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1716 Briarcrest Dr., Suite 810Bryan, TX 77802

Branch Address :

JOE & JANE SAMPLE

October 09, 2019

Sample Financial Plan

Prepared by:

Fundamental Wealth AdvisorsFinancial Advisors

Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency, LLC),member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution whereinvestment services are offered. Investments are: *Not FDIC/NCUSIF insured *May lose value *Not financial institution guaranteed *Not a deposit *Not insuredby any federal government agency.

Table Of Contents

Net Worth Detail - All Resources 1

Net Worth Summary - All Resources 2

Personal Information and Summary of Financial Goals 3

Results - Current and Recommended 4 - 6

Worksheet Detail - Inside the Numbers Final Result 7 - 8

Worksheet Detail - Combined Details 9 - 11

Worksheet Detail - Retirement Distribution Cash Flow Chart 12 - 20

Model Portfolio Table 21 - 22

Worksheet Detail - Social Security Analysis 23 - 24

Life Expectancy Table and Graph 25

Plan Summary

Plan Summary 26 - 27

A to Z Disclosure 28 - 29

IMPORTANT DISCLOSURE INFORMATION 30 - 34

Net Worth Detail - All Resources

10/09/2019

Prepared for : JOE and JANE SAMPLE Prepared by: Fundamental Wealth Advisors

Page 1 of 34

See Important Disclosure Information section in this Report for explanations of assumptions, limitations, methodologies, and a glossary.

This is your Net Worth Detail as of 10/09/2019. Your Net Worth is the difference between what you own (your Assets) and what you owe(your Liabilities). To get an accurate Net Worth statement, make certain all of your Assets and Liabilities are entered.

Description TotalJointJANEJOE

Investment Assets

Employer Retirement Plans

401(k) $200,000$200,000

403(b) $125,000$125,000

Individual Retirement Accounts

Roth IRA $50,000$50,000

Traditional IRA Rollover $100,000$100,000

Taxable and/or Tax-Free Accounts

Joint Account $300,000$300,000

College Saving Plans

529 Savings Plan - James (child) $30,000$30,000

Total Investment Assets: $805,000$330,000 $175,000 $300,000

Other Assets

Home and Personal Assets

Home $300,000$300,000

Total Other Assets: $300,000$0 $0 $300,000

Liabilities

Personal Real Estate Loan:

Home Mortgage $50,000$50,000

Total Liabilities: $50,000$0 $0 $50,000

Net Worth: $1,055,000

Net Worth Summary - All Resources

10/09/2019


Page 2 of 34


This is your Net Worth Summary as of 10/09/2019. Your Net Worth is the difference between what you own (your Assets) and what youowe (your Liabilities). To get an accurate Net Worth statement, make certain all of your Assets and Liabilities are entered.

+ $300,000Other Assets

Investment Assets $805,000

Total Liabilities $50,000

Net Worth $1,055,000

$1,105,000Total Assets

-

Description Total

Investment Assets

Employer Retirement Plans $325,000

Individual Retirement Accounts $150,000

Taxable and/or Tax-Free Accounts $300,000

College Saving Plans $30,000

Total Investment Assets: $805,000

Other Assets

Home and Personal Assets $300,000

Total Other Assets: $300,000

Liabilities

Personal Real Estate Loan: $50,000

Total Liabilities: $50,000

Net Worth: $1,055,000

Personal Information and Summary of Financial Goals

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Page 3 of 34


JOE and JANE SAMPLE

Needs

Retirement - Basic Living Expense10

JOE (2023)JANE (2023)Both Retired (2023-2049)JANE Alone Retired (2050-2051)

6565$71,696$57,357Base Inflation Rate (2.50%)

Health Care10

Both Medicare (2023-2049)JANE Alone Medicare (2050-2051)

$10,744$6,796Base Inflation Rate plus 2.80% (5.30%)

Wants

Travel Budget7

When both are retiredRecurring every year for a total of 15 times

$10,000Base Inflation Rate (2.50%)

Personal Information

JOE

Male - born 04/02/1958, age 61

JANE

Female - born 06/05/1958, age 61

Married, US Citizens living in TX

Employed - $100,000

Employed - $80,000

• This section lists the Personal and Financial Goal information you provided, which willbe used to create your Report. It is important that it is accurate and complete.

Participant Name Date of Birth Age Relationship

James 01/02/1995 24 Child

Results - Current and Recommended

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Page 4 of 34


Results Current Scenario Recommended Scenario

Average Return Bad Timing Average Return Bad Timing

100% 99% 100% 100%Estimated % of Goals Funded

Likelihood of Funding All Goals

Your Confidence Zone: 75% - 90%

Current Scenario Recommended Scenario Changes In Value

Retirement

Retirement Age

1 year later66 in 202465 in 2023JOE

1 year later66 in 202465 in 2023JANE

Planning Age

91 in 204991 in 2049JOE

93 in 205193 in 2051JANE

Goals

Needs

Decreased $1,696$70,000$57,357

$71,696$57,357

Retirement - Basic Living ExpenseBoth RetiredJANE Alone Retired

Increased $91$10,835$6,796

$10,744$6,796

Health CareBoth MedicareJANE Alone Medicare


10/09/2019


Page 5 of 34



Wants

$10,000When both are retired

115

$10,000When both are retired

115

Travel BudgetStartingYears between occurrencesNumber of occurrences

Decreased 5%$2,424,406$2,550,942Total Spending for Life of Plan

Savings

Increased $14,000$41,000$27,000Qualified

Increased $14,000$41,000$27,000Total Savings This Year

Portfolios

21% More EquitiesModerateCURRENTAllocation Before Retirement

56%35%Percent Equities

5.56%4.54%Composite Return

9.71%5.40%Composite Standard Deviation

-25%-13%Great Recession Return 11/07 - 2/09

6%5%Bond Bear Market Return 7/79 - 2/80

21% More EquitiesModerateCURRENTAllocation During Retirement

56%35%Percent Equities

5.56%4.54%Composite Return

9.71%5.40%Composite Standard Deviation

-25%-13%Great Recession Return 11/07 - 2/09

6%5%Bond Bear Market Return 7/79 - 2/80

2.50%2.50%Inflation

Investments

$775,000$775,000Total Investment Portfolio


10/09/2019


Page 6 of 34



Social Security

At RetirementCurrentSocial Security Strategy

JOE

NormalNormalFiling Method

6665Age to File Application

6665Age Retirement Benefits Begin

$29,356$27,227First Year Benefit

JANE

NormalNormalFiling Method

6665Age to File Application

6665Age Retirement Benefits Begin

$26,893$24,951First Year Benefit

Worksheet Detail - Inside the Numbers Final Result

10/09/2019


Page 7 of 34


• The graph below shows the results for all 1000 Monte Carlo Trials.• The Probability of Success meter displays the percentage of trials that were successful in funding all of your goals.• We identify the Confidence Zone as a probability of Success between 75% and 90%.

(75% - 90%)

In the table below, values are shown for the 99th, 75th, 50th, 25th and 1st percentile trialsbased on the End of Plan value. For each trial displayed, the corresponding portfolio valueis illustrated for specific years of the plan. These trials serve as checkpoints to illustrate howthe portfolio might perform over the life of the plan.

Although the graph and table help illustrate a general range of results you may expect,neither of them reflect the Final Result, your Probability of Success.

