Welcome to Our Workshop!

John AgentPresident

Agent Financial Group, Inc.1111 Somewhere St.

Suite 200Anywhere, ST 00000Phone: 000-000-0000

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Disclaimer: This information is not intended to give tax, legal, or investment advice. Please seek advice from a qualified professional on these matters. Past performance is no guarantee future results. Crediting rates including caps for FIA’s can change and are determined by the insurance companies at the time of issue, Annuity Contracts are products of the insurance industry and are not guaranteed by any bank or insured by the FDIC. When purchasing a fixed indexed annuity, you own an annuity contract backed by the insurance company, you are not purchasing shares of stocks or indexes. Product features such as interest rates, caps, and participation rates may vary by product and state and may be subject to change. Surrender charges may apply for early withdrawals. Be sure to review the specific product disclosure for more details. Guarantees are based on the financial strength and claims paying ability of the insurance company. Lifetime income benefit riders are used to calculate lifetime payments only. The income account value is not available for cash surrender or in a death benefit. Excess withdrawals may reduce lifetime income and may incur surrender charges. Fees may apply. Guarantees based on the financial strength and claims paying ability of the insurance company. See specific product disclosure for more details.

Copyright © 2015 David P. Vick. All rights reserved.

This material was written and prepared by David P. Vick.Copyright by David P. Vick. All rights reserved. No part of this publication may be copied or distributed, transmitted, transcribed, stored in retrieval system, transferred in any form or by any means - electronic, mechanical, magnetic, manual, or otherwise - or disclosed to third parties without the express written permission of David P. Vick. Vick & Associates, Inc., 8700 E. Vista Bonita Drive, Scottsdale, AZ, U.S.A.The information contained in this workbook is not written or intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek advice from you own tax or legal counsel. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security or product.David P. Vick assumes no responsibility for statements made in this publication including, but not limited to, typographical errors or omissions, or statements regarding legal, tax, securities, and financial matters. Qualified legal, tax, securities, and financial advisors should always be consulted before acting on any information concerning these fields.Vick & Associates, Inc., - Toll-free Phone: 888-460-1115

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Challenge #1: ______________________________The GAO (US Government Accountability Office) in their April 2010 report titled, “Challenges for Ensuring Income throughout Retirement,” says that the average healthy 62 year old couple has a 47 percent chance for one of the two to live past their 90th birthday.

According to the Society of Actuaries Annuity 2000 tables the average healthy 62 year old couple has a ___percent chance for one of the two to live to see their 92nd birthday.

According to the Social Security 2010 tables the average healthy 62 year old couple has a ___percent chance for one of the two to live to see their 92nd birthday.

In other words, a 62 year old couple has somewhere between a 27% to 51% chance of living three decades in retirement, depending of course on your health and which study you read. That means:

You’ll have to fund life in retirement for ___________decades. Even more, you’ll want to fund “__________________” of life for those

decades. (1)

1. http://www.soa.org/Research/Software-Tools/research-simple-life-calculator.aspx

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Challenge #2: ______________________________

Why does it matter?When planning for retirement you have to consider the possibilities of providing income for expenses for 30 to 40 years. The graphs below show what would happen if the 30 year _____% average inflation rate and 40 year _____% average inflation rate was used when purchasing a $25,000 item such as a car.(1)

Inflation Rate

2.9% 10 Years 20 Years 30 Years 40 Years

$25,000 $33,273 $44,284 $58,939 $78,443

CNN Money, an online publication, reported on April 9th, 2013 that nursing home costs had risen to $80,000 a year. (2). Imagine the inflation on a projected nursing home stay in 30 to 40 years.

Inflation Rate

2.9% 10 Years 20 Years 30 Years 40 Years

$80,000 $106,474

$141,709 $188,604

$251,018

Here are some more important facts to consider when planning for inflation: Inflation can erode a portfolio’s _________________ power at an average

inflation of 3% to 4% per year. The value of a portfolio is cut in half every 23 years at a 3% inflation rate. Increasing your cash flow by the rate of inflation is necessary for an

effective retirement income plan. In the end, inflation is the ____________________ penalty!

