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Sample report with_scenarios_and_survivor_needs[1]

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  • 1. Envision Presentation SMTom DeVol, Registered RepresentativeSammons Securities, LLC62 Harding Street, Newton, MA 02465617.964.6404Securities offered through Sammons Securities Company,Member FINRA/SIPCSample Report
  • 2. This is a Preliminary Report SMEnvision Susan & Jim Table Of Contents Cover Page 1 The Envision Process 5 Net Worth Statement 6 Net Worth By Type Graph 8 Net Worth By Person Graph 9 Insurance Summary 10 Liabilities Summary 11 Envision Action Plan Review - Client Notes 12 Profile Summary Data 15 Your Goals 19 The Investment Plan Result 20 Investment Plan Result for Your Goals 21 Recommended Investment Plan 23 Achieving Your Goals 25 Sensitivity Analysis 26 Current vs. Strategic Allocation Plan Results 27 Monitoring Your Recommended Investment Plan 28 Target Zone-Long Term 29 Sources of Funding 30 Goal Funding Summary - Recommended Investment Plan 31 Scenario Comparison 32 Survivor Needs Results 34 Introduction to Estate Planning 36 Introduction to Estate Taxes 38 Federal Estate Tax Changes 40 Strategic Allocation Investment Objectives 41 The Strategic Allocations 42 Current vs Strategic Allocation - Asset Class 4508/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 2 of 115
  • 3. This is a Preliminary Report SMEnvision Susan & Jim Current vs Strategic Allocation - Asset Class with Securities 46 Current vs Strategic Allocation - Asset Class Type 47 Current vs Strategic Allocation - Asset Class Type with Securities 48 Current vs Strategic Allocation - Asset Class Sub Type 49 Current vs Strategic Allocation - Asset Class Sub Type with Securities 51 Current vs Strategic Allocation - Asset Class Detail 53 Current vs Strategic Allocation - Asset Class Detail with Securities 55 Current vs Strategic Efficient Frontier 57 Account Summary 58 Range of Simulation Possible Outcomes 61 Growth Detail Graph 62 Growth Detail Percentile Rankings 63 Total Investment Plan Target Values - Recommended Investment Plan 67 Target Investment Plan Tax Treatment - Recommended Investment Plan 69 Target Taxable Investment Plan Value - Recommended Investment Plan 71 Target Tax Advantaged Investment Plan Values - Recommended Investment Plan 73 Summary of Cash Flows - Recommended Investment Plan 75 Cash Flow Detail - Contributions - Recommended Investment Plan 78 Cash Flow Detail - Income from Other Sources - Recommended Investment Plan 80 Cash Flow Detail - Withdrawals - Recommended Investment Plan 82 Investment Plan Assumptions 85 Disclosures 86 Portfolio Summary 93 Portfolio Summary - Security Detail 94 Portfolio Diversification 95 Portfolio Diversification - Security Detail 100 Realized Gain and Loss 105 Realized Gain and Loss - Security Detail 106 Unrealized Gain and Loss 10708/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 3 of 115
  • 4. This is a Preliminary Report SMEnvision Susan & Jim Unrealized Gain and Loss - Security Detail 108 Initial Investment (Gain/Loss) - Position 110 Initial Investment (Gain/Loss) - Lot 111 Understanding Your Portfolio 112 Market Commentary 11408/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 4 of 115
  • 5. This is a Preliminary Report SMEnvision Susan & JimThe value of the conversationThe Envision process SMIMPORTANT: The projections or other information Envision generates regarding the likelihood of various investment outcomes are hypothetical in nature, do notreflect actual investment results, and are not guarantees of future results. Results may vary with each use and over time.Envision methodology, selection criteria and key assumptions: Envisions simulation model incorporates assumptions on inflation, financial market returns, andrelationships between these variables based on an analysis of historical data. Using Monte Carlo simulations, Envision simulates thousands of potential outcomesover a lifetime of investing. The varying historical risk, return and correlation between the assets is based on indexes over several market cycles. Elements of thisreports presentations and simulation results are under license from Financeware Inc. U.S. Patents 7,562,040, 7,650,303 and 7,765,138. Other U.S. and internationalpatents pending. All Rights Reserved.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 5 of 115
  • 6. This is a Preliminary Report SMEnvision Susan & JimNet Worth StatementInvestment Assets Internal/ Joint & Account Description Taxation Jim Susan Total External DependentAccounts included in the Envision PlanJims PSP Deferred88888888 External Deferred $1,500,000.00 $0.00 $0.00 $1,500,000.00Susans IRA88888888 External Deferred $0.00 $250,000.00 $0.00 $250,000.00Johns 529 Plan Tax88888888 External Advantaged $130,000.00 $0.00 $0.00 $130,000.00 EducationSaras 529 Plan Tax88888888 External Advantaged $120,000.00 $0.00 $0.00 $120,000.00 EducationJoint Account88888888 External Taxable $250,000.00 $0.00 $0.00 $250,000.00Sub Total $2,000,000.00 $250,000.00 $0.00 $2,250,000.00Investment Assets Internal/ Joint & Account Description Taxation Jim Susan Total External DependentAccounts not included in the Envision PlanSub Total $0.00 $0.00 $0.00 $0.00Personal Assets Joint & Description Type Jim Susan Total DependentSports Collectibles* Collectibles $0.00 $0.00 $100,000.00 $100,000.00 Home/Real123 Home* $0.00 $0.00 $500,000.00 $500,000.00 EstateSub Total $0.00 $0.00 $600,000.00 $600,000.0008/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 6 of 115
  • 7. This is a Preliminary Report SMEnvision Susan & JimBusiness Assets Joint & Description Type Jim Susan Total DependentTaylor Dental* LLC $350,000.00 $0.00 $0.00 $350,000.00Sub Total $350,000.00 $0.00 $0.00 $350,000.00Total Assets $2,350,000.00 $250,000.00 $600,000.00 $3,200,000.00Liabilities Joint & Description Type Jim Susan Total Dependent123 Home Mortgage* Mortgage $0.00 $0.00 $-200,000.00 $-200,000.00Total Liabilities $0.00 $0.00 $-200,000.00 $ -200,000.00Net Worth $2,350,000.00 $250,000.00 $400,000.00 $3,000,000.00*This information is included for purposes of this Statement and is not included in the analysis of this Envision plan.This Net Worth statement represents a portfolio of securities and assets and liabilities owned by you based on our records of transactions processed through us or supplemental information supplied by you. This report may not include all accounts inyour household. The above statement does not in any way supersede your statements, policies or trade confirmations, which we consider the only official and accurate records of your accounts or policies. We rely on you to review the accuracy andcompleteness of this analysis. This statement may differ from the Firms profile information on your accounts.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 7 of 115
  • 8. This is a Preliminary Report SMEnvision Susan & JimNet Worth By Type GraphNet Worth Breakdown by Type $3,600,000 $3,200,000 $2,800,000 $2,400,000 $2,000,000 $1,600,000 $1,200,000 $800,000 $400,000 $0 ($400,000) Assets Liabilities Net Worth As s e t s Lia b ilit ie s Ne t W o r t h ( $ 3 ,2 0 0 ,0 0 0 ) ( - $ 2 0 0 ,0 0 0 ) ( $ 3 ,0 0 0 ,0 0 0 ) Personal Assets Mortgage Net Worth Business Assets Investment Assets08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 8 of 115
  • 9. This is a Preliminary Report SMEnvision Susan & JimNet Worth By Person GraphNet Worth Breakdown by Person $3,600,000 $3,200,000 $2,800,000 $2,400,000 $2,000,000 $1,600,000 $1,200,000 $800,000 $400,000 $0 ($400,000) Assets Liabilities Net Worth As s e t s Lia b ilit ie s Ne t W o r t h ( $ 3 ,2 0 0 ,0 0 0 ) ( - $ 2 0 0 ,0 0 0 ) ( $ 3 ,0 0 0 ,0 0 0 ) Jim Joint & Dependent Total Net Worth Susan Joint & Dependent08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 9 of 115
  • 10. This is a Preliminary Report SMEnvision Susan & JimInsurance Summary Death Annual Cash Loan Description Type Owner Insured Beneficiary Benefit Premium Value ValueGroup Term Group Jim Taylor Jim Taylor Susan Taylor $100,000 $0 $0 $0Total $100,000 $0 $0 $008/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 10 of 115
  • 11. This is a Preliminary Report SMEnvision Susan & JimLiabilities SummaryGeneral Liabilities Interest Monthly Description Borrower Type Balance Rate PaymentSub Total $0.00Mortgages Interest Monthly Year Description Borrower Loan Type Lender Balance Rate Payment Closed Wells Fargo123 Home Mortgage Joint 30 Yr Fixed 6.78% $-200,000.00 $1,450.00 2002 (Wachovia)Sub Total $-200,000.00Total Liabilities $-200,000.0008/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 11 of 115
  • 12. This is a Preliminary Report SMEnvision Susan & JimEnvision Action Plan Review - Client NotesCurrent Year Savings On Target Updated Amount _______________ Contribute $40,000 to Jims tax deferred savings - Jims Qualified Plan _______________ Contribute $15,000 to Susans tax deferred savings - Susans Qualified Plan _______________ Contribute $20,000 to Joint taxable savings - Taxible Savings Client Notes ___________________________________________________________________________________________ ___________________________________________________________________________________________Asset Allocation On Target As discussed, adjustments should be made to your current investment holdings to bring the allocation in line with the Conservative Growth portfolio08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 12 of 115
  • 13. This is a Preliminary Report SMEnvision Susan & Jim Current Conservative Growth International Equity (64.44%) Large Cap (28.00%) Long Term Fixed Income (11.11%) Mid Cap (10.00%) REIT (8.33%) Small Cap (8.00%) Other (13.33%) International Equity (10.00%) Cash Equivalent (2.78%) Emerging Market Equity (9.00%) Short Term Fixed Income (8.00%) Intermediate Fixed Inc (13.00%) Long Term Fixed Income (5.00%) High Yield Fixed Income (2.00%) REIT (2.00%) Commodities (3.00%) Cash Equivalent (2.00%) Average Return: 8.2% Average Return: 8.3% Downside Risk: -10.5% Downside Risk: -8.3% Conservative Growth: Growth investors do not seek account income and their primary objective is capital appreciation. Conservative Growth investors seek maximum growth consistent with a relatively modest degree of risk. They are willing to accept lower potential returns in exchange for lower risk. Equities may be a significant percentage of the account. The Current allocation indicates how an investors portfolio is allocated based on Wells Fargo Advisors asset classifications and current market value. Client Notes ___________________________________________________________________________________________ ___________________________________________________________________________________________Survivor Needs On Target Updated Amount _______________ Estimated Additional Insurance Needed on Jim: $770,000 Client Notes ___________________________________________________________________________________________ ___________________________________________________________________________________________08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 13 of 115
  • 14. This is a Preliminary Report SMEnvision Susan & JimAdditional Client Notes __________________________________________________________________________________________________________ __________________________________________________________________________________________________________ __________________________________________________________________________________________________________ __________________________________________________________________________________________________________ __________________________________________________________________________________________________________ "Current Year" is defined as the period of time from now until the owner of the cash flows next birthday. This Action Plan Review identifies the current years savings, asset allocation, withdrawals, goals, and income needs included in your Envision report, and also identifies the preceding years goals that have been retired. Please review your actual report for a detailed analysis of additional, future assumptions you have made which may be critical to the success of your plan. The information shown is based on asset class data through 05/2010. Risk and return figures are derived from both historical observation and standard investment industry statistical calculations. For risk and return information, please see the Capital Market Assumptions table in the disclosure section of this report. Downside risk represents the potential loss the allocation could experience in a severe market downturn. The portfolio faces approximately a 5% chance each year of experiencing a loss this large or larger. They are for illustrative purposes and are not designed to predict actual performance. Past performance is not a guarantee of future results.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 14 of 115
  • 15. This is a Preliminary Report SMEnvision Susan & JimProfile Summary DataPersonal Information Projected Annual Social Security (First Year)Name Date of Birth Annual Income Ideal/Accept.Jim Taylor 01/01/1958 $150,000 $20,838 /$21,364Susan Taylor 01/01/1958 $60,000 $14,520 /$15,848Life GoalsDescription Ideal Value Acceptable ValueRetirement Age - Jim 55 62Retirement Age - Susan 55 62Retirement Spending Need (Annual Increase) $180,000 (2.50%) $120,000 (2.50%)Estate Goal $2,000,000 $500,000 ++Education GoalsName Date of Birth Ages Institution Ideal Value Acceptable Value Annual IncreaseJohn 01/01/1993 18 - 21 Brown University $47,740 $47,740 2.50%Sara 01/01/1996 18 - 21 University of Virginia $17,962 $17,962 2.50%Other Goals Annual Amount Start Age End Age Annual IncreaseDescription Net or Gross Owner Ideal/Accept. Ideal/Accept. Ideal/Accept. Ideal/Accept. $400,000 /Executive RV Net Jim Ret. / Ret. Ret. / Ret. 2.50% / 2.50% $250,000 $20,000 /Travel Net Susan 60 / 60 70 / 65 2.50% / 2.50% $10,000Other Income Annual Amount Net or Start Age End Age Annual IncreaseDescription Owner Tax Status Ideal/Accept. Gross Ideal/Accept. Ideal/Accept. Ideal/Accept.Partnership Buyout $75,000 / $75,000 Gross Jim Taxable 62 / 62 66 / 66 2.50% / 2.50%08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 15 of 115
  • 16. This is a Preliminary Report SMEnvision Susan & JimOther Income Annual Amount Net or Start Age End Age Annual IncreaseDescription Owner Tax Status Ideal/Accept. Gross Ideal/Accept. Ideal/Accept. Ideal/Accept. $100,000 /Jims Whole Life Benefit Net Jim Taxable Death / Death Death / Death 0.00% / 0.00% $100,000Savings Annual Amount Start Age End Age Annual IncreaseDescription Owner Tax Status Ideal/Accept. Ideal/Accept. Ideal/Accept. Ideal/Accept. $40,000 /Jims Qualified Plan Jim Deferred 52 / 52 Ret. / Ret. 2.50% / 2.50% $40,000 $15,000 /Susans Qualified Plan Susan Deferred 52 / 52 Ret. / Ret. 2.50% / 2.50% $15,000 $20,000 /Taxible Savings Joint Taxable 52 / 52 Ret. / Ret. 0.00% / 0.00% $30,000LiabilitiesDescription Borrower Type Interest Rate Balance Monthly Payment123 Home Mortgage Joint Mortgage 6.78% $200,000 $1,450Total Liabilities : $200,00008/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 16 of 115
  • 17. This is a Preliminary Report SMEnvision Susan & JimRisk & Return*Income Requirements +++Not expecting to need income from the portfolio for several years; investment strategy should emphasize growth. Average Investment Equity Downside Return (as Description Objective % Risk of 05/2010) Growth and Income investors seek current income, but also seek income and capital Conservative growth over time. These investors are willing to forgo a portion of current income in order Ideal to seek potential future growth. Conservative Growth and Income investors seek the Growth & 35.0% -4.1% 6.8% Portfolio maximum growth and income consistent with a relatively modest degree of risk. They Income are willing to accept lower potential returns in exchange for lower risk. Equities, generally dividend paying equities, may be some percentage of the account. Growth investors do not seek account income and their primary objective is capital Acceptable Moderate 83.0% -11.0% 9.1% appreciation. Moderate Growth investors seek to balance potential risk of capital loss with Portfolio Growth their goal of higher potential growth. Equities may be the primary asset in the account.Priorities Reduce Retirement Reduce Size Take More Goal Retire Later Save More Spending of Estate Investment Risk To achieve our early retirement age(s), we N/A would be willing to: To achieve our higher spending target in X N/A X retirement, we would prefer to: In order to achieve our larger estate goal, we N/A would be willing to: To reduce the investment risk in our X X X N/A portfolio, we would be willing to: We would like to reduce our current savings X X N/A and to achieve this we would prefer to: To meet our education funding goals, we would be willing to: To meet our other goals, we would be willing X X X to:08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 17 of 115
  • 18. This is a Preliminary Report SMEnvision Susan & Jim++ All numbers provided for Education Goal calculations are hypothetical in nature and are based on assumptions entered into the calculation. You should check the figures to ensure they are reasonable and you should consult with the institution onthe accuracy of the information before making any investment decisions based on this information.+++ Although you may have indicated that you have no need for current income from your portfolio, we recognize that you may wish to select a strategic allocation with an income component since it may be more aligned with your risk tolerance.Generally, income producing portfolios generate a lower investment return but correspondingly have a lower investment risk.* The information shown is based on asset class data through 05/2010. Risk and return figures are derived from both historical observation and standard investment industry statistical calculations. For risk and return information, please see theCapital Market Assumptions table in the disclosure section of this report. Downside risk represents the potential loss the allocation could experience in a severe market downturn. The portfolio faces approximately a 5% chance each year ofexperiencing a loss this large or larger. They are for illustrative purposes and are not designed to predict actual performance. Past performance is not a guarantee of future results.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 18 of 115
  • 19. This is a Preliminary Report SMEnvision Susan & JimYour Goals Ideal Acceptable Retirement Age Jim 55 62 Susan 55 62 Annual Retirement Spending $180,000 $120,000 Other Goals Executive RV $400,000 (Age Ret.-Ret.) $250,000 (Age Ret.-Ret.) Travel $20,000 (Age 60-70) $10,000 (Age 60-65) Annual Education Goals John $47,740 (Age 18-21) $47,740 (Age 18-21) Sara $17,962 (Age 18-21) $17,962 (Age 18-21) Annual Savings Jims Qualified Plan $40,000 (Age 52-Ret.) $40,000 (Age 52-Ret.) Susans Qualified Plan $15,000 (Age 52-Ret.) $15,000 (Age 52-Ret.) Taxible Savings $20,000 (Age 52-Ret.) $30,000 (Age 52-Ret.) Other Sources of Income (Annual) Partnership Buyout $75,000 (Age 62-66) $75,000 (Age 62-66) Jims Whole Life Benefit $100,000 (Age Death-Death) $100,000 (Age Death-Death) Annual Social Security Jim $20,838 (Age 62-Death) $21,364 (Age 62-Death) Susan $14,520 (Age 62-Death) $15,848 (Age 62-Death) Susan $6,318 (Age 93-End) $5,516 (Age 93-End) Estate Goal $2,000,000 $500,000 Strategic Allocation Conservative Growth & Income Moderate Growth Percent in Equities 35.0% 83.0% Downside Risk -4.1% -11.0%The Strategic Allocation has been derived from what you indicated was your Ideal or Acceptable tolerance for Downside Risk. The Disclosures include more detailed information.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 19 of 115
  • 20. This is a Preliminary Report SMEnvision Susan & JimThe Investment Plan Result Below Target Target Zone Above Target <50 75 90 100What is the Investment Plan Result? • Below TargetCentral to the Envision process is the Investment Plan Result calculation. An Investment Plan Result below 75 means that your investment planWith Envision, we simultaneously evaluate your goals, your strategic asset would not have achieved your goals in a large number of the historicalallocation and your assets to determine the likelihood that your investment simulations. You may wish to consider adjustments to your goals, yourplan would have achieved your goals. The Envision process subjects your allocation and/or your investments.investment plan to a sophisticated stress testing process that simulates 1,000 • Target Zonemarket environments, both good and bad. Your Investment Plan Result isthe percentage of the 1,000 simulations in which your goals were met for An Investment Plan Result between 75 and 90 means that in many of theyour Ideal, Acceptable, and Recommended Investment Plan. Remember, historical simulations your investment plan would have achieved yourthe simulations do not represent actual investment performance and goals. You might be required to make changes to your Recommendedare only intended to provide you with an opportunity to evaluate your Investment Plan in order to stay within your Target Zone, but thoseRecommended Investment Plan, including your asset allocation. The changes are likely to be minor.Disclosures include more detailed information regarding the simulation • Above Targetprocess. An Investment Plan Result above 90 means that in a significantly large number of historical simulations your investment plan would have achieved or exceeded your goals. You may wish to consider a less risky allocation, or an adjustment to your goals.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 20 of 115
  • 21. This is a Preliminary Report SMEnvision Susan & JimInvestment Plan Result For Your Goals Below Target Target Zone Above Target <50 75 90 100 <=50 99 Ideal AcceptableRetirement Age Jim 55 62 Susan 55 62Annual Retirement Spending $180,000 $120,000Other Goals Executive RV $400,000 (Age Ret.-Ret.) $250,000 (Age Ret.-Ret.) Travel $20,000 (Age 60-70) $10,000 (Age 60-65)Annual Education Goals John $47,740 (Age 18-21) $47,740 (Age 18-21) Sara $17,962 (Age 18-21) $17,962 (Age 18-21)Annual Savings Jims Qualified Plan $40,000 (Age 52-Ret.) $40,000 (Age 52-Ret.) Susans Qualified Plan $15,000 (Age 52-Ret.) $15,000 (Age 52-Ret.) Taxible Savings $20,000 (Age 52-Ret.) $30,000 (Age 52-Ret.)Other Sources of Income (Annual) Partnership Buyout $75,000 (Age 62-66) $75,000 (Age 62-66) Jims Whole Life Benefit $100,000 (Age Death-Death) $100,000 (Age Death-Death)Annual Social Security Jim $20,838 (Age 62-Death) $21,364 (Age 62-Death) Susan $14,520 (Age 62-Death) $15,848 (Age 62-Death) Susan $6,318 (Age 93-End) $5,516 (Age 93-End)Estate Goal $2,000,000 $500,00008/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 21 of 115
  • 22. This is a Preliminary Report SMEnvision Susan & Jim Below Target Target Zone Above Target <50 75 90 100 <=50 99 Ideal AcceptableStrategic Allocation Conservative Growth & Income Moderate Growth Percent in Equities 35.0% 83.0% Downside Risk -4.1% -11.0%Investment Plan Result 0 9908/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 22 of 115
  • 23. This is a Preliminary Report SMEnvision Susan & JimRecommended Investment Plan Below Target Target Zone Above Target <50 75 90 100 <=50 99 82 Ideal Recommended AcceptableRetirement Age Jim 55 60 62 Susan 55 60 62Annual Retirement Spending $180,000 $145,000 $120,000Other Goals Executive RV $400,000 (Age Ret.-Ret.) $250,000 (Age Ret.-Ret.) $250,000 (Age Ret.-Ret.) Travel $20,000 (Age 60-70) $15,000 (Age 60-70) $10,000 (Age 60-65)Annual Education Goals John $47,740 (Age 18-21) $47,740 (Age 18-21) $47,740 (Age 18-21) Sara $17,962 (Age 18-21) $17,962 (Age 18-21) $17,962 (Age 18-21)Annual Savings Jims Qualified Plan $40,000 (Age 52-Ret.) $40,000 (Age 52-Ret.) $40,000 (Age 52-Ret.) Susans Qualified Plan $15,000 (Age 52-Ret.) $15,000 (Age 52-Ret.) $15,000 (Age 52-Ret.) Taxible Savings $20,000 (Age 52-Ret.) $20,000 (Age 52-Ret.) $30,000 (Age 52-Ret.)Other Sources of Income (Annual) Partnership Buyout $75,000 (Age 62-66) $75,000 (Age 62-66) $75,000 (Age 62-66) Jims Whole Life Benefit $100,000 (Age Death-Death) $100,000 (Age Death-Death) $100,000 (Age Death-Death)Annual Social Security Jim $20,838 (Age 62-Death) $21,316 (Age 62-Death) $21,364 (Age 62-Death) Susan $14,520 (Age 62-Death) $15,555 (Age 62-Death) $15,848 (Age 62-Death) Susan $6,318 (Age 93-End) $5,760 (Age 93-End) $5,516 (Age 93-End)Estate Goal $2,000,000 $1,000,000 $500,00008/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 23 of 115
  • 24. This is a Preliminary Report SMEnvision Susan & Jim Below Target Target Zone Above Target <50 75 90 100 <=50 99 82 Ideal Recommended Acceptable ConservativeStrategic Allocation Conservative Growth & Income Moderate Growth Growth (Age Now-End) Percent in Equities 35.0% 67.0% 83.0% Downside Risk -4.1% -8.3% -11.0%Investment Plan Result 0 82 99Conservative GrowthGrowth investors do not seek account income and their primary objective is capital appreciation. Conservative Growth investors seek maximum growth consistent with a relatively modest degree of risk. They are willing to accept lower potentialreturns in exchange for lower risk. Equities may be a significant percentage of the account. Please refer to the Disclosures for more detailed information.This information is not used to update your client account profile information. Please contact your Financial Advisor if any changes are needed to update your client profile.Your Recommended Investment Plan Result was calculated assuming that you will modify your strategic asset allocations, if applicable, throughout the life of the plan. The recommended strategic asset allocation reflected on this page illustrates thestrategic allocation you plan to implement now. Future allocations are illustrated on the Age Based Asset Allocation page.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 24 of 115
