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

3. Lifestyle ExpensesIncome Sources Typically 60-70% of retirement income Essential Housing Medical Long Term Care Food Lifetime Payments Pension Plan Social Security Annuity Income Reliable Consistent Protected Typically 30-40% of retirement income Discretionary Travel Entertainment Pursuits Other Assets 401(k) IRA Taxable Investments Flexible Market exposure

4.  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.  Safety  Accessibility  Taxation  Outliving your income  Locking in interest credits  Probate Costs

8. LossGain Required Average bear market decline -38%+61% Last bear market decline -50.9%+92% What is Warren Buffet’s #1 rule for investing? Don’t go backwards How about rule #2?

9.  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.  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.  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. 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.  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

15.  Safety  Accessibility  Taxation  Outliving your income  Locking in interest credits  Probate Costs

16.  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.  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.  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. 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! YearLife Expectancy 185039 190047 200677.9

20. 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. Client Age – 60 Initial Premium - $110,000 (Incl. Bonus of 10%) Guaranteed Rate – 8% Compound Client Age Accumulation Account Value Guaranteed Interest Rate Guaranteed Payout Percentage Guaranteed Lifetime Income Benefit 60$110,0008.00% 61$118,8008.00% 62$128,3048.00% 63$138,5688.00% 64$149,6548.00% 65$161,6268.00% 66$174,5568.00% 67$188,5218.00% 68$203,6028.00% 69$219,8918.00% 70$237,4825.25%$12,468 75$12,468 80$12,468 85$12,468 90$12,468 95$12,468

22.  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.  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

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. 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. 1 Year of Care 3 Years of Care 5 Years of Care Cost Today$ 73,000$225,570$387,500 In 10 Years$ 98,100$303,200$520,800 In 20 Years$131,850$407,500$700,000

27. 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 Under 54 26.5% Age 65+ 19.5% Age 55 – 64 54% Ages 50-59 14% Ages 60-69 23% Ages 70-79 45% Ages 80+ 80%

28.  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 2.2%2.6% M 15.5% W 18.0% M 44.0% W 72.0% Major House Fire Severe Car Accident Needing Long-Term Care

29. 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 Women41% Single Men 12% Married Women 24% Married Men 22%

30. 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. 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. 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.  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. 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.  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. 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