1. “Consumer Price Index History Table” Bureau of Labor Statistics, 7/16/13,www.bls.gov/cpi

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2. “Nursing Home Costs Top $80,000 a Year” by Blake Ellis, CNN Money, April 9, 2013

Challenge #3: ______________________________

Paradigm Shifts in the Market You have to wonder by now, what has caused all the volatility in the markets over the last 30 years. It seems that we were riding the heights of the 1990’s when the dot.com bubble burst. We were riding the Bull again until the housing bubble turned 2008 into a disaster with a 38% drop in the broad markets. According to YahooFinance.com, from the bottom of the market in March of 2009 to the half way through 2013, the S&P 500 rose from 676 to 1606, a 138% increase. What could possibly be next on this roller coaster 21st Century-market-ride and why is

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the volatility so steep?

Challenge #4: ______________________________

By the Numbers*___% Highest historical tax rate, 1944-194580% Highest top marginal tax rate from 1940 – 1963, except for years 1944-4570% Highest top marginal tax rate from 1970 – 1980 59% Historical average of the top marginal tax rates15% & 28% The only two marginal tax brackets from 1988 – 1990

Will you pay more or less taxes in retirement?The typical answer is yes, but a little historical perspective here would be helpful.We currently live in a time with historically low tax rates. From 1913 to 2015, we’ve seen the highest marginal rates rise from 7% to 94% with the average being 59% (1).

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1. “U.S. Federal Individual Income Tax Rates History, 1862-2013 Nominal and Inflation-Adjusted Brackets” Tax Foundation Website, http://taxfoundation.org/article/us-federal-individual-income-tax-rates-history-1913-2013-nominal-and-inflation-adjusted-brackets.

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2. “Historical Highest Marginal Tax Rate 1913-2011” The Big Picture, Barry Ritholtz, July 9th 2011. http://www.ritholtz.com/blog/2011/07/tax-rates-deviations-from-average/http://www.usdebtclock.org/

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However many challenges there are in retirement, they seem to boil down to two main issues:

Time & MoneyIt comes down to funding the quality of life you want in retirement.

What does your retirement dream include? _________________

How will you fund it? ___________________________________

How long will you have to fund it?_________________________

Do you know when you’ll run out of money?________________

How do you manage risk over time?_______________________

What if a large bear market happens during your retirement?

Average length of long bears(1): ___________________

Average number of down years in a market(1): __________________

Most recent example: _________________________

If 70% of the market years are up, then retirement should be a slam dunk, right? Let’s take a look at the concept called “sequence of returns.”

1. Russell Napier. The Anatomy of a Bear. Great Britain: Harriman House, Ltd., 2009

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Sequence of Returns

Note: Illustrations are hypothetical and the information provided in these materials is for illustrative purposes only. The projections used, including inflation rates and investment rates of return, are estimates only and in no way guarantee future performance. The assumptions and calculations are estimates and are meant to serve solely as a guideline. If any assumptions used in these materials are not realized, then the calculations will be inaccurate. There is no express or implied guaranty or warranty that any result shown will be achieved.

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How to Win!

Two Retirement Maxims:

1. _____________ what you have2. Stay ahead of ______________

ABC Planning Model

The ABC Planning Model helps you decide your liquidity, protection and risk needs.

A B CLow Interest

TaxableCash

Bank AccountsCDs

Savings Accounts

Moderate InterestTax-Deferred

Moderately Liquid3 Green Money Rules

Potentially Higher ReturnsTaxableLiquid

401k/IRAStock/Bond Type Risk

% % %Naturally, most people want a perfect investment: an asset that has double digit gains, always liquid and always protected. Since there isn’t such an asset, obviously people have to prioritize what they want in their portfolio. Typically, the ABC Planning Model will help you prioritize your assets. In prioritizing you have to give up something in order to gain something. See the chart below:

A B CPriority Liquidity Protection GainsGive Up

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Column B Assets

Green money assets must obey 3 Green Money Rules

1. Protect your _________________2. Protect your _________________3. Protect your _________________

Where do FIAs fit in a portfolio of assets?

