Transitioning from accumulating retirement assets to taking income distributions Presenter Name Registered Representative Date Cracking the Nest Egg 3017601.X.P-1C10-0827-009.

Transitioning from accumulating retirement assets to taking income

distributions

Presenter NameRegistered RepresentativeDate

Cracking Cracking the Nest the Nest

EggEgg

3017601.X.P-1 C10-0827-009

Retirement - Insurance - Investments 2

Important Information

Insurance products, annuities and retirement plan funding issued by (third party administrative services may also be provided by) ING Life Insurance and Annuity Company ( Windsor, CT). Securities are distributed by ING Financial Advisers, LLC (member SIPC), Windsor, CT or through other broker/dealers with which it has selling agreements. Annuities may also be issued by ReliaStar Life Insurance Company (Minneapolis, MN) and ReliaStar Life Insurance Company of New York (Woodbury, NY). Variable annuities issued by ReliaStar Life Insurance Company are distributed by ING Financial Advisers, LLC. Variable annuities issued by ING USA Annuity and Life Insurance Company and ReliaStar Life Insurance Company of New York are distributed by Directed Service, LLC. Only ING Life Insurance Annuity Company and ReliaStar Life Insurance Company of New York are admitted and issue products in the state of New York. All companies are members of the ING Family of companies.

© 2011 ING North America Insurance Corporation.



Insurance products, annuities and retirement plan funding issued by (third party administrative services may also be provided by) ING Life Insurance and Annuity Company ( Windsor, CT). Securities are distributed by ING Financial Advisers, LLC (member SIPC), Windsor, CT or through other broker/dealers with which it has selling agreements. Annuities may also be issued by ING USA Annuity and Life Insurance Company (Des Moines, IA) and are distributed by Directed Services, LLC. All companies are members of the ING Family of companies.




Securities and [financial planning] offered through ING Financial Partners, (member SIPC), 909 Locust Street, Des Moines, IA 50309 or through other broker-dealers with which it has selling agreements.




Recordkeeping and Plan administrative services provided by ING Institutional Plan Services, LLC.



Registered representative and retirement educational seminars are provided by ING Investment Advisors, LLC. These educational seminars are provided to you as a supplemental service to your plan sponsor as part of the Plan Administrative services provided by ING Institutional Plan Services, LLC. The information contained herein should not be constituted as (i) an offer to sell or solicitation of an offer to buy an security or (ii) a recommendation as to the advisability of investing in, purchasing or selling any security. You should contact your investment representative (or advisor), attorney, accountant or tax advisor, with regard to your individual situation prior to implementing a retirement plan strategy.




Framewor(k) and (k)Choice Recordkeeping and Plan administrative services provided by ING Institutional Plan Services, LLC. Mutual funds offered through ING Financial Advisers, LLC (member SIPC).



Important Information (continued)

Variable annuities, group annuities or funding agreements are long-term investments designed for retirement purposes. If withdrawals are taken prior to age 50 1/2, an IRA 10% premature distribution penalty tax may apply. Money taken from the annuity will be taxed as ordinary income in the year the money is distributed. An annuity does not provide any additional tax deferral benefit, as tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you.

Variable investments, of any kind, are not guaranteed and are subject to investment risk including the possible loss of principal. The investment return and principal value of the security will fluctuate so that when redeemed, it may be worth more of less than the original investment. In addition, there is no guarantee that any variable investment option will meet its stated objective.

For 403(b)(1) annuities, the Internal Revenue Code (IRC) generally prohibits withdrawals of 403(b) salary reduction contributions and earnings on such contributions prior to death, disability and age 50 ½, severance of employment, or financial hardship. Amounts held in a 403(b)(1) annuity as of 12/31/1988 are “grandfathered” and are not subject to these restrictions. For 403(b)(7) custodial accounts, the IRC generally prohibits withdrawals of any contributions and attributable earnings prior to death, disability, age 59 ½, severance of employment, or financial hardship. For both 403(b)(1) annuities and 403(b)(7) custodial accounts, the amount available for hardship is limited to the lesser of the amount necessary to relieve the hardship, or the account value as of 12/31/1988, plus the amount of any salary reduction contributions made after 12/31/1988 (exclusive of any earnings).

You should consider the investment objectives, risk, and charges and expenses of the investment options carefully before investing. Fund prospectuses contain this and other information and can be obtained by contacting your local ING representative. Please read carefully before investing.



Variable annuities, group annuities or funding agreements are long-term investments designed for retirement purposes. If withdrawals are taken prior to age 50 1/2, an IRA 10% premature distribution penalty tax may apply. Money taken from the annuity will be taxed as ordinary income in the year the money is distributed. An annuity does not provide any additional tax deferral benefit, as tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you.

Variable investments, of any kind, are not guaranteed and are subject to investment risk including the possible loss of principal. The investment return and principal value of the security will fluctuate so that when redeemed, it may be worth more of less than the original investment. In addition, there is no guarantee that any variable investment option will meet its stated objective.

For 403(b)(1) annuities, the Internal Revenue Code (IRC) generally prohibits withdrawals of 403(b) salary reduction contributions and earnings on such contributions prior to death, disability and age 50 ½, severance of employment, or financial hardship. Amounts held in a 403(b)(1) annuity as of 12/31/1988 are “grandfathered” and are not subject to these restrictions. For 403(b)(7) custodial accounts, the IRC generally prohibits withdrawals of any contributions and attributable earnings prior to death, disability, age 59 ½, severance of employment, or financial hardship. For both 403(b)(1) annuities and 403(b)(7) custodial accounts, the amount available for hardship is limited to the lesser of the amount necessary to relieve the hardship, or the account value as of 12/31/1988, plus the amount of any salary reduction contributions made after 12/31/1988 (exclusive of any earnings).

