Your Number. Every person has one.
Not FDIC/NCUA Insured Not A Deposit Of A Bank Not Bank Guaranteed
May Lose Value Not Insured By Any Federal Government Agency
ANNUITIES
Your future. Made easier.SM
Know Your Number
Your Number. Every person has one. It’s the amount of money you’ll need
to have saved to retire the way you want. Most people don’t know their
number. Many don’t know how to get their number. And once reached,
some don’t know what to do with it.
Determining Your Number may seem daunting. But, with the help of a
financial professional, it’s easier than you think.
Your Number is based on several factors, including:
• Current age
• Retirement savings
• When you want to retire
• Retirement expenses
• Annual income
• Inflation
Entering these factors into a retirement calculator, such as the one found
on www.INGyournumber.com, can help you determine Your Number.
Keep in mind, Your Number can be flexible.
How? By deferring retirement a few years, not only do you shorten the
number of years during which you need income, but you lengthen the
number of years your money is invested and could potentially continue
to grow.
44% of workers who did this
calculation changed their
retirement planning as a result.
Source: Employee Benefit Research Institute, 2008 Retirement Confidence Survey
Only 47% of workers
report they and/or
their spouse have
tried to calculate
how much money
they will need to
live comfortably
in retirement.
Source: Employee Benefit Research Institute,
2008 Retirement Confidence Survey
Get to Your Number
If your personal savings
fall shy of Your Number,
remember, you are not alone.
Only 18% of workers say they
are very confident in having
enough money to live
comfortably in retirement.
Source: Employee Benefit Research Institute,
2008 Retirement Confidence Survey.
There are two important steps to reach Your Number: saving and investing.
Whether you are near, far or already in retirement, investing your savings
is key.
Saving: A reduction or lessening of expenditure or outlay
The first step is to consider maximizing your contributions to tax-advantaged
investment vehicles:
• Employee-sponsored retirement plans, such as 401(k) and 403(b) plans
• Traditional and Roth IRAs
• Annuities
IRAs and 401(k) plans are tax-advantaged vehicles designed to help you save
and invest for retirement. However, not everyone can contribute to an IRA due
to income restrictions and both of these options have contribution limits set by
the federal government.
Investing: To commit money or capital in order to
gain a financial return
Stocks generally provide investors with the best growth potential over the
long run. If $1 had been invested in large capitalization stocks over the last
82 years, that $1 would have been worth $2,049 by the end of 2008.
Stocks, Bonds, Bills and Inflation: 1926-2008
15%
11.7%
12%
Compound Annual Return %
You know Your Number,
now you need a strategy
to help you get there.
9.6%
9%
5.7%
6%
3.0%
3.7%
3%
Inflation
Treasury bills
Government
bonds
Large stocks
Small stocks
0
Past performance is no guarantee of future results. Hypothetical value of $1
invested at the beginning of 1926. Assumes reinvestment of income and no
transaction costs or taxes. This is for illustrative purposes only and not
indicative of any investment. An investment cannot be made directly in an index.
© 2009 Morningstar,
Inc. All rights reserved. 3/1/2009
Inflation
Government bonds and Treasury bills are guaranteed by the full faith and credit of the United States government as
to the timely payment of principal and interest, while stocks are not guaranteed and have been more volatile than
the other asset classes. Furthermore, small company stocks are more volatile than large company stocks, are subject
to significant price fluctuations and business risks, and are thinly traded. Generally the higher the potential return,
the greater the risk.
The compound annual returns of small stocks, large stocks, government bonds, Treasury bills and inflation are charted
here. The compound rate of return represents the cumulative effect that each series of gains or losses has on an original
$1 invested from 1926 through 2008.
2
Protect Your Number
3
Your Number is valuable.
And while investing in stocks
for the long term is a great
way to get to Your Number,
market volatility can threaten
its safety.
There are several ways to protect Your Number from market risk. You could
take it out of the market altogether. Savings accounts, CDs—and even your
mattress—will protect your money from downward slides in the stock market.
But a move like that limits (or eliminates) your upside potential and you
may not even keep up with inflation. This means your money will buy less
in retirement than it does today.
Protection from Volatility and Inflation
How can you protect Your Number from stock market volatility and
inflation? Luckily, there’s a long-term investment designed for retirement
purposes that offers downside protection while you invest in the stock
market. We’re talking about a variable annuity, which allows you to
allocate your premiums among a range of fixed and variable investment
options. These investment options can allow Your Number to grow
tax-deferred until an income stream begins.
How does a variable annuity protect Your Number?
• Investing in stocks gives you the opportunity to outperform inflation,
protecting your future buying power.
• Optional living benefits can be added to your contract to protect
your future retirement income from current market fluctuations.
