joe & jane sample€¦ · net worth summary - all resources 10/24/2017 prepared for : joe and...

1716 Briarcrest Drive; Suite 810Bryan, TX 77802

Branch Address :

Joe & Jane Sample

October 24, 2017

Financial Goal Plan

Prepared by:

Warren ReichelInvestment Executive

Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFGIS Insurance Agency), memberFINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investmentservices are offered. Investments are: *Not FDIC/NCUSIF insured *May lose value *Not financial institution guaranteed *Not a deposit *Not insured by anyfederal government agency.

Table Of Contents

Net Worth Summary - All Resources 1

Net Worth Detail - All Resources 2

Personal Information and Summary of Financial Goals 3

Expectations and Concerns 4

Results

Results - Current and Recommended 5 - 7

Worksheet Detail - Inside the Numbers Final Result 8

Worksheet Detail - Sources of Income and Earnings 9

Worksheet Detail - Retirement Distribution Cash Flow Chart 10 - 18

Portfolio Table 19

Worksheet Detail - Allocation Comparison 20 - 21

Worksheet Detail - Portfolio Changes 22

Worksheet Detail - Social Security Analysis 23 - 24

Life Expectancy Table and Graph 25

A to Z Disclosure 26 - 27

IMPORTANT DISCLOSURE INFORMATION 28 - 32

Net Worth Summary - All Resources

10/24/2017

Prepared for : Joe and Jane Sample Prepared by: Warren Reichel

Page 1 of 32

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

This is your Net Worth Summary as of 10/24/2017. 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 you have entered all of your Assets and Liabilities.

+ $500,000Other Assets

Investment Assets $1,250,000

Total Liabilities $100,000

Net Worth $1,650,000

$1,750,000Total Assets

-

Description Total

Investment Assets

Employer Retirement Plans $1,000,000

Individual Retirement Accounts $50,000

Taxable and/or Tax-Free Accounts $200,000

Total Investment Assets: $1,250,000

Other Assets

Home and Personal Assets $450,000

Cash Value Life $50,000

Total Other Assets: $500,000

Liabilities

Personal Real Estate Loan: $100,000

Total Liabilities: $100,000

Net Worth: $1,650,000

Net Worth Detail - All Resources

10/24/2017


Page 2 of 32


This is your Net Worth Detail as of 10/24/2017. 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 you have entered all of your Assets and Liabilities.

Description TotalJointJaneJoe

Investment Assets

Employer Retirement Plans

401(k) $700,000$700,000

403(b) $300,000$300,000

Individual Retirement Accounts

Roth IRA - Account $50,000$50,000

Taxable and/or Tax-Free Accounts

Joint Account $200,000$200,000

Total Investment Assets: $1,250,000$750,000 $300,000 $200,000

Other Assets

Home and Personal Assets

Home $450,000$450,000

Cash Value Life

Universal Life $50,000$50,000

Total Other Assets: $500,000$50,000 $0 $450,000

Liabilities

Personal Real Estate Loan:

Primary Household $100,000$100,000

Total Liabilities: $100,000$0 $0 $100,000

Net Worth: $1,650,000

Personal Information and Summary of Financial Goals

10/24/2017


Page 3 of 32


Joe and Jane Sample

Needs

Home Improvement10

When both are retiredRecurring every 15 years until end of plan

$50,000Base Inflation Rate (4.16%)

Retirement - Basic Living Expense10

Joe (2020)Jane (2020)Both Retired (2020-2040)Jane Alone Retired (2041-2050)

7065$120,000$100,000Base Inflation Rate (4.16%)

Personal Information

Joe

Male - born 01/01/1950, age 67

Jane

Female - born 01/01/1955, age 62

Married, US Citizens living in TX

Employed - $100,000

Employed - $70,000

• 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

Jackie Sample 01/01/1980 37 Child

Expectations and Concerns

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Owner Concern What Would Help

Medium

Joint Not having a paycheckanymore

Consider strategies that create a regularsource of income.

