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©American Tax & Annuity Advisors 2014©

PRESENTED BY:

Annuities

WHO WE AREWe are the top tax & annuity

experts with over 100 years of combined experience and 400

representatives nationwide.

3

If you need income an annuity is a good idea.

If you don’t need income you don’t need an annuity.

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There is one purpose of an annuity..

INCOME

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WE WANT YOU TO HIRE US

• Recognized as one of the leading experts on annuities and tax-free wealth transfer strategies.

• Graduated with a B.A. degree in Economics from Kalamazoo College and a law degree from Stetson University College of Law.

• Phil has lectured and taught thousands of agents and brokers powerful strategies to help their clients.

• Founder of Snowflakes dog rescue.

Author of Outlasting The Storm, A Guide To Annuities and Safe

Retirement Strategies.

Phil Wasserman, JD

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Kenneth Rossman, CPA

•Graduated from Florida State University with degrees in accounting, finance, and political science.

•Became a Certified Public Accountant in 1983.•Kenneth was the Senior Tax Specialist at Coopers

and Lybrand CPA’s.•Currently, Kenneth is the Tax and Income

Manager at American Tax & Annuity Advisors.• Kenneth has been successful in IRS litigation

cases for various high profile clientele.

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There are over one million people licensed to sell

annuities nationwide. Unfortunately, most of these well-

intentioned people are ill-prepared and poorly trained to sell a

product that can be a powerful retirement income planning tool. I

once did a training seminar for about one hundred agents in

Atlanta, Georgia. I asked how many of the agents represented a

well-known company and about ninety percent raised their hands.

I then offered $100 to the first agent who could explain how that

company’s most popular product worked – one with a two-tier

strategy (explained later in the book) – to the rest of the group.

Not a single agent came forward. So when several class action

suits were filed against that company, I wasn’t surprised.

Introduction

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Annuity Basics

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Why an a Annuity?Some OfferGuaranteed

Lifetime Income

Some OfferNo Risk Growth!

Some OfferNo Fees!

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Four types of Annuities

Fixed

Immediate(also Known as a SPIA)

Index(also known as equity index, or EIA)

Variable12

• Acontract between you and an insurance company

• Four types: Variable, Fixed, Immediate, and Index

• Purchased through:

– A one-time, lump-sum payment, or

– Aseries of on-going payments over time

• Can provide regular, periodic payments for income

• Amount invested depends on:

– Short and long-term financial goals

– Composition of current portfolio

– Tax situation

• Investment grows tax-deferred

• No limits on the amount you can invest

• Avoids probate

• Creditor proof

What is an Annuity?

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Accelerated Benefits

Today it is common for annuities to allow for accelerated benefits to pay for:

• Terminal illness• Long term nursing care and home• Critical illness (such as cancer, stroke or

heart attack)

These powerful benefits are usually included at no cost, although not all annuities have them.

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Annuity - A guaranteed investment contract with

company

Owner - The owner of annuity contract (can be a

or a third party)

Beneficiary - To whom the money goes upon the

be the owner)

an insurance

trust or the annuitant

annuitant’s death (can

Annuitant - Person on whom the annuity is based (does not have to

owner).All annuities have annuitants (some annuities allow joint

annuitants)

be

Annuity Terms

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“Annuities are not good for IRA’s or other qualified plans”

- Not true! Fixed, immediate, and index annuities may be very

good in IRA’s.

“All annuities have fees”

- Not true! Fixed and immediate annuities have no fees. Many

index annuities have no fees.

“Annuities are not meant for seniors”

- Not true! Annuities are specifically designed for seniors and

retirees.

“I cant get my money out of my annuity”

- Annuities today can be very liquid.

Common myths about Annuities

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• An Annuity can protect you against:

- Outliving your savings

- Risking your principal

- Inflation

- Taxes

• Bonus - Many annuities offer up-front bonuses that add even more

to your savings

• Annuities can offer:

- Benefits to ensure optimum quality of life

- Greater benefits than other investment options

- Secure savings for the rest of your life

Features

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Is An Annuity Right For Me?

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• Seeking

- Guaranteed, steady income for the rest of your life

- Principle protection

- Inflation protection

• Older, conservative investors

- Various investment options to match investment and risk tolerance

levels

• Concerned about outliving your money

- Protection against outliving your assets

- Benefits to your heirs

• Seeing investment returns being diminished by volatility and fees

- Ability to save money on a tax efficient basis

Annuities are a wise investment if you are:

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type of annuity is it?

is the length?

are the surrender penalties?

