IFS-A ORD Ed. 02/2008 for Use with financial professionals only. not for use with the public.

Transcription

1 Investors should consider the contract and the underlying portfolios investment objectives, risks, charges and expenses carefully before investing. This and other important information is contained in the prospectuses, which can be obtained by contacting the National Sales Desk. Your clients should read the prospectuses carefully before investing. Variable annuities are issued by Pruco Life Insurance Company (in New York, by Pruco Life Insurance Company of New Jersey), Newark, NJ, or by Prudential Annuities Life Assurance Corporation, Shelton, CT. All are distributed by Prudential Annuities Distributors, Inc., Shelton, CT. All are Prudential Financial companies and each is solely responsible for its own financial condition and contractual obligations. Wachovia Corporation is the majority owner and Prudential Financial, indirectly through subsidiaries, is a minority owner of Wachovia Securities, LLC. Prudential Annuities is a business unit of Prudential Financial. Prudential, Prudential Financial, the Rock logo, the Rock Prudential logo and The Retirement Red Zone are registered service marks of The Prudential Insurance Company of America and its affiliates. Tax deferral is provided by an Individual Retirement Account and other qualified retirement plans. A variable annuity contract should be used to fund a qualified retirement plan to benefit from the annuity s features other than tax deferral, including lifetime income payout option, the death benefit protection, and the ability to transfer among investment options without sales or withdrawal charges. Prudential, its affiliates, its distributors and their respective representatives do not provide tax, accounting or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used for the purpose of avoiding U.S. federal, state or local tax penalties. Please have your clients consult their own independent advisor as to any tax, accounting or legal statements made herein. ANNUITIES NOT FDIC OR GOVERNMENT AGENCY INSURED MAY LOSE VALUE NOT BANK OR CREDIT UNION GUARANTEED IFS-A ORD Ed. 02/2008 for Use with financial professionals only. not for use with the public.

2 Take charge of your Continuing Education planning. Prudential Annuities Continuing Education C o u r s e D e s c r i p t i o n s IFS-A Ed. 02/2008 for Use with financial professionals only. not for use with the public.

3 Prudential Annuities Continuing Education Course Descriptions P r e p a r i n g f o r t h e F u t u r e. Growth and protection. It s a discipline Prudential Financial has honed for more 125 years, as we ve evolved from an insurance pioneer into a diversified financial services company. Just as Prudential has evolved, so have the financial needs of our clients. Retirees today are living longer than earlier generations as many as 30 years or more after their last paycheck. A longer life expectancy creates a challenge in terms of planning for a secure retirement. T o d a y, m o r e t h a n e v e r Today, more than ever before, clients depend on the guidance of an investment professional to help achieve their financial goals. Twenty-four hour business channels, savvy investors and knowledgeable competition make attracting and retaining your clients more challenging than ever before. That s where Prudential Annuities and your wholesaler can help. We provide educational offerings that help you develop a professional expertise, expand the value you offer your clients, stay current with changes in tax law and the marketplace and differentiate your practice. C o n t i n u i n g E d u c a t i o n. Most states require that registered representatives complete continuing education (CE) credits to maintain their registration. We can make it easy for you by providing classroom programs and access to additional online credits available to help fulfill your CE requirements. Participation in our CE programs is limited to registered representatives appointed with an insurance company affiliated with Prudential Annuities. C l a s s r o o m C r e d i t s. Your Prudential Annuities wholesaler is a licensed instructor and can work with you to identify programs appropriate for your needs. Financial Professionals who attend a classroom CE session earn credit for attending and are entitled to access to online courses available for additional CE credits. Our dedicated CE staff is prepared to support you by filing your credits with your state. W h a t d o y o u n e e d t o d o? Contact your Prudential Annuities wholesaler to learn more about what s being offered and enroll now.

