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Transitioning from accumulating retirement assets to taking income distributions Presenter Name Registered Representative Date Cracking the Nest Egg C09-0522-015FINRA.

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Presentation on theme: "Transitioning from accumulating retirement assets to taking income distributions Presenter Name Registered Representative Date Cracking the Nest Egg C09-0522-015FINRA."— Presentation transcript:

1 Transitioning from accumulating retirement assets to taking income distributions Presenter Name Registered Representative Date Cracking the Nest Egg C FINRA Filing # _________________

2 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments2 Important Information Insurance products, annuities and retirement plan funding issued by (third party administrative services may also be provided by) ING Life Insurance and Annuity Company ( Windsor, CT). Securities are distributed by ING Financial Advisers, LLC (member SIPC), Windsor, CT or through other broker/dealers with which it has selling agreements. Annuities may also be issued by ReliaStar Life Insurance Company (Minneapolis, MN) and ReliaStar Life Insurance Company of New York (Woodbury, NY). Variable annuities issued by ReliaStar Life Insurance Company are distributed by ING Financial Advisers, LLC. Variable annuities issued by ING USA Annuity and Life Insurance Company and ReliaStar Life Insurance Company of New York are distributed by Directed Service, LLC. Only ING Life Insurance Annuity Company and ReliaStar Life Insurance Company of New York are admitted and issue products in the state of New York. All companies are members of the ING Family of companies. © 2009 ING North America Insurance Corporation.

3 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments3 Important Information Insurance products, annuities and retirement plan funding issued by (third party administrative services may also be provided by) ING Life Insurance and Annuity Company ( Windsor, CT). Securities are distributed by ING Financial Advisers, LLC (member SIPC), Windsor, CT or through other broker/dealers with which it has selling agreements. Annuities may also be issued by ING USA Annuity and Life Insurance Company (Des Moines, IA) and are distributed by Directed Services, LLC. All companies are members of the ING Family of companies. © 2009 ING North America Insurance Corporation.

4 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments4 Important Information Securities and [financial planning] offered through ING Financial Advisers, LLC (member SIPC), One Orange Way, Windsor, CT, © 2009 ING North America Insurance Corporation.

5 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments5 Important Information Recordkeeping and Plan administrative services provided by ING Institutional Plan Services, LLC. © 2009 ING North America Insurance Corporation.

6 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments6 Important Information Framewor(k) and (k)Choice Recordkeeping and Plan administrative services provided by ING Institutional Plan Services, LLC. Mutual funds offered through ING Financial Advisers, LLC (member SIPC). © 2009 ING North America Insurance Corporation.

7 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments7 Important Information (continued) Variable annuities, group annuities or funding agreements are long-term investments designed for retirement purposes. If withdrawals are taken prior to age 59 1/2, an IRA 10% premature distribution penalty tax may apply. Money taken from the annuity will be taxed as ordinary income in the year the money is distributed. An annuity does not provide any additional tax deferral benefit, as tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you. Variable investments, of any kind, are not guaranteed and are subject to investment risk including the possible loss of principal. The investment return and principal value of the security will fluctuate so that when redeemed, it may be worth more of less than the original investment. In addition, there is no guarantee that any variable investment option will meet its stated objective. For 403(b)(1) annuities, the Internal Revenue Code (IRC) generally prohibits withdrawals of 403(b) salary reduction contributions and earnings on such contributions prior to death, disability and age 50 ½, severance of employment, or financial hardship. Amounts held in a 403(b)(1) annuity as of 12/31/1988 are “grandfathered” and are not subject to these restrictions. For 403(b)(7) custodial accounts, the IRC generally prohibits withdrawals of any contributions and attributable earnings prior to death, disability, age 59 ½, severance of employment, or financial hardship. For both 403(b)(1) annuities and 403(b)(7) custodial accounts, the amount available for hardship is limited to the lesser of the amount necessary to relieve the hardship, or the account value as of 12/31/1988, plus the amount of any salary reduction contributions made after 12/31/1988 (exclusive of any earnings). You should consider the investment objectives, risk, and charges and expenses of the investment options carefully before investing. Fund prospectuses contain this and other information and can be obtained by contacting your local ING representative. Please read carefully before investing.

8 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments8 Important Information (continued) Variable annuities, group annuities or funding agreements are long-term investments designed for retirement purposes. If withdrawals are taken prior to age 59 1/2, an IRA 10% premature distribution penalty tax may apply. Money taken from the annuity will be taxed as ordinary income in the year the money is distributed. An annuity does not provide any additional tax deferral benefit, as tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you. Variable investments, of any kind, are not guaranteed and are subject to investment risk including the possible loss of principal. The investment return and principal value of the security will fluctuate so that when redeemed, it may be worth more of less than the original investment. In addition, there is no guarantee that any variable investment option will meet its stated objective. For 403(b)(1) annuities, the Internal Revenue Code (IRC) generally prohibits withdrawals of 403(b) salary reduction contributions and earnings on such contributions prior to death, disability and age 50 ½, severance of employment, or financial hardship. Amounts held in a 403(b)(1) annuity as of 12/31/1988 are “grandfathered” and are not subject to these restrictions. For 403(b)(7) custodial accounts, the IRC generally prohibits withdrawals of any contributions and attributable earnings prior to death, disability, age 59 ½, severance of employment, or financial hardship. For both 403(b)(1) annuities and 403(b)(7) custodial accounts, the amount available for hardship is limited to the lesser of the amount necessary to relieve the hardship, or the account value as of 12/31/1988, plus the amount of any salary reduction contributions made after 12/31/1988 (exclusive of any earnings). 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. You should consider the investment objectives, risk, and charges and expenses of the investment options carefully before investing. Fund prospectuses contain this and other information and can be obtained by contacting your local ING representative. Please read carefully before investing.

