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                    There are a lot of startling statistics in the book Retirementology®: Rethinking the
                    American Dream in a New Economy. We’ve chosen a few of the most powerful ones
                    to help you make the following point to your clients: Retirement planning wasn’t
                    easy before the meltdown, and now it’s even more complicated. Expert guidance
                    is what’s needed to help plan for the retirement your clients are envisioning.


                    the magnitude of the meltdown
                    According to a 2009 consumer study, after the Meltdown of 2008, Americans are now placing a
                    premium on preserving principal, and 80% of those surveyed report they are now more concerned
                    with guarantees and stability than they are with returns as they head toward retirement.
                    MetLife, “The 2009 MetLife Study of the American Dream: Rebooting the American Dream. Shifted.
                    Altered. Not Deleted.,” study conducted from January 7–16, 2009.

                    Cumulative loss of 7.2 million jobs – record 20M unemployment claims in 2009.
                    Freddie Mac, Office of the Chief Economist Report, “Weak Labor Market Affects Housing Trends,” December
                    18, 2009; MSNBC.com, “Unemployment sets a grim record in 2009,” December 31, 2009.

                    Consumer anxiety about interest rates and a lack of guaranteed income has more than doubled in
                    the last three years.
                    McKinsey & Company, The McKinsey Quarterly, “Helping US consumers rethink retirement,” May 2009.

                    A quarter of U.S. employers have eliminated matching contributions to their 401(k) plans since
                    September 2008.
                    Reuters, “Employer’s eye changes to 401(k) plans,
                    study shows,” June 22, 2009.

                    Eighty-one percent of Boomers say the meltdown
                    will cause a major shift in their financial behavior
                    and how they manage their investments and
                    behave with their money.
                    MetLife, “The 2009 MetLife Study of the
                    American Dream: Rebooting the American
                    Dream. Shifted. Altered. Not Deleted.,”
                    study conducted from January 7–16, 2009.




Financial Professional Use Only – Not for Public Distribution.
         the impact of Hell thcare                                            what you Don’t Know Can tax you
         Healthcare costs are rising at four times the rate of inflation.     Taxes are expected to increase some $1.4 trillion over the
         National Coalition on Health Care, “Issue Areas: Insurance,” 2009.   next 10 years.
                                                                              Brian Riedl, The Heritage Foundation, “The Obama Budget:
         Disability is known as “the forgotten risk.”                         Spending, Taxes, and Doubling the National Debt,”
         Ginger Applegarth, MSN Money, “Disability insurance can save         March 16, 2009.
         your life,” August 20, 2008.
                                                                              Because those with the most money are taxed at a higher
         In the next 10 years, 50 million Americans will be 65 or             rate, one percent of American families ended up paying
         older and more than half of them will require at least one           40% of America’s personal taxes.
         year of long-term care, whereas 20% will need more than              Charles Murray, The Wall Street Journal, “Tax Withholding Is Bad
         five years of such care.                                             for Democracy,” August 13, 2009.
         U.S. Department of Health and Human Services,
         National Clearinghouse for Long-Term Care Information,               In 2010, the government will spend more money per
         “What is Long-Term Care,” October 22, 2008.                          household than at any point in history (over $31K), with
                                                                              the largest recipient of this increase being Social Security
         A recent Consumer Price Index Summary report shows                   and Medicare. With 77 million Baby Boomers retiring, if
         that medical care went up 3.4% from 2008 to 2009.                    these programs are not reformed, income taxes will need
         U.S. Bureau of Labor Statistics, Consumer Price                      to double to afford them.
         Index—December 2009, January 15, 2010.
                                                                              Brian Riedl, Tampa Bay.com, “Washington will spend $31,406 per
                                                                              household this year,” April 12, 2010.
         Seventy to 75% of all long-term care given in the United
         States is provided by a family member.
         Long Term Care Link.net, “About Long Term Care at Home,” 2009.

         Unexpected medical bills have been the main reason that
         Americans 65 and older were the fastest growing group
         seeking bankruptcy protection.
         Christine Dugas, USA Today, “Bankruptcy rising among seniors,”
         June 20, 2008.

         Estimates anticipate an average 65-year-old couple will
         spend $250,000 out-of-pocket to cover healthcare costs
         that aren’t covered by Medicare.
         Mark Jewell, Yahoo! Finance, “Retired couples may need $250k
         for health care,” March 24, 2010.

         Medicare was predicted to run out of money in 2019,
         Social Security in 2041—but is now expected to be
         exhausted four years sooner, in 2037.
         Robert Pear, The New York Times, “Recession Drains Social
         Security and Medicare,” May 13, 2009.

         The cost of brand name drugs has increased more than
         2.5 times the rate of general inflation since 2002.
         Kevin Freking, USA Today, “Brand-name drug prices continue to                             VigoriStiC:
         grow,” March 4, 2008.                                                                      [vig-er-is-tik]
         One in seven workers suffers a five-year or longer period                 Overconfidence in one’s ability to remain
         of disability before they’re 65, so don’t get overconfident               healthy, often resulting in a lack of critical
         about your ability to earn a living.                                            financial healthcare planning.
         Ginger Applegarth, MSN Money, “Disability insurance can save
         your life,” August 20, 2008.




