1. Sequence of Returns Cash Access via Policy Loans
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2. Sequence of Returns Investment returns are variable and unpredictable.
Background
Investment returns are variable and unpredictable.
Order of returns has an impact on how long a portfolio will last if it is in the distribution stage and if a fixed amount is being withdrawn from the portfolio.
Negative returns in the first few years of retirement can significantly add to the possibility of portfolio ruin.
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3. Sequence of Returns Two Scenarios Read Slide
Highlight the impact of having the negative returns in the first few years after reversing the sequence on the overall balance of the accounts.

4. Sequence of Returns
The Situation
If he retired with Sequence A, after 10 years he would have an ending account balance of $506,951.
If he retired with Sequence B, where the sequence of returns was reversed, he would have an ending balance of $406,597.
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5. Sequence of Returns
Unfortunately we can’t control what the market is going to do when we decide to retire.
But there is one possible solution to help protect the client in years when the market does go down…
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6. If he purchased a Max Accumulator+ when he was 50:
Sequence of Returns
Potential Solution
If he purchased a Max Accumulator+ when he was 50:
Funded to utilize the power of IUL (upside potential with no downside risk due to market performance).
Creates an additional bucket of money that he can use as a backup income source for the years following negative performance in his retirement account.
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7. Sequence of Returns Potential Solution Walk through example:
Highlight the loan from the IUL policy in the years following the negative return in the retirement account.
Policy details: Male, 50 preferred non-tobacco, 35% federal tax bracket, $5000,00 level death benefit, $6,884 annual premium for 15 years, $107,671 projected cash value at age 66 (7.44% non-guaranteed rate of return), $32,500 participating loans at age 67, 68, and 74 fund his retirement in the years following his retirement account experiencing a loss.
*$32,500 tax free = pre-tax withdrawal of $50,000 using 35% tax bracket.

8. Sequence of Returns Potential Solution Read Slide
Policy details: Male, 50 preferred non-tobacco, 35% federal tax bracket, $5000,00 level death benefit, $6,884 annual premium for 15 years, $107,671 projected cash value at age 66 (7.44% non-guaranteed rate of return), $32,500 participating loans at age 67, 68, and 74 fund his retirement in the years following his retirement account experiencing a loss.

9. Sequence of Returns
Other Benefits
Max Accumulator+ also helps with tax and asset allocation diversification.
With a properly designed index life insurance policy he can take policy loans income tax free, under current tax code.
$32,500 tax free = pre-tax withdrawal of $50,000 using 35% tax bracket
Minimum guarantee of 0% with four index strategy options to allocate money to.
Account value enhancement on each index strategy beginning in the 6th policy year.
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Questions

11. Important Information
Policies issued by: American General Life Insurance Company (AGL), Policy Form Numbers ICC , ICC , ICC , ICC , 82012, 82410, 88390, ICC , 14306, ICC , ICC , ICC , ICC , ICC , ICC , ICC Issuing company AGL is responsible for financial obligations of insurance products and is a member of American International Group, Inc. (AIG). AGL does not solicit business in the state of New York. Products may not be available in all states and product features may vary by state. Guarantees are backed by the claims-paying ability of the issuing insurance company. AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. This information is general in nature, may be subject to change, and does not constitute legal, tax or accounting advice from any company, its employees, financial professionals or other representatives. Applicable laws and regulations are complex and subject to change. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. For advice concerning your individual circumstances, consult a professional attorney, tax advisor or accountant. Please visit for important disclosures regarding accelerated benefit riders. © AIG All rights reserved AGLC MC Job Number
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