All Guarantees are based on the financial strength and claims-paying ability of the issuing insurance company, who is solely responsible for all obligations under its policies.







This presentation/seminar contains information regarding insurance products for sale.


RetireRetire1: To go away, retreat, recede 2: to give up one’s work, business, career due to advanced age 3: to go to bed 4: to withdraw as in battle 5: to remove from circulation 6: to move to a place of privacy or seclusion 7: to withdraw from contact with others

RetireRetire1: To go away, retreat, recede 2: to give up one’s work, business, career due to advanced age 3: to go to bed 4: to withdraw as in battle 5: to remove from circulation 6: to move to a place of privacy or seclusion 7: to withdraw from contact with others

What does ‘Retire’ mean?


What does ‘Retire’ mean?

Travel?Family?Hobbies?

What does retirement mean to you?


Longer lifeBetter health

Early/late retirement

Second careerLeisure activities

Fewer pensions

Less Social SecurityMore personal savings

Higher healthcare costs

What Retirement Looks Like


8465-year old female: 1 in 2 chance of living past age

8165-year old male: 1 in 2 chance of living past age

Your Time in Retirement

How long do you expect to live in retirement…the next 1/3 of your life?

The truth is, you may need to live without a paycheck, as long as you have lived with one. How much will you need?

Funding for your future goals

25 35 45 55 65 75 85 95

SOURCE: Based on current Annuity 2000 Mortality Table assuming relatively good health. Society of Actuaries, Longevity: The Underlying Driver of Retirement Risk – 2005 Risks and Process of Retirement Survey Report (2006).

You

r A

ge

Employer’s Checks


What Retirement Looks Like

Stage One

Go Go

Stage Three

No Go

Stage Two

Slow Go

Retirement isn’t just a new stage of life.It can have three stages, each with its own characteristics and costs.


For illustrative purposes only. This example may not reflect your actual situation.

Essential vs. Discretionary Expenses

Determining Retirement Income Needs


Funding Your Retirement

OtherPersonal Savings,

Part-Time Work60%

Pensions* orOther Savings

21%

SocialSecurity*

19%

SOURCE: Social Security Brief #25, National Academy of Social Insurance, May 2007. Persons 65+, income $44k+

No matter what goes into yours, chances are, your

own personal savings will be the biggest

piece of the pie.

*If applicable


Methods for Generating Retirement Income

Method 1:Method 1: Lump Sums as Needed

Method 2:Method 2: Full or Partial Annuitization

Method 3:Method 3: Systematic Withdrawals

Method 4:Method 4: Guaranteed Lifetime Withdrawal Option




ExpenseExpense SourceSource Essential Living ExpensesEssential Living Expenses Pension and/or Social Security Pension and/or Social Security

Additional Expenses Lump sum withdrawals from Additional Expenses Lump sum withdrawals from personal retirement assets as personal retirement assets as

needed needed




PROSPROS CONSCONS

Potential to outperform inflation

Potential to miscalculate when income needs will occur

Complete flexibility in withdrawals

Potential to outlive your assets

Full control on how assets are invested

Tax Implications




AnnuitizationAn annuity is an insurancecontract that generallyguarantees periodic income payments. Annuities may beannuitized immediately ordeferred, over a long or shorttime period, or in some cases,in one single payment. Paymentguarantees are based on theclaims paying ability of theIssuing insurance company.

AnnuitizationAn annuity is an insurancecontract that generallyguarantees periodic income payments. Annuities may beannuitized immediately ordeferred, over a long or shorttime period, or in some cases,in one single payment. Paymentguarantees are based on theclaims paying ability of theIssuing insurance company.

Source: Investopedia.com




PROSPROS CONSCONS

Investment risk is transferred to the insurance company

(N/A for variable payouts)

Loose flexibility to take lump sum withdrawals

Steady and predictable stream of income

Income stream may not keep up with inflation

Can be for an individual or can include a spouse

Cannot make adjustments to payment amount

Ability to select an option so that you cannot outlive your assets

Death benefits may be limited or eliminated




Source: Investopedia.com

A service that provides A service that provides a specific payout a specific payout

amount to the amount to the shareholder at shareholder at

predetermined intervals, predetermined intervals, generally monthly, generally monthly,

quarterly, semiannually quarterly, semiannually or annually without or annually without

requiring annuitization.requiring annuitization.




PROSPROS CONSCONS

Steady income stream Can outlive your assets

Potential to outperform inflation

Can be significantly impacted by poor market performance

Ability to take lump sum withdrawals

Can adjust amount of the payments



Method 4:Method 4: Guaranteed Lifetime Withdrawal Options



Method 4:Method 4: Guaranteed Lifetime Withdrawal Options

PROSPROS CONSCONS

Steady stream of income for life The benefit can be costly

Ability to take on market risk with downside protection

Flexibility is limited- bound to the terms of the contract

Lump sum withdrawal options available

When market performance is poor lump sum withdrawals become

unfavorable and may impact future income potential

Riders can be complex based on complicated formulas


Next Steps

Retirement is like a long vacation. The goal is to enjoy it the fullest, but not so fully that you run out of money.

Retirement is like a long vacation. The goal is to enjoy it the fullest, but not so fully that you run out of money.


Determine how to reach your

retirement goals

Speak to a Financial

Professional

Synch Up with Your Spouse

Next Steps

Transitioning from accumulating retirement assets to taking income

distributions

Any Questions?Any Questions?

Cracking Cracking the Nest the Nest

EggEgg

Compliance information to go here if needed.

Transitioning from accumulating retirement assets to taking income distributions Presenter Name Registered Representative Date Cracking the Nest Egg 3017601.X.P-1C10-0827-009.

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