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Retirement Planning for Women

IAR Name • IAR Title • Date

Registered Address

3017831.X.P-1 C10-1112-004 (12/10)

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.

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 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.



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).



Variable annuities, group annuities or funding agreements are long-term investments designed for retirement purposes. If withdrawals are taken prior to age 59 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.

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 59 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.


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 a 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.


Retirement - Insurance - Investments 12

What unique retirement planning challenges do women face?

Where am I today?

How should I be investing in order to work towards my goals?

Am I prepared for the future?

What We’ll Cover Today

Who will join us along the way

Sondra Eileen Donna

“I lost so much money in the market…I just stopped investing.

What should I do now?”

“I thought I was on track, but then my

husband died 10 years ago. Now what?”

“I think my husband and I are doing

the right things. But I’m always willing

to learn more.”


What unique retirement planning challenges do women face?

“Is preparing for retirement really

that different for women?”

Donna

83% of women were more likely to report being stressed about money compared with 78% of men. Source: health.usnews.com . See: “Managing Your Money-Related Stress” October 8, 2008


They’re earning more…

51% of professional jobs

U.S. Department of Labor, 2009.

Women are taking greater charge of their finances.

They’re starting more businesses.

52% of new business start ups

SCORE, Partner with SBA.gov, 2006.

They’re controlling more spending…

Boston Consulting Group, 2009.

73% of household spending

They’re making more major purchases…

20% of home buyers are single women.

National Association of Realtors, 2008.

The Good News


Women are likely to receive less from other sources.

And are less likely to get a pension…

Only 28% of women earn a pension.

AARP, 2006.SSA..gov, 2010.

Yet — they need their money to last longer.

Average 65-year-old man will live to age 83.

Average 65-year-old woman will live to age 85.

Women tend to earn less than men…

Women get 80 cents for every $1 men earn.

U.S. Department of Labor, 2009.

So they receive less from Social Security…

SSA.gov, 2010.

Women average 25% less than men.

The Not-So-Good News


Women Want Relief from Financial Stress

• One in five adults aged 45 and older are suffering health problems due to financial stress, according to a new survey by AARP

Source: Milwaukee Business Journal reported on Jan. 2, 2009.

• Women want freedom from financial stress more than they want to be thin, more than they want a faithful partner, and in some cases, more than they love their children, according to a poll on bettyconfidential.com

• 83% of women chose “never having to worry about money again”, while 17% chose “never having to diet again”

• 52% chose “freedom from financial worries”, while only 48% chose “having their partner always be faithful”

• 60% of women chose “be certain that your children will live happy, successful lives” over money. But there were still 40 percent of respondents who chose “never having to worry about money again”.

Source: Bettyconfidential.com See: “Women Want Many” April 22, 2009

Study: Conducted online on BettyConfidential.com through a series of Feel the Pulse of Women polls



You’ll be much more motivated to save.

Envision Where You’d Like to Be

Where am I today?

“I can’t possibly save any more

for my future expenses. It’s tough

enough just making ends meet for

today’s expenses.”

Sondra

Women’s debt stress is about 34% higher than men for the same level of debt to income

Source: columbus.bizjournals.com See: “Consumer debt stress eases for September.” Oct. 26, 2009

Retirement - Insurance - Investments


Your Number – Every Person Has One

• Your Number – it’s the amount of money you’ll need to have saved to retire the way you want

• If you don’t know Your Number, you’re not alone

• Only 47% of workers report they and/or their spouse have tried to calculate how much money they will need to live comfortably in retirement.

Source: Employee Benefit Research Institute, 2008 Retirement Confidence Survey

• 44% of workers who did this calculation changed their retirement planning as a result.

Source: Employee Benefit Research Institute, 2008 Retirement Confidence Survey


Step One: Know Your Number

• Your Number is based on several factors:

• Current age

• Retirement savings

• When you want to retire

• Retirement expenses

• Annual income

• Inflation

• Return on investment

• Social Security benefits

• Guaranteed pension plan

• Life expectancy


Find yours at INGYourNumber.com


Take Stock of Where You Are

• How much do you spend each month?

