1. Experience the Power of Fixed Index Annuities
Several billion dollars have gone into Fixed Indexed Annuities by baby boomer and seniors. Have you considered that the strategy that lost you money may not be the best way to get it back? Many of us may be able to relate to this because most often we tend to look in our rear view mirror to see where to invest in the future and that may not be the best way to get it back.
The “Yellow Pad” Presentation

2. Consider the advantages of a Fixed Index Annuity
Returns linked to an index
Return of principal*
Liquidity features
Tax deferred growth
Safety
* Subject to claims paying ability of issuing institution
Let’s consider the advantages of Fixed Indexed Annuities. They offer a competitive rate of return which is linked to an index while providing a minimum guaranteed return so you won’t lose your principal even if the market declines. They may allow for liquidity as your needs change and they grow tax deferred without having to sacrifice safety.

3. The Strength of Tax Deferral
Earnings accumulate tax deferred
No income taxes are due until proceeds are taken out
AND the Power of Triple Compounding
Earn interest on your principal
Earn interest on the interest
Earn interest on the money you would have paid in taxes
With the strength of tax deferral your earnings accumulate tax deferred. By this I mean there are no income taxed due until the proceeds are taken out. You may also have triple compounding working in your favor, so you are earning interest on your principal, interest the interest and interest on the money you have paid to Uncle Sam in taxes (opportunity costs)

4. Help Protect Yourself
With the safety and growth potential of a Fixed Index Annuity
If you lost this much
It could take this long to rebuild your nest egg assuming these potential annual returns
at a 3% return
at a 6% return
at a 8% return
10%
3.6 years
1.8 years
1.3 years
20%
7.5 years
3.7 years
2.9 years
30%
12 years
6 years
4.6 years
40%
17 years
8.6 years
6.6 years
50%
23.2 years
11.6 years
9 years
Lets look at how you can protect yourself with the safety and growth potential of an FIA (See chart) If you lost 10% on your nest egg it would take 3.6 years to make that up if your were earning 3% or 1.8 years if your earned 6%. If you lost 50% of you nest egg it would take 23 years at 3% to recoup your losses. A FIA may make sense for a portion of your money.
If you don’t have the recovery time that may be necessary, a Fixed Indexed Annuity may make sense for a portion of your money

5. Popular Indices (examples of companies in the index)
STANDARD & POOR’S 500
NASDAQ 100
DOW JONES
American Express
Cisco Systems
Home Depot
Anhueser-Busch
Dell Inc.
Honeywell
Coca Cola
Intel
General Electric
eBay Inc.
Microsoft
McDonalds
Walt Disney
Amazon.com
Wal-mart
3M Company
Expedia
Du Pont
Whirlpool Corp
Cephalon, Inc.
S&P 500® is a trademark of the McGraw-Hill Companies. Index annuities are not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of purchasing index annuities
The Nasdaq-100® is a trademark of The Nasdaq Stock Market, Inc. (which with its affiliates are the Corporations) the product (s) have not been passed on by the corporations as to their legality or suitability. The product (s) are not issued, endorsed, sold, or promoted by the corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT (S).
Dow Jones is a service mark of Do Jones & Company, Inc. Investment products based on Dow Jones indexes are not sponsored endorsed sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such product (s). Inclusion of a company in the Dow Jones indexes does not in any way reflect an opinion of Dow Jones on the investment merits of the company.
Common indices used with FIA’s and the stocks within each.. The S+P 500 consists of 500 of the largest US publicly traded companies and is usually considered the benchmark for US equity performance.

6. Measuring the Gain Two common methods used
Annual Point-to-Point – Annual Reset
Monthly Point-to-Point – Annual Reset
There are a few different ways companies credit the index returns.

7. Annual Point-to-Point Examples:
Up Year Down Year
Beginning index value: 1000
Ending index value on contract anniversary: 1117
Percentage of change: %
Annual Cap: 4%
X Your Return is 4%
Beginning index value: 1000
Ending index value on contract anniversary: 900
Percentage of change: -10%
Annual Cap: 4%
X Your Return is 0%
The annual cap varies depending upon the issuing insurance company. The 4% annual cap quoted is for illustrative purposes only.

