Creating Your Plan For Living

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08/16/12

2012 Genworth Financial, Inc. All rights reserved.

What Is A Plan For Living?

A Well-Designed Retirement Income Plan to Help Ensure You Have - and Maintain the Retirement Lifestyle You Envision.

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Agenda
Benefits of Creating a Retirement Income Plan Risks to a Retirement Income Plan Things to Consider When Creating a Retirement Income Strategy How to Create a Plan For Living

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Benefits of Creating a Retirement Income Plan Help Ensure the Lifestyle You Want Protection Against Retirement Risks Understand Your Expenses and Income Sources
Time invested now can pay dividends in the future
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Risks to a Retirement Income Plan

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Risks to a Retirement Plan

Running Out of Money Unknown Health Related Costs

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Market Volatility Life Expectancy

Out of Pocket Expenses Long Term CareHigh Cost if Needed

Risk: Running Out of Money

Questions to Ask:
Will my current mix of portfolio assets provide growth as well as enough cash flow? Is my current retirement income plan designed to help keep up with inflation? Are there things I can do to ensure I have guaranteed income, even when the market is down? Is my income plan flexible enough if I retire sooner or later than expected?
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Impact of Market Volatility

During the last decade, the stock and bond markets have experienced substantial volatility. For those relying on market performance, timing and luck could play a large role in whether their retirement portfolio lasts a lifetime.

Standard & Poors 02/27/2012. Annual returns including dividends. Past performance is not indicative of future results.

Design a retirement income plan that can withstand the markets volatility
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Living Longer: Facts and Stats

chance that at least one member of a healthy 65 year old couple will live to age 90

67%

chance that a healthy 65 year old male has of living to age 86

50%

chance that a healthy 65 year old female has of living to age 82

Sources: Genworth Financial companies research on healthy individuals, assuming 80% of A2000 Basic ANB mortality

75%

Income sources guaranteed for life can help ensure your money lasts for your lifetime
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Risk: Unknown Health Related Costs

When planning your retirement income strategy be sure to consider protection for traditional healthcare as well as long term care. An unexpected healthcare event or long term care need can have a dramatic impact on retirement savings if you have to pay for those expenses out of pocket.

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Long Term Care-Frequently Asked Questions

Q. What is the likelihood that I will need long term care? A. Research shows that about 70% of people age 65 or older will need long term care services at some point in their lifetime.1 Q. Does Long Term Care Insurance (LTCI) only pay for nursing home care? A. No. Long Term Care Insurance can help you stay in your own home. More than 70% of LTCI claims are paid for Home Care Services.2 Q. Will Medicare and typical health plans cover long term care? A. Typical health insurance plans do not cover these expenses and Medicare is not designed to adequately pay for long term care.
1. Medicare & You 2012, National Medicare Handbook, Centers for Medicare & Medicare Services, Revised 12/20/2011. 2. Genworth, Long Term Claims Experience Data, December 1974 through December 2011.

Everyone should have a written long term care plan

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2012 Cost of Long Term Care

Genworths 2012 Cost of Care Survey, conducted by CareScout, April 2012, assumes 44 hours per week

The cost of care can vary depending on type of care and location. Visit Genworth.com/CostofCare for More Information
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Things to Consider When Creating a Retirement Income Strategy

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Things to Consider
Social Security Portfolio Withdrawal Rate Delay Retirement Work Part-time
Pays for a portion of essential expenses The age at which benefits begin greatly impacts the amount received

Understand the limitations of a 4% withdrawal strategy Extra years of earning can improve sustainability of lifestyle

Convert Assets into Ensure consistent monthly income for life to cover at least essential expenses Guaranteed Income Inflation
May seem minimal year to year, but its cumulative impact over a 20-30 year retirement can be significant
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How to Create Your Plan For Living

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Start Planning
Important Document Checklist
Recent bank and credit card statements Pension Information (if applicable) Most recent Social Security benefits summary Current financial portfolio information (stocks, bonds, annuities, mutual funds, insurance, etc.) Summaries of other assets, such as real estate and business valuation Gathering and organizing important documents is a critical step in the planning process
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What Are Your Expenses?

Outline your retirement expenses in two categories:

Essential Expenses
Housing & Utilities Food Clothing Transportation Insurance Medical Expenses

Discretionary Expenses
Travel Dining out Entertainment Charitable giving Cultural events Sporting activities

Your current expenses can help create a realistic plan for the future
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What are Your Income Sources?

Outline your income sources into two categories:

Guaranteed Income
Social Security Pension Income Annuities

Expected Income
Portfolio Withdrawals Wages Rental Income Asset Sales (Downsize of home)

Using your current expenses can help create a realistic plan for the future
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Take Action
Step 1: Gather important documents Step 2: Complete the Plan For Living Workbook outlining your expenses and income sources. Step 3: Work with a Financial Professional to ensure your needs are covered and your questions are answered.

When will you create your plan?

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In Conclusion
Retirement can present challenges:
Decreased assets due to market volatility Living longer, requiring more money for retirement Rising health and long term care costs

You have the power to manage these challenges:

Create a written plan Identify where your financial security can be improved Thank you for your time and attention
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Disclaimers
All guarantees are based on the claims paying ability of the issuing company. Long term care insurance is underwritten by Genworth Life Insurance Company and in New York, by Genworth Life Insurance Company of New York. Annuities are issued by: Genworth Life Insurance Company, Genworth Life and Annuity Insurance Company, Richmond, VA, and in New York, by Genworth Life Insurance Company of New York, 666 Third Avenue, 9th Floor, New York, NY 10017. Only Genworth Life of New York is licensed to conduct business in New York. The discussion of tax treatments in this presentation are the Genworth Financial companies' interpretation of current tax law and is not intended as tax advise. You should consult your tax professional regarding your specific situation. Genworth, Genworth Financial and the Genworth logo are registered service marks of Genworth Financial, Inc.

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