The impact of time. - RiverSource

The impact of time.
Will your savings last a lifetime?
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Is time on your side?
Deciding when to retire is not an exact science. And to make it even more challenging, due to increasing longevity,
you may want to plan for at least 30 years of retirement so you do not risk outliving your savings. Negative returns
shortly before or after you retire can have an enormous impact on your chances of success.
Consider this hypothetical example: two people retire within two years of each other and experience dramatically
different retirements.
As you can see, the only thing different is the date they retired (1973 versus 1975).
Assumptions for Jim and Joe:
• Age at retirement: 65
• Retirement portfolio: $500,000
• Investment allocation: 50% equities and 50% bonds
• Income: 5.5% withdrawals adjusted annually by 3.5% to help keep pace with inflation
Outcome:
Jim
Date of retirement:
1973
Jim’s investment runs out
of money at age 88.
Going back to work at
this age is probably not
an option.
Joe
Date of retirement:
1975
Joe has considerably
better luck.
This example on the next page is shown for illustrative purposes only. It does not reflect taxes, which would reduce the figures shown. Past
performance is no guarantee of future results. There is no guarantee that investment objectives will be satisfied or that return expectations
will be met.
The numbers assume the following for both portfolios: $500,000 initial investment prior to withdrawals invested 50% in the S&P 500 and
50% in the Barclays U.S. Aggregate Bond Index; with income taken each year, adjusted for a fixed, hypothetical 3.5% inflation and
hypothetical 2% investment fee. Note: The bond portion of the portfolio from 1973 through 1975 is represented by: 25% Citigroup Long-
Term High Grade Corporate Bond Index and 25% U.S. Government Bond File since the Barclays Aggregate Bond Index did not start until
1976. It is not possible to invest directly in an index. Standard & Poor’s 500®Index (S&P 500®) is comprised of 500 stocks representing
major U.S. industrial sectors. Performance figures are inclusive of dividends reinvested. S&P 500 is a registered service mark of The
McGraw-Hill Companies, Inc. Barclays Aggregate Bond Index is a market value-weighted index of investment-grade fixed-rate debt issues,
including government, corporate, asset-backed and mortgage securities, with maturities of one year or more.
VARIABLE INVESTMENT PRODUCTS:
ARE NOT A DEPOSIT OF ANY
BANK OR BANK AFFILIATE
ARE NOT FDIC
INSURED
ARE NOT INSURED BY ANY
FEDERAL GOVERNMENT AGENCY
ARE NOT BANK
GUARANTEED
MAY LOSE
VALUE

