RETIREMENTYOUR MONEY

www.myAbaris.com @myAbaris

Let’s have an honest conversation,

About aging, the retirement income market, and what it means for your money.

RIGHT NOW!

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PEOPLE ARE LIVING A LOT LONGER than ever before.

Average 65 year old lives to or is expected to live to

7883 85

88

BORN IN

MALES

AGE

1900 1950 2000 2050

FEMALES

BORN IN

AGE

1900 1950 2000 2050

8385

88 90

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BUT RETIREMENT AGES HAVE STAYED MOSTLY THE SAME, meaning people are spending more of life without a paycheck from work.

TYPICAL RETIREMENT AGE

1940 65

2014 66

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SOCIAL SECURITY covers some of the gap, but it has two major issues.

When Social Security reserves are expected to run out.

Median amount of Social Security payments relative to someone’s preretirement income.

UNDERFUNDING FOR MOST, IT ONLY REPLACES A SMALL PORTION OF INCOME LOST

2033 42%1 2

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AND PENSIONS ARE GREAT! That’s assuming you’re one of the lucky few to still have one.

1980 1990 2000 2010

PERCENTAGE OF AMERICAN WORKERS COVERED BY PENSION PLANS100

80

60

40

20

Pension plans have become increasingly rare over the last generation.

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TOTAL ASSETS IN IRAs AND 401(k)s

YEAR

ASSETS

1995 2000 2005 2010

35.5

79.3

The huge growth of 401(k) balances means more assets for Americans to draw in the future.

In trillions of dollars

SO WHERE DOES THIS LEAVE US? More reliance on Defined Contribution plans like 401(k)s and IRAs in the future.

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DEFINED CONTRIBUTION PLANS HAVE A LOT GOING FOR THEM.

TAX DEFERRALWith compounding, means your money grows much faster before you pay a dollar of taxes.

PORTABILITYEasy to take from one employer to another or roll your 401(k) to an IRA.

INVESTMENT FLEXIBILITYLots of options about how to invest your money and more are appearing every day.

MANY OTHERS

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But one thing defined contribution plans don’t automatically do is provide you with LIFETIME INCOME...

SOCIAL SECURITY

0001

PENSIONS 401(k) PORTFOLIO OFSTOCKS AND BONDS

Paycheck for life

0001Made out to: You

Memo Line: Monthly Signed: U.S. Government

0001Made out to: You

Memo Line: Monthly Signed: Former Employer

Paycheck for life Most people withdraw money as they need it and hope it lasts

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This is where the concept of longevity risk and annuities comes into play.

LONGEVITY RISKlon·gev·i·ty risk (noun): chance you live a lot longer than you expect.

ANNUITYan·nu·i·ty (noun): a fixed sum of money paid to someone each year, usually for life.

PROBLEM: ONE SOLUTION:

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THINK OF YOUR FUTURE SELF. You’re 65 years old and you just retired.

Let’s say you have $900,000 in retirement savings. How much should you live off of that first year?

The single biggest question that will inform this decision is...

HOW LONG DOES YOUR MONEY NEED TO LAST FOR?

$30,000? ? ?

? ? ?$94,000

$42,000

$120,000

$70,000

$150,000

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85

$1M $1M

750K SAVINGS SPEND DOWN

SAVINGS SPEND DOWN

750K

FOR LIFE

ANNUITY KICKS IN AT AGE 80

500K 500K

250K 250K

0 065 6570 7075 7580 90 80 85 90

NO DEFERRED INCOME ANNUITY DEFERRED INCOME ANNUITY STARTING AT AGE 80

And that depends on HOW YOU’VE ALLOCATED YOUR PORTFOLIO.

Strategy: Betting you don’t live too long. Strategy: Try to live a long and healthy life knowing you’ve protected yourself if you do.

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VSPrepare for the possibility that you’ll live a long time.

These two strategies have very different outcomes in terms of your PEACE OF MIND.

STRATEGY STRATEGY

Bet against living a long time.

RESULT: OUTLIVE YOUR MONEY OR AT LEAST WORRY A LOT THAT YOU WILL.

RESULT: CREATE FINANCIAL AND PERSONAL PEACE OF MIND.

WHICH DO YOU CHOOSE?

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The insurance company pools risk and is able to use the markets to protect itself in ways you can’t on your own.

A DEFERRED INCOME ANNUITY is simply insurance against longevity.

A lot of the value of a Deferred Income Annuity comes from the Peace of Mind you get.

In most cases, your financial return won’t be as good as in stocks or bonds.

That’s because you’re paying to protect yourself against the occurance of an event (in this case living a really long time).

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But just because a Deferred Income Annuity is insurance, it doesn’t mean you shouldn’t BE A HAWK ABOUT GETTING THE BEST ANNUITY FOR YOU AT THE BEST PRICE.

BE AN INFORMED CONSUMER. Since you’re reading this, you’re probably well on your way.

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FIND THE SIMPLEST, LOWEST FEE ANNUITIES. They’re the ones that are right for most people.

2

Make sure you COMPARE ALL PRODUCTS IN THE MARKET using a platform like Abaris.

3

No matter where you purchase an annuity, GET A 2ND OR 3RD OPINION before making a final decision.

4

KNOW HOW MUCH THE PERSON SELLING YOU THE ANNUITY IS GETTING PAID for the sale.

