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PersonalFinancialAnalysisforDon TrumpetteNew Scenario (10/19/2011 3:59:19 PM)Report CoverInformationGoes HereTo EditGo To ...
Table of ContentsGeneral                                                                          2           Retirement N...
General             A summary of the assumptions used in this analysis, description of the             purpose of the repo...
Personal Statistics                                                                                                       ...
IntroductionNew Scenario (10/19/2011 3:59:19 PM)Your Personal Financial Plan has been prepared using techniques and concep...
Goal Based PlanningNew Scenario (10/19/2011 3:59:19 PM)This comprehensive financial analysis has been prepared with the ob...
Objectives                                                                                                                ...
Personal Financial Summary                                                                                                ...
Retirement Summary                                                                                                        ...
Financial Life Cycle                                                                                                      ...
Net Worth                                                                                                                 ...
Net Worth Statement                                                                                                       ...
Asset Detail                                                                                                              ...
Personal Property                                                                                                         ...
Liabilities                                                                                                               ...
Life Insurance                                                                                                            ...
Other Insurance                                                                                                           ...
Asset Summary                                                                                                             ...
Liquidity                                                                                                                 ...
Liquidity Analysis                                                                                                        ...
Cash Flow                                                                                                                 ...
Cash Flow                                                                                                                 ...
Income Management                                                                                                         ...
PersonalEducationAnalysisforDon TrumpetteNew Scenario (10/19/2011 3:59:19 PM)Report CoverInformationGoes HereTo EditGo To ...
Saving For College                                                                                                        ...
Education Funding                                                                                                         ...
Education Costs                                                                                                           ...
Education Funding                                                                                                         ...
Education - Separate Accounts                                                                                             ...
Education Funding Sources                                                                                                 ...
PersonalTaxAnalysisforDon TrumpetteNew Scenario (10/19/2011 3:59:19 PM)Report CoverInformationGoes HereTo EditGo To Settin...
Income Tax             Analysis of your taxable income sources, exemptions, deductions and             Federal and State t...
Income Tax Planning                                                                                                       ...
Income Tax                                                                                                                ...
Income Taxes                                                                                                              ...
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
Trumpette investment retirement tax report easy money
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Trumpette investment retirement tax report easy money

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Transcript of "Trumpette investment retirement tax report easy money"

  1. 1. PersonalFinancialAnalysisforDon TrumpetteNew Scenario (10/19/2011 3:59:19 PM)Report CoverInformationGoes HereTo EditGo To SettingsReport Defaults IMPORTANT: The illustrations or other information generated by this report regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. 10/19/2011
  2. 2. Table of ContentsGeneral 2 Retirement Needs Analysis - C3 52Personal Statistics 3 Retirement Capital Analysis - C4 53Introduction (text) 4 Retirement Capital Notes (text) - C4a 54Goal Based Planning (text) 5 Retirement Estimate Solution - C5 55Objectives - A1 6 Retirement Capital Estimate - C6 56Summary - A2 7 Asset Illustrations (text) - C7 57Retirement Summary - A2a 8 Asset Accounts - C8 58Financial Life Cycle (text) - A3 9 Total Assets - C8a 59Net Worth Graph - A4 10 Monte Carlo - C9 60Net Worth - A5 11 Monte Carlo Details (text) - C10 61Asset Details - A6 12 Standard Deviation (text) - C11 62Personal Property - A7 13 Withdrawal Rates - C12 63Liability Details - A8 14 Withdrawal Rate Graph - C12a 64Life Insurance - A9 15Other Insurance - A10 16Asset Summary - A11 17Liquidity Graph - A12 18Liquidity - A13 19Cash Flow Graph - A14 20Cash Flow - A15 21Income Mgt - A16 22Education Cover 23Saving for College (text) - A18 24Education Graph - A19 25Education Costs - A20 26Education Funding - A21 27Education Separate Accounts - A22 28Education Funding Sources - A23 29Income Tax Cover 30Income Tax 31Income Tax Planning (text) - D1 32Income Tax Graph - D2 33Income Taxes - D3 34Income Taxes Paid - D4 35Tax Favored Investments - D5 36Investments Cover 37Investment 38Asset Management (text) - B1 39Risk (text) - B2 40Asset Pyramid - B3 41Financial Attitudes - B4 42Asset Classes - B5 43Asset Allocation - B6 44Asset Allocation Graph - B7 45Allocation Worksheet - B8 46Investment Returns - B8a 47Retirement Cover 48Retirement 49Retirement Planning (text) - C1 50Retirement Graph - C2 5110/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 1 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  3. 