  • 25. This is a Preliminary Report SMEnvision Susan & JimAchieving Your GoalsRetirement Age Jim 60 Susan 60 $3,680,000Annual Retirement Spending $145,000 $3,470,000Other Goals $3,260,000 Executive RV $250,000 (Age Ret.-Ret.) Investments Travel $15,000 (Age 60-70) $3,050,000 $2,840,000Annual Education Goals John - Brown University $47,740 (Age 18-21) $2,630,000 Sara - University of Virginia $17,962 (Age 18-21) $2,420,000Annual Savings $2,210,000 Jims Qualified Plan $40,000 (Age 52-Ret.) $2,000,000 Susans Qualified Plan $15,000 (Age 52-Ret.) $1,790,000 Taxible Savings $20,000 (Age 52-Ret.) 53 54 55 56 57 58Other Sources of Age (Susan Taylor)Income (Annual) Partnership Buyout $75,000 (Age 62-66) Above Target (90th Percentile) Jims Whole Life Benefit $100,000 (Age Death-Death) Below Target (75th Percentile)Social Security Investment As Of Date Jim $21,316 (Age 62-Death) Susan $15,555 (Age 62-Death) Susan $5,760 (Age 93-End) The Target Zone may help you evaluate your Recommended Investment Plan. It does not represent a projection of future portfolio values. The Target ZoneEstate Goal $1,000,000 graph is shown in Actual dollars. Conservative The Target Zone and Plan Result is reflective of the strategic recommendedStrategic Allocation Growth (Age Now-End) asset allocation. If your current portfolio is not consistent with the Percent in Equities 67.0% recommended allocation, then your probability of success may be significantly Downside Risk -8.3% different than the Plan Result displayed.Investment Plan Result 82This information is not used to update your client account profile information. Please contact your Financial Advisor if any changes are needed to update your client profile.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 25 of 115
  • 26. This is a Preliminary Report SMEnvision Susan & JimSensitivity AnalysisResults shown in Actual dollars 42% $3,680,000 32% $3,470,000 16% 34% $3,260,000 $3,050,000 Investments $2,840,000 48% $2,630,000 72% $2,420,000 24% $2,210,000 20% $2,000,000 12% $1,790,000 53 54 55 56 57 58 Age (Susan Taylor) Above Target (90th Percentile) Below Target (75th Percentile) Investment As Of Date At 1 year At 3 years At 5 years Probability of being above the Target Zone 16 % 32 % 42 % Investment Value greater than $2,752,667 $3,205,180 $3,650,180 Probability of being below the Target Zone 12 % 20 % 24 % Investment Value less than $2,255,125 $2,597,239 $3,045,109 Probability of being out of the Target Zone 28 % 52 % 66 % Probability of being in the Target Zone 72 % 48 % 34 %Envision allows you to track the value of your portfolio over time as it relates to the Target Zone. As markets change, and as your personal goals and objectives change, you may see your portfolio value move out of the Target Zone. This SensitivityAnalysis shows the probability of being both below and above the Target Zone over a one, three and five year period.If your portfolio value happens to move out of the Target Zone, this is an opportunity to discuss what changes may have occurred in the market, or what has changed in your life based on the recommendations in the plan. As part of the Envisionreview process, you and your Financial Advisor may want to make adjustments to move you back into the Target Zone and give you reasonable confidence in achieving your goals.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 26 of 115
  • 27. This is a Preliminary Report SMEnvision Susan & JimCurrent vs Strategic Allocation - Plan ResultsCurrent Allocation Plan Result: 77 Strategic Allocation Plan Result: 82 Current Conservative Growth International Equity (64.44%) Large Cap (28.00%) Long Term Fixed Income (11.11%) Mid Cap (10.00%) REIT (8.33%) Small Cap (8.00%) Other (13.33%) International Equity (10.00%) Cash Equivalent (2.78%) Emerging Market Equity (9.00%) Short Term Fixed Income (8.00%) Intermediate Fixed Inc (13.00%) Long Term Fixed Income (5.00%) High Yield Fixed Income (2.00%) REIT (2.00%) Commodities (3.00%) Cash Equivalent (2.00%) Average Return: 8.2% Average Return: 8.3% Downside Risk: -10.5% Downside Risk: -8.3%Important Information: This page illustrates how your plan result may differ if you do not adopt the recommended strategic allocation. The current allocation planresult assumes that your current allocation will remain unchanged over the duration of the plan. The strategic allocation plan result assumes that you implement therecommended allocation and any future age-based allocations if they were included in the plan. There is no assurance that the recommended portfolios objectiveswill be obtained.Current Allocation indicates how an investors portfolio is allocated based on Wells Fargo Advisors asset classifications and current market valueStrategic Allocation illustrates how much of an investors portfolio should be allocated to the various asset classes based on the recommended investment plan.The information shown is based on asset class data through 05/2010. Risk and return figures are derived from both historical observation and standard investment industry statistical calculations. For risk and return information, please see theCapital Market Assumptions table in the disclosure section of this report. Downside risk represents the potential loss the allocation could experience in a severe market downturn. The portfolio faces approximately a 5% chance each year ofexperiencing a loss this large or larger. They are for illustrative purposes and are not designed to predict actual performance. Past performance is not a guarantee of future results.Totals may not equal calculated amounts due to rounding differences.The Disclosures include definitions of the terms on this page and other detailed information.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 27 of 115
  • 28. This is a Preliminary Report SMEnvision Susan & JimMonitoring Your Recommended Investment PlanRecommended 08/20/2010Jims Retirement Age 60Susans Retirement Age 60Annual Retirement Spending $145,000Estate Size $1,000,000 ConservativeStrategic Allocation Growth + $75,000Current Year SavingsOther Income - Jims Whole Life $100,000Benefit - JimOther Income - Partnership Buyout - $75,000JimInvestment Value $2,250,000Other Goal - Executive RV - Jim $250,000Other Goal - Travel - Susan $15,000Education Goals - Brown University - $47,740John TaylorEducation Goals - University of $17,962Virginia - Sara TaylorInvestment Plan Result 82* Cash flows are inflated once per year on the anniversary of the investment plan’s creation date. The inflating of cash flows is necessary to keep goals, savings, other income, etc. up to date with their specified inflation rates.+ This total does not include savings cash flows that start in the future. If future savings cash flows exist, they are included in the Envision analysis.The table above indicates your Recommended Investment Plan and how changes to your goals and Investment Value have affected the Investment Plan Result over time. Investment Value includes assets currently held in accounts with our firm aswell as assets held at other firms. Values of assets held at other firms are based on information provided by you, and may not reflect current market value.The Recommended Investment Plan assumes you implement the Strategic or Custom Allocation and includes expectations about savings and spending patterns that you provided. Please be sure to inform us of any changes to your goals, savingsand spending patterns and changes in the market value of assets held at other firms.Your Recommended Investment Plan Result was calculated based on all of the information contained within your recommended plan as of the date in the column header.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 28 of 115
  • 29. This is a Preliminary Report SMEnvision Susan & JimTarget Zone-Long TermResults shown in Actual dollars $6,140,000 $5,680,000 $5,220,000 $4,760,000 Investments $4,300,000 $3,840,000 $3,380,000 $2,920,000 $2,460,000 $2,000,000 $1,540,000 53 59 65 71 77 83 89 95 101 Age (Susan Taylor) Above Target (90th Percentile) Below Target (75th Percentile) Investment As Of DateThe Target Zone and Plan Result is reflective of the strategic recommended asset allocation. If your current portfolio is not consistent with the recommended allocation,then your probability of success may be significantly different than the Plan Result displayed.Monitoring Your Progress...Investment markets, your financial goals, and your priorities can change over time. The Envision process recognizes that throughout your life things will change. Themonitoring process enables us to track your Investment Value so that, upon your request, we can monitor and review your progress towards your goals. Please besure to inform us of updates to your situation, including changes to your goals and priorities, so that we can work with you to monitor and modify your RecommendedInvestment Plan.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 29 of 115
  • 30. This is a Preliminary Report SMEnvision Susan & JimSources of FundingAge 60 (Jim) Spending Needs at Age 60 Sources of Funding Investment Portfolio Need* Retirement Spending $ 176,668 None Specified (100.00%) Executive RV $ 304,601 Total $0 Travel $ 18,276 Investment Portfolio Need* = $ 499,545 Total $ 499,545Age 70 (Jim) Spending Needs at Age 70 Sources of Funding Social Security - Jim (12.04%) Retirement Spending $ 226,151 Social Security - Jim $ 30,046 Social Security - Susan (8.79%) Travel $ 23,395 Social Security - Susan $ 21,926 Investment Portfolio Need* (79.17%) Total $ 249,546 Total $ 51,972 Investment Portfolio Need* = $ 197,574Age 80 (Jim) Spending Needs at Age 80 Sources of Funding Social Security - Jim (13.29%) Retirement Spending $ 289,492 Social Security - Jim $ 38,462 Social Security - Susan (9.70%) Total $ 289,492 Social Security - Susan $ 28,068 Investment Portfolio Need* (77.01%) Total $ 66,530 Investment Portfolio Need* = $ 222,962*The Investment Portfolio Need is the net amount required from the investment portfolio after all other income sources have been applied to the spending need. It does not represent income provided bythe investment portfolio nor should it be assumed that the spending need can be met with portfolio withdrawals.The sources of funding cash flows are hypothetical in nature and should be used only as a guideline. This report may display spending needs and the corresponding sources of funding for up to fivedifferent years as determined by your financial advisor. The other income sources are based upon assumptions that you have provided. To determine how much the investment portfolio must provide inorder to meet spending needs, first, all available other income sources are matched against the spending need. If, all other income sources are not sufficient to meet the spending need, then the analysisassumes the remainder will be made up with the investment portfolio. This analysis does not consider Required Minimum Distributions or the potential need for leverage to be used.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 30 of 115
  • 31. This is a Preliminary Report SMEnvision Susan & JimGoal Funding Summary - Recommended Investment PlanResults shown in Actual dollars Social Security Estimated Taxable Portfolio Income Net Goal Funding Need Other Income Portfolio Withdrawal $450,000 $400,000 $350,000 $300,000 Income Need $250,000 $200,000 $150,000 $100,000 $50,000 $0 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 Age ( Jim )Goal Funding Summary reflects any Social Security and Other Income during retirement as well as estimated portfolio yield based off of the previous years estimated taxable ending value. EstimatedPortfolio Taxable Income is based on current yield assumptions and there is no assurance that they will be obtained. In addition, the portfolio withdrawals necessary to meet your Goal Funding Needs foryour Recommended Investment Plan are reflected. This is based upon information you provided. Because this information is likely to change over time, your actual cash flow experience will differ. Youshould periodically review this information with your Financial Advisor and discuss any changes to your goals and personal situation in order to keep your Recommended Investment Plan up-to-date.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 31 of 115
  • 32. This is a Preliminary Report SMEnvision Susan & JimScenario Comparison Below Target Target Zone Above Target <50 75 90 100 74 81 Scenario #1 - Gift to Scenario #2 - No LTC Scenario #3 - With LTC Northwestern University Coverage Coverage Retirement Age Jim 60 60 60 Susan 60 60 60 Annual Retirement Spending $145,000 $145,000 $145,000 Other Goals 4yr Stay in Nursing N/A $71,900 (Age 70 - 73) N/A Home Gift to NW University $100,000 (Age 60 - 60) N/A N/A LTC Premium N/A N/A $4,000 (Age 52 - Death) Executive RV $250,000 (Age Ret. - Ret.) $250,000 (Age Ret. - Ret.) $250,000 (Age Ret. - Ret.) Travel $15,000 (Age 60 - 70) $15,000 (Age 60 - 70) $15,000 (Age 60 - 70) Annual Education Goals John - Brown University $47,740 (Age 18-21) $47,740 (Age 18-21) $47,740 (Age 18-21) Sara - University of $17,962 (Age 18-21) $17,962 (Age 18-21) $17,962 (Age 18-21) Virginia Annual Savings Jims Qualified Plan $40,000 (Age 52 - Ret.) $40,000 (Age 52 - Ret.) $40,000 (Age 52 - Ret.) Susans Qualified Plan $15,000 (Age 52 - Ret.) $15,000 (Age 52 - Ret.) $15,000 (Age 52 - Ret.) Taxible Savings $20,000 (Age 52 - Ret.) $20,000 (Age 52 - Ret.) $20,000 (Age 52 - Ret.)08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 32 of 115
  • 33. This is a Preliminary Report SMEnvision Susan & Jim Below Target Target Zone Above Target <50 75 90 100 74 81 Scenario #1 - Gift to Scenario #2 - No LTC Scenario #3 - With LTC Northwestern University Coverage Coverage Other Sources of Income (Annual) Partnership Buyout $75,000 (Age 62 - 66) $75,000 (Age 62 - 66) $75,000 (Age 62 - 66) $100,000 (Age Death - $100,000 (Age Death - $100,000 (Age Death - Jims Whole Life Benefit Death) Death) Death) Annual Social Security Jim $21,316 (Age 62 - Death) $21,316 (Age 62 - Death) $21,316 (Age 62 - Death) Susan $15,555 (Age 62 - Death) $15,555 (Age 62 - Death) $15,555 (Age 62 - Death) Susan $5,760 (Age 93 - End) $5,760 (Age 93 - End) $5,760 (Age 93 - End) Estate Goal $1,000,000 $1,000,000 $1,000,000 Conservative Conservative Conservative Strategic Allocation Growth (Age Now-End) Growth (Age Now-End) Growth (Age Now-End) Percent in Equities 67.0% 67.0% 67.0% Downside Risk - 8.3% - 8.3% - 8.3% Investment Plan Result 81 74 81* Cash flows are inflated once per year on the anniversary of the investment plan’s creation date. The inflating of cash flows is necessary to keep goals, savings, other income, etc. up to date with their specified inflation rates.The Scenario Comparison is hypothetical and not your Recommended Investment Plan. It is designed to illustrate "what-if" scenarios. The information used to create these scenarios may or may not reflect your current situation or goals. Please referto your Envision Presentation for a Recommended Investment Plan that reflects your current situation and financial goals. Your Financial Advisor can work with you to create or modify your Recommended Investment Plan to suit your needs. Theinformation shown is based on asset class data through 05/2010. Risk and return figures are derived from both historical observation and standard investment industry statistical calculations. For risk and return information, please see the CapitalMarket Assumptions table in the disclosure section of this report. Downside risk represents the potential loss the allocation could experience in a severe market downturn. The portfolio faces approximately a 5% chance each year of experiencing aloss this large or larger. They are for illustrative purposes and are not designed to predict actual performance. Past performance is not a guarantee of future results.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 33 of 115
  • 34. This is a Preliminary Report SMEnvision Susan & JimSurvivor Goals - Susan SurvivesLiabilities to be Paid Immediately 123 Home Mortgage $200,000Final Expenses $10,000Decedents Annual Income Replacement $180,000 (Age Now-Ret.)Survivor Goals Retirement Age 60 Annual Retirement Spending $120,000 Estate Goal $500,000Education Goals Brown University - John $47,740 (Age 18-21) University of Virginia - Sara $17,962 (Age 18-21)Savings Susans Qualified Plan $15,000 (Age 52-Ret.)Other Sources of Income Partnership Buyout $75,000 (Age 62-66)Social Security Social Security Survivor Benefits + $35,817 Susans Retirement Benefit $19,898 (Age 62-Death)Strategic Allocation Conservative Growth Percent in Equities 67.0% Downside Risk - 8.3%Total Value of Investments $2,250,000Plan Result 82Survivor Needs ResultEstimated Total Coverage Needed $1,470,000Existing Insurance Policies on Jims Life $700,00008/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 34 of 115
  • 35. This is a Preliminary Report SMEnvision Susan & JimEstimated Additional Insurance Needed $770,000* Cash flows are inflated once per year on the anniversary of the investment plan’s creation date. The inflating of cash flows is necessary to keep goals, savings, other income, etc. up to date with their specified inflation rates.+ The Survivor Benefit amount shown here is for the first year only. Future benefits may be more or less.Important InformationEstimated Total Coverage Needed: Indicates the total of your existing insurance plus your additional insurance need.Existing Insurance Policies: Represents insurance coverage you identified as already having purchased.Estimated Additional Insurance Needed: Represents the additional death benefit needed to meet the specific Survivor Goals stated in this survivor section.You may have additional estate or business planning needs which are beyond the scope of this analysis. Please consult with your Financial Advisor for additionalanalysis related to these issues.The Survivor Needs page may include modified plan assumptions that anticipate the different needs you may have after the death of your spouse; your actualsituation may differ.In anticipation of your survivor need, this analysis may exclude certain accounts identified in your Recommended Investment Plan.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 35 of 115
  • 36. This is a Preliminary Report SMEnvision Susan & JimIntroduction to Estate PlanningWhether or not one is subject to the payment of estate taxes, there are several non-tax aspects to be considered when preparing for the eventual disposition ofproperty upon ones death. In most cases, a will or living trust, durable power of attorney, and advance medical directive are advisable, as well as the careful choicesabout beneficiaries, property ownership form, and life insurance. First, a look at the will, and how ownership and beneficiary selection come into play.What is a will?A will is a written document directing the disposition of the decedents property upon his or her death. Just about everyone needs a will. Why?• To name a personal guardian for your minor children• To name your executor• To leave property generally best left by a will, such as art, heirlooms and collectibles• To make specific bequestsWhat property cannot be transferred by will? Some of your most valuable assets will not pass under the terms of your will. The following property will be transferredbased on naming beneficiaries, by choosing to own property in joint tenancy, or creating a living trust.• Joint tenancy (with rights of survivorship) property• Pay on Death bank accounts• Transfer on Death securities accounts• Life insurance proceeds payable to a named beneficiary• Funds in retirement plans payable to a named beneficiary• Property in a living trustLegal Forms of OwnershipHow are your assets titled? Do you understand the tax impact? Here is a description of the most basic legal forms of ownership.• Individual Property Ownership. Individual property ownership is usually designated by the persons own name, such as "Joe Smith".• Tenants in Common. In a tenancy in common, two or more individuals own undivided interests in property. Usually all tenants in common own equal undivided interests in the property. When a tenant in common dies, their share of the property will pass to their heirs by will or state law.• Joint Tenants with Right of Survivorship (JTWROS). When a joint tenant who owns property subject to a right of survivorship dies, their interest passes in equal shares to the surviving joint tenants.• Tenants by the Entirety. This ownership form, available only for a husband and wife, in about half of the states, has the same survivorship characteristic as a joint tenancy with right of survivorship. Tenants by the entirety may afford additional creditor protection.• Community Property. In nine states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), a husband and wife may own property in the form of community property. Generally, property acquired during the marriage while the husband and wife lived in a community property state is treated as community property unless the property was acquired by inheritance or gift. Upon the death of the first spouse, their one-half interest in the community property passes to their heirs or distributes. The surviving spouse will automatically retain their one-half interest.Special Account DesignationsIn nearly all states, bank accounts and certain other types of financial arrangements can be titled so that at the death of the owner the account is automaticallypayable to a specified beneficiary. These forms of ownership are known as payable on death or POD (for bank accounts) or transfer on death or TOD (for securitiesaccounts). These types of ownership are typically used to reduce some administrative costs at death and to facilitate the distribution of assets.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 36 of 115
  • 37. This is a Preliminary Report SMEnvision Susan & JimLiving TrustsAn inter vivos or living trust is a revocable trust created during the lifetime of the grantor. The grantor places his or her property into a trust to be managed by atrustee for a specified period of time or until the death of the grantor.Living trusts are commonly used for the purpose of bypassing probate. However, the creation of a living trust may also protect against legal incompetency or incapacityof the grantor or the beneficiaries.There may be less expensive ways to avoid probate, such as joint tenancy and TOD account designations.For federal income tax purposes all income from the trust is taxed to the grantor at the grantors individual income tax rate, because the grantor is considered tobe the owner of the trust property.Durable Power of Attorney and Advance DirectiveThe last two documents that most individuals should consider in planning their estate are the durable power of attorney and the advance directive. A durable powerof attorney provides a trusted person power over your financial affairs for one who has become unable to manage them. When this kind of help is needed but noagent has been designated, a court will have to appoint and supervise someone, which is an expensive process.Advance directive (also called a living will) is used to indicate ones wishes about end-of-life medical treatment, in case one is unable to communicate this choice.Life InsuranceThe needs of the surviving family members should be considered as part of estate planning. Life insurance should be purchased by those on whom people dependfor support. Many different types or forms of insurance are available depending on the individuals needs and resources.This is for information purposes only and was obtained from sources we believe to be reliable. We have not independently verified this information and we do notwarrant that it is complete or accurate. This is not legal or tax advice. You should consult your legal and/or tax advisors for additional information. We disclaim allliability to any person for any loss caused by errors or omissions in this information.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 37 of 115
