©2007 ING North America Insurance Corporation1Seminar provided by ING Financial Advisers, LLC (member SIPC). C07-0122-004 3/07

Presenter NamePresenter FunctionDate

Retirement planning for women

How you might save more and spend it longer

©2007 ING North America Insurance Corporation2

The ING Difference…

to life planning

about financial realities

that take the whole picture into account

©2007 ING North America Insurance Corporation3

What ground we’ll cover today

What unique investment challenges do women face?

Am I saving as much as I could —where I should?

How can I invest now so I can potentially maintain my lifestyle later?

How should I spend later so I won’t risk outliving my assets?

©2007 ING North America Insurance Corporation4

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 I’m doing the right things. But I’m always willing

to learn more.”

©2007 ING North America Insurance Corporation5

What unique retirement planning challenges do women face?

“Is preparing for

retirement really that

different for women?”

©2007 ING North America Insurance Corporation6

They’re earning more…

50% of professional jobs

U.S. Department of Labor, 2005.

The good news:Women are taking greater charge of their finances.

They’re starting more businesses.

55% of new business start ups

SCORE, Partner with SBA.gov, 2005.

They’re controlling more spending…

The Trendsight Group, 2005.

80% of household spending

They’re making more major purchases…

21% of home buyers are single women.

National Association of Realtors, 2005.

©2007 ING North America Insurance Corporation7

The not-so-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.Centers for Disease Control and Prevention, cdc.gov, 2006.

Yet — they need their money to last longer.

Average 65-year-old man will live to age 82.

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

Women tend to earn less than men…

Women get 81% forevery $1 men earn.

U.S. Department of Labor, 2005.

So they receive less from Social Security…

Income of The Aged Chartbook, 2005 ssa.gov.

Women average 26% less than men.

©2007 ING North America Insurance Corporation8

The bottom line: you’ll need to save more — and spend it longer

“Sources of Income for Older Persons in 2004,” Public Policy Institute, Data Digest, AARP, 2005.

Men

Social

Security: $12,583

Pension: $12,000

Social

Security: $8,799

Pension:

$6,141

Women

©2007 ING North America Insurance Corporation9

Am I saving as much I could —and where I should?

“I can’t possibly save

any more for my future

expenses. It’s tough enough

just making ends meet for

today’s expenses.”

©2007 ING North America Insurance Corporation10

Envision where you’d like to be. You’ll be much more motivated to save.

©2007 ING North America Insurance Corporation11

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?

©2007 ING North America Insurance Corporation12

Taxable Income

401(k) contribution:Catch-up contribution

Taxable income:

Federal income tax:

Employer match:

$4,166.67

- 0- 0

= $4,166.67

$1,041.67

0

Taxable Income

401(k) contribution:Catch-up contribution

Reduced taxable income:

Federal income tax:

Employer match:

$4,166.67

- $416.67- $333.33

= $3,416.67

$854.17

$166.67

For illustrative purposes only. Assumes 25% tax bracket, 10% 401(k) contribution, 1/12 of the $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 nearly $200 more!

Eileen Paid herself first. Saved nearly $200 on taxes. Plus got over $150 more free from her employer!

Maximize contributions to your employer-sponsored retirement plan.

©2007 ING North America Insurance Corporation13

See how even saving a little more now adds up over time.

• Defers 5% of her salary for the next 15 years

• Increases her account by $59,910

• Defers 8% of her salary for the next 15 years

• Increases her account by $95,856 nearly $36,000 more than Sondra!

Both earn $50,000 but Donna decidesto save $125 more

a month.

The example mentioned above is hypothetical, for illustrative purposes only and not intended to project the performance of any specific investment.Actual rates of return will vary over time. Dollar cost averaging/Systematic Investment plan does not ensure a profit nor guarantee against loss. Investors should consider their financial ability to continue their purchases through periods of low price levels.

©2007 ING North America Insurance Corporation14

How should I invest now so I can maintain my lifestyle later?

“I know I’m losing time.

But I’m afraid to lose

any more money.”

©2007 ING North America Insurance Corporation15

Balance your desire for growth with your stomach for risk.