4 P r u d e n t i a l A n n u i t i e s C o n t i n u i n g E d u c a t i o n C o u r s e D e s c r i p t i o n s 1 Annuities are an important option when helping your clients to plan for important life goals, including retirement. With the ability to provide a guaranteed income for life as well as diversified investing options and tax deferral of any growth during the accumulation phase, annuities may provide the necessary flexibility to meet the long-term investing needs of many different clients. The following courses are available to help you develop a professional understanding to expand the value you offer to your clients and stay current with changes in the marketplace. Contact your Prudential Annuities wholesaler for more information. Variable Annuities & Optional Benefits Annuity Basics 1 and 2 hour courses The Annuity Basics course introduces you to annuity products what they are and the benefits they offer that can help your clients reach their retirement goals. Learn about the taxation of qualified and non-qualified contracts, the power of living and death benefits, and how to structure the contract to help meet your clients retirement objectives. We close the course with a discussion of suitability and what you need to bear in mind when considering an annuity for your clients. Understanding Next Generation Optional Living Benefits In this course, we will discuss why a variable annuity, with its optional living benefits may be appropriate for a portion of your clients retirement assets. We will distinguish between the Guaranteed Minimum Income Benefit (GMIB), the Guaranteed Minimum Accumulation Benefit (GMAB) and the Guaranteed Minimum Withdrawal Benefit (GMWB). We will then take an in-depth look at the inner workings of the newest generation of optional living benefit, the Guaranteed Flexible Living Benefit (GFLB). If you are considering a deferred variable annuity with a GFLB, what are the questions you need to ask to ensure that you are selecting the most suitable GFLB for your clients? Understanding Variable Annuity Living Benefits Our course in Understanding Annuity Living Benefits examines the three most common living benefits available in variable annuity products: Guaranteed Minimum Income Benefit - GMIB; Guaranteed Minimum Accumulation Benefit - GMAB; and Guaranteed Minimum Withdrawal Benefit - GMWB. And we introduce the newest generation of living benefits. We explore in detail the features and design elements of each, including required life-contingent income payments, required asset allocation and variations in allowed withdrawal rates. Learn about living benefits. Variable Annuity Suitability and Living Benefits Variable Annuity Suitability and Living Benefits examines the current regulatory environment under which we operate and looks closely at the most common living benefits available in variable annuity products: Guaranteed Minimum Income Benefit-GMIB; Guaranteed Minimum Accumulation Benefit-GMAB; and Guaranteed Minimum Withdrawal Benefit-GMWB and the newest form of income benefit. We explore in detail the features of each, including the client circumstances under which each may be appropriate. Meeting Client Needs: The Role of the Variable Annuity in the Retirement Income Strategy Customers have many goals, objectives, and dreams for the future. Reaching retirement with financial security and replacing their paycheck in retirement are generally among those goals. What CE eligibility is subject to state approvals. Refer to State Approval tables. Some firms may limit course availability. All guarantees are based on the claim-paying ability of the issuing company. Withdrawals of taxable amounts are subject to ordinary income tax and a 10% federal income penalty may apply prior to age

5 2 P r u d e n t i a l A n n u i t i e s C o n t i n u i n g E d u c a t i o n C o u r s e D e s c r i p t i o n s are the important questions to ask in determining a customer s goals and objectives? How do you know when an Annuity fits into the retirement income strategy for this customer? At a time when life expectancy is increasing a customer could potentially spend 20, 30, or even 35 years in retirement. In the traditional 3-legged stool of retirement planning, personal savings is fast becoming the longest leg of the stool, making achieving a stable and secure income in retirement a challenge. The annuity is designed to help overcome that challenge by facilitating the accumulation, management, distribution and protection of retirement savings. While an annuity is a great financial tool, it is not suitable for everyone. In this course, we will discuss Annuity products in general along with their features, benefits, fees and charges. We will also discuss suitability issues that need to be considered when discussing an annuity as a possible retirement income strategy for customers. Retirement Planning Avoiding Sand Traps on the Back Nine While increased longevity is one of the benefits of modern living, it also creates a challenge in terms of planning for a secure retirement. With the prospect of living 30 years or more in retirement, your clients may be concerned about outliving their retirement assets. In this course we will focus on the qualified plan rollover marketplace. We will look at options available to employees who retire, or otherwise terminate employment at various stages of life and the tax and financial implications associated with those options. We will then discuss the Required Minimum Distribution rules as they pertain to employer plans and IRA accounts. This course will answer the question Why would you consider moving some of your qualified plan savings into an annuity? Today s variable annuity has evolved. Most offer unique features like optional living and death benefits that are not offered on other financial products. We will talk about these features and benefits in detail and discuss how a variable annuity might be a potential solution for your clients who want to insure against the loss of their retirement savings. Advanced Distribution Strategies in Retirement 1hour course As Financial Professionals, you help your clients daily to plan for and achieve important life goals such as retirement. Ensuring that your clients make informed decisions regarding such important issues as increased longevity, income protection, wealth transfer, and the associated tax implications is key to successful retirement living. In this course, we will discuss advanced distribution strategies you and your retired clients may want to consider. We will look at several traditional as well as alternative distribution strategies and their impact on income and taxation. We will consider the living benefits of annuities for both asset protection and guaranteed income generation in retirement. Learn about these advanced distribution strategies and help your clients enjoy their retirement years by making the decisions that are right for them. Rollover Strategies for your Retirement Plan Assets Over the past 30 years, U.S. households have used IRAs to accumulate $3.0 trillion in assets. As a result, IRAs have become the single largest component of the $11.6 trillion U.S. retirement market, representing about a quarter of total U.S. retirement assets at the end of In this course, we will discuss rollover strategies you may want to consider for your clients as they progress through their working years, and enter into their retirement years. We will discuss the advantages and disadvantages associated with each strategy, with particular emphasis on taxation. We will take an in-depth look at the use of annuities in IRA s to both protect retirement assets and generate an income for your clients in retirement. Learn about rollover strategies for your clients retirement plan assets and learn to grow your business.