Trial Number Percentile Year 5 Year 10 Year 15 Year 20 Year 25 End of Plan FutureDollars

End of PlanCurrent Dollars

Year Money Goesto $0

10 99th Percentile $1,226,994 $1,051,201 $1,422,708 $2,501,624 $3,174,680 $4,209,088 $1,909,960

250 75th Percentile $1,044,745 $1,414,964 $1,574,832 $1,889,321 $1,460,282 $1,168,466 $530,216

500 50th Percentile $1,086,156 $980,710 $1,007,661 $940,831 $942,390 $301,647 $136,879

750 25th Percentile $1,102,731 $913,070 $885,640 $758,872 $409,089 $0 $0 2048

990 1st Percentile $781,992 $719,914 $479,557 $77,546 $0 $0 $0 2040

Inside the Numbers - Final Result For Current Scenario

Worksheet Detail - Inside the Numbers Final Result

10/09/2019


Page 8 of 34


• The graph below shows the results for all 1000 Monte Carlo Trials.• The Probability of Success meter displays the percentage of trials that were successful in funding all of your goals.• We identify the Confidence Zone as a probability of Success between 75% and 90%.

(75% - 90%)

In the table below, values are shown for the 99th, 75th, 50th, 25th and 1st percentile trialsbased on the End of Plan value. For each trial displayed, the corresponding portfolio valueis illustrated for specific years of the plan. These trials serve as checkpoints to illustrate howthe portfolio might perform over the life of the plan.

Although the graph and table help illustrate a general range of results you may expect,neither of them reflect the Final Result, your Probability of Success.

Trial Number Percentile Year 5 Year 10 Year 15 Year 20 Year 25 End of Plan FutureDollars

End of PlanCurrent Dollars

Year Money Goesto $0

10 99th Percentile $1,157,538 $1,456,407 $2,670,598 $3,289,782 $4,677,589 $8,558,973 $3,883,810

250 75th Percentile $1,478,204 $1,230,369 $1,073,602 $1,303,427 $1,635,012 $2,633,342 $1,194,933

500 50th Percentile $1,226,661 $1,506,712 $1,408,175 $1,684,011 $1,832,927 $1,442,246 $654,449

750 25th Percentile $1,099,256 $970,167 $1,291,106 $1,269,430 $1,376,670 $470,944 $213,700

990 1st Percentile $1,024,001 $768,412 $469,738 $166,674 $0 $0 $0 2041

Inside the Numbers - Final Result For Recommended Scenario

Worksheet Detail - Combined Details

10/09/2019


Page 9 of 34


Total Portfolio Value Graph

These pages provide a picture of how your Investment Portfolio may hypothetically perform over the life of this Plan. The graph shows theeffect on the value of your Investment Portfolio for each year. The chart shows the detailed activities that increase and decrease yourInvestment Portfolio value each year including the funds needed to pay for each of your Goals. Shortfalls that occur in a particular year aredenoted with an 'X' under the Goal column.

Scenario : Recommended Scenario using Average Return

x - denotes shortfall


10/09/2019


Page 10 of 34


Event or Ages Year

Beginning Portfolio Value

Earmarked Fund All Goals Additions ToAssets

OtherAdditions

PostRetirement

Income

InvestmentEarnings

InvestmentReturn

Taxes

Funds Used

Retirement Health Care Travel Budget Ending PortfolioValue

61/61 2019 0 775,000 41,000 0 0 45,402 5.56% 3,439 0 0 0 857,964

62/62 2020 0 857,964 41,675 0 0 50,056 5.56% 3,590 0 0 0 946,104

63/63 2021 0 946,104 42,367 0 0 54,999 5.56% 3,749 0 0 0 1,039,720

64/64 2022 0 1,039,720 43,076 0 0 60,247 5.56% 3,915 0 0 0 1,139,128

65/65 2023 0 1,139,128 43,803 0 0 65,818 5.56% 4,088 0 0 0 1,244,662

JOE & JANE Retire 2024 0 1,244,662 0 0 73,640 67,331 5.56% 5,453 79,199 14,027 11,314 1,275,640

67/67 2025 0 1,275,640 0 0 75,231 68,963 5.56% 5,412 81,179 14,930 11,597 1,306,716

68/68 2026 0 1,306,716 0 0 76,862 70,596 5.56% 5,358 83,208 15,917 11,887 1,337,805

69/69 2027 0 1,337,805 0 0 78,533 72,223 5.56% 5,289 85,288 16,990 12,184 1,368,809

70/70 2028 0 1,368,809 0 0 80,247 73,595 5.56% 9,765 87,420 18,153 12,489 1,394,824

71/71 2029 0 1,394,824 0 0 82,003 74,916 5.56% 10,080 89,606 19,402 12,801 1,419,854

72/72 2030 0 1,419,854 0 0 83,803 76,175 5.56% 10,407 91,846 20,735 13,121 1,443,722

73/73 2031 0 1,443,722 0 0 85,648 77,364 5.56% 10,746 94,142 22,132 13,449 1,466,265

74/74 2032 0 1,466,265 0 0 87,539 78,472 5.56% 11,097 96,496 23,620 13,785 1,487,279

75/75 2033 0 1,487,279 0 0 89,478 79,488 5.56% 11,461 98,908 25,205 14,130 1,506,540

76/76 2034 0 1,506,540 0 0 91,465 80,400 5.56% 11,838 101,381 26,884 14,483 1,523,819

77/77 2035 0 1,523,819 0 0 93,501 81,195 5.56% 12,197 103,915 28,663 14,845 1,538,895

78/78 2036 0 1,538,895 0 0 95,589 81,861 5.56% 12,598 106,513 30,498 15,216 1,551,519

79/79 2037 0 1,551,519 0 0 97,729 82,384 5.56% 12,977 109,176 32,433 15,597 1,561,450

80/80 2038 0 1,561,450 0 0 99,922 82,750 5.56% 13,363 111,906 34,486 15,987 1,568,381

81/81 2039 0 1,568,381 0 0 102,170 83,851 5.56% 13,843 114,703 36,662 0 1,589,194

82/82 2040 0 1,589,194 0 0 104,474 84,827 5.56% 14,336 117,571 38,963 0 1,607,626

83/83 2041 0 1,607,626 0 0 106,836 85,672 5.56% 14,843 120,510 41,218 0 1,623,563

84/84 2042 0 1,623,563 0 0 109,257 86,369 5.56% 15,361 123,523 43,599 0 1,636,706

85/85 2043 0 1,636,706 0 0 111,738 86,904 5.56% 15,829 126,611 46,141 0 1,646,767

86/86 2044 0 1,646,767 0 0 114,282 87,258 5.56% 16,297 129,776 48,827 0 1,653,407

87/87 2045 0 1,653,407 0 0 116,889 87,411 5.56% 16,763 133,020 51,690 0 1,656,234

88/88 2046 0 1,656,234 0 0 119,561 87,344 5.56% 17,223 136,346 54,684 0 1,654,886

89/89 2047 0 1,654,886 0 0 122,300 87,037 5.56% 17,675 139,755 57,790 0 1,649,004

90/90 2048 0 1,649,004 0 0 125,108 86,462 5.56% 18,021 143,249 61,264 0 1,638,040

JOE's Plan Ends 2049 0 1,638,040 0 0 127,985 85,598 5.56% 18,338 146,830 64,850 0 1,621,606

-/92 2050 0 1,621,606 0 0 73,115 84,570 5.56% 22,272 123,318 33,692 0 1,600,009

JANE's Plan Ends 2051 0 1,600,009 0 0 74,693 83,171 5.56% 22,437 126,401 35,603 0 1,573,432




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Page 11 of 34



Notes

• Calculations are based on a “Rolling Year” rather than a Calendar Year. The current datebegins the 365-day “Rolling Year”.

• Additions and withdrawals occur at the beginning of the year.

• Post Retirement Income includes the following: Social Security, pension, annuity, rentalproperty, royalty, alimony, part-time employment, trust, and any other retirement income asentered in the Plan.

• Other Additions come from items entered in the Other Assets section and any applicableproceeds from insurance policies.

