Advisory Platforms:

New Enhancements

PWP, MWP, SAM/SWM

Christopher Mercado, MBA, CFP®, CIMA®, AIFA® Advisory & Brokerage Consulting Services

Insert Disclosure Here. Must be approved by Compliance before released.

Agenda

 Personal Wealth Portfolios (PWP) Enhancements  Model Changes  Manager Choices  Pricing  Model Wealth Portfolios (MWP) Enhancements  Multiple Strategists  Strategist Allocations  Pricing  Fee-Based Variable Annuity Now Available in SAM/SWM  Carriers  Pricing  “DTC”

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Personal Wealth Portfolios (PWP) 2

Personal Wealth Portfolios

 Alternate approach to do it yourself in SAM  Hire LPL Research to manage asset allocation  You select allocation & managers/investment vehicles (where applicable)  Manager/investment vehicle options: 36 SMAs, 92 Mutual Funds, 32 ETFs  Transparency  Trade Logs  Recommended Fact sheets from LPL Research  New Enhancements Deliver  Greater investment choice – SMAs, mutual funds and ETFs  Consistency with other platforms that LPL Research manages  Further diversification with new asset classes

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Build Your PWP Account

1. Select investment objective 2. Select model – Diversified, Diversified: Tax Aware, Diversified Plus, Large Core, All Core 3. Select Your Investments for Each Asset Class

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Build Your PWP Account

Diversified PLUS has three tactical portfolio options: • Alpha Focused • Standard • Downside Risk Aware Tactical Sleeve: • Managed by LPL Research • • • Mutual Fund and/or ETFs Subset of macro allocation, i.e. “growth”, 30% LCG, etc.

Focused on the benefits of active management for “theme-based” strategy

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Personal Wealth Portfolios

 LPL Financial Research introduces:  3 new asset allocation models − Diversified − − Diversified: Tax Aware Diversified Plus  3 new tactical options within Diversified Plus

(only)

− − Standard Downside Risk Aware − Alpha Focused  Greater consistency of implementation, tactical management and more choice − $2M custom model and allocation

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Build Your PWP Account

 Select a manager based on account size  Account size determines investment vehicle options

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Pricing Calculator on the Resource Center | Advisory Platforms | PWP 8

Investor Presentation & Proposal Tool (IPPT) To access the tool visit – lpl.portfolio360.com

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Model Wealth Portfolios (MWP) 10

Model Wealth Portfolios (MWP) New Enhancements Deliver:

− New levers - further customization capabilities − Include up to 3 models/strategists within a single account − Models/strategists must all be consistent with Investment Objective Simplicity: − Multiple strategists within a single account (optional) − Single account number/paperwork process − One performance report − One fee − Account is billed by allocation to strategist/model − Client price/billing is from a single fee on the account − Advisor determines cost for allocation and prices the entire account

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Pricing – Proposed Fee 1.75% Calculator available under: BranchNet Resource Center | Advisory Platforms | MWP 12

Levers in Portfolio Construction 13

Select Models and Allocations 14

Review and Present Recommendations – Investor Presentation & Proposal Tool To access the tool visit – lpl.portfolio360.com

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Fee-Based Variable Annuity in SAM/SWM

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New Investment Strategies for SAM

An investment strategy that offers:  Clients a systematic income strategy they cannot outlive  Diverse group of professional money managers to choose from  Tax deferral  Full liquidity

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Protection Strategies Protected Lifetime Income Strategies Combine Investments Insurance 18 18

FBVA Carriers

 Allianz  AXA  Lincoln  Prudential (not available in SWM)  Sun Life

Available for Purchase within the AOE System 19

Why Consider FBVAs vs. Brokerage

  Discretion Trading the account   Transparency BranchNet, Cost, Performance Reporting   Consistency Fee-based business model, allocations/strategy, pricing *

* Billing the portion of assets in the FBVA or advisory fee purposes does not come from the FBVA, rather it comes from either other assets in the same account or you can assign another account using new options and flexibility with direct billing.

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2011

Advisory & Brokerage Consulting Team 21

Thank you

Insert Disclosure Here. Must be approved by Compliance before released.

Disclosures

Investors should consider the investment objectives, risks, charges and expenses of the variable annuity contract and sub-account carefully before investing. The prospectus contains this and other information about the variable annuity contract and sub-accounts. You can obtain contract and sub-account prospectuses from you the financial representative. Read prospectuses carefully before investing. Variable annuities are long-term, tax deferred investment vehicles designed for retirement purposes and contain both an investment and insurance component. They are sold only by prospectus. Guarantees are based upon the claims paying ability of the issuer. Withdrawals made prior to age 59 ½ are subject to the 10% IRS penalty tax and surrender charges may apply. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. The investment returns and principal value of the available sub-account portfolios will fluctuate so that the value of an investor’s unit, when redeemed, may be worth more or less than the original value.

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