6 P r u d e n t i a l A n n u i t i e s C o n t i n u i n g E d u c a t i o n C o u r s e D e s c r i p t i o n s 3 Five S.M.A.R.T. Retirement Strategies Every Couple Should Know As part of his routine, the comedian Alan King used to read obituaries quite at random from the newspaper. For nearly every obituary and with increasing exasperation, he would repeat, He is survived by his wife! a deceased man at least one worthy of an obit was leaving behind a widow. Clearly it struck the funny bone, or a raw nerve, or both. When Alan King himself died in 2004, you guessed it, the papers reported that he was survived by his wife. In this course, we will discuss 5 S.M.A.R.T (specific, measurable, attainable, realistic, and timely) strategies that you can employ with your clients, as couples, to ensure a solvent and satisfying retirement for her that lasts beyond their years together. In addition, we will discuss today s generation of annuity products and their guaranteed living and death benefits, which may help you manage the specific concerns of your clients who want to provide protection and income both for their years together, and for the one who survives. Top 10 Mistakes To Avoid When Planning For and Living in Retirement Ensuring that your clients make informed decisions regarding such important topics as when to retire and the financial, insurance and estate planning issues they need to consider is key to successful retirement living. In this course, we discuss the top 10 mistakes to avoid when planning for and living in retirement. We look at important issues you and your client should consider from early retirement to working in retirement, when to begin drawing from retirement assets and which assets to liquidate first. We consider such topics as income and portfolio management, expense planning, health and long-term care insurance needs, social security, estate planning and taxation. Learn about mistakes to avoid and how to help your clients enjoy their retirement years by making the right decisions. Insuring your Retirement Paycheck Most Americans approaching retirement have not begun to ready themselves for the transition to retirement, clearly one of the most significant changes that will take place in their lifetime. As their years of employment wind down, the great majority of near-retirees are still focused on asset accumulation. However, creating a retirement paycheck that lasts throughout retirement is a common and universal goal among those approaching retirement. In this course, we will take an in-depth look at distribution strategies. We will compare potential outcomes for common distribution strategies including lump-sum, systematic withdrawal and annuitization. We will then give an overview of Monte Carlo simulation strategies, examining the impact of a variety of withdrawal rate and asset allocation scenarios. Finally, we will examine variable annuity products with today s generation of optional living benefits that can provide your clients with flexible income options to help insure their retirement paycheck. Protective Strategies for the Retirement Red Zone While increased longevity is one of the benefits of modern living, it also creates a challenge in terms of planning for a secure retirement. With the prospect of living 30 years or more in retirement, your clients may be concerned about the impact of inflation, sky-rocketing health care costs, the impact of negative market performance on their retirement savings, and generally outliving their retirement assets. In this course, we will discuss the importance of using protective strategies for your client s qualified retirement assets in the Retirement Red Zone. The Retirement Red Zone is defined as the five years before, through the five years after, retirement. The decisions made with regard to investing and protecting retirement assets during this time are critical. While investment mistakes made in the early years of saving for retirement may be corrected over time, mistakes made in the Retirement Red Zone can have a devastating impact on the plans your clients have made for their retirement years.