Between _________________ and the ______________ of the ______________.

Two ways to stay ahead of inflation.

1. Use a guaranteed income _______________ with inflation protection.2. Use a guaranteed income and ___________________ with growth assets.

Column B - Fixed Indexed Annuities (FIA)

What is a Fixed Indexed Annuity?

A FIA is a type of deferred annuity in which your returns are based on a specified _____________________ index ( i.e. S&P 500). Your principal is _________________ and you gain interest based on the link to the equity-based index, giving you a part of the gain if the index goes up by way of interest credited to your account. If the index goes down for the year, you receive nothing in your account, however your ____________ and previous year’s _________________ are ___________________.

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Index Annuity: True or False?1. ___ FIAs are too complicated2. ___ Agents receive high commissions3. ___ FIAs are illiquid4. ___ When I die the insurance company keeps what’s left5. ___ FIAs are long term assets6. ___ FIA returns don’t keep up with the market

Annuity Choices:1. Company 2. Length of term3. Crediting methods4. GWB -Guarantees vs. performance5. Bonuses6. Add’l riders (i.e. Nursing home waiver, Terminal illness waiver, etc.)

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Which would you choose?Company: American, high rating, largest in the world

Years: 6 8 10 16

Interest crediting: ___Annual Point to Point

Year 1What did the index do between annual anniversary points? Cap the year.

___Monthly Point to Point

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12What did the index do each month? Cap each month and total at year’s end.

___Uncapped Strategy

Year 1What did the index do between annual anniversary points? Subtract the spread (i.e. 3%)

___Monthly Average

Year 1Add each month’s gain for the 12 month contract period and divide by 12. Apply a cap or

participation rate.___Fixed Rate

Year 1Apply a fixed/declared rate for the entire year.

GWB: ___A) Guaranteed with lower payout or

___B) Performance-based with higher payouts

Bonus: ___A) high bonus, lower annual returns or

___B) no bonus, higher annual returns

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ABC Your Assets

A B CLow Interest

TaxableCash

Bank AccountsCDs

Savings Accounts

Moderate InterestTax-Deferred

Moderately Liquid3 Green Money Rules

Potentially Higher ReturnsTaxableLiquid

401k/IRAStock/Bond Type Risk

% % %Everyone has either:

A. Pebble in your shoe

Everyone has an asset in their portfolio that irritates them, but they don’t do anything to fix it, usually until it’s too late.

B. Retirement confusion

Do you know how all your assets & entitlement programs fit together to fund your quality of life in retirement?

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So, now what can you do?Name: _______________________________ Phone: _________________Address: _____________________________________________________City: ______________________ ST: _____ Zip: _______________________E-Mail Address: ________________________________________________

Option #1: Please schedule my complimentary 60 minute strategy session. I understand I am under no obligation to purchase anything or pay any fees for the review.

1. Who’s in control of your money? ___YOU ___ US

2. Do you want to talk about income planning? ___YES ___ NO

3. What are your ABCs? ____A ____B ____C

4. Meet at: ___ our offices ____ your home

5. Best time: ____Morning ___ Afternoon ___Evening

6. I want to discuss:

____Pebble in the Shoe *Bring in any assets you want to review or think might be a “pebble in your shoe.”___ Retirement Confusion*For “retirement confusion” remedy, bring in all of your investment statements, last year’s tax returns, and budget concerns.

Option #2: Please put me on your communications list to receive emails/mailings to inform me of future events and ABC Updates. I understand and agree that I am giving permission to Vick & Associates, Inc. to provide me with their complimentary ABC Emails regarding indexed annuities and other conservative assets I may or may not wish to use. I can opt out at any time and am under no obligation whatsoever. My information will not be shared with any outside firm. Agreed to by: __________________________________________

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