A tale of two investors
JIM runs out of money after 24 years while JOE takes income for 30 years and still has
$2.2 million remaining in assets. You can see how two years of negative market returns early
in retirement can substantially impact your portfolio.
Jim retires in 1973
Joe retires in 1975
Age Year Withdrawal
Rate of
return
Account
value
65 1973 $27,500 -9.28% $428,652
66 1974 $28,463 -15.51% $338,139
67 1975 $29,459 22.30% $377,520
68 1976 $30,490 17.87% $409,050
69 1977 $31,557 -4.12% $361,925
70 1978 $32,661 2.22% $336,588
71 1979 $33,805 8.01% $327,048
72 1980 $34,988 15.41% $337,077
73 1981 $36,212 -1.36% $296,781
74 1982 $37,480 25.24% $324,738
75 1983 $38,791 13.32% $324,042
76 1984 $40,149 8.86% $309,037
77 1985 $41,554 25.19% $334,865
78 1986 $43,009 15.20% $336,226
79 1987 $44,514 3.41% $301,670
80 1988 $46,072 10.33% $281,991
81 1989 $47,685 20.94% $283,365
82 1990 $49,354 0.98% $236,309
83 1991 $51,081 21.36% $224,795
84 1992 $52,869 5.60% $181,548
85 1993 $54,719 7.91% $136,867
86 1994 $56,634 -2.76% $78,020
87 1995 $58,617 25.68% $24,386
88 1996 $24,386 11.07% $0
89 1997 $0 19.25% $0
90 1998 $0 16.99% $0
91 1999 $0 7.79% $0
92 2000 $0 -0.92% $0
93 2001 $0 -3.68% $0
94 2002 $0 -8.60% $0
Total $972,047
withdrawals
Average annual net investment return
1973 – 2002 = 8.04%
Age Year Withdrawal
Rate of
return
Account
value
65 1975 $27,500 22.30% $577,873
66 1976 $28,463 17.87% $647,599
67 1977 $29,459 -4.12% $592,648
68 1978 $30,490 2.22% $574,662
69 1979 $31,557 8.01% $586,630
70 1980 $32,661 15.41% $639,353
71 1981 $33,805 -1.36% $597,329
72 1982 $34,988 25.24% $704,254
73 1983 $36,212 13.32% $757,041
74 1984 $37,480 8.86% $783,292
75 1985 $38,791 25.19% $932,051
76 1986 $40,149 15.20% $1,027,495
77 1987 $41,554 3.41% $1,019,597
78 1988 $43,009 10.33% $1,077,431
79 1989 $44,514 20.94% $1,249,189
80 1990 $46,072 0.98% $1,214,927
81 1991 $47,685 21.36% $1,416,583
82 1992 $49,354 5.60% $1,443,744
83 1993 $51,081 7.91% $1,502,889
84 1994 $52,869 -2.76% $1,410,034
85 1995 $54,719 25.68% $1,703,296
86 1996 $56,634 11.07% $1,829,026
87 1997 $58,617 19.25% $2,111,220
88 1998 $60,668 16.99% $2,398,962
89 1999 $62,792 7.79% $2,518,194
90 2000 $64,989 -0.92% $2,430,621
91 2001 $67,264 -3.68% $2,276,441
92 2002 $69,618 -8.60% $2,016,964
93 2003 $72,055 14.01% $2,217,393
94 2004 $74,577 5.64% $2,263,698
Total $1,419,624
withdrawals
Average annual net investment return
1975 – 2004 = 9.68%
Take Charge of your financial future.
To learn more, talk to a financial professional.

The RiverSource Story
Life has many twists and turns and we understand the importance of
balancing the need to protect what is important to you while you invest
toward your financial goals. RiverSource creates innovative products
designed with you and your life in mind. Through a balance of asset
and risk management and built on a heritage of 115 years, we work
with you and your financial advisor to help grow your assets, manage
your income and protect what matters most — today and tomorrow.
RiverSource Life Insurance Company
9549 Ameriprise Financial Center
Minneapolis, MN 55474
RiverSource Life Insurance Co. of New York
20 Madison Ave. Extension
P.O. Box 5144
Albany, NY 12205
riversource.com/annuities
274925 J (2/14)
You should consider the investment objectives, risks, charges and expenses
of the variable annuity and its underlying investment options carefully before
investing. For free copies of the prospectuses for the variable annuity and
underlying investments, which contain this and other information, call
1-800-333-3437. Read the prospectuses carefully before you invest.
Variable annuities are long-term investment vehicles designed to help you through each stage of
retirement - from accumulating your nest egg, to providing income in retirement, to leaving any
remaining wealth to your heirs. With a RiverSource®variable annuity, you have access to a broad
range of carefully selected investment choices from today’s top money managers, plus fixed
account options. The guarantees are based on the continued claims-paying ability of the issuing
company and do not apply to the performance of the variable subaccounts, which will vary with
market conditions. In return for the benefits they provide, variable annuities carry a mortality and
expense fee and subaccount management fees. Other fees may include optional rider fees,
surrender charges and an annual contract charge. Optional riders may have investment allocation
restrictions. Withdrawals made from an annuity are subject to income taxes and withdrawals
taken before age 59½ may incur an IRS 10% early withdrawal penalty.
Variable annuities are insurance products that are complex long-term investment vehicles that are
subject to market risk, including the potential loss of principal invested. Before you invest, be sure
to ask your financial professional about the variable annuity’s features, benefits, risks and fees,
and whether the variable annuity is appropriate for you, based on your financial situation and
objectives.
RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are
issued by RiverSource Life Insurance Company and in New York, by RiverSource Life Insurance Co.
of New York, Albany, New York. Only RiverSource Life Insurance Co. of New York is authorized to
sell insurance and annuities in New York.
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