This document discusses strategies for guaranteed retirement income. It begins by identifying harmful risks as the first priority, rather than immediately seeking investment opportunities. It then discusses how volatility in the markets can make it difficult to achieve retirement goals, and how diversification alone may not sufficiently reduce risk. The document suggests that the traditional "4% withdrawal rule" no longer applies for most retirees due to increased market volatility. It presents alternatives like guaranteed lifetime income products that can provide protected retirement income without market risk.

1. Guaranteed
Retirement
Income
Strategies
For Those In or About To
Enter Retirement

2. Help Me Finish This Sentence
“The greater the risk,
the greater the .”
Is that really true?
Reward

3. Source: http://www.merriam-webster.com/dictionary/risk
Risk – (Definition)
Risk:
noun ˈrisk
The possibility of loss or injury
The chance that an investment (as a stock
or commodity) will lose value

4. Let’s Try This Again.
The greater the risk,
the greater the…
Chance for Loss!

5. Identify Common Problems Discover
Uncommon Solutions
Common:
Many people research markets, read publications,
and speak to advisors in search of opportunities.
Uncommon:
Fewer people dedicate time clearly identifying
potential harm to their assets.

6. Fundamental Decisions for Retirement Success
1st
First, identify harmful risks.
Second, seek reasonable opportunities.
2nd

7. Markets rise and fall on a daily basis. Accessing your
money at the wrong moment can dramatically affect
how long your retirement dollars may last.
Volatility

8. Volatility
Riding the financial roller coaster can
make it difficult to hit a bull’s eye on your
personal retirement goals.

9. Common Suggestions?
How do we reduce the
impact of volatility?
Diversify!

10. Common Suggestions?
How do we reduce the
impact of volatility?
Common diversification may not the answer.
You might need uncommon diversification.

11. Source: https://www.google.com/finance
Compound Annual Growth Rate? 2.68%

12. “Is the 4% Rule Still Appropriate?”
“The 4 percent rule no longer applies for most retirees.”
Sources: http://www.cnbc.com/id/102605878 &
http://www.schwab.com/public/schwab/nn/articles/Is-the-4-Percent-Rule-Still-Appropriate
Monthly Income Assets Needed
$500 $150,000
$1,000 $300,000
$2,000 $600,000
$3,000 $900,000
$4,000 $1,200,000
$5,000 $1,500,000
$6,000 $1,800,000
The 4% Rule?

13. “The 4 percent rule is Not Safe...”
Why?
Sources: http://www.cnbc.com/id/102605878 &
http://www.schwab.com/public/schwab/nn/articles/Is-the-4-Percent-Rule-Still-Appropriate
VOLATILITY!
“The 4 percent rule no longer
applies for most retirees.”

14. “The 4 percent rule is Not Safe...”
Sources: http://www.cnbc.com/id/102605878 &
http://www.schwab.com/public/schwab/nn/articles/Is-the-4-Percent-Rule-Still-Appropriate
“The 4 percent rule no longer
applies for most retirees.”
It’s not that the stock market never
goes up – It does go up. The problem
is this – Sometimes it goes down.

15. It would take far less money to
generate the same income.
What if there were a 6% rule?
Monthly
Income
Assets Needed
4% Rule
Assets Needed
6% Rule
$500 $150,000 $100,000
$1,000 $300,000 $200,000
$2,000 $600,000 $400,000
$3,000 $900,000 $600,000
$4,000 $1,200,000 $800,000
$5,000 $1,500,000 $1,000,000
$6,000 $1,800,000 $1,200,000
Difference:
$50,000
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000

16. Commonly Available Guaranteed
Lifetime Income Rates
60 year old = 5.00%
65 year old = 5.50%
70 year old = 6.00%
75 year old = 6.50%

17. Source: NWL Income Outlook Form DM-1058.Rev10.11
Example From An Actual Company

18. Source: https://www.google.com/finance
Compound Annual Growth Rate? 2.68%
Remember This?

19. Source: https://www.google.com/finance
Remember This?
Beginning with
$100,000
Withdraw $500
Per Month (6.0%)

20. Total
Withdrawals:
$87,000
Beginning with
$100,000
Withdraw $500
Per Month (6.0%)
Source: https://www.google.com/finance
By June 2, 2014, you have run out of money.
No money left to participate when the market rebounds.

21. Source: https://www.google.com/finance
By June 2, 2014, you have run out of money.
No money left to participate when the market rebounds.
Things That Outperform This Chart
Coffee Can
Mattress
Safe
Checking Account
Savings
Money Market
CD

22. Systemic Risk
“The risk inherent to the entire
market or an entire market
segment. Systematic risk, also
known as “undiversifiable risk,”
“volatility” or “market risk,” affects
the overall market, not just a
particular stock or industry.”

23. Systemic Risk
“This type of risk is both
unpredictable and
impossible to completely
avoid. It cannot be mitigated
through diversification…”

24. Systemic Risk
Systemic Risk is
responsible for a
significant portion of
price changes you see
in a stock market.

25. Systemic Risk
So how does one
avoid Systemic Risk?
LEAVE the SYSTEM!

26. One Solution…
A Fixed Indexed Annuity (FIA)
gives you the potential to
exceed traditional fixed
interest rates by linking your
interest credits to the
performance of an external
market index.

27. Fixed Indexed Annuity
If the market index rises…
Your money grows… Tax-deferred!
START
POINT
Annuity Account Value
Leading Market Index

28. Fixed Indexed Annuity
If the market index falls…
Your money protected…
Annuity Account Value
Leading Market Index
START
POINT

29. Fixed Indexed Annuity
As the market index recovers…
Your money grows…
Annuity Account Value
Leading Market Index
START
POINT

30. Fixed Indexed Annuity
So what happens next year?
Your values will either increase or
stay the same?…
Annuity Account Value
Leading Market Index
START
POINT
Your principal and past interest credits are
always protected.