1. Taking Action
Toward Your Retirement Goals
Investor Seminar

2. Neither UBS Financial Services Inc. nor any of its employees provide
legal or tax advice. You should consult with their personal legal or tax
advisor regarding your personal circumstances.
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3. It is important that you understand the ways in which we conduct business
and the applicable laws and regulations that govern us. As a firm providing
wealth management services to clients in the U.S., we are registered with the
U.S. Securities and Exchange Commission (SEC) as an investment adviser and a
broker-dealer, offering both investment advisory and brokerage services.
Though there are similarities among these services, the investment advisory programs
and brokerage accounts we offer are separate and distinct, differ in material ways and
are governed by different laws and separate contracts.
It is important that you carefully read the agreements and disclosures that we provide
to you about the products or services we offer. While we strive to ensure the nature of
our services is clear in the materials we publish, if at any time you seek clarification on
the nature of your accounts or the services you receive,
please speak with your Financial Advisor.
For more information, please visit our website at www.ubs.com/workingwithus
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4. The Changing Retirement Landscape
Bush Cites Plan That Would Cut Social Security
April 29, 2005
Will Baby Boomers Go Bust?
May 16,2005
“Health-care expenses are easily the largest
underestimated cost in retirement.”
May 9, 2005
Am I Ready To Retire?
July 24, 2006
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5. Do You Have Questions About
Preparing for Retirement?
Am I saving enough? Am I going to outlive my assets?
What should I do with the assets in my employers plan?
When should I take distributions from my retirement plan?
Am I affected by estate tax issues? Should I be doing something to
protect my beneficiaries?
Who can help me address my concerns and plan for my needs?
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6. Planning for Retirement: A 4 Stage Process
Saving Receiving Managing Transferring
Preparing
Drawing
Accumulating Eligible to
to pass
your Income
Toward Withdraw
Retirement
from
Savings Goals Assets from
Assets to
Retirement
Qualified Plans
Beneficiaries
Savings
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7. Saving
Saving
Am I saving enough?
Will I have enough to retire?
Am I going to outlive my assets?
AccumulatingT
oward Savings
Goals
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8. Saving
What Do These Numbers Mean?
80 – 110
20 – 30
2–4
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9. Saving
How Much Income Will You Need?
How do you picture yourself in retirement?
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10. Saving
Inflation Erodes Retirement Savings
Annual Inflation for Retirement-Related Expenses
5.9%
6.0%
5.0% 4.6%
4.4%
3.8%
4.0%
3.2%
3.0% 2.6%
2.5%
2.4%
2.0%
1.0%
0.0%
All items Eating Food Rent of Presc. Funeral Nursing Hospital
out primary drugs/ costs home/ services
residence medical adult
supplies daycare
Health care costs increased 8.7% in 2001 –
an all-time high of 14% of GDP
Source: U.S. Bureau of Labor Statistics; 10-year average annual inflation through 12/31/03.
Nursing home and hospital service reflect 7-year through 12/31/03.
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11. Saving
Longer Life Means Longer Retirement
FDR Signed the Social Security Act in 1935
Life Expectancy (at Birth)
Life Expectancy Life Expectancy
1935 2007
Men – 59 Men – 74½
Women – 63 Women – 80
Source: Social Security Administration, Period Life Table, 2003 (updated July 2007)
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12. Reasons to Save for Retirement
The impact of inflation on your money
Item 1980 Current
First-Class Stamp $0.15 $0.411
TV Guide $0.40 $2.992
Loaf of Bread $0.52 $1.243
Average New Car $7,571 $28,4514
Average New Home $64,600 $298,5005
College Education $4,806 $13,5896
(4-year public annual
tuition and room and board)
1As of August 2007
2TV Guide, January 2008
3U.S. Bureau of Labor Statistics, November 2007
4National Automobile Dealers Association, May 2007
5U.S. Department of Housing & Urban Development, November 2007
6Trends in College Pricing 2007, The College Board’s Annual Survey of Colleges, 2007-2008
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13. The Effects of Inflation on
Saving
Retirement Income
$164,000
$100,000 Income Needed
20 Years Later at
Annual Average
Inflation Rate of
Anticipated Income
2.5%
Needed
at Retirement In
Current Dollars
Source: UBS Investment Research provided through UBS Securities LLC (2004)
The forecasts or other information in this slide regarding the likelihood that various investment and economic outcomes might occur
are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. In reviewing this
information, please note that the analysis does not take into account actual market conditions which may severely affect the outcome
of your goals over the long term. Past performance is not a guarantee of future returns.
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14. Saving
Will I Outlive My Assets?
Probability of Assets Lasting for 25 Year Retirement
(Portfolio Allocation: 60% stocks/40% bonds)
100%
80%
60%
40%
20%
0%
4% 5% 6% 7% 8%
Withdrawal Rate
Source: UBS Quantitative Research Team (2004) based on historical return data for large-cap stocks and long-term Treasury bonds
(from 1926-2003.)
