Smooth Sailing on
Uncertain Waters
Managing Your Retirement Resources
GE-97235 (8/14) (Exp. 8/16)
Smooth Sailing on Uncertain Waters
The pessimist complains about the wind,
the optimist expects it to change,
the realist adjusts the sails.
- William Arthur Ward, American Author
GE-97235 (8/14) (Exp. 8/16)
Agenda
1. Retirement Landscape
1. Maximizing Retirement by Minimizing Losses
1. Smooth Sailing Key Considerations
GE-97235 (8/14) (Exp. 8/16)
Retirement Landscape
Maximizing retirement by minimizing losses
Typical client profile
•Life insurance need exists
•Age: 40’s and 50’s and saving for retirement
o Traditional savings options such as IRA’s and 401k’s may not be adequate
•Concerned about:
o Retirement assets given the market instability on recent years and what
may happen if the market drops during retirement years
GE-97235 (8/14) (Exp. 8/16)
Retirement Landscape
Increasing Dependence on Savings
The higher one’s income, the greater the reliance on personal savings
Employee Benefit Research Institute, Social Security Administration. March 2007. Survey, Web. www.ebri.org
GE-97235 (8/14) (Exp. 8/16)
Timing is Everything in Retirement
The S & P 500’s 5 Year Average – For the Years Ending 2000 to 2013*
 Timing of asset sales and realizing losses can impact available future asset values
 Stability of the stock market may have an impact
 Life Insurance may fill this gap
*Past performance is not indicative of future results. Clients cannot invest directly in an index.
Source: AXA Equitable Funds Management Group
GE-97235 (8/14) (Exp. 8/16)
Timing is Everything in Retirement
Sequence of returns
 Mid 1960’s – Retirement assets eroded
 Early 1970’s – Retirement assets eroded
 Early 1980’s – Retirement assets would grow
 Early 1990’s – Retirement assets would grow
 Early 2000’s – Retirement assets eroded
GE-97235 (8/14) (Exp. 8/16)
Agenda
1. Retirement Landscape
1. Maximizing Retirement by Minimizing Losses
3. Smooth Sailing Key Considerations
GE-97235 (8/14) (Exp. 8/16)
Don’t Let Losses Bring You Down
 Tom is 65 and planning to retire
 Accumulated $1,000,000 toward his retirement goal
 Needs annual income of pre-tax $100,000 during retirement
 Little income from other sources:
o Social Security - $20,000
o Pension - $10,000
Tom’s savings – needed to make up the other $70,000
Can Tom meet his objective?
GE-97235 (8/14) (Exp. 8/16)
Don’t Let Losses Bring You Down
Problem
Without life insurance, Tom is forced to take funds for retirement each year and lock in losses
during down market years.
Possible Solution
Plan ahead to avoid selling in down years and locking in losses by adding life insurance to his
asset portfolio.
Draw retirement income from traditional retirement funds AND withdrawals from life
insurance policy cash values when appropriate.
Access policy cash values during years when there is a market loss to help preserve the
traditional retirement funds so they may recover.
GE-97235 (8/14) (Exp. 8/16)
Impact of Selling Into A Loss
Retiring in Down Market

