Seminar provided by ING Financial Advisers, LLC member SIPC.

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Retirement planning for women
How you might save more and spend it longer
Seminar provided by ING Financial Advisers, LLC
(member SIPC). C05-0517-003R (06/05)
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The ING Difference
to life planning
about financial realities
that take the whole picture into account
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What ground well cover today
What unique retirement planning challenges do
women face? Am I saving as much as I could
where I should? How can I invest now so I can
potentially maintain my lifestyle later? How
should I spend later so I wont risk outliving
my assets?
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Who will join us along the way
Sondra
Eileen
Donna
I lost so much money in the marketI just
stopped investing.What should I do now?
I thought I was on track, but then my husband
died 10 years ago. Now what?
I think Im doing theright things. But Im
always willing to learn more.
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What unique retirement planning challenges do
women face?
Is financial planning really that different for
women?
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The good news
Women are taking greater charge of their finances.
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The not-so-good news
Women are likely to receive less from other
sources.
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The bottom line youll need to save more and
spend it longer
Men
Women
Sources of Income for Older Persons in 2002,
Public Policy Institute, Data Digest, AARP.
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Am I saving as much I could and where I should?
I cant possibly save any more for my future
expenses. Its tough enough just making ends meet
for todays expenses.
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Envision where youd like to be.
Youll be much more motivated to save.
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Take stock of where you are.
How much do you spend each month? How much debt
have you accumulated? Do you have an emergency
fund to cover 3-6 months? How much have you
saved? How much more could you save if you
spent even a little less?
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Maximize contributions to your retirement plan.
Sondra Decided she couldnt savebut still
ended up paying Uncle Sam nearly 200 more!
Eileen Paid herself first. Saved nearly 200 on
taxes. Plus got over 150 more free from her
employer!
Taxable Income 401(k) contributionCatch-up
contributionReduced taxable income Federal
income tax Employer match
Taxable Income 401(k) contributionCatch-up
contributionTaxable income Federal income
tax Employer match
4,166.67 - 416.67- 333.33
3,416.67 854.17166.67
4,166.67 - 0- 0
4,166.67 1,041.670
For illustrative purposes only. Assumes 25 tax
bracket, 10 401(k) contribution, 1/12 of the
4,000 catch-up contribution and 50 employer
matchup to 10.
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See how even saving a little more now adds up
over time.
Defers 5 of her salary for the next 15
years Increases her account by 59,910
Defers 8 of her salary for the next 15 years
Increases her account by 95,856 nearly
36,000 more than Sondra!
The example mentioned above is hypothetical, for
illustrative purposes only and not intended to
project the performance of any specific
investment.Actual rates of return will vary over
time. Dollar cost averaging/Systematic Investment
plan does not ensure a profit nor guarantee
against loss. Investors should consider their
financial ability to continue their purchases
through periods of low price levels.
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How should I invest now so I can maintain my
lifestyle later?
I know Im losing time. But Im afraid to lose
any more money.
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Balance your desire for growth with your stomach
for risk.
For illustrative purposes only. This example may
not reflect your actual situation.
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Balance your desire for growth with your stomach
for risk.
Source ChartSource, Standard Poor's Financial
Communications. Stocks are represented by the
SP 500 Index, an unmanaged index generally
considered representative of the stock market.
The return and principal value of investing in a
stock mutual fund or variable annuity funding
option fluctuates with changes in market
conditions. Stocks may offer greater growth
potential in comparison to bonds, but carry more
risk. Bonds are represented by long-term
Treasuries (10 years) and constructed from
yields published by the Federal Reserve. The
principal value of a bond varies inversely to the
rise and decline of interest rates. Bonds
typically offer a fixed rate of return, if held
to maturity. However, bonds may contain a call
feature that may be exercised prior to maturity.
Cash is represented by the yield of 90-day
Treasury bills and is a highly liquid security
with a known market value and maturity when
acquired, of less than three months. Past
performance does not guarantee future results. An
index is unmanaged. You cannot invest directly in
an index, and indices do not reflect the
portfolio of any investment. For illustrative
purposes only. This example may not reflect your
actual situation.
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Stick with your strategy even when the market
gets rough.
Growth of 10,000 for the 10-year period from
01/95-12/04
35,000 30,000 25,000 20,000 15,000
10,000
Always invested
Missed 5 best days
Missed 10 best days
Missed 15 best days
Missed 20 best days
This chart is for illustrative purposes only.
Performance shown is index performance of the SP
500, and not illustrative of any particular
investments. Source ING Funds 2005. Past
performance is historical and cannot predict
future results. There are risks of fluctuating
prices and uncertainty with regard to rates of
return and yield inherent in investing. The SP
500 is an unmanaged index of the common stock
prices of 500 widely-held U.S. stocks. An
investor cannot invest directly in an index.
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See how earning even a little more adds up over
time.
Both earn 50,000 and defer 8 over 15 years
Averages 6 returns per year Increases her
account by 95,856
Averages 8 returns per year Increases her
account by 112,869 over 17,000 more than Eileen
The example mentioned above is hypothetical, for
illustrative purposes only and not intended to
project the performance of any specific
investment.Actual rates of return will vary over
time. Dollar cost averaging/Systematic Investment
plan does not ensure a profit nor guarantee
against loss. Investors should consider their
financial ability to continue their purchases
through periods of low price levels.
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How should I spend later so I wont risk
outliving my assets?
Ive been so focused on saving. I never gave
much thought to how I would withdraw those
savings when I retire.
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Organize your resources intodifferent categories.