The forecasts or other information in this slide regarding the likelihood that various investment and economic outcomes might occur are
hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. In reviewing this information,
please note that the analysis does not take into account actual market conditions which may severely affect the outcome of your goals
over the long term. Past performance is not a guarantee of future returns.
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15. Saving
Retirement Savings
Save and Diversify among 3 different tax baskets
Pretax After-Tax After-Tax
Tax-Deferred Tax-Deferred/Tax-Free Taxable
Stocks
Traditional IRAs Non-Deductible IRA
Bonds
Employer Plans: Roth IRAs/Roth 401(k) Mutual Funds
401(k) PS Tax Rates:
Annuities
403(b) SEP Capital Gains
Non-Qualified Plans
457 SIMPLE Dividends
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16. Saving
Are You Taking Advantage of Your IRA?
Increased Limits over Age 50 Can Help You Catch Up!
Traditional and Roth IRA Limits
Year Under Age 50 Age 50+
2007 $4,000 $5,000
2008 and after, as $5,000 $6,000
adjusted for inflation
401(k), 403(b), 457(b) Contribution Limits
Year Under Age 50 Age 50+
2008 $15,500 $20,500
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17. Saving
Have You Considered a Roth IRA?
Added benefits if your MAGI is …
Single Filers* Joint Filers*
Less than $101,000 Less than $159,000
Contributions always non-deductible (after-tax)
Can withdraw contributions at any time—no tax/penalty
Qualified distributions from Roth are tax-free vs. tax-deferred
For Owner and Beneficiaries
—
No required minimum distributions (RMDs) at 70½
*Eligibility for Roth contributions phase out for modified adjusted gross income (MAGI)
between $101,000 to $116,000 (single filing), $159,000 to $169,000 (joint filing) for 2008.
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18. Saving
The Power of 401(k) Contributions
How much can a 50-year old accumulate in a 401(k) before retiring at
age 58?
50-year old earning $75,000*
Annual 6% 8% 10%
Contribution Rate of Return Rate of Return Rate of Return
$4,500 (6%) $53,527 $59,036 $65,270
$10,000 (13.3%) $118,949 $131,190 $145,044
Max of $20,500 $243,846 $268,941 $297,341
Note: Starting at age 50, this hypothetical illustration assumes various contributions that are made at the end of each month and lasts
for 9 years until retirement.
*This illustration is hypothetical and does not represent the performance of any specific investment or security
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19. Saving: Action Steps
―Crunch the numbers‖ to get a clear picture of
Saving where you are today and what you need to do
for the future
Establish a formal financial plan that includes
your retirement goals:
Consider saving with all three tax baskets
Maximize contributions to retirement plans
AccumulatingT
owards
Savings Goals
Explore Roth IRA option
Implement the plan and review progress
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20. Receiving
Receiving
Receiving
Should I roll the assets over from my
employer plan into an IRA
What are my options?
What are some key issues I
Eligible to
distribute
should know?
employer plans
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21. When Can You Move Your Consolidate
Consolidate
Employer Plan Assets to an IRA?
Traditional IRA
or
Company Plan
Roth IRA*
Retiring
401(k)
403(b)
Rollover
457(b) Changing jobs
IRA
ESOP
Profit Sharing While still employed
In-service withdrawal
Lump Sum Pensions—Access, if available, is typically only allowed at
retirement. (Possibilities depend on plan provisions)
* effective 2008 under the Pension Protection Act, eligible qualified plan distributions may be rolled directly into a
Roth IRA. Income limits on conversions still apply until 2010.
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22. Receiving
Why Consolidate Assets in IRA?
Advantages of IRA Consolidation
Direct Financial Advisor Relationship for Guidance
Greater Investment Flexibility and Choice
More Flexibility in making Beneficiary Designations
Access to Funds: Distributions and Withdrawals
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23. Receiving
Do you own company stock in your plan?
Are there circumstances where taking a plan distribution and not rolling
over to an IRA makes good planning sense?
Qualified Plan
Traditional
Mutual Funds
Rollover to IRA IRA
Cash
Distribute Shares After-Tax
Company
NUA Account
Stock
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24. Net Unrealized Appreciation (NUA)—Example
$100,000 in company stock held in 401(k) account
Standard 401(k)
Take NUA Treatment on
Distribution Distribution Company Stock
Distribute in-kind and
Cash out $100,000
sell shares
Cost Basis
Minus Ordinary income tax
$100,000 x .33 = $33,000 $10,000 x .33 = $3,300
Taxes* 33% tax rate
Appreciation
Capital gains tax
15% tax rate $90,000 x .15 = $13,500
Equals Final $83,200
$67,000
Balance
Total tax savings = $16,200
*Assumes a 33% ordinary income tax rate and 15% capital gains tax rate. Tax rates reflect federal taxes; state taxes may also apply.
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There may be additional tax considerations. Neither UBS Financial Services Inc. nor its employees (including Financial Advisors)
provide tax or legal advice. You should consult with your attorney and tax advisor regarding your personal circumstances.