Selling into losses has a
significant impact on account
value

7% withdrawal; 1% inflation
Balance in 20 years
$444,791
56% erosion
over 20 years
The results presented here are hypothetical and your results will be different. These are based on the S & P returns from
1973-1993. Past performance is not a guarantee of future results.
GE-97235 (8/14) (Exp. 8/16)
Impact of Selling Into A Loss
GE-97235 (8/14) (Exp. 8/16)
Power of Not Selling into a Loss
By simply turning off withdrawals
from his retirement funds in only
5 years, Tom has a dramatic
change in his retirement assets.
Tom’s policy cash values offer a
source of funds for those 5 years.
He takes selective withdrawals
from his life insurance policy only
in years that follow market
losses. This avoids selling into
losses.
Balance in 20 years
$3,587,396
360% growth
over 20 years
The results presented here are hypothetical and your results will be different. These are based on the S & P returns from
1973-1993. Past performance is not a guarantee of future results. Clients cannot invest directly in the S&P 500 Index.
GE-97235 (8/14) (Exp. 8/16)
Disclosure
Under current federal tax rules, you generally may take federal income tax-free withdrawals up to
your basis (total premiums paid) in the policy or loans from a life insurance policy that is not a
Modified Endowment Contract (MEC). Certain exceptions may apply for partial withdrawals during
the policy's first 15 years. If the policy is a MEC, all distributions (withdrawals or loans) are taxed
as ordinary income to the extent of gain in the policy, and may also be subject to an additional
10% premature distribution penalty prior to age 5934, unless certain exceptions are applicable.
Loans and partial withdrawals will decrease the death benefit and cash value of your life
insurance policy and may be subject to policy limitations and income tax. In addition, loans and
partial withdrawals may cause certain policy benefits or riders to become unavailable and may
increase the chance your policy may lapse. If the policy lapses, is surrendered or becomes a MEC,
the loan balance at such time would generally be viewed as distributed and taxable under the
general rules for distribution of policy cash values.
GE-97235 (8/14) (Exp. 8/16)
Power of Not Selling into a Loss
BrightLife Grow




45-year-old male, preferred no tobacco
$6,967 Premium for 20 years a default
rate of 6.64%*
Strategically timed policy withdrawals
$50,000 out of policy at 28% tax bracket
= $70,000 taxable income
o Later years are increased for inflation
This is a supplemental illustration authorized for distribution only when preceded or
accompanied by a basic illustration from the issuer. The basic illustration
contains values using the same underwriting assumptions as this
supplemental at both guaranteed charges and guaranteed interest rates and
contains other important information. The values represented here are for a
$500,000 policy on a 45 year old male preferred non-smoker. The values
reflect the cost of 20 years of premiums. The values represented here are
non-guaranteed and assume current charges and a an interest rate of
6.64%. If guaranteed rates and charges are used, the policy would fail in
year 21. Your values will be different based on your gender, age and health.
Work with your Financial Professional/ licensed insurance agent to create an
illustration that is tailored to your specific situation.
GE-97235 (8/14) (Exp. 8/16)
Smooth Sailing on Uncertain Waters
GE-97235 (8/14) (Exp. 8/16)
When More Income Is Needed
 What is the appropriate withdrawal rate for retirement assets?
 What if Tom increases his annual pre-tax account withdrawals from
$70,000 to $100,000 and again uses his life insurance cash values to
supplement in market down years?
GE-97235 (8/14) (Exp. 8/16)
Power of Not Selling into a Loss
Removing Just 5 Down Years
 $1,000,000 at start
 $100,000 level withdrawals
Balance in 20 years
$1,679,551
170% growth
over 20 years
The results presented here are hypothetical and your results for your clients will be different. These are based on the S & P
returns from 1973-1993. Past performance is not a guarantee of future results.
GE-97235 (8/14) (Exp. 8/16)
Power of Not Selling into a Loss
BrightLife Grow