1.

2.

3.

4.

5.

6.

7.

8.

What

What

What

Are there any riders?

What are the specific fees?

If it is a

If it is a

What is

variable, who is responsible

fixed annuity, is the interest

the company rated?

for managing it?

rate adjustable?

What to ask if purchasing an annuity

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State Guaranteed Funds

Most states have guarantee funds to help pay the claims of an

insurance company unable to meets its obligations. Most states also

restrict agents and companies from advertising the fund’s availability.

These funds operate similar to an FDIC-like protection for

annuities, life insurance, long-term care, and health insurance. The

purpose of these funds is to protect the consumer and instill trust in

the products.

I am highly critical of states that do not allow agents to

discuss this protection. Fixed annuities, including SPIAA’s and Index,

are among the safest products available.

Certain states (like Florida) are changing their laws to allow

agents to discuss the existence of guaranteed funds with consumers

who inquire.

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The Wharton Report

Professors David F. Babbel and Craig B. Merrill of The Wharton

Financial Institutions Center are leading academics in the area of

retirement income planning. In their paper, “Investing your Lump Sum

at Retirement,” they state that: “…forces are combining to make

planning for outliving your resources more important than it has been

in the past. Old rules of thumb for spending your assets in retirement,

called decumulation, need to be reconsidered.” When taking into

account all the challenges that retirees face today in planning for a long

and happy retirement – longevity risk, health care costs, inflation and

taxes – just to name a few, the need for guaranteed income streams

becomes apparent.

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The Wharton Report

Babbel and Merrill conclude in their paper:

“When individuals consider the list of positive attributes associated with life annuities,

i.e., guaranteed payments you cannot outlive, low cost, access to invested capital, and

reasonably priced features such as inflation adjustment and legacy benefits, the argument for

this income solution in retirement is compelling. By covering at least basic expenses with

lifetime income annuities, retirees are able to focus on discretionary funds as a source for

enjoyment. Locking in basic expenses also means that the retiree’s discretionary funds can

remain invested in equities for a longer period of time, bringing the benefits of historically

higher returns that can stretch the useful life of those funds even further. Income annuities may

also be a vehicle that enables retirees to delay taking Social Security benefits until they are

fully vested, bringing substantially higher payments at that point. The key in all of this is to

begin by covering all of the basic living expenses with lifetime income annuities. Then, to

provide for additional desirable consumption levels, you will want to annuitize a goodly

portion of the remainder of your assets, while making provisions for extra emergency expenses

and, if desired, a bequest. These last two items can be accomplished through combinations of

insurance and savings.

When this is undertaken, you can enjoy your retirement without the burden of financial worries

and focus on more productive uses of your time and attention!”(2)

2. Babbel, David F., and Craig B. Merril. “Investing Your Lump Sum at Retirement.” Wharton Financial Institutions Center,

August 2007. 25

UseAnnuities to Cover the Basics

In other words, if you cover your basic expenses with money received

from guaranteed streams of income, them you would have the freedom

to use the rest of your money as you wish. You would no longer have to

worry about outliving your money in retirement. You would be able to

enjoy your discretionary funds at the time in your retirement when you

still can. You would also avoid fluctuations in the stock market or in

any other place where your money is invested because you would be

able to move those investments when it is most advantageous for you to

do so, rather than based on necessity. This would allow you to

maximize the use of your resources and do what you want with the rest

of your money.

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So How Do I Know If An Annuity Is Right For Me?

So how do you know if an income annuity is right for you?Are you

retired or nearing retirement? Do you currently have a retirement

income plan in place? Do you have guaranteed income streams or are

you working with defined contribution plans (401(k), IRA, etc…)? If

you do not currently have guaranteed income streams to cover your

basic expenses throughout your retirement, you need to look at the

possibility of getting an income annuity or a series of income annuities

to provide for you in retirement or you will continue to run the risk of

outliving your financial assets.

In these uncertain times, when events outside of our control can change

our world, financially intelligent people want guaranteed income

streams so that they can respond to whatever life throws at them.

