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1. Facts About Fixed Index Annuities
Guarantees & Tax Deferral for
Your Retirement Planning Strategies
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5189-09 March 2009
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2. Retirement Planning
Strategies
• The good news is that
we’re living longer
• The challenge we face
is not outliving our income
PURCHASE OF AN ANNUITY IS AN IMPORTANT FINANCIAL DECISION. YOU SHOULD HAVE A FULL
DISCUSSION WITH YOUR INSURANCE AGENT BEFORE MAKING ANY DECISION.

3. Common Issues
Consumers are Facing Today
• Underestimating how much income they’ll
need after they retire
• Underestimating how long they’ll live
• Overestimating how much they can
withdraw from their portfolio without
depleting it

4. Common Priorities of Those
In or Nearing Retirement
1. Maintain financial independence
2. Avoid depending on family members for your care
3. Protect your assets and have an estate for your heirs
4. Alleviate concerns of becoming a financial burden to your
loved ones
5. Preserve your wealth created over a lifetime
6. Maximize the likelihood that you have access to
quality care
7. Avoid leaving a legacy of debt to your spouse

5. Financial Concerns
• Income to maintain a reasonable
standard of living
• Principal protection
• Outliving income

6. Financial Solutions
• How can these questions be dealt with?
• What can you do to address these concerns?
• Is there a real solution?

7. Exploring the Benefits
• Each solution offers it’s own benefits.
Some of the solutions, such as fixed
index annuities, include features to
help hedge against inflation through
tax deferral, some measure of liquidity
or provide relatively more certainty in a
fixed rate of return.

8. A Fixed Index Annuity
May Be The Solution
• Offers
– Guarantee of principal
– Tax deferral
– Flexibility
– Access to your money
– Lifetime income stream
Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.
Early withdrawals may result in loss of principal and credited interest due to surrender charges.

9. Fixed Index Annuities
• Offers interest rate guarantees
– Potential to receive credited interest based on
the growth of the client’s chosen external
market index
– Protection of your principal
Substantial federal tax penalties and surrender charges may apply to early withdrawals.
Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.

10. Fixed Index Annuities
• Principal is guaranteed*
• Supported by claims-paying ability of the
issuing insurance company
• The knowledge that your money will be
there when you may need it most - in
retirement
*Early withdrawals may result in loss of principal and credited interest due to surrender charges.

11. Fixed Index Annuities
• Monthly income
never reduced
• Insurance company
assumes the risk
• Stream of income you
cannot outlive
Guarantees are backed by the claims-paying ability of the issuing insurance company.

12. Here’s an Example
of Annual Reset
Initial
Principal
0 Year 1 Year 2 Year 3 Year 4 Year 5
Any contract anniversary index gains are locked in every year, never any losses.
Even though index results may be negative, they do not adversely affect the annuity value.
Your credited interest is locked in, even if the market drops.
Hypothetical example provided for illustrative purposes only, using one type of interest calculation method. It is not intended to
represent the results of any specific product. No single crediting method consistently delivers the most interest under all market conditions.

13. Fixed Index Annuities
• Vehicle for accumulating money on
a tax-deferred basis
– No income taxes until funds are withdrawn
– Pay taxes only on the credited interest
– May be a federal tax penalty if you’re under
age 59 ½
Early withdrawals may be subject to a surrender charge and, if taken prior to age 59 ½, are subject to a 10% federal tax penalty.
Please note that [Agent name/Company name] and their representatives do not give legal or tax advice.
You are encouraged to consult your tax advisor or attorney

14. Fixed Index Annuities
• Offers options and access to your money
– Income
– Minimum distribution payments
– Lump sum payments
• May incur surrender charge or penalty
– Credited Interest only withdrawals
– Penalty-Free annual withdrawals
Terms and conditions may vary. See the terms and conditions for each product.
Any distributions are subject to ordinary income tax and, if taken prior to age 59 1/2, a 10% federal tax penalty.

15. Fixed Index Annuities
• Life income option
– Retirement income
– What if you live for 15 or 20 years?
– A fixed index annuity is designed to help
address this concern
– Income guaranteed for life
– Only a fixed annuity or a fixed index annuity
offers this guarantee
Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.

16. Summary
• Fixed Index Annuities offer:
– Guarantee of principal
– Income you cannot outlive
– Tax deferral
Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.

17. Is a Fixed Index Annuity
Right for You?
• How long can I leave my money in
the annuity?
• What do I expect to use the money
for in the future?
• Is a guaranteed interest rate more
important to me, with less risk of
losing the principal?
• Or, am I somewhere in between these two
extremes and willing to take some risks?