. Investors cannot invest directly in an index. The participation rate determines how much of the gain in the index will be credited to the annuity. Investors will not receive any upside participation in the index above the participation rate. Investors also typically do not participate in any dividends accumulated on the securities represented by the index. The interest rate cap is the maximum rate of interest the annuity may earn in a year. The protected growth benefit compares the change in the index from the beginning to the end of each year with declines being ignored.

8. Life Expectancy = ??? Law of Large Numbers Insurance carriers can look at groups of people instead of individuals. Life Expectancy :78.09 yrs

9. Benefit: Guarantee yourself an income that is based on average life expectancy without the risk of running out of money. Law of Large Numbers Guarantees are based on the claims-paying ability of the issuing company. Index annuities are long-term investments and are not suitable for all investors. Surrender charges may apply for early withdrawals and, if made prior to age 59 ½, may be subject to a 10% federal tax penalty in addition to any gains being taxed as ordinary income. Index annuities are not FDIC insured. The S&P 500 is an unmanaged index of 500 widely held companies. The Russell 1000 is an unmanaged index comprising 1,000 of the largest capitalized U.S.-domiciled companies and whose common stock trade in the United States. Investors cannot invest directly in an index. The participation rate determines how much of the gain in the index will be credited to the annuity. Investors will not receive any upside participation in the index above the participation rate. Investors also typically do not participate in any dividends accumulated on the securities represented by the index. The interest rate cap is the maximum rate of interest the annuity may earn in a year. The protected growth benefit compares the change in the index from the beginning to the end of each year with declines being ignored.

10. Assets Qualified Money: $350,000 Non Qualified Money: $300,000 Total: $650,000 Retirement Income Social Security Income: $2,513/Month Pension: $2,000/Month Total: $4,513/Month Calculating Income Gap Jim Smith Current Age 55 Retirement Age 65 Desired Retirement Income $6,000/Month Current Retirement income $4,513/Month Income Gap: $1,487/Month

11. $1,487/Month = $17,844/Year Solving for the Income Gap Guarantees are based on the claims-paying ability of the issuing company. Index annuities are long-term investments and are not suitable for all investors. Surrender charges may apply for early withdrawals and, if made prior to age 59 ½, may be subject to a 10% federal tax penalty in addition to any gains being taxed as ordinary income. Index annuities are not FDIC insured. The S&P 500 is an unmanaged index of 500 widely held companies. The Russell 1000 is an unmanaged index comprising 1,000 of the largest capitalized U.S.-domiciled companies and whose common stock trade in the United States. Investors cannot invest directly in an index. The participation rate determines how much of the gain in the index will be credited to the annuity. Investors will not receive any upside participation in the index above the participation rate. Investors also typically do not participate in any dividends accumulated on the securities represented by the index. The interest rate cap is the maximum rate of interest the annuity may earn in a year. The protected growth benefit compares the change in the index from the beginning to the end of each year with declines being ignored. 5.00% Withdrawal For Life American General (AIG) Lifetime Income Plus Rider Deposit $178,440 Double initial premium after 10 years as GMWB base $356,880 GMWB Base $17,844/Year Deposit Needed: $178,440

12. Income Goals Accomplished Guarantees are based on the claims-paying ability of the issuing company. Index annuities are long-term investments and are not suitable for all investors. Surrender charges may apply for early withdrawals and, if made prior to age 59 ½, may be subject to a 10% federal tax penalty in addition to any gains being taxed as ordinary income. Index annuities are not FDIC insured. The S&P 500 is an unmanaged index of 500 widely held companies. The Russell 1000 is an unmanaged index comprising 1,000 of the largest capitalized U.S.-domiciled companies and whose common stock trade in the United States. Investors cannot invest directly in an index. The participation rate determines how much of the gain in the index will be credited to the annuity. Investors will not receive any upside participation in the index above the participation rate. Investors also typically do not participate in any dividends accumulated on the securities represented by the index. The interest rate cap is the maximum rate of interest the annuity may earn in a year. The protected growth benefit compares the change in the index from the beginning to the end of each year with declines being ignored. Desired Retirement Income = $6,000/Month Social Security Income $2,513/Month Pension $2,000/Month AIG Annuity $1,487/Month Total: $6,000/Month

13. What Interest Rate Do We Need to Earn? Accumulation Goals: Replace the Invested Assets Guarantees are based on the claims-paying ability of the issuing company. Index annuities are long-term investments and are not suitable for all investors. Surrender charges may apply for early withdrawals and, if made prior to age 59 ½, may be subject to a 10% federal tax penalty in addition to any gains being taxed as ordinary income. Index annuities are not FDIC insured. The S&P 500 is an unmanaged index of 500 widely held companies. The Russell 1000 is an unmanaged index comprising 1,000 of the largest capitalized U.S.-domiciled companies and whose common stock trade in the United States. Investors cannot invest directly in an index. The participation rate determines how much of the gain in the index will be credited to the annuity. Investors will not receive any upside participation in the index above the participation rate. Investors also typically do not participate in any dividends accumulated on the securities represented by the index. The interest rate cap is the maximum rate of interest the annuity may earn in a year. The protected growth benefit compares the change in the index from the beginning to the end of each year with declines being ignored. Assets : Qualified Money $350,000 Non Qualified Money $300,000 Total $650,000 Invested in AIG Annuity: $178,440 Remaining Assets = $471,560 3.26%

14. Hypothetical Accumulation Beginning Account ValueInterest RateEnding Account Value 1 $ 471,560.003.26% $ 486,932.86 2 3.26% $ 502,806.87 3 3.26% $ 519,198.37 4 3.26% $ 536,124.24 5 3.26% $ 553,601.89 6 3.26% $ 571,649.31 7 3.26% $ 590,285.08 8 3.26% $ 609,528.37 9 3.26% $ 629,398.99 10 $ 629,398.993.26% $ 650,000.00

15. 10-Year plan Jim at Age 55 Assets: $650,000 Income at Retirement: $4,513/Month Jim at Age 65 Assets: $650,000 Income at Retirement: $6,000/Month Guarantees are based on the claims-paying ability of the issuing company. Index annuities are long-term investments and are not suitable for all investors. Surrender charges may apply for early withdrawals and, if made prior to age 59 ½, may be subject to a 10% federal tax penalty in addition to any gains being taxed as ordinary income. Index annuities are not FDIC insured. The S&P 500 is an unmanaged index of 500 widely held companies. The Russell 1000 is an unmanaged index comprising 1,000 of the largest capitalized U.S.-domiciled companies and whose common stock trade in the United States. Investors cannot invest directly in an index. The participation rate determines how much of the gain in the index will be credited to the annuity. Investors will not receive any upside participation in the index above the participation rate. Investors also typically do not participate in any dividends accumulated on the securities represented by the index. The interest rate cap is the maximum rate of interest the annuity may earn in a year. The protected growth benefit compares the change in the index from the beginning to the end of each year with declines being ignored.

16. Goals Accomplished Protection Against Longevity Risk Remain in Control of Assets Principal Preservation

17. Advisor Name Title Phone Number Address Email