  • 38. This is a Preliminary Report SMEnvision Susan & JimIntroduction to Estate TaxesThe federal estate tax is designed to tax the property of a deceased person, and is usually payable nine months after the date of death. In order to assess the potentialimpact of this tax, one should review the components of the gross estate, and the subtractions available to reach the taxable estate value, and the level of amountswhich may be exempt from tax. State death taxes may be charged independently of the federal estate tax, and they can vary from state to state.Gross EstateThe gross estate includes all property of any description, wherever located, to the extent the decedent had any interest in the property at the time of death. It mayeven include property previously given away or over which the decedent had no control at the time of death. A recent financial statement should disclose most ofwhat comprises the gross estate, but the following list should suffice for obtaining an estimate of the gross estate:• Cash• Liquid assets, such as stocks and other securities• Real estate• Personal property, including household goods and collections• Business interests• Life insurance owned or insurance payable to estate and,• Employee benefits, including IRAsNote: Keep in mind in determining the gross estate, it is also important to determine how the assets are titled (separate, joint, community, etc.).Taxable EstateAlthough the actual calculation of the taxable estate amount can be complex, for estimation purposes begin with the gross estate amount. From this amount, subtract:• Administrative expenses (including funeral expenses)• Debts• Amounts left to a surviving spouse• Amounts left to charityto determine the decedents taxable estate.IMPORTANT:Federal estate taxes are scheduled to be repealed in 2010. However, many observers believe that Congress will not allow this tax to expire as scheduled. At the timethis section was written, Congress had not yet decided the fate of federal estate taxes. The discussion below assumes that Congress acts to extend 2009 estate taxrules into 2010. Be sure to check with your tax advisor to determine current estate tax rules for 2010.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 38 of 115
  • 39. This is a Preliminary Report SMEnvision Susan & JimThe Smaller Estate - Below the Federal ExclusionWhen one has less than the federal applicable exclusion, $3.5 million (under 2009 tax laws), in taxable property at death, federal estate taxes should not be anissue, although there may be state death taxes to consider. In most of these cases, effective estate planning includes a will or living trust, durable power of attorney,advance medical directive, and careful selection of beneficiaries.The Intermediate Estate - Married Couples with $3,500,000 to $7,000,000 (under 2009 tax laws)The intermediate estate refers only to married couples whose aggregated estates have a value in excess of one applicable exclusion amount but below twice theexclusion amount. A married couple with an intermediate sized estate may eliminate all federal estate tax with the use of "bypass planning", the usual form of whichinvolves an arrangement in which the first to die spouse places assets equal in value to his or her exemption in trust for the surviving spouse as income beneficiary.Note that in an intermediate estate, that similar results could be obtained by passing all property to the surviving spouse, but with provision for a "disclaimer trust".The disclaimer trust would come into being only if the surviving spouse disclaimed, or refused to accept, a portion of the estate under the will. When funded as aresult of such a disclaimer, the trust would function in exactly the same way as the bypass trust, except that the surviving spouse would decide exactly how muchproperty, if any, was to go into the trust.The Large Estate - Where Federal Estate Tax AppliesWith a large estate - over $3,500,000 for individuals and over $7,000,000 for married couples - federal estate tax will apply under the 2009 tax law. Accordingly, theuse of tax planning techniques beyond unified credit, and bypass planning is necessary to reduce or eliminate estate taxes. A large estate would apply to a singleindividual if he or she has an estate in excess of the applicable exclusion amount and to a married couple whose aggregate estate exceeds double the applicableexclusion amount. Here, beyond the unified credit and bypass planning, the suitable tools and techniques to consider include lifetime giving, life insurance trusts,and charitable trusts.This is for information purposes only and was obtained from sources we believe to be reliable. We have not independently verified this information and we do notwarrant that it is complete or accurate. This is not legal or tax advice. You should consult your legal and/or tax advisors for additional information. We disclaim allliability to any person for any loss caused by errors or omissions in this information.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 39 of 115
  • 40. This is a Preliminary Report SMEnvision Susan & JimFederal Estate Tax ChangesThe following table depicts the levels of federal estate tax charged on taxable estates of various sizes in several different years of death.Although the actual calculation of the taxable estate amount can be complex, for estimation purposes, begin with the gross estate amount: all property in which thedecedent had any interest at the time of death. From that amount, subtract: administrative expenses (including funeral expenses), debts, amounts left to a survivingspouse, amounts left to charity to determine the approximate taxable estate.Note: This table does not reflect state death taxes, which may be independent of the federal estate tax. Estate Tax Estimator *Year of Death 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011+Top Rate % 55 50 49 48 47 46 45 45 45 repealed 55Credit Exemption 675,000 1,000,000 1,000,000 1,500,000 1,500,000 2,000,000 2,000,000 2,000,000 3,500,000 repealed 1,000,000Estate Size Estate Tax Net of Credit$1,000,000 125,000 0 0 0 0 0 0 0 0 0 0$1,500,000 335,000 210,000 210,000 0 0 0 0 0 0 0 210,000$2,000,000 560,000 435,000 435,000 225,000 225,000 0 0 0 0 0 435,000$2,500,000 805,000 680,000 680,000 465,000 460,000 230,000 225,000 225,000 0 0 680,000$3,000,000 1,070,000 930,000 925,000 705,000 695,000 460,000 450,000 450,000 0 0 945,000$3,500,000 1,345,000 1,180,000 1,170,000 945,000 930,000 690,000 675,000 675,000 0 0 1,220,000$4,000,000 1,620,000 1,430,000 1,415,000 1,185,000 1,165,000 920,000 900,000 900,000 225,000 0 1,495,000$5,000,000 2,170,000 1,930,000 1,905,000 1,665,000 1,635,000 1,380,000 1,350,000 1,350,000 675,000 0 2,045,000$6,000,000 2,720,000 2,430,000 2,395,000 2,145,000 2,105,000 1,840,000 1,800,000 1,800,000 1,125,000 0 2,595,000$7,000,000 3,270,000 2,930,000 2,885,000 2,625,000 2,575,000 2,300,000 2,250,000 2,250,000 1,575,000 0 3,145,000$8,000,000 3,820,000 3,430,000 3,375,000 3,105,000 3,045,000 2,760,000 2,700,000 2,700,000 2,025,000 0 3,695,000$9,000,000 4,370,000 3,930,000 3,865,000 3,585,000 3,515,000 3,220,000 3,150,000 3,150,000 2,475,000 0 4,245,000$10,000,000 4,920,000 4,430,000 4,355,000 4,065,000 3,985,000 3,680,000 3,600,000 3,600,000 2,925,000 0 4,795,000*Based on the "Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA)"The Economic Growth and Tax Relief Reconciliation Act of 2001 is subject to a "Sunset Provision." Under the "Sunset Provision," in 2011, all tax law changes revertto year 2001 levels, unless Congress acts to extend 2009 rules, or 2010 rules, or create new rules for taxing estates.This is for information purposes only and was obtained from sources we believe to be reliable. We have not independently verified this information and we do notwarrant that it is complete or accurate. This is not legal or tax advice. You should consult your legal and/or tax advisors for additional information. We disclaim allliability to any person for any loss caused by errors or omissions in this information.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 40 of 115
  • 41. This is a Preliminary Report SMEnvision Susan & JimStrategic Allocation Investment ObjectivesConservative Income Moderate GrowthIncome investors seek a maximum amount of income given their risk tolerance,and are willing to forgo capital appreciation and growth of income. Conservative Growth investors do not seek account income and their primary objective isIncome investors seek the maximum amount of income consistent with a capital appreciation. Moderate Growth investors seek to balance potential riskmodest degree of risk. They are willing to accept a lower level of income in of capital loss with their goal of higher potential growth. Equities may be theexchange for lower risk. Higher risk investments, such as high yield bonds and primary asset in the account.some equities, are typically not a large percentage of the account. Long Term IncomeConservative Growth & Income Income investors seek a maximum amount of income given their risk tolerance,Growth and Income investors seek current income, but also seek income and and are willing to forgo capital appreciation and growth of income. Long Termcapital growth over time. These investors are willing to forgo a portion of Income investors seek a significant level of income, are financially able andcurrent income in order to seek potential future growth. Conservative Growth willing to risk losing a substantial portion of investment capital, and, due to theirand Income investors seek the maximum growth and income consistent with long term horizon or other factors, they employ higher risk, more aggressivea relatively modest degree of risk. They are willing to accept lower potential strategies that may offer higher potential income. Higher risk investments, suchreturns in exchange for lower risk. Equities, generally dividend paying equities, as high yield bonds and some equities, may be a significant percentage of themay be some percentage of the account. account.Conservative Growth Long Term Growth & IncomeGrowth investors do not seek account income and their primary objective is Growth and Income investors seek current income, but also seek income andcapital appreciation. Conservative Growth investors seek maximum growth capital growth over time. These investors are willing to forgo a portion of currentconsistent with a relatively modest degree of risk. They are willing to accept income in order to seek potential future growth. Long Term Growth and Incomelower potential returns in exchange for lower risk. Equities may be a significant investors seek a significant level of growth and income, are financially ablepercentage of the account. and willing to risk losing a substantial portion of investment capital, and due to their long term horizon or other factors they pursue high risk, more aggressiveModerate Income strategies that may offer higher potential returns. High yield bonds and equities, generally dividend paying equities, may be the primary assets in the account.Income investors seek a maximum amount of income given their risk tolerance,and are willing to forgo capital appreciation and growth of income. Moderate Long Term GrowthIncome investors seek to balance the potential risk of capital loss withincreased income potential. Higher risk investments, such as high yield bonds Growth investors do not seek account income and their primary objective isand some equities, may be some percentage of the account. capital appreciation. Long Term Growth investors seek a significant level of growth, are financially able and willing to risk losing a substantial portion ofModerate Growth & Income investment capital, and due to their long term horizon or other factors, they employ higher risk, more aggressive strategies that may offer higher potentialGrowth and Income investors seek current income, but also seek income and returns. Higher risk investments such as equities may be as much as 100%capital growth over time. These investors are willing to forgo a portion of current of the account.income in order to seek potential future growth. Moderate Growth and Incomeinvestors seek to balance the risk of capital loss with higher potential growth Your actual asset allocation may vary from the Strategic or Custom Allocation, based upon your individual circumstances.and income. High yield bonds and equities, generally dividend paying equities, There can be no guarantee that your investment goals will be reached by following a prescribed asset allocation model.may be a significant percentage of the account.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 41 of 115
  • 42. This is a Preliminary Report SMEnvision Susan & JimThe Strategic AllocationsConservative Income Conservative Growth & IncomeAverage Return: 5.0% Average Return: 6.8%Downside Risk: -1.5% Downside Risk: -4.1% Large Cap (2.00%) Large Cap (14.00%) Mid Cap (2.00%) Mid Cap (4.00%) International Equity (2.00%) Small Cap (4.00%) Short Term Fixed Income (30.00%) International Equity (6.00%) Intermediate Fixed Inc (40.00%) Emerging Market Equity (4.00%) Long Term Fixed Income (5.00%) Short Term Fixed Income (10.00%) Intl Fixed Income (5.00%) Intermediate Fixed Inc (25.00%) Emerging Market Debt (2.00%) Long Term Fixed Income (18.00%) High Yield Fixed Income (4.00%) Intl Fixed Income (3.00%) REIT (3.00%) Emerging Market Debt (3.00%) Cash Equivalent (5.00%) High Yield Fixed Income (4.00%) REIT (3.00%) Cash Equivalent (2.00%) Conservative Growth Average Return: 8.3% Downside Risk: -8.3% Large Cap (28.00%) Mid Cap (10.00%) Small Cap (8.00%) International Equity (10.00%) Emerging Market Equity (9.00%) Short Term Fixed Income (8.00%) Intermediate Fixed Inc (13.00%) Long Term Fixed Income (5.00%) High Yield Fixed Income (2.00%) REIT (2.00%) Commodities (3.00%) Cash Equivalent (2.00%)08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 42 of 115
  • 43. This is a Preliminary Report SMEnvision Susan & Jim Moderate GrowthModerate Income Average Return: 9.1%Average Return: 6.2% Downside Risk: -11.0%Downside Risk: -3.2% Large Cap (26.00%) Mid Cap (14.00%) Large Cap (11.00%) Small Cap (14.00%) Mid Cap (2.00%) International Equity (16.00%) Small Cap (2.00%) Emerging Market Equity (11.00%) International Equity (4.00%) Short Term Fixed Income (3.00%) Short Term Fixed Income (20.00%) Intermediate Fixed Inc (4.00%) Intermediate Fixed Inc (25.00%) Long Term Fixed Income (3.00%) Long Term Fixed Income (10.00%) High Yield Fixed Income (2.00%) Intl Fixed Income (5.00%) REIT (2.00%) Emerging Market Debt (7.00%) Commodities (3.00%) High Yield Fixed Income (9.00%) Cash Equivalent (2.00%) REIT (3.00%) Cash Equivalent (2.00%) Long Term IncomeModerate Growth & Income Average Return: 6.9%Average Return: 7.8% Downside Risk: -5.2%Downside Risk: -7.1% Large Cap (12.00%) Mid Cap (4.00%) Large Cap (23.00%) Small Cap (4.00%) Mid Cap (8.00%) International Equity (6.00%) Small Cap (6.00%) Short Term Fixed Income (7.00%) International Equity (7.00%) Intermediate Fixed Inc (20.00%) Emerging Market Equity (6.00%) Long Term Fixed Income (15.00%) Short Term Fixed Income (5.00%) Intl Fixed Income (5.00%) Intermediate Fixed Inc (17.00%) Emerging Market Debt (10.00%) Long Term Fixed Income (8.00%) High Yield Fixed Income (12.00%) Intl Fixed Income (3.00%) REIT (3.00%) Emerging Market Debt (4.00%) Cash Equivalent (2.00%) High Yield Fixed Income (8.00%) REIT (3.00%) Cash Equivalent (2.00%)08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 43 of 115
  • 44. This is a Preliminary Report SMEnvision Susan & Jim The information shown is based on asset class data through 05/2010. Risk and return figures are derived from bothLong Term Growth & Income historical observation and standard investment industry statistical calculations. For risk and return information, please see the Capital Market Assumptions table in the disclosure section of this report. Downside risk represents the potentialAverage Return: 8.8% loss the allocation could experience in a severe market downturn. The portfolio faces approximately a 5% chance each year of experiencing a loss this large or larger. They are for illustrative purposes and are not designed to predict actualDownside Risk: -10.4% performance. Past performance is not a guarantee of future results. Large Cap (29.00%) Mid Cap (12.00%) Small Cap (10.00%) International Equity (10.00%) Emerging Market Equity (8.00%) Intermediate Fixed Inc (5.00%) Long Term Fixed Income (3.00%) Intl Fixed Income (3.00%) Emerging Market Debt (5.00%) High Yield Fixed Income (10.00%) REIT (3.00%) Cash Equivalent (2.00%)Long Term GrowthAverage Return: 9.7%Downside Risk: -12.8% Large Cap (24.00%) Mid Cap (16.00%) Small Cap (16.00%) International Equity (22.00%) Emerging Market Equity (15.00%) REIT (2.00%) Commodities (3.00%) Cash Equivalent (2.00%)08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 44 of 115
  • 45. This is a Preliminary Report SMEnvision Susan & JimCurrent vs Strategic Allocation - Asset Class Current Conservative Growth Equity (72.78%) Equity (67.00%) Fixed Income (11.11%) Fixed Income (28.00%) Cash (2.78%) Alternative Investment (3.00%) Other (13.33%) Cash (2.00%) Average Return: 8.2% Average Return: 8.3% Downside Risk: -10.5% Downside Risk: -8.3%Long PositionsAsset Class Current Strategic DifferenceEquity $ 1,637,500.00 72.78% $ 1,507,500.00 67.00% $ - 130,000.00 - 5.78%Fixed Income $ 250,000.00 11.11% $ 630,000.00 28.00% $ 380,000.00 16.89%Alternative Investment $ 0.00 0.00% $ 67,500.00 3.00% $ 67,500.00 3.00%Cash $ 62,500.00 2.78% $ 45,000.00 2.00% $ - 17,500.00 - 0.78%Other $ 300,000.00 13.33% $ 0.00 0.00% $ - 300,000.00 - 13.33%Total: $ 2,250,000.00 100.00% $ 2,250,000.00 100.00% $ 0.00 0.00%Current Allocation indicates how an investors portfolio is allocated based on Wells Fargo Advisors asset classifications and current market valueStrategic Allocation illustrates how much of an investors portfolio should be allocated to the various asset classes based on the recommended investment plan.The information shown is based on asset class data through 05/2010. Risk and return figures are derived from both historical observation and standard investment industry statistical calculations. For risk and return information, please see theCapital Market Assumptions table in the disclosure section of this report. Downside risk represents the potential loss the allocation could experience in a severe market downturn. The portfolio faces approximately a 5% chance each year ofexperiencing a loss this large or larger. They are for illustrative purposes and are not designed to predict actual performance. Past performance is not a guarantee of future results.Totals may not equal calculated amounts due to rounding differences.The Disclosures include definitions of the terms on this page and other detailed information.Market Values are based on closing prices and positions as of 2/19/2010 for security level holdings.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 45 of 115
  • 46. This is a Preliminary Report SMEnvision Susan & JimCurrent vs Strategic Allocation - Asset Class with SecuritiesLong PositionsAsset Class Type Current Strategic DifferenceEquity $ 1,637,500.00 72.78% $ 1,507,500.00 67.00% $ - 130,000.00 - 5.78% International Equity $ 1,450,000.00 64.44% REIT Equity $ 187,500.00 8.33%Fixed Income $ 250,000.00 11.11% $ 630,000.00 28.00% $ 380,000.00 16.89% Long Term Taxable Fixed Income $ 250,000.00 11.11%Alternative Investment $ 0.00 0.00% $ 67,500.00 3.00% $ 67,500.00 3.00%Cash $ 62,500.00 2.78% $ 45,000.00 2.00% $ - 17,500.00 - 0.78% Cash Equivalent $ 62,500.00 2.78%Other $ 300,000.00 13.33% $ 0.00 0.00% $ - 300,000.00 - 13.33% Other $ 300,000.00 13.33%Total : $ 2,250,000.00 100.00% $ 2,250,000.00 100.00% $ 0.00 0.00%Totals may not equal calculated amounts due to rounding differences.The Disclosures include definitions of the terms on this page and other detailed information. The securities detail can include information that you have provided and information based on our records. Our firm assumes no responsibility for theaccuracy or completeness of the information you provided.Market Values are based on closing prices and positions as of 2/19/2010 for security level holdings.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 46 of 115
  • 47. This is a Preliminary Report SMEnvision Susan & JimCurrent vs Strategic Allocation - Asset Class Type Current Conservative Growth International Equity (64.44%) Domestic Equity (46.00%) Domestic Fixed Income (11.11%) International Equity (19.00%) Alternative Income (8.33%) Domestic Fixed Income (26.00%) Other (13.33%) Alternative Income (4.00%) Cash Equivalent (2.78%) Alternative Investment (3.00%) Cash Equivalent (2.00%) Average Return: 8.2% Average Return: 8.3% Downside Risk: -10.5% Downside Risk: -8.3%Long PositionsAsset Class Type Current Strategic DifferenceDomestic Equity $ 0.00 0.00% $ 1,035,000.00 46.00% $ 1,035,000.00 46.00%International Equity $ 1,450,000.00 64.44% $ 427,500.00 19.00% $ - 1,022,500.00 - 45.44%Domestic Fixed Income $ 250,000.00 11.11% $ 585,000.00 26.00% $ 335,000.00 14.89%Alternative Income $ 187,500.00 8.33% $ 90,000.00 4.00% $ - 97,500.00 - 4.33%Alternative Investment $ 0.00 0.00% $ 67,500.00 3.00% $ 67,500.00 3.00%Other $ 300,000.00 13.33% $ 0.00 0.00% $ - 300,000.00 - 13.33%Cash Equivalent $ 62,500.00 2.78% $ 45,000.00 2.00% $ - 17,500.00 - 0.78%Total: $ 2,250,000.00 100.00% $ 2,250,000.00 100.00% $ 0.00 0.00%Current Allocation indicates how an investors portfolio is allocated based on Wells Fargo Advisors asset classifications and current market valueStrategic Allocation illustrates how much of an investors portfolio should be allocated to the various asset classes based on the recommended investment plan.The information shown is based on asset class data through 05/2010. Risk and return figures are derived from both historical observation and standard investment industry statistical calculations. For risk and return information, please see theCapital Market Assumptions table in the disclosure section of this report. Downside risk represents the potential loss the allocation could experience in a severe market downturn. The portfolio faces approximately a 5% chance each year ofexperiencing a loss this large or larger. They are for illustrative purposes and are not designed to predict actual performance. Past performance is not a guarantee of future results.Totals may not equal calculated amounts due to rounding differences.The Disclosures include definitions of the terms on this page and other detailed information.Market Values are based on closing prices and positions as of 2/19/2010 for security level holdings.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 47 of 115
  • 48. This is a Preliminary Report SMEnvision Susan & JimCurrent vs Strategic Allocation - Asset Class Type with SecuritiesLong PositionsAsset Class Type Current Strategic DifferenceDomestic Equity $ 0.00 0.00% $ 1,035,000.00 46.00% $ 1,035,000.00 46.00%International Equity $ 1,450,000.00 64.44% $ 427,500.00 19.00% $ - 1,022,500.00 - 45.44% International Equity $ 1,450,000.00 64.44%Domestic Fixed Income $ 250,000.00 11.11% $ 585,000.00 26.00% $ 335,000.00 14.89% Long Term Taxable Fixed Income $ 250,000.00 11.11%Alternative Income $ 187,500.00 8.33% $ 90,000.00 4.00% $ - 97,500.00 - 4.33% REIT Equity $ 187,500.00 8.33%Alternative Investment $ 0.00 0.00% $ 67,500.00 3.00% $ 67,500.00 3.00%Other $ 300,000.00 13.33% $ 0.00 0.00% $ - 300,000.00 - 13.33% Other $ 300,000.00 13.33%Cash Equivalent $ 62,500.00 2.78% $ 45,000.00 2.00% $ - 17,500.00 - 0.78% Cash Equivalent $ 62,500.00 2.78%Total : $ 2,250,000.00 100.00% $ 2,250,000.00 100.00% $ 0.00 0.00%Totals may not equal calculated amounts due to rounding differences.The Disclosures include definitions of the terms on this page and other detailed information. The securities detail can include information that you have provided and information based on our records. Our firm assumes no responsibility for theaccuracy or completeness of the information you provided.Market Values are based on closing prices and positions as of 2/19/2010 for security level holdings.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 48 of 115
  • 49. This is a Preliminary Report SMEnvision Susan & JimCurrent vs Strategic Allocation - Asset Class Sub Type Current Conservative Growth International Equity (64.44%) Large Cap (28.00%) Long Term Fixed Income (11.11%) Mid Cap (10.00%) REIT (8.33%) Small Cap (8.00%) Other (13.33%) International Equity (10.00%) Cash Equivalent (2.78%) Emerging Market Equity (9.00%) Short Term Fixed Income (8.00%) Intermediate Fixed Inc (13.00%) Long Term Fixed Income (5.00%) High Yield Fixed Income (2.00%) REIT (2.00%) Commodities (3.00%) Cash Equivalent (2.00%) Average Return: 8.2% Average Return: 8.3% Downside Risk: -10.5% Downside Risk: -8.3%Long PositionsAsset Class Sub Type Current Strategic DifferenceLarge Cap $ 0.00 0.00% $ 630,000.00 28.00% $ 630,000.00 28.00%Mid Cap $ 0.00 0.00% $ 225,000.00 10.00% $ 225,000.00 10.00%Small Cap $ 0.00 0.00% $ 180,000.00 8.00% $ 180,000.00 8.00%International Equity $ 1,450,000.00 64.44% $ 225,000.00 10.00% $ - 1,225,000.00 - 54.44%Emerging Market Equity $ 0.00 0.00% $ 202,500.00 9.00% $ 202,500.00 9.00%Short Term Fixed Income $ 0.00 0.00% $ 180,000.00 8.00% $ 180,000.00 8.00%Intermediate Fixed Inc $ 0.00 0.00% $ 292,500.00 13.00% $ 292,500.00 13.00%Long Term Fixed Income $ 250,000.00 11.11% $ 112,500.00 5.00% $ - 137,500.00 - 6.11%High Yield Fixed Income $ 0.00 0.00% $ 45,000.00 2.00% $ 45,000.00 2.00%REIT $ 187,500.00 8.33% $ 45,000.00 2.00% $ - 142,500.00 - 6.33%Commodities $ 0.00 0.00% $ 67,500.00 3.00% $ 67,500.00 3.00%Other $ 300,000.00 13.33% $ 0.00 0.00% $ - 300,000.00 - 13.33%Cash Equivalent $ 62,500.00 2.78% $ 45,000.00 2.00% $ - 17,500.00 - 0.78%Total: $ 2,250,000.00 100.00% $ 2,250,000.00 100.00% $ 0.00 0.00%08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 49 of 115
