Putting My Mother’s Wisdom to Work:                     Planning to Provide for Myself,                     My Family and ...
Session I:     HOW DO I KNOW I’M ON TARGET1|
Panelists     Sharon Uyeda Fong, CFP (Moderator) –     Vice President and Senior Private Banker, The Private Bank     Tere...
Areas We Will Examine Today     • Personal Financial Statement     • Insurance and Asset Protection     • Investment Strat...
The Importance of a Financial Plan     • Helps you achieve your life goals     • Connects all elements of your financial l...
Personal Financial Statement     • What are your assets and liabilities?     • What does your cash flow look like?     • R...
Net Worth Statement     Personal Financial Assets              Mary        John        Total     Union Bank Savings Accoun...
Projected Net Worth Statement                                                            Personal                         ...
Cash Flow Statement                                                     Expenses,                                 Contribu...
Insurance and Asset Protection     How much and what do I need:       • Life Insurance        • Casualty & Liability Insur...
Estate Planning       • Do you have your documents in place?       • Are your assets titled correctly?       • What is the...
Duties of a Trustee                                                                         INVESTMENT                    ...
Retirement Planning and Benefits       • What and where are my retirement assets and         benefits?          •   401(k)...
Real Estate       • How does real estate fit into your long-term financial goals?       • How important is payment flexibi...
30 year fixed vs. 15 year fixed         Sample                                                            30 Year Fixed Ra...
Your Questions?15 |
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How do i know i'm on target?

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  • What areas should you consider?A financial plan is a holistic look at your entire financial picture as well as factoring in your life goals and covers several keys areas which include:Investment Strategy - This allows you to quantify the sufficiency of your capital and answer the question “will we have enough?” accounting for such things as a rising tax environment and rising inflationInsurance and Asset Protection - It’s important to ensure that you have the proper levels and types of insurance for health, life, property, casualty & disability to protect you and your family from unforeseen circumstances.Estate and Gift Planning - Do you have a will? What will happen to your assets after you’re gone? Estate Planning allows you to determine what kind of legacy you want to leave your family and allows you to ensure that your wishes are met.Retirement Planning - Can you retire the way you want? What kind of lifestyle do you expect to keep? Here it is important to explore what the tax and financial implications are for retiring at certain ages. You’ll want to examine qualified holdings like pensions, social security, 401(k)s, and IRAs as well as non-qualified holdings and optimize an appropriate distribution strategyTax Management - Is your portfolio is structured for tax savings. Do you have the ability to defer income? By reducing your tax obligation you are able to keep more of your wealth for yourself and your family.
  • How do i know i'm on target?

