This document provides an overview of a presentation on taking control of one's financial future. The agenda covers planning for the future, protection, wealth accumulation, retirement planning, estate planning, and business planning. It emphasizes starting financial planning early, having protection through insurance and savings, maximizing savings potential over a lifetime, and developing a comprehensive plan to meet financial goals. Regular monitoring and adjustments are important as circumstances change. Working with a financial professional can help navigate complex financial issues.

1. Tari Watkins
858.472.0768
Watkins.Tari@PennMutual.com
Taking Control of Your
Financial Future
The following presentation is for educational purposes only and should not be considered as a specific financial, legal or tax advice. Depending on your individual circumstances,
the strategies discussed in this presentation may not be appropriate for your situation. The information in this material is not intended as tax or legal advice. It may not be used
for the purpose of avoiding any federal tax penalties. Always consult your legal or tax professionals for specific information regarding your individual situation. A5TM-0326-12E2

2. Agenda
Planning for the Future
Protection
Wealth Accumulation
Retirement Planning
Estate Planning
Business Planning

3. Planning for the Future
 Creating a solid plan can help you reach life goals, such as:
 Sending children to college
 Retiring early
 Starting a business
 Buying a vacation home
Source: Wells Fargo, Middle-Class Retirement Survey, 2013
Those with a formal plan tend to save three
times as much as those without a plan
 Starting early with planning and saving is critical to
help you reach your goals.

4. Medical Professionals Face Added Financial Challenges
 In addition to the financial challenges of the average person, those in
the healthcare industry tend to have additional obstacles:
Lengthy education and training time leads to shorter earning years
 Starting out with larger debt and lower salary
 Delaying investing translates into losing some compound interest benefits
Source: Physician Education Debt and the Cost to Attend Medical School, Association of American Medical Colleges, 2014.
Average education debt for recent
medical school graduates is $180,000

5. Value of Working with an Expert
 An experienced financial professional can
provide expertise and guidance to help:
 Identify your current situation
 Determine your financial objectives
 Understand the options available to you
 Develop and implement a plan to meet
your unique needs and goals.

6. Protection
Your income is often your most valuable asset.
Protect yourself and those depending on you.
 Emergency Savings
 Life Insurance
 Disability Insurance
 Long-Term Care Insurance
40% of Americans have no savings.
30% of people have no life insurance.
One in five people become disabled.
Two-thirds of people over age 65
need long-term care services.
Do you have adequate protection?
Sources: Bankrate Financial Security Index, 2014. LIMRA Facts About Life, 2013 U.S. Department of Commerce Economics and Statistics Administration, U.S.
Census Bureau, 2010. U.S. Department of Health & Human Services, National Guideline Clearinghouse Long-Term Care Information, 2012

7. Protection
 Emergency Savings
 Experts suggest having at least six months of living expenses. An emergency fund
helps tackle unexpected financial needs without having to take on additional debt.
 Life Insurance
 Life insurance offers critical death benefit protection to help guarantee a safety net to
protect your family, business, and wealth. Permanent life insurance also builds cash
value that grows on a tax-deferred basis and can help meet a variety of lifetime goals
such as funding a college education, starting a business or as an emergency source of
income.
 Disability Insurance
Your income is one of your most important assets yet many people don’t consider
what could happen if suddenly unable to work and income stopped.
 Long-Term Care Insurance
Offsets the cost of extended health care if you become unable to care for
yourself.
Life insurance policies contain exclusions, limitations, reductions of benefits and terms for keeping them in force. Accessing cash values may result
in surrender fees and charges, may require additional premium payments to maintain coverage, and will reduce the death benefit and policy values.
Loans are income-tax-free as long as policy is not a “modified endowment contract” (MEC) and policy must not be surrendered, lapsed, or otherwise
terminated during the lifetime of the insured. All guarantees are based upon the claim-paying ability of the issuer.

8. Wealth Accumulation
To meet your future goals, start early and save consistently.
 Dr. Smith saved inconsistently when starting his practice.
 Dr. Jones saved the same amount but regular investing helped with greater success.
Assumes a 7% annual rate of return compounded monthly. Dr Smith saved $100 for 7 years then stopped contributions for 7 years followed by 18 years
of $200 monthly contributions. This information is for hypothetical purposes only.

