1. Choose your path to retirement.
Navigating the challenges on the road ahead.
(SMRU1735114 Exp 6.1.18)

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Presented by
Registered Representative offering securities through NYLIFE Securities LLC.,
Member FINRA/SIPC, A Licensed Insurance Agency
Andrew M. Leeman
Financial Services Professional
Agent, New York Life Insurance Company
Registered Representative offering securities through NYLIFE
Securities, LLC (member FINRA/SIPC), a Licensed Insurance
Agency
6100 Oak Tree Blvd.
Suite 300
Independence, OH, 44131
M. 330 639 8203
B. 216 532 3094
E. aleeman@ft.newyorklife.com
Agent information.

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This informational seminar and insurance sales presentation will
cover a variety of topics examining the role insurance and other
financial products may play in your financial decisions. Although
many of the topics presented may involve tax, legal, accounting, or
other issues, neither New York Life nor any of its agents are in the
business of offering such advice. You should consult with your own
professional advisors to examine the tax, legal, or accounting
aspects of any topic presented.
Disclaimer

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Overcome the challenges and give retirement the green
light with these 5 strategies.
01.
Challenge
Cost of living
increases in
retirement
02.
Challenge
Outliving your
retirement
savings
03.
Challenge
Taxes
04.
Challenge
Expenses
05.
Challenge
Expectation
vs. reality
Consider some possible solutions
Agenda

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Challenge #1
Inflation
Cost of living increases in retirement.
Market risks

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Source: http://inflationdata.com/Inflation/Inflation_rate/HistoricalInflation.aspx > Historical Inflation Rate February 2017
Inflation and cost of living
Cost of living increases in retirement.
2010
1.64%
2012
2.07%
2016
1.26%

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The effects of inflation on the cost of living.
Source: http://fintrend.com/financial calculators/retirement-planning-calculator
$500,000
Keep your money growing.
$586,000
$688,000
$807,000
$946,000

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Could early losses in
retirement undermine your
goals and dreams?
What are the market risks?

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Challenge #2
Savings withdrawal rate
Outliving your retirement savings.
Longevity

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Too much =
depletion
of sources
Not enough =
limited enjoyment
When it comes to withdrawal rates,
you have to strike the right balance.

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• People are living longer
than ever before
• A longer lifespan may mean
stretching your retirement savings
Consider this:
Will living longer affect your
retirement savings?

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Source: Social Security Administration 2017. www.ssa.gov/planners/lifeexpectancy.html
If you retire at
65,
birthday, you can
expect to live until age
Did you know?
you can expect
to live until
86
If you celebrate your
86th
93
Year olds will
live past age
1 out of 4
65
90
1 out of 10
will live
past age
65

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If you lose your spouse at age 65, you still have a 70%
chance of reaching 85.
Data extracted from: Analysis of the 2013 Period Life Table for Social Security Area Population. http://www.ssa.gov/oact/STATS/table4c6.html
Be able to cover
final expenses?
If you lost your spouse, would you:
Have sufficient
income?
Be able to meet
basic needs?
Surviving the loss of a spouse.

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Challenge #3
Required minimums
distributions (RMDs)
Rollovers Long-term
capital gains
How could taxes affect your retirement savings?
Taxes

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Tax deferral
is not forever
Taxes reduce
spendable income
Help minimize
the tax bite
How big is the tax bite?

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Let’s consider the tax bite further:
• Distributions from a 401(k) lump-sum distribution are
taxed at a marginal rate
• Rollover to IRA enables smaller withdrawals
and lower taxes. (Note: This assumes that the 401(k) plan
does not let participants take partial withdrawals.)
• Balance retains tax-deferred status, so growth continues
Rollovers and taxes.
*Before rolling over the proceeds of your retirement plan to an Individual Retirement Account (IRA) or annuity; consider whether you would benefit from other
possible options such as leaving the funds in your existing plan or transferring them into a new employer’s plan. You should consider the specific terms and rules that
relate to each option including: the available investment options, applicable fees and expenses, the services offered, the withdrawal options, the potential flexibility
around taking IRS required minimum distributions from the option, tax consequences of withdrawals and of removing shares of employer stock from your plan,
possible protection from creditors and legal judgments and your unique situation.

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Taxation of net long-term capital gains
(investments held more than 12 months)
Federal
income
tax bracket
Maximum tax rate
for sales occurring
prior to 1/1/13
Maximum tax rate
for sales occurring
on/after 1/1/13
25%, 28%,
33%, 35% 15%
15%
(20% for 39.6%
tax bracket)
10% or 15% 0% 0%
Long-term capital gains and taxes.