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Annuity Strategies

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• Similar to a certificate of deposit

• Income tax is deferred until you access your cash

You earn:

– Interest on your principal

– Interest on your interest (compounding)

– Interest on the money would have used to pay taxes

Guarantees:

– Return of your principal

– Return on your principal

Tax-deferred Fixed Annuity

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• Defers tax liability until cash is withdrawn

• Lifetime income

• Guaranteed principal

• Guaranteed interest

• Avoids high costs and delays of probate

Some fixed annuities have adjustable interest rates. Make

know if your rate is fixed or adjustable.

sure you

Tax-deferred Fixed Annuity

Warning:

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• Product that most people think of when they think of an annuity, purchased

by a premium payment to an insurance company

• Designed to enhance cash flow

• Monthly payments can begin immediately

• Payments can last for a fixed term or for your lifetime

• Payment amounts depend upon:

- Life Expectancy,Age, and Health

- Amount Invested

- Interest Rates

Immediate Annuity (also known as a SPIA)

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Is an ImmediateAnnuity Right forYou?

An immediate annuity may be appropriate if you are:

• Aretiree needing increased monthly cash-flow

• Aperson who has no heirs or is not concerned about leaving an estate

• Someone who has set aside other funds to leave to their heirs

• Someone who needs to shelter assets and qualify for Medicaid

• Aretiree wanting to avoid the hassles of investing on one’s own

Positives of a SPIA1. Actuarially based, so the older you are and if in poor health the more the

annuity will pay out.

2. Tax advantages outside of an IRA on qualified money because payments

are partially treated as a return of capital (annuity exclusion ratio).

3. Can guarantee an income for life.

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Negatives of a SPIA

1. Payments are set and may not increase for inflation (with some exemption).

2. When annuitant dies, the payments stop (except for period certain) and the money belongs to the insurance company.

3. SPIA’s aren’t liquid – once completed they are permanent and the money paid cant be accrued

Period certain SPIAOne of the biggest drawbacks for people considering purchasing a

lifetime SPIA is that once the purchase is made the money belongs to the insurance company. Payments will be made to the annuitant for life. But what if the annuitant dies suddenly? Then all of that money is gone. The answer is period certain, which would guarantee the payments to the heir for a certain period of time even if the annuitant does immediately.

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John is a 70-year old male. He purchases a SPIAA for 100,000

from a well-known insurance company. His lifetime payments are 10,000 a

year forever. But if he dies soon after, that money is lost to the insurance

company.

So John purchases an option known as a period certain, which can be

any period he chooses (5-10-20 years). If he dies before that period, payments

will be made to his heirs for the remainder of the period certain. However,

when a period certain is chosen, payments are reduced depending on the

length of the period certain. The longer the length, the higher the reduction.

Example:

John chooses a 10-year period certain. His payments are reduced

from the previous example to 9,500 a year. He dies at the four year

anniversary. Payments will continue to his heirs for another 6 years.

Example

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What is a variable annuity? It is an investment product that

places the risk is on the consumer, unlike other annuities that place

the risk only on the company.

A variable annuity is a group of mutual funds surrounded by an

annuity. The annuity provides the tax deferral. Many in the past

criticized VA’s for outrageously high fees and few benefits for the

consumer. This was true but times have changed.

Currently, VA’s have strong benefits in return for fees thatare high, serve to help offset market risk.but

Variable Annuities

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Fees - Most VA’s have fees of 2-4% when the mutual fund and ride

fees are factored in.

Riders - Today, some VA’s offer riders that may protect the initial

principal and/or provide lifetime income even if the market falls.

Who are VA’s good for? People who only want to be in the market

need to limit their risk.

Positives of Variable Annuities

• Can choose from options of mutual funds

but

• Riders can protect initial investment for death benefit and/or income

Aspects of Variable Annuities

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• Fees are high for the insurance of market risk

• The death benefit is taxed as ordinary income, not tax-free like

regular life insurance (this is important because many agents

emphasize the death benefit)

• Access to money may be limited in a down market due to market

losses.

Negatives of Variable Annuities

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How the New Hybrid Index

Annuities Work

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• A type of fixed annuity that offers the potential to capture some of

the gains in the stock market without the risk of loss.

• Returns are determined by the performance of an index such as the

S&P 500.

– Also known as Equity IndexAnnuities (EIA)

– Other indices can be selected, e.g. DJIA, NASDAQ, Russell 2000

• Investors’ returns are usually calculated as a percentage of the index

performance.

What is an Index Annuity?

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An index annuity was designed to be a fixed annuity, one in

which the principal was safe, with an interest rate determined by

tracking a stock market index.

Originally, the idea was to receive some of the market gain with

no risk to the principal. Companies often compared it to going to a

casino with $10,000 and getting to keep the $10,000 no matter how you

played. Even if you lost, you would get to keep your $10,000. But if

you managed to win, you would get to keep a chunk of your winnings

but have to give up some of the gain.

What is an Index Annuity?

