® 1 afn32287_1007 afn32287_1214 plan for retirement

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1AFN32287_1007AFN32287_1214

PLAN FOR RETIREMENT

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Why Mutual of Omaha Retirement Services?

• Proven financial strength and stability• Customer-focused core values

Investment options are underwritten by either United of Omaha Life Insurance Company or Companion Life Insurance Company, wholly owned subsidiaries of Mutual of Omaha.

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Important Upcoming Dates:

• Open Enrollment: [week of]• Black Out Begins: [week of]• Black Out Ends: [week of]

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Today’s Agenda

• Why save for retirement?• What is a 401(k) plan?• How much do you need to save?• Where should you invest your money?• How do you get started?• Specific features about your plan

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Why Save for Retirement?

• Social Security will not be enough• The impact of inflation• Increased years in retirement

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2012 Income Sources for Retirees

Source: Social Security Administration, Income of the Aged Chartbook, 2010, released March 2012

OTHER 3%

SOCIAL SECURITY 37%

EARNINGS 30%

PENSIONS 19%

ASSET INCOME 11%

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Higher Cost of Inflation

Sources: Inflation Data.com, 2012Current prices are estimates. Future prices based on an annual 2.65 percent rate of inflation.

TAKE A LOOK AT HOW PRICES MAY CHANGE OVER TIME:

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Increased Years in Retirement

WHY DOES MY LIFE EXPECTANCY MATTER?

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What is a 401(k) Plan?

• A retirement plan offered by your employer • You contribute• Your employer may contribute matching

contributions• Convenience• Tax advantages

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Assumes Adam and Michael are in a 27.5 percent tax bracket. Calculation shows federal income tax withholding only.

Advantages of Investing Pretax Dollars

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How Much Do You Need to Save?

• Identify personal needs• Develop a plan

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How Much Money Will I Need?

This chart is for illustration purposes only. Not intended to be investment advice; consult your financial/tax adviser for information about your specific situation. Assumes pretax savings through this plan and other tax deferred savings, no change in Social Security benefits, a 6 percent annual rate of return on investments after retirement, retiring at age 67 and living until age 85, with all funds exhausted by age 85. Assumes that salary and payout will grow at an annual rate of inflation of 3.25 percent.

Age Annual SalaryAmount

Needed at Retirement

25

$20,000$40,000$60,000$80,000

$286,037$810,466

$1,470,965$2,181,130

35

$20,000$40,000$60,000$80,000

$207,741$588,619

$1,068,321$1,584,094

45

$20,000$40,000$60,000$80,000

$150,876$427,498$775,892

$1,150,483

55

$20,000$40,000$60,000$80,000

$109,577$310,480$563,509$835,544

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How Much Should I Contribute?

This chart is for illustration purposes only. Chart computes contributions suggested to reach 75 percent of income needed for retirement. Not intended to be investment advice; consult your financial/tax adviser for information about your specific situation. Some amounts may exceed plan- or IRS-imposed participant contribution limits for defined contribution plans. Check the Plan Highlights section of your enrollment book for the IRS-imposed contribution limits.

AgeAnnual Salary

Suggested Contribution Percent

Suggested Weekly

Contribution

25

$20,000$40,000$60,000$80,000

8%11%14%15%

$30$86

$156$231

35

$20,000$40,000$60,000$80,000

11%16%19%21%

$43$121$219$325

45

$20,000$40,000$60,000$80,000

17%24%29%32%

$65$184$334$495

55

$20,000$40,000$60,000$80,000

32%45%54%60%

$121$344$623$924

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Why is Time Important?

The Benefits of Starting Early

Even though Alana contributed more money to her retirement savings plan, Suzanne ended up with nearly twice as much at age 65. Why? Because Suzanne started early and took advantage of the power of time and compounding.

This illustration assumes a 6 percent earned rate per year with money deposited at the beginning of the month. This rate is used for illustration purposes only and doesn't represent the actual performance of any specific investment. There’s no guarantee that any particular return will be achieved, and past performance is no guarantee of future results. Investment returns will vary and principle values, when redeemed, may be worth more or less than the original investment. Where applicable, figures have been reduced based on a tax rate of 27.5 percent.

$191,696

$136,694

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Where Should I Invest My Money?

• Professional investment portfolios• Risk-based• Time-based

• Build your own portfolio• Professionally managed account options• Self-directed Brokerage Account (SDBA)*

*Not all plans qualify for the SDBA. Additional fees may apply.Not intended to be investment advice.