• Stock Options and Restricted Stock values are after-tax.

• Strategy Income is based on the particulars of the Goal Strategies selected. Strategy Incomefrom immediate annuities, 72(t) distributions, and variable annuities with a guaranteed minimumwithdrawal benefit (GMWB) is pre-tax. Strategy Income from Net Unrealized Appreciation (NUA)is after-tax.

• Investment Earnings are calculated on all assets after any withdrawals for 'Goal Expense', 'Taxeson Withdrawals' and 'Tax Penalties' are subtracted.

• When married, if either Social Security Program Estimate or Use a Better Estimate of AnnualBenefits is selected for a participant, the program will default to the greater of the selectedbenefit or the age adjusted spousal benefit, which is based on the other participant's benefit.

• Funds for each Goal Expense are first used from Earmarked Assets. If sufficient funds are notavailable from Earmarked Assets, Fund All Goals Assets will be used to fund the remainingportion of the Goal Expense, if available in that year.

• These calculations do not incorporate penalties associated with use of 529 Plan withdrawals fornon-qualified expenses.

• All funds needed for a Goal must be available in the year the Goal occurs. Funds fromEarmarked Assets that become available after the goal year(s) have passed are not included in thefunding of that Goal, and accumulate until the end of the Plan.

• Tax Penalties can occur when Qualified and Tax-Deferred Assets are used prior to age 59½. Ifthere is a value in this column, it illustrates that you are using your assets in this Plan in a mannerthat may incur tax penalties. Generally, it is better to avoid tax penalties whenever possible.

• When married, ownership of qualified assets is assumed to roll over to the surviving co-client atthe death of the original owner. It is also assumed the surviving co-client inherits all assets of theoriginal owner.

• The taxes column is a sum of (1) taxes on retirement income, (2) taxes on strategy income, (3)taxes on withdrawals from qualified assets for Required Minimum Distributions, (4) taxes onwithdrawals from taxable assets' untaxed gain used to fund Goals in that year, (5) taxes onwithdrawals from tax-deferred or qualified assets used to fund goals in that year, and (6) taxes onthe investment earnings of taxable assets. Tax rates used are detailed in the Tax and InflationOptions page. (Please note, the Taxes column does not include any taxes owed from the exerciseof Stock Options or the vesting of Restricted Stock.)


Worksheet Detail - Retirement Distribution Cash Flow Chart

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202466 / 66

202567 / 67

202668 / 68

202769 / 69

202870 / 70

202971 / 71

203072 / 72

203173 / 73

YearAge (JOE / JANE)

Retirement and Strategy Income Assign To

Pension Income 10,000Fund All Goals 10,000 10,000 10,000 10,000 10,000 10,000 10,000

Social Security - JANE 30,427Fund All Goals 31,187 31,967 32,766 33,585 34,425 35,286 36,168

Social Security - JOE 33,213Fund All Goals 34,044 34,895 35,767 36,661 37,578 38,517 39,480

Total Retirement and StrategyIncome

73,640 75,231 76,862 78,533 80,247 82,003 83,803 85,648

Total Income 73,640 75,231 76,862 78,533 80,247 82,003 83,803 85,648

Cash Used To Fund GoalsEstimated %Funded

Health Care 14,027100.00% 14,930 15,917 16,990 18,153 19,402 20,735 22,132

Retirement - Basic Living Expense 79,199100.00% 81,179 83,208 85,288 87,420 89,606 91,846 94,142

Travel Budget 11,314100.00% 11,597 11,887 12,184 12,489 12,801 13,121 13,449

Total Goal Funding (104,540) (107,706) (111,012) (114,462) (118,062) (121,809) (125,702) (129,723)

Total Taxes and Tax Penalty (5,453) (5,412) (5,358) (5,289) (9,765) (10,080) (10,407) (10,746)

Total Outflows (109,993) (113,118) (116,369) (119,752) (127,827) (131,889) (136,110) (140,469)

Cash Surplus/Deficit (NetIncome)

(36,353) (37,887) (39,507) (41,218) (47,580) (49,886) (52,307) (54,821)

Portfolio Value

Future Dollars

Beginning Value 1,244,662 1,275,640 1,306,716 1,337,805 1,368,809 1,394,824 1,419,854 1,443,722

Strategy Reductions 0 0 0 0 0 0 0 0

Investment Earnings 67,331 68,963 70,596 72,223 73,595 74,916 76,175 77,364

Cash Surplus/Deficit (36,353) (37,887) (39,507) (41,218) (47,580) (49,886) (52,307) (54,821)

Investment Asset Additions 0 0 0 0 0 0 0 0

Ending Value 1,275,640 1,306,716 1,337,805 1,368,809 1,394,824 1,419,854 1,443,722 1,466,265

Current Dollars

Ending Value 1,127,480 1,126,777 1,125,449 1,123,446 1,116,875 1,109,188 1,100,325 1,090,250


Scenario : Recommended Scenario using Average Returns


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202466 / 66

202567 / 67

202668 / 68

202769 / 69

202870 / 70

202971 / 71

203072 / 72

203173 / 73


Taxes

Total Taxes 5,453 5,412 5,358 5,289 9,765 10,080 10,407 10,746

Tax Penalty 0 0 0 0 0 0 0 0

Federal Marginal Tax Rate 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00%

Estimated Required MinimumDistribution (RMD)

JOE 0 0 0 0 23,901 25,135 26,430 27,788

JANE 0 0 0 0 12,662 13,316 14,002 14,722

Adjusted Portfolio Value 1,244,662 1,275,640 1,306,716 1,337,805 1,368,809 1,394,824 1,419,854 1,443,722

Portfolio Withdrawal Rate 2.92% 2.97% 3.02% 3.08% 3.48% 3.58% 3.68% 3.80%



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203274 / 74

203375 / 75

203476 / 76

203577 / 77

203678 / 78

203779 / 79

203880 / 80

203981 / 81







87,539 89,478 91,465 93,501 95,589 97,729 99,922 102,170

Total Income 87,539 89,478 91,465 93,501 95,589 97,729 99,922 102,170


Health Care 23,620100.00% 25,205 26,884 28,663 30,498 32,433 34,486 36,662


Travel Budget 13,785100.00% 14,130 14,483 14,845 15,216 15,597 15,987 0



Total Outflows (144,998) (149,704) (154,586) (159,621) (164,825) (170,182) (175,740) (165,208)


(57,459) (60,227) (63,121) (66,119) (69,236) (72,454) (75,818) (63,038)

Portfolio Value

Future Dollars

Beginning Value 1,466,265 1,487,279 1,506,540 1,523,819 1,538,895 1,551,519 1,561,450 1,568,381





Ending Value 1,487,279 1,506,540 1,523,819 1,538,895 1,551,519 1,561,450 1,568,381 1,589,194

Current Dollars

Ending Value 1,078,902 1,066,220 1,052,145 1,036,638 1,019,651 1,001,148 981,066 969,839




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203274 / 74

203375 / 75

203476 / 76

203577 / 77

203678 / 78

203779 / 79

203880 / 80

203981 / 81


Taxes

Total Taxes 11,097 11,461 11,838 12,197 12,598 12,977 13,363 13,843

Tax Penalty 0 0 0 0 0 0 0 0



JOE 29,211 30,701 32,262 33,736 35,438 37,026 38,668 40,363

JANE 15,475 16,265 17,092 17,873 18,774 19,616 20,486 21,384





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204082 / 82

204183 / 83

204284 / 84

204385 / 85

204486 / 86

204587 / 87

204688 / 88

204789 / 89







104,474 106,836 109,257 111,738 114,282 116,889 119,561 122,300

Total Income 104,474 106,836 109,257 111,738 114,282 116,889 119,561 122,300


Health Care 38,963100.00% 41,218 43,599 46,141 48,827 51,690 54,684 57,790


Travel Budget 0100.00% 0 0 0 0 0 0 0



Total Outflows (170,870) (176,570) (182,483) (188,581) (194,900) (201,473) (208,253) (215,220)


