Minnesota Life Insurance Company
Looking long term
Life insurance in retirement
<Advisor Name>
Financial Advisor
<Firm Name>
<Registered Branch Address>
Introducing (Wholesaler Name) as
Registered Rep of SFS
(Wholesaler name) is not affiliated with
(firm Name)
Securities and investment advisory services offered through Securian Financial Services, Inc.,
Member FINRA/SIPC. Securities dealer and registered investment advisor.
<Firm Name> is independently <owned and> operated.
Keeping your dreams on course
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Define your destination
Phases of retirement
Your financial fuel
Financial roadblocks & detours
Make the right turns with a knowledgeable guide
DEFINE YOUR DESTINATION
Which way are you headed?
1. How will you spend your time?
2. Will your retirement include work?
3. Who will depend on you for personal and
financial support?
4. Where is “home base” during retirement?
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What kind of retiree
will you be?
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Traditional
Downshifter
Playcheck
Jhobbie
Boomer Entrepreneur
Sandwich Generation
PHASES OF RETIREMENT
Three Retirement Phases
Gearing up
Taking off
Cruise control
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Gearing Up
• First phase
• Gathering information
• Test drive
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Taking Off
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Second Phase
Active
Engaged
Managing Health
Downsizing
Tracking
Cruise Control
• Third Phase
• Active Health
Management
• Patterns emerge
• Leaving a legacy
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YOUR FINANCIAL FUEL
Decumulation is different
• Accumulation:
– Saving
– Investing
– Asset Allocation
• Decumulation:
– Making the money last
– Trade-off decisions
– Asset depletion is inevitable
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Fueling retirement years
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Sources of Income
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Personal savings and investments
Pension Plans
Social Security
Employment during retirement
Personal savings and investments
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401k plans
IRA’s
Annuities
Stocks
Bonds
Mutual Funds
CD’s
Real Estate
Life insurance cash values
Investments will fluctuate and when redeemed, may be worth more or less than originally invested.
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Pension Plans
• Monthly income stream
• Lump sum distribution
• Retirees need to create their own retirement income
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Social Security
• Personal Earnings & Benefit Statement
• Check benefits at www.ssa.gov
• Benefits taken before full retirement age may
be considerably reduced
Social Security Administration: Income of the Aged 2004 Chartbook, released September 2006
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Employment during retirement
• 72% intend to continue to work
• 34% of retirees currently working
• 47% retired sooner than anticipated
2009 Retirement Confidence Survey. A research report from the EBRI
Education and Research Fund.
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FINANCIAL ROADBLOCKS AND DETOURS
Roadblocks
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Living a longer life & staying healthy
The effects of inflation
Carrying debt into retirement
How you really spend your money
When & how much to withdraw
Dying too soon
Living a longer life
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Living a longer life
• Add at least 10 years to projections of life
expectancy
• Get an independent perspective – work with a
financial advisor
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The effects of inflation
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This is a hypothetical value illustration showing the value of $1 invested in 1926. This example is for illustrative purposes only and is not
indicative of any particular investment. Past performance does not guarantee future results. You cannot invest directly in an index.
Previous Graph Disclosure
Note: The data assumes reinvestment of all income and does not account for taxes or
transaction costs. The average return represents a compound annual return. Government
bonds and Treasury bills are guaranteed by the full faith and credit of the United States
Government as to the timely payment of principal and interest. Stocks are not guaranteed.
Small company stocks are more volatile than large company stocks, are subject to
significant price fluctuations and business risks and are thinly traded. An investment
cannot be made directly in an index. Past performance is no guarantee of future results.
Source:
• U.S. Small Company Stocks — Represented by the fifth capitalization quintile of stocks on
the NYSE for 1926 - 1981 and the performance of the Dimensional Fund Advisors (DFA)
Small Company Portfolios benchmark thereafter.
• U.S. Large Company Stocks — S&P 500 Index, which is an unmanaged group of securities
and is considered to be representative of the stock market in general.
• U.S. Long-Term Government Bonds — 20-year U.S. Government Bond.
• U.S. 30-day Treasury Bill — 30-day U.S. Treasury Bill.
• U.S. Inflation — Consumer Price Index.
The effects of inflation
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Use Consumer Price Index (CPI) + 1%
3.5% - 5% historically
Most retirees need some exposure to equities
Unpredictable – need to adjust along the way
Carrying debt into retirement
• Debt restricts your
financial flexibility
• Reduces income
• Affects your ability
to have a comfortable
retirement
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Carrying debt into
retirement
• Retire debt-free
• Retire mortgage-free
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How you really spend your money
• Target between 70 – 85% of
pre-retirement income
• Requires detailed tracking of
expenses to get it right
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How you really spend
your money
• 70 - 85% pre-retirement income
• Increase that by 5% -10%
• Adjust as necessary
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When and how much
to withdraw
This is a hypothetical example for illustrative purposes only and is not indicative of any particular investment.
Investments will fluctuate and when redeemed, may be worth more or less than originally invested.
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When and how much
to withdraw
• Determine how much of your income comes
from guaranteed sources
• Adjust discretionary expenses during down
markets
• Determine a balance of guarantees and
growth
• Consider asset protection strategies
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Dying too soon
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Living longer
Inflation
Debt in retirement
How you spend your money
When & how much to withdraw
Dying too soon
• Life insurance
• Funded sufficiently
• Policy riders
– Cost of living
– Waiver of premium
– Long term care
Life insurance products contain fees, such as mortality and expense charges, and may contain restrictions, such as surrender periods. Policy
loans and withdrawals may create an adverse tax result in the event of a lapse or policy surrender, and will reduce both the cash value and death
benefit. Riders may be subject to additional costs and restrictions.
Make the right turns
with a knowledgeable
guide
Mapping your route
• Think about how you want to spend your
retirement
• Watch for roadblocks
• Take inventory of finances
• Take steps to protect your retirement income
streams
• Work with an advisor
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Get started now!
Schedule a complimentary, no obligation, one hour
consultation
Securian Financial Group, Inc.
www.securian.com
Insurance products are issued by Minnesota Life Insurance Company in all states except New York. In New York, products are issued by Securian Life
Insurance Company, a New York admitted insurer. Both companies are headquartered in St. Paul, MN. Product availability and features may vary by state.
Each insurer is solely responsible for the financial obligations under the policies or contracts it issues. Securities offered through Securian Financial Services, Inc.
Member FINRA/SIPC. 400 Robert Street North, St. Paul, MN 55101-2098 • 1-800-820-4205
©2010 Securian Financial Group, Inc. All rights reserved.
DOFU: 4-2014
A01865-0314