1. LBL7169(ADS190) © 2005 Allstate Insurance Company 1 Retirement Planning for Women

2. LBL7169(ADS190) © 2005 Allstate Insurance Company 2 Agenda  Does retirement planning differ for women?  How do you determine retirement needs and develop goals?  What are the investment options and factors you need to consider?

3. LBL7169(ADS190) © 2005 Allstate Insurance Company 3 Retirement Facts for Women  Women live longer than men. 1  Women earn less money than men. 2  Woman may leave the workforce temporarily to care for dependents. 3  Women are not as likely as men to have a pension. 4 1 National Center for Health Statistics 2 U.S. Census Bureau 3 Department of Labor 4 U.S. Bureau of Labor Statistics

4. LBL7169(ADS190) © 2005 Allstate Insurance Company 4 Retirement Facts for Women  Women are more likely than men to fall below the poverty level in old age. 1  Women are more likely than men to be in a nursing home. 2  Women may not know or underestimate money needed for retirement. 3  The average monthly Social Security benefit in 2005 was $909. 4 1 U.S. Census Bureau 2 Center for Disease Control 3 American Savings Education Council 4 According to Social Security Online, Monthly Statistical Snapshot, June 2005

5. LBL7169(ADS190) © 2005 Allstate Insurance Company 5 Retirement Facts for Women  Nearly 90% of women will end up managing their finances alone. 1  Older persons not living with family were 20% more likely to be poor. 2  Nursing home expenses rose by 150% from 1987-1996. 3 1 U.S. Department of Labor Women’s Bureau Director, “Women Work National Conference” on November 8, 2001 2 Dept. of Health and Human Services conducted a study in 2000 called “A Profile of Older Americans”. 3 Agency for Healthcare Research and Quality gathered these statistics in September of 2001

6. LBL7169(ADS190) © 2005 Allstate Insurance Company 6 What Can You Do About Retirement Planning Now?  Determine what you are worth financially.  Determine what is important to you.  Develop financial goals.

7. LBL7169(ADS190) © 2005 Allstate Insurance Company 7 Financial Net Worth Assets you own - Debts you owe = Net Worth

8. LBL7169(ADS190) © 2005 Allstate Insurance Company 8 Cash Flow Money coming in from all sources - Money being spent = Cash Flow

9. LBL7169(ADS190) © 2005 Allstate Insurance Company 9  Consider what matters to you.  Determine what you want out of life during retirement.  Think about what makes you feel secure and why.  Dream about the lifestyle you want to have. What Is Important to You?

10. LBL7169(ADS190) © 2005 Allstate Insurance Company 10 10 Ways to Put Your House in Order 1.Update your living will 2.Review All insurance coverage 3.Consider refinancing 4.List and photograph all your valuables 5.Review Social Security benefits

11. LBL7169(ADS190) © 2005 Allstate Insurance Company 11 10 Ways to Put Your House in Order 6.Lower interest expenses 7.Review sources of income 8.Anticipate major expenses 9.Establish durable power of attorney 10.Consider long term care insurance

12. LBL7169(ADS190) © 2005 Allstate Insurance Company 12  Key components to a sound financial plan include:  Goals –  Time horizon –  Risk tolerance – Develop Financial Goals

13. LBL7169(ADS190) © 2005 Allstate Insurance Company 13 Pay Yourself First  Maximize contributions to Qualified Plans  401(k) & IRAs  College Savings…529 Plans  Utilize pay increase to fund savings

14. LBL7169(ADS190) © 2005 Allstate Insurance Company 14 Examples of Investment Options Determining Equity Types  Size  Large Cap, Mid Cap and Small Cap  Investment Orientation  Growth and Value  Market Diversity and Sector  Domestic and International  Sector  Consumer Goods, Industrial, and Energy just to list a few

15. LBL7169(ADS190) © 2005 Allstate Insurance Company 15 Examples of Investment Options Types of Debt or Bonds  U.S. Government – Bonds, notes, bills  Municipal – rated, can be insured  Corporate – rated

16. LBL7169(ADS190) © 2005 Allstate Insurance Company 16 Examples of Investment Options Consider mutual funds  Professional management  Diversification  Convenience  Many styles of investing  Many different objectives  Liquidity

17. LBL7169(ADS190) © 2005 Allstate Insurance Company 17 Examples of Investment Options Consider annuities  Tax deferred growth  Distributions taken prior to annuitization are generally considered to come from the gain in the contract first. If the contract is tax- qualified, generally all withdrawals are treated as distributions of gain. Withdrawals of gain are taxed as ordinary income and, if taken prior to age 59 1 / 2, may be subject to an additional 10% federal tax penalty.  Some contracts provide for guaranteed living benefits  Any payments or benefits due on the annuity are backed by the claims-paying ability of the issuing insurance company, and are subject to the financial condition of the issuing insurance company