• Death benefits are available to protect the value your contract for
your beneficiaries.
Living benefits and enhanced death benefits are available for an additional cost.
A word on variable annuities:
You should consider the investment
objectives, risks and charges, and
expenses of the variable annuity
and its underlying variable annuity
investment options carefully before
investing. The prospectus for the
variable annuity and underlying
variable annuity investment
options contain this and other
information. You may obtain free
prospectuses by calling your
financial advisor or 800-366-0066.
Read the prospectus carefully
before investing.
A variable annuity is a long-term investment designed for retirement planning.
It is a contract between you and an insurance company, under which the
insurer agrees to make periodic payments to you. Variable annuities offer the
opportunity to allocate premiums among fixed and variable investment options
that have the potential to grow income tax-deferred, until an income stream
begins either immediately or at a future date. This income may be the return of
your premium or principal and is guaranteed by the issuing insurance company
for a specified period of time or for the life of the annuitant. Withdrawals
of investment earnings will be subject to ordinary income tax and, if taken
prior to age 591⁄2, a 10% IRS penalty tax may apply. Variable Annuities offer
death benefits that provide protection for your beneficiary and optional
living benefits, available for an additional cost, that provide protection for
the contract owner. IRAs and other qualified plans already offer tax deferral
like a variable annuity. That's why you should buy a qualified annuity
contract only if you are interested in the added living and death benefit
protection available.
Annuity products are based on the financial strength and claims paying ability for ING USA Annuity and Life Insurance Company,
who is solely responsible for all obligations under its policies.
All withdrawals reduce the death benefit and may reduce the value of any optional benefits.
4
Live off Your Number
You know how to grow and protect Your
Number. But ultimately, you need to live off it.
You need to find out how much income you
will need to live comfortably in retirement.
What portion of Your Number do you need to
guarantee so that you never run out of money?
Income for life
Investing in a variable annuity will help you turn your
retirement savings into a stream of income that is
guaranteed to last for life, no matter what happens
in the market. Variable annuities do this with living
benefits—guarantees for turning retirement assets into
income. These living benefits are optional riders available
for an additional cost. The following steps will help you
figure out how much guaranteed income you will need.
• Figure out your monthly income needs. Use Column
1 in the worksheet to determine how much monthly
income is needed to pay your expenses in retirement.
• Column 2 helps you figure out how much monthly
income you will receive from Social Security and
pensions. The difference is your monthly income gap.
• Multiply your monthly income gap by 12 to find out
how much of your own money you will need
annually during retirement.
• Identify your existing assets in Column 3 of the
worksheet. This is what you have available to
convert to retirement income.
Now you know how much income you need to guarantee.
So, how do you use Your Number, or part of Your
Number, to cover your income gap and last for life?
* Guaranteed income sources
are subject to the financial
strength and
claims paying ability of the
respective entity. Please see
important
disclosures on the reverse side
.
5
6
An ING variable annuity with ING
7
LifePay Plus
ING LifePay Plus minimum
guaranteed withdrawal
benefit1 can provide a flexible
alternative for income in
retirement. It can help you
reach Your Number and
turn it into income that
lasts for life.
Now that you know the size of your income gap, ING Annuities2 has a way to
fill it. When you add ING LifePay Plus to your contract, you guarantee a certain
amount of annual income for the rest of your life. You also position yourself
to capture gains during up markets and protect yourself in declining markets.
Here's how it works:
Your initial guaranteed withdrawal base equals all premiums paid before
the first withdrawal.3 The guaranteed withdrawal base determines the
amount of your guaranteed lifetime income.
Maximize Your Income Potential
Capture Gains in an Up Market
On each contract anniversary, if your contract value is higher than the
current guaranteed withdrawal base, the Annual Ratchet locks in this
amount as your new guaranteed withdrawal base3. This is referred to
as the Annual Ratchet.
Protect Yourself in a Down Market
For each of the first 10 complete contract years after the rider is issued, you
will have the opportunity to outperform the Annual Ratchet. On the contract
anniversary of any year that you did not take a withdrawal, ING will look back
to the guaranteed withdrawal base on the previous contract anniversary and
increase it by 6% of the initial guaranteed withdrawal base, or the guaranteed
withdrawal base on the most recent Annual Ratchet, reduced for excess
withdrawals and increased for additional premiums. Whenever that amount
is greater than your contract value or the Annual Ratchet, it will become the
new guaranteed withdrawal base. This is called the 6% Step-Up.
When you begin taking withdrawals, you receive a certain percentage of
your benefit base (percentage determined by your age at first withdrawal)
annually for the rest of your life.
1
Optional benefits and riders are available for an additional cost.
