Welcome to the Professional’s Approach to Rollover Concepts Presented by: LFM Fixed Strategies Insurance Services Florian Spinello Lauren Carrasco & Sarah Niss This material is intended to provide general education and is not intended to provide legal or tax advice. It is recommended that decisions be made only after consultation with qualified financial, tax and legal professionals about your specific financial situation.

Who Is LFM Fixed Strategies? LFM is a National Marketing Organization for Fixed & Indexed Annuities and Life Insurance Products Created by Experienced Producing Registered Representatives / Agents Committed to Helping Financial Professionals Address the Growing Demand for Retirement Planning and Income Strategies FOR PRODUCER USE ONLY. NOT FOR USE WITH THE PUBLIC.

Why LFM Fixed Strategies? Experience – We have a team of experienced consultants and seasoned producers to give you the guidance and expertise in your business Innovation – We offer innovative sales strategies and unique business opportunities to take you to the next level with your practice Dedication – Our support staff is ready to help you submit, track and get you paid on your business, in addition to providing a sales team who is familiar with your company philosophy FOR PRODUCER USE ONLY. NOT FOR USE WITH THE PUBLIC.

What Carriers does LFM Represent? FOR PRODUCER USE ONLY. NOT FOR USE WITH THE PUBLIC.

RE April 2004 When You Retire or Change Jobs When You Retire or Change Jobs How to Shape Your Financial Future OppenheimerFunds Rollover IRA Rollover IRA

RE April 2004 The Decision Takes a Minute, the Results Last a Lifetime Retirement: what to expect Knowing your plan options Special considerations Take action to control your future Retirement: what to expect Knowing your plan options Special considerations Take action to control your future

RE April 2004 Retirement: What to Expect Retirement lasts a long time How much you’ll need Inflation Where will the money come from? Retirement lasts a long time How much you’ll need Inflation Where will the money come from?

RE April 2004 Retirement Lasts a Long Time Source of chart data: National Center for Health Statistics, National Vital Statistics Report, Life Expectancy 1999 W 85 Yrs M 80 Yrs People spend more years in retirement today People spend more years in retirement today 66.3 Yrs 1950s

RE April 2004 How Much You’ll Need Retirement Formula 80% of Preretirement Salary Years in Retirement Amount Needed To Maintain Same Lifestyle X X Example $800,000 80% of $50,000 = $40, Years 80% of $50,000 = $40, Years X X

RE April 2004 Inflation $72, Years $40,000 Today A $40,000 per year standard of living at an annual inflation rate of 3%

RE April 2004 Where Will You Get the Money? Pension? Social Security? Part-time Work? Retirement Savings? Pension? Social Security? Part-time Work? Retirement Savings?

Defined Contribution Plans There are many types of defined contribution plans. Examples include 401(k), 403(b), SEP-IRA, SIMPLE and others. These plans share the following characteristics: –Employer-sponsored, qualified retirement plans –Tax-deferred retirement savings vehicles –Provide an individual account for each participant –The employee or the employer (or both) may contribute to the employee’s account –Participants are often responsible for investment selections –Benefits based upon contributions plus or minus income, expenses, gains or losses –Participants have choices when taking money out of plans Page 5-3

Defined Contribution Plans CHANGING JOBS? DO THE RIGHT THING. Nearly half of the people changing jobs take their retirement account in cash, pay tax penalties and lose potential tax-deferred growth. Source: Hewitt Associates, “Hewitt Data Shows U.S. Employees Cash Out of 401k Plans When Changing Jobs,” July 25, Data from Taken in cash Kept savings in current employer’s 401(k) plan Rolled over into qualified IRA or other retirement plan Retirement distributions to job changers 32% 45% 23% Page 5-3

RE April Take the Cash Advantages You get the money right away Disadvantages You’ll pay a very high price Advantages You get the money right away Disadvantages You’ll pay a very high price

RE April Take the Cash You’ll pay a very high price 1. Hypothetical example assumes a 28% federal tax rate, a 5% state tax rate and a 10% early withdrawal penalty if under age 59 ½. Your tax rates may be higher or lower. $10,000initial distribution – 2,800federal income tax – 500 state income tax – 1,000penalty tax $10,000initial distribution – 2,800federal income tax – 500 state income tax – 1,000penalty tax $5,700could be all you see of your original $10,000. 1

RE April Take the Cash You’ll pay a very high price 1. Hypothetical example assumes a 28% federal tax rate, a 5% state tax rate, a 10% early withdrawal penalty if under age 59 ½ and a 9% fixed rate of return. Example is not intended to reflect the performance of any Oppenheimer fund. Your tax rates and rate of return may be higher or lower. Growth of $10,000 Over 25 Years 1 No Rollover, AfterRollover, Taxes & Penalties Tax-deferred $24,637 $10,000 $24,637 $10,000 $57,774 $10,000 $57,774 $10,000

Additional Tools to Assist in Closing Business Detailed financial profile Prospective client illustrations Agent product packet FOR PRODUCER USE ONLY. NOT FOR USE WITH THE PUBLIC.

LICENSING! 52 Hour Class & Paperwork –Sal Magturo Regional Sales Manager –Lauren Carrasco FOR PRODUCER USE ONLY. NOT FOR USE WITH THE PUBLIC.

Let’s do some Business! Thank You! FOR PRODUCER USE ONLY. NOT FOR USE WITH THE PUBLIC.