Joint Running out of money Make sure your plan is In the ConfidenceZone so you can stop worrying.

Joint Cost of Health Care orLong-Term Care

Include a Goal for Health Care and test tosee the impact of a potential Long TermCare expense in the future.

Expectation

Both Joe and Jane

Opportunity to Help Others

Time to Travel

Time with Friends & Family

Less Stress - Peace of Mind

Results

Results - Current and Recommended

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Results Current Scenario Recommended Scenario

Average Return Bad Timing Average Return Bad Timing

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

Likelihood of Funding All Goals

Your Confidence Zone: 75% - 90%

Current Scenario What If Scenario 1 Changes In Value

Retirement

Retirement Age

70 in 202070 in 2020Joe

65 in 202065 in 2020Jane

Planning Age

90 in 204090 in 2040Joe

95 in 205095 in 2050Jane

Goals

Needs

Decreased $1,562$48,438

When both are retired15

End of plan

$50,000When both are retired

15End of plan

Home ImprovementStartingYears between occurrencesEnding

Decreased $1,500Decreased $1,250

$118,500$98,750

$120,000$100,000

Retirement - Basic Living ExpenseBoth RetiredJane Alone Retired


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Decreased 1%$3,621,314$3,670,000Total Spending for Life of Plan

Savings

$12,100$12,100Qualified

Increased $4,250$4,250$0Taxable

Increased $4,250$16,350$12,100Total Savings This Year

Portfolios

21% Less EquitiesModerateCurrentAllocation Before Retirement

55%76%Percent Equities

8.71%9.61%Total Return

-23.31%-29.36%Worst One-Year Return since 1970

10.80%13.73%Standard Deviation

-25%-35%Great Recession Return 11/07 - 2/09

6%9%Bond Bear Market Return 7/79 - 2/80

21% Less EquitiesModerateCurrentAllocation During Retirement

55%76%Percent Equities

8.71%9.61%Total Return

-23.31%-29.36%Worst One-Year Return since 1970

10.80%13.73%Standard Deviation

-25%-35%Great Recession Return 11/07 - 2/09

6%9%Bond Bear Market Return 7/79 - 2/80

4.16%4.16%Inflation

Investments

$1,250,000$1,250,000Total Investment Portfolio


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Social Security

CurrentCurrentSocial Security Strategy

Joe

NormalNormalFiling Method

7070Age to File Application

7070Age Retirement Benefits Begin

$36,224$36,224First Year Benefit

Jane

NormalNormalFiling Method

6565Age to File Application

6565Age Retirement Benefits Begin

$23,216$23,216First Year Benefit

Worksheet Detail - Inside the Numbers Final Result

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Page 8 of 32


• 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, the 99th, 75th, 50th, 25th and 1st percentile trials are shown based onthe End of Plan Value. For each trial displayed, the corresponding portfolio value isillustrated 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.

Trials Year 5 Year 10 Year 15 Year 20 Year 25 End of Plan Year Money Goes to $0

10 $2,348,307 $3,956,597 $7,196,555 $10,277,439 $18,371,131 $57,239,821

250 $2,312,726 $2,386,932 $4,393,796 $5,546,678 $8,232,935 $16,329,904

500 $2,021,602 $2,337,440 $2,819,417 $6,324,808 $5,094,476 $8,468,575

750 $1,547,995 $2,665,186 $2,119,932 $3,698,050 $5,307,224 $3,288,458

990 $1,564,991 $912,970 $669,601 $61,970 $0 $0 2037

Inside the Numbers - Final Result For Current Scenario

Worksheet Detail - Sources of Income and Earnings

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This graph shows the income sources and earnings available in each year from retirement through the End of the Plan.

• 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.

• NUA Strategy Income, Stock Options, Restricted Stock, Other Assets, and proceeds fromInsurance Policies are after-tax future values.