18. LBL7169(ADS190) © 2005 Allstate Insurance Company 18 Examples of Investment Options Consider annuities  Some contracts provide for death benefits  Payout phase of contracts is designed so that you won’t outlive the income stream  Can have subaccounts invested in variable portfolios  Can provide fixed rate of return

19. LBL7169(ADS190) © 2005 Allstate Insurance Company 19 Examples of Investment Options Consider real estate  Owning your own home is both an investment and a lifestyle choice that may save you taxes  Owning rental income property may generate both cash flow and income tax deductions  Real estate is a traditional hedge against inflation

20. LBL7169(ADS190) © 2005 Allstate Insurance Company 20 Time Horizons Longer time horizons = Lower risk of falling short of goals Shorter Time Horizons = Greater Risk “Why put off until tomorrow what you can do today.” — Grandmother

21. LBL7169(ADS190) © 2005 Allstate Insurance Company 21 Risk versus Reward  Stocks...Higher risk & higher potential return  Bonds....Reduced risk & fixed returns w/little growth Asset Allocation helps you keep your balance Diversification helps to reduce, not eliminate, your risk Diversification and Asset Allocation do not guarantee a profit nor prevent loss.

22. LBL7169(ADS190) © 2005 Allstate Insurance Company 22 A Look Back…What if? Investment AmountDateValue as of 12-31-04 S & P 500$11-31-1950$71.73 U.S. Treasuries$11-31-1950$13.17 What About Inflation??? $8.00 Past Performance is no guarantee of future results. This is a hypothetical illustration and is not intended to give investment advice. Individuals should consult an investment professional for advice specific to their particular circumstances. Stocks are represented by the S&P 500 ® Composite Stock Price Index, US 30-day Treasuries, and the Consumer Price Index. Source data: Thomson Financial Company 800.232.2285, 2005.

23. LBL7169(ADS190) © 2005 Allstate Insurance Company 23 Asset Allocation: What You Should Know  Wide variety of asset allocation models  Choose a model that is aligned with your risk tolerance and will help you reach your financial goals  Keep in mind your time horizon  Most investment advisors have tools to help determine your financial goals

24. LBL7169(ADS190) © 2005 Allstate Insurance Company 24 Summary  Women’s retirement planning facts  Check to determine net worth, cash flow and goals  Considered investment types, time horizon and risk  What’s Next?

25. LBL7169(ADS190) © 2005 Allstate Insurance Company 25 Developing Your Retirement Strategy  I have put my goals in writing.  My goals are specific, measurable and achievable.  I am confident that the amount I am saving each month is enough to meet my savings goal.  I am confident I have used a realistic inflation estimate and have factored inflation into my projected retirement income needs—throughout my retirement years.

26. LBL7169(ADS190) © 2005 Allstate Insurance Company 26 Developing Your Retirement Strategy  I have used sound investment principles to choose my investments.  I am confident I have chosen investments appropriate for my time horizon and return expectations.  I am comfortable with the level of risk my investments carry.  I regularly monitor the progress of my strategy and make changes if necessary.

27. LBL7169(ADS190) © 2005 Allstate Insurance Company 27 Developing Your Retirement Strategy If developing and implementing a retirement strategy seems overwhelming, consider working with your financial professional. Financial professionals have the skills and the resources to help you develop and implement strategies to set and achieve your financial goals.

28. LBL7169(ADS190) © 2005 Allstate Insurance Company 28 What Else?  Never stop asking questions.  Never stop learning.  Never stop dreaming, for if you can dream it, you can make it so.

29. LBL7169(ADS190) © 2005 Allstate Insurance Company 29 Questions? Thank you

30. LBL7169(ADS190) © 2005 Allstate Insurance Company 30 Variable Annuities Notice to consumers: Variable annuities are long-term investments designed for retirement purposes. You should carefully consider the investment objectives, risks, charges and expenses of the investment alternatives before purchasing a contract or investing money. These contracts have limitations and are sold by prospectus only. The prospectus contains details on the investment alternatives, contract features, the underlying portfolios, fees, charges, expenses and other pertinent information. To obtain a prospectus or a copy of the underlying portfolio prospectuses, please contact your representative, or call Lincoln Benefit Life Company at 800-865-5237. Please read the prospectuses carefully before purchasing a contract or sending money.