rep name registered representative date job dislocation: managing the financial impact of unexpected...

Rep NameRegistered RepresentativeDate

Job Dislocation:

Managing the Financial Impact of Unexpected Job Loss

C09-0420-045 (05/09)

Retirement - Insurance - Investments 2

Important Information

Insurance products, annuities and retirement plan funding issued by (third party administrative services may also be provided by) ING Life Insurance and Annuity Company ( Windsor, CT). Securities are distributed by ING Financial Advisers, LLC (member SIPC), Windsor, CT or through other broker/dealers with which it has selling agreements. Annuities may also be issued by ReliaStar Life Insurance Company (Minneapolis, MN) and ReliaStar Life Insurance Company of New York (Woodbury, NY). Variable annuities issued by ReliaStar Life Insurance Company are distributed by ING Financial Advisers, LLC. Variable annuities issued by ING USA Annuity and Life Insurance Company and ReliaStar Life Insurance Company of New York are distributed by Directed Service, LLC. Only ING Life Insurance Annuity Company and ReliaStar Life Insurance Company of New York are admitted and issue products in the state of New York. All companies are members of the ING Family of companies.

© 2009 ING North America Insurance Corporation.



Insurance products, annuities and retirement plan funding issued by (third party administrative services may also be provided by) ING Life Insurance and Annuity Company ( Windsor, CT). Securities are distributed by ING Financial Advisers, LLC (member SIPC), Windsor, CT or through other broker/dealers with which it has selling agreements. Annuities may also be issued by ING USA Annuity and Life Insurance Company (Des Moines, IA) and are distributed by Directed Services, LLC. All companies are members of the ING Family of companies.




Securities and [financial planning] offered through ING Financial Advisers, LLC (member SIPC), One Orange Way, Windsor, CT, 06095-4774.




Recordkeeping and Plan administrative services provided by ING Institutional Plan Services, LLC.




Framewor(k) and (k)Choice Recordkeeping and Plan administrative services provided by ING Institutional Plan Services, LLC. Mutual funds offered through ING Financial Advisers, LLC (member SIPC).



Important Information (continued)

Variable annuities, group annuities or funding agreements are long-term investments designed for retirement purposes. If withdrawals are taken prior to age 50 1/2, an IRA 10% premature distribution penalty tax may apply. Money taken from the annuity will be taxed as ordinary income in the year the money is distributed. An annuity does not provide any additional tax deferral benefit, as tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you.

Variable investments, of any kind, are not guaranteed and are subject to investment risk including the possible loss of principal. The investment return and principal value of the security will fluctuate so that when redeemed, it may be worth more of less than the original investment. In addition, there is no guarantee that any variable investment option will meet its stated objective.

For 403(b)(1) annuities, the Internal Revenue Code (IRC) generally prohibits withdrawals of 403(b) salary reduction contributions and earnings on such contributions prior to death, disability and age 50 ½, severance of employment, or financial hardship. Amounts held in a 403(b)(1) annuity as of 12/31/1988 are “grandfathered” and are not subject to these restrictions. For 403(b)(7) custodial accounts, the IRC generally prohibits withdrawals of any contributions and attributable earnings prior to death, disability, age 59 ½, severance of employment, or financial hardship. For both 403(b)(1) annuities and 403(b)(7) custodial accounts, the amount available for hardship is limited to the lesser of the amount necessary to relieve the hardship, or the account value as of 12/31/1988, plus the amount of any salary reduction contributions made after 12/31/1988 (exclusive of any earnings).

You should consider the investment objectives, risk, and charges and expenses of the investment options carefully before investing. Fund prospectuses contain this and other information and can be obtained by contacting your local ING representative. Please read carefully before investing.



Variable annuities, group annuities or funding agreements are long-term investments designed for retirement purposes. If withdrawals are taken prior to age 50 1/2, an IRA 10% premature distribution penalty tax may apply. Money taken from the annuity will be taxed as ordinary income in the year the money is distributed. An annuity does not provide any additional tax deferral benefit, as tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you.

Variable investments, of any kind, are not guaranteed and are subject to investment risk including the possible loss of principal. The investment return and principal value of the security will fluctuate so that when redeemed, it may be worth more of less than the original investment. In addition, there is no guarantee that any variable investment option will meet its stated objective.

For 403(b)(1) annuities, the Internal Revenue Code (IRC) generally prohibits withdrawals of 403(b) salary reduction contributions and earnings on such contributions prior to death, disability and age 50 ½, severance of employment, or financial hardship. Amounts held in a 403(b)(1) annuity as of 12/31/1988 are “grandfathered” and are not subject to these restrictions. For 403(b)(7) custodial accounts, the IRC generally prohibits withdrawals of any contributions and attributable earnings prior to death, disability, age 59 ½, severance of employment, or financial hardship. For both 403(b)(1) annuities and 403(b)(7) custodial accounts, the amount available for hardship is limited to the lesser of the amount necessary to relieve the hardship, or the account value as of 12/31/1988, plus the amount of any salary reduction contributions made after 12/31/1988 (exclusive of any earnings).