7 4 P r u d e n t i a l A n n u i t i e s C o n t i n u i n g E d u c a t i o n C o u r s e D e s c r i p t i o n s Maximizing the New Minimum Required Distribution Rules This course defines what the MRD rule is, who it applies to and when you must start taking distributions from your retirement product. The course provides an example of the process using a Uniform Lifetime Table and illustrates which clients would benefit as well as when you would not use this method for your client. The course looks at the beneficiary options that can be exercised depending on the designated beneficiary, and defines an inherited IRA and the implications of not having a designated beneficiary before and after the MRD distribution. Social Security and Retirement As an Financial Professional, you likely spend a great deal of time with your clients helping them plan for a happy retirement. So, you know that many clients rely on Social Security benefits for at least a portion of their retirement income. For most people, the development of a thorough retirement plan requires an understanding of Social Security, and how certain choices affect benefits. This course provides you with what you need to help your clients gain this understanding. We review the choices your client has regarding the commencement of retirement benefits as well as the use of annuity products to supplement retirement income. In addition, we discuss the pros and cons of working while collecting Social Security benefits, the rules regarding taxation of Social Security benefits, and how these rules may affect your clients ultimate benefits. MITIGATING Behavioral Risk in the Retirement Red Zone. 1hour course In the Retirement Red Zone, your clients face many financial risks. In our Retirement Red Zone series of Continuing Education courses, we have focused on two financial risks: Sequence Risk and Longevity Risk. Continuing our focus on risk in the Retirement Red Zone, in this course, we will hone in on a third, but equally important risk: Behavioral Risk. This is defined as the risk that investment decisions triggered by emotion, especially in the Retirement Red Zone, may have a negative impact on the plans your clients have made for their retirement years. We will discuss behavioral finance theories and describe some of the emotions that are related to those theories. We will educate you on how to recognize the emotions your clients are exhibiting, and show you how you can best work with them to make wise investment choices as they approach, and enter their retirement years. Today s annuities have protection features that are designed to help your clients take the emotion out of the equation when it comes to making investment decisions about their retirement plan assets. We will discuss how you can apply those features to your clients retirement income program, and help them maximize the longevity of their retirement plan assets. The Perfect Storm: Creating a Retirement Income Plan to Withstand Multiple Pressures With 78 million Baby Boomers approaching retirement, the role of the Financial Professional has never been more critical. Today s generation of retirees face different and unique challenges not seen in previous generations. Sequence risk, longevity risk, and behavioral risk, each by itself can be detrimental to your clients retirement income success. Combine the pressures associated with these three risks and you could have the makings of a perfect storm. Your role, as a Financial Professional, is to help your clients manage these risks effectively by creating a retirement income plan that could withstand these pressures on their portfolio. We can t control the markets any more than we can control the weather. But just as a raincoat can help keep you dry in stormy weather, the protective features of variable annuity with its optional living benefits can help manage the risks your clients may face as they transition into and live in their retirement years. In this course we will take an in-depth look at the three most critical risks your clients may face as they are approaching and transitioning into their retirement years. We will look at sequence risk, with particular emphasis on the five years