45-year-old male, preferred no tobacco
$8,150 premium for 20 years at default
rate of 6.64% which of course is not
guaranteed
Strategically timed policy withdrawals
After-tax $70,000 out of policy
This is a supplemental illustration authorized for distribution only when
preceded or accompanied by a basic illustration from the issuer. The
basic illustration contains values using the same underwriting
assumptions as this supplemental at both guaranteed charges and
guaranteed interest rates and contains other important information.
The values represented here are for a $500,000 policy on a 45 year old
male preferred non-smoker. The values reflect the cost of 20 years of
premiums. The values represented here are non-guaranteed and
assume current charges and a an interest rate of 6.64%. If guaranteed
rates and charges are used, the policy would fail in year 21. Your
values will be different based on your gender, age and health. Work
with your Financial Professional/ licensed insurance agent to create an
illustration that is tailored to your specific situation.
GE-97235 (8/14) (Exp. 8/16)
Retire Confidently with
Bright Life Indexed Universal Life (IUL )
We continue our longstanding focus on accumulation with death
benefit protection
Strong accumulation products
Strong illustration of 20 year income out of a policy on a monthly basis
Smooth Sailing is for clients that are concerned about market losses and
want some protection against those loss years.
Indexed Universal Life (IUL) BrightLife Grow product is designed to
potentially generate strong cash values and retirement income for the
premium dollars.
GE-97235 (8/14) (Exp. 8/16)
Market Sequence Makes All the Difference


You can’t predict how the market will perform before retirement.
o Market from 1973-1993 would have depleted assets.
o Market from 1990-2010 would have seen assets grow.
Using the Smooth Sailing approach helps:
o Protect a family during their working years
o Offers options in the retirement years
1973-1993: Tom’s Retirement Assets Mirroring the S&P 500 Return
Starting Balance at
Age 65
Annual Retirement Fund
Withdrawals – Year One –
1% Inflation
Tom’s Retirement Fund
Balance at Age 85
$1,000,000
$70,000
$444,791
Significant Impact Using Life
Insurance Smooth Sailing
Approach
1990-2010: Tom’s Retirement Assets Mirroring the S&P 500 Return
Starting Balance at
Age 65
Annual Retirement Fund
Withdrawals – Year One –
1% Inflation
Tom’s Retirement Fund
Balance at Age 85
$1,000,000
$70,000
$2,195,599
GE-97235 (8/14) (Exp. 8/16)
Less Impact Using Life Insurance,
But Strategy Still Offers a Safety
Net if Client Retires in a Down
Market
Take Control of Retirement Income
 There are two key items that can impact retirement income:
o Selling into losses
o High marginal income taxes
 Smooth Sailing focuses on making selective withdrawals from policy
cash values to manage portfolio losses
Can Tom meet his objective?
GE-97235 (8/14) (Exp. 8/16)
Agenda
1. Retirement Landscape
1. Maximizing Retirement by Minimizing Losses
1. Smooth Sailing Key Considerations
GE-97235 (8/14) (Exp. 8/16)
#1 Product Selection
Why is BrightLife Indexed Universal Life (IUL) a fit for Smooth Sailing?
We continue our longstanding focus on accumulation with death benefit
protection.
Smooth Sailing is for clients that are concerned about market losses and want
some protection against those loss years.
BrightLife Products have Downside Protection with Upside Potential
Strong illustration of 20 year income out of a policy on a monthly basis
IUL BrightLife Grow product is designed to potentially generate strong cash values
and retirement income for the premium dollars.
GE-97235 (8/14) (Exp. 8/16)
#2 Illustrating Smooth Sailing
What is the best way to illustrate a life insurance policy for the Smooth
Sailing concept?

Show cash value withdrawals in some random years since market losses cannot
be timed
o Consider a worst case scenario with market losses and policy withdrawals
for 2-3 years in early retirement years

Maximum funding the policy isn’t necessary in many cases

Works best with clients age 55 or younger.

Wide variation from client to client and will be based on their overall objectives,
year by year cash flow and overall needs

Substantial enough premium payments relative to the face amount to be able
to hold up to a client’s targeted life expectancy, or beyond.
GE-97235 (8/14) (Exp. 8/16)
#3 Required Minimum Distributions
Why are Required Minimum Distributions (RMDs) out of a client’s
retirement assets not shown in the down market years?
Smooth Sailing concept core focus is to illustrate what occurs when a client
can eliminate drawing down on assets at the time of a loss
NOT intended to go into specifics of various asset types and their taxation –
beyond showing how life insurance could assist.
In most instances, RMDs can be kept low in the early retirement years
 Assuming retirement at age 65, RMDs won’t arise for 6 years (after the
client would have seen three of the five years of losses).
Minimal retirement account RMDs may need to be withdrawn in the early
years due to the RMD calculation; No a substantial impact on the concept.
GE-97235 (8/14) (Exp. 8/16)
#4 Period 1973-1993
Why is the Smooth Sailing concept selecting market performance
from 1973 to 1993? Can different years be used with the concept?