• Sources of Income can include Retirement Income, Strategy Income, Stock Options, RestrictedStock, Other Assets, proceeds from Insurance Policies, and any remaining asset value after 72(t)distributions have been completed.

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

• All Retirement Income, Immediate Annuity Strategy Income, 72(t) Strategy Income, theremaining asset value after 72(t) distributions, Strategy income from Variable Annuities with aguaranteed minimum withdrawal benefit (GMWB), and Investment Earnings are pre-tax, futurevalues.

Notes

Scenario : Current Scenario using Average Returns

Worksheet Detail - Retirement Distribution Cash Flow Chart

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Page 10 of 32


202070 / 65

202171 / 66

202272 / 67

202373 / 68

202474 / 69

202575 / 70

202676 / 71

202777 / 72

YearAge (Joe / Jane)

Retirement and Strategy Income Assign To

Pension Income 24,000Fund All Goals 24,998 26,038 27,122 28,250 29,425 30,649 31,924

Social Security - Joe 40,936Fund All Goals 42,639 44,413 46,260 48,185 50,189 52,277 54,452

Social Security - Jane 26,236Fund All Goals 27,328 28,464 29,648 30,882 32,167 33,505 34,898

Total Retirement and StrategyIncome

91,172 94,965 98,915 103,030 107,316 111,781 116,431 121,274

Investment Earnings 150,129 158,424 167,250 176,643 186,638 196,718 207,341 218,534

Total Income and Earnings 241,301 253,389 266,166 279,673 293,955 308,499 323,772 339,808

Cash Used To Fund GoalsEstimated %Funded

Home Improvement 56,503100% 0 0 0 0 0 0 0

Retirement - Basic Living Expense 135,608100% 141,249 147,125 153,245 159,620 166,260 173,177 180,381

Total Goal Funding (192,111) (141,249) (147,125) (153,245) (159,620) (166,260) (173,177) (180,381)

Total Taxes and Tax Penalty (16,550) (17,318) (18,162) (19,091) (20,118) (27,455) (29,697) (32,114)

Cash Surplus/Deficit (Net Changein Portfolio)

32,640 94,822 100,879 107,336 114,217 114,783 120,898 127,313

Portfolio Value

Future Dollars

Beginning Value 1,675,968 1,708,608 1,803,431 1,904,310 2,011,646 2,125,863 2,240,646 2,361,545

Cash Surplus/Deficit 32,640 94,822 100,879 107,336 114,217 114,783 120,898 127,313

Investment Asset Additions 0 0 0 0 0 0 0 0

Ending Value 1,708,608 1,803,431 1,904,310 2,011,646 2,125,863 2,240,646 2,361,545 2,488,858

Current Dollars

Ending Value 1,451,572 1,470,939 1,491,186 1,512,324 1,534,361 1,552,618 1,571,037 1,589,606


Taxes

Total Taxes 16,550 17,318 18,162 19,091 20,118 27,455 29,697 32,114



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Page 11 of 32


202070 / 65

202171 / 66

202272 / 67

202373 / 68

202474 / 69

202575 / 70

202676 / 71

202777 / 72


Tax Penalty 0 0 0 0 0 0 0 0

Federal Marginal Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%

Estimated Required MinimumDistribution (RMD)

Joe 35,015 38,235 41,745 45,572 49,741 54,283 59,230 64,309

Jane 0 0 0 0 0 23,268 25,408 27,741

Adjusted Portfolio Value 1,675,968 1,708,608 1,803,431 1,904,310 2,011,646 2,125,863 2,240,646 2,361,545

Portfolio Withdrawal Rate 7.01% 3.72% 3.68% 3.64% 3.60% 3.85% 3.86% 3.86%



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202878 / 73

202979 / 74

203080 / 75

203181 / 76

203282 / 77

203383 / 78

203484 / 79

203585 / 80




Social Security - Joe 56,717Fund All Goals 59,076 61,534 64,094 66,760 69,537 72,430 75,443



