Transamerica International Equity Class R6 · NASDAQ:TAINX
Transamerica International Equity Class R6 — Transamerica — Investor Presentation (2015)
38 slides from Transamerica International Equity Class R6's investor presentation, May 30, 2015
Slide 1: Living Benefit
Living Benefit Annuities issued in all states except New York by Transamerica Life Insurance Company, Cedar Rapids, IA and in New York by Transamerica Financial Life Insurance Company, Harrison, NY. Variable annuities are underwritten and distributed by Transamerica Capital, Inc. References to Trans
Slide 2: Presented By
Presented By: [Registered Representative’s Name] WITH [FINRA MEMBER FIRM NAME]
Slide 3: Today's Retiree Retirement Savings
Today’s Retiree Retirement Savings Separately Managed Pensions and Accounts, ETFs, Income Annuities Mutual Funds Deferred Variable Annuity with Guaranteed Income (GMWB) – How Much to Allocate to Annuities?, Moshe A. Milevsky, PhD. Research Magazine, August 2009 3
Slide 4: Challenges to a Successful Retirement
Challenges to a Successful Retirement You deserve a strategy that helps you achieve the retirement you’ve worked for. To be financially independent on the first day of retirement, through the final day, you should consider the challenges ahead. 4
Slide 5: Record Amount of Assets in Short-Term Investments
Record Amount of Assets in Short-Term Investments In short-term $10.8 Trillion liquid investments Source: Guide to the Markets, JPMorgan, January 2014 5
Slide 6: Interest Rates at Historic Lows
Interest Rates at Historic Lows Average Savings Account 0.11% 1-Year CD 0.26% 5-Year CD 0.82% 5-Year Treasury 1.58% 10-Year Treasury 2.34% Sources: bankrate.com and federalreserve.gov, as of October 9, 2014. Generally a higher rate of return involves a higher degree of risk. 6
Slide 7: Interest Rates at Historic Lows
Interest Rates at Historic Lows “A long spell of low interest rates has created a windfall worth billions to banks, mortgage borrowers and others it was designed to benefit. But for many people who were counting on their nest eggs, those same low rates can spell trouble. The longer the Central Bank
Slide 8: Interest Rates at Historic Lows
Interest Rates at Historic Lows “Among the most vulnerable are retirees, who have few options to restore lost income on investments built up over entire lifetimes.” “They’re losing their investment income precisely at the time when they need it most.” – Fed’s Low Interest Rates Crack Retirees’ Nest
Slide 9: Cost of Income for $20,000 in Annual Income
Interest Rates at Historic Lows What would the Cost of Income be for investments in order to create $20,000 in annual income? 9
Slide 10: Reliability of Future Income: Pensions Have Become Rare
Reliability of Future Income Pensions Have Become Rare out of every 100 workers out of every 100 workers had pensions in 1979 had pensions in 2013 Sources: Social Security & Pensions, SmartMoney, October 2011 and Retirement Benefits: Access, Participation, and Take-Up Rates, Private Industry Workers
Slide 11: Retirement Income Sources are Eroding
Retirement Income Sources are Eroding Social Security Cost of Living Adjustment Only Increase in Cost of Living Adjustment Social Security recipients receive 1.5% in 2014 Source: Social Security Announces 1.5 Percent Benefit Increase for 2014, www.ssa.gov, October 30, 2013. 11
Slide 12: Investment Realities
Investment Realities Impact of Two Market Downturns $1.4 trillion lost $3.7 trillion lost ® S&P 500 chart derived from Yahoo! Finance data. Past performance is no guarantee of future results. Source: US Retirement Markets and Retirement Assets Total $17 Trillion in Third Quarter 2011, ici.org. 12
Slide 13: Inflation
Inflation A Conservative 2.3% Inflation Rate $1.00 Today will be worth $.80 In 10 years But keep in mind, the inflation rate over the past 30 years has averaged 4.3% $.63 In 20 years $.51 In 30 years Sources: Inflation: Fourth Quarter 2013, Survey of Professional Forecasters, November 25, 2013 and w
Slide 14: Future Health Care Expenses
Future Health Care Expenses Medical Expenses Keep Rising Consider, it is estimated that a 65-year-old couple today will need $220,000 for medical expenses throughout retirement, not including nursing home care. $160,000 $220,000 2002 2013 38% increase in costs since 2002 Source: Fidelity Estimates C
Slide 15: A Retirement Income Solution
A Retirement Income Solution The Opportunity to Create: • A guaranteed income stream for life • The ability to stay invested in equities • Income protection when the market goes down • Income growth when the market goes up • Income stability during periods of low rates • Flexibility to start and sto
Slide 16: Variable Annuities
Variable Annuities Pension Stocks and Bonds VA 16
Slide 17: Variable Annuities: How They Work
Variable Annuities How They Work Stocks and Bonds VA VA VA 17
Slide 18: Variable Annuities: How They Work
Variable Annuities How They Work Pension Stocks and Bonds VA VA VA All guarantees, including optional benefits, are backed by the claims-paying ability of the issuing insurance company. 18
Slide 19: The Retirement Income Max Living Benefit
The Retirement Income Max Living Benefit Maximize Your Retirement Income Step-Ups SM Monthiversary Automatic Income For Life* Growth Single Life Withdrawals 5.5% Annual Compounding 6.20% at age 80+ 5.20% at age 65-79 4.20% at age 59-64 Investments Multiple Investment Options Any withdrawals, includi
Slide 20: Automatic Step-Ups: Opportunity in Up Markets