• How much debt have you accumulated?

• Do you have an emergency fund to cover 3-6 months?

• How much have you saved?

• How much more could you save — if you spent even a little less?


Where Can You Save More?

• Sacrifices to consider:• One less latte a day of the

week = $90 each month

• Two less $5=trips to the fast food joint a week = $40 a month

• Other ways to save:• Cut back on music,

entertainment, cloths, magazines, etc.

• You’d be amazed how those expenses add up each month!


Taxable Income*

401(k) contribution:Catch-up contribution

Taxable income:

Federal income tax:

Employer match:

$46,166.67

- 0- 0

= $46,166.67

$11,541.66

0

Taxable Income*

401(k) contribution:Catch-up contribution

Reduced taxable income:

Federal income tax:

Employer match:

$46,166.67

- $ 4,616.67- $ 4,000.00

= $8,616.67

$9,387.50

$2,308.33

* Taxable income shown is after standard deductions applied. For illustrative purposes only. Assumes 25% tax bracket, 10% 401(k) contribution, $4,000 catch-up contribution and 50% employer match–up to 10%.

Sondra Decided she couldn’t save…but still ended up paying Uncle Sam over $2,100 more!

Eileen Paid herself first. Saved over $2,100 on taxes. Plus got over $2,300 more free from her employer!

Maximize Contributions to Your Employer-Sponsored Retirement Plan

Paycheck

Traditional 401k

Distributions are all taxable at ordinary

income

Pre -Tax After Tax

Roth 401k

Distributions are all tax free

*No loans available from Roth 401k

Employee Contributions Employer Contributions

Pre-Tax

Employer Match

Distributions are all taxable at ordinary

income

Does your Employer offer the new Roth 401k?

The Key to Distribution: TaxationTaking an Inventory of Your Buckets of Money

Understanding Taxation is Key to Understanding Distribution

QUALIFIED

Before Tax Contribution

Taxed as Ordinary Income on Withdrawal

NON -QUALIFIED

Growth taxed upon Withdrawal

QUALIFIED

Taxed Annually

After-Tax Contribution

No Federal Tax

QUALIFIED

Tax free withdrawal

NON –QUALIFIED

TAX DEFERRED

ROTH IRA



____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________


TAX EXEMPT

$________________________

% _______________________

Your projected investment Income

Your Fixed Income Streams:

QUALIFIEDReal

Estate

Social Security

Pension

Inheritance

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

?????

How should I be investing in order to work towards my goals?

“I know I’m losing time.

But I’m afraid to lose

any more money.”

Eileen



Levels of Risks and the Asset Classes

Cash

Large Cap Equities

Fixed Income

Mid Cap Equities

Intl’ Equities

Small Cap Equities

Real Estate


Stocks generally provide investors with the best growth potential over the long-term.

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, while stocks are not guaranteed and have been more volatile than other asset classes. Furthermore, small company stocks are more volatile than large company stocks, are subject to significant price fluctuations and business risk, and are thinly traded. Generally, the higher the potential return, the greater the risk.

Past Performance is no guarantee of future results. Hypothetical value if $1 invested at the beginning of 1926. Assumes reinvestment of income and no transaction costs or taxes. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. ©2009 Morningstar, Inc. All rights reserved. 3/1/2009.

Investing for the Long Run



Source: ChartSource, Standard & Poor's Financial Communications.

Stocks are represented by the S&P 500® Index, an unmanaged index generally considered representative of the stock market. The return and principal value of investing in a stock mutual fund or variable annuity funding option fluctuates with changes in market conditions. Stocks may offer greater growth potential in comparison to bonds, but carry more risk.

Bonds are represented by long-term Treasuries (10+ years) and constructed from yields published by the Federal Reserve. The principal value of a bond varies inversely to the rise and decline of interest rates. Bonds typically offer a fixed rate of return, if held to maturity. However, bonds may contain a call feature that may be exercised prior to maturity.

Cash is represented by the yield of 90-day Treasury bills and is a highly liquid security with a known market value and maturity when acquired, of less than three months.

Past performance does not guarantee future results. An index is unmanaged. You cannot invest directly in an index, and indices do not reflect the portfolio of any investment.