Financial Professional Use Only – Not for Public Distribution.
        investors behaving badly                                              Numbed by the Complexity of
        More than 20% of workers age 45 and up have stopped
        contributing to their 401(k)s.
                                                                              retirement Planning
        Eleanor Laise, The Wall Street Journal, “Big Slide in 401(k)s Spurs   Sixty-six percent of pre-retirees who have spent time
        Calls for Change,” January 8, 2009.                                   planning for their retirement, spend the same amount
                                                                              or more time on home improvement than on retirement
        Fifty percent of those eligible don’t participate in                  planning. And 60% spend the same amount or more time
        retirement accounts.                                                  planning for their children’s college education.
        Pension Rights Center, Statement of Norman Stein Before               Plan for your Heath sponsored by Aetna and The Financial
        the ERISA Advisory Council Work Group on Approaches for               Planning Association, “Daydreaming About Retirement
        Retirement Security in the United States, September 17, 2009.         Instead of Planning For Your Dreams?” 2010.

        After the Meltdown of 2008, many people sold securities               What’s even more amazing, 31% of pre-retirees
        and put their money into cash. By following the herd,                 would rather clean their bathroom or pay bills than
        many investors stayed out of stocks from March 2009                   plan for retirement.
        through the summer, when the Dow went up about 40%.                   Plan for your Heath, Sponsored by Aetna and The Financial
        Jack Healy, The New York Times, “Dow, First Time in a Year,           Planning Association, “Daydreaming About Retirement
        Breaks Through 10,000,” October 15, 2009.                             Instead of Planning For Your Dreams?” 2010.


        The average American household credit card debt equals                Eighty-two percent of Americans said they have a better
        $8,565, up almost 15% in 2008 since 2000.                             sense of their medical and auto policies than they do their
        Gretchen Morgenson, The New York Times, “Given a Shovel,              retirement plan.
        Americans Dig Deeper Into Debt,” July 20, 2008.                       Producers Web.com, “Hartford survey finds that few
                                                                              understand retirement benefits,” September 10, 2009.
        Forty-three percent of American families spend more
        than they earn.
        Kim Khan, MSN Money, “How does your debt compare?” 2009.




                   If you’d like to share more of this kind of
                  information with your clients, contact your
                    Curian Regional Business Consulatant to
                  get a copy of the book, Retirementology®:
                   Rethinking the American Dream in a New
                    Economy and visit retirementology.org.




Financial Professional Use Only – Not for Public Distribution.
For representative use only. Not for public distribution.
                      more to Consider
                      There’s a 50% chance that at least one member of a couple around 65 years old will live to be 91.
                      Steve Vernon, CBS Money Watch, “Planning To Your Average Life Expectancy: A Bad Mistake,” March 18, 2010.

                      If you have a $250,000, 30-year mortgage at 6% and you pay an extra $100 a month, you could
                      save nearly $52,000 in future interest and pay off the loan four and a half years early.
                      Liz Pulliam Weston, MSN Money, “Don’t rush to pay off that mortgage,” November 2009.

                      Many Baby Boomers are helping to financially support both their parents and their adult children.
                      Almost a third (31%) of relatively wealthy Americans are supporting older and younger immediate
                      family members at the same time.
                      Emily Brandon, US News, “Baby Boomers Supporting Parents, Adult Children,” April 22, 2010.

                      A study by AARP and the National Alliance for Caregiving report that providing care for an elderly
                      parent, family member or a disabled child has become an unpaid, part-time job for nearly 66 million
                      Americans. On average, caregivers provide 19 hours of help a week and this can cause people to
                      miss work or even have to quit their job altogether.
                      Joseph Shapiro, National Public Radio, “Study: 30 Percent Of Americans Are Caregivers,” December 8, 2009.

                      Ninety-two percent of affluent Boomer parents financially helped their adult children.
                             • 70% helped with college loans
                             • 52% helped with a car purchase
                             • 41% paid for car insurance
                             • 35% made car payments
                      Janice I. Wassel, PhD, Aging Well Magazine, “Boomerang Burdens: Back to the Nest,” Vol. 1 No. 3,
                      Summer 2008.

                      The best way to maintain and improve your credit score is to know your score and know how
                      scoring is compiled.
                            • Payment history: 35%
                            • Debt to credit ratio: 30%
                            • Length of credit history: 15%
                            • Credit application frequency: 10%
                            • Types of credit lines and other factors: 10%                                                                                   Club FamwiCh:
                      Ryan J. Taylor, EzineArticles, “How Are Credit Scores Calculated?”,                                                                    [kluhb-fam-wich]
                      April 25, 2008.
                                                                                                                                                             A situation in which
                                                                                                                                                             multiple generations
                                                                                                                                                             of a family live in the
                                                                                                                                                             same house.




           Curian Capital, LLC acts as the Registered Investment Advisor for Curian Custom Style Portfolios. Curian Clearing LLC (member FINRA/SIPC) is the exclusive broker
           for these programs, for which it provides brokerage execution, processing and custody services. Investing in securities involves certain risks, including possible loss
           of principal.

           Financial Professional Use Only – Not for Public Distribution.




IIS6056 09/10

				
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