25. Receiving
IRA to Roth IRA Conversion
Tax-deferred Income
Traditional IRA
MAGI* under $100,000?
Recently retired with
lower income?
Tax-free Income**
Roth IRA
*MAGI - modified adjusted gross income
** For all qualified distributions
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26. Roth IRA Rollover:
Receiving
A New Opportunity in 2008
Employer-Sponsored Plan
MAGI* under $100,000?
Tax due on pre-tax
contributions and earnings
Opportunity for tax-free
Roth IRA distributions in the future**
* MAGI – Modified adjusted gross income
** For all qualified distributions
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27. Receiving: Action Steps
Discuss with your Financial Advisor, if
Receiving applicable, the opportunities relating to:
 Taking an in-service withdrawal from
your qualified plan.
 Consolidating your retirement assets in
an IRA
 Utilizing Net Unrealized Appreciation for your
Eligible to
Distribute from
company stock
Qualified Plans
 Converting from a traditional to Roth IRA or
rolling over a distribution from an employer-
sponsored plan directly to a Roth IRA
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28. Managing
How can I take distributions without
Managing
penalties?
When am I required to begin taking
distributions?
How can I structure my investments
Taking to help provide the income I will
income from
need?
IRA
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29. Managing
Managing—Taking Distributions from IRA
Managing
Taking Income from a Traditional IRA
When can I… When do I have to…
Age Age Age
Pre 59½ Over 59½ 70½ +
No more early
IRC 72(t) Required
withdrawal penalties Minimum
Distributions
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30. Managing
Providing Enough Income In Retirement
Individuals may be responsible for over 60% of their
retirement income
22.9% Investment Income
40.9% Earned Income
Pensions & Annuities
Social Security
Other
20.0%
14.6%
1.6%
Individuals age 65+ with annual incomes of $50,000 or more
Source: Employee Benefit Research Institute (EBRI) estimates of the March 2007 Current Population Survey
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31. Managing
Do My Savings Cover My Income Needs?
Sources of Income Essential
Social Security Housing
Pensions Health Insurance
Earned Income Food/Living Expenses
Cash Flow
Personal Investments:
Discretionary
Tax Deductible
Travel
Entertainment
Tax-Deferred
Hobbies/Leisure
After Tax
How should I invest – asset placement?
Which assets should I withdraw from first?
Am I being tax efficient with my capital gains and dividends?
How should I withdraw income? Do I have a plan in place?
Am I taking on an appropriate level of risk for my desired return?
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32. Managing: Action Steps
Work with your Financial Advisor to develop a
Managing
comprehensive strategy for:
 Providing an income stream designed to
support your desired retirement lifestyle
 Managing retirement assets to last during
your expected lifetime
Taking
 Ensuring you are set-up to take your
income from
IRA required minimum distributions
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33. Passing Wealth
Transferring
Am I affected by Estate tax issues?
Should I be doing something to
protect my beneficiaries?
Transferring
retirement
assets to
beneficiaries
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34. Beneficiary Designation— Transferring
Advantages of a Stretch IRA
What is the “Stretch IRA” Strategy?
IRA Owner
IRA Beneficiary
Beneficiary has ability to take minimum required distributions from
inherited IRA over his/her own life expectancy
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35. An Example of the Stretch IRA Transferring
Strategy at Work
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36. An Example of the Stretch IRA
Strategy Transferring
at Work
$300,000 initial balance in IRA pays total distributions of over
$2.1 million over 46 years*
* Asset growth is based on a 7% rate of return and assumes all generations receive their respective required minimum distributions as defined by the IRS on
December 31 of each year distributions are required.
This number assumes that each generation elected to take only the required minimum over the longest period allowed by current law. Should any recipient
elect to take distributions greater than the minimum distribution or receive a lump sum at any point, this total would significantly change.
This illustration is hypothetical and not meant to represent the performance of any specific investment or security. Actual returns will vary and
principal value will fluctuate. Individual results will vary.
Distributions are subject to income taxes. This illustration is based on current tax and regulations law (as of November 2005), which may
change in the future. 35

37. Transferring
Beneficiary Review Discussion
Beneficiary designations are more important than ever!
Make a beneficiary review part of your planning process:
IRA accounts should have updated beneficiary designations on file- you
should review your beneficiary plan with your legal advisor
Review your beneficiary form to ensure it has been
completed correctly
 Primary listed
 Contingent listed
 Multiple beneficiaries—designate shares
 Copy of Beneficiary Form to FA, Attorney
 Review annually/life event changes
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38. Transferring
Transferring: Action Steps
Transferring Set up meeting with your Financial Advisor
and legal advisor to discuss:
 Reviewing your will
 Beneficiary Review
 Titling of assets
Preparing to
 Life Insurance needs
transfer
retirement
assets to
beneficiaries
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39. No Matter What Stage You’re In . . .
Saving Receiving Managing Transferring
The choices you make today will affect the quality of your
retirement and the size of your estate.
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40. ab
UBS Financial Services Inc.