3. General A summary of the assumptions used in this analysis, description of the purpose of the reports and a listing of assets, insurance and other details. Includes net worth statement, cash flow report, liquidity and education funding if appropriate.10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 2 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  4. 4. Personal Statistics 10/19/2011Don Trumpette and Sabrina Trumpette57 Forest StreetTampa Bay, FL 12345Family Member Birth Date AgeDon Trumpette 8/9/1979 32Sabrina Trumpette 8/5/1983 28Yevelle 10/19/2011 0 Employment Don Sabrina This presentation provides a general overview of some aspects of your personal financial position. It is designed to provide educational and/or general information and is not intended for specific legal, accounting, investment, income tax or other professional advice. For specific advice on these aspects of your overall financial plan, consult with your professional advisors. Asset or portfolio earnings and/or returns shown, or used in the presentation, are not intended to predict nor guarantee the actual results of an investment product.10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 3 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  5. 5. IntroductionNew Scenario (10/19/2011 3:59:19 PM)Your Personal Financial Plan has been prepared using techniques and concepts proven over years ofexperience from the disciplines of banking, investments, insurance, economics and finance. The analysis isbased on the information you provided in your confidential questionnaire.As you review the Personal Financial Plan, you will find that some areas of your financial goals are in bettershape than others. The areas that particularly need attention will be identified in the report that follows.The objective of this analysis is to assist you in making proper plans and quality decisions that might helpyou to achieve your financial objectives.Decisions you make about your financial future can be enhanced by an understanding of your personalsituation as described in this report, and through careful review and discussion.After you have reviewed this financial plan and noted areas that need attention, we will assist you inevaluating the various options available for addressing areas of need or opportunities for use of yourfinancial resources.10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 4 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  6. 6. Goal Based PlanningNew Scenario (10/19/2011 3:59:19 PM)This comprehensive financial analysis has been prepared with the objective of helping you determinewhether there are possible shortfalls or problems that must be addressed in order to achieve your goals.Goal Based PlanningGoal based planning is designed to identify certain goals, and then determine if what you are now doing mayenable you to accomplish your goals. This differs from a "cash flow" analysis which is used to measure allyour cash inflows and outflows, and then integrate these items with your assets and a careful analysis ofyour income tax burden each year. Goal based planning uses a more conservative "worst case" scenarioapproach.What do we mean by "Worst Case"?Cash Flow When we project your sources of income and expenses, an assumption is made that your income prior to retirement is adequate to cover your spending requirements. We do not illustrate investment of any surplus cash flows prior to retirement, or account for shortages prior to retirement. An exception to this rule applies to items you have indicated as being special income or expenses. These would include an inheritance, pension plans or social security starting prior to retirement age, or special expense items like education funding.Savings If you indicate that you are making deposits to savings, investments or retirement accounts, we use only those deposit amounts that you specify. Even if there might be additional funds available to save or invest, we do not assume that they will be added to your accounts. The objective of Goal Based Planning is to help you evaluate whether what you ARE DOING NOW may come close to allowing you to accumulate the funds necessary to reach your goals. If your savings rate is not sufficient, the report provides an estimate of additional savings or investments or estimated rates of return that might be used to satisfy the shortfall. The suggested amounts may or may not prove to be sufficient depending on various future economic and personal conditions.Taxes When managing your savings and investment portfolio, there will be taxable items such as interest, dividends, investment gains and retirement account distributions which will be subject to income tax. In a worst case analysis we make the assumption that the taxes due on these events will be paid out of the income source and the after-tax balance reinvested. In reality you may have enough earned income or other sources of funds to pay the taxes and reinvest the gross amount prior to retirement. However, if you fail to do this, then the "worst case" illustration will show the results if only the after -tax amounts are reinvested. We also make the assumption that any anticipated appreciation on invested assets is taxed each year as if you turned over your investment portfolio and paid capital gains tax on the realized appreciation. Again, this is illustrating the "worst case" approach to see if you might reach your goals under this type of scenario.10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 5 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  7. 