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.




This presentation/seminar contains information regarding insurance products for sale.


Agenda

• Departing ways

• Severance package checklist

• Questions to ask about your company’s benefit plans

• What to do with your retirement plan

• Protect yourself when it comes to financial advice

• Keep your finances on track during unemployment

• Tackling your job search


Know Your Options

• When is your last day?

• What’s included in your severance package?

• Are actions or special conditions required on your part to qualify for your package?

• Do you need an advisor?


Package Checklist

• Severance income or bonus

• Incentive pay

• Stay pay

• Unemployment benefits

• Vacation/PTO pay

• Early retirement benefits

• Health insurance


Package Checklist

• Life, disability and accident insurance

• Tuition reimbursement

• Credit union

• Outplacement counseling

• Defined contribution plan (401(k), 403(b), etc.)

• Defined benefit plan (pension)


More About Retirement Plans

• Pension plans• Provides a series of payments – a defined benefit – after you retire

• Calculated based on a combination of salary, age and years of service

• 401(k), 457(b), 403(b) plans• Define contribution – allows you to defer a portion of your salary and

receive tax benefits

• May move (rollover) your 401(k), 457(b), 403(b) savings when you leave an employer

• Cash balance plans• Provide a benefit stated in terms of an account balance

• Employee profit sharing plans• Company contributes certain amount of annual profits to participants

• Employee stock bonus plans• Company contributes certain number of shares of its own stock


Ask Questions – Understand your Benefits

Ask questions about your retirement plans

• What are the terms of the plans that cover me?

• When do I vest and how much is my benefit?

• When can I start getting payments?

Health insurance options

• Learn about COBRA

• Stay healthy


Retirement Plan Decisions

You can decide what to do with your employer-sponsored retirement savings plans:

• Cash out

• Leave with employer

• Rollover


Why? Why not?

Cash Out

• Cash in hand… but at a hefty price

• 20% federal income tax

• 10% penalty if younger than age 59 ½

• Potentially higher tax rate if sent into higher bracket

• Loss of future tax-deferred growth


Why? Why not?

Leave with Employer

• It’s allowed

• Simply do nothing

• Maintain tax deferral

• Same investment options

• Possible lower fees

• Contributions & matching stop

• Possible limited loans or withdrawals

• Lack of control

• Possible unattractive investment options

• Possible higher fees

• Not allowed


Why? Why not?

Rollover

• Consolidate assets

• Maintain tax deferral

• Flexible investment choices

• Other attractive options

• May not be able to consolidate

• Possible higher costs

• Paperwork

• Possible limited options/choices


Before You Hire a Financial Professional

• Registered representative or broker-dealer

• www.finra.org/brokercheck

• Investment adviser

• www.adviserinfo.sec.gov

• Insurance agent

• www.naic.org

• Representatives or advisers in any state, call your state securities regulator

• www.nasaa.org

• Some financial designations are very reputable, but not all of them

• Beware of investments that sound too good to be true


Managing Money Between Jobs

• Act quickly to reduce spending

• Assess your short-term cash situation

• Severance pay

• Unemployment benefits

• Restructure debt with a credit counselor

• Last-resort loans from home equity, life insurance or 401(k)


Career Choices

• Keep same career?

• Upgrade your career?

• Go back to school?

• Start your own business?


Seek Advice

• Presenting your work history

• Interview skills

• How to meet employers

• Networking

• Where to find out about jobs


Don’t Give Up

• Looking for work is your new full-time job

• Network

• Join professional groups

• Volunteer

• Always follow up

• Stay connected


Interview Tips

• Practice with a friend or career coach

• Know what points you want to make

• Be prepared for tough questions

• Use examples

• Ask good questions


Leverage All Resources

• Internet

• User groups

• Job sites

• Company sites

• Build your own site

• Job fairs

• Search firm/recruiters

• State dislocated workers units

• Unemployment office

• Who you know


In Summary

• Know your options

• Get organized

• Understand your benefits

• Ask questions

• Fulfill requirements

• Get moving

• Take action

• Leverage resources

• Don’t give up

Thank You!

Questions and Answers

Managing the Financial Impact of Unexpected Job Loss

Securities offered through <BD Name>, member SIPC.

Job Dislocation:

rep name registered representative date job dislocation: managing the financial impact of unexpected...

Documents

retirement insurance

ing financial advisers

ing usa annuity

variable annuities

ing family of companies

annuity company windsor

403b1 annuities

retirement plan funding