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Time Horizon

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Risk/Return Profiles

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Simplified Investing Through Professional Investment Portfolios

• Portfolios that match your needs• Rigorous expert selection process• Professional diversification• Automatically rebalanced based on pre-set

allocation over time

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Mutual Directions® Portfolios

• Series of five risk-based portfolios• One investment decision (determined by risk tolerance)

• Designed to meet the objectives of the conservative to aggressive investor

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Mutual Directions® PortfoliosConservative to Aggressive Portfolios

Diversification does not ensure a profit or protect against a loss in a declining market.

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Which Portfolio is Right for You?

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GlidePath RetirementSM SeriesGlidePath Retirement portfolios are designed to help investors achieve a broadly diversified portfolio that will gradually become more conservative in its allocation as the target retirement date nears. The portfolios continue to be allocated along their investment “glidepaths” for approximately 20 years beyond the target retirement date. GlidePath Retirement portfolios offer higher equity exposure at the target retirement date than “to retirement” style time based portfolios.


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GlidePath RetirementSM Series

GlidePath Retirement 2005Designed for investors who intend to retire within five years of 2005.












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Vanguard® Target Retirement FundsVanguard® Target Retirement Funds are time-based investments that become more conservative as the target retirement date nears. Vanguard Target Retirement Funds offer lower equity exposure at the target retirement date than “through retirement” style time-based portfolios.


All Vanguard Target Retirement funds are managed by The Vanguard Group, Inc. Vanguard and Mutual of Omaha are not affiliated companies.

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Vanguard® Target Retirement FundsVanguard Target Retirement Income FundDesigned for investors already in retirement.

Vanguard Target Retirement 2015 FundDesigned for investors who intend to retire within five years of 2015.










*Vanguard is a trademark of The Vanguard Group, Inc.

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Build Your Own

• Customized portfolios• High level of involvement• Carefully selected, monitored investment options• Self-directed brokerage account*

*Not all plans qualify for the SDBA. This feature may impact pricing.

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Monitored FundsFixed Income/Bonds

• BlackRock High Yield Bond Portfolio• Bond Index Fund• Guaranteed Account*• Lifetime Guaranteed Income Account**• Metropolitan West Total Return Bond Fund• PIMCO Total Return Fund• Templeton Global Total Return Fund• TIPS Index Fund

Domestic Stock Funds• AB Discovery Value Fund• AllianzGI NFJ Dividend Value Fund

*The Guaranteed Account is an individual investment choice that is not part of the Mutual Directions® or GlidePath Retirement SM Series is not part of the program used by Mutual of Omaha to monitor the portfolios and their underlying funds at the product level.

**Lifetime Guaranteed Income Account (Rider Forms 651-GAQR-10 or 651-GAQR-10(CT) or 651-GAQR-10(OR)) may not be available in all states and specific features may vary by state. Availability may vary by plan. The Lifetime Guaranteed Income Account is not available in New York or Nevada.

Availability may vary by plan and may change over time.

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Monitored Funds (Continued)Domestic Stock Funds (continued)

• ClearBridge Small Cap Growth Fund**

• Goldman Sachs Small CapValue Fund

• Growth Stock Index Fund

• Harbor Capital Appreciation Fund

• John Hancock Disciplined Value Mid Cap Fund

• Lord Abbett Value Opportunities Fund

• MFS Value Fund

• Mid Cap Stock Index Fund

• Prudential Small Cap Value Fund

* Not available in New York.

** Only available in New York


• Royce Total Return Fund

• Small Cap Stock Index Fund

• Small Company Fund*

• Stock Market Index Fund

• T. Rowe Price Growth Stock Fund

• Value Stock Index Fund

• Vanguard® Morgan Growth Fund

• Vanguard® Windsor II™ Fund

• Waddell & Reed New Concepts Fund

• William Blair Small-Mid Cap Growth I Fund

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Monitored Funds (Continued)

International Stock Funds

• Causeway International Value Fund

• Emerging Markets Index Fund

• Harbor International Fund

• International Developed Countries Fund

• International Stock Index Fund

• MFS International Growth Fund

• Wells Fargo Advantage Emerging Markets Equity Fund


Specialty Funds

• Cohen & Steers Institutional Realty Shares

• Franklin Growth Fund

• Oppenheimer Global Fund

• PIMCO All Asset Fund

• Vanguard Global Equity Fund

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Self-directed Brokerage Account

For participants who want to select and trade in:

• Individual stocks listed on major U.S. stock exchanges• New York Stock Exchange• American Stock Exchange• NASDAQ

• Fixed income funds including U.S. government and corporate securities

• A large list of mutual funds

Additional fees apply.