(66,396) (69,734) (73,226) (76,842) (80,618) (84,585) (88,692) (92,920)

Portfolio Value

Future Dollars

Beginning Value 1,589,194 1,607,626 1,623,563 1,636,706 1,646,767 1,653,407 1,656,234 1,654,886





Ending Value 1,607,626 1,623,563 1,636,706 1,646,767 1,653,407 1,656,234 1,654,886 1,649,004

Current Dollars

Ending Value 957,158 943,070 927,517 910,457 891,832 871,568 849,618 825,949




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204082 / 82

204183 / 83

204284 / 84

204385 / 85

204486 / 86

204587 / 87

204688 / 88

204789 / 89


Taxes

Total Taxes 14,336 14,843 15,361 15,829 16,297 16,763 17,223 17,675

Tax Penalty 0 0 0 0 0 0 0 0



JOE 42,111 43,908 45,753 47,320 48,890 50,455 52,004 53,525

JANE 22,310 23,262 24,239 25,069 25,901 26,730 27,551 28,357





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204890 / 90

204991 / 91

2050- / 92

2051- / 93



Pension Income 10,000Fund All Goals 10,000 10,000 10,000

Social Security - JANE 55,034Fund All Goals 56,409 63,115 64,693

Social Security - JOE 60,074Fund All Goals 61,576 0 0


125,108 127,985 73,115 74,693

Total Income 125,108 127,985 73,115 74,693


Health Care 61,264100.00% 64,850 33,692 35,603

Retirement - Basic Living Expense 143,249100.00% 146,830 123,318 126,401

Travel Budget 0100.00% 0 0 0

Total Goal Funding (204,513) (211,680) (157,010) (162,004)

Total Taxes and Tax Penalty (18,021) (18,338) (22,272) (22,437)

Total Outflows (222,534) (230,018) (179,282) (184,441)


(97,426) (102,032) (106,167) (109,748)

Portfolio Value

Future Dollars

Beginning Value 1,649,004 1,638,040 1,621,606 1,600,009

Strategy Reductions 0 0 0 0

Investment Earnings 86,462 85,598 84,570 83,171

Cash Surplus/Deficit (97,426) (102,032) (106,167) (109,748)

Investment Asset Additions 0 0 0 0

Ending Value 1,638,040 1,621,606 1,600,009 1,573,432

Current Dollars

Ending Value 800,447 773,089 744,188 713,977

Cash Surplus/Deficit (47,608) (48,643) (49,380) (49,800)



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204890 / 90

204991 / 91

2050- / 92

2051- / 93


Taxes

Total Taxes 18,021 18,338 22,272 22,437

Tax Penalty 0 0 0 0

Federal Marginal Tax Rate 12.00% 12.00% 22.00% 22.00%


JOE 54,520 55,422 0 0

JANE 28,884 29,362 85,992 86,994

Adjusted Portfolio Value 1,649,004 1,638,040 1,621,606 1,600,009

Portfolio Withdrawal Rate 5.91% 6.23% 6.55% 6.86%



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• When married, if either Social Security Program Estimate or Use This Amount and EvaluateAnnually is selected for a participant, the program will default to the greater of the selectedbenefit or the age adjusted spousal benefit based on the other participant's benefit.

• The Income section includes Retirement Income, Strategy Income, Stock Options, RestrictedStock, Other Assets, proceeds from Insurance Policies, and any remaining asset value after72(t) distributions have been completed.

• Retirement Income includes the following: Social Security, pension, annuity, rental property,royalty, alimony, part-time employment, trust, and any other retirement income as entered in thePlan.

• Additions and withdrawals occur at the beginning of the year.

• Income from Other Assets and proceeds from Insurance Policies are after-tax values. Anyremaining asset value after 72(t) distributions have been completed is a pre-tax value.

Notes

• Investment Earnings are calculated on all assets after any withdrawals for funding goals, taxeson withdrawals, and tax penalties, if applicable, are subtracted.

• Shortfalls that occur in a particular year are denoted with an 'x' in the Cash Used to Fund Goalssection of the chart.

• Strategy Income is based on the particulars of the Goal Strategies selected. Strategy Incomefrom immediate annuities, 72(t) distributions, and variable annuities with a guaranteed minimumwithdrawal benefit (GMWB) is pre-tax. Strategy Income from Net Unrealized Appreciation (NUA)is after-tax.

• Stock Options and Restricted Stock values are after-tax.

• Portfolio Withdrawal Rate (%) is the percentage withdrawn from the investment portfolio tocover cash deficits.

• The Total Taxes are a sum of (1) taxes on retirement income, (2) taxes on strategy income, (3)taxes on withdrawals from qualified assets for Required Minimum Distributions, (4) taxes onwithdrawals from taxable assets' untaxed gain used to fund Goals in that year, (5) taxes onwithdrawals from tax-deferred or qualified assets used to fund goals in that year, and (6) taxes onthe investment earnings of taxable assets. Tax rates used are detailed in the Tax and InflationOptions page. (Please note, the Total Taxes do not include any taxes owed from the exercise ofStock Options or the vesting of Restricted Stock.)

• Tax Penalties can occur when Qualified and Tax-Deferred Assets are used prior to age 59½. Ifthere is a value in this row, it illustrates that you are using your assets in this Plan in a mannerthat may incur tax penalties. Generally, it is better to avoid tax penalties whenever possible.

• The Cash Surplus/Deficit is the net change in the Portfolio Value for the specified year. Thisvalue is your income and earnings minus what was spent to fund goals minus taxes.

• The Ending Value of the Portfolio in Current Dollars is calculated by discounting the EndingValue of the Portfolio in Future Dollars by the Base Inflation Rate for this Plan.

• The Cash Surplus/Deficit in Current Dollars is calculated by discounting the Cash Surplus/Deficitin Future Dollars by the Base Inflation Rate for this Plan.

• These calculations do not incorporate penalties associated with use of 529 Plan withdrawals fornon-qualified expenses.

• When married, ownership of qualified assets is assumed to roll over to the surviving co-client atthe death of the original owner. It is also assumed the surviving co-client inherits all assets of theoriginal owner.

Model Portfolio Table

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The Risk-Based Portfolio was selected from this list of Portfolios, based upon the risk assessment. The Risk Band is comprised of theportfolio(s) that could be appropriate for you, based upon the Risk-Based Portfolio indicated. The Target Portfolio was selected by you.Refer to the Standard Deviation column in the chart below to compare the relative risk of your Current Portfolio to the Target Portfolio.

Portfolios Name CashFixed

IncomeEquities Alternative Fixed Index 3% Fixed

ProjectedReturn

StandardDeviation

Conservative 3% 77% 20% 0% 0% 0% 4.10% 3.97%

Current 39% 26% 35% 0% 0% 0% 4.54% 5.40%

Balanced 3% 57% 38% 2% 0% 0% 4.97% 6.86%

Moderate 3% 37% 56% 4% 0% 0% 5.56% 9.71%

Growth 3% 17% 75% 5% 0% 0% 6.33% 12.90%

Aggressive 3% 0% 90% 7% 0% 0% 6.89% 15.45%

Risk Band Current Risk-Based Target

Return vs. Risk Graph

This graph shows the relationship of return and risk for each Portfolio in the chart above.

