Independent Perspective | Real-World Solutions www.manning-napier.com

Fixed Dollar Amount Withdrawals for a 50% Stock/50% Bond Portfolio

$1,400,000

$1,200,000

$1,000,000

$800,000

$600,000

$400,000

$200,000

$0 03/00 09/01 03/03 08/04 02/06 08/07 01/09 07/10 01/12 07/13 12/14 06/16 12/17

$40,000 Annual Withdrawals $50,000 Annual Withdrawals $60,000 Annual Withdrawals $70,000 Annual Withdrawals $80,000 Annual Withdrawals

50% Stock/50% Bond Portfolio Ending Value with No Withdrawals $2,504,990

For illustrative purposes only. Past performance does not guarantee future returns. Source: Morningstar. The 50% Stock/50% Bond Portfolio is reflected by 50% Ibbotson Associates SBBI U.S. Large Stock Index and 50% Ibbotson Associates SBBI U.S. Intermediate-Term Government Bond Index. The Ibbotson Associates SBBI U.S. Large Stock Index is an unmanaged index representing the broad U.S. large cap stock market. The Ibbotson Associates SBBI U.S. Intermediate-Term Government Bond Index is an unmanaged index representing the U.S. intermediate-term government bond market. The index is constructed as a one bond portfolio consisting of the shortest-term non callable government bond with less than 5 years to maturity. The Index returns do not reflect any fees or expenses. ©2018 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. SMA-OTO163 (5/18) 12 Independent Perspective | Real-World Solutions www.manning-napier.com

Why The Traditional Solution May No Longer Work

Calendar Year Income Returns (%) (01/01/1926 - 12/31/2017) 16

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12

10

8

6

4

2

0 1926 1928 1930 1932 1934 1936 1938 1940 1942 1944 1946 1948 1950 1952 1954 1956 1958 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

50% U.S. Large Cap Stock / 50% Intermediate Government Bond Intermediate Government Bonds U.S. Large Cap Stocks

Income Return Income Return (01/01/1926 - 12/31/2017) (01/01/2017 - 12/31/2017) 50% U.S. Large Cap Stock/50% Intermediate Government Bond 4.40% 2.16% U.S. Large Cap Stocks 3.96% 2.05% Intermediate Government Bonds 4.56% 1.93%

For illustrative purposes only. Past performance does not guarantee future returns. Performance for periods greater than one year is annualized. Source: Morningstar. U.S. Large Cap Stocks data is reflective of the Ibbotson Associates SBBI U.S. Large Stock Index. Intermediate Government Bonds data is reflective of the Ibbotson Associates SBBI U.S. Intermediate-Term Government Bond Index. The Ibbotson Associates SBBI U.S. Large Stock Index is an unmanaged index representing the broad U.S. large cap stock market. The Ibbotson Associates SBBI U.S. Intermediate-Term Government Bond Index is an unmanaged index representing the U.S. intermediate-term government bond market. The index is constructed as a one bond portfolio consisting of the shortest-term non-callable government bond with no less than 5 years to maturity. The Index returns do not reflect any fees or expenses. ©2018 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. 12