5

FOLL

OW

TH

ESE

STEP

S

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But just like every financial product, DEFERRED INCOME ANNUITIES ARE NOT FOR EVERYONE.

You are too young to purchase one (generally less than 45 years old).

You haven’t saved enough for retirement and need to keep the money you do have for emergencies.

You’re wealthy and can basically self-insure by living off your investment income.

You are in below average health.

You are looking to pass on money to your heirs.

SOME REASONS THEY MIGHT NOT BE RIGHT

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So ...

You have convinced me of the need to protect myself against longevity,

NOW GIVE ME A PLAN!17

ACTION PLANIf you’re under 45 years old:

SAVE!

Take risks in the equity market. In the long-run, stocks have historically hadhigher returns.

Avoid anything that has high fees or you don’t understand.

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ACTION PLANIf you’re age is 45-64:

KEEP SAVING! These are your prime earning years. They should also be your prime saving years.

Now is the best time to lock in guaranteed lifetime income. If you don’t have a pension and don’t expect Social Security to cover all of your expenses, think about a Deferred Income Annuity.

Keeping most of your portfolio in the stock market often is sound advice, but ask your advisor what to do based on your specific situation.

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ACTION PLANIf you’re 65 or older:

You should now have a good handle on your expenses. Consider buying an annuity that will cover those expenses if you live past 80 or 85.

For the portion of your portfolio that you don’t annuitize, make sure you have a plan for how quickly you plan to spend it down.

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Annuities are insurance, not an investment.

At Abaris, we are on a mission to change the conversation around annuities and longevity.

OUR CORE BELIEFS

You need lifetime income and most people need more than Social Security alone provides.

We’ll work tirelessly to make the annuity market simpler and more transparent, so it works better for you.

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If you’d like personalized advice on whether an annuity might be right for you

We’re always excited to hear from you, REALLY!

JUST CONTACT OUR TEAM

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END NOTESSlide 3: Source: Social Security Administration Life Tables. Available at ssa.gov.

Slide 4: Sources: Social Security Administration and 2010 U.S. Census. Note: Retirement based on when Social Security benefits start for someone entering retirement that year.

Slide 5: Source: 2014 Trustee’s Report. Available at ssa.gov. (left)Center for Retirement Research (Munnell and Soto, 2005). (right)

Slide 6: Percentage of Employees Participating a in Employee Benefit Programs: Medium and Large Private Establishments Sources: EBRI Data book based on data from U.S. Department of Labor, Bureau of Labor Statistics, Employee Benefits in Medium and Large Firms, 1980 and 1985 (Washington, DC: U.S. Government Printing Office, 1981 and 1986); Employee Benefits in Medium and Large Private Establishments, 1991, 1993, 1995, and 1997 (Washington, DC: U.S. Government Printing Office, 1993, 1995, 1997, and 1999); National Compensation Survey: Employee Benefits in Private Industry in the United States, 2000 Supplementary Tables (Washington, DC: Bureau of Labor Statistics, 2003); National Compensation Survey: Employee Benefits in the United States, Summary, March 2003-March 2007 (Washington, DC: Bureau of Labor Statistics, 2003-2007). U.S. Department of Labor, Bureau of Labor Statistics, National Compensation Survey: Employee Benefits in the United States, Summary, March, 2008-March 2010 (Washington, DC: Bureau of Labor Statistics, 2008-2010). Includes workers covered but not yet participating due to minimum service requirements. Does not include workers offered but not electing contributory benefits. The Bureau of Labor Statistics’ (BLS) survey scope was expanded significantly in 1988 to include private, nonfarm establishments employing 100 or more workers. The former survey coverage, which previously included full-time employees in establishments with 50, 100, or 250 workers, depending on industry, was the only data captured prior to 1988. The expanded survey coverage, which in 1988 and after includes full-time employees in private, nonfarm establishments employing 100 or more workers in the District of Columbia and all states except Alaska and Hawaii, is referred to as Scope B. In order to permit comparisons of 1988 findings with those of prior years, BLS also tabulated selected 1988 survey responses for old scope establishments. In 1991 and following years, the survey includes establishments in Alaska and Hawaii. For the purpose of comparison data for the Scope A period has been rebased based on the ratio of Scope B to Scope in 1988 (when both surveys were conducted). In 2000, BLS greatly expanded the survey combining the medium and large with the small establishment surveys. This is referred to as Scope C. The data in Scope C is representative of combined full-time and part-time employees in private industry.

Slide 7: Source: Investment Company Institute. Available at icifactbook.org.23

DISCLAIMERThe information contained in this presentation, is provided for general informational purposes as a convenience to Abaris Financial Inc. customers and Internet users and is based upon information generally available to the public from sources believed to be reliable. Although we believe the information provided herein is reliable, we have not verified this information and we do not guarantee its accuracy, completeness, timeliness or availability. Any examples shown in this presentation are purely hypothetical and have been included for demonstrational purposes only. This information is subject to change without notice. This information is not a substitute for obtaining advice from a qualified professional. Therefore, you should not rely solely upon this information in making any decision. This information is not and does not constitute an offer to sell or a solicitation of an offer to buy any security, service or product.

Abaris Financial Inc., Philadelphia, PA is neither a registered broker-dealer nor a registered investment adviser. Nothing in this presentation, including links to other material, is intended as legal or tax advice. Abaris Financial Inc.’s Licensed Producers do not give legal or tax advice. Taxpayers should seek advice based on their particular circumstances from an independent tax advisor.

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