  • 50. This is a Preliminary Report SMEnvision Susan & JimCurrent Allocation indicates how an investors portfolio is allocated based on Wells Fargo Advisors asset classifications and current market valueStrategic Allocation illustrates how much of an investors portfolio should be allocated to the various asset classes based on the recommended investment plan.The information shown is based on asset class data through 05/2010. Risk and return figures are derived from both historical observation and standard investment industry statistical calculations. For risk and return information, please see theCapital Market Assumptions table in the disclosure section of this report. Downside risk represents the potential loss the allocation could experience in a severe market downturn. The portfolio faces approximately a 5% chance each year ofexperiencing a loss this large or larger. They are for illustrative purposes and are not designed to predict actual performance. Past performance is not a guarantee of future results.Totals may not equal calculated amounts due to rounding differences.The Disclosures include definitions of the terms on this page and other detailed information.Market Values are based on closing prices and positions as of 2/19/2010 for security level holdings.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 50 of 115
  • 51. This is a Preliminary Report SMEnvision Susan & JimCurrent vs Strategic Allocation - Asset Class Sub Type with SecuritiesLong PositionsAsset Class Sub Type Current Strategic DifferenceLarge Cap $ 0.00 0.00% $ 630,000.00 28.00% $ 630,000.00 28.00%Mid Cap $ 0.00 0.00% $ 225,000.00 10.00% $ 225,000.00 10.00%Small Cap $ 0.00 0.00% $ 180,000.00 8.00% $ 180,000.00 8.00%International Equity $ 1,450,000.00 64.44% $ 225,000.00 10.00% $ - 1,225,000.00 - 54.44% International Equity $ 1,450,000.00 64.44%Emerging Market Equity $ 0.00 0.00% $ 202,500.00 9.00% $ 202,500.00 9.00%Short Term Fixed Income $ 0.00 0.00% $ 180,000.00 8.00% $ 180,000.00 8.00%Intermediate Fixed Inc $ 0.00 0.00% $ 292,500.00 13.00% $ 292,500.00 13.00%Long Term Fixed Income $ 250,000.00 11.11% $ 112,500.00 5.00% $ - 137,500.00 - 6.11% Long Term Taxable Fixed Income $ 250,000.00 11.11%High Yield Fixed Income $ 0.00 0.00% $ 45,000.00 2.00% $ 45,000.00 2.00%REIT $ 187,500.00 8.33% $ 45,000.00 2.00% $ - 142,500.00 - 6.33% REIT Equity $ 187,500.00 8.33%Commodities $ 0.00 0.00% $ 67,500.00 3.00% $ 67,500.00 3.00%Other $ 300,000.00 13.33% $ 0.00 0.00% $ - 300,000.00 - 13.33% Other $ 300,000.00 13.33%Cash Equivalent $ 62,500.00 2.78% $ 45,000.00 2.00% $ - 17,500.00 - 0.78% Cash Equivalent $ 62,500.00 2.78%08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 51 of 115
  • 52. This is a Preliminary Report SMEnvision Susan & JimLong PositionsAsset Class Sub Type Current Strategic DifferenceTotal : $ 2,250,000.00 100.00% $ 2,250,000.00 100.00% $ 0.00 0.00%Totals may not equal calculated amounts due to rounding differences.The Disclosures include definitions of the terms on this page and other detailed information. The securities detail can include information that you have provided and information based on our records. Our firm assumes no responsibility for theaccuracy or completeness of the information you provided.Market Values are based on closing prices and positions as of 2/19/2010 for security level holdings.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 52 of 115
  • 53. This is a Preliminary Report SMEnvision Susan & JimCurrent vs Strategic Allocation - Asset Class Detail Current Conservative Growth International Equity (64.44%) Large Cap Growth (14.00%) Long Term Taxable Fixed Income (11.11%) Large Cap Value (14.00%) REIT Equity (8.33%) Mid Cap Growth (5.00%) Other (13.33%) Mid Cap Value (5.00%) Cash Equivalent (2.78%) Small Cap Growth (4.00%) Small Cap Value (4.00%) International Equity (10.00%) Emerging Market Equity (9.00%) Short Term Taxable Fixed Income (8.00%) Intermediate Taxable Fixed Income (13.00%) Long Term Taxable Fixed Income (5.00%) High Yield Fixed Income (2.00%) REIT Equity (2.00%) Commodities (3.00%) Cash Equivalent (2.00%) Average Return: 8.2% Average Return: 8.3% Downside Risk: -10.5% Downside Risk: -8.3%Long PositionsAsset Class Detail Current Strategic DifferenceLarge Cap Growth $ 0.00 0.00% $ 315,000.00 14.00% $ 315,000.00 14.00%Large Cap Value $ 0.00 0.00% $ 315,000.00 14.00% $ 315,000.00 14.00%Mid Cap Growth $ 0.00 0.00% $ 112,500.00 5.00% $ 112,500.00 5.00%Mid Cap Value $ 0.00 0.00% $ 112,500.00 5.00% $ 112,500.00 5.00%Small Cap Growth $ 0.00 0.00% $ 90,000.00 4.00% $ 90,000.00 4.00%Small Cap Value $ 0.00 0.00% $ 90,000.00 4.00% $ 90,000.00 4.00%International Equity $ 1,450,000.00 64.44% $ 225,000.00 10.00% $ - 1,225,000.00 - 54.44%Emerging Market Equity $ 0.00 0.00% $ 202,500.00 9.00% $ 202,500.00 9.00%Short Term Taxable Fixed Income $ 0.00 0.00% $ 180,000.00 8.00% $ 180,000.00 8.00%Intermediate Taxable Fixed Income $ 0.00 0.00% $ 292,500.00 13.00% $ 292,500.00 13.00%Long Term Taxable Fixed Income $ 250,000.00 11.11% $ 112,500.00 5.00% $ - 137,500.00 - 6.11%08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 53 of 115
  • 54. This is a Preliminary Report SMEnvision Susan & JimLong PositionsAsset Class Detail Current Strategic DifferenceHigh Yield Fixed Income $ 0.00 0.00% $ 45,000.00 2.00% $ 45,000.00 2.00%REIT Equity $ 187,500.00 8.33% $ 45,000.00 2.00% $ - 142,500.00 - 6.33%Commodities $ 0.00 0.00% $ 67,500.00 3.00% $ 67,500.00 3.00%Other $ 300,000.00 13.33% $ 0.00 0.00% $ - 300,000.00 - 13.33%Cash Equivalent $ 62,500.00 2.78% $ 45,000.00 2.00% $ - 17,500.00 - 0.78%Total: $ 2,250,000.00 100.00% $ 2,250,000.00 100.00% $ 0.00 0.00%Current Allocation indicates how an investors portfolio is allocated based on Wells Fargo Advisors asset classifications and current market valueStrategic Allocation illustrates how much of an investors portfolio should be allocated to the various asset classes based on the recommended investment plan.The information shown is based on asset class data through 05/2010. Risk and return figures are derived from both historical observation and standard investment industry statistical calculations. For risk and return information, please see theCapital Market Assumptions table in the disclosure section of this report. Downside risk represents the potential loss the allocation could experience in a severe market downturn. The portfolio faces approximately a 5% chance each year ofexperiencing a loss this large or larger. They are for illustrative purposes and are not designed to predict actual performance. Past performance is not a guarantee of future results.Totals may not equal calculated amounts due to rounding differences.The Disclosures include definitions of the terms on this page and other detailed information.Market Values are based on closing prices and positions as of 2/19/2010 for security level holdings.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 54 of 115
  • 55. This is a Preliminary Report SMEnvision Susan & JimCurrent vs Strategic Allocation - Asset Class Detail with SecuritiesLong PositionsAsset Class Detail Current Strategic DifferenceLarge Cap Growth $ 0.00 0.00% $ 315,000.00 14.00% $ 315,000.00 14.00%Large Cap Value $ 0.00 0.00% $ 315,000.00 14.00% $ 315,000.00 14.00%Mid Cap Growth $ 0.00 0.00% $ 112,500.00 5.00% $ 112,500.00 5.00%Mid Cap Value $ 0.00 0.00% $ 112,500.00 5.00% $ 112,500.00 5.00%Small Cap Growth $ 0.00 0.00% $ 90,000.00 4.00% $ 90,000.00 4.00%Small Cap Value $ 0.00 0.00% $ 90,000.00 4.00% $ 90,000.00 4.00%International Equity $ 1,450,000.00 64.44% $ 225,000.00 10.00% $ - 1,225,000.00 - 54.44% International Equity $ 1,450,000.00 64.44%Emerging Market Equity $ 0.00 0.00% $ 202,500.00 9.00% $ 202,500.00 9.00%Short Term Taxable Fixed Income $ 0.00 0.00% $ 180,000.00 8.00% $ 180,000.00 8.00%Intermediate Taxable Fixed Income $ 0.00 0.00% $ 292,500.00 13.00% $ 292,500.00 13.00%Long Term Taxable Fixed Income $ 250,000.00 11.11% $ 112,500.00 5.00% $ - 137,500.00 - 6.11% Long Term Taxable Fixed Income $ 250,000.00 11.11%High Yield Fixed Income $ 0.00 0.00% $ 45,000.00 2.00% $ 45,000.00 2.00%REIT Equity $ 187,500.00 8.33% $ 45,000.00 2.00% $ - 142,500.00 - 6.33% REIT Equity $ 187,500.00 8.33%Commodities $ 0.00 0.00% $ 67,500.00 3.00% $ 67,500.00 3.00%08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 55 of 115
  • 56. This is a Preliminary Report SMEnvision Susan & JimLong PositionsAsset Class Detail Current Strategic DifferenceOther $ 300,000.00 13.33% $ 0.00 0.00% $ - 300,000.00 - 13.33% Other $ 300,000.00 13.33%Cash Equivalent $ 62,500.00 2.78% $ 45,000.00 2.00% $ - 17,500.00 - 0.78% Cash Equivalent $ 62,500.00 2.78%Total : $ 2,250,000.00 100.00% $ 2,250,000.00 100.00% $ 0.00 0.00%Totals may not equal calculated amounts due to rounding differences.The Disclosures include definitions of the terms on this page and other detailed information. The securities detail can include information that you have provided and information based on our records. Our firm assumes no responsibility for theaccuracy or completeness of the information you provided.Market Values are based on closing prices and positions as of 2/19/2010 for security level holdings.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 56 of 115
  • 57. This is a Preliminary Report SMEnvision Susan & JimCurrent vs Strategic - Efficient Frontier 10 Long Term Growth Moderate Growth 9 Average Return (%) Long Term Growth & Income Conservative Growth 8 Moderate Growth & Income Long Term Income 7 Conservative Growth & Income Moderate Income 6 Conservative Income 5 1 4 7 10 13 Downside Risk (%) Average Return: Downside Risk: Current Allocation 8.2% -10.5% Conservative Growth 8.3% -8.3%Your Recommended Investment Plan Result was calculated assuming that you will modify your strategic asset allocations, if applicable, throughout the life of the plan. The recommended strategic asset allocation reflected on this page illustrates thecurrent recommended strategic allocation. Future allocations are illustrated on the Age Based Asset Allocation page.Each Strategic Allocation has a Historical Return and level of Downside Risk. An "efficient" portfolio allocation is designed to seek the maximum rate of return for the amount of risk assumed. The Efficient Frontier is created to represent the optimalrate of return attainable for any determined level of risk. In theory, the closer your portfolio allocation came to the efficient frontier, the more return you received for the amount of risk you assumed.The information shown is based on asset class data through 05/2010. Risk and return figures are derived from both historical observation and standard investment industry statistical calculations. For risk and return information, please see theCapital Market Assumptions table in the disclosure section of this report. Downside risk represents the potential loss the allocation could experience in a severe market downturn. The portfolio faces approximately a 5% chance each year ofexperiencing a loss this large or larger. They are for illustrative purposes and are not designed to predict actual performance. Past performance is not a guarantee of future results.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 57 of 115
  • 58. This is a Preliminary Report SMEnvision Susan & JimAccount Summary88888888 (Johns 529 Plan) (EXTERNAL)Asset Allocation Asset Class Level - Long Positions Long Term Taxable Fixed Income (100.00%) Name Amount % Long Term Taxable Fixed Income $130,000.00 100.00 Long Mkt Value: $ 130,000.00 Short Mkt Value: $ 0.00 Cash Balance: $ 0.00 Account Value: $ 130,000.0088888888 (Susans IRA) (EXTERNAL)Asset Allocation Asset Class Level - Long Positions International Equity (100.00%) Name Amount % International Equity $250,000.00 100.00 Long Mkt Value: $ 250,000.00 Short Mkt Value: $ 0.00 Cash Balance: $ 0.00 Account Value: $ 250,000.0088888888 (Joint Account) (EXTERNAL)Asset Allocation Asset Class Level - Long Positions Name Amount % REIT Equity $187,500.00 75.0008/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 58 of 115
  • 59. This is a Preliminary Report SMEnvision Susan & Jim Asset Class Level - Long Positions REIT Equity (75.00%) Name Amount % Cash Equivalent (25.00%) Cash Equivalent $62,500.00 25.00 Long Mkt Value: $ 250,000.00 Short Mkt Value: $ 0.00 Cash Balance: $ 0.00 Account Value: $ 250,000.0088888888 (Jims PSP Deferred) (EXTERNAL)Asset Allocation Asset Class Level - Long Positions International Equity (80.00%) Name Amount % Other (20.00%) International Equity $1,200,000.00 80.00 Other $300,000.00 20.00 Long Mkt Value: $ 1,500,000.00 Short Mkt Value: $ 0.00 Cash Balance: $ 0.00 Account Value: $ 1,500,000.0088888888 (Saras 529 Plan) (EXTERNAL)Asset Allocation Asset Class Level - Long Positions Name Amount % Long Term Taxable Fixed Income $120,000.00 100.00 Long Mkt Value: $ 120,000.00 Short Mkt Value: $ 0.00 Cash Balance: $ 0.00 Account Value: $ 120,000.0008/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 59 of 115
  • 60. This is a Preliminary Report SMEnvision Susan & Jim Long Term Taxable Fixed Income (100.00%) Security-Level Holdings: $0.00 Asset Class-Level Holdings: $2,250,000.00 Asset Class and Security Level Holdings: $0.00 Total Holdings: $2,250,000.00As an accommodation to you, we have included assets held away from our firm in external accounts. We assume no responsibility for the accuracy or completeness of the information you haveprovided with respect to these assets. We make no representation that we have performed due diligence on these assets. In some cases, we may update the pricing of securities. However, in somecases, the prices may not be updated. In addition, any transactions involving these assets will not be reflected unless you provide updated information. We rely on you to provide information in orderto update the values of your external accounts. The accuracy and completeness of the information you provide may materially affect the results and any recommendations contained in this report.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 60 of 115
  • 61. This is a Preliminary Report SMEnvision Susan & JimRange of Simulation Possible OutcomesResults shown in Actual dollars Percentile Year 5 Year 10 Year 15 Year 20 Year 25 At Death Recommended Best $5,010,160 $7,954,329 $12,814,848 $18,478,919 $26,238,545 $76,512,331 25th $4,021,100 $5,846,650 $8,216,047 $11,221,526 $14,833,498 $36,441,207 50th $3,506,987 $4,673,595 $6,118,140 $7,634,463 $9,732,547 $19,661,961 75th $3,060,735 $3,820,649 $4,495,586 $4,865,129 $5,537,083 $7,733,019 Worst $2,500,136 $2,674,253 $2,780,547 $2,450,257 $1,757,437 $-4,197,521The range of results are based upon the assumption that you implement the • The Best case scenario indicates that in 5% of the simulations theStrategic or Custom Allocation and continue with the savings and/or spending investment plan achieved at least the corresponding Ending Planpatterns you have indicated. These potential outcomes are also based upon Wealth.the historical information regarding asset classes discussed in the Disclosures. • The Median case scenario indicates that in 50% of the simulationsThese results are intended to provide you with an opportunity to evaluate your the investment plan achieved at least the corresponding EndingRecommended Investment Plan, including your asset allocation. Plan Wealth.Envision stress tests your Recommended Investment Plan with 1,000 • The Worst case scenario indicates that in 95% of the simulationssimulations. The above graph and table represent various scenarios from the the investment plan achieved at least the corresponding EndingBest to the Worst case for this investment plan. Plan Wealth. There is no guarantee these results will be achieved. The At Death column is based on either your life expectancy using standard mortality tables, or an alternative age you have indicated. Please be sure to inform us of changes to your goals, savings and spending patterns so we can incorporate changes into your Recommended Investment Plan.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 61 of 115
  • 62. This is a Preliminary Report SMEnvision Susan & JimGrowth Detail GraphResults shown in Actual dollars $93,000,000 $75,000,000 $57,000,000Investments $39,000,000 $21,000,000 $3,000,000 -$15,000,000 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 Age (Susan Taylor)Using Monte Carlo simulation, Envision simulates one thousand different potential outcomes over a lifetime of investing. This graph reflects the range of results ofthe simulated trials based on your Recommended Investment Plan. It graphically displays every tenth trial, (from the 5th through the 95th), and also identifies which"target" trial simulated the minimum ending value needed for the plan to achieve its stated goals. While this diagram depicts a wide range of possible outcomes,there is no assurance that your actual investment plan will fall within this range.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 62 of 115
  • 63. This is a Preliminary Report SMEnvision Susan & JimGrowth Detail Percentile RankingsResults shown in Actual dollars Age (Susan) Average Annual Percentile Ending Value Investment Assets Simulated Return are Depleted 0 $216,471,092 13.52% 1 $118,668,929 11.96% 2 $98,253,550 11.14% 3 $90,474,906 11.51% 4 $82,801,345 10.64% 5 $76,512,331 10.49% 6 $73,099,623 10.67% 7 $70,595,858 10.22% 8 $67,550,475 10.71% 9 $64,211,604 10.56% 10 $62,217,566 10.12% 11 $58,585,540 10.72% 12 $57,459,275 10.81% 13 $55,782,649 10.12% 14 $53,789,339 9.75% 15 $50,920,651 10.79% 16 $48,195,613 9.67% 17 $47,201,459 9.71% 18 $45,668,828 9.66% 19 $43,966,399 9.47% 20 $42,582,908 9.69% 21 $40,841,936 9.48% 22 $39,848,410 9.60% 23 $38,758,551 9.35% 24 $37,756,858 9.20% 25 $36,441,207 9.41% 26 $35,675,631 9.40% 27 $34,735,986 9.24% 28 $34,186,699 9.41% 29 $32,916,881 9.37% 30 $32,160,256 8.75% 31 $31,226,888 9.26% 32 $30,595,647 8.36% 33 $29,912,594 8.96%08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 63 of 115
  • 64. This is a Preliminary Report SMEnvision Susan & Jim Age (Susan) Average Annual Percentile Ending Value Investment Assets Simulated Return are Depleted 34 $29,220,859 8.56% 35 $28,525,490 9.81% 36 $27,568,388 9.29% 37 $26,839,146 8.53% 38 $26,317,274 8.72% 39 $25,925,348 8.05% 40 $25,644,333 7.78% 41 $25,280,795 8.35% 42 $24,840,306 8.00% 43 $24,137,713 8.60% 44 $22,872,135 8.15% 45 $22,412,801 8.14% 46 $21,919,459 8.64% 47 $21,340,444 7.86% 48 $20,807,118 8.53% 49 $20,237,258 8.93% 50 $19,661,961 8.48% 51 $19,179,094 8.58% 52 $18,281,369 7.43% 53 $17,786,070 8.21% 54 $17,231,793 7.74% 55 $16,749,859 7.91% 56 $16,280,779 8.75% 57 $15,784,362 8.32% 58 $15,208,713 8.38% 59 $14,971,763 8.21% 60 $14,354,658 6.86% 61 $14,046,036 7.91% 62 $13,626,450 7.94% 63 $13,078,030 7.23% 64 $12,677,812 7.31% 65 $12,170,408 7.79% 66 $11,828,634 8.11% 67 $11,575,050 7.42% 68 $11,293,871 7.54% 69 $10,689,307 6.98% 70 $10,284,653 7.71%08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 64 of 115
  • 65. This is a Preliminary Report SMEnvision Susan & Jim Age (Susan) Average Annual Percentile Ending Value Investment Assets Simulated Return are Depleted 71 $10,003,887 7.21% 72 $9,432,971 6.90% 73 $8,994,855 7.23% 74 $8,505,100 6.89% 75 $7,733,019 7.71% 76 $7,250,714 7.24% 77 $6,723,086 7.36% 78 $6,257,339 6.67% 79 $5,891,012 7.74% 80 $5,364,311 7.43% 81 $4,405,990 7.14% + $3,613,034 6.97% Target 83 $2,782,184 6.50% 84 $2,176,314 6.54% 85 $1,448,096 5.89% 86 $853,148 6.41% 87 $-73,243 95 6.07% 88 $-465,659 94 5.55% 89 $-1,135,142 92 5.96% 90 $-1,698,779 91 5.91% 91 $-2,241,092 89 5.25% 92 $-2,508,230 88 7.93% 93 $-3,086,561 87 5.04% 94 $-3,623,137 85 5.71% 95 $-4,197,521 84 4.78% 96 $-4,677,330 83 6.10% 97 $-5,294,182 82 8.03% 98 $-6,294,770 79 6.33% 99 $-7,393,130 77 4.85% 100 $-9,970,742 72 5.19%+ Target Percentile represents the last trial that simulates the achievement of the plans stated goals.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 65 of 115
  • 66. This is a Preliminary Report SMEnvision Susan & JimThe Percentile Rankings is a table representation of the Growth Detail Chart. It displays one hundred and one of the one thousand Monte Carlo simulations.Percentile column displays every tenth trial from the highest ending value to the lowest ending value.Ending Value for each Percentile is the corresponding ending investment value.Age Investment Assets are Depleted is the age of the longest surviving client when the assets first drop below zero and never return to a positive balance.Average Annual Simulated Return is based on the simulations associated with a specific Percentile, and represents the average return the simulation displayedfor that trial.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 66 of 115
  • 67. This is a Preliminary Report SMEnvision Susan & JimTotal Investment Plan Target Values - Recommended Investment PlanResults shown in Actual dollars Jims Susans Net Need/ Gain/ Ending GoalYear Taxes($) Age Age Surplus($) Loss($) Value($)2010 52 52 75,000 293,426 - 12,395 2,606,0312011 53 53 27,442 667,026 - 22,090 3,278,4092012 54 54 27,628 105,227 - 3,836 3,407,4272013 55 55 27,818 132,192 - 4,914 3,562,5232014 56 56 8,187 657,010 - 23,208 4,204,5122015 57 57 61,905 - 395,004 - 4,408 3,867,0052016 58 58 62,953 738,383 - 9,143 4,659,1972017 59 59 64,027 481,287 - 59,604 5,144,9072018 60 60 - 412,533 624,011 - 27,129 5,329,2572019 61 61 - 199,818 667,468 - 5,101 5,791,8062020 62 62 - 89,368 - 248,361 - 1,310 5,452,7672021 63 63 - 91,602 107,862 - 13,221 5,455,8062022 64 64 - 93,892 1,108,225 - 45,121 6,425,0182023 65 65 - 96,239 - 478,985 - 46,249 5,803,5442024 66 66 - 98,645 - 182,337 - 47,405 5,475,1572025 67 67 - 183,466 130,668 - 74,858 5,347,5012026 68 68 - 188,053 - 974,599 - 76,729 4,108,1202027 69 69 - 192,754 - 371,386 - 78,648 3,465,3322028 70 70 - 197,573 381,920 - 80,614 3,569,0662029 71 71 - 178,532 329,180 - 70,832 3,648,8812030 72 72 - 182,996 512,146 - 72,603 3,905,4282031 73 73 - 187,571 723,963 - 74,418 4,367,4032032 74 74 - 192,260 747,105 - 76,278 4,845,9702033 75 75 - 197,066 105,641 - 78,185 4,676,3592034 76 76 - 201,993 149,452 - 80,140 4,543,6782035 77 77 - 207,043 - 23,585 - 82,143 4,230,9082036 78 78 - 212,219 - 253,211 - 84,197 3,681,2812037 79 79 - 217,524 596,001 - 86,302 3,973,4562038 80 80 - 222,962 256,683 - 88,460 3,918,7172039 81 81 - 228,537 334,203 - 90,671 3,933,7122040 82 82 - 234,250 53,061 - 92,938 3,659,58508/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 67 of 115
  • 68. This is a Preliminary Report SMEnvision Susan & Jim Jims Susans Net Need/ Gain/ Ending GoalYear Taxes($) Age Age Surplus($) Loss($) Value($)2041 83 83 - 240,106 375,670 - 95,261 3,699,8882042 84 84 - 246,109 787,386 - 97,643 4,143,5222043 85 85 - 252,262 33,741 - 100,084 3,824,9182044 86 86 - 258,568 554,217 - 102,586 4,017,9812045 87 87 - 265,032 139,970 - 105,151 3,787,7682046 88 88 - 271,658 571,552 - 107,779 3,979,8832047 89 89 - 278,450 376,236 - 110,474 3,967,1962048 90 90 - 285,411 119,825 - 113,236 3,688,3742049 91 91 - 292,546 597,947 - 116,067 3,877,7092050 92 92 - 199,860 836,529 - 105,843 4,408,5352051 93 93 - 346,418 403,448 - 138,313 4,327,2532052 94 94 - 355,078 - 132,245 - 144,310 3,695,6202053 95 95 - 363,955 435,063 - 153,693 3,613,034Total Investment Plan Target Values reflect the possible cash flow elements of your Recommended Investment Plan. This is based upon information you provided, tax assumptions, and the simulation results. Because this information is subject to change,your actual cash flows and results will differ. You should periodically review this information with your Financial Advisor and discuss any changes to your goals and personal situation in order to keep your Recommended Investment Plan up-to-date.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 68 of 115
  • 69. This is a Preliminary Report SMEnvision Susan & JimTarget Investment Plan Tax Treatment - Recommended Investment PlanResults shown in Actual dollars Ending Tax Susans Taxable Tax Advantaged Gain/ Effective Net CashYear Jims Age Goal Advantaged Net RMD($) Taxes($) Age Assets($) Education($) Loss($) Tax Rate% Flow($) Value($) Assets($)2010 52 52 2,606,031 290,208 2,315,824 282,603 293,426 - 12,395 18.93 75,0002011 53 53 3,278,409 362,398 2,916,011 306,003 667,026 - 22,090 20.03 27,4422012 54 54 3,407,427 390,194 3,017,234 265,668 105,227 - 3,836 17.50 27,6282013 55 55 3,562,523 420,417 3,142,106 224,564 132,192 - 4,914 17.67 27,8182014 56 56 4,204,512 494,744 3,709,769 193,456 657,010 - 23,208 20.00 8,1872015 57 57 3,867,005 463,856 3,403,150 154,959 - 395,004 - 4,408 17.57 61,9052016 58 58 4,659,197 563,283 4,095,915 163,717 738,383 - 9,143 18.26 62,9532017 59 59 5,144,907 741,143 4,403,764 0 481,287 - 59,604 23.79 64,0272018 60 60 5,329,257 324,360 5,004,897 0 624,011 - 27,129 20.19 - 412,5332019 61 61 5,791,806 160,065 5,631,741 0 667,468 - 5,101 12.56 - 199,8182020 62 62 5,452,767 62,523 5,390,244 0 - 248,361 - 1,310 19.72 - 89,3682021 63 63 5,455,806 0 5,455,805 0 107,862 - 13,221 21.99 - 91,6022022 64 64 6,425,018 0 6,425,018 0 1,108,225 - 45,121 25.66 - 93,8922023 65 65 5,803,544 0 5,803,544 0 - 478,985 - 46,249 25.66 - 96,2392024 66 66 5,475,157 0 5,475,157 0 - 182,337 - 47,405 25.66 - 98,6452025 67 67 5,347,501 0 5,347,501 0 130,668 - 74,858 25.66 - 183,4662026 68 68 4,108,120 0 4,108,120 0 - 974,599 - 76,729 25.66 - 188,0532027 69 69 3,465,332 0 3,465,332 0 - 371,386 - 78,648 25.66 - 192,7542028 70 70 3,569,066 0 3,569,066 0 95,245 381,920 - 80,614 25.66 - 197,5732029 71 71 3,648,881 0 3,648,881 0 101,112 329,180 - 70,832 24.81 - 178,5322030 72 72 3,905,428 0 3,905,428 0 106,737 512,146 - 72,603 24.81 - 182,9962031 73 73 4,367,403 0 4,367,403 0 117,703 723,963 - 74,418 24.81 - 187,5712032 74 74 4,845,970 0 4,845,970 0 135,447 747,105 - 76,278 24.81 - 192,2602033 75 75 4,676,359 0 4,676,359 0 155,034 105,641 - 78,185 24.81 - 197,0662034 76 76 4,543,678 0 4,543,678 0 155,954 149,452 - 80,140 24.81 - 201,9932035 77 77 4,230,908 0 4,230,907 0 157,401 - 23,585 - 82,143 24.81 - 207,0432036 78 78 3,681,281 0 3,681,281 0 153,558 - 253,211 - 84,197 24.81 - 212,2192037 79 79 3,973,456 0 3,973,456 0 140,241 596,001 - 86,302 24.81 - 217,5242038 80 80 3,918,717 0 3,918,716 0 156,853 256,683 - 88,460 24.81 - 222,9622039 81 81 3,933,712 0 3,933,712 0 161,552 334,203 - 90,671 24.81 - 228,5372040 82 82 3,659,585 0 3,659,585 0 169,490 53,061 - 92,938 24.81 - 234,25008/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 69 of 115