Automatic Step-Ups – Opportunity in Up Markets “There is no significant difference among daily, weekly, and monthly step-ups.” – Allocation to Deferred Variable Annuities with GMWB for Life, Journal Of Financial Planning, February 2010. 20
Slide 21: How the Monthiversary Works
SM How the Monthiversary Works Opportunity In Up Markets Every month matters 1 2 3 4 5 6 7 8 9 10 11 12 21
Slide 22: Every Month Matters
Every Month Matters “The Dow Jones Industrial Average closed up 7.80 points, or 0.07% at 11,577.51, up 11% from where it began in 2010. The Dow’s gain for the year represents its second-straight annual increase, with almost half of the 2010 climb having come this month; it rose 5.20% in December.” —
Slide 23: Every Month Matters
Every Month Matters April 29, 2011 “U.S. stocks rose Friday, and posted gains for the week and the month of April, with a climb in shares of Caterpillar Inc. helping push the DJIA up 47.23 points, or 0.4%, higher to 12,810.54. For the week, the Dow rose 2.4% and finished April up 4%, its heftiest mo
Slide 24: Every Month Matters
Every Month Matters October 31, 2011 “The Dow soared 9.5% last month, its best month since October 2002. Measured by points, the 1,041.63 point rise was its biggest ever. ” — A Month to Remember for Markets, The Wall Street Journal 24
Slide 25: Policy Value and Withdrawal Base
5.5% Annual Compounding Growth Protection in Down Markets Policy Value and Withdrawal Base 0 1 2 3 4 5 6 7 8 9 10 living benefit Year Withdrawal Base 5.5% Guaranteed Growth Policy Value This is a hypothetical illustration intended to illustrate the features of the Retirement Income Max living benefi
Slide 26: Growth on Growth
Growth on Growth Benefits of Retirement Income Max This illustration does not guarantee or predict actual performance. * Assumes no withdrawal is taken in any living benefit year. 26
Slide 27: Maximize Your Retirement Income
Maximize Your Retirement Income 80+ 6.20% 5.80% 65-79 5.20% 4.80% 59-64 4.20% 3.80% If the living benefit is structured as joint life, withdrawals are based on the younger of the annuitant or the annuitant’s spouse when withdrawals begin and may be changed with an automatic step-up. Any withdrawals,
Slide 28: Important Information
Important Information TA Vanguard ETF - Balanced Performance Update March 31, 2015 TA Vanguard ETF – Balanced – 5 Years Since Inception 1 Year Service Class (5/1/08) Annualized Annualized Portfolio returns without surrender charges and service charges deducted 3.24% 5.30% 3.25% Subaccount returns wi
Slide 29: Hypothetical Scenario Based on Historical Performance
Opportunity in Up Markets Protection in Down Markets Hypothetical Scenario Based on Historical Performance On April 30, 2011, you captured In $328,998.71 2012, you received 5.5% guaranteed $347,093.64 your highest Monthiversary and Withdrawal Base (WB) growth. this was the third year in a row $366,1
Slide 30: Opportunity in Up Markets, Protection in Down Markets
November 30, 2008 th This is the date the annuity was issued. On the same day each month (the 30 or following business day), Transamerica will record your policy value. This is called your Monthiversary value. Opportunity in Up Markets Protection in Down Markets $250,000.00 Every month matters This
Slide 31: Investment Options
Investment Options Well Known Managers Vanguard, the ship logo, and Vanguard ETFs are trademarks of The Vanguard Group. Vanguard is one of the managers of the underlying ETFs. The investment objectives and policies of certain funds may be similar to those of other funds managed by the same investmen
Slide 32: The Retirement Income Max Living Benefit Fee
The Retirement Income Max Living Benefit Fee SINGLE OR JOINT LIFE FEE 1.25% ISSUE AGES* 0-85 *Issue ages in New York are 58-85 for Single Life and 65-85 for Joint Life. Living benefit fee as of May 1, 2014. The living benefit fee is deducted on each living benefit quarter in arrears, and is an annua
Slide 33: Mainstream Recognition
Mainstream Recognition “Also, given the markets’ volatility, look for an annuity that evaluates whether to reset the floor frequently. One Transamerica Corp. product looks at monthly market benchmarks, and uses the month with the best performance each year to calculate a new baseline for an account’
Slide 34: Mainstream Recognition
Mainstream Recognition “As insurance companies continue de-risking their annuity products, by effectively reducing guarantees, only a handful of companies marketing guaranteed lifetime withdrawal benefits (GLWBs) offer true protection against longevity, sequence of return and (potentially) inflation
Slide 35: Retirement Income Max Living Benefit
Retirement Income Max Living Benefit Maximize Your Retirement Income Step-Ups Monthiversary Automatic Income For Life* Growth Single Life Withdrawals 5.5% Annual Compounding 6.20% at age 80+ 5.20% at age 65-79 4.20% at age 59-64 Investments Multiple Investment Options Any withdrawals, including thos
Slide 36: Important Information
Important Information Before investing, consider a variable annuity's investment objectives, risks, charges, and expenses. Call 1-800-525-6205 for a contract and fund prospectus containing this and other information. Please read it carefully. Fees Transamerica variable annuities’ range of fees and c
Slide 37: Important Information: Additional Information
Important Information Additional Information Financial institutions that sell our products may have their own guidelines to determine suitability of our variable annuity policies and/or living benefits. Some financial institutions may not sell all of our products, may have specific issue ages for ou
Slide 38: Questions?
Questions? Thank You For Your Time