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Required minimum distributions are:
• Taxed as ordinary income
• Taxed at an individual’s current federal
income tax rate
• May be subject to state and local taxes
• Taxed in the year taken
• Keep in mind, after-tax contributions
may be tax free
Taxes could
significantly
reduce your
retirement
income and
enjoyment
Required minimum distributions and taxes.

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Challenge #4
Health care The basics The extras Leaving a legacy
Expenses.

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• How long will my savings last?
• How could I pay these expenses?
EBRI Notes, Savings Medicare beneficiaries need for health expenses: Some couples need as
much as $350,000,” January 2017. Vol. 38, No. 1
Longevity is good,
but there’s a cost.
Medical costs during retirement.

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Source: Consumer Expenditure Survey, September 2014
Retiree spending habits as a percent of incomes.
Other
Entertainment/Eating Out
Health care
Housing
Personal Insurance and Pensions
Paying for the basics.
11%
25%
12%
11%
7%
34%
Food/Transport/Utilities/Public Services

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Source: Purchasing Power of Money in the U.S., http://www.measuringworth.com
The decreasing buying power of $100
Purchasing Power
Consumer Price Index Inflation Calculations*
Base = 1990
1990 2000 2010 2014
$100.00 $132.00 $167.00 $181.00
Inflation and your purchasing power.

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The cost of basics gradually increases
*Bureau of Labor Statistics, Consumer Expenditure Survey, Expediture Tables. www.bls.gov. Information retrieved August 2016.
Inflation and your purchasing power.
1990
2000
2010
2015

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Dining GiftsEntertainment Travel
What about the extras?

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Favorite charity
Think about what’s important to you, and how you’d like
to be remembered.
Family Alma mater or other institution
Do you want to leave a legacy?

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Challenge #4b
How much do
you need to
maintain your
current lifestyle?
How much can you
withdraw from your
retirement savings?
What will your
Social Security
provide?
Expectation vs. reality.

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Will you really reduce your spending after you retire?
Conventional
wisdom about
expenses after
retirement.
Expenses
after retirement
Expenses
before retirement
Paying for the necessities and the extras.

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Did you know that retirees are
actually living the same lifestyle?
*Employee Benefit Research Institute Issue Brief, February 2012. Estimates from the Consumption and Activities Mail survey (2001–2009).
Percent of population that anticipated a decline/increase
in spending vs. actual experience*
Think again.
Drop Increase
Anticipated
Experienced

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Rule of thumb:
$500,000
at start =
$20,000
annually
Withdraw 4%
of total savings annually
$1,000,000
at start =
$40,000
annually
How much can I withdraw?

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Fact: Most people receive Social Security and other
sources of retirement income
*U.S. Social Security Administration, Office of Retirement and Disability Policy, Fast Facts & Figures, About Social Security, 2016. www.ssa.gov
Sources of income.
Other
Government Employee Pension
Private Pensions
Asset Income
Earnings
Social Security
31%31%
15%
3%
6%
14%

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Source: U.S. Social Security Administration, Monthly Statistical Snapshot, February 2017.
https://ssa.gov/policy/docs/quickfacts/stat_snapshot/
After-tax amount:
Average monthly benefit in 2017 - $1,250
- $1,250
= $1,000
What does the average
Social Security benefit look like?
20% state and federal income taxes
After-tax benefit

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There are 5 strategies to help you on the road
to a more fulfilling retirement:
Optimize investment portfolio
Minimize income taxes
Plan for extended periods of care not covered by medical insurance
Consider guaranteed income for life*
Consider other sources of retirement income
1.
2.
3.
4.
5.
Let’s talk about solutions.
*Guarantees are dependent upon the claims paying ability of the issuing
insurer.

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Fixed return
products
Before and
after retirement
Evaluate your
portfolio
• Make adjustments
as necessary
• Consider being
more conservative
Optimize your investment portfolio.

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• Roll over your 401(k) to an IRA
• Smaller payouts = less income tax
(Note: This assumes that the 401(k) plan
does not let participants take partial
withdrawals. Please check with your
employer s benefits department for the
specifics of your plan.)
• Balance earns tax-deferred interest
401(k) IRA
Smaller
Payments
Avoid lump-sum distributions
Minimize your income taxes.
*Before rolling over the proceeds of your retirement plan to an Individual Retirement Account (IRA) or annuity; consider whether you would benefit from other
possible options such as leaving the funds in your existing plan or transferring them into a new employer’s plan. You should consider the specific terms and rules that
relate to each option including: the available investment options, applicable fees and expenses, the services offered, the withdrawal options, the potential flexibility
around taking IRS required minimum distributions from the option, tax consequences of withdrawals and of removing shares of employer stock from your plan,
possible protection from creditors and legal judgments and your unique situation.