7. Objectives A1New Scenario (10/19/2011 3:59:19 PM)Your personal financial plan was prepared with concern for your specific goals and objectives. As you reviewthis report, determine if your goals are obtainable or whether adjustments should be considered. * MonthlyRETIREMENT OBJECTIVES: Expenses in * Inflation Adjusted Age Todays Dollars Expenses Your financial plan is based on the 62 $6,863 $15,030 G4, G12 following income requirements. 74 6,863 20,943 87 6,863 30,220 * Includes basic personal expenses, itemized deductions, insurance, mortgage and debts, savings and investment deposits.SURVIVOR OBJECTIVES: In the event of your premature death, you indicated that your heirs would need the following amounts of monthly income:* Don Sabrina Initial income amount needed: $8,783 $7,992 F6, F4 *Amount of expenses will vary. Refer to Survivor report for details. Includes basic personal expenses, insurance premiums, itemized deductions and loan payments.FINANCIAL ATTITUDES: Your plan has been prepared based on the understanding that your risk tolerance level is that of a moderate investor. Based on your responses about common financial objectives, we have listed the following items and your level of concern for each area rated 1 (low) to 5 (high). A20 Maximum growth potential. 3 Protection from inflation. 3 Reducing income taxes. 3 Liquidity (convert assets to cash). 3 Current spendable income. 3OTHER: Estimates used in the reports are based on a life expectancy age for Don of 96. The life expectancy age for Sabrina is assumed to be 96.10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 6 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  8. 8. Personal Financial Summary A2New Scenario (10/19/2011 3:59:19 PM)There are several areas of your financial affairs that can be compared to the goals you have set and to theirprobable achievement. The following areas will give you a brief overview of the progress you have madetoward your goals or alert you to areas that may need attention.RETIREMENT: Income needed and available Annual basic living expenses needed adjusted for inflation * $180,356 Total amount of spendable income needed through life expectancy $12,023,702 Total income expected from Social Security, pensions, etc. ($3,155,614) Additional income requirements to be satisfied by savings, investments $8,868,089 C3 Estimated value of working assets at retirement age 62 $671,035 C4 Your working assets may last only until you reach age 72. *Includes basic living expenses, debt payments, insurance premiums and itemized deductions.SURVIVOR (Insurance): Person to be insured Don Sabrina Insurance needed if death occurs now $684,429 $1,197,698 F4, F6 Maximum insurance needed if death occurs in the future 2,873,631 2,979,787 Present Insurance Coverage $85,000DISABILITY:In the event of long term disability, funds will be required to pay for living expenses, debts and insurancepremiums. Person disabled Don Sabrina Monthly income needed $8,383 $8,383 F8 Monthly income available (long term) 5,325 3,386 Percent available - vs - needed 64% 40%INCOME TAXES: Your estimated gross income this year $95,194 D3 Your estimated taxable income this year 52,370 Total income and social security taxes 14,483 Marginal tax rate (highest Federal & State tax rate) 15%ESTATE COSTS: First death estimated estate expenses and debts now $183,386 E4 Second death taxes & expenses after 10 years $301,823 E7 (adjusted for estate growth) Estate settlement costs as percent of future estate values 82% (assuming second death in 10 years)10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 7 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  9. 9. Retirement Summary A2aNew Scenario (10/19/2011 3:59:19 PM)The following table summarizes the goals, assumptions and variables used in the Retirement Planninganalysis. Moderate PortfolioRETIREMENT GOALS: Don Sabrina Retirement Age 62 62 Life Expectancy 96 96 Retirement Living Expenses (after-tax) Todays $ / Inflated $58,860 $142,869 G4 Standard of Living Inflation Rate 3.00% G4RETIREMENT CAPITAL: Rate of Return - Pre-Retirement (pre-tax) 6.84% C4 Total assets available for retirement $52,876 C4 Annual additions to Other Accounts $4,800 H1...H4RETIREMENT INCOME (pre-tax): Don Sabrina Social Security Starting Age 62 62 Social Security Benefit $22,480 $24,003 Social Security COLA 2.00%OTHER INCOME/EXPENSE ITEMS (pre-tax): Post-Retirement Earnings $744,195 G8 Rental Real Estate Income B15 Balloon Payment / Life Insurance 85,000 G8INCOME TAXES: Your marginal tax rate (Federal & State) is 15.00% D3 Your effective tax rate is 15.69% D3RETIREMENT ANALYSIS: Amount Needed for Retirement $2,690,000 C4 Retirement Assets at Age 100 $0 Age When Your Retirement Assets are Depleted 72 Additional Lump Sum Needed at Retirement $2,018,965 C4 Increased Rate of Return needed for Remaining Life 10.50% C4 Additional Monthly Savings Required at 5.00% (after-tax) $1,900 C4 Additional Monthly Savings Required at 7.00% (after-tax) $900 C4 Additional Monthly Savings Required at 9.00% (after-tax) $400 C410/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 8 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  10. 