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					         Did you know?
         •    IRA assets are expected to increase to $10 trillion
              in the next 20 years1
                     • 80% of that sum will come from rollovers
         •    IRA rollover dollars are larger than 401(k)
              contributions, and are growing at a faster rate 2
         •    Consumers will withdraw more than $3.7 trillion
              from qualified retirement plans by 2006, and more
              than half of that will be funneled into rollover
              IRAs.3

                                             1 CerulliAssociates
                                             2 Bernstein Research/Cerulli Associates
                                             3 Financial Research Corporation




FOR ADVISOR USE ONLY – NOT FOR PUBLIC DISTRIBUTION
•   A recent study indicated that in any given year, as much as 25% of a
    broker's or an advisor's client base could be eligible for an IRA
    rollover. 1
•    By 2010, nearly half a trillion dollars will flow from 401(k) plans into
    rollover IRAs each year. 2
               Annual Rollover IRA Contributions                                          $467
                                                                                   $413
                                                                            $366
                      1999 - 2010 ($ billions)                       $324
                                                              $286
                                                       $255
                                                $226
                                         $201
                                  $179
                   $127 $143 $160
                   99

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                                                                                            (1) Financial Research Corporation
                                                                                            (2) Cerulli Associates

              FOR ADVISOR USE ONLY – NOT FOR PUBLIC DISTRIBUTION
Cerulli Associates predicts that the growth of assets in IRA rollover plans will
be well distributed throughout the broker/dealer, mutual fund, and insurance
industries.
           Total Annual Rollover IRA Assets by Provider Type
                1999 and 2005E (Estimated, in $ billions)
     300
                     $127.3 Total                                        $254.6 Total
                                                               $1.7
     250
                                                              $19.3
                                                                                                          $21.9
     200

     150                                                                           $105
              $0.7
              $8.1                       $14.9
     100
                         $52.5
      50
                          $51.1                                                    $106
       0
                         1999                                                   2005E
      Broker/Dealer               Mutual Fund Companies                      Banks
      Insurance Companies         Other
                                    Cerulli Associates, Inc., The Rollover IRA Market: Retirement Markets in Transition, 2000
              FOR ADVISOR USE ONLY – NOT FOR PUBLIC DISTRIBUTION
                        $250,000           Value of Taxable Account
                                           Value of Tax-Deferred Account
                        $200,000
End Value After Taxes




                        $150,000


                        $100,000


                        $50,000


                             $0
                                            1 year                 10 years                 20 years                 30 years
                  Hypothetical value of $10,000 invested in large company stocks. Assumes a 27% marginal tax rate. Estimates are not
                  guaranteed. The above illustration does not reflect mortality and expense risk charges, sales charges, management
                  fees, contract administrative charges, and distribution charges that are typically associated with investing in a variable
                  annuity. If these charges were taken into account, they would reduce the level of performance.

                             FOR ADVISOR USE ONLY – NOT FOR PUBLIC DISTRIBUTION
      • U.S. employees will change jobs more than
        11 times during an average working lifetime
        of 40 years. 1
      • Only about half of job changers are able to
        transfer their eligible retirement plan
        balances into their new employer’s
        retirement plans. 2
      • 24% of Americans are unaware of the tax
        consequences associated with taking a cash
        distribution from an employer-sponsored
        plan.3                          1   U.S. Department of Labor, Bureau of Labor Statistics
                                        2   Spectrem Group
                                        3 Neuwirth   Research Inc.

FOR ADVISOR USE ONLY – NOT FOR PUBLIC DISTRIBUTION
         • 76 million baby boomers are heading
           towards retirement. 1
         • More than half of rollover dollars come
           from pre-retirees. 2
         • Half of all retirement rollover dollars
           are concentrated in accounts with an
           average balance of $119,200. 3


                                         1LIMRA     International
                                         2Bernstein   Research/Cerulli Associates
                                         3Cerulli   Associates



FOR ADVISOR USE ONLY – NOT FOR PUBLIC DISTRIBUTION
                                                                         Possible tax implications of taking
1: Cash Distribution*                                                    a $25,000 cash distribution2

•        20% automatic withholding
•        possibly up to 16% or more in federal
                                                                                           $11,500
         income taxes1                                                       $13,500
                                                                            remaining
                                                                                          taxes and
                                                                                           penalties

•
                                                                            after taxes
         a possible 10% early withdrawal penalty                                and
                                                                             penalties

•        possible state and local taxes
•        In addition, the client would need to work
         longer and save more to make up for the lost
         earning power of the present funds.
* Before age 59 ½
1 Assumes 36% tax bracket
2 Hypothetical example. Does not take into account state

  and local taxes that may be due.



