1. Creating Your
Retirement Income
and Investment
Strategy
You’ve Worked Hard
Now It’s Time to Relax
Retirement Readiness Workshop
© 2014 PlanMember Financial Corporation

2. 2
Disclosures
This presentation is intended for general information purposes only and does not and is not intended to provide specific
investment advice or recommendations for any individual. It is suggested that you consult with your tax, legal and/or
financial services professional regarding your individual situation. Material presented is believed to be from reliable
sources, and PSEC makes no representation as to its accuracy or completeness.
Investors should carefully consider the investment objectives, risks, charges and expenses of a mutual fund before. This
and other important information is contained in the prospectuses or summary prospectuses, which can be obtained
from your PlanMember Program Representative and should be read carefully before investing. All investments may
involve risk including possible loss of principal.
The use of diversification/asset allocation as part of your investment strategy or the use of an investment advisor neither
assures nor guarantees better performance and cannot protect against loss in declining markets or ensure a profit.
Investors should consider the investment objectives of the variable annuity carefully before investing. An investment
in a variable annuity involves investment risk, including possible loss of principal. Variable annuities are designed for
long-term investing. The contract, when redeemed, may be worth more or less than the total amount invested. Variable
annuities are subject to insurance related charges including mortality and expense charges, administrative fees and the
expenses associated with the underlying funds. Withdrawals prior to age 59 ½ may result in a 10% IRS tax penalty, in
addition to any ordinary income tax. The guarantee of the annuity is backed by the financial strength of the underlying
insurance company. Investment in sub-account value will fluctuate with market conditions.
You should carefully consider the investment objectives, risks, charges and expenses of a variable annuity
and its underlying investment options before investing. For a copy of the prospectus for the annuity and
its underlying investments, which contain this and other information about variable annuities, contact
your PlanMember Program Representative. Read the prospectus carefully before you invest.
Investments are: • Not a deposit • Not FDIC or NCUS/NCUSIF insured • Not bank or credit union guaranteed
• Not Insured by any federal government agency • May lose value
PlanMember Services Program products are distributed by PlanMember Securities Corporation,
a registered broker/dealer, investment advisor and member FINRA/SIPC

3. 3
The Transition
Beginning Your Retirement Journey
• Investing IN retirement is much
different than investing FOR
retirement
• To set you retirement in motion,
you first need a detailed strategy
• It is essential to focus on planning
before deciding on investments

4. 4
Beginning Your Retirement Journey
The Excitement and Concerns
• How can I help ensure my savings
will last my lifetime?
• Will my retirement savings cover
my basic expenses?
• Will I have enough to travel or
pursue a new hobby?
• How can I invest for continued
growth while protecting against
market volatility?
• Will I be able to pass something
on to my heirs?

5. 5
The Challenges Facing Retirees
Longevity Risk
Will My Savings Last My Lifetime?
75
80
85
90
95
100
Male
Age
65
Female
Age
65
Couple
Both
Age
65
Life
Span
Probability
50%
Chance
83
24%
Chance
89
49%
Chance
86
24%
Chance
92
At
least
one
person
-­‐
51%
Chance
89
23%
Chance
94
Source:
Vanguard
Plan
for
Long
Re3rement
calculator
at
www.vanguard.com/us/insights/re3rement/plan-­‐for-­‐a-­‐long-­‐re3rement-­‐tool

6. 6
Eroding Purchasing Power
The Challenges Facing Retirees
Inflation Risk
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
1 2 3 4 5 6 7 8 9 10 11
At Retirement After 10 Years After 25 Years
2% Inflation 3% Inflation 5% Inflation

7. 7
The Challenges Facing Retirees
Market Uncertainty
Assumes $100,000 initial
investment in hypothetical
portfolios and a $10,000
withdrawal at beginning of
each year for income. This
hypothetical example is for
illustrative purposes only. It
is not intended to predict nor
guarantee any actual product
results and does not reflect
the effect of any applicable
fees, charges or taxes.
Early Negative Returns Could Affect Future Income
$0
$25,000
$50,000
$75,000
$100,000
1 2 3 4 5 6 7 8 9 10
Por$olio
1
Por$olio
2
$58,136
$26,829
Annual Returns (Hypothetical)
Year 1 2 3 4 5 6 7 8 9 10 Average
Portfolio 1 10% 10% 10% 10% 10% 10% 10% 10% -20% 10% 6.67%
Portfolio 2 10% -20% 10% 10% 10% 10% 10% 10% 10% 10% 6.67%