10. Financial Life Cycle A3New Scenario (10/19/2011 3:59:19 PM)Every person during his or her life goes through a similar economic life cycle. Your success in the final phaseof the cycle is determined by your preparation and planning in the earlier phases.The phases can be described as:During the early years when you are a "consumer", depending on your parents for support and learning skillsneeded for the future, you have the opportunity to prepare yourself for the earning years. Successfulpreparation in the form of education and development of social skills and earning capability can be greatlyresponsible for the level of success in the "Earning" phase.Interestingly enough, the amount of wages or income received in the second or "Earning" phase is not thefactor that determines the results of the last phase - "Spending" or "Yearning". The key in this phase is howwell a person has managed his/her income.A person with low to medium income who regularly saves and prudently invests part of each paycheck caneasily achieve a more successful financial result than high income earners who fail to set aside part of theirwealth for the time when they can no longer work for a living.10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 9 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  11. 11. Net Worth A4New Scenario (10/19/2011 3:59:19 PM)The Net Worth graph illustrates the amount of your assets, including savings, investments, retirementaccounts, and personal assets, less liabilities such as mortgages, loans, credit card balances, etc. Assets: $378,476 A5 Ordinary income accounts $4,880 Investment accounts 0 Retirement accounts 48,596 Real estate 285,000 Personal assets 40,000 Less Debts ($334,766) Net Worth $43,710Your objective should be to measure your net worth on a regular schedule in order to assure that you areimproving your financial strength.10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 10 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  12. 12. Net Worth Statement A5New Scenario (10/19/2011 3:59:19 PM)ASSETSOrdinary Interest Accounts: Amount Percent of Assets Checking accounts, cash $1,980 0.52% Savings accounts 2,300 0.61% Insurance Cash Value and Dividends 600 0.16% Total Ordinary Interest Assets $4,880 1.29%Retirement Accounts: 401(k) accounts 22,699 6.00% IRA accounts 25,897 6.84% Total Retirement Accounts $48,596 12.84%Personal Use Assets: Autos 40,000 10.57% Total Personal Use Assets $40,000 10.57%Real Estate Assets: Residence 285,000 75.30% Total Real Estate Assets $285,000 75.30% TOTAL ASSETS $378,476 100.00%LIABILITIES Amount Percent of Assets Residence mortgage ($307,114) 81.14% Auto loans (27,652) 7.31% TOTAL LIABILITIES ($334,766) 88.45% NET WORTH (Assets less Liabilities) $43,710 Note: Assets held in a Revocable Trust are included in the grantors assets.10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 11 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  13. 13. Asset Detail A6New Scenario (10/19/2011 3:59:19 PM) Account Monthly Rate of ReturnName Value Additions Inter. Div. CapG. Appr. Owner Liquid Group Class Type RetChecking Account $1,980 200 / 0 5.00 Joint Checking Taxable YesIndiv 1 401(k) 22,699 0/0 7.00 Don MF-Stock Retire YesIndiv 1 IRA 25,897 0/0 7.00 Don MF-Stock Retire YesSavings Account 2,300 200 / 0 5.00 Joint Savings Taxable Yes10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 12 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  14. 14. Personal Property A7New Scenario (10/19/2011 3:59:19 PM) AppreciationDescription Value Owner RateResidence $285,000 Joint 2.00Vehicles $40,000 Joint (10.00) Total $325,00010/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 13 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  15. 15. Liabilities A8New Scenario (10/19/2011 3:59:19 PM) Monthly Interest BalloonDescription Owed to Owed by Balance Payment Rate AgeAuto Joint $27,652 $437 4.38%Residence Joint 307,114 2,064 6.45% Totals $334,766 $2,50110/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 14 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  16. 16. Life Insurance A9New Scenario (10/19/2011 3:59:19 PM) Face Annual Cash LoanInsured Description Company Owner Beneficiary Amount Premium Value AmountDon Permanent Lif Don $25,000 $2,000 $600Don Term Life Don 60,000 400 Face Annual Cash Loan Totals Amount Premium Value Amount Don $85,000 $2,400 $600 Sabrina10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 15 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  17. 17. Other Insurance A10New Scenario (10/19/2011 3:59:19 PM) AnnualCompany Type Insured Description Premium Auto Don Auto Insurance $2,300 Homeowners, P&C, Other Don Home Owners 2,700 Medical Don Medical 4,800 Total Premiums: $9,80010/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 16 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  18. 18. Asset Summary A11New Scenario (10/19/2011 3:59:19 PM)This view looks at your retirement assets by the way they are treated for income taxes (the retirementestimate report uses this grouping for illustrating future values). Account Percent of Weighted Average*Assets by TYPE: Value Total Rate of Return C8 Taxable $4,280 8.09% 5.00% Equity/Other Tax-Deferred Tax-Free Retirement accounts 48,596 91.91% 7.00% Roth accounts $52,876 100% 6.84%* Weighted average rate excludes assets which were not intended to be used for retirement. Note: The Weighted Average Rate of Return is derived from the asset rates provided by you as shown on the Asset Detail report page. The effective return from each asset is computed and summed by type, and that sum is divided by the total value of that typeasset. The resulting weighted average reflects an estimated portfolio rate of return for that asset type. The rates used are assumed to be net of all fees and expenses.This view is focused on the asset classes. It should be used to help you determine if your assets are positionedin concert with your own goals. Savings & Retirement Percent ofAssets by CLASS: Investments Accounts Total B8This view is concerned with the amount of liquid funds available. Refer to the Liquidity report for a moregraphic illustration. Savings & Retirement Percent ofAssets by LIQUIDITY: Investments Accounts Total Cash and Reserves Liquid Non-Liquid Other Note: Some of the assets listed here may have been excluded from the retirement projection. Refer to the Asset Detail report for specifics. Assets listed include only "working" assets, not residence and personal property assets or insurance cash values.10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 17 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  19. 