    1. 1. Putting My Mother’s Wisdom to Work: Planning to Provide for Myself, My Family and My Community September 29, 2012©2012 Union Bank, NA Member FDIC
    2. 2. Session I: HOW DO I KNOW I’M ON TARGET1|
    3. 3. Panelists Sharon Uyeda Fong, CFP (Moderator) – Vice President and Senior Private Banker, The Private Bank Teresa Tabel, CFP – Vice President and Wealth Strategist, The Private Bank Carlee Harmonson – Senior Vice President and Regional Director – Trust and Estate Services, The Private Bank2|
    4. 4. Areas We Will Examine Today • Personal Financial Statement • Insurance and Asset Protection • Investment Strategy • Estate and Gift Planning • Retirement Planning3|
    5. 5. The Importance of a Financial Plan • Helps you achieve your life goals • Connects all elements of your financial life (Attorneys, CPAs) • Involves gathering information, examining your current status, setting goals and building a strategy for achieving those goals • Helps you gain greater understanding of your options • Need to be an ongoing process – not a one-time document or exercise4|
    6. 6. Personal Financial Statement • What are your assets and liabilities? • What does your cash flow look like? • Reviewing your budget5|
    7. 7. Net Worth Statement Personal Financial Assets Mary John Total Union Bank Savings Account 37,500 37,500 75,000 Union Bank Checking Account 10,000 10,000 20,000 UBIS Investment Account 200,000 200,000 400,000 Investments 247,500 247,500 495,000 Union Bank 401(k) Account 250,000 0 250,000 Johns 401(k) Account 0 350,000 350,000 Qualified plans & traditional IRAs 250,000 350,000 600,000 Retirement Plans 250,000 350,000 600,000 Personal Financial Assets 497,500 597,500 1,095,000 Personal Assets Mary John Total Primary House 375,000 375,000 750,000 Personal residences 375,000 375,000 750,000 Personal Assets 375,000 375,000 750,000 Total Assets 872,500 972,500 1,845,000 Current Liabilities Mary John Total Mortgage 111,113 111,113 222,226 Total Liabilities 111,113 111,113 222,226 Personal Net Worth 761,387 861,387 1,622,7746|
    8. 8. Projected Net Worth Statement Personal Total Year Cash & Investments Retirement Plans Residences Mortgage Net Worth Start 495,000 600,000 750,000 222,226 1,622,774 2011 558,696 682,640 765,000 207,752 1,798,584 2012 622,059 770,238 780,300 192,644 1,979,953 2013 679,194 863,093 795,906 176,875 2,161,317 2014 740,167 961,518 811,824 160,417 2,353,092 2015 805,372 1,065,849 828,061 143,239 2,556,043 2016 874,972 1,176,440 844,622 125,309 2,770,726 2017 949,132 1,293,667 861,514 106,594 2,997,719 2018 1,028,023 1,417,927 878,745 87,061 3,237,633 2019 1,111,833 1,549,642 896,319 66,673 3,491,122 2020 1,200,748 1,689,261 914,246 45,393 3,758,861 2021 1,294,952 1,837,257 932,531 23,182 4,041,557 2022 1,394,647 1,994,132 951,181 0 4,339,960 2023 1,524,240 2,160,420 970,205 0 4,654,865 2024 1,660,291 2,336,685 989,609 0 4,986,585 2025 1,803,035 2,523,526 1,009,401 0 5,335,962 2026 1,704,300 2,674,938 1,029,589 0 5,408,827 2027 1,602,059 2,835,434 1,050,181 0 5,487,674 2028 1,496,356 3,005,560 1,071,185 0 5,573,101 2029 1,387,127 3,185,894 1,092,608 0 5,665,629 2030 1,369,229 3,260,774 1,114,461 0 5,744,463 2031 1,353,777 3,333,372 1,136,750 0 5,823,899 2032 1,341,023 3,403,165 1,159,485 0 5,903,672 2033 1,331,253 3,469,575 1,182,674 0 5,983,502 2034 1,309,721 3,531,969 1,206,328 0 6,048,018 2035 1,285,665 3,589,652 1,230,454 0 6,105,772 2036 1,261,406 3,641,865 1,255,064 0 6,158,3357|
    9. 9. Cash Flow Statement Expenses, Contributions Insurance Cash Flow Pretax to Retirement Premiums & Surplus/ Year Cash Inflow Plans Debt Service Taxes -Deficit 2011 295,900 44,000 124,197 84,007 43,696 2012 304,800 44,000 127,197 91,240 42,363 2013 314,392 44,000 130,287 105,020 35,085 2014 324,193 44,000 133,469 108,903 37,820 2015 334,309 44,000 136,748 112,667 40,895 2016 344,753 44,000 140,124 116,554 44,075 2017 355,535 44,000 143,602 120,575 47,358 2018 366,665 44,000 147,184 124,732 50,749 2019 378,154 44,000 150,874 129,018 54,261 2020 390,013 44,000 154,674 133,451 57,888 2021 402,253 44,000 158,588 138,039 61,626 2022 414,887 44,000 162,620 142,779 65,488 2023 427,927 44,000 142,576 147,675 93,676 2024 441,627 44,000 146,853 152,437 98,337 2025 455,764 44,000 151,259 157,360 103,145 2026 18,980 0 155,797 3,497 -140,314 2027 17,993 0 160,471 3,420 -145,898 2028 16,971 0 165,285 3,229 -151,543 2029 15,914 0 170,243 3,032 -157,362 2030 131,095 0 175,351 24,181 -68,437 2031 137,690 0 180,611 25,597 -68,517 2032 144,698 0 186,029 27,142 -68,474 2033 152,140 0 191,610 28,804 -68,274 2034 160,043 0 197,359 30,583 -67,899 2035 167,528 0 203,279 35,096 -70,847 2036 176,023 0 209,378 37,479 -70,8348|
    10. 10. Insurance and Asset Protection How much and what do I need: • Life Insurance • Casualty & Liability Insurance • Long Term Healthcare9|
    11. 11. Estate Planning • Do you have your documents in place? • Are your assets titled correctly? • What is the role of the trustee?10 |
    12. 12. Duties of a Trustee INVESTMENT DISTRIBUTION STARTING THE BOOKKEEPING RESPONSIBILTIES TAX PAYMENT AND MAINTAINS ADMINISTRATION MANGEMENT UPON TRUST RESPONSIBILITIES TO BENEFICIARIES RECORDKEEPING NEUTRAL POSITION COORDINATION TERMINATION Files annual income Draws up Records all income Makes distributions tax return and Arranges partial or Manages investment strategy Reviews Trust and principal to beneficiary as provides Seeks legal counsel final distribution recordkeeping for according to Agreement distributions and directed by information for when and if needed according to trust all assets objectives of trust receipts agreement beneficiary tax agreement agreement return Completes an Manages Supplies detailed inventory of all trust investments statements on a Compiles a record Divides the assets assets – keeps Reports actions to Marshalls the Takes care of all according to market regular basis of adjusted cost of the trust property track of all cost an independent assets transaction activity circumstances, outlining principal, basis and taxable between basis and auditor safety of principal, income, and income beneficiaries acquisitions for tax and income needs investment activity purposes Meets with Collects all income, beneficiary and/or Arranges for e.g., dividends, grantor to appraisal of trust interest payments. Takes care of Manages Follows terms of Supplies Regularly reviews determine assets and Ensures they are financial obligations investments to trust agreement and accounting performance and investment determines reinvested or for medical needs, allow minimal tax avoids conflict of information and tax objectives objectives an d property insurance distributed as if beneficiary is ill exposure interest data income/principal needs established in needs agreement11 |
    13. 13. Retirement Planning and Benefits • What and where are my retirement assets and benefits? • 401(k) • Pension Plan • Stock Options • Deferred Compensation • IRA’s • Social Security • Benefits • How much will I need at retirement? • Timing • Monthly cash flow12 |
    14. 14. Real Estate • How does real estate fit into your long-term financial goals? • How important is payment flexibility in your mortgage, given your overall financial plan?13 |
    15. 15. 30 year fixed vs. 15 year fixed Sample 30 Year Fixed Rate 15 Year Fixed Rate 15 year fixed rate Loan Amount Loan Amount $1,000,000 $1,000,000 Interest Rate 5.00% 3.875% Payment $5,368.22 $7,334.00 Interest paid life of $932,559 $320,120 loan Pay off loan faster with 15 year loan and save $612,439 in interest14 | Rates utilized are for illustrative purposes only and may not reflect actual rates.
    16. 16. Your Questions?15 |

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