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Step 1 - Estimate and categorize your
retirement expenses
Step 2 - Identify your known sources
of retirement income and assets
available for generating income.
Step 3 - Determine your personal
tolerance for income variance
Step 4 - Construct your retirement
income and investment strategy with
a financial professional
It Starts with a Plan
Steps to Constructing Your Personal Strategy

9. 9
Estimating Your Retirement Expenses
Categorize Your Monthly Needs
Essential Expenses
- Housing, utilities, food, healthcare, taxes
Important Expenses
- Clothing, transportation, insurance
Discretionary Expenses
- Travel, hobbies, dining out,
entertainment, gifts
Step1

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Identifying Your Income Sources
Where Will My Income Come From?
Known Income Sources
• Social Security
• State, governmental or
corporate pensions
• Income from annuities*
• Part-time employment income
• Rental or other income
Income-Generating Assets
• Assets from 403(b), 457(b), 401(k) or other employer plan
• IRAs (Traditional or Roth)
• Home equity
• Nonqualified investments
*Guarantees and benefits subject to the claims-paying ability of the underlying insurance company.
Step2

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Considerations Include:
• Your level of comfort with
variances in your income
• Your expectation of
variances in your future
expenses
• Concern about outliving
your savings
Your Tolerance for Income Variance
How Much Guaranteed Income Do You Need?
Step3

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Constructing Your Strategy
With a Financial Professional
• Determine amount of expenses
to be covered by guaranteed
income sources
• Review current sources of
retirement income
• Re-allocate or reposition your
portfolio
• Work with a financial professional
to establish a detailed strategy
tailored to your objectives and
circumstances
Step 4
Asset allocation or the use of an investment advisor does not ensure a profit nor guarantee against a loss.

13. 13
Constructing Your Strategy
Case Study: Hypothetical Retiree Mary
Step 1– Estimate Retirement Expenses:
• Total estimated expenses throughout
retirement: $5,000/month
$2,500 Essential
$1,500 Important
$1,000 Discretionary
• Has additional Essential expense of $1,000
for first five years of retirement (mortgage)
This example is for illustrative purposes only.

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Constructing Your Strategy
Case Study: Hypothetical Retiree Mary
Step 2 – Identify Retirement Income Sources
• Guaranteed Income Sources:
$2,500/month State Retirement System benefit
$500/month deferred fixed annuity payments
from 403(b) account*
• Non-Guaranteed Assets:
Non-guaranteed 403(b) account assets: $650,000
(mutual funds)
$2,500 / Month
State Retirement System
$500 / Month
403(b)
*Guarantees and benefits are based on the claims-paying ability of the underlying insurance company. This hypothetical example
is for illustrative purposes only.

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Constructing Your Strategy
Case Study: Hypothetical Retiree Mary
Step 3 – Income Variability Tolerance
• A stable, predictable stream of retirement
income is of paramount importance
• Has high concern about outliving her savings
• Is worried about volatility in the markets
• Wants all Essential and Important expenses
covered by guaranteed sources
• Has overall low tolerance for income variability

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Step 4 – Implement
Mary’s Strategy
• Converts a portion of non-guaranteed
assets to an
immediate income annuity*
• Purchases additional five-year
period certain income annuity to cover mortgage expense
• Works with a financial professional to construct a systematic
withdrawal plan for non-guaranteed assets
Constructing Your Strategy
Case Study: Hypothetical Retiree Mary
This example is provided for illustrative purposes only and is not intended to reflect an actual investment or predict future returns.
*Income and other annuities are not insured or guaranteed by, nor obligations of, the FDIC, the NCUSIF, any government agency,
or the financial institution that sells it. All guarantees depend on the issuing insurance company’s claims-paying ability and
financial strength. Annuity purchase rates are based on interest rates, expense and life expectancy assumptions. Annuities have
limitations, exclusions, termination provisions and terms for keeping them in force. Product availability and features may vary by
state. Consult a financial professional for details.

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• Request a personalized Retirement
Income Analysis to asses your retirement
income needs and determine the level of
guaranteed income you need
• Review your current retirement investments
and income sources
• Work with a financial professional to
construct your personal retirement income
and investment strategy
Action Steps
What’s Next?
Retirement Income Analysis
Your Customized Retirement Income and Investment Plan

18. 18
Thank you. Questions?
PlanMember Services Program products are distributed by PlanMember Securities Corporation,
a registered broker/dealer, investment advisor and member FINRA/SIPC
Investments are: • Not a deposit • Not FDIC or NCUA/NCUSIF insured • Not bank or credit union guaranteed
• Not Insured by any federal government agency • May lose value
6187 Carpinteria Ave. • Carpinteria, CA • 93013 • (800) 874-6910
© 2014 PlanMember Financial Corporation
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