19. Liquidity A12New Scenario (10/19/2011 3:59:19 PM)The above graph illustrates the liquidity level of your working assets, measuring the ability to convertworking assets to cash if needed.If you have too much of your money in "non-liquid" investments you may someday find yourself in a positionwhere you need to have quick cash, but are unable to convert enough of your assets quickly. Total Assets** Working Assets* A13 Cash & Reserves $0 $0 Liquid 0 0 Non-Liquid 325,600 0 Other 0 0Your total liquidity level including your residence and personal property is 0%.Your working asset liquidity ratio (cash and liquid assets divided by all working* assets) is 0%This level of working asset liquidity is very low and could prove troublesome when cash is needed. * Excluding residence and personal assets. Includes retirement accounts and rental real estate. ** Includes residence and personal assets in non-liquid category.10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 18 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  20. 20. Liquidity Analysis A13New Scenario (10/19/2011 3:59:19 PM)Liquidity is a measure of the ability to convert assets to cash. This can be important in two major instances...FIRST - In times of economic disruption, cash is king. If a substantial portion of your net worth is held in assetsthat are not readily convertible to cash, you may find their value rapidly fluctuating. This could severelyhamper your ability to move them to a "safe haven" if needed.SECOND - In the event of loss of income due to death or disability, there may be a need to reposition some ofthe assets to change from a growth oriented to a more income oriented asset position. If too much of your assetsare positioned in non-liquid accounts, you may find it impossible to make the changes required without payingsubstantial penalties or taxes, or you may find it difficult or impossible to make the changes at all. All Working Assets* Assets**CASH and RESERVES $0 $0 These are generally assets that can quickly be taken in cash without significant delay and without substantial loss of value. Included in this group are your checking, savings, US savings bond accounts, and money market funds.LIQUID INVESTMENTS $0 $0 These accounts can be converted to cash in a reasonable length of time, but they may suffer an unpredictable loss due to market fluctuations, liquidation penalties or other complications. Some assets like annuities, CDs and retirement accounts may be subject to liquidation penalties and/or taxes which may make liquidation less attractive. Included in this category are Govt T-Bills and bonds, corporate bonds, tax-advantaged municipal bonds, fixed or variable annuities, variable life insurance, certificates of deposit, mutual funds, stocks and other securities.NON-LIQUID ASSETS $325,600 $0 These accounts are considered non-liquid, meaning that even if you want to sell or dispose of them, there may not be a ready buyer for the asset. This includes real estate, partnerships, mortgages and notes. Residence, personal property and cash values are included in "All Assets" category.OTHER ASSETS $0 $0 Items in this category are most likely to be non-liquid or may suffer substantial loss if they must be sold quickly. They include business interests, other ventures, and tangibles. Total of all assets $325,600 $0 Liquid assets (Cash, Reserves and Liquid investments) $0 $0 Liquidity ratio (Liquid assets divided by Total Assets) 0% 0% *Includes residence, all types of personal property, insurance cash values, savings, investments and retirement assets. **Includes only savings, investment, rental real estate and retirement account assets.10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 19 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  21. 21. Cash Flow A14New Scenario (10/19/2011 3:59:19 PM)The graph above shows the relationship of your expenditures to your available income. The expendituresgroup includes your personal expenses as well as taxes, insurance premiums, debt and mortgage payments,savings and investments deposits. Monthly Annual Income available $7,932 $95,194 A15 Less: Savings and Investments (427) (5,124) Living Expenses (5,846) (70,160) Taxes (1,206) (14,482) Insurance (1,016) (12,200) Mortgage (2,064) (24,768) Loan payments (437) (5,244) Total spending ($10,996) ($131,978) Spendable income surplus ($3,064) ($36,784)The information you provided for this analysis indicates that your expenses exceed your available incomesources.You should carefully evaluate your spending in order to reduce expenses where appropriate.You should regularly review your cash flow to determine if there are changes required in your spendinghabits.10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 20 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  22. 22. Cash Flow A15New Scenario (10/19/2011 3:59:19 PM) Monthly Annual Percent ofINCOME Amount Amount Income Salaries & Wages $3,989 $47,870 50.29% D3 Self employment income (Sch C) 3,916 47,000 49.37% H8 Interest 27 324 0.34% H1...H4 Total income available $7,932 $95,194 100.00% Monthly Annual Percent ofEXPENSES Amount Amount Income Federal and State income tax $500 $6,005 6.30% D3 FICA taxes 706 8,477 8.90% D3 Residence mortgage 2,064 24,768 26.02% K1 Auto Loans 437 5,244 5.51% K1 Life insurance 200 2,400 2.52% J1 Homeowners & other insurance 225 2,700 2.84% G15 Auto insurance 191 2,300 2.41% G15 Medical insurance 400 4,800 5.04% G15 Saving and Investment additions 400 4,800 5.04% G12 Reinvestment of Interest, Dividends and Capital Gains 27 324 0.34% H1...H4 Charitable contributions 83 1,000 1.05% D3 Property tax 575 6,900 7.25% D3 Medical expenses 283 3,400 3.57% D3 Misc 150 1,800 1.89% Clothing 500 6,000 6.30% Transportation 240 2,880 3.03% Utilities 515 6,180 6.49% Household 400 4,800 5.04% Children 900 10,800 11.35% Personal 600 7,200 7.56% Gifts/Vacation 700 8,400 8.83% Food 900 10,800 11.35% Total spending and savings $10,996 $131,978 138.63%Cash flow shortage (spending in excess of income) ($3,064) ($36,784)Note: Items on this report represent only current year income and expenses. Amounts will vary in future years.10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 21 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  23. 