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Tax advantaged assets include:
Tax-free bonds Long-term capital
gain investments
Life
insurance
Minimize your income taxes.
*Keep in mind cash value is accessed through withdrawals and loans. Withdrawals and policy loans decrease the death benefit and cash value by the amount of the withdrawal or
outstanding loan and interest. And loans against your policy accrue interest. Assets are mentioned for informational purposes only and are not intended as a solicitation. Registered
products may only be offered by a properly licensed Registered Representative.

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• Are living longer lives
• Have increased health issues and chronic illness
• May need extended periods of care for an illness or injury
Consider that people:
But you might need more…

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*Centers for Disease Control and Prevention, NCHS Data Brief, Number 100, Multiple Chronic Conditions Among Adults Aged 45 and Over:
Trends Over the Past 10 Years, Key Findings from the National Health Interview Survey 1999-2000 and 2009—2010, released July 2012.
Percentage of people age 65 and over
who have two or more chronic conditions*
Chronic health conditions.
0
10
20
30
40
50
43%
36%
49%
39%
45%
37%
Women Men Total
2009–2010
1999–2000

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• Income for a surviving spouse.
• Plan for guaranteed income. Keep in mind,
guarantees are based on the claims-paying
ability of the product issuer
Leaving a spouse behind.

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The challenge: Take a lifetime of savings and convert it in to a stream of
income. Increasing life expectancies and rising health care costs mean your
dollars have to stretch even further.
Working longer*
• May allow some Americans like you
to rebuild retirement savings that
were depleted in the 2008 stock
market collapse
• 10% of Americans don’t expect to
retire at all
• Offers a chance to utilize employer-
provided health insurance at least
until you qualify for Medicare
The percentage of workers who expect to retire after age 65 has increased
steadily over the past 20+ years.*
*Employee Benefit Research Institute, 2015 RCS Fact Sheet #2, Expectations about retirement. www.ebri.org
Outliving savings
% Workers Who Expect to Retire after 65
1991
11%
2000
20%
2015
36%
Guaranteed income for life.

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Probability of a healthy 65-year-old living to various ages*
*Society of Actuaries; Key Findings and Issues: Longevity, 2011 Risks and Process of Retirement Survey Report”
Age
80
85
90
95
100
Male
60%
40%
20%
6%
1%
Female
71%
53%
31%
12%
3%
Survivor
88%
72%
45%
18%
4%
Longevity risk.

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• Provides you a guaranteed lifetime stream of income
• Payments will continue throughout your lifetime* and
are not tied to market performance
*Guarantees are based on the claims-paying ability of the issuer. Death benefit not available in NY State, and not available on qualified policies
Guarantees based on the claims-paying ability of New York Life Insurance and Annuity Corporation (NYLIAC) (a Delaware Corporation)
Products approved in jurisdictions
Policy form number in OR is ICC11-P102
Benefits: The New York Life Guaranteed Income Annuity
Guaranteed income for life.

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Guarantees and benefits*
• Offers periods of guaranteed fixed interest rates
• Tax-deferred growth
• Access to money**
• No market exposure or volatility
• Guaranteed death benefit prior to annuitization
• Lifetime income opportunity
*New York Life Fixed Annuities are issued by New York Life Insurance and Annuity Corporation (NYLIAC), a Delaware Corporation, a wholly owned subsidiary of
New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010. Guarantees are based on the claims-paying ability of the issuer. Products available
in jurisdictions where approved. In most jurisdictions, the policy form number for the New York Life Secure Term Choice Fixed Annuity in OR is ICC11-P113; for
the Secure Term MVA Fixed Annuity the policy form number in OR is ICC10-P111; for the Flexible Premium Fixed Annuity the policy form number in OR is ICC10-
P108.
**Withdrawals may be subject to regular income tax, and if made prior to age 59½, may be subject to a 10% IRS penalty. In addition, surrender charges and
other charges may apply.
The New York Life
Fixed deferred annuities.

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Advantages Disadvantages
Interest rate is fixed and certain
Income is dependable
FDIC insured up to $250K per
individual account per bank
Rate may not be competitive
Income is taxable and could affect
taxation of Social Security benefits
What about CDs?

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• Income and legacy
• Gives you death benefit protection
• Offers cash value, which can be accessed via policy loans*
for income or emergencies
• Allows you to leave a legacy
*Keep in mind, loans accrue interest and decrease the total death benefit and cash value.
Permanent life insurance solutions.

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How can you create it and who will you create it for?
• For your children, grandchildren, or future generations
• For a charitable organization
• For other causes that you feel passionate about
A lasting legacy.

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Navigating the challenges along the way is up to you.
Together, we can overcome them!
You can give retirement the green light.

47. Thank you!