Oak Brook Benefit Resources

1. Oak Brook Benefit Resources 2625 Butterfield Rd., Suite 224S Oak Brook, Illinois 60523 630-954-3444 Thomas J. Murphy, CLU Patty Tipton, CLU

2. Asset protection in retirement

3. Consider Your Income Needs

4. When reviewing the income sources you have along with your projected lifestyle expenses • Will your essential expenses be covered by income sources that are reliable, consistent and protected? • Or, will you need to tap into investments that have more flexibility and exposure to market volatility?

5. Concerns Facing Your Retirement Dollars • Safety • Accessibility • Taxation • Outliving your income • Locking in interest credits • Probate Costs

6. Is Wall StreetThe Answer?

7. Bear Markets(S&P 500 1929-2009)

8. Losses Hurt

9. Facts About The S&P 500 Index • It consists of 500 companies that are listed on the New York Stock Exchange, American Stock Exchange and NASDAQ • Recognized since 1923, as the preferred benchmark of the U.S. stock market and the U.S. economy The S&P 500 Index is simply a representative number indicating the movement of the 500 companies that make up the index

10. S&P 500 Index vs. Managed Funds • Only 19% of all actively managed funds, with managers whose job it is to pick winning stocks, beat the S&P in 2006 • Out of more than 8,000 mutual funds, Manu’s Daftary Quaker Strategic Growth Fund, is the only one that has out-performed the S&P 500 for the past eight calendar years

11. Predicting the MarketThe rise and fall of the market are beyond anyone’s control • As the stock bubble was bursting in 2000 - 95% of all stocks in the S&P 500 had no sell recommendation • “The idea that any individual can beat the market is extraordinarily unlikely. Yet the market is full of people who think they can and full of other people who believe them. This is one of the great mysteries of finance. Why do people believe they can do the impossible? And why do other people believe them?

12. Where Should My Money Go? Do I invest in Wall Street for greater upside potential and take the risk of market downturns? OR Do I invest for a high degree of safety to avoid losses and miss out on market gains?

13. Introducing Indexed AnnuitiesThe Best of Both Worlds • Principal is always protected from market risk • Interest earnings are based on a percentage of the upward movement of an index such as the S&P 500 while providing a minimum guaranteed return • Annual gains are “locked in” and can never be lost due to future market declines In other words - We win by not losing

14. Win By Not LosingKeeping your money safe

15. Concerns Facing Your Retirement Dollars • Safety • Accessibility • Taxation • Outliving your income • Locking in interest credits • Probate Costs

16. Safety • Competitive yield with guarantees • Diversification • Fixed Interest Rate • Bond Indexed – Linked • Equity Indexed – Linked • Never lose money due to market downturn • Automatically locks in gains • No Upfront sales charges • Some offer a bonus on all new money for five years or longer • Only insurance companies have regulatory reserve requirements with conservative portfolios and high liquidity to meet contract owners’ needs

17. Accessibility • Annuities have guaranteed, penalty-free withdrawal options that allow you to access a portion of your money without paying any penalties or charges • In the event you are confined to a nursing home, you have access to a larger portion of your money, penalty-free • A guaranteed lifetime income access to money in case of emergencies is preserved

18. Taxation • How annuities really work • Earnings compound on top of principal • Earnings compound on top of earnings • And earnings compound on top of the dollars that you normally send to the government in taxes • You do not pay taxes on your annuity’s growth until you take it out

19. Outliving Your Income We are living longer . . . In 2000, there were 50,000 people age 100 years or older. In the year 2010 there were over 131,000 people age 100 or older!

20. Outliving Your Income You need two guarantees for your retirement income: • Income that remains constant even when interest rates decline • Income for your entire life, no matter how long you live

21. Locking In Interest Rates

22. Probate Cost • An annuity, with a properly designated beneficiary, may bypass the probate process and may avoid probate administrative costs, fee, delays and publicity • Therefore, at your death, more of your money goes to the family members you choose.

23. Retirement Planning is About Managing Risk • Risk of inflation and taxation eroding retirement savings • Risk of market downturns depleting needed assets and income • Risk of outliving your money • Risk of long-term care

24. The Most Asked Questions About Long Term Care Planning

25. WHY IS PLANNING IMPORTANT? Needing long term care places an enormous emotional and physical strain on loved ones and family members. That’s why having a plan is so important.

26. What are the Odds I’ll Need Care? The U.S. Government reports that 70% of people who reach age 65 will require long-term care services at some point in their lives. Your long-term care planning today must prepare for future costs. Double the costs for a couple.

27. What’s The Best Age to Start Planning? You will never be younger or healthier than you are today. That’s the reason to start planning now when you have the most options. When Individuals Apply: New Coverage by Age Applicants Rejected for Unacceptable Health Age 55 – 64 54% Under 54 26.5% Age 65+ 19.5% Ages 80+ 80% Ages 70-79 45% Ages 60-69 23% Ages 50-59 14%

28. What Are The Most Important Questions to Ask? • Where do I ultimately want to receive care – at home, in an assisted living community, or a nursing home? • What does care cost where I live – now or where I plan to retire? • What discounts do I qualify for? • Does my employer offer a long term care insurance benefit? Your Real Risks After Reaching Age 65, Men (M) – Women (W) M W W 72.0% M 44.0% W 18.0% M 15.5% 2.2% 2.6% Major House Fire Severe Car Accident Needing Long-Term Care

29. Why is it Important for Women to Plan? Women are often impacted as providers of care for spouse and, ultimately, as recipients of care. Planning is especially important for women living alone. Women Benefit More From LTC Insurance 67% of all long-term care insurance benefits are paid for care received by women. Single Women 41% Single Men 12% Married Women 24% Married Men 22%

30. What Does Medicare Cover? Very little because it is restricted largely to specific illnesses and injuries for short periods of time. MEDICAID is a joint federal and state program for those with low income and financial resources and only pays after you have depleted your personal assets.

31. Why Buy Something I Might Never Use? The two largest claims to date have exceeded $1 million. In 2010, the 10 largest LTC insurers paid over $10.8 million daily to 135,000 policyholders

32. Can I Get Care in My Own Home? Yes. Most long-term care insurance policies today enable you to receive qualifying care in your own home and that’s one of the reasons to consider coverage.

33. How Much Coverage is the Right Amount? • Find out costs for care where you live or hope to retire • Be sure your coverage includes an inflation growth option so your pool of benefits increases each year • Ask about a “shared care” option that enables couples to link their policies in order to share benefits in the event one person’s benefits are exhausted

34. What Do They Buy? New Sales By Benefit Period 2 Years or Less 8.5% 3 Years 29.5% 4 Years 18.5% 5 Years 22.0% 6-10 Years 12.0% Lifetime 9.5%

35. What’s My Next Step? • Speak with a professional who specializes in this area • Find out what coverage costs • See if you can qualify • Ask what discounts you qualify for • There is never a cost or obligation when you request this information

36. Thank you for attending Congratulations to Dr. Flores Enjoy the weekend and the Induction Ball! Oak Brook Benefit Resources Tom Murphy, CLU Patty Tipton, CLU 630-954-3444 630-817-7041