106748NLB 10/04/10

Winning in the “Second Half ”

“Setting a goal is not the main thing. It is deciding how you will go about achieving it and staying with that plan.”

– TOM LANDRYDallas Cowboys coach, 1960–1988

[ 1.1 ]

106748NLB 10/04/10[ 2 ]

Primary Concerns

Source: AgeWave/Harris Interactive Survey, 2010

[ 2.1 ]

45%38%

17%

Medical expensesnot covered by

insurance

Outliving savings,lack of social

security and pension

Lack of personalsavings

When you think about your financial security during retirement, which of the following are you most worried about?

How will I handle unexpected medical expenses?

Will I have enough income to sustain my lifestyle in the future?

People are living longer

Average life expectancies continue to improve

Source: Population Reference Bureau, 2009 World Population Data Sheet, 2009.

[ 2.2 ]

years

2233

4768

78

Roman Empire Middle Ages 1900 1950 2009 (U.S.)

Years

106748NLB 10/04/10[ 4 ]

Extended healthcare is a reality

1 Source: U.S. Department of Health and Human Services National Clearinghouse for Long Term Care Information website, May 20102 Source: Genworth Financial Claims Data, December 20093 Source: National Institute on Aging, National Institute of Health, 2/09

3.8years 2

Average length of majority of long term care claims

4-7years 3

Average life expectancy after

Alzheimer's diagnosis after age 70

2 3people 1

out of

People over 65 who will require

long term care

[ 4.1 ]

Extended healthcare is expensive today…

In-home care:

Source: Genworth 2010 Cost of Care Survey, conducted by CareScout ®, April 2010. Based on national median costs

$43,472

$38,220

$75,190

Assisted living:

Nursing home:

Cost of care for one year in the United States

[ 4.2 ]

(44 hours/week)

(private room)

$90,375

$79,457

$156,315

Future cost of care for one year in the United States*

...and even more expensive 15 years from now

[ 4.3 ]

In-home care:

Assisted living:

Nursing home:

(44 hours/week)

$43,472

$38,220

$75,190Source: Genworth 2010 Cost of Care Survey, conducted by CareScout ®, April 2010. Based on national median costs.* Estimates how much care might cost based on 5% annual inflation.

(private room)

Your options

Avoid Risk 2 3

people

out of

People over 65 who will require long term care

[ 4.4 ]

AVOID ASSUME TRANSFER

Your options

Property ManagedMoney

Money Market

Stocks

Bonds

Assume

Risk[ 4.5 ]

AVOID ASSUME TRANSFER

Can your portfolio sustain unexpected expenses?

[ 4.6 ]

AVOID ASSUME TRANSFER

Assumptions:-$2M portfolio at beginning of retirement-$100,000 (5%) withdrawn annually, increased by 3% annually for inflation-Poor market performance early in retirement-Market performance shown is reverse order of S&P 500 returns from 2009 - 1979

This graph is hypothetical for illustrative purposes only and does not represent past or future performance of any investment.

This example does not include investment expenses or taxes on money received, which would reduce the amount of money received each year. Withdrawals may be subject to taxes and/or penalty fees imposed by certain investments.

[ 4.6 ]

Retirement account value

Retire with a $2 million

portfolio

After 30 years, you have $1.9

million

$3,000,000

$2,000,000

$1,000,000

$01 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

$2M retirement account, with hypothetical market performance over a 30 year span, $100k withdrawn annually

Market provides average 5% annual

returns over a 30 year period except for years

4 through 7, when returns fell to 2%

$3,000,000

$2,000,000

$1,000,000

$01 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Retire with a $2 million

portfolio

Can your portfolio sustain unexpected expenses?

[ 4.7 ]

AVOID ASSUME TRANSFER

Assumptions:-$2M portfolio at beginning of retirement-$100,000 (5%) withdrawn annually, increased by 3% annually for inflation-Poor market performance early in retirement-Market performance shown is reverse order of S&P 500 returns from 2009 - 1979

This graph is hypothetical for illustrative purposes only and does not represent past or future performance of any investment.

This example does not include investment expenses or taxes on money received, which would reduce the amount of money received each year. Withdrawals may be subject to taxes and/or penalty fees imposed by certain investments.

$2M retirement account, with hypothetical market performance over a 30 year span, $100k withdrawn annually

Year 1: 44 hours/week of home care $90,375Year 2: 88 hours/week of home care $189,788Year 3: 24-hour/day home care $380,438Year 4: Private room in nursing home: $180,954For a total cost of $841,000

Major illness in Year 15 requires 4 years of

extended care

Retirement account is unable to recover from extended care costs and is depleted

Your options

Traditional Long Term Care Insurance

A percentage of your portfolio can pay premium

Business owners can deduct premiums

Transfer

Risk[ 4.8 ]

AVOID ASSUME TRANSFER

Planning now can help you win in the second half

What’s your written strategy?

How will the costs of extended care impact your portfolio and your family?

Have the conversation

1

2

[ 4.9 ]

Talk with your financial professional about strategies for long term care

[ 5.10 ]

Insurance underwritten by Genworth Life Insurance Company, and in New York, Genworth Life Insurance Company of New York. Administrative offices: Richmond VA

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