  • 70. This is a Preliminary Report SMEnvision Susan & Jim Ending Tax Susans Taxable Tax Advantaged Gain/ Effective Net CashYear Jims Age Goal Advantaged Net RMD($) Taxes($) Age Assets($) Education($) Loss($) Tax Rate% Flow($) Value($) Assets($)2041 83 83 3,699,888 0 3,699,887 0 165,939 375,670 - 95,261 24.81 - 240,1062042 84 84 4,143,522 0 4,143,522 0 176,009 787,386 - 97,643 24.81 - 246,1092043 85 85 3,824,918 0 3,824,918 0 204,456 33,741 - 100,084 24.81 - 252,2622044 86 86 4,017,981 0 4,017,981 0 199,064 554,217 - 102,586 24.81 - 258,5682045 87 87 3,787,768 0 3,787,768 0 218,577 139,970 - 105,151 24.81 - 265,0322046 88 88 3,979,883 0 3,979,883 0 218,033 571,552 - 107,779 24.81 - 271,6582047 89 89 3,967,196 0 3,967,195 0 240,625 376,236 - 110,474 24.81 - 278,4502048 90 90 3,688,374 0 3,688,374 0 251,959 119,825 - 113,236 24.81 - 285,4112049 91 91 3,877,709 0 3,877,709 0 248,229 597,947 - 116,067 24.81 - 292,5462050 92 92 4,408,535 74,465 4,334,070 0 274,325 836,529 - 105,843 24.08 - 199,8602051 93 93 4,327,253 48,014 4,279,239 0 313,902 403,448 - 138,313 28.18 - 346,4182052 94 94 3,695,620 17,405 3,678,215 0 326,598 - 132,245 - 144,310 28.30 - 355,0782053 95 95 3,613,034 0 3,613,034 0 298,436 435,063 - 153,693 28.56 - 363,955Target Investment Plan Tax Treatment details cash flows and Ending Goal Values for your Recommended Investment Plan. This is based upon information you provided, tax assumptions, and the simulation results. Because this information is subjectto change, your actual cash flows and results will differ. Please note that these calculations are hypothetical and do not replace actual required minimum distribution calculations which should be made each year on an individualized basis. You shouldperiodically review this information with your Financial Advisor and discuss any changes to your goals and personal situation in order to keep your Recommended Investment Plan up-to-date.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 70 of 115
  • 71. This is a Preliminary Report SMEnvision Susan & JimTarget Taxable Investment Plan Value - Recommended Investment PlanResults shown in Actual dollars Jims Susans Taxable Portfolio Net CashYear Appreciation($) Taxes($) Age Age Assets($) Income($) Flow($)2010 52 52 290,208 6,612 25,991 - 12,395 20,0002011 53 53 362,398 7,675 66,605 - 22,090 20,0002012 54 54 390,194 9,584 2,048 - 3,836 20,0002013 55 55 420,417 10,319 4,818 - 4,914 20,0002014 56 56 494,744 11,119 66,416 - 23,208 20,0002015 57 57 463,856 13,084 - 59,564 - 4,408 20,0002016 58 58 563,283 12,267 76,303 - 9,143 20,0002017 59 59 741,143 14,897 43,289 - 18,604 138,2782018 60 60 324,360 19,601 70,290 - 27,129 - 479,5452019 61 61 160,065 8,578 32,047 - 5,101 - 199,8182020 62 62 62,523 4,233 - 11,097 - 1,310 - 89,3682021 63 63 0 1,654 - 417 - 511 - 63,2482022 64 64 0 0 0 0 02023 65 65 0 0 0 0 02024 66 66 0 0 0 0 02025 67 67 0 0 0 0 02026 68 68 0 0 0 0 02027 69 69 0 0 0 0 02028 70 70 0 0 0 0 02029 71 71 0 0 0 0 02030 72 72 0 0 0 0 02031 73 73 0 0 0 0 02032 74 74 0 0 0 0 02033 75 75 0 0 0 0 02034 76 76 0 0 0 0 02035 77 77 0 0 0 0 02036 78 78 0 0 0 0 02037 79 79 0 0 0 0 02038 80 80 0 0 0 0 02039 81 81 0 0 0 0 02040 82 82 0 0 0 0 02041 83 83 0 0 0 0 02042 84 84 0 0 0 0 02043 85 85 0 0 0 0 008/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 71 of 115
  • 72. This is a Preliminary Report SMEnvision Susan & Jim Jims Susans Taxable Portfolio Net CashYear Appreciation($) Taxes($) Age Age Assets($) Income($) Flow($)2044 86 86 0 0 0 0 02045 87 87 0 0 0 0 02046 88 88 0 0 0 0 02047 89 89 0 0 0 0 02048 90 90 0 0 0 0 02049 91 91 0 0 0 0 02050 92 92 74,465 0 0 0 74,4652051 93 93 48,014 1,969 4,845 - 750 - 32,5152052 94 94 17,405 1,270 - 2,737 - 662 - 28,4812053 95 95 0 460 1,589 - 93 - 19,361Taxable Investment Plan Values details the gain/loss components (yield and appreciation) of your taxable assets, as well as, assumed income taxes for your Recommended Investment Plan. This is based upon information you provided, tax assumptions,and the simulation results. Because this information is subject to change, your actual cash flows and results will differ. You should periodically review this information with your Financial Advisor and discuss any changes to your goals and personalsituation in order to keep your Recommended Investment Plan up-to-date.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 72 of 115
  • 73. This is a Preliminary Report SMEnvision Susan & JimTarget Tax Advantaged Investment Plan Values - Recommended Investment PlanResults shown in Actual dollars Susans Tax Advantaged Tax Deferred Tax Exempt Tax Advantaged Gross Portfolio Net CashYear Jims Age Appreciation ($) Taxes($) Age Assets($) Assets($) Assets($) Education($) RMD($) Income($) Flow($)2010 52 52 2,315,824 2,033,221 0 282,603 52,894 207,930 0 55,0002011 53 53 2,916,011 2,610,008 0 306,003 61,246 531,500 0 7,4422012 54 54 3,017,234 2,751,566 0 265,668 77,119 16,476 0 7,6272013 55 55 3,142,106 2,917,542 0 224,564 79,796 37,259 0 7,8182014 56 56 3,709,769 3,516,313 0 193,456 83,098 496,378 0 - 11,8132015 57 57 3,403,150 3,248,191 0 154,959 98,111 - 446,635 0 41,9052016 58 58 4,095,915 3,932,198 0 163,717 90,002 559,811 0 42,9532017 59 59 4,403,764 4,403,764 0 0 108,324 314,778 - 40,999 - 74,2522018 60 60 5,004,897 5,004,897 0 0 116,464 417,656 0 67,0122019 61 61 5,631,741 5,631,741 0 0 132,362 494,481 0 02020 62 62 5,390,244 5,390,244 0 0 148,941 - 390,438 0 02021 63 63 5,455,805 5,455,805 0 0 142,554 - 35,928 - 12,709 - 28,3542022 64 64 6,425,018 6,425,018 0 0 144,288 963,937 - 45,121 - 93,8922023 65 65 5,803,544 5,803,544 0 0 169,920 - 648,905 - 46,249 - 96,2392024 66 66 5,475,157 5,475,157 0 0 153,484 - 335,821 - 47,405 - 98,6452025 67 67 5,347,501 5,347,501 0 0 144,800 - 14,132 - 74,858 - 183,4662026 68 68 4,108,120 4,108,120 0 0 141,423 - 1,116,022 - 76,729 - 188,0532027 69 69 3,465,332 3,465,332 0 0 108,646 - 480,032 - 78,648 - 192,7542028 70 70 3,569,066 3,569,066 0 0 - 126,472 91,646 290,274 - 80,614 - 197,5732029 71 71 3,648,881 3,648,881 0 0 - 134,682 94,390 234,790 - 70,832 - 178,5332030 72 72 3,905,428 3,905,428 0 0 - 142,534 96,501 415,645 - 72,602 - 182,9962031 73 73 4,367,403 4,367,403 0 0 - 158,115 103,286 620,677 - 74,418 - 187,5712032 74 74 4,845,970 4,845,970 0 0 - 183,504 115,503 631,602 - 76,278 - 192,2602033 75 75 4,676,359 4,676,359 0 0 - 211,614 128,159 - 22,518 - 78,186 - 197,0662034 76 76 4,543,678 4,543,678 0 0 - 212,562 123,673 25,779 - 80,140 - 201,9932035 77 77 4,230,907 4,230,907 0 0 - 214,324 120,165 - 143,749 - 82,144 - 207,0432036 78 78 3,681,281 3,681,281 0 0 - 208,419 111,893 - 365,103 - 84,198 - 212,2182037 79 79 3,973,456 3,973,456 0 0 - 188,784 97,357 498,644 - 86,302 - 217,5242038 80 80 3,918,716 3,918,716 0 0 - 212,484 105,084 151,598 - 88,459 - 222,9622039 81 81 3,933,712 3,933,712 0 0 - 218,923 103,637 230,566 - 90,671 - 228,5372040 82 82 3,659,585 3,659,585 0 0 - 230,042 104,033 - 50,972 - 92,937 - 234,2502041 83 83 3,699,887 3,699,887 0 0 - 224,514 96,784 278,886 - 95,262 - 240,1062042 84 84 4,143,522 4,143,522 0 0 - 238,702 97,849 689,537 - 97,643 - 246,1092043 85 85 3,824,918 3,824,918 0 0 - 279,968 109,582 - 75,841 - 100,084 - 252,26108/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 73 of 115
  • 74. This is a Preliminary Report SMEnvision Susan & Jim Susans Tax Advantaged Tax Deferred Tax Exempt Tax Advantaged Gross Portfolio Net CashYear Jims Age Appreciation ($) Taxes($) Age Assets($) Assets($) Assets($) Education($) RMD($) Income($) Flow($)2044 86 86 4,017,981 4,017,981 0 0 - 271,271 101,156 453,061 - 102,585 - 258,5682045 87 87 3,787,768 3,787,768 0 0 - 299,849 106,262 33,708 - 105,150 - 265,0322046 88 88 3,979,883 3,979,883 0 0 - 298,249 100,173 471,379 - 107,779 - 271,6592047 89 89 3,967,195 3,967,195 0 0 - 331,657 105,254 270,982 - 110,474 - 278,4502048 90 90 3,688,374 3,688,374 0 0 - 348,000 104,918 14,907 - 113,236 - 285,4112049 91 91 3,877,709 3,877,709 0 0 - 341,516 97,545 500,402 - 116,067 - 292,5462050 92 92 4,334,070 4,334,070 0 0 - 380,168 102,552 733,976 - 105,843 - 274,3242051 93 93 4,279,239 4,279,239 0 0 - 451,466 114,621 282,012 - 137,563 - 313,9032052 94 94 3,678,215 3,678,215 0 0 - 470,246 113,171 - 243,948 - 143,648 - 326,5972053 95 95 3,613,034 3,613,034 0 0 - 427,699 97,276 335,738 - 153,600 - 344,594Tax Advantaged Investment Plan Values details the gain/loss components (yield and appreciation) of your tax advantaged assets, as well as, assumed income taxes from your Recommended Investment Plan. This is based upon information youprovided, tax assumptions, and the simulation results. Because this information is subject to change, your actual cash flows and results will differ. Please note that these calculations are hypothetical and do not replace actual required minimumdistribution calculations which should be made each year on an individualized basis. You should periodically review this information with your Financial Advisor and discuss any changes to your goals and personal situation in order to keep yourRecommended Investment Plan up-to-date.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 74 of 115
  • 75. This is a Preliminary Report SMEnvision Susan & JimSummary of Cash Flows - Recommended Investment PlanResults shown in Actual dollars $360,000 $270,000 $180,000 $90,000 $0 ($90,000) ($180,000) ($270,000) ($360,000) ($450,000) ($540,000) 52/52 57/57 62/62 67/67 72/72 77/77 82/82 87/87 92/92 Age Contributions and Other Income Withdrawals and Ret. Income Need Net Surplus/Need08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 75 of 115
  • 76. This is a Preliminary Report SMEnvision Susan & JimResults shown in Actual dollarsThe following table displays the detail of all planned contributions, withdrawals and income used in calculating the Investment Plan Result within Envision. The TotalNeed or Surplus is displayed in the last column. Need is reflected as a negative amount signifying necessary withdrawals from your investment assets. Surplus isreflected as a positive value signifying excess funds that would be added to your investment assets. Jims Susans Withdrawals & Ret.Year Contributions($) Other Income($) Total($) Net($) Age Age Income Need($)2010 52 52 75,000 0 75,000 0 75,0002011 53 53 76,375 0 76,375 48,933 27,4422012 54 54 77,784 0 77,784 50,157 27,6272013 55 55 79,229 0 79,229 51,411 27,8182014 56 56 80,710 0 80,710 72,523 8,1872015 57 57 82,227 0 82,227 20,322 61,9052016 58 58 83,783 0 83,783 20,830 62,9532017 59 59 85,377 0 85,377 21,351 64,0262018 60 60 87,012 0 87,012 499,545 - 412,5332019 61 61 0 0 0 199,818 - 199,8182020 62 62 0 115,445 115,445 204,813 - 89,3682021 63 63 0 118,332 118,332 209,934 - 91,6022022 64 64 0 121,290 121,290 215,182 - 93,8922023 65 65 0 124,323 124,323 220,562 - 96,2392024 66 66 0 127,430 127,430 226,076 - 98,6462025 67 67 0 48,262 48,262 231,727 - 183,4652026 68 68 0 49,468 49,468 237,521 - 188,0532027 69 69 0 50,705 50,705 243,459 - 192,7542028 70 70 0 51,972 51,972 249,546 - 197,5742029 71 71 0 53,272 53,272 231,804 - 178,5322030 72 72 0 54,604 54,604 237,599 - 182,9952031 73 73 0 55,968 55,968 243,539 - 187,5712032 74 74 0 57,368 57,368 249,628 - 192,2602033 75 75 0 58,802 58,802 255,869 - 197,0672034 76 76 0 60,272 60,272 262,265 - 201,99308/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 76 of 115
  • 77. This is a Preliminary Report SMEnvision Susan & Jim Jims Susans Withdrawals & Ret.Year Contributions($) Other Income($) Total($) Net($) Age Age Income Need($)2035 77 77 0 61,779 61,779 268,822 - 207,0432036 78 78 0 63,323 63,323 275,542 - 212,2192037 79 79 0 64,906 64,906 282,431 - 217,5252038 80 80 0 66,530 66,530 289,492 - 222,9622039 81 81 0 68,192 68,192 296,729 - 228,5372040 82 82 0 69,898 69,898 304,147 - 234,2492041 83 83 0 71,645 71,645 311,751 - 240,1062042 84 84 0 73,436 73,436 319,545 - 246,1092043 85 85 0 75,272 75,272 327,533 - 252,2612044 86 86 0 77,154 77,154 335,722 - 258,5682045 87 87 0 79,083 79,083 344,115 - 265,0322046 88 88 0 81,060 81,060 352,718 - 271,6582047 89 89 0 83,086 83,086 361,536 - 278,4502048 90 90 0 85,163 85,163 370,574 - 285,4112049 91 91 0 87,292 87,292 379,838 - 292,5462050 92 92 0 189,474 189,474 389,334 - 199,8602051 93 93 0 52,650 52,650 399,068 - 346,4182052 94 94 0 53,966 53,966 409,044 - 355,0782053 95 95 0 55,315 55,315 419,270 - 363,955Summary of Cash Flows reflects the contributions and withdrawals (expected inflows and outflows of funds) assumed for your Recommended Investment Plan. This is based upon information you provided. Because this information is likely to change overtime, your actual cash flow experience will differ. You should periodically review this information with your Financial Advisor and discuss any changes to your goals and personal situation in order to keep your Recommended Investment Plan up-to-date.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 77 of 115
  • 78. This is a Preliminary Report SMEnvision Susan & JimCash Flow Detail - Contributions - Recommended Investment PlanResults shown in Actual dollars Jims SusansYear Cash Flow Detail($) Age Age Jims Qualified Plan (Jim):40,000 Taxible Savings (Joint):20,000 Susans Qualified Plan (Sus2010 52 52 an):15,000 Jims Qualified Plan (Jim):41,000 Taxible Savings (Joint):20,000 Susans Qualified Plan (Sus2011 53 53 an):15,375 Jims Qualified Plan (Jim):42,025 Taxible Savings (Joint):20,000 Susans Qualified Plan (Sus2012 54 54 an):15,759 Jims Qualified Plan (Jim):43,076 Taxible Savings (Joint):20,000 Susans Qualified Plan (Sus2013 55 55 an):16,153 Jims Qualified Plan (Jim):44,153 Taxible Savings (Joint):20,000 Susans Qualified Plan (Sus2014 56 56 an):16,557 Jims Qualified Plan (Jim):45,256 Taxible Savings (Joint):20,000 Susans Qualified Plan (Sus2015 57 57 an):16,971 Jims Qualified Plan (Jim):46,388 Taxible Savings (Joint):20,000 Susans Qualified Plan (Sus2016 58 58 an):17,395 Jims Qualified Plan (Jim):47,547 Taxible Savings (Joint):20,000 Susans Qualified Plan (Sus2017 59 59 an):17,830 Jims Qualified Plan (Jim):48,736 Taxible Savings (Joint):20,000 Susans Qualified Plan (Sus2018 60 60 an):18,2762019 61 61 --2020 62 62 --2021 63 63 --2022 64 64 --2023 65 65 --2024 66 66 --2025 67 67 --2026 68 68 --2027 69 69 --2028 70 70 --2029 71 71 --2030 72 72 --08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 78 of 115
  • 79. This is a Preliminary Report SMEnvision Susan & Jim Jims SusansYear Cash Flow Detail($) Age Age2031 73 73 --2032 74 74 --2033 75 75 --2034 76 76 --2035 77 77 --2036 78 78 --2037 79 79 --2038 80 80 --2039 81 81 --2040 82 82 --2041 83 83 --2042 84 84 --2043 85 85 --2044 86 86 --2045 87 87 --2046 88 88 --2047 89 89 --2048 90 90 --2049 91 91 --2050 92 92 --2051 93 93 --2052 94 94 --2053 95 95 --Cash Flow Detail - Schedule of Contributions reflects cash flow elements of your Recommended Investment Plan. This is based upon information you provided. Because this information is likely to change over time, your actual cash flows will differ.You should periodically review this information with your Financial Advisor and discuss any changes to your goals and personal situation in order to keep your Recommended Investment Plan up-to-date.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 79 of 115
  • 80. This is a Preliminary Report SMEnvision Susan & JimCash Flow Detail - Income from Other Sources - Recommended Investment PlanResults shown in Actual dollars Jims SusansYear Cash Flow Detail($) Age Age2010 52 52 --2011 53 53 --2012 54 54 --2013 55 55 --2014 56 56 --2015 57 57 --2016 58 58 --2017 59 59 --2018 60 60 --2019 61 61 -- Partnership Buyout (Jim):77,396 Social Security (Jim):21,997 Social Security (Susan):16,0522020 62 62 Partnership Buyout (Jim):79,331 Social Security (Jim):22,547 Social Security (Susan):16,4542021 63 63 Partnership Buyout (Jim):81,315 Social Security (Jim):23,110 Social Security (Susan):16,8652022 64 64 Partnership Buyout (Jim):83,348 Social Security (Jim):23,688 Social Security (Susan):17,2872023 65 65 Partnership Buyout (Jim):85,431 Social Security (Jim):24,280 Social Security (Susan):17,7192024 66 662025 67 67 Social Security (Jim):27,901 Social Security (Susan):20,3612026 68 68 Social Security (Jim):28,598 Social Security (Susan):20,8702027 69 69 Social Security (Jim):29,313 Social Security (Susan):21,3922028 70 70 Social Security (Jim):30,046 Social Security (Susan):21,9262029 71 71 Social Security (Jim):30,797 Social Security (Susan):22,4752030 72 72 Social Security (Jim):31,567 Social Security (Susan):23,0372031 73 73 Social Security (Jim):32,356 Social Security (Susan):23,6122032 74 74 Social Security (Jim):33,165 Social Security (Susan):24,20308/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 80 of 115
  • 81. This is a Preliminary Report SMEnvision Susan & Jim Jims SusansYear Cash Flow Detail($) Age Age2033 75 75 Social Security (Jim):33,994 Social Security (Susan):24,8082034 76 76 Social Security (Jim):34,844 Social Security (Susan):25,4282035 77 77 Social Security (Jim):35,715 Social Security (Susan):26,0642036 78 78 Social Security (Jim):36,608 Social Security (Susan):26,7152037 79 79 Social Security (Jim):37,523 Social Security (Susan):27,3832038 80 80 Social Security (Jim):38,462 Social Security (Susan):28,0682039 81 81 Social Security (Jim):39,423 Social Security (Susan):28,7692040 82 82 Social Security (Jim):40,409 Social Security (Susan):29,4892041 83 83 Social Security (Jim):41,419 Social Security (Susan):30,2262042 84 84 Social Security (Jim):42,454 Social Security (Susan):30,9822043 85 85 Social Security (Jim):43,516 Social Security (Susan):31,7562044 86 86 Social Security (Jim):44,604 Social Security (Susan):32,5502045 87 87 Social Security (Jim):45,719 Social Security (Susan):33,3642046 88 88 Social Security (Jim):46,862 Social Security (Susan):34,1982047 89 89 Social Security (Jim):48,033 Social Security (Susan):35,0532048 90 90 Social Security (Jim):49,234 Social Security (Susan):35,9292049 91 91 Social Security (Jim):50,465 Social Security (Susan):36,827 Jims Whole Life Benefit (Jim):100,000 Social Security (Jim):51,7262050 92 92 Social Security (Susan):37,7482051 93 93 Social Security (Susan):38,422 Social Security (Susan):14,2282052 94 94 Social Security (Susan):39,382 Social Security (Susan):14,5842053 95 95 Social Security (Susan):40,367 Social Security (Susan):14,948Cash Flow Detail - Schedule of Income from Other Sources reflects cash flow elements of your Recommended Investment Plan. This is based upon information you provided and in some cases, estimates for Social Security. Because this informationis likely to change over time, your actual cash flows will differ. You should periodically review this information with your Financial Advisor and discuss any changes to your goals and personal situation in order to keep your Recommended InvestmentPlan up-to-date.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 81 of 115
  • 82. This is a Preliminary Report SMEnvision Susan & JimCash Flow Detail - Withdrawals - Recommended Investment PlanResults shown in Actual dollars Jims SusansYear Cash Flow Detail($) Age Age2010 52 52 --2011 53 53 Education (John):48,9332012 54 54 Education (John):50,1572013 55 55 Education (John):51,4112014 56 56 Education (John):52,696 Education (Sara):19,8272015 57 57 Education (Sara):20,3222016 58 58 Education (Sara):20,8302017 59 59 Education (Sara):21,3512018 60 60 Executive RV (Jim):304,601 Retirement Goal (Jim):176,668 Travel (Susan):18,2762019 61 61 Retirement Goal (Jim):181,085 Travel (Susan):18,7332020 62 62 Retirement Goal (Jim):185,612 Travel (Susan):19,2012021 63 63 Retirement Goal (Jim):190,253 Travel (Susan):19,6812022 64 64 Retirement Goal (Jim):195,009 Travel (Susan):20,1732023 65 65 Retirement Goal (Jim):199,884 Travel (Susan):20,6782024 66 66 Retirement Goal (Jim):204,881 Travel (Susan):21,1952025 67 67 Retirement Goal (Jim):210,003 Travel (Susan):21,7242026 68 68 Retirement Goal (Jim):215,253 Travel (Susan):22,2682027 69 69 Retirement Goal (Jim):220,635 Travel (Susan):22,8242028 70 70 Retirement Goal (Jim):226,151 Travel (Susan):23,3952029 71 71 Retirement Goal (Jim):231,80408/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 82 of 115
  • 83. This is a Preliminary Report SMEnvision Susan & Jim Jims SusansYear Cash Flow Detail($) Age Age2030 72 72 Retirement Goal (Jim):237,5992031 73 73 Retirement Goal (Jim):243,5392032 74 74 Retirement Goal (Jim):249,6282033 75 75 Retirement Goal (Jim):255,8692034 76 76 Retirement Goal (Jim):262,2652035 77 77 Retirement Goal (Jim):268,8222036 78 78 Retirement Goal (Jim):275,5422037 79 79 Retirement Goal (Jim):282,4312038 80 80 Retirement Goal (Jim):289,4922039 81 81 Retirement Goal (Jim):296,7292040 82 82 Retirement Goal (Jim):304,1472041 83 83 Retirement Goal (Jim):311,7512042 84 84 Retirement Goal (Jim):319,5452043 85 85 Retirement Goal (Jim):327,5332044 86 86 Retirement Goal (Jim):335,7222045 87 87 Retirement Goal (Jim):344,1152046 88 88 Retirement Goal (Jim):352,7182047 89 89 Retirement Goal (Jim):361,5362048 90 90 Retirement Goal (Jim):370,5742049 91 91 Retirement Goal (Jim):379,8382050 92 92 Retirement Goal (Jim):389,3342051 93 93 Retirement Goal (Jim):399,06808/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 83 of 115
  • 84. This is a Preliminary Report SMEnvision Susan & Jim Jims SusansYear Cash Flow Detail($) Age Age2052 94 94 Retirement Goal (Jim):409,0442053 95 95 Retirement Goal (Jim):419,270Cash Flow Detail - Schedule of Withdrawals reflects cash flow elements of your Recommended Investment Plan. This is based upon information you provided. Because this information is likely to change over time, your actual cash flows will differ. Youshould periodically review this information with your Financial Advisor and discuss any changes to your goals and personal situation in order to keep your Recommended Investment Plan up-to-date.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 84 of 115
  • 85. This is a Preliminary Report SMEnvision Susan & JimInvestment Plan AssumptionsTax AssumptionsDescription Pre-Retirement Tax Rates Post-Retirement Tax RatesFiling State Delaware DelawareFiling Status Joint JointInvestment AssumptionsDescription RatesPercentage of Capital Gains Long Term 50.00%Yearly Asset Turnover Rate 100.00%Annual Investment Expenses 0.00%Other AssumptionsDescription RatesGeneral Default Inflation Rate 2.50%Tax rates for each year in the plan are estimated using the federal and state tax schedules as of December 2009, less estimated standard tax deductions. This plan assumes a 20% rate for longterm capital gains. Additionally, federal or state tax deductions for dependents have not been applied. For estimated tax calculations, unused capital losses are offset against future capitalgains. Each year in each simulation may have a unique tax rate associated with it due to the variability of returns and cash flows. Break points for the tax schedules are inflated at 2.5% per year.Due to the complicated nature of planning and calculating federal and state income tax rates, the rates and assumptions are estimates. Your actual situation will differ from these assumptions.This analysis does not constitute tax or legal advice. Please consult with your tax professional and attorney for legal and tax advice.* Cash flows are inflated once per year on the anniversary of the investment plan’s creation date. The inflating of cash flows is necessary to keep goals, savings, other income, etc. up to date with their specified inflation rates.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 85 of 115
