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106748NLB 10/04/10

Winning in the “Second Half ”

“Setting a goal is not the

main thing. It is deciding

how you will go about

achieving it and staying

with that plan.”

– TOM LANDRYDallas Cowboys coach, 1960–1988

[ 1.1 ]

106748NLB 10/04/10

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Primary Concerns

Source: AgeWave/Harris Interactive Survey, 2010

[ 2.1 ]

45%38%

17%

Medical expenses

not covered by

insurance

Outliving savings,

lack of social

security and pension

Lack of personal

savings

When you think about your financial security during retirement,

which of the following are you most worried about?

How will I handle unexpected medical expenses?

Will I have enough income to sustain my lifestyle in the future?

People are living longer

Average life expectancies continue to improve

Source: Population Reference Bureau, 2009 World Population Data Sheet, 2009.

[ 2.2 ]

years

2233

47

6878

Roman Empire Middle Ages 1900 1950 2009 (U.S.)

Years

What are my chances of living a long life?

Source: Genworth Financial data for healthy individuals, assuming 80% of A2000 Basic ANB mortality.

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106748NLB 10/04/10

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Extended healthcare is a reality

1 Source: U.S. Department of Health and Human Services National Clearinghouse for Long Term Care Information website, May 2010

2 Source: Genworth Financial Claims Data, December 2009

3 Source: National Institute on Aging, National Institute of Health, 2/09

3.8years 2

Average length of

majority of long

term care claims

4-7years 3

Average life

expectancy after

Alzheimer's diagnosis

after age 70

2 3people 1

out

of

People over 65

who will require

long term care

[ 4.1 ]

Extended healthcare is expensive today…

In-home care:

Source: Genworth 2010 Cost of Care Survey, conducted by CareScout ®, April 2010. Based on national median costs

$43,472

$38,220

$75,190

Assisted living:

Nursing home:

Cost of care for one year in the United States

[ 4.2 ]

(44 hours/week)

(private room)

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$90,375

$79,457

$156,315

Future cost of care for one year in the United States*

...and even more expensive 15 years from now

[ 4.3 ]

In-home care:

Assisted living:

Nursing home:

(44 hours/week)

$43,472

$38,220

$75,190Source: Genworth 2010 Cost of Care Survey, conducted by CareScout ®, April 2010. Based on national median costs.* Estimates how much care might cost based on 5% annual inflation.

(private room)

Extended healthcare is expensive today…

[ 4.2 ]

Your options

AvoidRisk 2 3

people

out

of

People over 65

who will require

long term care

[ 4.4 ]

AVOID ASSUME TRANSFER

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Your options

Property Managed

Money

Money

Market

Stocks

Bonds

AssumeRisk

[ 4.5 ]

AVOID ASSUME TRANSFER

Can your portfolio sustain unexpected expenses?

[ 4.6 ]

AVOID ASSUME TRANSFER

Assumptions:

-$2M portfolio at beginning of retirement-$100,000 (5%) withdrawn annually, increased by 3% annually for inflation

-Poor market performance early in retirement

-Market performance shown is reverse order of S&P 500 returns from 2009 - 1979

This graph is hypothetical for illustrative purposes only and does not represent past or future performance

of any investment.

This example does not include investment expenses or taxes on money received, which would reduce the amount of money received each year. Withdrawals may be subject to taxes and/or penalty fees imposed

by certain investments.

[ 4.6 ]

Retirement

account value

Retire with

a $2 million

portfolio

After 30 years,

you have $1.9

million

$3,000,000

$2,000,000

$1,000,000

$0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

$2M retirement account, with hypothetical market performance over a 30 year span, $100k withdrawn annually

Market provides

average 5% annual

returns over a 30 year

period except for years

4 through 7, when

returns fell to 2%

$3,000,000

$2,000,000

$1,000,000

$0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Retire with

a $2 million

portfolio

Can your portfolio sustain unexpected expenses?

[ 4.7 ]

AVOID ASSUME TRANSFER

Assumptions:

-$2M portfolio at beginning of retirement-$100,000 (5%) withdrawn annually, increased by 3% annually for inflation

-Poor market performance early in retirement

-Market performance shown is reverse order of S&P 500 returns from 2009 - 1979

This graph is hypothetical for illustrative purposes only and does not represent past or future performance

of any investment.

This example does not include investment expenses or taxes on money received, which would reduce the amount of money received each year. Withdrawals may be subject to taxes and/or penalty fees imposed

by certain investments.

$2M retirement account, with hypothetical market performance over a 30 year span, $100k withdrawn annually

Year 1: 44 hours/week of home care $90,375Year 2: 88 hours/week of home care $189,788Year 3: 24-hour/day home care $380,438Year 4: Private room in nursing home: $180,954For a total cost of $841,000

Major illness in Year

15 requires 4 years of extended care

Retirement account

is unable to recover

from extended care

costs and is depleted

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Your options

Traditional Long Term Care Insurance

A percentage of your

portfolio can pay premium

Business owners can

deduct premiums

TransferRisk

[ 4.8 ]

AVOID ASSUME TRANSFER

Planning now can help you win in the second half

What’s your written strategy?

How will the costs of extended care impact your portfolio and your family?

Have the conversation

1

2

[ 4.9 ]

Talk with your financial professional about strategies for long term care

[ 5.10 ]

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Insurance underwritten by Genworth Life Insurance Company, and in New York, Genworth Life Insurance Company of New York. Administrative offices: Richmond VA

Genworth Financial, its affiliates and representatives, do not provide tax advice. You should consult a legal and/or tax professional for information relating to your particular situation

Genworth, Genworth Financial and the Genworth logo are registered service marks of Genworth Financial Inc.

All guarantees are based on the claims-paying ability of the issuing insurance company.

www.genworth.com

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