                                  FOR ADVISOR USE ONLY – NOT FOR PUBLIC DISTRIBUTION
     2. Leave money in former employer’s plan
     •   Possible limitations on holdings.
     •   Plan controls access to funds.
     •   Generally, account balance must be more
         than $5,000.
     •   The client pays no penalties, and the
         account maintains its tax-deferred status.




FOR ADVISOR USE ONLY – NOT FOR PUBLIC DISTRIBUTION
       3. Transfer funds into new employer’s plan
       •    Not all employers provide this option.
       •    The new plan may offer few investment
            options.
       •    Ability to control and access to funds may
            be limited.
       •    The client pays no penalties, and the
            account maintains its tax-deferred status.


FOR ADVISOR USE ONLY – NOT FOR PUBLIC DISTRIBUTION
          4. Transfer funds into a rollover IRA
          •    Wide array of investment options.
          •    Freedom to change investment strategy.
          •    Ability to consolidate retirement assets.
          •    The client pays no penalties, and the
               account maintains its tax-deferred
               status.



FOR ADVISOR USE ONLY – NOT FOR PUBLIC DISTRIBUTION
No Current Taxation or Early Distribution Penalties
   Rolling over an eligible distribution directly to a rollover IRA
   allows the client to avoid a possible 10% early withdrawal
   penalty, mandatory 20% withholding for federal income taxes,
   and to postpone paying taxes on the amount rolled over until it
   is withdrawn from the IRA.
Continued Tax-deferred Status
  IRA rollovers let eligible rollover assets continue to accumulate
  any earnings on a tax-deferred basis.
Choice
  Rollover IRAs offer access to a wide variety of investment
  choices to meet the investor's needs.
              FOR ADVISOR USE ONLY – NOT FOR PUBLIC DISTRIBUTION
Flexibility
   The client retains the ability to roll the funds into a future
   employer's plan.
Consolidation
  Sometimes after changing jobs three or four times, clients find
  themselves with three or four piles of money out there with
  little thought as to whether they add up to the proper asset
  allocation. Rollover IRAs offer a convenient way to consolidate
  multiple retirement plan accounts into one easily managed
  account. A consolidated performance report makes it easier to
  remain focused on one retirement investment strategy.


               FOR ADVISOR USE ONLY – NOT FOR PUBLIC DISTRIBUTION
$127 billion, or 67% of all defined contribution assets
distributed were deposited into rollover IRAs.
.




         FOR ADVISOR USE ONLY – NOT FOR PUBLIC DISTRIBUTION
Clients receive professional money management
Clients receive a flexible, customized investment program that
provides all the benefits of a continuously managed portfolio tailored
to meet his or her individual financial needs.
Clients pay a single fee
Clients receive a personalized, diversified portfolio and consolidated
quarterly performance reports for one fee. As their advisor, you
receive a percentage of assets under management for as long as the
client holds the account.
Automated account maintenance and rebalancing
Generally, fee-based accounts provide rebalancing to keep the client's
asset allocation in line with his or her investment goals.

            FOR ADVISOR USE ONLY – NOT FOR PUBLIC DISTRIBUTION
According to a study by
Fidelity, 58% of recently retired    Did the investor open a rollover IRA
                                     account with the firm where he/she
investors indicated that the
                                     received professional investment
primary reason for rolling over      assistance?
their 401(k) plan to an IRA was
that they wanted help                    Yes
                                        78%
managing their retirement
assets.


                                                                                         No
                                                                                         22%


                                     Competitive Retirement Research (1999 Nationwide Monitor Survey of Americans
                                                         Contributing to Tax-Advantaged Retirement Products), 2001
             FOR ADVISOR USE ONLY – NOT FOR PUBLIC DISTRIBUTION
Increase your recurring revenue stream
The FundQuest fee-based program helps you retain assets. Did
you know that most investments in fee-based programs are held for
at least 10 years? In addition, you will increase your book of
business, as the average rollover account is more than $119,000
and one in seven accounts exceeds $250,000.
Outsource your back-office operations
You're free to spend your time gathering assets rather than
servicing accounts.




         FOR ADVISOR USE ONLY – NOT FOR PUBLIC DISTRIBUTION

				
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posted:8/5/2011
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