Building a Sound Retirement Income Plan

UBS Financial Services Inc.

The Brewster Wealth Management Group

John G. Brewster

Senior Vice President - Wealth Management

Senior Portfolio Manager - Portfolio Management Program

john.g.brewster@ubs.com

Randall V. Brewster

Financial Advisor

Account Vice President

Portfolio Manager - Portfolio Management Program

randall.brewster@ubs.com

Susan McGeachen

Senior Registered Client Service Associate

susan.mcgeachen@ubs.com

61 South Paramus Road

Mack Center IV, 2nd Floor

Paramus, NJ 07652-1236

201-845-4415     800-698-2707

ubs.com/team/brewsterfinancialgr

Are you worried about having enough income in retirement? In today's uncertain environment, individuals are increasingly faced with the challenges of creating a retirement strategy that will provide a reliable source of income for up to 30 years or longer. Our 150 years' experience in managing wealth, trusted advice and access to smart solutions will give you confidence, even in the face of a changing economy.

Whether retirement is years away or looming on the horizon, now is the time to start thinking about establishing a reliable source of retirement income. It is a daunting challenge to figure out a way to make sure that a lump sum of savings will last an indeterminate length of time in the face of uncertain returns and with a diminishing ability to add money to those savings if it’s determined in later years that savings are running short. All this has been made more difficult by an economy and stock market that is currently characterized by low growth and uncertain prospects.

Investors are faced with, among others, two key risks:

• Investment risk: the risk that an actual return on an investment will be lower than the investor’s expectations; and

• Longevity risk: the risk of outliving their assets

So what’s a future retiree to do? To help manage risk and guarantee a minimum income stream for life, you may want to consider a variable annuity. It’s a powerful strategy to help develop a comprehensive, effective retirement plan that offers guaranteed lifetime income. Of course, keep in mind that the promise of lifetime income is only as good as the insurance company providing it. Since these guarantees are based on the claims-paying ability of the underlying insurance company, it is important to choose a reliable provider.

Additionally, annuities offer tax-deferred growth potential, no limit on annual contribution amounts and no mandatory withdrawals after you reach age

70½. The death benefit protection that a variable annuity offers also may mean that more assets will be transferred to your heirs; beneficiaries receive an amount at least equal to the value of annuity contributions, less any withdrawals made prior to the annuitant’s death.

Annuities: a proven solution

A major study recently proved that an often-overlooked combination of approaches that includes variable annuities successfully balances the competing objectives of current income, principal protection and future growth. The groundbreaking analysis by the highly-regarded investment research group Ibbotson Associates (owned by Morningstar) indicated that a blend of annuity and non- annuity portfolios had lower “income risk” (downside volatility of the change in income), higher average income returns and higher total income withdrawals.

The study demonstrated a way to boost retirement income without elevating market risk levels: add a variable annuity with a guaranteed minimum withdrawal benefit (GMWB) to the overall retirement portfolio. A GMWB is an optional annuity rider (available for an additional charge) that gives the annuity owner the ability to help protect retirement income against downside market risk by allowing the owner the right to withdraw a fixed percentage of the benefits base each year until death.

The study showed that adding a variable annuity with a GMWB could help sustain lifetime income, achieve a potentially higher income and reduce the number of times individuals would need to cut back on retirement spending due to market-related setbacks—all important reasons variable annuities are playing an increasingly significant role in portfolios today.

For most people, retirement is a long-awaited time of relaxation, renewal and perhaps reinvention. Often, its reward is tied to an inner sense of confidence and financial security which enables you to enjoy more and worry less. And the linchpin of that security is the degree to which your retirement income is both sufficient and guaranteed. Let’s have a conversation about all aspects of your financial life to determine the optimal portfolio strategies for creating and sustaining income that will last you for the rest of your life.

---Disclaimer---

1Based on “Retirement Portfolio and Variable Annuity with Guaranteed Minimum Withdrawal Benefit (VA+GMWB)” Ibbotson Associates, Inc., January 2010. Sponsored by Nationwide Financial.

Most GMWB riders must be elected at the time of purchase. They are often irrevocable and have specific guidelines, such as requiring investment in a certain asset allocation model to reduce risk (which may also limit potential investment growth), and reducing future withdrawals if excess withdrawals are taken. Before you decide to add a GMWB rider to your variable annuity, be sure to read the product prospectus carefully and have a thorough understanding of how it works, its restrictions, and its costs.

For more complete information about a variable annuity, including the investment objectives, charges, expenses and risk factors, contact a Financial Advisor for a prospectus and its riders. The prospectus contains this and other important information that clients should review carefully before investing. Annuity products are issued by unaffiliated third-party insurance companies and made available through insurance agency subsidiaries of UBS Financial Services Inc. (“UBS”).

Guarantees are based on the claims-paying ability of the issuing insurance company. Guarantees do not apply to the investment performance or safety of amounts held in the variable accounts. Variable annuities are long-term investment vehicles designed for retirement purposes. Variable products and underlying investment options are not FDIC-insured and have fluctuating returns so proceeds, when redeemed, may be worth more or less than their original value. Past performance is no guarantee of future results. UBS and its affiliates do not provide legal or tax advice. Clients should consult with their legal and tax advisors regarding their personal circumstances.

©UBS 2014. All rights reserved. UBS Financial Services Inc. is a subsidiary of UBS AG. Member FINRA/SIPC. D-UBS-DFFCBF7D