  • 86. This is a Preliminary Report SMEnvision Susan & JimDisclosures your financial goals. In some instances, simulations for your Acceptable Investment Plan may notIMPORTANT: The projections or other information generated by Envision provide a Investment Plan Result in the Target Zone.regarding the likelihood of various investment outcomes are hypothetical innature, do not reflect actual investment results and are not guarantees of future Asset Class Assumptionsresults. Results may vary with each use and over time. Securities are grouped in classes based on shared characteristics, such as maturity for bonds and size of the corporation for stocks. The mix of classes best suited for an investor will depend onEnvision Methodology his or her individual investment goals and tolerance for risk. It is generally understood that as anBased on accepted statistical methods, Envision uses a simulation model investor takes more risk, he or she can seek a higher rate of return over time.to test your Ideal, Acceptable and Recommended Investment Plans. The Asset Classification for mutual funds, variable annuities and exchange-traded funds are derivedsimulation model uses assumptions about inflation, financial market returns from Morningstar Categories. Morningstar, Inc. All Rights Reserved. The information containedand the relationships among these variables. These assumptions were derived herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied orfrom analysis of historical data (see Asset Class Assumptions disclosures for distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar normore information). Using Monte Carlo simulation Envision simulates 1,000 its content providers are responsible for any damages or losses arising from any use of thisdifferent potential outcomes over a lifetime of investing varying historical risk, information.return, and correlation amongst the assets. Some of these scenarios will Asset Class Assumptions - Riskassume strong financial market returns, similar to the best periods of history for Risk calculations are used to estimate how asset classes and combinations of classes mayinvestors. Others will be similar to the worst periods in investing history. Most respond during negative market environments. The downside risk calculation represents a lossscenarios will fall somewhere in between. that is unlikely to be exceeded in 10 out of 20 years. However, there is a 1 in 20 risk (5% probability) that the loss over a one-year period could be greater than the downside risk calculation. Risk andTHE ENVISION PROCESS IS NOT FINANCIAL PLANNING return figures are derived from standard investment industry statistical calculations. These are forThe Envision process helps you and your Financial Advisor clearly comparative purposes and not designed to predict actual performance. This is not the maximumunderstand your personal values and goals. You and your Financial loss your portfolio could experience.Advisor can then design a unique investment strategy suited to Asset Class Assumptions - Portfolio Implementationyour goals and financial situation. Unlike financial planning, however, As outlined above, it is assumed that the implemented portfolio matches the recommendedEnvision does not include a detailed analysis of insurance, real allocation model. In actuality, the implemented portfolio may or may not match the risk and returnestate investment or savings strategies. It also does not cover estate characteristics of the recommended model over time due to security selection, inability to investand tax planning. If you desire the benefits of a broader, more in the indices, and other factors. Also, there is no guarantee that portfolios will not exceed the riskcomprehensive financial planning service, talk to your Financial Advisor tolerance range or that historically derived results will be achieved in the future. Returns have not been reduced by sales charges or expenses typically associated with various types of investments.about purchasing a comprehensive financial plan. Your actual investment performance may be higher or lower than that of the asset class to which it was assigned. Our assumptions about risks and returns for individual asset classes are combinedEnvision Investment Plan Result Interpretation and Assumptions with assumptions about the relationships between these returns (their correlation). Asset allocationThe simulated investment returns are combined with your unique financial inflows (savings) and cannot eliminate the risk of fluctuating prices and uncertain returns. We use our best efforts tooutflows (spending goals). The end result is a statistical assessment expressed as a number correctly classify investments. However, no warranty of accuracy is made.referred to as the Investment Plan Result. An Investment Plan Result of 83, for example, meansthat in 830 of the 1,000 scenarios you would have successfully achieved all of your goals. It Equity Investments: Equity investments refer to buying stocks of United States companies.is important to note that the Investment Plan Result reflects the assumption that your The market capitalization of companies is used to group large, medium (Mid) and small companies.assets are invested according to your Strategic (or Custom) allocation. It also reflects the The investment return to the owner of stock (shareholder) is in the form of dividends and/or capitalassumption that you continue with the savings and spending patterns you have indicated appreciation. The market capitalization of companies is used to group large, medium (Mid), andand which are incorporated into your Recommended Investment Plan. However, there is small companies. Shareholders share in both the upside potential and the downside risk.no guarantee that these results will be achieved.Envision Analysis - The Target Zone Capitalization: Market capitalization definitions differ but one example of capitalization methodology is that of Morningstar, which defines "large-capitalization" stocks as those stocks thatYour Envision analysis may suggest that your investment plan may have had a relatively high form the top 70% of the market capitalization of the stocks eligible to be included in the Morningstarlikelihood of meeting your goals. This concept of having a relatively high likelihood is referred to US Market Index (a diversified broad market index that represents approximately 97% of theas the Target Zone. The Target Zone is the range between the 75th and 90th percentile results. market capitalization of publicly traded U.S. Stocks). The Morningstar index methodology definesThis means that between 750 and 900 of the 1,000 simulations resulted in successfully achieving "mid-capitalization" stocks as those stocks that form the 20% of market capitalization betweenthe goals of the investment plan. An Investment Plan Result that falls within this Target Zone the 70th and 90th percentile of the market capitalization and "small-capitalization" stocks as thosesuggests that your investment plan had a reasonable chance of success in the simulations. In stocks that form the 7% of market capitalization between the 90th and 97th percentile of the marketfact, at the 75th percentile level, in 250 of the 1,000 simulations, you would have failed to achieve capitalization of the stocks eligible to be included in the Morningstar US Market Index.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 86 of 115
  • 87. This is a Preliminary Report SMEnvision Susan & Jim Alternative Income: Distinct from traditional Fixed Income is the Alternative IncomeStyle: Blend (sometimes referred to as Core) investing is generally characterized as a strategy category, which includes Hi-Yield Debt, Emerging Markets Debt, and REITs. Such investmentsthat seeks to balance the portfolio of stocks between the Growth and Value styles as market offer greater income potential, but also higher levels of risk than traditional forms of debt.conditions fluctuate. Stocks in the underlying index are designated as "growth" as they are issuedby companies that typically have higher than average historical and forecasted earnings, sales, High Yield Debt: High Yield Bonds are promissory notes of a corporation or government entityequity and cash flow growth. Stocks in the underlying index are weighted according to the total that are considered to be below investment grade by bond rating services. The characterizationnumber of shares that are publicly owned and available for trading. Stocks in the underlying of a high yield bond reflects the creditworthiness of the issuer and potential concerns that interestindex are designated as "value" as they are issued by companies that typically have relatively low payments and return of principal may not be made as promised. High yield bonds may havevaluations based on price-to-earnings, price-to book value, price-to-sales, price-to-cash flow and maturities of various lengths.dividend yields. The stocks in the underlying index are weighted according to the total number ofshares that are publicly owned and available for trading. Emerging Markets Debt: Emerging Markets Debt is comprised of external debt instrumentsFixed Income Securities (Bonds) : Bonds are promissory notes of a United States in the developing markets. These instruments may be denominated in United States dollarscorporation or federal government entity (taxable bonds) or a state or local government entity or in external currencies. A large portion of the emerging market debt is issued by Argentina,(tax-exempt or municipal bonds). Bonds usually make a series of interest payments followed by Brazil, Bulgaria, Columbia, Ecuador, Egypt, Mexico, Morocco, Nigeria, Panama, Peru, Philippines,a return of principal at maturity. If sold prior to maturity, the price that can be obtained for a bond Poland, Russia, South Africa, Turkey, Ukraine and Venezuela.may be more or less than face value, depending on interest rates at the time the bond is sold andthe remaining term of the bond. Real Estate Investment Trust (REIT): A REIT combines the capital of many investors to either acquire or provide financing for real estate.Fixed income securities include Treasuries (i.e., public obligations of the U.S. Treasury that haveremaining maturities of more than one year), Government-Related issues (i.e., agency, sovereign, REIT Equity: An equity REIT usually assumes ownership status in the property in whichsupranational, and local authority debt), and Corporate Bonds. it invests, enabling its investors to earn dividends on rental income from the property and appreciation in property sale. Equity REITs are characterized as equities or alternative income,Term: Short-term bonds have maturities ranging from one to six years; intermediate bonds have due to their unique qualities.effective maturities between six and twelve years; and long-term bonds have maturities of twelveyears or longer. REIT Mortgage: A mortgage REIT usually invests in loans and mortgages secured by real estate and derives its income from mortgage interest and fees. Some mortgage REITs also borrowIncome from tax exempt bonds is generally free from federal and state taxes for residents of the money from the banks and re-lend it at higher interest rates.issuing state. While the interest income is tax-free, capital gains if any are subject to taxes. Incomeof certain tax-exempt bonds may be subject to the Federal Alternative Minimum Tax (AMT). There are special risks associated with an investment in real estate, including credit risk, interest rate fluctuations and the impact of changing economic conditions.Multi-Class: This category is primarily used to classify investments that include a substantialamount of both equity and fixed income investments, or some other combination of classes. Cash Equivalents: This category includes short term, liquid, interest-bearing investments having maturities of less than one year. It is usually used for temporary investment purposesInternational Investments: International investments include any type of investment made pending a distribution or other transaction. Money market accounts and Treasury bills arein financially established markets outside of the United States. Various securities can be used considered cash equivalents.to invest in international markets, including but not limited to fixed income securities, AmericanDepository Receipts (ADRs), equities and funds. Alternative Investments: Alternative Investments encompass a range of processes to provide the investor with access to markets or investment strategies that are generally not easilyAs of June 2007 the MSCI Europe, Australasia, Far East Index (EAFE) consisted of the following accessible by individuals or smaller institutional investors. These often involve potentially higher21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, risk strategies, such as employing leverage and / or short sales.Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway,Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Hedge funds are complex, speculative investment vehicles and are not suitable for all investors. They are generally open to qualified investors only and carry high costs, substantial risks, and mayInvesting in foreign securities such as International Investments, Emerging Markets Equity, and be highly volatile. There is often limited (or even non-existent) liquidity and a lack of transparencyEmerging Markets Debt, presents certain and unique risks traditionally not associated with regarding the underlying assets.domestic investment, such as currency fluctuation and political and economic changes. Thesetypes of investments may focus on certain geographical regions, thereby increasing vulnerabilityto adverse developments in that region. This may result in greater price volatility. Managed Futures: Managed futures funds combine the capital of many investors in order to invest in the global futures and forward markets. This may include currencies, stockEmerging Markets Equity: Emerging Markets Equity consists of stocks issued by publicly indices, financial instruments, energy products, metals, and agricultural products. Global futures exchanges allow managers to diversify portfolios by geography and by product. Managed futurestraded companies of the major developing countries around the world. Examples of these countries are speculative investments that are subject to a significant amount of risk.would include: Argentina, Brazil, China, Russia, and South Africa. Fund of Hedge Fund (Fund of Funds): Currently three types of fund of funds are classified in the Capital Markets Assumptions:08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 87 of 115
  • 88. This is a Preliminary Report SMEnvision Susan & Jim Report DisclosuresHedged Equities: Equity Hedge strategies maintain positions both long and short in primarily The indexes mentioned in this report, such as the S&P 500 and MSCI EAFE are unmanagedequity and equity derivative securities. A wide variety of investment processes can be employed indexes of common stock or fixed-income. Unmanaged indexes are for illustrative purposes only.to arrive at an investment decision, including both quantitative and fundamental techniques; An investor cannot invest directly in an index.strategies can be broadly diversified or narrowly focused on specific sectors and can range broadlyin terms of levels of net exposure, leverage employed, holding period, concentrations of market The material has been prepared or is distributed solely for information purposes and does notcapitalizations and valuation ranges of typical portfolios. Equity Hedge managers would typically supersede the proper use of your account statements and/or trade confirmations, which aremaintain at least 50% and may, in some cases, be substantially invested in equities, both long and considered to be the official and accurate records of your account activity. Any market prices areshort. Hedged equities hedge funds generally seek to make profits by buying a group of under- only indications of market values, are subject to change, and may not reflect the value at whichpriced stocks/bonds and shorting a related group of over-priced stocks/bonds or indices. securities could be sold. Additionally, the report is prepared as of trade date, rather than settlement date, and may be prepared on a different date than your statement. The information contained inRelative Value: Investment Managers who maintain positions in which the investment thesis this report may not reflect all holdings or transactions, their costs, or proceeds in your account.is predicated on realization of a valuation discrepancy in the relationship between multiple Contact your Financial Advisor for further information. The report may also include information yousecurities. Managers employ a variety of fundamental and quantitative techniques to establish provided about assets held at other firms. We have relied solely on information from you regardinginvestment theses, and security types range broadly across equity, fixed income, derivative or those assets.other security types. Fixed income strategies are typically quantitatively driven to measure theexisting relationship between instruments and in some cases, identify attractive positions in which This report is not a substitute for your own records and the year-end 1099 form. Cost data andthe risk adjusted spread between these instruments represents an attractive opportunity for the acquisition dates provided by you are not verified by our firm. Our firm does not render legal,investment manager. Relative value positions may also be involved in corporate transactions. accounting or tax advice. Please consult your legal tax advisors before taking any action that may have tax consequences.Diversified: A Fund of Hedge Funds that falls under this category usually invests with hedgefunds that fall under relative value and hedged equities categories. © 2001-2010 Financeware, Inc. U.S. Patents 7,562,040, 7,650,303 and 7,765,138. Other U.S. and international patents pending. All Rights Reserved.Hedge funds are complex investment vehicles and are not suitable for all investors. Hedge fundsoften engage in the use of leverage and other speculative investment practices, such as shortsales, options, derivatives, futures and illiquid investments that may increase the risk of investmentloss.Commodities: These assets are usually agricultural products such as corn, livestock, coffeeand cocoa or metals such as gold, copper and silver, or energy products such as oil and naturalgas. Each commodity generally has a common price internationally. For example, corn generallytrades at one price on commodity markets worldwide. Commodities can either be sold on thespot market for immediate delivery or on the commodities exchanges for later delivery. Trade oncommodities exchanges is usually in the form of future contracts.Trading in futures of commodities and options is not appropriate for all persons, as the risk of lossis substantial. Therefore, except for those considered to be bona fide hedgers, only risk capitalshould be used in futures.Other: This classification represents securities which could not be definitively classified becausethere is insufficient similarity between the security and the defined asset classes. There maybe inconsistencies in one or more of the following factors: historical performance, investmentobjective or asset composition. This analysis assigns relatively high downside risk and relativelylow returns to assets classified as Other in order to conservatively assess their impact on theportfolio.Envision ImplementedEnvision allows you to identify unrealistic expectations and create an investment plan of action.If this is the result, we will help you re-evaluate your goals, make adjustments, and create aRecommended Investment Plan that you feel is right for you. Whether you are already retired,planning for future retirement, or planning for other goals, the Envision process enables you tomonitor and test your Recommended Investment Plan throughout your lifetime. You can changeexisting goals or add new goals in future years. Through periodic monitoring, you can assess theimpact that your actual savings and spending patterns, investment returns and portfolio valueshave had on your Investment Plan result.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 88 of 115
  • 89. This is a Preliminary Report SMEnvision Susan & JimStrategic Allocations (Standard)Additional firm-sponsored strategic allocation models may be selected for your Investment Plan that may include updated asset allocation assumptions or mayvary slightly from these standard strategic allocation models. Please refer to your Current vs. Strategic Allocation page for an illustration of the allocation mix forthese models. Conservative Moderate Long Term Conservative Conservative Moderate Moderate Long Term Long Term Name Growth & Growth & Growth & Income Growth Income Growth Income Growth Income Income IncomeLarge Cap Growth 0.00% 7.00% 14.00% 6.00% 12.00% 13.00% 6.00% 15.00% 12.00%Large Cap Value 2.00% 7.00% 14.00% 5.00% 11.00% 13.00% 6.00% 14.00% 12.00%Mid Cap Growth 0.00% 2.00% 5.00% 0.00% 4.00% 7.00% 0.00% 6.00% 8.00%Mid Cap Value 0.00% 2.00% 5.00% 0.00% 4.00% 7.00% 0.00% 6.00% 8.00%Mid Cap Blend 2.00% 0.00% 0.00% 2.00% 0.00% 0.00% 4.00% 0.00% 0.00%Small Cap Growth 0.00% 2.00% 4.00% 0.00% 3.00% 7.00% 0.00% 5.00% 8.00%Small Cap Value 0.00% 2.00% 4.00% 0.00% 3.00% 7.00% 0.00% 5.00% 8.00%Small Cap Blend 0.00% 0.00% 0.00% 2.00% 0.00% 0.00% 4.00% 0.00% 0.00%International Equity 2.00% 6.00% 10.00% 4.00% 7.00% 16.00% 6.00% 10.00% 22.00%Emerging Market 0.00% 4.00% 9.00% 0.00% 6.00% 11.00% 0.00% 8.00% 15.00%EquityShort Term Taxable 30.00% 10.00% 8.00% 20.00% 5.00% 3.00% 7.00% 0.00% 0.00%Fixed IncomeIntermediate 40.00% 25.00% 13.00% 25.00% 17.00% 4.00% 20.00% 5.00% 0.00%Taxable FixedIncomeLong Term Taxable 5.00% 18.00% 5.00% 10.00% 8.00% 3.00% 15.00% 3.00% 0.00%Fixed IncomeInternational Fixed 5.00% 3.00% 0.00% 5.00% 3.00% 0.00% 5.00% 3.00% 0.00%IncomeEmerging Market 2.00% 3.00% 0.00% 7.00% 4.00% 0.00% 10.00% 5.00% 0.00%DebtHigh Yield Fixed 4.00% 4.00% 2.00% 9.00% 8.00% 2.00% 12.00% 10.00% 0.00%IncomeREIT Equity 3.00% 3.00% 2.00% 3.00% 3.00% 2.00% 3.00% 3.00% 2.00%Commodities 0.00% 0.00% 3.00% 0.00% 0.00% 3.00% 0.00% 0.00% 3.00%Cash Equivalent 5.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 89 of 115
  • 90. This is a Preliminary Report SMEnvision Susan & JimCapital Market AssumptionsCapital Market Assumptions for all asset classes assume a broadly diversified portfolio generally representative of the risks and opportunities of the asset class.To the extent that the investors portfolio is not as diversified as the assumptions made for the asset class, the return and risk potential for the portfolio may varysignificantly from the assumed Capital Market Assumptions.The Capital Market Assumptions used within this illustration are based on a building-block approach of risk premiums and Sharpe Ratio Equivalency. The returnsfor each asset class reflect the premium above the short-term risk-free rate of return that investors are likely to demand in order to compensate for the risk ofholding those assets. Sharpe ratio equivalency provides a consistent comparison of long term risk premium across various asset classes for a 10-15 year timehorizon or a period, covering more than one economic cycle. These long-term assumptions may differ greatly from the short-term performance and volatilityexperienced by your actual investment holdings. There are no assurances that the estimates will be achieved. They have been provided as a guide to help youwith your investment planning.Representative Index is provided to clients as an example of a public index that generally reflects the associated asset class. Capital Market Assumptions are notbased on the Representative Index. You cannot invest directly in an index. Asset Class Downside Risk 1 Average Annual Return Representative IndexLarge Cap Growth -16.82% 8.66% Morningstar Large Cap Growth©Large Cap Value -15.96% 8.30% Morningstar Large Cap Value©Large Cap Blend -16.17% 8.46% S & P 500Mid Cap Growth -19.24% 9.15% Morningstar Mid Cap Growth©Mid Cap Value -18.42% 8.82% Morningstar Mid Cap Value©Mid Cap Blend -18.88% 8.94% Morningstar Mid Cap Blend©Small Cap Growth 3 -20.58% 9.49% Morningstar Small Cap Growth©Small Cap Value 3 -19.69% 9.27% Morningstar Small Cap Value©Small Cap Blend 3 -20.14% 9.38% Morningstar Small Cap Blend©International Equity 4 -17.09% 8.88% MSCI EAFE IndexEmerging Market Equity -24.34% 10.53% MSCI Emerging Market IndexShort Term Taxable Fixed Income 0.22% 3.78% BarCap Govt/Credit 1-3 Yr TR USD (%Total Return)Intermediate Taxable Fixed Income -4.04% 4.61% BarCap US Govt/Credit Interm. TR USD (%Total Return)Long Term Taxable Fixed Income -7.80% 4.88% BarCap US Govt/Credit Long TR USD (%Total Return)Short Term Tax Exempt Fixed Income -4.13% 3.00% BarCap 2-4 Year Municipal Bond IndexIntermediate Tax Exempt Fixed Income -6.68% 3.30% BarCap 8-12 Year Municipal Bond IndexLong Term Tax Exempt Fixed Income -10.11% 3.61% BarCap 22+ year Municipal Bond IndexInternational Fixed Income 4 -5.91% 5.26% ML Global Sovereign Bond IndexEmerging Market Debt -14.19% 7.58% J.P. Morgan Emerging Markets Bond Index PlusHigh Yield Fixed Income 2 -14.29% 7.48% ML US High Yield Cash PayREIT Equity -14.79% 7.61% NAREIT Equity REIT Index08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 90 of 115
  • 91. This is a Preliminary Report SMEnvision Susan & Jim Asset Class Downside Risk 1 Average Annual Return Representative IndexREIT Mortgage -20.52% 7.21% NAREIT Mortgage REIT IndexMulti Class -10.64% 7.24% Blend 60% S&P 500/40% Barcap Govt./Credit Interm.Managed Futures -12.99% 7.51% CISDM Fund / Pool Qualified Universe IndexHedge Funds - Relative Value -7.87% 6.58% Hedge Fund Research Incorporated (HFRI)*Hedge Funds - Diversified -10.05% 7.84% Hedge Fund Research Incorporated (HFRI)*Hedge Funds - Hedged Equities -15.08% 9.22% Hedge Fund Research Incorporated (HFRI)*Commodities -19.84% 7.92% Goldman Sachs Commodity Total Return IndexGold -12.96% 6.22% London PM FixingOther -25.96% 3.79% NoneCash Equivalent 0.55% 3.18% U.S. 3 Month T-BillAdditional Disclosures1 The Average Annual Return is time-weighted. It is a measure of the compound rate of growth of the asset class.2 Various rating services, such as Standard and Poors and Moodys Investor Service rate the creditworthiness of bonds. Investing in lower-rated debt securities or funds that invest in such securities involvesadditional risk because of the lower credit quality of the security or fund portfolio. These securities or funds are subject to a higher level of volatility and increased risk of default, or loss of principal.3 Investing in small companies or mutual funds that invest in small companies involves additional risk. Smaller companies typically have a higher risk of failure and are not as well established as larger bluechip companies. Historically, smaller-company stocks have experienced a greater degree of price volatility than the overall market average.4 International investing may involve special risks such as currency fluctuation, political instability, and different methods of accounting and reporting requirements.* Hedge Fund Research, Inc. ©2010, www.hedgefundresearch.comAlternative investments carry specific investor qualifications which can include high income and net-worth requirements as well as relatively high investment minimums. They are complex investment vehicleswhich generally have high costs and substantial risks. They tend to be more volatile than other types of investments and present an increased risk of investment loss. There may also be a lack of transparencyas to the underlying assets. Alternative investments are subject to fewer regulatory requirements than mutual funds and other registered investment company products and thus may offer investors fewer legalprotections than they would have with more traditional investments. Additionally, there may be no secondary market for alternative investment interests and transferability may be limited or even prohibited.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 91 of 115