9. Wealth Accumulation
 Helps protect against the unexpected,
while enabling you to meet long-term
goals.
 Manages risk by spreading your assets
across several different types of
accounts.
 True diversification means understanding
the implications of each option in regards
to several factors:
 Taxes
 Flexibility
 Access
Please note: There is no assurance that a diversified portfolio will achieve a better return than a non-diversified portfolio.
Diversification is key

10. Wealth Accumulation
As you put your plan together, it’s important to have:
 An understanding of your risk tolerance
 A long-term wealth accumulation strategy
 A commitment to seeing your strategy through.

11. Retirement Planning
 Relying on Social Security. Social Security benefits provide only 36% of the
total income for Americans age 65 and older
 Decline of Pensions. Pensions make up only 19% of all household retirement
income sources.
 Increasing Healthcare Costs. It’s estimated that the average 65-year old
couple will need $260,000 for healthcare expenses alone during retirement.
 Leaving the Workforce Early. 49% of Americans retired earlier than planned
due to declining health, downsizing, or other reasons.
 Living Longer Lives. If you’re married at age 65, there’s a one-in-three chance
one of you will live to age 95.
Retirement may seem far off, but a plan can help
address the many challenges ahead…
Sources: Social Security Administration, Fast Facts & Figures about Social Security, 2013. Pension Benefit Guaranty Corporation. Employee Benefit
Research Institute, 2010. LIMRA Retirement Study - Consumer Phase, 2012. Annuity 2000 Mortality Table.

12. Retirement Planning
Physicians nearing retirement are on-track
to replace only 56% of their income
Source: Fidelity Investments, Physicians’ Savings Behaviors and Retirement Readiness, 2014
Medical professionals often face a retirement income gap :
 Maximum monthly Social Security benefit replaces a smaller
amount of income for higher earners
 IRS contribution limits on employer sponsored retirement plans
prevents many from saving enough to replace income
 Important to take advantage of other retirement savings vehicles in
order to retire on-time with adequate income.

13. Retirement Planning
How Much Do You Need to Save Monthly in Order to
Retire at Age 65 with $1 Million?
Please note: This information is for hypothetical purpose only.

14. Estate Planning
Helps ensure your assets are used during your life and transferred
after your death as you would like – while minimizing tax impact.
 Who will receive your estate? What is your estate currently worth?
 What are the tax implications for your assets and investments?
 Will you owe federal or state death taxes?
 Where will the money come from to pay taxes and other settlement
costs?
 Will your heirs have to liquidate your estate if cash or other assets
are not enough to pay taxes, etc.?
 Do you know what your business interest is worth – has a recent
valuation been done?
 Do you have a buy-sell agreement for business interests and is it
funded?

15. Estate Planning
Common Estate Planning Tools
Estate planning is important for medical professionals
who often have a lot of business assets.
 Wills
 Trusts
 Charitable Giving
 Life Insurance
 Buy-Sell Agreement
With expertise and guidance, you can address estate taxes and help
maximize the assets going to your beneficiaries.

16. Business Planning
Business owners are often too busy managing day-to-day
activities to adequately plan…
 What would happen to your business
if you suddenly weren’t here?
 What would happen if you became
disabled, or decided to retire?
 Can your practice run smoothly
without you?
 Would your patients stay—or are you
the reason they’re patients in the first
place?

17. Business Planning
 Succession Planning
 Retirement Planning
 Estate Planning
 Key Employee Planning
Physicians spend over 20% of their time on
non-clinical paperwork
Four Critical Planning Areas for Business Owners
Source: “Survey of America’s Physicians: Practice Patterns and Perspectives”, The Physicians Foundations Survey, 2012

18. Start Early to Maximize Savings and Earnings Potential
 Focusing on paying down debt can mean
missing out on years of compound interest
 Smart budgeting can make the most of your
income while paying down debt
Disciplined and consistent savings to start
building wealth can help you reach goals.
The more time you have to prepare, the less you’ll have to worry about later.

19. A Secure Financial Future Doesn’t Just Happen
Prepare for your financial future now.
 Analyze current situation
Identify needs and goals
Develop a sound plan
 Monitor regularly
Adjust as circumstances evolve.
Partner with a financial professional who can help you navigate the
increasingly complex financial environment.

20. Tari Watkins
858.472.0768
Watkins.Tari@PennMutual.com
Thank You for Your Time Today
Take Control of
Your Financial Future
Penn Mutual Life Insurance Company and its wholly owned subsidiaries does not provide tax or legal advice. Always consult a qualified tax advisor regarding your
personal tax situation and a qualified legal professional for your personal estate planning situation.