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The insurance company invests the annuity premium in bonds. Theprincipal remains secure because it is not attached to the market.

interest rate that the bonds throw off is used for the following:

The

1

2

3

4

- Any interest guarantee

-

-

-

Commission to the agent

The purchase of options to provide market upside

The insurance company profit

A rarely noticed observation: It is obvious that when a higher

commission is paid to the agent or a bigger upfront bonus given to the

client, there is less money remaining to purchase options. The more

money left from the interest to purchase options, the higher the

potential gain for the client.

How they Work

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• Surrender periods are usually 7 – 15 years.

- Bonuses as high as 10% of the initial investment are often offered for

longer surrender periods

• Investors give up some of the upside in return for a no-loss

guarantee.

- Most have a maximum interest rate (cap) and a floor

• Provide traditional annuity benefits.

- Tax-deferred growth

- Permit early withdrawal without penalty under certain adverse medical

conditions

Index Annuity Features

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The higher and longer surrenders are usually determined

by one of two things: (1) the upfront bonus to the client or

(2) high commissions to the agent.

Annuities with large upfront bonuses require a longer holding period

so the company‘s can recoup its money. A higher bonus for the client

creates higher surrender fees and a longer surrender period.

Surrender Periods

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Factors that can influence performance:

• Participation Rate (Percentage of Profit)

- The percentage of the annual gain in the index that is credited to the account

value

- May or may not be guaranteed (so it can change)

• AnnualAsset Fee

- A flat percentage deduction from the index growth

- Sometimes called “yield spread” or “margin cost”

- Most index annuities have no asset fee (but some do)

• Cap

- The maximum percent of the gain in the index to be credited to the account

- Some Equity Index Annuities have no cap

Performance of Equity Index Annuities

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It is important to get an annuity that resets annually. Statistics show

that an annuity that locks in the annual profit, called ratcheting, will

outperform an annuity that takes two years or more to lock in the profit.

This is the case even if the benefits appear higher in an annuity

that locks in the profits over a 2 year period or longer.

A cap is the top end percentage an annuity crediting method

can earn (its ceiling).

A spread is a fee.

Crediting Methods – Caps and Spreads

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Different Crediting Methods

Why are most annuities dependant on the S&P 500? This is simply because the

S&P 500 is less volatile and the options cost less.

From our experience the two most successful crediting methods are:

1 - The S&P 500 point-to-point with a cap that is usually 7 or 8%. This crediting

method resets annually and thus compounds. However, it will miss a big year because

of the cap.

EVEN WHATAPPEARS TO BE A SMALL CAP, 7 OR 8%, CAN BE

VERY EFFECTIVE DUE TO COMPOUNDING.

2 - In a big year, the most profitable crediting method appears to be the S&P monthly

point-to-point. This strategy has a monthly cap. In a year when the market goes steadily

up, it has provided amazing gains to be locked in at year’s end. The negative side of

this strategy is that in a volatile market, a bad month or two can wipe out all of the

gains

THE TWO ABOVE USUALLY HAVE NO FEES OR SPREADS.

Today there are NASDAQ, Dow, and even global crediting strategies. Most have caps.

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The new hybrid annuities with guaranteed income riders create

guaranteed income streams that you can turn on as you need, while

your lump sum continues to earn interest based on a crediting strategy

of your choice, without the fear of loss. These annuities have become

increasingly popular as people look for ways to generate guaranteed

streams of income without losing control of their lump sum. Your

initial principle increases with guaranteed annual interest and payouts

also increase with age. This gives retirees the guaranteed income

streams that they need to ensure themselves of always having the

money they need to continue enjoying their retirement.

The New Hybrid Annuities

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The fact that these income streams can be turned on and off gives

people control of their retirement income and, therefore, their lives. The

owners of these annuities have guaranteed income waiting to be used

when they need it. This income is available to them when unforeseen

circumstances create a need for it.

What follows is an example of the income available from one of these

new hybrid annuities for a 70 year old person who places $100,000 in

the annuity.

