Blunck FinancialAnchorage, Alaska
(907) 276-1900
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A completely new advice process:
Specifically designed to:»Avoid unnecessary investment risk
While:»Confidently achieving your goals»Without undue sacrifice to your lifestyle
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Wealthcare is an easy process that puts everything together:
“Stress Test” Goals
Acceptable & Ideal Goals
Define Major Life Goals
Prioritize Goals
Recommendation “In Balance”
Comfort & Confidence
Implement Allocation
MonitorProgress
New Goals or Priorities
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This new process has many benefits compared to traditional services:
“Stress Test” Goals
Acceptable & Ideal Goals
Define Major Life Goals
Prioritize Goals
Recommendation “In Balance”
Comfort & Confidence
Implement Allocation
MonitorProgress
New Goals or Priorities
Traditional Financial Services
Wealthcare Benefit
Complicated questionnaires asking for meaningless details
Focus on what is important
Easier
Goals compromised to maximize investment amount
Identify aspirations Achieve goals otherwise ignored
Identify maximum risk tolerance…Position you to experience it!
Evaluate whether risk is necessary
Avoid unnecessary risk
Solutions based on sacrifice (additional savings)
Solutions based on YOUR priorities
Avoid unnecessary lifestyle sacrifice
Monitor performance(what happened?)
Monitor PROGRESS (will I meet my goals?)
Identify problems & opportunities in
advance
Update annually at best
Update on demand More choices and better decisions
Confidence completely unknown
Confidence (comfort) calculated, monitored and kept in “balance”
Comfort that goals can be achieved
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Your Aspirations (Ideal) and Traditional Goals (Acceptable)
Traditional advisory services focus on maximizing the size of your investment portfolio by minimizing your spending , maximizing your savings and positioning you in a portfolio with the highest risk you can tolerate. Achieving goals otherwise ignored and minimizing investment risk is what the Wealthcare process is all about. For most people, some goals are more important than others.
Your primary financial goals as determined in our goal assessment are outlined above.
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“Stress Testing”
Uncertain <75%
A success percentage below 75% means that there is too high of a chance you may not achieve your goals. Adjustments need to be made to your goals, your allocation or your investments
Sacrifice >90%
A success percentage above 90% indicates that you are needlessly sacrificing your financial goals. You could take less investment risk, achieve larger or more goals and still maintain confidence in your financial future.
Confidence & Comfort (in “balance”)
A success percentage between 75% and 90% should give you confidence that your goals will be met. This reading indicates a set of goals that is manageable and avoids unnecessary investment risk. You may find at some future
date minor changes may be suggested, but they are likely to be small, easily manageable and exposed well in advance through ongoing monitoring.
How does “Stress Testing” Work?
Central to the Wealthcare process is the Confidence calculation. This analysis simultaneously evaluates your goals, your investment allocation and your assets to determine how confident you can be that your goals will be met. The Wealthcare process subjects your goals and investment strategy to this sophisticated ‘stress testing’ process which simulates 1000 market environments, both good and bad. Your Confidence or Comfort is the percentage of the 1000 simulations that achieve your goals (success). For example, if you achieved all of your goals or more in 830 of 1000 tests (% successful) your confidence is 83%.
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“Stress Test” Results For Your Goals
The Level of Success for your goals…
Demonstrates how confident you can be considering all of the goals outlined and your investment strategy. The Success % means you achieved all of your goals and more. The < Target % means you achieved all your goals, but fell short of your estate goal. The Failure % means you would have needed to modify your goals at some point during your life.
Remember, below 75% means you may be disappointed and above 90% means you are making needless sacrifices to your lifestyle.
Comfort Zone Too Much Compromise
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Recommendation
Your Recommended Goals are custom designed based on your priorities. This recommendation is designed to avoid undue sacrifices to your financial lifestyle and if possible avoid unnecessary investment risk. With these objectives in mind, our recommended goals and investment strategy falls within balance so that you can be confident that any future modifications to your goals will be moderate and manageable through ongoing monitoring.
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Monitoring Your Progress
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Achieving Your Goals
Monitoring Your Progress…As financial markets, financial goals and priorities change, we monitor your progress on an ongoing basis. The Wealthcare process identifies in advance the future portfolio values needed to maintain balance between confidence and undue sacrifice. This monitoring process enables us to track where your current portfolio falls so we can alert you of potential problems, or help you achieve additional goals you may have. Additionally, this dynamic process recognizes that throughout your life, goals and priorities change. In such cases we will design new recommendations for you.
54 55 56 57 58 59 60 61Age
$2,000,000
$675,000
$100,000
Sacrifice
Projected Comfort
Uncertain
Your Portfolio
Comfort
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Updating Changing Goals
As your goals and priorities change…So will your lifetime plan. Please use this form to update us on any changes you would like to make to your goals or inform us of new goals you may have. Your financial advisor can work with you to redesign your recommended goals for changes you may desire.
Please tell us about any new goals you may have:
______________________________________________________________________________________________________________________________
Please tell us about any changes to your goals you would like us to review by entering them in the amendments below:
Amendments
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Implementing Your Plan
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Asset Allocation
Your Asset Allocation is a critical component of meeting your lifetime goals. Our recommended asset allocation is designed to balance avoiding unnecessary risk while maintaining confidence in achieving your goals.
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Wealthcare Benefits for Albert & Mary Client
Retire TWO YEARS EARLIER
$5,000 MORE in retirement income
$15,000 MORE for travel
$15,000 LESS in annual savings
1/3 LESS risk
Wealthcare Benefit:Life With Wealthcare
Life With Traditional Services
Retirement Age 66 68
Retirement Income $95,000 $90,000
College Funding Yes Yes
Retirement Travel $25,000 $10,000
Savings $30,000 $45,000
Estate Goal $500,000 $500,000
Asset Allocation Balanced Balanced Growth
Average Return 9.94% 11.17
Downside Risk -10.93% -15.06
Confidence & Comfort 86 Unknown Comfort that goals can be met
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Summary- Wealthcare Benefits:
Easier
Achieve goals otherwise ignored
Avoid unnecessary risk
Avoid unnecessary lifestyle sacrifice
Identify problems & opportunities in advance
More choices and better decisions
Comfort that goals can be achieved