Learn how to diversify your retirement nest egg with life insurance.

1. Tax Diversifying
Your Retirement Income
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This presentation includes a discussion of one or more tax-related topics. This tax-related discussion was prepared
to assist in the promotion or marketing of the transactions or matters addressed in this material. It is not intended
(and cannot be used by any taxpayer) for the purpose of avoiding any IRA penalties that may be imposed upon the
taxpayer. Taxpayers should always seek and rely on the advice of their own independent tax professionals.
Please understand that New York Life Insurance Company, its affiliates and subsidiaries, and agents and
employees of any thereof, may not provide legal or tax advice to you.

2. Retirement Isn’t What It Used to Be
Personal
Social Pension &
Security Qualified Personal Social Pension &
Assets
Plans Assets Security Qualified
Plans
Once: Now:
Retirement typically lasted Retirement can last longer
about 10 years
Many key sources of
Social Security, defined income have been reduced
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benefit pensions and
some personal savings Increased reliance on
covered basic expenses personal assets

3. Social Security Is Shaky
Social Security was
never intended to be
the only source of
income for retirement
The maximum Social
Security Benefit in 2008
for a worker retiring at
full retirement age was
$2,185 per month1
There are limits on how
“
Without changes, by 2041 the Social Security
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much you can earn
Trust Fund will be exhausted* and there will
before your Social be enough money to pay only about 75 cents
Security benefits are
reduced and/or taxed
for each dollar of scheduled benefits.
”
* These estimates are based on the intermediate assumptions from the Social
Security Trustees’ Annual Report to the Congress.
Fast Facts & Figures about Social Security, 2008, SSA Publication No. 13-11785,
1
Released: August 2008; page 2

4. Fewer Pensions, Limits on Qualified Plans
Only 22% of today’s workforce has access to a defined
benefit pension plan1
Fewer employer contributions to pension plans; limits on
company matching of 401(k) plans1
More reliance on employee contributions
Limitations on contributions
Pensions &
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Qualified
Plans
1
Trends in Retirement Plan Coverage Over the Last Decade,” Monthly Labor Review, Stephanie Costo, February 2006.
‘

5. Personal Assets Are Critical
Most people have more questions than answers when it
comes to planning for retirement
– How much will I need?
– How much will I have?
– How much do I need to save to cover the shortfall?
For personal savings, the questions are:
– Where should I put my money?
– How will I be affected by taxes?
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Personal
Assets

6. Tax-Perfect Retirement Planning
The “tax-perfect” retirement plan would include:
– Contributions that are tax deductible
– Accumulation that is tax deferred
– Distributions that are tax free
Such a plan does not exist, but you can have any two of
these tax benefits
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7. Where Do You Think Taxes Are Going?
Tax rates are currently at historically low levels, suggesting
they may be higher when you retire
Tax-diversifying your retirement savings might be sensible
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The graph above illustrates the high and low marginal tax rates over history. Exemptions, deductions and state
and local taxes are not taken into account when illustrating these marginal tax rates. Your actual tax rates may
vary from those show on the graph. Remember that historical rates are not a guarantee of future rates.
Source: U.S. Department of Treasury, Internal Revenue Service, Statistics of Income, Historical income Tax Returns (2008)

8. Is Tax Deferral the Best Strategy?
30 years ago, tax rates were so 1979-1980 2009
high and there were so many
tax brackets, deferring income
generally reduced the tax
burden
In the new tax reality, the tax
leverage benefits of deferring
may not exist
Lower tax rates and fewer tax
brackets today call for a
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smarter strategy

9. Your Retirement Savings Tax Options
Tax Treatment
Contributions Tax deductible After tax
Accumulation Tax deferred Tax deferred
Distributions Taxable Tax free
Financial Traditional IRA Roth IRA
Vehicles
401(k) Tax-free
municipal
Pension plans bonds
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Profit-sharing Cash value life
plans insurance
Keogh

10. A Non-Traditional Solution
In addition to protecting your family, cash value life insurance
can provide an ideal way to tax-diversify your retirement
savings
– Premiums are paid with after-tax dollars
– Generates cash value that generally accumulates on a
tax-deferred basis
– Allows you access to policy values – before or during
retirement – generally on a tax-free basis1
Upon your death, when many other investments
are taxed, your beneficiaries also receive the
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death benefit income tax free Life
Insurance
1 The cash value in a life insurance policy is accessed through policy loans, which accrue interest at the current rate, and cash withdrawals. Loans
and withdrawals will decrease the total death benefit and total cash value.

11. A “Self- Completing” Plan!
If you live…
– You enjoy all the “living benefits” of life insurance,
including the potential for supplemental tax-free
retirement income
If you become disabled…
– With the purchase of the Disability Waiver of
Premium Rider, your premiums are waived, and all
the benefits of your policy stay in force1
If you die…
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– Your family receives the full value
of the policy, less any unpaid loans Personal
and loan interest, income tax free Social Pension &
Assets
Security Qualified
Plans
1 Available on whole life policies

12. The Benefits of Tax Diversification
Retirement Income of $90,000
Without Tax Tax Diversification Strategy
Diversification
$90,000
$90,000
$45,000 $45,000
401(k)/Qualified Plans 401(k)/Qualified Plans . Cash Value Life Ins.
100% taxable 100% taxable tax free2
$90,000 taxed at $45,000 taxed at $45,000 taxed at
25%1 15%1 0%2
= $6,750 tax = $0 tax
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= $22,500 tax
$67,500 to spend
$83,250 to spend after taxes
after taxes
1 Marginal federal income tax bracket under current rates. 2 If structured properly.