You’re Concerned About Retirement … [Financial Professional’s Name] [Title] [Firm]...

You’re Concerned

About Retirement …

[Financial Professional’s Name]

[Title]

[Firm]

Transamerica Resources, Inc. is an AEGON company and is affiliated with various companies which include, but are not limited to, insurance companies and broker-dealers. Transamerica Resources, Inc. does not offer insurance products or securities. This material is provided for informational purposes only and should not be construed as insurance, securities, ERISA, tax or investment advice. Although care has been taken in preparing this material and presenting it accurately, Transamerica Resources, Inc. disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. interested parties must consult and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here.

Not insured by the FDIC or any federal government agency. May lose value. Not a deposit or guaranteed by any bank, bank affiliate or credit union.

APPRR0911

Retirement Redefined | 2

Important Disclosure

This material is provided for educational purposes only and does not constitute investment advice. The information contained herein is basedon current tax laws, which may change in the future. Transamerica cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided or from any other source mentioned. The information provided does not constitute any legal, tax or accounting advice. Please consult with a qualified professional for this type of advice.


Not your parents’ retirement– Pensions have all but disappeared– More expenses coupled with longer life expectancy– Compounding factor of economic uncertainty

Boomers never cared much for rules, anyway– You’ve already redefined our culture– Who better to redefine retirement?

The Rules Have Changed


This discussion will offer:– Further understanding of today’s most common retirement concerns

• Health care• Housing• Investment volatility• Inflation• Rising taxes• Working in retirement

– Perspective and the hidden opportunities behind these concerns– Strategies you and your advisor can discuss

Retirement Redefined


Take-home brochure– Provides further explanation of topics covered today for your reference– Identifies resources you can use when addressing these concerns– Allows you to easily share this information with friends and family



How will I afford it?– A couple retiring today will need an estimated $230,000 to pay medical bills

in retirement, and that doesn’t include long-term care1

– Those on Medicare aged 65-74 spend $2,920 out-of-pocket each year2

Historical view – Annual health care costs rising1

Health Care

1 Fidelity Investments, “Annual Health Care Costs Estimate,” March 20112 www.newretirement.com, “Rising Medical Costs,” 2011


Forward thinking– Study shows costs dropped for some retirees in 20111

– Recent reform closes Medicare prescription coverage gap2

– Pending private health exchanges will potentially make care moreaffordable for retirees3

What we can do– Find out what you can expect; health benefits vary due to employer,

location, age, health status, etc.– Maintain a healthy lifestyle– Become a smart consumer

Health Care

1 Fidelity Investments, “Annual Health Care Costs Estimate,” March 20112 RegisteredRep.com, “Pros and Cons of the Healthcare Reform Law,” May 20113 Reuters, “Stern Advice: Early Retiree Healthcare Mess May Improve,” June 22, 2011


What if I’m counting on my equity?– U.S. homes, on average, have lost a third of their value1

– With expected 3% annual rise, it will take years for values to recover2

– Those planning to sell and downsize may have to accept alternatives3

Housing

1 The Wall Street Journal, “On Housing, There Will be More Lean Years Ahead,” May 20112 Moody’s Analytics, “To Shore Up the Recovery, “Help Housing,” May 20113 The Wall Street Journal, “Housing Imperils Recovery,” 2011


Historical view – Inflation-adjusted prices of U.S. homes approach 60-year lows

Housing


Forward thinking– Signs of a recovery are beginning to emerge

•Household debt is falling, while household net worth is increasing1

•Estimates suggest excess housing inventory has peaked2

– Basement prices and low mortgage rates present buying opportunity

What we can do– Stay put and pay down current mortgage– Downsize regardless– Utilize a reverse mortgage, if appropriate

Housing

1 Employee Benefit Research Institute, “401(k) Plan Asset Allocation, Account Balances and Loan Activity,” 20092 DailyFinance.com, “T. Rowe Price: Volatility in 2011 Could be Good for Your Portfolio,” December 2010


Must I subject my savings to risk?