  • 92. This is a Preliminary Report SMEnvision Susan & Jim Portfolio Insight08/20/2010 Page 92 of 115
  • 93. This is a Preliminary Report SMEnvision Susan & JimPortfolio SummaryBy: Security Sub Type Cash (2.8%) NotAvailable (97.2%) Taxable MV Tax Advantaged MV Total MV $ % $ % $ %Cash 62,500 25.0% 0 0.0% 62,500 2.8% Joint Account (88888888) 62,500 25.0% 0 0.0% 62,500 2.8%NotAvailable 187,500 75.0% 2,000,000 100.0% 2,187,500 97.2% Jims PSP Deferred (88888888) 0 0.0% 1,500,000 75.0% 1,500,000 66.7% Johns 529 Plan (88888888) 0 0.0% 130,000 6.5% 130,000 5.8% Joint Account (88888888) 187,500 75.0% 0 0.0% 187,500 8.3% Saras 529 Plan (88888888) 0 0.0% 120,000 6.0% 120,000 5.3% Susans IRA (88888888) 0 0.0% 250,000 12.5% 250,000 11.1%Portfolio Summary Total 250,000 11.1% 2,000,000 88.9% 2,250,000 100.0%Total Portfolio Value as of 08/19/10:__$ 2,250,000This report is not complete without the Understanding Your Portfolio report which contains important terms and definitions.08/20/2010 Page 93 of 115
  • 94. This is a Preliminary Report SMEnvision Susan & JimPortfolio Summary - Security DetailBy: Security Sub Type Cash (2.8%) NotAvailable (97.2%) Taxable MV Tax Advantaged MV Total MVID Description Quantity Price $ % $ % $ %Cash 62,500 25.0% 0 0.0% 62,500 2.8% Joint Account (88888888) 62,500 25.0% 0 0.0% 62,500 2.8%- Cash Equivalent 62,500 1.00 62,500 25.0% 0 0.0% 62,500 2.8%NotAvailable 187,500 75.0% 2,000,000 100.0% 2,187,500 97.2% Jims PSP Deferred (88888888) 0 0.0% 1,500,000 75.0% 1,500,000 66.7%- International Equity 1,200,000 1.00 0 0.0% 1,200,000 60.0% 1,200,000 53.3%- Other 300,000 1.00 0 0.0% 300,000 15.0% 300,000 13.3% Johns 529 Plan (88888888) 0 0.0% 130,000 6.5% 130,000 5.8%- Long Term Taxable Fixed Income 130,000 1.00 0 0.0% 130,000 6.5% 130,000 5.8% Joint Account (88888888) 187,500 75.0% 0 0.0% 187,500 8.3%- REIT Equity 187,500 1.00 187,500 75.0% 0 0.0% 187,500 8.3% Saras 529 Plan (88888888) 0 0.0% 120,000 6.0% 120,000 5.3%- Long Term Taxable Fixed Income 120,000 1.00 0 0.0% 120,000 6.0% 120,000 5.3% Susans IRA (88888888) 0 0.0% 250,000 12.5% 250,000 11.1%- International Equity 250,000 1.00 0 0.0% 250,000 12.5% 250,000 11.1%Portfolio Summary Total 250,000 11.1% 2,000,000 88.9% 2,250,000 100.0%Total Portfolio Value as of 08/19/10:__$ 2,250,000This report is not complete without the Understanding Your Portfolio report which contains important terms and definitions.08/20/2010 Page 94 of 115
  • 95. This is a Preliminary Report SMEnvision Susan & JimPortfolio DiversificationBy: Asset Class, Security Sub Type Market Unrealized Est Annual Est Annual Cost($) % of Account Value($) G/L($) Income($) Yield(%)Jims PSP Deferred (88888888) 1,500,000 - - 100.0%Equity 1,200,000 - - 80.0% NotAvailable 1,200,000 - - 80.0%Other 300,000 - - 20.0% NotAvailable 300,000 - - 20.0%* Indicates that this position is not held at First Clearing Corp. and that this information was provided by you.Unless indicated otherwise, the Price and Cost are adjusted on certain fixed income securities for amortization (if purchased at a premium), accretion (if purchased at a discount) and/or commission andfees. The summary values for Cost and Unrealized Gain/Loss may include values based on a combination of adjusted and original cost basis.08/20/2010 Page 95 of 115
  • 96. This is a Preliminary Report SMEnvision Susan & Jim Market Unrealized Est Annual Est Annual Cost($) % of Account Value($) G/L($) Income($) Yield(%)Johns 529 Plan (88888888) 75,000 130,000 55,000 - - 8.7%Fixed Income 75,000 130,000 55,000 - - 8.7% NotAvailable 75,000 130,000 55,000 - - 8.7%* Indicates that this position is not held at First Clearing Corp. and that this information was provided by you.Unless indicated otherwise, the Price and Cost are adjusted on certain fixed income securities for amortization (if purchased at a premium), accretion (if purchased at a discount) and/or commission andfees. The summary values for Cost and Unrealized Gain/Loss may include values based on a combination of adjusted and original cost basis.08/20/2010 Page 96 of 115
  • 97. This is a Preliminary Report SMEnvision Susan & Jim Market Unrealized Est Annual Est Annual Cost($) % of Account Value($) G/L($) Income($) Yield(%)Joint Account (88888888) 242,500 250,000 7,500 - - 16.7%Equity 180,000 187,500 7,500 - - 12.5% NotAvailable 180,000 187,500 7,500 - - 12.5%Cash 62,500 62,500 0 - - 4.2% Cash 62,500 62,500 0 - - 4.2%* Indicates that this position is not held at First Clearing Corp. and that this information was provided by you.Unless indicated otherwise, the Price and Cost are adjusted on certain fixed income securities for amortization (if purchased at a premium), accretion (if purchased at a discount) and/or commission andfees. The summary values for Cost and Unrealized Gain/Loss may include values based on a combination of adjusted and original cost basis.08/20/2010 Page 97 of 115
  • 98. This is a Preliminary Report SMEnvision Susan & Jim Market Unrealized Est Annual Est Annual Cost($) % of Account Value($) G/L($) Income($) Yield(%)Saras 529 Plan (88888888) 65,000 120,000 55,000 - - 8.0%Fixed Income 65,000 120,000 55,000 - - 8.0% NotAvailable 65,000 120,000 55,000 - - 8.0%* Indicates that this position is not held at First Clearing Corp. and that this information was provided by you.Unless indicated otherwise, the Price and Cost are adjusted on certain fixed income securities for amortization (if purchased at a premium), accretion (if purchased at a discount) and/or commission andfees. The summary values for Cost and Unrealized Gain/Loss may include values based on a combination of adjusted and original cost basis.08/20/2010 Page 98 of 115
  • 99. This is a Preliminary Report SMEnvision Susan & Jim Market Unrealized Est Annual Est Annual Cost($) % of Account Value($) G/L($) Income($) Yield(%)Susans IRA (88888888) 250,000 - - 16.7%Equity 250,000 - - 16.7% NotAvailable 250,000 - - 16.7%* Indicates that this position is not held at First Clearing Corp. and that this information was provided by you.This report is not a substitute for official tax reporting. Most securities are subject to capital gains taxes and some may be considered in calculations for Alternative Minimum Tax (AMT) that are not sodesignated here. Consult your tax advisor regarding the taxability of your holdings.The Description column contains specific information about fixed income instruments and may include an abbreviated name, coupon rate, and maturity date.Unless indicated otherwise, the Price and Cost are adjusted on certain fixed income securities for amortization (if purchased at a premium), accretion (if purchased at a discount) and/or commission andfees. The summary values for Cost and Unrealized Gain/Loss may include values based on a combination of adjusted and original cost basis.Due to timing issues, initial price and cost will be calculated either to the prior month end or the current month end. The difference should be negligible. Common stocks should always reflect adjusted cost.This report is not complete without the Understanding Your Portfolio report which contains important terms and definitions, including definitions of Estimated Annual Income and Yield.Estimated Annual Income (EAI) is a forecast of dividends and interest payments for the future 12-month period, beginning with the whole month following this report. However, some exceptions do exist. Forexample, open end mutual fund income estimates reflect the summation of the prior 12 months of dividends, and our data providers may choose to apply the same methodology to other unique circumstances.Generally speaking, however, estimates are approximations based upon prior (or if available declared) payments and are not intended to project or predict future distributions. Estimates are based uponcurrent positions and subsequent position changes will affect these estimates. Interest payments may be affected by the financial condition of the issuer. EAI for certain types of securities could includea return of principal or capital gain, in which case the EAI would be overstated. Past performance is not a guarantee of future results and actual income might be lower or higher than the estimatedamounts; which means the Estimated Annual Yield (if provided) could similarly be overstated and should not be relied upon in absolute terms. The current yield on bonds is simply the EAI divided by thecurrent market value. No consideration is given for premium or discount at purchase, which affect the yield the investor will realize on the bond if held to redemption date, called or sold prior to maturity.Dividend payments are made solely at the discretion of the issuer and are subject to be changed or eliminated at any time. Estimated income for bank deposit sweep accounts is calculated using rates whichare subject to daily fluctuation. As such, estimates may be rendered obsolete in less than one day.08/20/2010 Page 99 of 115
  • 100. This is a Preliminary Report SMEnvision Susan & JimPortfolio Diversification - Security DetailBy: Asset Class, Security Sub Type Purchase Purchase Market Market Unrealized Est Annual Est Annual % of Quantity Description Cost($) Date Price($) Price($) Value($) G/L($) Income($) Yield(%) AccountJims PSP Deferred (88888888) 1,500,000 - - 100.0%Equity 1,200,000 - - 80.0% NotAvailable 1,200,000 - - 80.0% 1,200,000 International Equity - 1.00 1,200,000 - - 80.0%Other 300,000 - - 20.0% NotAvailable 300,000 - - 20.0% 300,000 Other - 1.00 300,000 - - 20.0%* Indicates that this position is not held at First Clearing Corp. and that this information was provided by you.Unless indicated otherwise, the Price and Cost are adjusted on certain fixed income securities for amortization (if purchased at a premium), accretion (if purchased at a discount) and/or commission andfees. The summary values for Cost and Unrealized Gain/Loss may include values based on a combination of adjusted and original cost basis.08/20/2010 Page 100 of 115
  • 101. This is a Preliminary Report SMEnvision Susan & Jim Purchase Purchase Market Market Unrealized Est Annual Est Annual % of Quantity Description Cost($) Date Price($) Price($) Value($) G/L($) Income($) Yield(%) AccountJohns 529 Plan (88888888) 75,000 130,000 55,000 - - 8.7%Fixed Income 75,000 130,000 55,000 - - 8.7% NotAvailable 75,000 130,000 55,000 - - 8.7% 130,000 Long Term Taxable Fixed Income - 75,000 1.00 130,000 55,000 - - 8.7%* Indicates that this position is not held at First Clearing Corp. and that this information was provided by you.Unless indicated otherwise, the Price and Cost are adjusted on certain fixed income securities for amortization (if purchased at a premium), accretion (if purchased at a discount) and/or commission andfees. The summary values for Cost and Unrealized Gain/Loss may include values based on a combination of adjusted and original cost basis.08/20/2010 Page 101 of 115
  • 102. This is a Preliminary Report SMEnvision Susan & Jim Purchase Purchase Market Market Unrealized Est Annual Est Annual % of Quantity Description Cost($) Date Price($) Price($) Value($) G/L($) Income($) Yield(%) AccountJoint Account (88888888) 242,500 250,000 7,500 - - 16.7%Equity 180,000 187,500 7,500 - - 12.5% NotAvailable 180,000 187,500 7,500 - - 12.5% 187,500 REIT Equity - 180,000 1.00 187,500 7,500 - - 12.5%Cash 62,500 62,500 0 - - 4.2% Cash 62,500 62,500 0 - - 4.2% 62,500 Cash Equivalent 1.00 62,500 1.00 62,500 0 - - 4.2%* Indicates that this position is not held at First Clearing Corp. and that this information was provided by you.Unless indicated otherwise, the Price and Cost are adjusted on certain fixed income securities for amortization (if purchased at a premium), accretion (if purchased at a discount) and/or commission andfees. The summary values for Cost and Unrealized Gain/Loss may include values based on a combination of adjusted and original cost basis.08/20/2010 Page 102 of 115
  • 103. This is a Preliminary Report SMEnvision Susan & Jim Purchase Purchase Market Market Unrealized Est Annual Est Annual % of Quantity Description Cost($) Date Price($) Price($) Value($) G/L($) Income($) Yield(%) AccountSaras 529 Plan (88888888) 65,000 120,000 55,000 - - 8.0%Fixed Income 65,000 120,000 55,000 - - 8.0% NotAvailable 65,000 120,000 55,000 - - 8.0% 120,000 Long Term Taxable Fixed Income - 65,000 1.00 120,000 55,000 - - 8.0%* Indicates that this position is not held at First Clearing Corp. and that this information was provided by you.Unless indicated otherwise, the Price and Cost are adjusted on certain fixed income securities for amortization (if purchased at a premium), accretion (if purchased at a discount) and/or commission andfees. The summary values for Cost and Unrealized Gain/Loss may include values based on a combination of adjusted and original cost basis.08/20/2010 Page 103 of 115
  • 104. This is a Preliminary Report SMEnvision Susan & Jim Purchase Purchase Market Market Unrealized Est Annual Est Annual % of Quantity Description Cost($) Date Price($) Price($) Value($) G/L($) Income($) Yield(%) AccountSusans IRA (88888888) 250,000 - - 16.7%Equity 250,000 - - 16.7% NotAvailable 250,000 - - 16.7% 250,000 International Equity - 1.00 250,000 - - 16.7%* Indicates that this position is not held at First Clearing Corp. and that this information was provided by you.This report is not a substitute for official tax reporting. Most securities are subject to capital gains taxes and some may be considered in calculations for Alternative Minimum Tax (AMT) that are not sodesignated here. Consult your tax advisor regarding the taxability of your holdings.The Description column contains specific information about fixed income instruments and may include an abbreviated name, coupon rate, and maturity date.Unless indicated otherwise, the Price and Cost are adjusted on certain fixed income securities for amortization (if purchased at a premium), accretion (if purchased at a discount) and/or commission andfees. The summary values for Cost and Unrealized Gain/Loss may include values based on a combination of adjusted and original cost basis.Due to timing issues, initial price and cost will be calculated either to the prior month end or the current month end. The difference should be negligible. Common stocks should always reflect adjusted cost.This report is not complete without the Understanding Your Portfolio report which contains important terms and definitions, including definitions of Estimated Annual Income and Yield.Estimated Annual Income (EAI) is a forecast of dividends and interest payments for the future 12-month period, beginning with the whole month following this report. However, some exceptions do exist. Forexample, open end mutual fund income estimates reflect the summation of the prior 12 months of dividends, and our data providers may choose to apply the same methodology to other unique circumstances.Generally speaking, however, estimates are approximations based upon prior (or if available declared) payments and are not intended to project or predict future distributions. Estimates are based uponcurrent positions and subsequent position changes will affect these estimates. Interest payments may be affected by the financial condition of the issuer. EAI for certain types of securities could includea return of principal or capital gain, in which case the EAI would be overstated. Past performance is not a guarantee of future results and actual income might be lower or higher than the estimatedamounts; which means the Estimated Annual Yield (if provided) could similarly be overstated and should not be relied upon in absolute terms. The current yield on bonds is simply the EAI divided by thecurrent market value. No consideration is given for premium or discount at purchase, which affect the yield the investor will realize on the bond if held to redemption date, called or sold prior to maturity.Dividend payments are made solely at the discretion of the issuer and are subject to be changed or eliminated at any time. Estimated income for bank deposit sweep accounts is calculated using rates whichare subject to daily fluctuation. As such, estimates may be rendered obsolete in less than one day.08/20/2010 Page 104 of 115
  • 105. This is a Preliminary Report SMEnvision Susan & JimRealized Gain and LossBy: Account Tax Status,Holding Term,Asset Class Purch Cost Adj Cost Proceeds($) Gain/Loss Purch($) Adj($)Total Portfolio Value as of 08/19/10:__$ 2,250,000This report is not a substitute for your own records and the year-end 1099 form. Cost data and acquisition dates provided by you are not verified by our firm. Our firm does not render legal, accounting ortax advice. Transactions requiring tax considerations should be reviewed carefully with your accountant or tax advisor.Long-term investment assets are defined as assets that have been held for at least 366 days (more than one year) and may be subject to tax treatment as long-term capital gains. Conversely, short-terminvestment assets are those that have been held for one year or less and may be subject to tax treatment as short-term capital gains. Miscellaneous indicates insufficient data to determine holding term.This report contains only positions that were closed since January 1 of the current year.Adjusted Cost: Cost bases on certain fixed income securities have been adjusted for amortization, if purchased at a premium, or accretion, if purchased at a discount.Due to timing issues, adjusted price/cost for a closed lot will either be the prior month end price/cost or the adjusted price/cost calculated to the redemption date. This difference should be negligible. Pleaserefer to year-end tax documents for official guidance.This report is not complete without the Understanding Your Portfolio report which contains important terms and definitions.08/20/2010 Page 105 of 115
  • 106. This is a Preliminary Report SMEnvision Susan & JimRealized Gain and Loss - Security DetailBy: Account Tax Status,Holding Term,Asset ClassDescription Purch Date Orig Price Adj Price Close Price Purch Cost Adj Cost Proceeds($) Gain /Loss Purch($) Adj($)ID Quantity Close DateTotal Portfolio Value as of 08/19/10:__$ 2,250,000This report is not a substitute for your own records and the year-end 1099 form. Cost data and acquisition dates provided by you are not verified by our firm. Our firm does not render legal, accounting ortax advice. Transactions requiring tax considerations should be reviewed carefully with your accountant or tax advisor.Long-term investment assets are defined as assets that have been held for at least 366 days (more than one year) and may be subject to tax treatment as long-term capital gains. Conversely, short-terminvestment assets are those that have been held for one year or less and may be subject to tax treatment as short-term capital gains. Miscellaneous indicates insufficient data to determine holding term.This report contains only positions that were closed since January 1 of the current year.The Description column contains specific information about fixed income instruments and may include an abbreviated name, coupon rate and maturity date.Adjusted Price is the original purchase price on certain fixed income securities adjusted using amortization calculations for a premium or accretion for a discount.Adjusted Cost: Cost bases on certain fixed income securities have been adjusted for amortization, if purchased at a premium, or accretion, if purchased at a discount.Due to timing issues, adjusted price/cost for a closed lot will either be the prior month end price/cost or the adjusted price/cost calculated to the redemption date. This difference should be negligible. Pleaserefer to year-end tax documents for official guidance.This report is not complete without the Understanding Your Portfolio report which contains important terms and definitions.08/20/2010 Page 106 of 115
  • 107. This is a Preliminary Report SMEnvision Susan & JimUnrealized Gain and LossBy: Account Tax Status,Holding Term,Asset Class Purch Cost Adj Cost Mkt Value($) Gain/Loss Purch($) Adj($)Taxable Accounts 242,000 242,000 250,000 8,000 8,000 Miscellaneous 242,000 242,000 250,000 8,000 8,000 Equity 180,000 180,000 187,500 7,500 7,500 Cash 62,000 62,000 62,500 500 500Tax Deferred Accounts 1,750,000 Miscellaneous 1,750,000 Equity 1,450,000 Other 300,000Tax Advantaged Education Accounts 140,000 140,000 250,000 110,000 110,000 Miscellaneous 140,000 140,000 250,000 110,000 110,000 Fixed Income 140,000 140,000 250,000 110,000 110,000Unrealized Gain and Loss Total 382,000 382,000 2,250,000 118,000 118,000Total Portfolio Value as of 08/19/10:__$ 2,250,000This report is not a substitute for your own records and the year-end 1099 form. Cost data and acquisition dates provided by you are not verified by our firm. Our firm does not render legal, accounting ortax advice. Transactions requiring tax considerations should be reviewed carefully with your accountant or tax advisor.Long-term investment assets are defined as assets that have been held for at least 366 days (more than one year) and may be subject to tax treatment as long-term capital gains. Conversely, short-terminvestment assets are those that have been held for one year or less and may be subject to tax treatment as short-term capital gains. Miscellaneous indicates insufficient data to determine holding term.Adjusted Cost: Cost bases on certain fixed income securities have been adjusted for amortization, if purchased at a premium, or accretion, if purchased at a discount.Due to timing issues, adjusted price/cost will be calculated either to the prior month end or the current month end. This difference should be negligible.This report is not complete without the Understanding Your Portfolio report which contains important terms and definitions.08/20/2010 Page 107 of 115
  • 108. This is a Preliminary Report SMEnvision Susan & JimUnrealized Gain and Loss - Security DetailBy: Account Tax Status,Holding Term,Asset ClassDescription Purch Date Orig Price Adj Price Mkt Price Purch Cost Adj Cost Mkt Value($) Gain /Loss Purch($) Adj($)ID QuantityTaxable Accounts 242,000 242,000 250,000 8,000 8,000 Miscellaneous 242,000 242,000 250,000 8,000 8,000 Equity 180,000 180,000 187,500 7,500 7,500REIT Equity 1.00 180,000 180,000 187,500 7,500 7,500- 187,500 Cash 62,000 62,000 62,500 500 500Cash Equivalent 1.00 1.00 1.00 62,000 62,000 62,500 500 500- 62,500Tax Deferred Accounts 1,750,000 Miscellaneous 1,750,000 Equity 1,450,000International Equity 1.00 1,200,000- 1,200,000International Equity 1.00 250,000- 250,000 Other 300,000Other 1.00 300,000- 300,000Tax Advantaged Education 140,000 140,000 250,000 110,000 110,000Accounts Miscellaneous 140,000 140,000 250,000 110,000 110,00008/20/2010 Page 108 of 115
  • 109. This is a Preliminary Report SMEnvision Susan & JimDescription Purch Date Orig Price Adj Price Mkt Price Purch Cost Adj Cost Mkt Value($) Gain /Loss Purch($) Adj($)ID Quantity Fixed Income 140,000 140,000 250,000 110,000 110,000Long Term Taxable Fixed Income 1.00 75,000 75,000 130,000 55,000 55,000- 130,000Long Term Taxable Fixed Income 1.00 65,000 65,000 120,000 55,000 55,000- 120,000Unrealized Gain and Loss Total 382,000 382,000 2,250,000 118,000 118,000Total Portfolio Value as of 08/19/10:__$ 2,250,000This report is not a substitute for your own records and the year-end 1099 form. Cost data and acquisition dates provided by you are not verified by our firm. Our firm does not render legal, accounting ortax advice. Transactions requiring tax considerations should be reviewed carefully with your accountant or tax advisor.Long-term investment assets are defined as assets that have been held for at least 366 days (more than one year) and may be subject to tax treatment as long-term capital gains. Conversely, short-terminvestment assets are those that have been held for one year or less and may be subject to tax treatment as short-term capital gains. Miscellaneous indicates insufficient data to determine holding term.* Indicates that this position is not held at First Clearing Corp. and that this information was provided by you.The Description column contains specific information about fixed income instruments and may include an abbreviated name, coupon rate and maturity date.Adjusted Price is the original purchase price on certain fixed income securities adjusted using amortization calculations for a premium or accretion for a discount.Adjusted Cost: Cost bases on certain fixed income securities have been adjusted for amortization, if purchased at a premium, or accretion, if purchased at a discount.Due to timing issues, adjusted price/cost will be calculated either to the prior month end or the current month end. This difference should be negligible.This report is not complete without the Understanding Your Portfolio report which contains important terms and definitions.08/20/2010 Page 109 of 115
