1. Longevity
What does it mean to you?

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

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

4. Running out of Money Average Life Expectancy 78.09 Years
60 Year Old Male: 20% chance of living to age Year Old Female: 30% chance of living to age Year Old Couple: 40% chance one of them lives to age 95
Data from World Bank Last updated: Mar 9,

5. Living Under Your Potential Lifestyle
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.
Data from World Bank Last updated: Mar 9,

6. Consider Your Goals Maximize Retirement Income
Protect Against Longevity Risk
Stay in Control of Your Money
What options do you have?
Data from World Bank Last updated: Mar 9,

7. Guaranteed Lifetime Income
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.

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

9. Law of Large Numbers Benefit:
Guarantee yourself an income that is based on average life expectancy without the risk of running out of money.

10. Calculating Income Gap
Jim Smith
Current Age 55
Retirement Age 65
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
Desired Retirement Income
$6,000/Month
Current Retirement income
$4,513/Month
Income Gap: $1,487/Month

11. Solving for the Income Gap
$1,487/Month = $17,844/Year
Deposit
American General (AIG) Lifetime Income Plus Rider
GMWB Base
Double initial premium after 10 years as GMWB base
$178,440
$356,880
5.00%
Withdrawal
For Life
Deposit Needed: $178,440
$17,844/Year

12. Income Goals Accomplished
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. 3.26% Accumulation Goals: Replace the Invested Assets
Assets : Qualified Money $350,000
Non Qualified Money $300,000
Total $650,000
Invested in AIG Annuity: $178,440
Remaining Assets = $471,560
What Interest Rate Do We Need to Earn?
3.26%

14. Hypothetical Accumulation
Beginning Account Value
Interest Rate
Ending Account Value 1
$ 471,560.00
3.26%
$ 486,932.86 2
$ 502,806.87 3
$ 519,198.37 4
$ 536,124.24 5
$ 553,601.89 6
$ 571,649.31 7
$ 590,285.08 8
$ 609,528.37 9
$ 629,398.99 10
$ 650,000.00

15. 10-Year plan
Jim at Age 55 Assets: $650,000 Income at Retirement: $4,513/Month Jim at Age 65 Income at Retirement: $6,000/Month

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

17. Thank you for joining us today!