1. Index Annuity
Basics

2. Investment Options
Equities
Fixed Income
Cash

3. Investment Options Equities: Growth at Your Own Risk Mutual Funds
ETF’s
Stocks
Variable Annuities
Bond Funds

4. Investment Options Fixed Income: Protect Investment and Provide Income
Bonds
CDs
Fixed Annuities
Index Annuities

5. Index Annuities Protect
3 Year Hypothetical
$100,000 Premium | 5% Cap | S&P 500
Start
End
5.00% Cap
Account Value
2000
2200 =
10.00% Increase
5.00% Growth
$105,000
Start
End
5.00% Cap
Account Value
2200
1800 =
18.18% Loss
0.00% Growth
$105,000
Start
End
5.00% Cap
Account Value
1800
2000 =
11.11% Increase
5.00% Growth
$110,250
S&P500 returns were taken from Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information is current as of 7/16/ Assumed market returns are hypothetical and are not indications of future performance.

6. Index Annuities Protect
Where would you be?
Year
S&P*
Interest Credited
Index Account Value
2008
-38.5%
0.00%
$100,000
2009
+27.1%
5.00%
$105,000
2010
+12.6%
$110,250
2011
+2.1%
2.10%
$112,565
2012
+13.3%
$118,194
2013
+29.63%
$124,103
2014
+11.4%
$130,308
If the market declines all 7 years, you walk away with your original deposit of $100,000
S&P500 returns were taken from Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier.
All information is current as of 7/16/2015.

7. Index Annuities Protect
Who might be interested?
Clients looking for:
More potential on savings
Correction protection
Fixed income alternative

8. Index Annuities Protect
Correction Protection
Consider a $500,000 client portfolio fully invested in the market in 2004
$350,000
Index Annuity
$850,000
2015
$500,000
2004
$500,000
Equities

9. Index Annuities Protect
Correction Protection
S&P500 returns were taken from Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 4/29/ Assumed market returns are hypothetical and are not indications of future performance.

10. Index Annuities Protect
Correction Protection
2015: Assuming a 7% per year increasing market
1/1/2016
1/1/2017
1/1/2018
1/1/2019
1/1/2020
S&P500 returns were taken from Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 4/29/ Assumed market returns are hypothetical and are not indications of future performance.

11. Index Annuities Protect
Correction Protection
2015: Assuming a 7% per year increasing market
$850,000
$850,000
$350,000
Index Annuity
Fully Invested
2015
$500,000
Equities
S&P500 returns were taken from Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 4/29/ Assumed market returns are hypothetical and are not indications of future performance.

12. Index Annuities Protect
Correction Protection
2015: Assuming a 7% per year increasing market
$1,114,176
$1,080,825
$425,427
Index Annuity
$1,080,825
Fully Invested: $1,114,176
($ 33,351)
Fully Invested
2018
$655,398
Equities
S&P500 returns were taken from Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 4/29/ Assumed market returns are hypothetical and are not indications of future performance.

13. Index Annuities Protect
Correction Protection
2015: Assuming a 25% correction, followed by 10% rebound years
12/1/2016
12/1/2017
12/1/2018
12/1/2019
12/1/2015
S&P500 returns were taken from Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 4/29/ Assumed market returns are hypothetical and are not indications of future performance.

14. Index Annuities Protect
Correction Protection
2015: Assuming a 25% correction, followed by 10% rebound years
$350,000
Index Annuity
$850,000
Fully Invested
2015
$500,000
Equities
S&P500 returns were taken from Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 4/29/ Assumed market returns are hypothetical and are not indications of future performance.

15. Index Annuities Protect
Correction Protection
2015: Assuming a 25% correction, followed by 10% rebound years
$904,294
$848,512
$405,169
Index Annuity
$904,294
Fully Invested: $848,51
$ 55,782
$848,512
Fully Invested
2018
$499,169
Equities
S&P500 returns were taken from Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 4/29/ Assumed market returns are hypothetical and are not indications of future performance.

16. Index Annuities Protect
Correction Protection
2015: Assuming we grow another 10%, correct by 30%, and rebound 10% per year
following
12/1/2015
12/1/2016
12/1/2017
12/1/2018
12/1/2019
S&P500 returns were taken from Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 4/29/ Assumed market returns are hypothetical and are not indications of future performance.

17. Index Annuities Protect
Correction Protection
2015: Assuming we grow another 10%, correct by 30%,
and rebound 10% per year following
$350,000
Index Annuity
$850,000
Fully Invested
2015
$500,000
Equities
S&P500 returns were taken from Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 4/29/ Assumed market returns are hypothetical and are not indications of future performance.

18. Index Annuities Protect
Correction Protection
2015: Assuming we grow another 10%, correct by 30%, and rebound 10% per year
following
$871,019
$791,945
$405,169
Index Annuity
$871,019
Fully Invested: $791,945
$ 79,074
Fully Invested
2018
$465,850
Equities
S&P500 returns were taken from Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 4/29/ Assumed market returns are hypothetical and are not indications of future performance.

19. Index Annuities Provide Income
Fixed Income – Bond Alternative
Utilize systematic withdrawals from an index annuity as a fixed income alternative.

20. Value Before Withdrawal
Index Annuities Provide Income
Where would you be?
We are taking a 3% withdrawal (coupon) each year
Year
Beginning value
S&P500
Interest Credited
Value Before Withdrawal
Withdrawal
Ending Value
2008
$100,000
-38.50%
0.00%
$3,000
$97,000
2009
27.10%
5.00%
$101,850
$98,850
2010
$98,500
12.60%
$103,793
$100,793
2011
2.10%
$102,910
$99,910
2012
13.29%
$104,906
$101,906
2013
29.60%
$107,001
$104,001
2014
11.39%
$109,201
$106,201
YTM based on this time period: 3.97%
S&P500 returns were taken from Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 7/16/ “Fully invested in the market refers to the S&P500 index.

21. Index Annuities Provide Income
Index Annuities GMWB Riders
Guaranteed Lifetime Income
Case Study: John, Age 57
Retirement in 10 Years
Current Fixed Income: $250,000

22. Index Annuities Provide Income
Case Study: John 57 – Retirement in 10 Years
Fixed Income: $250,000 | Estimated Return 3% | 4% Withdrawal at age 67
Year
Age
Fixed Income
Withdrawal
GMWB 1 58
$257,500
$267,500 2 59
$265,225
$286,225 3 60
$273,182
$306,261 4 61
$281,377
$327,699 5 62
$289,819
$350,638 6 63
$298,513
$375,183 7 64
$307,468
$401,445 8 65
$316,693
$429,547 9 66
$326,193
$459,615 10 67
$335,979
$13,439
$491,788
$25,573

23. Call Producers Choice for more information.