8. Monthly Average Point-to-Point Examples:
Up Year – assumed monthly cap is 4%
Month 1 2 3 4 5 6 7 8 9 10 11 12
Monthly index change (%)
2.3
-1.6
3.2
-2.3
3.4
5.1
3.8
4.3
2.4
1.9 -1
4.2
Monthly cap (%)
Capped monthly change (%)
X Your return is 2.42%
Down Year – assumed monthly cap is 3%
Month 1 2 3 4 5 6 7 8 9 10 11 12
Monthly index change (%)
-5.1
-3.2 -4
-1.2
-2.2 -5
1.3
Monthly cap (%)
Capped monthly change (%)
X Your return is 0.78%
On each monthly anniversary the index gain or loss percentage is calculated from the previous monthly anniversary index number. Percentage gains are recorded up to the cap, percentage losses are not recorded. At the policy anniversary, the recorded changes are averaged together, and if positive, that is the interest credit for the year. If negative, there is not interest credited for the year.

9. Monthly Sum Point-to-Point Examples:
Up Year – assumed monthly cap is 2.5%
Month 1 2 3 4 5 6 7 8 9 10 11 12
Monthly index change (%)
2.3
1.6
-3.2
-2.3
0.4
2.1
3.8
-3.3
2.4
1.9 -1
4.2
Monthly cap (%)
Capped monthly change (%)
X Your return is 8.5%
Down Year – assumed monthly cap is 3%
Month 1 2 3 4 5 6 7 8 9 10 11 12
Monthly index change (%)
-5.1
-3.2 -4
-1.2
-2.2 -5
1.3
Monthly cap (%)
Capped monthly change (%)
X Your return is 0%
On each monthly anniversary the index gain or loss percentage is calculated from the previous monthly anniversary index number. Percentage gains are recorded up to the cap, percentage losses are recorded with no cap. At the policy anniversary, the recorded changes are added together, and if positive, that is the interest credit for the year. If negative, there is not interest credited for the year.

10. Annual Point-to-Point -Annual Reset
The Power of Annual Reset You may reduce your risk during the down years!
Annual Point-to-Point -Annual Reset
$100,000 PAYMENT
Market Fluctuation
S&P 500 Index Fund
Fixed Index Annuity
VALUE
$100,000
Year 1
26.7%
$126,700
$108,000
Year 2
19.5%
$151,407
$116,640
Year 3
-12.7
$132,178
Year 4
-10.5%
$118,300
Year 5
-23.4%
$90,618
Year 6
26.4%
$114,451
$125,971
Year 7
9.0%
$124,850
$136,049
Year 8
4.7%
$130,718
$142,443
Year 9
11.6%
$145,881
$153,839
Participation rate is defined as how much of the increase in the index will be used to calculate the index-linked interest.
Annual Reset is defined as the index-linked interest, if any, is determined each year by comparing the index value at the end of the contract with the index value at the start of the contract year. Interest is added to your annuity each year during the term.
Power of annual reset may reduce your risk during down years.
100% Participation Rate 8% Cap No Fee
The annual cap varies depending upon the issuing insurance company. The 8% annual cap quoted is for illustrative purposes only.

11. Monthly Point-to-Point -Annual Reset
The Power of Annual Reset You may reduce your risk during the down years!
Monthly Point-to-Point -Annual Reset
$100,000 PAYMENT
Market Fluctuation
S&P 500 Index Fund
Fixed Index Annuity
VALUE
$100,000
Year 1
26.7%
$126,700
$109,184
Year 2
19.5%
$151,407
$117,141
Year 3
-12.7
$132,178
Year 4
-10.5%
$118,300
Year 5
-23.4%
$90,618
Year 6
26.4%
$114,451
$134,059
Year 7
9.0%
$124,850
$143,005
Year 8
4.7%
$130,718
Year 9
11.6%
$145,881
$159,312
Participation rate is defined as how much of the increase in the index will be used to calculate the index-linked interest.
Annual Reset is defined as the index-linked interest, if any, is determined each year by comparing the index value at the end of the contract with the index value at the start of the contract year. Interest is added to your annuity each year during the term.
Power of annual reset may reduce your risk during down years
Regardless of the index strategy used, the value goes up in an up year and remains level in a down year.
100% Participation Rate 2.45% Monthly Cap No Fee
The monthly cap varies depending upon the issuing insurance company. The 2.45% monthly cap quoted is for illustrative purposes only.

12. The Safety of Fixed Indexed Annuities
All fixed annuities are backed by the claims paying ability of the insurance company offering them. The insurance companies are subject to strict guidelines established by the National Association of Insurance Commissioners and must strive to conservatively invest the premium funds to provide a minimum return.
Additionally individual states may require insurance companies doing business in their state to contribute to the Life and Health Guarantee Association, which may help should an insurance company fail to meet the obligations of their contract holders, up to the guidelines published by the state.
Mary Lou Dobbs You may wonder if a fixed indexed annuity is really safe…(read slide)
920 Candelaria NW
Albuquerque, New Mexico 87107
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