When deciding how to invest your money, you must determine the amount of risk you arewilling to assume to pursue a desired return. The Return versus Risk Graph reflects a set ofportfolios that assume a low relative level of risk for each level of return, or conversely anoptimal return for the degree of investment risk taken. The graph also shows the position ofthe Risk Band, Target, Risk-Based, and Custom Portfolios. The positioning of these portfoliosillustrates how their respective risks and returns compare to each other as well as theoptimized level of risk and return represented by the Portfolios.

Model Portfolio Table

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The Risk-Based Portfolio was selected from this list of Portfolios, based upon the risk assessment. The Risk Band is comprised of theportfolio(s) that could be appropriate for you, based upon the Risk-Based Portfolio indicated. The Target Portfolio was selected by you.Refer to the Standard Deviation column in the chart below to compare the relative risk of your Current Portfolio to the Target Portfolio.

Portfolios Name UnclassifiedProjected

ReturnStandardDeviation

Conservative 0% 4.10% 3.97%

Current 0% 4.54% 5.40%

Balanced 0% 4.97% 6.86%

Moderate 0% 5.56% 9.71%

Growth 0% 6.33% 12.90%

Aggressive 0% 6.89% 15.45%

Risk Band Current Risk-Based Target

Return vs. Risk Graph

This graph shows the relationship of return and risk for each Portfolio in the chart above.

When deciding how to invest your money, you must determine the amount of risk you arewilling to assume to pursue a desired return. The Return versus Risk Graph reflects a set ofportfolios that assume a low relative level of risk for each level of return, or conversely anoptimal return for the degree of investment risk taken. The graph also shows the position ofthe Risk Band, Target, Risk-Based, and Custom Portfolios. The positioning of these portfoliosillustrates how their respective risks and returns compare to each other as well as theoptimized level of risk and return represented by the Portfolios.

Worksheet Detail - Social Security Analysis

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As Soon AsPossible

At Retirement At FRA At Age 70

JOE begins atage 70 and

JANE begins atFRA

SelectedStrategy

Social Security Strategy

Start age JOE JANE

6666

6262

6666

6666

7070

7066

First year benefit in current dollars JOE JANE

$29,356$26,893

$0$0

$29,356$26,893

$30,721$28,144

$38,914$35,649

$38,914$28,144

Total lifetime benefit in currentdollars

$1,521,175 $1,140,881 $1,521,175 $1,563,784 $1,718,193 $1,637,514

Probability of success 84% 55% 84% 87% 92% 89%

Break Even Point JOE JANE

6666

N/AN/A

6666

6767

7474

7373

Social Security Analysis for Recommended Scenario

Worksheet Detail - Social Security Analysis

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Social Security Analysis for Recommended Scenario

Notes

Selected Strategy:

You apply for and begin benefits at the later of your current age or age 62. The benefit isautomatically adjusted to account for excess earnings from part-time work, if applicable, andtaking benefits prior to your FRA. If you are age 62 or older, this option is not available.

This strategy is available only if you are married. The higher wage earner applies for and beginsbenefits at age 70. The lower wage earner applies for and begins benefits at his/her FRA. Thehigher/lower wage earners are determined based on the employment incomes you specified.

This is the strategy you selected.

At FRA:

You apply for and begin retirement benefits at your Full Retirement Age (FRA), which isdetermined by your date of birth. If the retirement age you specified is after your FRA, weassume you will begin benefits at FRA, and we will adjust the benefit for inflation until yourretirement age.

At Retirement:

You apply for and begin retirement benefits at the retirement age shown. The benefit isautomatically adjusted to account for excess earnings from part-time work and/or taking benefitsprior to your FRA, if either is applicable.

As soon as possible:

At age 70:

You apply for and begin benefits at age 70.

(Higher Wage Earner) begins at age 70 and (Lower Wage Earner) begins at FRA:

This strategy is available only if you are married and assumes that you filed for and suspendedyour benefits prior to April 30, 2016 and your spouse reached age 62 by January 1, 2016. Thehigher wage earner applies for and suspends taking benefits until age 70. The higher wageearner can file at or after his/her FRA, at which time the spouse (the lower wage earner) files forand takes spousal benefits. The spouse then files for and begins his/her own benefit at age 70, atthe higher benefit amount.

(Higher Wage Earner) files/suspends and (Lower Wage Earner) restricted application:

After April 30, 2016, you (or your spouse) can still file and suspend your benefits upon reachingyour FRA; but this strategy (that allowed your spouse to receive spousal benefits for the sameperiod that the benefits are suspended ) has been discontinued by the Social SecurityAdministration.

The lower wage earner makes a restricted application at his/her FRA. Restricted application allowsthe account holder to apply only for the "spousal benefit" s/he would be due under dualentitlement rules. At any age beyond his/her FRA, the lower wage earner can apply for andreceive benefits based on his/her own work history.

This strategy is available only if you are married and assumes that you filed for and suspendedyour benefits prior to April 30, 2016 and your spouse reached age 62 by January 1, 2016. Thelower wage earner applies for and suspends taking benefits until age 70. The lower wage earnercan file at or after his/her FRA, at which time the spouse (the higher wage earner) files for andtakes spousal benefits. The spouse then files for and begins his/her own benefit at age 70, at thehigher benefit amount.

(Lower Wage Earner) files/suspends and (Higher Wage Earner) restricted application:

The higher wage earner makes a restricted application at his/her FRA. Restricted applicationallows the account holder to apply only for the "spousal benefit" s/he would be due under dualentitlement rules. At any age beyond his/her FRA, the higher wage earner can apply for andreceive benefits based on his/her own work history.

After April 30, 2016, you (or your spouse) can still file and suspend your benefits upon reachingyour FRA; but this strategy (that allowed your spouse to receive spousal benefits for the sameperiod that the benefits are suspended ) has been discontinued by the Social SecurityAdministration.

Maximized Benefits:

This is the strategy that provides the highest estimate of lifetime Social Security income, assumingyou live to the age(s) shown on the Detailed Results page.

Total Lifetime Benefit:

The total estimate of benefits you and your co-client, if applicable, would receive in your lifetime,assuming you live to the age(s) shown on the Detailed Results page. This amount is in current(non-inflated) dollars.

Break Even Point:

The age(s) at which this strategy would provide benefits equivalent to the “As Soon As Possible”strategy. If you live longer than the “break even” age for a strategy, your total lifetime benefitsusing that strategy would be greater than the lifetime benefits of the “As Soon As Possible”strategy. If you are older than age 62 and the “As Soon As Possible” strategy is not shown, thebreak even comparison uses the strategy that begins at the earliest age(s) as the baseline forcomparison.

Life Expectancy Table and Graph

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How long might you live?

Chance you will live to age shown Non-Smoker Smoker Non-Smoker Smoker Non-Smoker Smoker

JOELive to Age

JANELive to Age

EitherLive to Age

Non-Smoker Smoker

BothLive to Age

50% 86 78 89 81 93 84 81 74

40% 89 80 91 84 95 86 84 76

30% 91 82 94 86 97 88 86 78

20% 94 85 96 88 99 90 89 81

10% 98 88 100 91 102 92 92 84

All calculations based on 2012 IAM Basic Tables.

Plan Summary

Plan Summary

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Reaching Your Goals Status

Net Worth

$1,105,000Assets

$50,000Liabilities

$1,055,000Net Worth

Results

If you implement the following suggestions, there is a 84% likelihood of funding all of the Financial Goals in your Plan.

Goals

Plan to reduce your Total Goal Spending to $2,424,406 which is $126,536 or , or 5%, less than your Target.

JOE retires at age 66, in the year 2024. This is 1 year(s) later than your retirement age.

JANE retires at age 66, in the year 2024. This is 1 year(s) later than your retirement age.

Your recommended scenario assumes when you are both retired you will spend $70,000 for annual living expenses.