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

Stick with your strategy—even when the market gets rough.

This chart is for illustrative purposes only. Stock market performance is based on the S&P 500®, and not illustrative of any particular investments. Source: National Bureau of Economic Research. Past performance is historical and cannot predict future results. There are risks of fluctuating prices and uncertainty with regard to rates of return and yield inherent in investing. The S&P 500 is an unmanaged index of the common stock prices of 500 widely-held U.S. stocks. An investor cannot invest directly in an index.

S&P 500 Performance Following Recessions

4.8%

Recession stock market low

6 months later 1 year later

5/26/1970 4.15% 32.14%

10/3/1974 34.47% 38.14%

3/27/1980 10.69% 21.62%

8/12/1982 39.25% 59.26%

10/11/1990 26.42% 31.06%

9/21/2001 17.82% -12.84%

Average 22.13% 28.23%


6% return = 8% return =

Difference =

$ 335,206.71$ 489,383.47

+ $154,176.76

6% return = 8% return =

Difference =

$ 55,886.51

$ 62,581.95

+$ 6,695.38

Sondra Invests $4000 annually

Age 35 - 65

Eileen Invests $4000 annually

Age 55 - 65

Is the return worth the risk? TIME MATTERS!

Know your risk tolerance and balance it with your age and time frame.

Rates of return are hypothetical and not indicative of any actual investment, which will fluctuate and may lose value.

Time to Review

• Types of money and taxation

• How you should invest in relationship to your risk tolerance

• Importance of staying in the market

• How age plays a roll in your investment decisions

“I’ve been so focused

on saving. I never gave

much thought to how I

would manage those

savings for future needs.”

Am I prepared for the future?

Donna



Organize Your Assets into Categories

• Create an emergency fund that could cover up to six months’ expenses

• Separate remaining assets into three categories:1. Short-term money to help

cover your basic expenses

2. Mid-term money to help cover your lifestyle needs

3. Long-term money that might grow and help balance rising costs of inflation

Short Term: Have a steady stream of cash to pay your basic expenses

What it covers:

• Food

• Housing

• Utilities

• Taxes

• Health Care

• Insurance

• Emergencies

What goes in:

• Social Security

• Pension

• Part-time income

• Rental income

• Investment income

Mid-term: Once basic cost of living is covered, fund life style needs.

• Travel

• Entertainment

• House/car repairs

• Education

How much do you need and where does this money come from?

Long Term: Stash some cash away for the long term.

How do you keep your portfolio growing?

1. Withdrawal of 5% if the portfolio growth is 7%

2. Keep a piece of your portfolio in reserve

3. Additional income in order to continue the growth of your portfolio

Rates of return are hypothetical and not indicative of any actual investment, which will fluctuate and may lose value.

Early Withdrawal Generally, if you withdraw 10% of amount Penalty prior to age 591/2 withdrawn

Type of Tax When It Applies How Much It May Be

Required Minimum If you don’t withdraw at least 50% of Minimum Required Distribution the Minimum Required Distribution not taken Penalty Distribution beginning at

the later of retirement or April 1st of the year after you turn age 701/2

Don’t withdraw from your tax-deferred plans too early or too late.

Your tax-deferred savings limit when & how you take your money.

Don’t withdraw too much too fast.

65 70 75 80 8565 70 75 80 85 90

Donna withdraws 10% each year…

And runs out of money in 11 years.

Eileen withdraws 7% each year…

And runs out of money in 16 years.

Sondra withdraws 5% each year…

And it lasts 24 years.

This chart assumes a retirement balance of $200,000, an average inflation rate of 3%, and an average fixed rate of return of 4%. This chart is for illustrative purposes only and is not indicative of any investment. Past performance is no guarantee of future results.

Everyone has a different number


Don’t Feel You Have to Go it Alone

A financial professional:

• Helps you evaluate your entire financial situation

• Provides objective input

• Explains risks and options

• Offers choices personalized to your situation

• Operates from experience


Make financial planning a priority!

Don’t Wait any Longer to Move Forward!


Retirement Planning for Women

Thank You!

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