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Professionally Managed Account Options

For participants who want a “do it for me” approach• Personalized retirement strategy recommendations• Professional account management• Regular monitoring and detailed reports


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Professionally Managed Account Option

Stadion• Fully automated feature• Manages investments based on current market conditions• Defaulted based on age or individual preference


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Stadion Managed Account Portfolio

Past performance does not guarantee future returns. Investments are subject to risk, and any of Stadion’s investment strategies may lose money. Investment return and principal value of an investment will fluctuate so that an investor's portfolio may be worth more or less than their original investment. Stadion’s actively managed portfolios may underperform during bull markets.

Current Portfolio Line UpNew Portfolio

Core Equity – This portion always remains invested in equity positions.

Core Fixed Income – This portion always remains invested in fixed income positions.

Flex – We invest this portion in equity, fixed income, or cash and other stable value positions depending on current market conditions.

All Stadion portfolios are managed by Stadion Money Management, LLC. Stadion and Mutual of Omaha are not affiliated companies.

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A traditional balanced fund uses a static asset allocation

strategy.

A significant portion of the portfolios – the Flex component – can be invested in equity positions or fixed income/cash positions based on

market risk conditions.

Equity Flex PortionFixed Income

25%

75%

25%

50%

25% 25%

75%

Stadion Balanced Portfolio Low Risk Environment High Risk EnvironmentStadion Balanced Portfolio

Low Risk Environment

High Risk Environment

25%

60%

25%

50%

25%40%

75%

Stadion Balanced Portfolio Low Risk Environment High Risk EnvironmentTraditional Balanced Fund

Past performance does not guarantee future returns. Investments are subject to risk, and any of Stadion’s investment strategies may lose money. Investment return and principal value of an investment will fluctuate so that an investor's portfolio may be worth more or less than their original investment. Stadion’s actively managed portfolios may underperform during bull markets. 34

All Stadion portfolios are managed by Stadion Money Management, LLC. Stadion and Mutual of Omaha are not affiliated companies.

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Professionally Managed Account Option

Morningstar® Retirement Manager™

• Professional investment guidance• Managed account services• Ongoing account review

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Qualified Default Investment Alternatives (QDIA)

Your Plan’s QDIA solution:• Stadion• Morningstar® Retirement ManagerTM

• GlidePath RetirementSM Series• Vanguard Target Retirement Funds

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How Do I Get Started?

• Determine how much to contribute• Complete Risk Tolerance Questionnaire• Choose how to invest your money• Complete the enrollment forms

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How Do I Get Started With Online Enrollment?• Go to www.getretirementright.com

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Online Enrollment – 1st Time Log In

•1st time Click “Need to Register”

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Online Enrollment – What You Need

•Social Security Number

•Date of Birth

•Zip Code

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Step 1 – Plan Highlights

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Step 2 – Deferral

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Step 2 – Deferral Completed

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Step 3 – Choose Investments

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Step 4 – Designate Beneficiary

•Must have all of these to complete Beneficiary Designation

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Step 5 – Confirm Enrollment

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Setting Your Retirement Goals

•Click here to determine your retirement goals

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Online Tools – Paperless Statements

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Your ProfileView Profile

•Email Address: email validation is a 4 step process. Once complete, you will receive an email when your statement is available to view

•Click on “paper” if you want a statement mailed to your home.

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Your Plan Features

• Plan highlights• Plan tools

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Plan Highlights

• Eligibility• Contributions• Vesting• Investment options• Loans• Distributions

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Roth 401(k) – More Ways to Save for Retirement

• After-tax contributions• Tax-free withdrawals*• No income restrictions• Eligible for matching contributions**• Eligible for rollover into another qualified plan

*Contributions must remain in the plan for 5 years from the first time Roth 401(k) contributions are made and begin after age 59 ½. Roth contributions are not available to be withdrawn as a loan, even if your plan permits plan loans.

**Check your plan provisions.

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What is more advantageous – Roth or Pretax

You may want to consider pretax contributions if:

• Minimizing the taxes you pay today is very important to you

• You think your tax rates will be lower when you retire than they are today

• The current tax savings you get by making pretax contributions is substantial

• Increasing your income would reduce tax credits you may be eligible for now

• You believe the certainty of an immediate tax reduction outweighs a potentially larger, but uncertain tax reduction in the future

• You have the self-discipline to take the tax savings and invest them for retirement

You may want to consider Roth contributions if:

• You want your retirement savings to be tax free when withdrawn (subject to IRS conditions)

• You think your tax rates will be higher when you retire than they are today

• Your personal tax situation limits the benefits of pretax contributions today (your income is low or you have high tax deductions or credits)

• You plan to leave the money in the plan until you retire

• You are younger and have a long time to accumulate earnings on your contributions (compounding earnings will have a greater impact on the amount distributed tax free)

• You are not eligible for a Roth IRA due to income limitations

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Convenient Customer Service Options

Interactive Voice Response (IVR) System• 1-888-917-7191

Speak with a Retirement Specialist• Call IVR System• Press 0• 7:00 a.m. – 7:00 p.m. (CST)• Monday - Friday

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Quick Access

Web site: GetRetirementRight.com/URL• Account balance information• Investment election changes• Deferral percentage changes• Transfers among current funds• Sample loan modeling• Loan requests• Statements on demand• Fund performance information• Distribution requests • Retirement planning tools• Wireless application protocol

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Education and Planning ToolsSmartPlan EnterpriseSM

Go to Getretirementright.com/smartplan/URL

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Remember

• Start saving early• Contribute regularly• Choose investments that meet your unique needs• Online and telephone support is always available

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Questions?