JOE enrolls in Medicare at age 66, in the year 2024. JANE enrolls in Medicare at age 66, in the year 2024.

When both are retired your recommended scenario assumes you withdraw $10,000 per occurrence for your Travel Budget goal.

Save and Invest Status

Savings

Consider the following changes in order to increase your savings by $14,000 to a total of $41,000 per year.

JOE - Increase qualified additions by $7,000. Make this change in 2019.

JANE - Increase qualified additions by $7,000. Make this change in 2019.

Plan Summary

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Invest

Your Portfolio should be re-allocated Changes Required to match Moderate

Investment Portfolio Asset Allocation

Current Moderate

Asset Class Increase By Decrease By

-$120,000Domestic Large Cap Blend

-$49,250Domestic Large Cap Growth

$116,250Domestic Large Cap Value

$23,250Domestic Mid Cap Blend

$23,250Domestic Small Cap Blend

$139,500International Equity

$31,000Emerging Markets

$15,500Specialty - REITs

$15,500Specialty - Natural Resources(Commodities)

$37,750FI - Intermediate Govt/Corp

$108,500FI - Short Govt/Corp

$15,500FI - High Yield Bonds

-$276,750Cash

-$80,000FI - Intermediate Government

$526,000 -$526,000Total :

Risk Management Status

Long Term Care

There may be a significant risk to your plan if one of you has expenses related to a major health issue. In Texas, the average cost for a 3years of Nursing Home Care is $65,700 annually.

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Your advisory relationship withyour Cetera Investment Advisers LLC (Cetera Investment Advisers) Investment AdvisorRepresentative, for the purpose of this Plan or Report, concludes with your receipt of theplan or report. Please carefully review the attached documentation for accuracy and reportany inconsistencies to your Cetera Investment Advisers Representative. The CeteraInvestment Advisers Representative who prepared your plan is both a RegisteredRepresentative and Investment Advisor Representative with Cetera Investment Services LLC,a full service securities broker/dealer, and Cetera Investment Advisers LLC, a registeredinvestment adviser. As a Registered Representative of Cetera Investment Services LLC (s)he isavailable to assist you in the implementation of the investment recommendations of yourplan or letter and may receive the usual and customary commissions associated withindividual investment products. Commission earned as a Registered Representative are inaddition to any fees earned as an Investment Advisor Representative in preparation of thePlan or Recap letter. More information is contained in the Cetera Investment AdvisersDisclosure Brochure or Form ADV Part 2A and 2B, provided to you by your CeteraInvestment Advisers Investment Advisor Representative.

Your Cetera Investment Advisers LLC Representative -

The target portfolio allocations shown here are for information purposes only and areconsidered accurate representations of each asset class. Allocations to your target portfoliomay vary from the target portfolio allocations shown here and from those of other clientswith similar financial circumstances, objectives and/or risk levels. Any variations from thetarget portfolios are based on your discussions with the Investment Advisor Representative.

Cetera models are offered through Cetera Investment Services, LLC as a service ofCetera Investment Management.

This Financial Plan or Report was prepared to help you worktoward your financial goals. The estimates, projections, and illustrations used in preparingthis plan are based upon mathematical computations and information from sources believedto be reliable.

Accuracy of Information -

Annuities are insurance contracts for the purpose of long term investing.There is a surrender charge generally imposed during the first 5 to 7 years that you own thecontract. Withdrawals made prior to age 59 ½ may result in a 10% penalty, in addition toany ordinary income tax. The guarantee of the annuity is backed by the financial strengthof the underlying insurance company. With variable annuities, the investment sub-accountvalue will fluctuate with changes in market conditions.

Annuities -

Traditional CDs are insured by the FDIC and offer a fixedrate of return, whereas investment securities, such as stocks, bonds, variable annuities andmutual funds will fluctuate with changes in market conditions.

Certificates of Deposit (CDs) -

Although CMOs generally offer lowcredit risk, they are subject to market risk like all investment securities and there should beno implication otherwise. The anticipated yield and average life of a CMO is not assured.The yield and average life will fluctuate depending on the actual prepayment experienceand changes in current interest rates. Upon resale, an investor may receive more or lessthan the original investment.

Collateralized Mortgage Obligations (CMOs) -

Certain mutual funds or variable annuity separate accounts may engage inderivative contracts for the purposes of hedging against loss or enhancing portfolio returns.For information about whether or not a specific fund or separate account uses derivatives,refer to the prospectus.

Derivatives -

A dollar cost averaging/periodicinvestment plan does not assure a profit and does not protect against loss in a decliningmarket. Such a plan involves continuous investment in securities regardless of fluctuatingprice levels of such securities. Investors should consider their financial ability to continuetheir purchases.

Dollar Cost Averaging/Periodic Investment Plans -

In this report, when [Held] appears next to an asset it is an indication that the assetwas purchased through this registered representative or broker-dealer.Held –

If you own any limited partnership units, such units are generallyilliquid, long-term investments. Partnership values may significantly differ from original cost.If any of your limited partnership holdings are shown without a price, accurate valuationinformation may not be available. In that case, please refer to reports received from thegeneral partner with regard to the current operations and status of the investment. If anyof your limited partnerships are valued, such values reflect only the general partner'sevaluation. There is no assurance that this value would be realized upon the sale of theseunits or the conclusion of the program.

Limited Partnerships -

The principal value will fluctuate and the income from suchinvestments consists of both principal and interest. In some cases, you may receive all ofyour principal back if the loan(s) is (are) prepaid sooner than anticipated.

Mortgage Backed Bonds -

Securities do not offer a fixed rate of return or risk. The yield, share price and/or rateof return fluctuate, so when redeemed or sold, you may receive more or less than youoriginally invested.

Risk -

Income may be subject to local, state and/or the alternativeminimum tax.Tax free bonds/Investing -

IMPORTANT DISCLOSURES ABOUT YOUR PLAN OR REPORT

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IMPORTANT DISCLOSURES ABOUT YOUR PLAN OR REPORT

Trusts may be utilized to develop a vehicle for estate planning, donation to afavorite charity, etc. Use of a trust may also provide for a reduction in the tax burden ofassets intended for transfer to estate heirs, etc.

Trusts -

The value of the bond is subject to market fluctuation, and the riskof the issuer not being able to pay back the principal at maturity or interest due. Becausethese bonds do not pay interest until maturity, the prices tend to be more volatile thanbonds that pay interest regularly. The interest income from the bond may be subject totaxes on "Phantom" or imputed interest that accrues annually as ordinary income, eventhough the investors will receive no cash payment.

Zero Coupon Bonds -

Securities offered through Cetera Investment Services LLC (doing insurancebusiness in CA as CFG STC Insurance Agency, LLC), member FINRA/SIPC.

Values shown represent the most recent prices received by your financial consultant for yourvarious position holdings using multiple data sources.

IMPORTANT DISCLOSURE INFORMATION

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The return assumptions in MoneyGuidePro are not reflective of any specific product, and donot include any fees or expenses that may be incurred by investing in specific products. Theactual returns of a specific product may be more or less than the returns used inMoneyGuidePro. It is not possible to directly invest in an index. Financial forecasts, rates ofreturn, risk, inflation, and other assumptions may be used as the basis for illustrations. Theyshould not be considered a guarantee of future performance or a guarantee of achievingoverall financial objectives. Past performance is not a guarantee or a predictor of futureresults of either the indices or any particular investment.

IMPORTANT: The projections or other information generated by MoneyGuidePro regardingthe likelihood of various investment outcomes are hypothetical in nature, do not reflectactual investment results, and are not guarantees of future results.

MoneyGuidePro results may vary with each use and over time.

Cetera Investment Services, LLC is an independent, registered broker dealer,licensed insurance agency, and Cetera Investment Advisers, LLC is the registeredinvestment adviser.