The New Hybrid Annuities

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End of

Year

AttainedAge Accumulation Period

Withdrawal Payment Base

Guaranteed

Withdrawal

Percentage

GuaranteedAnnual

Withdrawal

Payment

Issue 70 $110,000 n/a n/a

1 71 $115,500 6.10% $7,045.50

2 72 $121,275 6.20% $7,519.05

3 73 $127,339 6.30% $8,022.34

4 74 $133,706 6.40% $8,557.16

5 75 $140,391 6.50% $9,125.41

6 76 $147,411 6.60% $9,729.09

7 77 $154,781 6.70% $10,370.33

8 78 $162,520 6.80% $11,051.37

9 79 $170,646 6.90% $11,774.58

10 80 $179,178 7.00% $12,542.49

11 81 $188,137 7.10% $13,357.75

12 82 $197,544 7.20% $14,223.18

13 83 $207,421 7.30% $15,141.76

14 84 $217,792 7.40% $16,116.64

15 85 $228,682 7.50% $17,151.16

The New Hybrid Annuities (example)

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When an annuity is annuitized the money is given to the insurance

company, which then returns it back to the client based on a contractual

obligation. The client can receive their money as an income stream for

life or over a predetermined number of years, or a combination of both.

Regardless of which payout option is selected, the client has no control

of their money.

In recent years, annuities have added an income rider to their

menu of options. This rider allows the owner of the annuity to receive

guaranteed lifetime income from an annuity without annuitizing

therefore retain full control of their money.

it and

Income Riders and How They work

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These riders are offering the best of both worlds: guaranteed income

and availability of the lump sum of money if an unexpected need arises.

The riders have various forms but some common features. They all

have a payout factor based on the age of the annuitant. Many have

guaranteed growth rates that apply to a special “Income Account

Value.”All of the riders guarantee an income stream that can go up but

will never go down as long as the owner does not take additional

withdrawals from the annuity. Most of the riders

turn the income on and off as they choose.

allow the owner to

Income Riders and How They work

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Income Account Value - The Income account value is only a number that is used to

calculate income at the time the client wishes to activate the rider. The income

account value is NOT the same as the account value. The account value is the

client’s money and grows based on the crediting method that is selected every year

during the annual review. Many clients confuse theirAccount Value (their actual

money) with their Income Account Value (a value which is used to calculate a

guaranteed income stream). Most income riders have a guaranteed growth factor

that creates a separate income bucket (Income Account Value), which then grows

at a guaranteed rate. You must carefully read the fine print on these riders to

determine what will keep you from receiving these guaranteed growth rates. Many

riders do not give the guaranteed growth rate if a withdrawal is made in the year.

This means that if the annuity is in a qualified account, and the client is over 70 ½

years of age, the required minimum distribution, which must be taken by law, will

nullify the guaranteed growth. This is particularly true in the larger growth rates.

Income Riders and How They Work

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Payout Factor - All Income Riders have a payout factor. This factor is a percentage

that is based on the age of the annuitant when they first wish to receive a

guaranteed income. These factors are almost always the same: 5% at age 60, 6% at

age 70, 7% at age 80 and above. However, in different insurance products, the

factor changes every 10 years, every 5 years, or every year.

ProductA - Payout factor = 5% at age 60, 6% at age 70, 7% at age 80 and above.

Product B - Payout factor = 5% at age 60, 5.5% at age 65, 6% at age 70, 6.5% at

age 75, 7% at age 80, 7.5% at age 85 and above.

Product C - Payout factor = 5% at age 60, 5.1% at age 61, 5.2% at age 63, 5.3% at

age 64, ….up to 8% at age 90.

All income riders have a fee associated with them. These fees are usually

within a 35 to 50 basis point range. Some of the fees are taken only from gain (e.g.

no gain = no fee) and others are taken regardless of the performance of the annuity.

Income Riders and How They Work

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So which riders is the best for you? It depends on your real situation

and when you want to start taking income. If you are going to let your

account build for a period of time (5 to 6 years) before you plan on

taking income and you will not need to make any withdrawals, then an

annuity with a high guaranteed growth factor might be the right one for

you. On the other hand, if you are looking to start your income in 1 or 2

years, then the annuity with the highest payout factor and lowest fees

might be the most appropriate.

Income Riders and How They Work

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A New Index StrategyThe Rainbow Strategy

(Global Lookback)

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In these times of high volatility, people are looking forways to diversify their portfolio in order to protect their nestegg and try to capture as much of the upside as possible. Butwhat exactly is diversification? Is it choice? A Jelly Bean Storecan have thousands of different choices of colors and flavorsbut everything you buy is still a jelly bean. True diversificationis a mixture of uncorrelated, or lesser correlated,

items. When looking for diversification for where you put your nest

egg, you want

the globe.

to be spread out across the different economies around

The Rainbow Strategy

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Where do you think we are going to see the economy improving in the

next ten years? China? Europe? Japan? America? How would you like to be

in a position where you would not have to guess which economy will grow

the fastest to be able to take advantage of that growth? That is what the new

"rainbow crediting method” does.