• Create an emergency fund that could cover up
  to 6 months expenses.
• Separate remaining assets into three
  categories

- Short-term money to help cover the
necessities. - Mid-term money to help cover the
niceties. - Long-term money that might grow and
help replenish the other categories.
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Have a steady stream of cash to pay your basic
expenses.

• What it covers
• Food
• Housing
• Utilities
• Taxes
• Health Care
• Insurance
• Emergencies

• What goes in
• Social Security
• Pension
• Part-time income
• Rental income

The Necessities
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Not enough to cover monthly necessities?
Turn a portion of your savings into a stream of
regular income checks that can be used for
essential expenses.

TheNecessities
Long-Term Assets
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Once fixed expenses are covered, fund
discretionary expenses.

• What goes in
• Retirement plans
• Interest/dividends
• IRAs
• Home equity
• Employment income
• Bank savings/CDs

• What it covers
• Money needed to help replenish essentials and
  pay for
• Travel
• Entertainment
• House/car repairs
• Education

The Niceties
Bank certificates of deposit are FDIC insured up
to applicable limits and offer a fixed rate of
return. Variable annuity returns/mutual fund
yields and principal will fluctuate with market
conditions.
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Stash some cash away for the long term.

• What goes in
• Long-term stock investments
• Long-term bond investments
• Any other type of financial investment

What it covers Money needed to helpreplenish
the resources for your niceties and toprovide
for Potential long-term growth
Additional income to compensate for
inflation hedge and longevity protection
Long-Term Growth
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Shift your resources as necessary.
Possiblesolution May need to convert 170,000
of hersavings nest egg togenerate 1,000 more
regular incomeeach month for the restof her
life.
Monthly shortfall Monthly expenses of
2,500 Monthly income of 1,500
This hypothetical illustration assumes a lump sum
purchase of an immediate annuity using a fixed
investment option your income payout amount is
based on a single lifetime payout using the
current unisex life expectancy tables. A single
lifetime annuity payout will provide you with an
income that begins on your retirement date and
continues for as long as you live.
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Dont withdraw from your tax-deferred plans too
early or too late.
Your tax-deferred savings limit when how you take
your money.
Type of Tax When It Applies How Much It May Be
Early Withdrawal Generally, if you withdraw 10
of amount Penalty prior to age 591/2 withdrawn
Required Minimum If you dont withdraw at
least 50 of Minimum Required Distribution the
Minimum Required Distribution not taken Penalty
Distribution beginning at the later of
retirement or April 1st of the year after you
turn age 701/2
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Dont withdraw too much too fast.
This chart assumes a retirement balance of
200,000, an average inflation rate of 3, and an
average fixed rate of return of 4. This chart is
for illustrative purposes only and is not
indicative of any investment. Past performance is
no guarantee of future results.
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Dont feel you have to go it alone.

• A financial professional
• Helps you evaluate your entire financial
  situation
• Provides objective input
• Explains risks and options
• Offers choices personalized to your situation
• Operates from experience

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Dont wait any longer to move forward!