8 P r u d e n t i a l A n n u i t i e s C o n t i n u i n g E d u c a t i o n C o u r s e D e s c r i p t i o n s 5 immediately preceding, and the five years following retirement, and factors that could impact the sequence of returns in your clients retirement portfolio. We will then look at longevity risk, digging into the contributing factors as well as your clients concerns around this particular risk. Finally, we will look at a third risk, your clients reaction to the markets opportunities and risks, or behavioral risk. We will demonstrate how investor behavior may negatively impact a retirement income plan. We will explore what your clients think about these risks using recent research and statistics. We will explore insurance strategies to protect your clients portfolios against the three critical risks by creating a retirement income plan to withstand multiple pressures. Social Security: New Tax Laws and Strategies to Consider As a Financial Professional, you likely spend a great deal of time with your clients helping them plan for a comfortable retirement. So you know that many clients rely on Social Security benefits for at least a portion of their retirement income. The development of a thorough retirement plan requires an understanding of Social Security, and how certain choices affect benefits. This course will provide you with what you need to help your clients gain this understanding. We will review the choices your clients have regarding the commencement of retirement benefits as well as the meaning of the break even age. We will discuss the advantages and disadvantages of early vs. delayed retirement and the tax and other financial implications associated with working while collecting benefits. In addition, we will discuss recent tax law changes and their impact on retirement plan assets. Finally, we give you some annuity and other financial strategies you and your clients may want to consider for funding retirement. Learn about Social Security retirement benefits and help your clients plan for retirement! Estate Planning Charitable Remainder Trusts The charitable remainder trust ( CRT ) allows your high net worth clients to receive the immediate tax advantages of gifting assets while still retaining income from the donated assets until some future date. This can be an important estate planning benefit. This course provides an in-depth look at CRTs how they work and how they are used. We also explain the income tax considerations as well as how to implement a CRT as part of your client s estate plan. Estate Planning 2 hour course Estate planning is an essential part of a complete financial plan. If your clients are concerned about preserving their assets for future generations, then you will want to know about estate planning. This course takes an in-depth look at the estate planning process and relevant tax issues and opportunities. You will also learn about the marital deduction and community property deductions, GRITS, GRATS, and GRUTS. We will show you how these trusts help to plan for estate and family wealth transfer. Charitable giving can also be a component of meeting your client s estate planning objectives. Annuity Design and Contract Structure 2 hour course Our course, Annuity Design and Contract Structure, covers all aspects of annuity product design, from mortality and expense charges, to maintenance fees, and contingent deferred sales charges. The course then takes an in-depth look at the players in an annuity contract the owner, the annuitant and beneficiary showing you how to structure a contract to meet specific client needs. Learn about the difference between an ownerdriven and annuitant-driven annuity contract. Through case studies, we discuss these topics and more such as the rules for aggregation, non-natural owners and annuity transfers. Navigating the Annuity Contract Structure Maze Annuities can be one of the essential building blocks in your client s retirement savings plan. Our course, Navigating the Annuity Contract Structure Maze, takes

9 P r u d e n t i a l A n n u i t i e s C o n t i n u i n g E d u c a t i o n C o u r s e D e s c r i p t i o n s an in-depth look at how to appropriately structure an annuity with the end in mind. We cover several scenarios, in which we present you with the outcome associated with your client s current contract structure, and the correct structure required to meet their desired outcome. Finally, we provide you with steps to take to ensure that your clients assets are transferred in accordance with their wishes. Creating a Structure you can Trust- An Overview of Trust- Owned Annuities As Financial Professionals, you help your clients daily to plan for important life goals. Annuities can be one of the essential building blocks in your client s retirement savings plan. Our course, Creating a Structure you can Trust-An Overview of Trust-Owned Annuities, takes an in-depth look at the specific implications for annuities that are owned by a trust and the opportunities they present. Stretching your Legacy: The Benefits of Annuities when Planning for Heirs For many of your clients, planning for heirs is equally as important as planning for their retirement. For the portion of assets that your clients are planning to leave as a legacy, it is important to understand the many options that are available and the tax and other considerations applicable to each of these options. In this course, we will talk about options you and your clients may want to consider for legacy planning. We will discuss annuities and take an in-depth look at death benefit options as they apply to both spouse and non-spouse beneficiaries. We will discuss specific planning strategies under a variety of client scenarios, including new opportunities available based on recent tax legislation. Practice Development Ethics in financial services 1, 2, 3 hour course As Financial Professionals, your clients rely upon you to exercise ethical judgment when making financial recommendations. This course will reinforce how and when ethics comes into play in your daily business activity. We review both the theory and practice of ethical thinking and behavior, the history of industry codes of ethics, and issues to be aware of in your practice. The corporate scandals of recent years have heightened scrutiny for unethical and illegal practices. Create positive public opinion one meeting at a time. This is when you, the individual practitioner, can make a difference. Ethics involves integrity, honesty, confidence and a sense of direction. Recommit yourself to your personal and professional code of ethics. Addressing the Unique Financial Concerns of Women in Today s Marketplace Today s women are very aware of the importance of financial and retirement planning. Many have moved beyond the beginner stage in terms of their knowledge of financial products and services. However, a Prudential Financial Study on Financial Behaviors and Experience among Women, published in 2006, indicates that this awareness and basic knowledge is not inspiring women to take the appropriate actions that will help ensure they maintain their desired lifestyle as they move through the next 20 to 30 years of their life. As Financial Professionals, you can play an important role in addressing the unique financial concerns of women, if you understand what drives their decisions around financial issues. What concerns do women have? What do women look for in a Financial Professional? What unique value proposition can you, as a Financial Professional, offer to the women s marketplace? What types of insurance products work well to address the concerns that women have around retirement, especially in the Retirement Red Zone (defined by Prudential as the five years immediately preceding or following retirement)? Learn about the unique financial concerns of women, and learn to build your business.