Many of the experts familiar with this strategy say it is like being able

to bet on the race after the horses have run. Here is how it works.

The strategy uses four indices from around the world: the Hang Seng in

China, the Dow Jones Eurostoxx 50 in Europe, the Nikkei 225 Index

Japan, and the S & P 500 in America. This strategy is not only

diversified using economies from around the world, but it is also

weighted so that most of the money is going to the indices that are

producing the best results.

in

The Rainbow Strategy

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At the end of the year, the rainbow strategy allocates 40% of the money

in the strategy to the index that has grown the most, 30% of the money to

the index which came in second, 20% of the money to the index which

came in third, and 10% to the the trailing index. This means that the 70% of

your money is allocated to the top two highest growth indexes. It then adds

up all of these results and multiplies the total by 60%.A 1.5% free is

subtracted. If the result is positive, your account is credited with the

earnings. If the result is negative or zero, your account remains unchanged

from the prior year. So in up years, your account is

growing at a substantial

earnings are protected.

rate and in down years your principal and past

The Rainbow Strategy

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The Rainbow Strategy

Here is an example of how this would actually work:

IndexA grows 60% X 40% of money is allocated = 24%

Index B grows 30% X 30% of money is allocated = 9%

Index C grows 20% of money is allocated = 4%

Index D shrinks 10% X 10% of money is allocated = -1%

Total = 36%

36% X 60% = 21.6% - 1.5% spread =

20.1% interest credited

And you did not have to worry about which of the four Global Markets

was going to grow the most. This strategy did all of the work for you!

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The Rainbow Strategy

In summary, the Rainbow strategy offers the most innovative response

to the volatile times that we are currently living in. If you are looking for a

way to protect your retirement nest egg and still have a very good chance to

earn some impressive returns, then this new and innovative strategy has

definitely earned the right to be highly considered. Finding these kind of

returns with the safety that these products are famous for is the perfect

answer to the uncertainty of the era in which we live.

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The rainbow method is an option basket whose best-performing indices

are weighted more heavily than those that perform less well. It is always a

"look- back" because the money is allocated based on the ranking of the

performance after the period is over. Rainbows are always index blends, but

not all index blends are rainbows. The difference is blended methods state at

the beginning what the percentage make-up is of the indices in the blend, but

the rainbow method combination is based on the returns calculated with the

largest portion going to the best performers. The Rainbow marketing appeal

has been expressed by saying that the annuitybuyer gets to bet on the race after

it has been run and that most of the bet will be put down on the horses that

“win or place.”

Rainbow Connection(Getting the largest pot of gold)

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In my earlier look I said that if the choice was between the S&P 500

method with a cap and a rainbow method with a higher cap that I would pick

the rainbow method every time – and I still feel that way. However, I noted

that capping the rainbow return somewhat defeats the main attraction of using

the method – it’d be like picking the winning horses after the race but being

limited to a $2 bet.

The other point raised was that of correlation, or how closely one index

tracks another. For example, the S&P 500 and Dow Jones IndustrialAverage

have over 99% correlation over the last 50 years. If your goal is diversity in

returns it doesn’t make sense to put together indices that move the same way.

My feeling is if you are using the rainbow method you should attempt indices

that have the lowest correlation because one might hit a home run. Sure, one

index could be a stinker, but the lowest performer is given the least weight

thus the impact is minimized.

Rainbow Connection(Getting the largest pot of gold)

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Global Lookback:

The Basket

• S&P 500

• Dow Jones EURO STOXX 50

• Nikkei 225 Index

• Hang Seng Index

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Global Lookback:

The Basket

Nikkei 225 Index

An Index of the MostActively Traded Issues

Exchange

i.e. Toyota, Canon, Sony

Hang Seng Index

on the Tokyo Stock

An Index that contains the 40 Leading Stocks on the Hong King Stock

Exchange

i.e. HSBC, Cosso, Espirit, Holdings

67

Global Lookback:

The Basket

Dow Jones EURO STOXX 50

An Index that includes blue-chip sector leaders in

i.e. Bayer, Nokia, Volkswagen

S&P 500

Western Europe

A US Index that includes 500 Leading Companies

Industries

from a Range of

i.e. General Electric, Wal-Mart, Microsoft

68

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Disclaimer:

This booklet does not give individual tax or investment advice, it's purpose is to educate you on annuities. None of the examples in the booklet should be used for your personal planning. The products and ideas referenced in this booklet may not be available in: all states, all ages and all scenarios.