Thrive Retirement Income Solution

Key Benefits of Thrive® • A guaranteed, COLA adjusted income stream regardless of market conditions • Uses less assets to secure guaranteed income • Leaves more assets growing without withdrawal drag • Uses time-tested simple products – SPIA, DIA & SPDA • Tax efficient: order of use of money & tax-exclusion ratio • More tax efficient that other approaches, saving and growing assets that would have been lost to taxes 4 © 2009 Thrive Income Distribution System LLC

Benefits for Producers • Simple, simple, simple … yet most powerful retirement income platform on the market or your money back! • Prospect with pre-retirees as well as retirees • Emotionally powerful, with greater control & flexibility • Leads to more cases closed • Helps you win more assets and increase ticket sizes • Easy-to-used web-based platform • Works on the iPhone and other devices with compatible browsers, allowing you use anytime, anyplace, at your convenience! • Marketing support provided via our producer website 5 © 2009 Thrive Income Distribution System LLC

® Thrive Solution: Key Underlying Concepts Income Growth + A Client’s Assets “Wheat” “Chaff” Value of assets not needed Value of assets needed for COLA-adjusted income to create a stream of and used to replenish and COLA-adjusted potentially grow the portfolio retirement income with precision 8 © 2009 Thrive Income Distribution System LLC

® Thrive Utilizes the Power of Designated Periods • Creates known value for income stream, allowing precise return calculation • The designated payments are guaranteed dead or alive retaining the full value of the Wheat assets for the heirs • Maximizes tax-excludable income (via exclusion ratio) for non-qualified assets • Coordinates with other income sources; flexible enough to handle stops and starts 9 © 2009 Thrive Income Distribution System LLC

So What’s Different About DIAs? Income Annuity Contracts With a TWIST! TWIST! • Deferrals from 1 to as many as 30 years • Purchase price, payout period and internal rate of return (IRR) are set contractually at issue • Results in one of the lowest present values to contractually pre-fund an income stream • Laddered DIAs improve on laddered SPIAs 10 © 2009 Thrive Income Distribution System LLC

Objective Solution Guarantee Income for Life Laddered, period certain DIA and SPIA contracts Minimize Taxes for NQ money Maximize use of tax exclusion ratio under FIBO® Provide benefit for Qualified Create “RMD CompressionTM” opportunities money Maximize SS benefit Strategy to utilize “Deferred Social Security Bridge” Simultaneously maximize Divide assets between “wheat” and “chaff”, return on investments AND guaranteed income gives freedom to invest guarantee income chaff with longer time horizon © 2009 Thrive Income Distribution System LLC

Case: Sam Simple Facts Goals Current age 55 Retirement age 65 Pension (monthly) 0 Plan to age 85 Retirement need monthly $7,500 Social Security age 65 $1,625 COLA 3% COLA 3% Minimum liquidity target $100,000 Legacy Maximize Initial Income Gap: $5,875 Legacy growth 5% Tax rate 20% NQ IRA $600,000 Roth $250,000 $150,000 Taxable gain or lower-yielding Taxable Non-Taxable municipal bond; no federal tax distribution distribution 14 © 2009 Thrive Income Distribution System LLC

Thrive® 3-Bucket Method Match Place Net Create the Top- Determine Bottom- Wheat to Cash Two- Layer: After-Tax Layer: the Flows in Layered Buckets 1 Income Bank Income Gap Bucket 0 Cake &2 Gap Account 15 © 2009 Thrive Income Distribution System LLC

Investable Assets: $1,000,000 Wheat Chaff Deposit = $696K Deposit = $304K Payout Period Payout Period Payout Period 2019-2024 2024-2039 2024-2039 Extra income from 0% COLA 3% COLA 3% COLA Wheat and RMDs $313,971 Bucket 2 Bucket 1 Bucket 2 NQ NQ Q $648,291 $372K $226K $96K Sam’s $5,628/month $5,218/month $1,347/month $313,990 Roth NQ $150,000 Sam’s $0 IRA $1,970 $3,658 $3,428 $1,790 $1,347 $0 $153,942 Taxable Principal Taxable Principal Taxable Principal Potential value in 2039 = Total guaranteed income = $1,849,213 $1,276,252 (@5%, not guaranteed)16 © 2009 Thrive Income Distribution System LLC

Thrive® System Flow Generate Gather info Create or Request View and Create a from Client Modify and enter Scenario Present Case Client Fact Finder Scenarios Quotes Results Proposal 19 © 2009 Thrive Income Distribution System LLC

* Add-on Sales Opportunities * Chaff is an opportunity to position annuities for asset growth without “withdrawal drag” Longevity Insurance – what if you outlive the life expectancy age? Life insurance – what if you die too soon? Fund a non-MEC with a SPIA or a DIA LTC insurance – your income and your assets can be consumed by an LTC event 23 © 2009 Thrive Income Distribution System LLC

Thrive® vs. Any Product 1. Addresses most retirement challenges and risks - no one product can – by including multiple products 2. The income stream is COLA-adjusted and guaranteed 3. Uses less of the asset portfolio even with guarantees 4. Addresses taxes … no one lives on pre-tax income 5. Better story for positioning longevity insurance 6. Better legacy impact … “free assets” stay invested without a “withdrawal drag” 7. Easily integrates Life & LTC sales and funding 8. Three powerful derivative sales strategies 9. More emotionally appealing = much higher close rates 10. The whole is more than the sum of the product parts 25 © 2009 Thrive Income Distribution System LLC

Thrive® vs. Multi-Buckets 1. Use with pre-retirees for guaranteed income later 2. Income independent of future assumptions & markets 3. Income stream is smooth and COLA-adjusted 4. Uses less of the asset portfolio even with guarantees 5. Doesn’t require use of securities or their returns 6. Addresses taxes … no one lives on pre-tax income 7. Better story for longevity insurance & deferred annuity 8. Better legacy impact … “free assets” stay invested 9. Provides 3 powerful derivative stories: SS stretch, Roth conversion and RMD compression 10. Easily integrates Life & LTC sales and funding 26 © 2009 Thrive Income Distribution System LLC

Thrive Retirement Income Solution

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