23. Income Management A16New Scenario (10/19/2011 3:59:19 PM)The 10/20/70 Income Management Plan explained below will help you establish a system for currentincome management and for accumulation of capital for future financial independence. $7,906 Gross income available per month. D3 (1,207) Less Income Tax and FICA. (83) Less charitable contributions. $6,616 Amount left for the 10/20/70 plan. DISTRIBUTION OF FUNDS FOR 10/20/70 PROGRAM PUT and KEEP 10% $662 This amount is used for investment to create capital for future use. 20% $1,323 PUT and TAKE Use these amounts for cash reserves or for reducing debt. Keep these funds in a money market or savings account. SPEND Use this for your living expenses - monthly 70% $4,631 bills, food, etc. These funds should be deposited to a checking account where they can be easily used as needed, but with careful control of expenditures and good records for tracking use of funds.The effectiveness of this plan can be enhanced by using automatic checking deposit and withdrawalprograms where possible.Check at your place of employment to see if you can have your paycheck automatically deposited toyour checking account.See if your bank will automatically transfer the 20% PUT and TAKE amount into a savings or moneymarket account.Consider investment programs like mutual funds or annuities which have automatic bank-draft plans forthe 10% investment program each month.This plan and the percents indicated above are general guidelines and may need to be adjusted to fit yourparticular situation.10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 22 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  24. 24. PersonalEducationAnalysisforDon TrumpetteNew Scenario (10/19/2011 3:59:19 PM)Report CoverInformationGoes HereTo EditGo To SettingsReport Defaults IMPORTANT: The illustrations or other information generated by this report regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. 10/19/2011
  25. 25. Saving For College A18New Scenario (10/19/2011 3:59:19 PM)Recent changes in income tax regulations have provided a variety of opportunities that should make savingfor your childs education expenses more palatable. In some cases current education expenses can result incurrent tax savings, and putting aside money for future costs can be much more tax-friendly than in the past.529 Plans:Section 529 of the Revenue code has enabled states to establish special college savings funds where parentsor grandparents can make deposits to an account to accumulate money for tuition and in some cases otherexpenses. The terms and benefits of each state vary, but generally include the following features: ● Tax savings - starting in 2002 the earnings on the accounts will not only be accumulated without federal income tax, but withdrawals will also be tax free so long as they are used for qualified educational expenses. Some states will also allow withdrawals free of state taxation and many states will allow you to take a deduction for some portion of the money deposited but the rules of each state vary. Also, if you withdraw money from a 529 plan and do not use it on qualified educational expenses, you will generally be subject to both federal and state taxation as well as a 10% tax penalty. ● Control - unlike other accounts sometimes used to accumulate money for the child, you, the donor, stay in control of the assets. You decide when withdrawals are taken and for what purpose. And in most cases you can even reclaim the funds, particularly if the child elects not to attend college. (There may be a penalty for "non-qualified" withdrawals.) ● Simple - once you select which state plan to use, a simple enrollment form is completed, and deposits may even be made by automatic checking account withdrawals. The account is managed by the state or an investment manager hired by the state. ● Everyone eligible - generally there are no special eligibility requirements, and the amounts you can contribute in many states are substantial (in some cases as much as $250,000 or more.)Other education plans:The following items are effective with the 2001 tax act: ● Coverdell Education Savings Accounts - the nondeductible contribution may be used for "qualified higher education" or "qualified elementary and secondary education expenses", including private institutions. The maximum allowable contribution is $2,000 subject to certain income limitations. The plan is integrated with the HOPE and Lifetime Learning Credit programs. ● Employer provided assistance - the $5,250 contribution level now extends the exclusion to graduate courses and makes the exclusion for undergraduate and graduate courses permanent. ● Student Loan Interest Deduction - the availability for this benefit has been broadened and the earnings limits raised.For more information about these plans or to compare your state 529 plan with other states,go on the internet to... www.savingforcollege.com10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 24 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  26. 26. Education Funding A19New Scenario (10/19/2011 3:59:19 PM)The "Parents Share" bars indicate the parents share of the needed annual expenditures for the yearswhen each child is in school. The "Balance" line indicates the cumulative account value of monthlydeposits to the education fund. The "Lump Sum" line represents the initial deposit of a single lumpsum to an education fund and the projected growth or consumption of the account.Funding education costs with a lump sum investment now: Lump sum needed today to fund future costs $0 (No current educational funds available.) $0 Your education needs are overfunded $0 A21Monthly funding with level payments through the last year of college: Total level monthly payments to fund costs $0 With $0 available, no additional funding is required. NA Total deposits needed to fund college costs NA A2110/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 25 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  27. 