10 P r u d e n t i a l A n n u i t i e s C o n t i n u i n g E d u c a t i o n C o u r s e D e s c r i p t i o n s Industry Topics Equity Indexed Annuities: The Good, the Bad, the Alternatives As Financial Professionals, you help your clients daily to plan for important life goals such as growing, protecting, and taking distributions from their retirement savings. Educating clients on the features and benefits of products available to them to meet these goals is crucial to retirement success. The purpose of this course is to understand the moving pieces of Equity Indexed Annuities so that, in turn, you can educate your clients. This course is designed to provide a framework for you to effectively evaluate these products against alternatives, such as Variable Annuities with their new generation of Living Benefits. We will discuss several case studies illustrating how Equity Indexed Annuities work. How the Current Economy Affects Annuity/Life Portfolio Selections This course gives you an assessment of the economy, from unemployment figures to current savings rates. We also review current monetary and fiscal policy and discuss how these factors will impact the financial markets. What is the economic growth forecast? What sectors will be in or out of favor? What is the outlook for interest rates? The economic environment impacts all investment decisions. Learn about the current economy and build your business. Topics in Advanced Planning- Retirement and Tax Strategies for 2006 The retirement landscape is continually changing. This is fueled in part by tax law changes, an increased emphasis on defined contribution vs. defined benefit plans and a greater need for estate planning. In this course, we will discuss several opportunities that can help clients plan for a successful retirement. We will address changes in the social security taxable wage base, and how social security benefits may be taxable in certain situations. We will also discuss how changes in the tax law have made ROTH IRAs available to more individuals, and how employing ROTH strategies with your clients may result in reduced taxation of social security benefits. We will then address the tax advantages of distributing company stock in an employer retirement plan, vs. rolling it to an IRA. We will conclude by discussing the various types of trusts than can own a non-qualified annuity, and the tax treatment associated with each. Leveraging Recent Tax Law Changes to Secure Your Client s Retirement As Financial Professionals, you help your clients daily to plan for and achieve important life goals such as retirement. Ensuring that your clients make informed decisions regarding such important issues as increased longevity, income protection, wealth transfer, and the associated tax implications is key to successful retirement living. In this course, we will discuss recent tax law changes that provided advanced tax strategies you and your retired clients may want to consider. We will look at several recent legislative acts, and the distribution strategies they provide for along with their impact on income and taxation. We will consider the living benefits of annuities for both asset protection and guaranteed income generation in retirement. Learn about these advanced tax strategies and help your clients enjoy their retirement years by helping them make the decisions that are right for them. Gaining Perspective in a Rapidly Changing Industry As Financial Professionals, you are challenged daily with helping your clients choose the most suitable investment products for their retirement assets. For your clients who are looking for income guarantees for a portion of their retirement assets, a deferred variable annuity, along with the guarantees associated with today s optional living benefits, may be an appropriate choice. In this course we will discuss the driving forces behind the evolution of Optional Living Benefit riders in the deferred variable annuity marketplace. We will