  • 110. This is a Preliminary Report SMEnvision Susan & JimInitial Investment (Gain/Loss)By: Position LevelInitial Investment Gain/Loss does not include costs associated with reinvested shares from dividends and/or capital gainsID Description Quantity Purch Date Mkt Price($) Initial Inv Cost($) Mkt Value($) Initial Inv Gain/Loss($)Jims PSP Deferred (88888888) 1,500,000 International Equity 1,200,000.00 1.00 1,200,000 Other 300,000.00 1.00 300,000Johns 529 Plan (88888888) 75,000 130,000 55,000 Long Term Taxable Fixed I 130,000.00 1.00 75,000 130,000 55,000Joint Account (88888888) 242,000 250,000 8,000 Cash Equivalent 62,500.00 1.00 62,000 62,500 500 REIT Equity 187,500.00 1.00 180,000 187,500 7,500Saras 529 Plan (88888888) 65,000 120,000 55,000 Long Term Taxable Fixed I 120,000.00 1.00 65,000 120,000 55,000Susans IRA (88888888) 250,000 International Equity 250,000.00 1.00 250,000 Initial Investment Total 382,000 2,250,000 1,868,000Total Portfolio Value as of 08/19/10:__$ 2,250,000This report does NOT include all of your cost lot information. This is not an accurate representation of your gains or losses from an IRS perspective and should not be used for tax purposes. The purpose ofthis report is to show how much your initial investments have changed including automatic reinvestments of dividends and capital gains and change in market value.Purchase Date is the date you purchased the security. A (-) in the Purchase Date column indicated that you have multiple purchases of the security on multiple dates.Initial Investment will not include the effects of sales charges and commissions. If you purchased multiple lots of the security, the total of all Initial Investments is shown. All reinvestment costs have beenexcluded.Mkt Price is the previous business days closing price. Mkt Value is the value of the total number of shares currently held (shares purchased plus shares acquired via reinvestment) times the Mkt Price.The Initial Inv Gain/Loss is the Mkt Value of the shares held minus the Initial Purchase Price of the purchases excluding the costs of the reinvestments as well as all fee charges and commissions.This report is not complete without the Understanding Your Portfolio report which contains important terms and definitions.08/20/2010 Page 110 of 115
  • 111. This is a Preliminary Report SMEnvision Susan & JimInitial Investment (Gain/Loss)By: Lot LevelInitial Investment Gain/Loss does not include costs associated with reinvested shares from dividends and/or capital gainsID Description Quantity Purch Date Mkt Price($) Initial Inv Cost($) Mkt Value($) Initial Inv Gain/Loss($)Jims PSP Deferred (88888888) 1,500,000 International Equity 1,200,000.00 1.00 1,200,000 Other 300,000.00 1.00 300,000Johns 529 Plan (88888888) 75,000 130,000 55,000 Long Term Taxable Fixed I 130,000.00 1.00 75,000 130,000 55,000Joint Account (88888888) 242,000 250,000 8,000 Cash Equivalent 62,500.00 1.00 62,000 62,500 500 REIT Equity 187,500.00 1.00 180,000 187,500 7,500Saras 529 Plan (88888888) 65,000 120,000 55,000 Long Term Taxable Fixed I 120,000.00 1.00 65,000 120,000 55,000Susans IRA (88888888) 250,000 International Equity 250,000.00 1.00 250,000 Initial Investment Total 382,000 2,250,000 1,868,000Total Portfolio Value as of 08/19/10:__$ 2,250,000This report does NOT include all of your cost lot information. This is not an accurate representation of your gains or losses from an IRS perspective and should not be used for tax purposes. The purpose ofthis report is to show how much your initial investments have changed including automatic reinvestments of dividends and capital gains and change in market value.Purchase Date is the date you purchased the security. A blank will indicate unknown Purchase Date.Initial Investment will not include the effects of sales charges and commissions. The Initial Investment Cost of reinvested lots will be shown as zero.Mkt Price is the previous business days closing price. Mkt Value is the value of the total number of shares times the Mkt Price.The Initial Inv Gain/Loss is the Mkt Value of the shares held minus the Initial Purchase Price. It does not include the effects of fees charged or commissions.This report is not complete without the Understanding Your Portfolio report which contains important terms and definitions.08/20/2010 Page 111 of 115
  • 112. This is a Preliminary Report SMEnvision Susan & JimUnderstanding Your PortfolioThis report is intended to provide you with a descriptive overview of your current portfolio. The Fixed Income Analysisreport may encompass one account or multiple accounts as specified in the report. The Reportmay include assets that you currently hold away from our firm, which may or may not be identified Municipal bonds. Under present federal income tax law, the interest income received from investingas being held away. Information on outside account assets was provided by you. We make no in tax-exempt municipal bonds is generally free from federal income taxes. While the interestrepresentation with respect to the accuracy of information of outside holdings. Any transactions income may be tax-free, capital gains, if any, will be subject to taxes. Income for some investorsinvolving these assets will not be reflected unless you provide updated information. All security may be subject to the federal Alternative Minimum Tax (AMT).information, including pricing, specific security features and yield calculations should be used only All yields, durations and convexities are calculated at the "Yield Price" listed on the report. The dateas a guide. Security prices contained in this report are obtained from various sources, including of the yield price is stated under the report table. The calculations are updated approximately onceindependent pricing services. Market prices are as of the previous days close, to the extent they per month. Should there be significant changes in interest rates we will update the calculationsare available. First Clearing Corp. does not guarantee that the reported prices reflect current more frequently. By comparing the yield price to the market price you can see how the market hasmarket prices or that the reported price could be realized. Corporate and municipal bonds and changed since the calculations. For example, if the market price is greater than the yield price thenother fixed income securities are priced by a computerized pricing service or, for less actively currently calculated yields would be lower.traded securities, by utilizing a yield-based matrix system to arrive at an estimated market value. Weighted average coupon: At the subtotal and total levels, the weighted average coupon has beenAssumptions have been made to facilitate certain calculations and the depiction of your holdings. calculated based on the market value of the securities within that grouping. The coupon rate is theThese assumptions have been defined whenever possible, but are in no way a guarantee of interest rate stated on a bond, note or other fixed income security, expressed as a percentage ofreturns for these securities. Variables affecting outcomes are unknown and unpredictable. Due to the principal. Variable rate coupon securities will be shown at the current coupon rate if known;occasional technical and timing issues, there is a possibility that our data sources are incomplete. actual coupon rates may vary. There is no assurance that coupons will be paid. Past PerformanceReported prices should not be considered actual bids. For these reports, in certain groupings, is not a guarantee of future results. Range Notes will carry a coupon of 0%.Corporate Bonds includes Certificates of Deposit. For current prices, call your Financial Advisor.Fund categories and performance data is provided by Morningstar, Inc. Redemption date indicated is either maturity date (M), pre-refunded date (R), mandatory put or tender date (T), Dutch auction date or optional tender date (D), display date on perpetual securitiesPortfolio Insight is not a substitute for your official statements, own records or the year-end (sixty years from report date) (P) or the date which would represent the average life of the maturity1099 form. Our firm does not render legal, accounting or tax advice. Transactions requiring tax when measured from the date of this report (A). Because perpetual securities do not have a statedconsiderations should be reviewed carefully with your accountant or tax advisor. The report may maturity date, we assign a date of sixty years from the date of the report to enable us to providealso include information you provided about assets held at other firms. We have relied solely on approximate yields and durations.information from you regarding those assets. Yield to worst is the lowest of all yields to calls or the yield to maturity. Yield to maturity is theSecurity ID will be ticker symbol, CUSIP number, Security Number or, if you have provided us with yield that would be realized on a fixed income security if it were held to the maturity date. Yielda market value of a generic asset classification type, we will assign a dash. at purchase is calculated based on the purchase date and price of each position (if available) and represents the yield to worst at the time of purchase. At the subtotal and total levels, yields areEquity Analysis weighted averages for that grouping. Duration, if available, is option adjusted duration and is usedCopyright 2008, Standard & Poors to provide a measurement of price volatility.The sectors in this report are based on the Global Industry Classification Standard (GICS). These Mortgage-backed securities (MBSs) include asset-backed securities (ABSs), pass-throughsectors may be different than those of other institutions or sources. The sector of each security is securities and collateralized mortgage obligations (CMOs). Because MBSs are backed byas of the date of this report and subject to change at any time and without notice. mortgages (or other loans in the case of ABSs), the principal payments are uncertain and subject to accelerated repayment. For this reason, assumptions must be made about prepayment speeds,GICS was developed by and is the exclusive property and a service mark of Morgan Stanley Capital which result in an estimated repayment schedule. This schedule is used in combination withInternational Inc. (MSCI) and Standard &Poors, a division of The McGraw-Hill Companies, Inc. the current price to calculate an average life and cash flow yield. Actual yields are unlikely to(S&P). Neither MSCI, S&P nor any other party involved in making or compiling the GICS or any exactly match the stated yields because it is not possible to precisely predict MBS cash flowGICS classifications makes any express or implied warranties or representations with respect to streams. Factors that may affect prepayments, including future interest rates and home pricesuch standard or classification (or the results to be obtained by the use thereof), and all such parties appreciation, are unknown at this time. Cash flows from MBSs and ABSs, and the calculationshereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability predicated on them, such as yield, average life and duration, are derived from a prepayment modelor fitness for a particular purpose with respect to any of such standard or classification. Without which projects principal and interest cash flows over the life of the mortgages. This model useslimiting any of the foregoing, in no event shall MSCI, S&P, any of their affiliates or any third party empirically determined data to estimate the rate at which homeowners will refinance or prepay theirinvolved in making or compiling the GICS or any GICS classifications have any liability for any mortgages given varying degrees of financial incentives to do so. The yield, average life and thedirect, indirect, special, punitive, consequential or any other damages (including lost profits) even expected maturity are based on prepayment assumptions that may or may not be met. Changesif notified of the possibility of such damages. S&P provides sector classification for common stocks in prepayments may significantly affect yield, average life and expected maturity. The estimatedonly. For sector-specific unit investment trusts, First Clearing, LLC has determined the sector interest income on prepaying securities (for example, pass through securities and CMOs) is basedassignment. upon the stated coupon applied to the most recently reported remaining balance of the underlying08/20/2010 Page 112 of 115
  • 113. This is a Preliminary Report SMEnvision Susan & Jimsecurity, when available. Notably, estimated income will be reduced as principal balances decline. Bernstein rates stocks based on relative performance for the next 6-12 months versus the S&PWe have not included estimated principal cash flows on the redemption reports. 500.FNMA pass-through securities, FHLMC Participation Certificates and FHLMC Gold Participation 1. Outperform: Stocks should outpace the market index by more than 15% in the year ahead.Certificates are fully guaranteed as to the timely payment of principal and interest by FNMA/FHLMC. These securities are not backed by the full faith and credit of the U.S. Government. GNMA 2. Market Perform: Stock should perform in line with the market index to within +/-15% in theis an agency of the HUD within the U.S. Government and GNMA pass-through securities are year ahead.guaranteed as to the timely payment of principal and interest by GNMA. GNMAs are backed bythe full faith and credit of the U.S. Government. The market value of all these securities prior to 3. Underperform: Stock should trail the performance of the market index by more than 15%redemption is not guaranteed and may fluctuate. in the year ahead.Treasuries are direct U.S. Government securities. Agencies include U.S. Government backed Standard & Poors STARS(Stock Appreciation Ranking System)agencies and U.S. Government sponsored entities. Agency securities that are below AAA creditquality will be displayed based on their credit rating. Bond ratings are provided by Moodys and 5-STARS: STRONG BUY - Total return is expected to outperform the total return of the S&P 500Standard & Poors. Should the ratings services differ, the Composite Rating will identify the bond Index by a wide margin over the coming 12 months, with shares rising in price on an absolutein the lower of the two ratings. basis.Enhancements used for this analysis may include Bond Insurance, Federal Deposit InsuranceCorporation (FDIC) and escrowed collateral on refunded bonds (typically in US Government 4-STARS: BUY - Total return is expected to outperform the total return of the S&P 500 Indexsecurities). FDIC insurance is limited to $100,000 per registration and $250,000 for qualified over the coming 12 months, with shares rising in price on an absolute basis.self directed retirement accounts. The terms of enhancements vary and assumptions cannot bemade as to specific issuers or issues. This report is not meant to indicate that "non-enhanced" 3-STARS: HOLD - Total return is expected to closely approximate that of the total return of the S&P 500 Index over the coming 12 months, with shares generally rising in price on an absolutesecurities are of lesser credit quality than those with secondary credit enhancement. See the FixedIncome Statistics or Fixed Income Credit Detail reports for specific ratings on enhanced securities. basis.Insurance pertains to the timely payment of principal and interest by the issuer of the underlying 2-STARS: SELL - Total return is expected to underperform the total return of the S&P 500 Indexsecurities and not the price of the bond, which will fluctuate prior to maturity. over the coming 12 months, and share price is not anticipated to show a gain.Types of enhancements include but are not limited to:Pre-ref - Indicates that the security has been pre-refunded, is collateralized (typically in US 1-STAR: STRONG SELL - Total return is expected to underperform the total return of the S&PGovernment Securities) and is scheduled to be redeemed at the stated redemption date. 500 Index by a wide margin over the coming 12 months, with shares falling in price on anETM - Indicates that the security has been escrowed to maturity (collateralized, typically in U.S. absolute basis.Government securities).FDIC - Federal Deposit Insurance Corporation Wells Fargo Securities, LLC Rating SystemMBIA - Municipal Bond Insurance Association 1. Outperform: The stock appears attractively valued, and they believe the stocks total returnFGIC - Financial Guaranty Insurance Company will exceed that of the market over the next 12 months. BuyAMBAC - American Municipal Bond Assurance CorporationFSA - Financial Security Assurance, Inc. 2. Market Perform: The stock appears appropriately valued, and they believe the stocks total return will be in line with the market over the next 12 months. HoldStock Ratings Report 3. Underperform: The stock appears overvalued, and they believe the stocks total return willAnalysts stock ratings are defined as follows: be below the market over the next 12 months. SellCredit Suisse Rating System: There is no assurance that all expectations will be achieved. 1. Outperform: The stocks total return is expected to exceed the industry average by at least 10-15% (or more, depending on perceived risk) over the next 12 months. 2. Neutral: The stocks total return is expected to be in line with the industry average (range of plus or minus 10%) over the next 12 months. 3. Underperform: The stocks total return is expected to underperform the industry average by 10-15% or more over the next 12 months.Sanford Bernstein Rating System:08/20/2010 Page 113 of 115
  • 114. This is a Preliminary Report SMEnvision Susan & Jim in history. Issuance of $85.7 billion exceeded the previous high for the monthMarket Commentary of $71.1 billion set last year. The benchmark 10-year Treasury note yield fellA publication of the Wells Fargo Advisors National Sales Dept. 26 basis points in July to 2.91%. The 30-year Treasury bond fell for the first month since March, with its yield rising 10 basis points to 3.99%. On the short- end of the curve, the yield on the 2-year Treasury note hit its lowest level ever,July 2010 Recap 0.5461%, as data showed that the growth in the U.S. economy has cooled. ForBlue chips booked their best monthly gain in a year with the Dow, S&P 500 the month, the yield declined 6 basis points.and Nasdaq up nearly 7% in July. The rally came after the bulls reversed In the opinion of the Advisory Services Group (ASG) at Wells Fargo Advisors,the anti-risk trade that has been lingering around the markets for the past equities are likely to remain volatile over the next few months but move higher incouple of months. Specifically, investors have shifted their focus away from 2011. In order to prepare for that second leg up in the market, investors shouldthe European debt woes and into the U.S. economic recovery. Only 7 of 91 add exposure to cyclically sensitive sectors on pullbacks such as industrialsEuropean banks failed the stress test and 75% of the S&P 500 companies that and materials. In terms of asset classes, ASG believes small- and mid-caphave reported earnings through the end of July have beat analysts estimates. stocks will outperform large-cap stocks longer-term. ASG has a year-end targetMarkets were also encouraged by the International Monetary Funds decision for the S&P 500 index of 1100-1140 and their full-year earnings estimate is $79.to increase its global growth outlook for 2010. These positives helped offsetthe "unusually uncertain" statements from Fed Chairman Bernanke in his semi- In terms of fixed income, ASG believes investors should continue to overweightannual Congressional testimony. investment-grade corporate paper and stay short in duration (generally in the three- to seven-year range). Within the tax-exempt markets, ASG favors single-For the month, the S&P 500 index returned 6.9%, reversing the 5.4% loss A rated or better general-obligation and essential-service revenue bonds. Forin June, with value companies edging out growth. In terms of asset classes, moderate and aggressive investors, ASG recommends they carry a slightthe S&P Small-Cap 600 and Mid-Cap 400 indices performed in line with overweight position in high-yield bonds, with the caveat that investors bethe broader market - both returning over 6.8%. Throughout the month, diversified within the sector and favor higher-rated credits.cyclicals were the biggest beneficiary of the risk-trade while defensives laggedthe market. Specifically, materials and industrials were the top-performers, For international investing, ASG is 200 basis points overweight in emergingreturning 12.23% and 10.30% respectively, while the healthcare and consumer markets and slight underweight developed international markets versus theirstaples sectors underperformed with respective 1.26% and 5.84% advances. tactical asset allocation. They believe the key for country selection is to diversifySimilar to the S&P 500 index, the Dow Jones Industrial Average jumped 7.08% by emphasizing low government debt and strong trade orientation. Based onand the Nasdaq Composite climbed 6.9%. these criteria, ASG finds Brazil, Chile, India, Malaysia and Mexico as attractive in the emerging market space. And while ASG carries a slight-underweightInternational markets improved across the board following the better-than- to international developed markets, they favor Germany, Sweden, Norway,expected European bank stress test results. In Europe, Greeces ATHEX Singapore, Canada and Australia.Composite was the big winner, returning 17.3% as it rebounded from the 7.5%loss in June. Other bourses also saw green screens with Spains IBEX 35 There are no assurances that any target prices will be attained.jumping 13.4%, Britains FTSE 100 gaining 6.9% and Frances CAC bouncing5.82%. While Portugals PSI 20 and Germanys DAX lagged the broader Investing in foreign securities presents certain risks not associated withmarkets, they still managed returns of 4.3% and 3.1%. Over in Asia, markets domestic investments, such as currency fluctuation, political and economicrallied on lesser fears of Chinas hard landing. Specifically, Chinas CSI 300 instability, and different accounting standards. This may result in greater shareindex increased 11.9%, Hong Kongs Hang Seng added 4.5% and Japans price volatility.Nikkei 225 returned 1.6%. Investments that focus on certain geographical regions or economic sectorsOver in bondland, corporate debt issuance dominated the headlines as increase their vulnerability to any single economic, political or regulatorycompanies rushed to take advantage of some of the lowest borrowing costs development. This may result in greater price volatility.08/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 114 of 115
  • 115. This is a Preliminary Report SMEnvision Susan & JimHigh-yield bonds, also known as junk bonds, are subject to greater risk ofloss of principal and interest, including default risk, than higher-rated bonds.Investors should not place undue reliance on yield as a factor to be consideredin selecting a high yield investment.Investing in fixed income securities involves certain risks such as market riskif sold prior to maturity and credit risk. All fixed income investments may beworth less than original cost upon redemption or maturity. Bond prices fluctuateinversely to changes in interest rates. Therefore, a general rise in interest ratescan result in the decline of the value of your investment.Municipal Bonds that are rated A by Moodys possess many favorableinvestment attributes and are to be considered as upper medium gradeobligations. Factors giving security to principal and interest are consideredadequate, but elements may be present that suggest a susceptibility toimpairment some time in the future.The indices are presented to provide you with an understanding of their historiclong-term performance and are not presented to illustrate the performance ofany security. Investors cannot directly purchase any index. The S&P 500 Indexconsists of 500 stocks chosen for market size, liquidity, and industry grouprepresentation. It is a market value weighted index with each stocks weight inthe Index proportionate to its market value.The opinions expressed here reflect the judgment of the author as of the dateof the report and are subject to change without notice. Any market prices areonly indications of market values and are subject to change. The material hasbeen prepared or is distributed solely for information purposes and is not asolicitation or an offer to buy any security or instrument or to participate inany trading strategy. Additional information is available upon request. Pleasecontact your Financial Advisor.Investment and Insurance Products: NOT FDIC Insured NO BankGuarantee MAY Lose ValueWells Fargo Advisors is the trade name used by two separate registered broker-dealers: Wells Fargo Advisors, LLC,and Wells Fargo Advisors Financial Network, LLC, Members SIPC, non-bank affiliates of Wells Fargo & Company. H.D.Vest Investment ServicesSM, Member SIPC is a non-bank subsidiary of Wells Fargo & Company, and an affiliate ofWells Fargo Advisors, LLC and Wells Fargo Advisors Financial Network, LLC 2010 Wells Fargo Advisors, LLC. All rightsreserved. CAR# 0810-046808/20/2010 © 2001-2010 Financeware, Inc. patents pending Page 115 of 115