20 year time period was rounded and is reasonable given the 2008 VBT
Life Expectancy tables provide a 65 year old client has a life expectancy of
approximately 22-23 years (ages 87-88).

The value of the Smooth Sailing concept is illustrated best when loss years
in client retirement portfolios occur early in retirement

1973-1993 is reasonably representative of a 20 year time period beginning
with losses.
o Since 1950, every 20 year period has between four to six years of S&P
500 losses and 1973-1993 has five years of losses (a reasonable
middle ground).

Smooth Sailing materials show both a “good” 20 year timeframe (1990 –
2010) as well as a “bad” timeframe (1973-1993) to compare and contrast.
GE-97235 (8/14) (Exp. 8/16)
#5 Alternatives
What would it look like if I took the same premium dollars and put it into
something other than life insurance?

Making this comparison is misguided since Smooth Sailing focuses on a unique
planning approach

Smooth Sailing with AXA offers clients:
o Life insurance death benefit protection during their working years
o Tax deferred way in which to accumulate cash values
o Potentially income tax-free access to life insurance cash values
o Protection against wide market fluctuations through use of a conservative
low cost IUL product.

AXA representatives may show what a client might experience with premium
dollars directed into a hypothetical portfolio with concepts such as
o Life Insurance as an Asset, or
o Return on a Lifetime
GE-97235 (8/14) (Exp. 8/16)
What Other Materials are Available?
Accumulation Based Planning Approaches
GE-97235 (8/14) (Exp. 8/16)
Agenda
1. Retirement Landscape
1. Maximizing Retirement by Minimizing Losses
1. Smooth Sailing Key Considerations
GE-97235 (8/14) (Exp. 8/16)
Disclosure
To learn more, contact your Financial Professional.
BrightLifesm Grow is issued in New York and Puerto Rico by AXA Equitable Life Insurance Company (AXA Equitable) New York, NY
and in all other jurisdictions by MONY Life Insurance Company of America, an Arizona Stock Corporation with its main
administrative office in Jersey City, NJ and is distributed by AXA Network, LLC and AXA Distributors, LLC, 1290 Avenue of the
Americas, New York, NY 10104.
S&P", Standard & Poor's ' , S&P 500 and Standard & Poor's 500 are trademarks of Standard & Poor's and have been licensed for
use by AXA Equitable, BrightLife Grow is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's
does not make any representation regarding the advisability of investing in the product.
Please be advised that this document is not intended as legal or tax advice. Accordingly, any tax information provided in this
article is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may
be imposed on the tax payer. The tax information was written to support the promotion or marketing of the transactions or
matters addressed, and you should seek advice based on your particular circumstances from an independent tax advisor. Neither
AXA Equitable, AXA Network nor AXA Distributors provide legal or tax advice.
"AXA" is a brand name of AXA Equitable Financial Services, LLC and its family of companies, including AXA Equitable Life
Insurance Company (NY,NY), MONY Life Insurance Company of America (AZ stock company, administrative office: Jersey
City NJ) AXA Advisors, LLC, and AXA Distributors, LLC. AXA S.A. is a French holding company for a group of international
insurance and financial services companies, including AXA Equitable Financial Services, LLC This brand name change
does not change the legal name of any of the AXA Equitable Financial Services, LLC companies. The obligations of AXA
Equitable Life Insurance Company and MONY Life Insurance Company of America are backed solely by their claims paying
ability.
GE-97235 (8/14) (Exp. 8/16)