11 P r u d e n t i a l A n n u i t i e s C o n t i n u i n g E d u c a t i o n C o u r s e D e s c r i p t i o n s start with the basic definition of what an annuity is, what a living benefit is, and why the first available optional living benefits were not so popular. We will walk you through a timeline, discussing in detail, the thought process behind the development of optional living benefits, and the evolution from the first introduction of living benefits, to the inner workings of the consumer-driven solutions that are available today. Finally we will provide characteristics of Lifetime Withdrawal Optional Living Benefits, and provide you with information and tools you can use to choose the living benefit that is most suitable based on their clients retirement investment needs. Investments Investment Management Strategies for your Variable Annuity Portfolio Keeping clients on track in various market environments is a key component of successful retirement planning. In a bull market, that challenge may seem less daunting. But strategies that may work well in a rising market environment may be less effective in a flat or declining market environment. Charting a course in a lackluster market environment while trying to accumulate retirement assets, may call for strategies that employ a more active, tactical approach to investment management. As your clients approach the distribution stage, you may want to consider implementing additional protective strategies for your clients retirement assets. For your clients who are concerned about outliving their retirement assets, a variable annuity with an optional living benefit may be an appropriate solution that guarantees lifetime income. Asset Allocation Strategies for Investors in the Retirement Red Zone 1hour course Conventional wisdom has long led us to believe that a shift out of equity investments in our retirement years is necessary to protect retirement savings. It is believed that this strategy will help to mitigate the risk that poor market performance could significantly erode retirement savings. While conventional wisdom may have worked well in the past, it may no longer make sense for today s generation of retirees. In this course, we will discuss today s generation of variable annuities with their optional living benefits. A variable annuity with an optional living benefit, can offer your clients the opportunity to secure a guaranteed income for life, with the potential for continued growth of savings, by investing in asset allocation portfolios that are based on their risk tolerance and investment time horizon. Through the purchase of a variable annuity with an optional living benefit, your clients can effectively transfer longevity and market risk from them, to the insurance company. And, because guarantees are based on the claimspaying ability of the insurance company, the selection of an insurance company with solid ratings is equally as important. Retirement Income and Risk Management Strategies for Today s Investor 1hour course We are in the midst of a significant demographic shift one that more than likely is already affecting your practice and will continue to do so in the years to come. As your client base continues to mature from a demographic standpoint, more and more of your clients are likely shifting their priorities from asset accumulation to asset distribution. In turn, many are seeking your help to create retirement income management strategies that typically seek to ensure the following: (1) a desired standard of living, (2) asset longevity, and (3) principal protection. And many will seek all three over the course of their entire retirement, which could run as long as 30 or more years. For your clients who are concerned about outliving their retirement assets, Annuities, with their Optional Living Benefits, may be a solution. Enhanced Diversification Strategies for your Variable Annuity Portfolio Traditional long-only portfolios are generally diversified, efficient portfolios that are constructed to meet the various investment time horizon and risk tolerance criteria for many of your clients. For some of your clients however, finding opportunities to enhance portfolio

12 P r u d e n t i a l A n n u i t i e s C o n t i n u i n g E d u c a t i o n C o u r s e D e s c r i p t i o n s diversification within their variable annuity portfolios beyond traditional longonly investments given today s global market environment may be attractive as a way to potentially reduce overall portfolio volatility. While appropriate for many investors, typically traditional long-only portfolios are limited to investing in the markets of an underlying benchmark. That means they are tied to the underlying asset class, sector or security weights of a benchmark. Therefore, when the markets decline, generally, so will traditional portfolios. This course illustrates how the addition of some alternative strategies may help investors enhance portfolio diversification by investing in certain asset classes that are not highly correlated with traditional asset classes or strategies, or in portfolios that seek higher returns for similar levels of risk. Examples include absolute return portfolios and long/short portfolios. Absolute return portfolios seek more consistent returns, regardless of whether the overall market is up or down. Absolute return managers view security selection as being separate from market exposure. This enables them to invest in undervalued securities, without exposing the portfolio to the market in which the security is found, if it is overvalued. Long/short portfolios, such as a 130/30 portfolio, seek to generate higher returns, with a similar level of risk as the benchmark, by investing in both long and short positions. By relaxing the constraints of traditional long-only portfolios and enabling short positions, a 130/30 strategy has the flexibility to pursue an additional source of alpha. Learn about enhanced diversification strategies for client s variable annuity portfolios, and learn to grow your business. A Guide to the use of Alternative Investments as a Risk Management Strategy Our knowledge of portfolio construction has been strongly based on 20th century theories such as Modern Portfolio Theory (MPT), and the Efficient Markets Hypothesis. Many of you have constructed efficient portfolios for your clients based on the assumptions used in these theories, adjusting portfolios downward on the risk spectrum as your clients approach retirement. In this course we re-visit these theories, discussing the advantages, as well as the challenges associated with each. We explore Alpha, Beta, Standard Deviation, and Asset Correlation as key measures of risk in portfolio construction, and common beliefs regarding asset allocation strategies when investing for retirement. Next, we look at examples of Endowment Portfolios, along with some of the more successful investment strategies that are employed by the managers of those portfolios. We then begin to explore the addition of alternative investments as a method for managing portfolio risk and potentially enhancing alpha. We look at a variety of applications in terms of risk-adjusted investment returns and the impact to the Efficient Frontier. Finally, we incorporate the use of insurance guarantees as a way to mitigate portfolio risk, giving you some new risk management strategies to consider, especially for your clients who are concerned about growing and protecting their retirement assets for income generation.