27. Education Costs A20New Scenario (10/19/2011 3:59:19 PM)Providing educational funds can be one of lifes greatest financial burdens. Fortunately, it is an expense thatcan be planned. The following illustration uses a rate of return of 6.50% for computing both a lump-sum anda monthly deposit funding method. Parents Total CostsStudents Number Starting Annual Todays Inflated at Funding Amount RequiredName Age of Years Year Costs Dollars 5.50% Lump Sum Per MonthYevelle 2011 Totals $0 $0 $0Lump Sum:This is the amount of money that would need to be set aside immediately to cover all costs assuming that thefunds are spent at the beginning of each year. It is assumed that interest is added each year on the unusedbalance.Monthly Deposits:Instead of pre-funding the education costs with a lump sum deposit, you could elect to accumulate funds bymaking monthly additions to a savings or investment account. In this case a required monthly deposit iscomputed that would provide enough funds to cover costs through the last year of education expenses.Method #1 - Separate accounts for each child:The benefit of separate account funding method is that the funds may be segregated and identified for eachchild. The disadvantage is that this method generally will require a much larger monthly deposit in the earlyyears and smaller deposits in the later years. For example, if there are three children starting school atdifferent years, the deposits might look like this: Period 1 (The chart below is an example only and does not relate to your plan.) Child 1 = $400 per month Period 2 Child 1 = $350 per month Period 3 Child 1 = $300 per month Total deposits per month $1,050 $650 $300Method #2 - A single level payment amount used for all children:If you use a single monthly amount, then the payments would be level throughout the education years.This method is generally easier for most families to afford. (The chart below is an example only and does not relate to your plan.) Funding for all children using level payments = $625 per month10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 26 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  28. 28. Education Funding A21New Scenario (10/19/2011 3:59:19 PM)The following schedules illustrate the education funds needed, using an after tax rate of return or a 529education funding account. The options include separate accounts for each child, pre-funding with levelmonthly deposits through the last year, or a lump sum deposit. The results shown are not guarantees orestimates of future results but are for illustration purposes only. Annual Costs Monthly deposit Pre-Funded Accounts * Costs Parents Amount Required Lump Sum Monthly inflated at share at Using Separate Account NaN Year 5.50% 100.00% Accounts 6.50% 6.50% 2011 2012 2013 Totals 0 0Funding education costs with a lump sum investment now: Lump sum needed today to fund future costs (No current educational funds available.) $0 Your education needs are overfunded $0Monthly funding with level payments through the last year of college: Total level monthly payments to fund costs With $0 available, no additional funding is required. NA Total deposits needed to fund college costs NA * If the education funds do not earn at the rate illustrated, it would require either a larger amount of initial lump sum investment, larger monthly deposits to the education fund, or education loans to finance the costs.10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 27 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  29. 29. Education - Separate Accounts A22New Scenario (10/19/2011 3:59:19 PM)If separate accounts are maintained for each childs education funding, then the following report willillustrate the amount of expenses in each year, and both the immediate lump sum required and the amount ofmonthly deposits required to create an education fund for each child.The projection assumes use of a 529 college fund or an after tax rate of return on required funds at 6.50%. Child Yevelle Totals Monthly Per Year Deposits Lump Sum* by Year Monthly** 2011 2012 2013 Totals $0 Note: If existing education fund balances or monthly additions exist then the amounts shown above would be reduced accordingly. *Lump sum is the dollar amount needed today to fund the expenses assuming a 6.50% after-tax or tax-free return on education funds. **Monthly deposit needed from now through the last year of school to fund the expenses.10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 28 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  30. 30. Education Funding Sources A23New Scenario (10/19/2011 3:59:19 PM) Annual Sources of Funds Education Growth at From Fund Balance Annual Annual 6.50% Education From Ages Year (begin year) Additions Costs Year Funds Assets 1 2 3 4 6 7 32 28 2011 33 29 2012 34 30 2013 35 31 2014 36 32 2015 37 33 2016 38 34 2017 39 35 2018 40 36 2019 41 37 2020 42 38 2021 43 39 2022 44 40 2023 45 41 2024 46 42 2025 47 43 2026 48 44 2027 49 45 2028 50 46 2029 51 47 2030 52 48 2031 53 49 2032 54 50 2033 55 51 2034 56 52 2035 57 53 2036 58 54 2037 59 55 2038 60 56 2039 Note: The education funds are not included in the other expenses, the above amounts are for illustration only. Note: Education expenses are increased at 5.50% per year10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 29 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  31. 31. PersonalTaxAnalysisforDon TrumpetteNew Scenario (10/19/2011 3:59:19 PM)Report CoverInformationGoes HereTo EditGo To SettingsReport Defaults IMPORTANT: The illustrations or other information generated by this report regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. 10/19/2011