ING Annuities is the marketing name for ING USA Annuity and Life Insurance Company.
3 On products offering a bonus, the premium credits will be excluded from the withdrawal base for a period of 36 months.
The opportunity for a 6% Step-Up is available in the first 10 contract years only. In order to receive lifetime income the first
withdrawal must occur on or after age 591⁄2. If withdrawals taken prior to age 591⁄2 reduce your contract to $0, you will not be
eligible for lifetime withdrawals.
2
8
We’re ING, and when it
comes to Your Number,
we can make it easier.
• Visit www.INGyournumber.com to try our retirement
income calculator
• Contact our customer service center at 800-366-0066
• Talk to your financial professional about an ING variable
annuity with ING LifePay Plus
9
Client Services
Our friendly Customer Service
staff is ready to help you.
You will receive quarterly
statements, confirmations
of every financial transaction,
and access to 24-hour,
automated, telephone
customer service.
ING Annuities
Customer Service
800-366-0066
ING USA Annuity and
Life Insurance Company
909 Locust Street
Des Moines, IA 50309
www.ing.com/us
You should consider the investment
objectives, risks and charges, and
expenses of the variable annuity
and its underlying investment
options carefully before investing.
The prospectuses for the variable
annuity and underlying investment
options contain this and other
information. You may obtain free
prospectuses by calling your financial
professional or 800-366-0066. Please
read the prospectuses carefully
before investing.
All guarantees are based on the financial strength and claims
paying ability of the issuing Insurance Company, who is solely
responsible for all obligations under its policies.
Variable annuities are issued by ING USA Annuity and Life
Insurance Company (Des Moines, IA) and distributed by
Directed Services LLC (West Chester, PA). Both companies
are members of the ING family of companies.
This material was written to support the promotion or
marketing of the transaction or matters addressed herein.
It was not intended or written to be used, and it cannot be
used by any taxpayer, for the purpose of avoiding penalties
that may be imposed on the taxpayer under the U.S. federal
tax laws. Each taxpayer should seek advice based on the
taxpayer’s particular circumstances from an independent
tax advisor.
Variable annuities are long-term investments designed for
retirement planning. They are a contract between you and an
insurance company, under which the insurer agrees to make
periodic payments to you. Additionally, variable annuities
offer the opportunity to allocate premiums among fixed and
variable investment options that have the potential to grow
income tax-deferred, until an income stream begins either
immediately or at a future date. This income may be the
return of your premium or principal and is guaranteed by the
issuing insurance company for a specified period of time or
for the life of the annuitant. Withdrawals of investment
earnings will be subject to ordinary income tax and, if taken
prior to age 591⁄2, a 10% IRS penalty tax may apply. Variable
Annuities offer death benefits that provide protection for your
beneficiary and optional living benefits, available for an
additional cost, that provide protection for the contract
owner. Variable insurance products are subject to
investment risk, are not guaranteed and will fluctuate in
value. In addition, there is no guarantee that any variable
investment option will meet its stated objective.
All withdrawals reduce the death benefit and may reduce the
value of any optional benefits. Early withdrawals and other
distributions of taxable amounts may be subject to ordinary
income tax, a surrender charge, and if taken prior to age
59 1⁄2, a 10% federal tax penalty may apply. Withdrawals from
the Fixed Account also may be subject to an MVA. See the
prospectus for details. Account values fluctuate with market
conditions, and when surrendered the principal may be worth
more or less than the original amount invested. IRAs and
other qualified plans already provide tax deferral like that
provided by the annuity. For an additional cost, the annuity
provides additional features and benefits, including death
benefits and the ability to receive a lifetime income. If other
options are available, you should not purchase a qualified
annuity unless you want these additional features and
benefits, taking into account their cost.
Benefit rider forms: IU-RA-3061and IU-RA-3062 07-4331A
© 2009 ING North America Insurance Corporation
cn62662042010
ING, A Global Leader In Financial Services
ING USA Annuity and Life Insurance Company is a subsidiary of ING Groep N.V. (ING), a leading
international financial services organization with roots dating back to 1845. Today, ING has an
impressive global position:
• Provides financial services to more than 75 million private, corporate and institutional clients.
• Employs more than 124,600 people in more than 50 countries.
• Has $770 billion in assets under management as of December 31, 2008.
• Ranks 9th in the 2008 Forbes Global 2000 as measured by a composite ranking of sales, profits,
assets and market value.
• Ranks 7th in the 2008 FORTUNE Global 500 as measured by revenue.
The assets of ING have no impact on ING USA Annuity and Life Insurance Company's ability to meet its
obligations or upon the performance of its products. Insurance product obligations are the sole responsibility
of ING USA Annuity and Life Insurance Company.
153146 05/01/2009