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All graphs and charts are for illustration purposes only and do not represent actual performance of specific investments. Your investment results will differ.

Unless noted, illustrations assume 6 percent growth per year with money deposited at the beginning of the month.

Figures have been reduced based on a tax rate of 27.5 percent.

Taxes must be paid when funds are withdrawn.

This presenter does not offer investment advice, legal advice, tax advice or tax opinions. Consult with your investment, legal or tax professional before taking any action based on this information.

Past performance is no guarantee of future results.

Investment options are offered through a group variable annuity contract (Forms [902-GAQC-09, 903-GAQC-14, 903-GAQC-14 FL, 903-GAQC-14 MN, 903-GAQC-14 OR, 903-GAQC-14 TX], or state equivalent) underwritten by United of Omaha Life Insurance Company for contracts issued in all states except New York. United of Omaha Life Insurance Company, Omaha, NE 68175 is licensed nationwide except in New York. Companion Life Insurance Company, Hauppauge, NY 11788 is licensed in New York and underwrites the group variable annuity [(Form 900-GAQC-07(NY))]. Each company accepts full responsibility for each of their respective contractual obligations under the contract but does not guarantee any contributions or investment returns except as to the Guaranteed Account and the Lifetime Guaranteed Income Account as provided under the contract. Specific features of the Lifetime Guaranteed Income Account vary by state. Restrictions apply. The Lifetime Guaranteed Income Account is not available in Nevada or New York. Neither United of Omaha Life Insurance Company, Companion Life Insurance Company, nor their representatives or affiliates offers investment advice in connection with the contract.

Group variable annuities are long-term investment vehicles designed to accumulate money on a tax-deferred basis for retirement purposes. Distributions may be subject to ordinary income tax and, if taken prior to age 59½, a 10 percent federal tax penalty may apply. Investing in a group variable annuity involves risk, including possible loss of principal.

Mutual Directions: The performance of the portfolios is dependent on the performance of their underlying funds, and will assume the risks associated with these funds. The risks will vary according to each portfolio's asset allocation, and the risk level assigned to each portfolio is intended to reflect the relative short-term price volatility among the funds in each. Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results. Diversification does not ensure a profit or protect against loss in a declining market.

Investments in target date funds are subject to the risks of their underlying funds. The year in the fund name refers to the approximate year (the target date) when an investor in the fund would retire and leave the work force. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. A target date fund is not guaranteed at any time, including on or after the target date.

Important Information

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GlidePath/Vangaard Target: The year in the target date fund name refers to the approximate year when an investor in the fund would retire and leave the work force. The fund will gradually shift its emphasis from more aggressive investments to more conservative investments based on the target date. The equity allocation of the Vanguard Target Retirement Funds is relatively more conservative closer to and at retirement while the retirement strategy of the Mutual GlidePath funds translates into an equity allocation that is somewhat more aggressive in order to protect against longevity risk. Vanguard's glide path converts to the Vanguard Target Retirement Income Fund, with a static asset allocation, following the seventh year of reaching the named target date. The Mutual GlidePath funds' underlying investment allocations continue adjusting along the glide path for approximately twenty years beyond the named target date. The return of principal for the underlying funds in a target date fund is not guaranteed at any time, including on or after the target date. Although the target date funds are managed for investors on a projected retirement date time frame, the fund's allocation strategy does not guarantee that investors' retirement goals will be met and a target date fund should not be invested in based solely on age or retirement date. Unit price, principal value and return will vary and an investor may have a gain or loss when units are sold.

Roth contributions are not available to be withdrawn as a loan, even if your plan permits plan loans.

Prior to selecting investment options for your retirement account, you should consider the investment objectives, risks, fees and expenses of each option carefully. For this and other important information, you should review your enrollment materials or the participant website. Read this information carefully.

Important Information

® 1 afn32287_1007 afn32287_1214 plan for retirement

Documents

retirement slide

plan slide

retirement plan

week of slide

percent of income

percent rate of inflation

annual rate of inflation

plan highlights section