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

Important Information: The model portfolios shown are the product of a Modern Portfolio Theory risk and reward model. The model seeks to correlate specified levels of risk to investment allocation combinations that produce the highest potential returns consistent with an individual's tolerance for risk. In other words, the model seeks to identify portfolio mixes of asset classes along the "Efficient Frontier" between risk and potential reward. The "Efficient Frontier" is a graph representing possible sets of asset class mixes that maximize expected returns at each level of portfolio risk. There is no one universally accepted standard to determining the exact asset class allocations that will sit on the "Efficient Frontier." Other mathematical models may vary in how they assess and correlate risk and return factors and, consequently, may produce different allocations than those shown here.

©2007 ING North America Insurance Corporation16

Balance your desire for growth with your stomach for risk.

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.

©2007 ING North America Insurance Corporation17

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

This chart is for illustrative purposes only. Performance shown is index performance of the S&P 500®, and not illustrative of any particular investments. Source: Commodity Systems, Inc.; via yahoo.com; Bloomberg, 2007. 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.

Growth of $10,000 for the 10-year period from 12/31/96-12/29/06

4.8%

Always invested

Missed 5 best days

Missed 10 best days

Missed 15 best days

Missed 20 best days

$25,000

$20,000

$15,000

$10,000

$5,000

Loss

Gain

5.67%

$17,352

$13,980

3.41%

1.44%

$11,536$9,629

-.38%

$22,440

8.42%

©2007 ING North America Insurance Corporation18

See how earning even a little more adds up over time.

• Averages 6% returns per year

• Increases her account by $95,856

• Averages 8% returns per year

• Increases her account by $112,869 over $17,000 more than Eileen

Both earn $50,000 and defer 8% over

15 years

The example mentioned above is hypothetical, for illustrative purposes only and not intended to project the performance of any specific investment.Actual rates of return will vary over time. Dollar cost averaging/Systematic Investment plan does not ensure a profit nor guarantee against loss. Investors should consider their financial ability to continue their purchases through periods of low price levels.

©2007 ING North America Insurance Corporation19

“I’ve been so focused

on saving. I never gave

much thought to how I

would withdraw those

savings when I retire.

How should I spend later so I won’t risk outliving my assets?

©2007 ING North America Insurance Corporation20

Organize your resources intodifferent categories.

• Create an emergency fund that could cover up to 6 months’ expenses.

• Separate remaining assets into three categories:

- Short-term money to help cover the necessities.

- Mid-term money to help cover the niceties.

- Long-term money that might grow and help replenish the other categories.

©2007 ING North America Insurance Corporation21

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

“The Necessities”

©2007 ING North America Insurance Corporation22

Not enough to cover monthly necessities?

Turn a portion of your savings into a stream of regular income checks that can be used for essential expenses.

TheNecessities

Long-TermAssets

©2007 ING North America Insurance Corporation23

Once fixed expenses are covered, fund discretionary expenses.

What goes in:

• Retirement plans

• Interest/dividends

• IRAs

• Home equity

• Employment income

• Bank savings/CDs

What it covers:

Money needed to help replenish essentials and pay for:

• Travel

• Entertainment

• House/car repairs

• Education

“The Niceties”

Bank certificates of deposit are FDIC insured up to applicable limits and offer a fixed rate of return. Variable annuity returns/mutual fund yields and principal will fluctuate with market conditions.

©2007 ING North America Insurance Corporation24

Stash some cash away for the long term.

What goes in:

• Long-term stock investments

• Long-term bond investments

• Any other type of financial investment

What it covers:

Money needed to helpreplenish the resources for your niceties and toprovide for:

• Potential long-term growth

• Additional income to compensate for inflation hedge and longevity protection

Long-Term Growth

©2007 ING North America Insurance Corporation25

Shift your resources as necessary.

Monthly shortfall:

• Monthly expenses of $2,500

• Monthly income of $1,500

This hypothetical illustration assumes a lump sum purchase of an immediate annuity using a fixed investment option; your income payout amount is based on a single lifetime payout using the current unisex life expectancy tables. A single lifetime annuity payout will provide you with an income that begins on your retirement date and continues for as long as you live.

Possiblesolution:

May need to convert

$170,000 of hersavings nest egg to

generate $1,000 more regular incomeeach month for the restof her life.*

©2007 ING North America Insurance Corporation26

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.

©2007 ING North America Insurance Corporation27

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.

©2007 ING North America Insurance Corporation28

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

©2007 ING North America Insurance Corporation29

Don’t wait any longer to move forward!

©2007 ING North America Insurance Corporation30

How can we help you get started?

Read on the topic.

See your benefits manager.

Check the Internet.

Ask for our Create the Vision CD-ROM.

Consult a financial professional.