• Not FDIC/NCUSIF insured.

• May go down in value.

• Not Financial Institution guaranteed.

• Not a deposit.

• Not insured by any federal government agency.

• Investments in high yield bonds are high risk investments. High yielding fixed-incomesecurities generally are subject to greater market fluctuations and risk of loss of income andprincipal than are investments in lower yielding fixed-income securities.

• Portfolio returns shown do not reflect the deduction of fees, charges, or other expensesassociated with investing, which if applied would reduce the returns.

Information Provided by You

MoneyGuidePro Assumptions and Limitations

Assumptions and Limitations

MoneyGuidePro offers several methods of calculating results, each of which provides oneoutcome from a wide range of possible outcomes. All results in this Report are hypotheticalin nature, do not reflect actual investment results, and are not guarantees of future results.All results use simplifying assumptions that do not completely or accurately reflect yourspecific circumstances. No Plan or Report has the ability to accurately predict the future. Asinvestment returns, inflation, taxes, and other economic conditions vary from theMoneyGuidePro assumptions, your actual results will vary (perhaps significantly) from thosepresented in this Report.

All MoneyGuidePro calculations use asset class returns, not returns of actual investments.The projected return assumptions used in this Report are estimates based on average annualreturns for each asset class. The portfolio returns are calculated by weighting individualreturn assumptions for each asset class according to your portfolio allocation. The portfolioreturns may have been modified by including adjustments to the total return and theinflation rate. The portfolio returns assume reinvestment of interest and dividends at netasset value without taxes, and also assume that the portfolio has been rebalanced to reflectthe initial recommendation. No portfolio rebalancing costs, including taxes, if applicable,are deducted from the portfolio value. No portfolio allocation eliminates risk or guaranteesinvestment results.

MoneyGuidePro does not provide recommendations for any products or securities.

Information that you provided about your assets, financial goals, and personal situation arekey assumptions for the calculations and projections in this Report. Please review theReport sections titled "Personal Information and Summary of Financial Goals", "CurrentPortfolio Allocation", and "Tax and Inflation Options" to verify the accuracy of theseassumptions. If any of the assumptions are incorrect, you should notify your financialadvisor. Even small changes in assumptions can have a substantial impact on the resultsshown in this Report. The information provided by you should be reviewed periodically andupdated when either the information or your circumstances change.

All asset and net worth information included in this Report was provided by you or yourdesignated agents, and is not a substitute for the information contained in the officialaccount statements provided to you by custodians. The current asset data and valuescontained in those account statements should be used to update the asset informationincluded in this Report, as necessary.


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Asset Class NameProjected Return

AssumptionProjected Standard

Deviation

Domestic Large Cap Blend 7.24% 15.09%

FI - Bank Loans 3.83% 6.92%

Domestic Large Cap Growth 7.28% 16.49%

Domestic Large Cap Value 6.95% 15.08%

Domestic Mid Cap Blend 9.12% 16.97%

Domestic Mid Cap Growth 7.95% 20.00%

Domestic Mid Cap Value 9.34% 16.53%

Domestic Small Cap Blend 7.51% 19.70%

Domestic Small Cap Growth 6.95% 22.10%

Domestic Small Cap Value 7.88% 18.41%

International Equity 6.49% 17.35%

Emerging Markets 9.19% 23.80%

Specialty - REITs 9.01% 21.50%

Specialty - Natural Resources(Commodities)

0.26% 16.38%

Specialty - TIPS 3.47% 6.14%

FI - Intermediate Govt/Corp 3.88% 3.51%

FI - Intermediate Govt/Corp(Tax-Free)

2.10% 3.51%

FI - Short Govt/Corp 2.29% 1.34%

FI - High Yield Bonds 7.02% 9.63%

FI - World Bond 3.18% 5.73%

Cash 2.64% 0.54%

Cash (Tax-Free) 2.20% 0.54%

Domestic Equities 7.16% 15.26%

Europe Stock 6.71% 18.75%

Asia Stock 5.75% 17.36%

Fixed Index 3.68% 0.51%

3% Fixed 3.00% 0.00%

Asset Class NameProjected Return

AssumptionProjected Standard

Deviation

FI - Intermediate Government 3.53% 3.10%

FI - Short Government 3.01% 1.48%

FI - International Treasury 3.07% 8.37%

FI - Investment Grade Corporate 4.78% 5.65%

FI - Muni National Interm 3.94% 4.41%

FI - Emerging Markets Bond 6.54% 9.07%

FI - Convertible Bonds 7.19% 12.47%


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Risks Inherent in Investing

International investing involves additional risks including, but not limited to, changes incurrency exchange rates, differences in accounting and taxation policies, and political oreconomic instabilities that can increase or decrease returns.

Report Is a Snapshot and Does Not Provide Legal, Tax, or Accounting Advice

Investing in fixed income securities involves interest rate risk, credit risk, and inflation risk.Interest rate risk is the possibility that bond prices will decrease because of an interest rateincrease. When interest rates rise, bond prices and the values of fixed income securities fall.When interest rates fall, bond prices and the values of fixed income securities rise. Creditrisk is the risk that a company will not be able to pay its debts, including the interest on itsbonds. Inflation risk is the possibility that the interest paid on an investment in bonds willbe lower than the inflation rate, decreasing purchasing power.

Cash alternatives typically include money market securities and U.S. treasury bills. Investingin such cash alternatives involves inflation risk. In addition, investments in money marketsecurities may involve credit risk and a risk of principal loss. Because money marketsecurities are neither insured nor guaranteed by the Federal Deposit Insurance Corporationor any other government agency, there is no guarantee the value of your investment will bemaintained at $1.00 per share, and your shares, when sold, may be worth more or less thanwhat you originally paid for them. U.S. Treasury bills are subject to market risk if sold priorto maturity. Market risk is the possibility that the value, when sold, might be less than thepurchase price.

Investing in stock securities involves volatility risk, market risk, business risk, and industryrisk. The prices of most stocks fluctuate. Volatility risk is the chance that the value of a stockwill fall. Market risk is chance that the prices of all stocks will fall due to conditions in theeconomic environment. Business risk is the chance that a specific company’s stock will fallbecause of issues affecting it. Industry risk is the chance that a set of factors particular to anindustry group will adversely affect stock prices within the industry. (See “Asset Class –Stocks” in the Glossary section of this Important Disclosure Information for a summary ofthe relative potential volatility of different types of stocks.)

This Report provides a snapshot of your current financial position and can help you to focuson your financial resources and goals, and to create a plan of action. Because the resultsare calculated over many years, small changes can create large differences in future results.You should use this Report to help you focus on the factors that are most important to you.This Report does not provide legal, tax, or accounting advice. Before making decisions withlegal, tax, or accounting ramifications, you should consult appropriate professionals foradvice that is specific to your situation.

MoneyGuidePro Methodology

MoneyGuidePro offers several methods of calculating results, each of which provides oneoutcome from a wide range of possible outcomes. The methods used are: “AverageReturns,” “Historical Test,” “Bad Timing,” “Class Sensitivity,” and “Monte CarloSimulations.” When using historical returns, the methodologies available are AverageReturns, Historical Test, Bad Timing, and Monte Carlo Simulations. When using projectedreturns, the methodologies available are Average Returns, Bad Timing, Class Sensitivity, andMonte Carlo Simulations.

Results Using Average Returns

The Results Using Average Returns are calculated using one average return for yourpre-retirement period and one average return for your post-retirement period. AverageReturns are a simplifying assumption. In the real world, investment returns can (and oftendo) vary widely from year to year and vary widely from a long-term average return.