9 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments9 Important Information (continued) You should consider the investment objectives, risk, and charges and expenses of the investment options carefully before investing. Fund prospectuses contain this and other information and can be obtained by contacting your local ING representative. Please read carefully before investing.

10 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments10 Important Information (continued) This presentation/seminar contains information regarding insurance products for sale.

11 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments11 Retire 1: To go away, retreat, recede 2: to give up one’s work, business, career due to advanced age 3: to go to bed 4: to withdraw as in battle 5: to remove from circulation 6: to move to a place of privacy or seclusion 7: to withdraw from contact with othersRetire What does ‘Retire’ mean?

12 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments12 What does ‘Retire’ mean? Travel?Family? Hobbies? What does retirement mean to you?

13 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments13 Longer life Better health Early/late retirement Second career Leisure activities Fewer pensions Less Social Security More personal savings Higher healthcare costs What Retirement Looks Like

14 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments year old female: 1 in 2 chance of living past age year old male: 1 in 2 chance of living past age Your Time in Retirement How long do you expect to live in retirement… the next 1/3 of your life? The truth is, you may need to live without a paycheck, as long as you have lived with one. How much will you need? Funding for your future goals SOURCE: Based on current Annuity 2000 Mortality Table assuming relatively good health. Society of Actuaries, Longevity: The Underlying Driver of Retirement Risk – 2005 Risks and Process of Retirement Survey Report (2006). Your Age Employer’s Checks

15 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments15 What Retirement Looks Like Stage One Go Stage Three No Go Stage Two Slow Go Retirement isn’t just a new stage of life. It can have three stages, each with its own characteristics and costs.

16 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments16 For illustrative purposes only. This example may not reflect your actual situation. Essential vs. Discretionary Expenses Determining Retirement Income Needs

17 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments17 Funding Your Retirement Other Personal Savings, Part-Time Work 60% Pensions* or Other Savings 21% Social Security* 19% SOURCE: Social Security Brief #25, National Academy of Social Insurance, May Persons 65+, income $44k+ No matter what goes into yours, chances are, your own personal savings will be the biggest piece of the pie. *If applicable

18 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments18 Methods for Generating Retirement Income Method 1: Lump Sums as Needed Method 2: Full or Partial Annuitization Method 3: Systematic Withdrawals Method 4: Guaranteed Lifetime Withdrawal Option

19 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments19 Methods for Generating Retirement Income Method 1: Lump Sums as Needed ExpenseSource Essential Living Expenses Pension and/or Social Security Essential Living Expenses Pension and/or Social Security Additional Expenses Lump sum withdrawals from personal retirement assets as needed Additional Expenses Lump sum withdrawals from personal retirement assets as needed

20 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments20 Methods for Generating Retirement Income Method 1: Lump Sums as Needed PROSCONS Potential to outperform inflation Potential to miscalculate when income needs will occur Complete flexibility in withdrawals Potential to outlive your assets Full control on how assets are invested Tax Implications

21 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments21 Methods for Generating Retirement Income Method 2: Full or Partial Annuitization Annuitization An annuity is an insurance contract that generally guarantees periodic income payments. Annuities may be annuitized immediately or deferred, over a long or short time period, or in some cases, in one single payment. Payment guarantees are based on the claims paying ability of the Issuing insurance company. Annuitization An annuity is an insurance contract that generally guarantees periodic income payments. Annuities may be annuitized immediately or deferred, over a long or short time period, or in some cases, in one single payment. Payment guarantees are based on the claims paying ability of the Issuing insurance company. Source: Investopedia.com

22 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments22 Methods for Generating Retirement Income Method 2: Full or Partial Annuitization PROSCONS Investment risk is transferred to the insurance company (N/A for variable payouts) Loose flexibility to take lump sum withdrawals Steady and predictable stream of income Income stream may not keep up with inflation Can be for an individual or can include a spouse Cannot make adjustments to payment amount Ability to select an option so that you cannot outlive your assets Death benefits may be limited or eliminated

23 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments23 Methods for Generating Retirement Income Method 3: Systematic Withdrawals Source: Investopedia.com A service that provides a specific payout amount to the shareholder at predetermined intervals, generally monthly, quarterly, semiannually or annually without requiring annuitization.

24 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments24 Methods for Generating Retirement Income Method 3: Systematic Withdrawals PROSCONS Steady income streamCan outlive your assets Potential to outperform inflation Can be significantly impacted by poor market performance Ability to take lump sum withdrawals Can adjust amount of the payments

25 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments25 Methods for Generating Retirement Income Method 4: Guaranteed Lifetime Withdrawal Options

26 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments26 Methods for Generating Retirement Income Method 4: Guaranteed Lifetime Withdrawal Options PROSCONS Steady stream of income for lifeThe benefit can be costly Ability to take on market risk with downside protection Flexibility is limited- bound to the terms of the contract Lump sum withdrawal options available When market performance is poor lump sum withdrawals become unfavorable and may impact future income potential Riders can be complex based on complicated formulas

27 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments27 Next Steps Retirement is like a long vacation. The goal is to enjoy it the fullest, but not so fully that you run out of money.

28 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments28 Determine how to reach your retirement goals Speak to a Financial Professional Synch Up with Your Spouse Next Steps

29 Transitioning from accumulating retirement assets to taking income distributions Any Questions? Cracking the Nest Egg Compliance information to go here if needed.


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