NAIFA Convention & Career Conference Orlando World Center Marriott Resort September 15, 2009

1. NAIFA Convention & Career ConferenceOrlando World Center Marriott ResortSeptember 15, 2009 Optimizing the Retirement Income Planning Process Steven L. Welton, CLU ChFC Vice President, Strategic Marketing UNIFI Companies For broker/agent use only - Not for use with clients

2. Retirement Income • Definition: -The stage at which a household’s focus switches from accumulating assets for retirement to using those assets to provide a lasting and predictable stream of income that will maintain a desired standard of living -At this stage, the household is in need of tax-efficient financial advice and solutions to establish that reliable income stream and to minimize the risks on those potentially declining assets to provide a satisfactory and manageable sense of well being. For broker/agent use only - Not for use with clients

3. Market Need Positioning for Retirement Income Planning For broker/agent use only - Not for use with clients

4. Practice Readiness Skills and Competencies: Insurance Investments Social Security Health Care Real Estate Elder Care issues Designations: CASL American College CRPC College for Financial Planning CRC InFRE Tools and Process Changing Practice Economics For broker/agent use only - Not for use with clients

5. Health Care Expert Mortgage Broker Accountant Real Estate Agent Other Financial Advisor Insurance Agent Attorney Tax/Estate Expert Expanding Professional Networks For broker/agent use only - Not for use with clients

6. Advice-Based Planning For broker/agent use only - Not for use with clients

7. Pre-Retirees May Change Advisors To Get The Services They Need Source: McKinsey & Co. “Managing Retirement Income: Innovative Strategies to Capture and Retain Retirement Income,” 2006 No change Added or switched brokers and advisors within 15 years of retirement For broker/agent use only - Not for use with clients

8. Fidelity Research When a retirement income plan was developed: - 50% more clients were very satisfied - 77% of clients did or would consolidate - 95% of those clients would provide referrals Source: Fidelity Advisor 2006 Survey of Investors at Retirement For broker/agent use only - Not for use with clients

9. Retirement Income Management Process 5. Convert resources into income 6. Maintain and update the plan 6. Maintain and update the plan 4. Identify options for addressing gaps 1. Estimate duration of retirement assets 2. Identify and manage retirement risks 3. Identify distribution, tax and estate issues and opportunities Data Collection Source: InFRE – International Foundation for Retirement Education, 2009 For broker/agent use only - Not for use with clients

10. Advisor Less experienced, and more product oriented Advisor Approach to Market More experienced, and more advice oriented MARKET More Upscale and/or Pre-retirement Comprehensive Tool Advisor 1. Comprehensive Plan and Product Solution A Simple Tool Development of a Simplified Plan Multiple Product Solution Advisor 2. Customers B Single Packaged Concept Pre-defined Product Concept Advisor Simple Tool or Calculator 3. C MARKET Less Upscale and/or Post -retirement For broker/agent use only - Not for use with clients

11. Planning Tools • Development of a Retirement Income Plan • Goals based • Cash flow based • Identify essential vs. discretionary expenses • Additional Planning Capability: • Accounts you manage • Outside accounts • Asset Allocation • Client Management For broker/agent use only - Not for use with clients

12. How To Manage Retirement Income Essential Expenses Discretionary Spending Fill Income Gap (A) Fill Income Gap (B) • Lifetime Income Sources • Social Security • Pensions • Annuities • Other lifetime income sources • Managed Income Sources • Taxable assets • Personal retirement accounts • Employment income • Other variable sources Source: InFRE – International Foundation for Retirement Education, 2009 For broker/agent use only - Not for use with clients

13. Planning Tools Other important considerations: • Client profile • Learning curve • Anticipated usage • Back office support For broker/agent use only - Not for use with clients

14. Planning Tools Comprehensive Planning Calculators For broker/agent use only - Not for use with clients

15. eMoney Advisor Licensed advisors have access to their own personal branded, representative website. This allows monitoring of a client’s assets and liabilities, as well as creation of in-depth cash flow analysis, or modular based scenarios. For broker/agent use only - Not for use with clients

16. One of the features of the Wealth Management System is the ability to create a customized financial plan to suit any client situation. For broker/agent use only - Not for use with clients

17. Comprehensive Planning Planning for retirement incorporates all of the elements of financial planning. You must account for income, expenses, investments, and taxes. • The Retirement Income planning process covers: • Looking at retirement timeframes and longevity issues. • Analyzing your basic and discretionary retirement expenses. • Understanding your guaranteed sources of income. • Planning your reliable income for a strong retirement foundation. • Understanding risk and the power of time in investing. • Developing a long-term investment strategy. • Creating an asset withdrawal strategy. • Protecting your plan. • Implementing and maintaining your plan. For broker/agent use only - Not for use with clients

18. Retirement Income Module The Retirement Income Tool allows you to monitor your client’s income during their retirement years. The system allows you to perform several techniques and stress tests. For broker/agent use only - Not for use with clients

19. Another feature of the Retirement Income Tool, an in-depth spending analysis, keeping your client on track during their retirement years. For broker/agent use only - Not for use with clients

20. Client Personal Home Page The client’s Personal Financial Home Page is where daily updates of all accounts are located in one customized website, accessible anywhere an internet connection is available. For broker/agent use only - Not for use with clients

21. Electronic Document Storage The Vault is an online secure storage facility that houses and protects a client’s valuable, personal documents such as wills, trusts, insurance documents and passports in an electronic format. Video and sound clips can also be stored. The Vault is an excellent safeguard against storms or other natural disasters. For broker/agent use only - Not for use with clients

22. Annuitization Living Benefits Methodologies Annuity Payouts For broker/agent use only - Not for use with clients

23. Sustainable Withdrawal Rates Bucket Strategy Methodologies Systematic Withdrawals For broker/agent use only - Not for use with clients

24. Methodologies Income Only Plans Dividends CD Real Estate Bonds Life Insurance Laddering Rental Income REITs Reverse Mortgages For broker/agent use only - Not for use with clients

25. Income Strategies Income Generating Products Product Solutions * Tax free income is based on withdrawals to basis then loans. Loans and withdrawals will reduce the policy’s death benefit and cash value and may cause the policy to lapse. Adverse tax consequences may occur if the policy lapses. For broker/agent use only - Not for use with clients

26. Income Strategies Income Generating Products Product Solutions (cont’d) For broker/agent use only - Not for use with clients

27. Income Strategies Income Generating Products Product Solutions (cont’d) For broker/agent use only - Not for use with clients

28. Advisor Best Practices For broker/agent use only - Not for use with clients