Results Using Historical Test

The Results Using Historical Test are calculated by using the actual historical returns andinflation rates, in sequence, from a starting year to the present, and assumes that youwould receive those returns and inflation rates, in sequence, from this year through the endof your Plan. If the historical sequence is shorter than your Plan, the average return for thehistorical period is used for the balance of the Plan. The historical returns used are those ofthe broad-based asset class indices listed in this Important Disclosure Information.

Results with Bad Timing

Results with Bad Timing are calculated by using low returns in one or two years, andaverage returns for all remaining years of the Plan. For most Plans, the worst time for lowreturns is when you begin taking substantial withdrawals from your portfolio. The Resultswith Bad Timing assume that you earn a low return in the year(s) you select and then anAdjusted Average Return in all other years. This Adjusted Average Return is calculated sothat the average return of the Results with Bad Timing is equal to the return(s) used incalculating the Results Using Average Returns. This allows you to compare two results withthe same overall average return, where one (the Results with Bad Timing) has low returns inone or two years.


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Results Using Class Sensitivity

The Results Using Class Sensitivity are calculated by using different return assumptions forone or more asset classes during the years you select. These results show how your Planwould be affected if the annual returns for one or more asset classes were different thanthe average returns for a specified period in your Plan.

Results Using Monte Carlo Simulations

MoneyGuidePro Presentation of Results

The Results Using Average Returns, Historical Test, Bad Timing, and Class Sensitivity displaythe results using an “Estimated % of Goal Funded” and a “Safety Margin.”

Monte Carlo simulations are used to show how variations in rates of return each year canaffect your results. A Monte Carlo simulation calculates the results of your Plan by runningit many times, each time using a different sequence of returns. Some sequences of returnswill give you better results, and some will give you worse results. These multiple trialsprovide a range of possible results, some successful (you would have met all your goals) andsome unsuccessful (you would not have met all your goals). The percentage of trials thatwere successful is the probability that your Plan, with all its underlying assumptions, couldbe successful. In MoneyGuidePro, this is the Probability of Success. Analogously, thepercentage of trials that were unsuccessful is the Probability of Failure. The Results UsingMonte Carlo Simulations indicate the likelihood that an event may occur as well as thelikelihood that it may not occur. In analyzing this information, please note that the analysisdoes not take into account actual market conditions, which may severely affect theoutcome of your goals over the long-term.

When using historical returns, the default for one year of low returns is the lowest annualreturn in the historical period you are using, and the default for two years of low returns isthe lowest two-year sequence of returns in the historical period. When using projectedreturns, the default for the first year of low returns is two standard deviations less than theaverage return, and the default for the second year is one standard deviation less than theaverage return.

Estimated % of Goal Funded

Safety Margin

The Safety Margin is the estimated value of your assets at the end of this Plan, based on allthe assumptions included in this Report. Only you can determine if that Safety Margin issufficient for your needs.

For each Goal, the “Estimated % of Goal Funded” is the sum of the assets used to fund theGoal divided by the sum of the Goal’s expenses. All values are in current dollars. A result of100% or more does not guarantee that you will reach a Goal, nor does a result under100% guarantee that you will not. Rather, this information is meant to identify possibleshortfalls in this Plan, and is not a guarantee that a certain percentage of your Goals will befunded. The percentage reflects a projection of the total cost of the Goal that was actuallyfunded based upon all the assumptions that are included in this Plan, and assumes that youexecute all aspects of the Plan as you have indicated.

Bear Market Loss and Bear Market Test

The Bear Market Loss shows how a portfolio would have been impacted during the worstbear market since the Great Depression. Depending on the composition of the portfolio,the worst bear market is either the "Great Recession" or the "Bond Bear Market."

The Great Recession, from November 2007 through February 2009, was the worst bearmarket for stocks since the Great Depression. In MoneyGuidePro, the Great RecessionReturn is the rate of return, during the Great Recession, for a portfolio comprised of cash,bonds, stocks, and alternatives, with an asset mix equivalent to the portfolio referenced.

The Bond Bear Market, from July 1979 through February 1980, was the worst bear marketfor bonds since the Great Depression. In MoneyGuidePro, the Bond Bear Market Return isthe rate of return, for the Bond Bear Market period, for a portfolio comprised of cash,bonds, stocks, and alternatives, with an asset mix equivalent to the portfolio referenced.

The Bear Market Loss shows: 1) either the Great Recession Return or the Bond Bear MarketReturn, whichever is lower, and 2) the potential loss, if you had been invested in thiscash-bond-stock-alternative portfolio during the period with the lower return. In general,most portfolios with a stock allocation of 20% or more have a lower Great RecessionReturn, and most portfolios with a combined cash and bond allocation of 80% or morehave a lower Bond Bear Market Return.

The Bear Market Test, included in the Stress Tests, examines the impact on your Plan resultsif an identical Great Recession or Bond Bear Market, whichever would be worse, occurredthis year. The Bear Market Test shows the likelihood that you could fund your Needs,Wants and Wishes after experiencing such an event.


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Regardless of whether you are using historical or projected returns for all otherMoneyGuidePro results, the Bear Market Loss and Bear Market Test use returns calculatedfrom historical indices. If you are using historical returns, the indices in the Bear Market Lossand the Bear Market Test may be different from indices used in other calculations. Theseresults are calculated using only four asset classes – Cash, Bonds, Stocks, and Alternatives.The indices and the resulting returns for the Great Recession and the Bond Bear Market are:

Because the Bear Market Loss and Bear Market Test use the returns from asset class indicesrather than the returns of actual investments, they do not represent the performance forany specific portfolio, and are not a guarantee of minimum or maximum levels of losses orgains for any portfolio. The actual performance of your portfolio may differ substantiallyfrom those shown in the Great Recession Return, the Bond Bear Market Return, the BearMarket Loss, and the Bear Market Test.

Asset Class Index Great RecessionReturn

11/2007 – 02/2009

Bond Bear MarketReturn

07/1979 – 02/1980

Cash Ibbotson U.S. 30-dayTreasury Bills

2.31% 7.08%

Fixed Income Ibbotson Intermediate-TermGovernment Bonds – TotalReturn

15.61% -8.89%

Equities S&P 500 - Total Return -50.95% 14.61%

Alternative HFRI FOF: Diversified*S&P GSCI Commodity - TotalReturn**

-50.95%N/A

N/A14.61%

Fixed Index N/A 0.00% 0.00%

3% Fixed N/A 0.00% 0.00%

*Hedge Fund Research Indices Fund of Funds

**S&P GSCI was formerly the Goldman Sachs Commodity Index

MoneyGuidePro Risk Assessment

The MoneyGuidePro Risk Assessment highlights some – but not all – of the trade-offs youmight consider when deciding how to invest your money. This approach does not provide acomprehensive, psychometrically-based, or scientifically-validated profile of your risktolerance, loss tolerance, or risk capacity, and is provided for informational purposes only.

Based on your specific circumstances, you must decide the appropriate balance betweenpotential risks and potential returns. MoneyGuidePro does not and cannot adequatelyunderstand or assess the appropriate risk/return balance for you. MoneyGuidePro requiresyou to select a risk score. Once selected, two important pieces of information are availableto help you determine the appropriateness of your score: an appropriate portfolio for yourscore and the impact of a Bear Market Loss (either the Great Recession or the Bond BearMarket, whichever is lower) on this portfolio.

MoneyGuidePro uses your risk score to select a risk-based portfolio on the Portfolio Tablepage. This risk-based portfolio selection is provided for informational purposes only, andyou should consider it to be a starting point for conversations with your advisor. It is yourresponsibility to select the Target Portfolio you want MoneyGuidePro to use. The selectionof your Target Portfolio, and other investment decisions, should be made by you, afterdiscussions with your advisor and, if needed, other financial and/or legal professionals.

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