– At its low point, the bear market following the 2008 financial crisis cut many 401(k) balances in half1

– Workers who need investment returns to fund retirement are still reluctant to invest2

Investment Volatility

1 USA Today, “Workers Fight Uphill Battle on 401(k) Retirement Savings,” May 20102 Employee Benefit Research Institute, “The Retirement Confidence Survey,” 2009


Historical view – Cumulative return of $1 investment since 19651


1 Source: Ibbotson Associates


Forward thinking– Volatility can create opportunities to buy low1

– By the end of 2009, those who stayed in the market had mostly

recovered, while those who fled at the bottom locked in losses2

What we can do– Diversify and rebalance– Use a safeguard– Avoid emotional decisions


1 Employee Benefit Research Institute, “401(k) Plan Asset Allocation, Account Balances and Loan Activity,” 20092 DailyFinance.com, “T. Rowe Price: Volatility in 2011 Could be Good for Your Portfolio,” December 2010


Will my savings be enough?– A person who turns 65 in 2015 is expected to live 18 more years1

– Relentless march of inflation historically compounds at 3.35%2

– A $60,000 per-year lifestyle today will cost approximately $120,000 in 20 years3

Inflation

1 OASDI Trustees Report, 20102 Data based on average monthly inflation rates derived from the Bureau of Labor Statistics3 NewRetirement.com, “Inflation Can Devastate Even a Good Retirement Plan,” 2011


Historical view – Average annual inflation rates since 19141

Inflation

1 Source: U.S. Bureau of Labor Statistics


Forward thinking– Boomers have lived through periods of high inflation before1

– Government measures can be taken to curb inflation

What we can do– Delay Social Security benefits2

– Utilize inflation-fighting securities3

Inflation

1 Bureau of Labor Statistics2 Social Security Administration, “Retirement Planner: Delayed Retirement Credits,” July 20073 Fidelity Viewpoints, “How to Inflation-Proof Your Portfolio,” April 13, 2011


Common examples of inflation-fighting securities1

Inflation

1 Fidelity Viewpoints, “How to Inflation-Proof Your Portfolio,” April 13, 20112 The S&P 500 – Standard and Poor’s 500® is an unmanaged group of securities that is considered to be representative of the U.S. stock market in general


How much will my future income be affected?– Average American works 2.2 hours a day just to cover taxes1

– Scheduled expiration of Bush-era tax cuts in 20122

– Further tax increases likely•Current rates at 70-year lows•Federal deficit projected to hit $1.6 trillion3

Rising Taxes

1 www.Visualizingeconomics.com2 Andrew Friedman, “Investing in a Rising Tax Environment,” 20103 www.usgovernmentspending.com


Historical Perspective – Top marginal, income and corporate tax rates are the lowest they’ve been in the past 50 years1

Rising Taxes

1 www.usgovernmentspending.com


Forward thinking– Nothing Boomers haven’t seen before– As recently as the 1970s, capital gains rates were as high as 70%1

What we can do– Sell certain assets prior to 2013 to recognize gains at existing rates2

– Wait until rates rise to make certain tax-deductable expenditures2

– Harvest losses diligently2

– Utilize investments that are more tax efficient, such as municipal bonds, variable annuities and certain mutual funds2

Rising Taxes

1 Tax Foundation, “Top Federal Income Rates since 1916,” January 20112 Andrew Friedman, “Investing in a Rising Tax Environment,” 2010


What if I still need a paycheck?– 74% of today’s workers plan to work for pay in retirement1

– Older workers need 14 more weeks, on average, to find a job2

– Re-employed workers 62 and older make an average of 36% lessthan they did in former jobs3

Working in Retirement

1 Employee Benefit Research Institute, “Retirement Confidence Survey,” 20112 AARP, “The Employment Situation Fact Sheet,” March 20113 Urban Institute, “Can Unemployed Older Workers Find Work?” January 2011


Historical view – Many retirees today decide to keep working1


1 OASDI Trustees Report, 2010


Forward thinking– More than half of Boomers would continue to work for reasons other than pay1

– There will be a demand for skill and experience2

– Older workers are often more loyal, harder working and better with customersthan younger generations3

What we can do– Be more than an age on an application; seek personal contact– Utilize resources designed specifically for older job seekers– Realize the opportunity to do something that fulfills you


1 Merrill Lynch New Retirement Study, 20062 2011 survey by The Neilson Company, commissioned by Advanced Technology Services, Inc. 3 CNNMoney.com, “Working in Retirement: 5 Questions,” October 2007


What we’ve learned– Further understanding of today’s most common retirement concerns– Additional perspective and the opportunities behind these concerns– Strategies you and your advisor can discuss



Take charge of your retirement planning– A more complete understanding of the new retirement challenges

may help you put your anxiety aside and develop a plan for what can still be the best years of your life. Contact your financial professional today to get started.


You’re Concerned About Retirement … [Financial Professional’s Name] [Title] [Firm]...

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