  32. 32. Income Tax Analysis of your taxable income sources, exemptions, deductions and Federal and State taxes due. The analysis includes phaseouts of itemized deductions and exemptions, where required, special dividend and capital gain rates, AMT and other items affecting your income tax and financial results. These reports are estimates only and should not be relied on for preparation of your income tax return.10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 31 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  33. 33. Income Tax Planning D1New Scenario (10/19/2011 3:59:19 PM)An important factor in any financial plan is consideration of the effect of income taxes, both now and in thefuture. Unfortunately there is a great deal of uncertainty about the nature of the income tax codes when itcomes to planning for the future. In recent years a number of tax changes have been passed by congress.EGTRRA In 2001 the Economic Growth and Tax Relief Reconciliation Act provided a $1.35 Trillion taxcut. Although this was a welcome event, it was accompanied by a "now you see it, now you dont"disappearing act. – New 10% rate introduced. – Remaining tax table rates reduced gradually until 2006. – Itemized deduction and exemption phaseout repealed gradually. – Child tax credit gradually increased from $500 to $1,000. – Marriage tax penalty gradually repealed. – Education incentives gradually improved. – Estate taxes gradually reduced and then finally repealed in 2010. – Retirement plan contributions liberalized over several years.The bad news was that effective in 2011, all these benefits are scheduled to revert back to the rules in effect in2001 unless Congress decides to make them permanent.JGTRRA Next came the Jobs and Growth Tax Relief Reconciliation Act of 2003. This further enhancedmany of the EGTRRA changes (but did not make anything permanent.) – Increased the child tax credit to $1,000 immediately. – Provided accelerated tax relief for married couples. – Increased the AMT exemption amounts (but not by much.) – Reduced the tax rates on dividends and capital gains to 5% or 15%.Tax Relief Act Most of the temporary provisions have been extended by the Tax Relief, UnemploymentInsurance Reauthorization, and Job Creation Act of 2010. – The lower tax rates were extended through 2012. – The $1,000 child tax credit was extended through 2012. – The standard deduction was enhanced to equalize married and joint filers. – FICA tax is reduced by 2% for 2011 and 2012.. – AMT relief extended through 2011. 2011 tax rates including extension under WFTRA Single Rates Joint Rates $0 10% $0 10% $8,500 15% $17,000 15% $34,500 25% $69,000 25% $83,600 28% $139,350 28% $174,400 33% $212,300 33% $379,150 35% $379,150 35%Of course, the flip side of these benefits is that they are still not permanent. Without specific action byCongress, in 2013 these will all revert back to the 2001 rules. The highly popular dividend and capital gainsrates of 0% for taxpayers at or below the 15% tax bracket or 15% rate for those in the 25% bracket or higherare scheduled to disappear after 2012.As we work with you to help achieve your personal and financial goals, we will consider the present andfuture tax implications and their effect on the suggestions we might make for you. The hard part is theanticipation that there will undoubtedly be additional future changes that cannot be accurately predicted now.10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 32 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  34. 34. Income Tax D2New Scenario (10/19/2011 3:59:19 PM)Income taxes can consume a substantial portion of your income. One of your objectives should be to controlthe amount of taxes you must pay through careful management of your income and investment portfolio. Thetax calculations are based on the 2010 tax tables.Estimated income and taxes for the current year: Tax Rates: Gross income $95,194 Adjustments (2,887) Adjusted Gross Income $92,307 Marginal tax rate = 15.00% Itemized or Standard deductions (28,837) (Combined Federal and State tax rates) Personal exemptions (11,100) Taxable income $52,370 Federal Income Tax 7,006 Effective tax rate = 15.69% FICA (social security) tax 8,477 (Taxes divided by Adjusted Gross Income) Other tax or credits (1,000) State income tax D3 Total Tax $14,48310/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 33 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.
  35. 35. Income Taxes D3New Scenario (10/19/2011 3:59:19 PM)The following calculations give an idea of the amount of taxes you might pay based on the incomeand asset information provided. These amounts are approximations only and the actual tax amountsmay be higher or lower than illustrated. INCOME: Gross Taxable Salaries and Wages $47,870 $47,870 G16,17 Interest 324 324 H1...H4 Schedule C (self employment) 47,000 47,000 G16 GROSS INCOME $95,194 Adjustments: Self Employment FICA $5,773 ($2,887) ADJUSTED GROSS INCOME $92,307 Itemized Deductions: Gross Allowed Mortgage interest 19,660 19,660 K1 Charitable contributions 1,000 1,000 G14 Medical expenses & premiums 8,200 1,277 G14 Property taxes 6,900 6,900 G14 Misc Itemized deductions 0 G14 Itemized deductions $28,837 (28,837) or Standard deductions $11,600 0 Personal exemptions ( 3 ) (11,100) TAXABLE INCOME $52,370 TAX SUMMARY: Federal Income Tax (Joint) $7,006 FICA (Social Security) & HI Tax 8,477 Other Taxes or (credits)* (1,000) TOTAL TAXES $14,483 Your Federal marginal tax bracket is 15.00 % . Your total taxes equal 15.69 % of your Adjusted Gross Income, and 27.65% of your Taxable income. ** The itemized deductions and/or personal exemptions were reduced based on phase-out provisions for high income taxpayers.10/19/2011 This report, and its hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Page 34 Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance.

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