Sample report with_scenarios_and_survivor_needs[1]

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Sample report with_scenarios_and_survivor_needs[1]

  1. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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

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