126,319 131,574 137,048 142,749 148,687 154,873 161,315 168,026




Home Improvement 0100% 0 0 0 0 0 0 104,133





133,858 140,698 147,737 154,956 162,388 169,898 177,574 73,727

Portfolio Value

Future Dollars

Beginning Value 2,488,858 2,622,716 2,763,414 2,911,152 3,066,108 3,228,495 3,398,394 3,575,968



Ending Value 2,622,716 2,763,414 2,911,152 3,066,108 3,228,495 3,398,394 3,575,968 3,649,695

Current Dollars

Ending Value 1,608,199 1,626,797 1,645,323 1,663,692 1,681,840 1,699,641 1,717,023 1,682,434


Taxes

Total Taxes 34,886 37,870 41,178 44,841 48,843 53,322 58,202 61,056



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202878 / 73

202979 / 74

203080 / 75

203181 / 76

203282 / 77

203383 / 78

203484 / 79

203585 / 80


Tax Penalty 0 0 0 0 0 0 0 0



Joe 70,142 76,094 82,515 89,434 96,882 104,889 113,486 121,870

Jane 30,284 33,054 36,073 39,360 42,735 46,611 50,566 54,833





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203686 / 81

203787 / 82

203888 / 83

203989 / 84

204090 / 85

2041- / 86

2042- / 87

2043- / 88




Social Security - Joe 78,582Fund All Goals 81,851 85,256 88,802 92,496 0 0 0



175,016 182,297 189,880 197,779 206,007 152,829 159,187 165,809




Home Improvement 0100% 0 0 0 0 0 0 0





185,334 192,544 199,685 206,704 214,211 215,450 222,630 229,637

Portfolio Value

Future Dollars

Beginning Value 3,649,695 3,835,029 4,027,573 4,227,258 4,433,963 4,648,174 4,863,623 5,086,253



Ending Value 3,835,029 4,027,573 4,227,258 4,433,963 4,648,174 4,863,623 5,086,253 5,315,891

Current Dollars

Ending Value 1,697,263 1,711,288 1,724,398 1,736,480 1,747,668 1,755,641 1,762,677 1,768,682


Taxes

Total Taxes 66,587 72,923 79,838 87,370 94,942 100,133 108,023 116,537



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203686 / 81

203787 / 82

203888 / 83

203989 / 84

204090 / 85

2041- / 86

2042- / 87

2043- / 88


Tax Penalty 0 0 0 0 0 0 0 0



Joe 130,740 140,095 149,931 160,231 169,467 0 0 0

Jane 59,431 64,380 69,702 75,414 80,986 223,889 239,911 256,754





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2044- / 89

2045- / 90

2046- / 91

2047- / 92

2048- / 93

2049- / 94

2050- / 95



Pension Income 63,831Fund All Goals 66,487 69,253 72,134 75,134 78,260 81,516

Social Security - Joe 0Fund All Goals 0 0 0 0 0 0

Social Security - Jane 108,875Fund All Goals 113,404 118,122 123,036 128,154 133,485 139,038


172,707 179,891 187,375 195,169 203,288 211,745 220,554

Investment Earnings 489,973 511,706 534,112 557,186 580,923 605,425 612,274

Total Income and Earnings 662,680 691,597 721,486 752,355 784,212 817,171 832,828


Home Improvement 0100% 0 0 0 0 0 191,912

Retirement - Basic Living Expense 300,557100% 313,060 326,083 339,648 353,777 368,495 383,824

Total Goal Funding (300,557) (313,060) (326,083) (339,648) (353,777) (368,495) (575,736)

Total Taxes and Tax Penalty (125,705) (134,786) (144,401) (154,541) (165,189) (175,151) (180,682)


236,418 243,751 251,003 258,166 265,245 273,525 76,410

Portfolio Value

Future Dollars

Beginning Value 5,315,891 5,552,309 5,796,060 6,047,063 6,305,229 6,570,474 6,843,999

Cash Surplus/Deficit 236,418 243,751 251,003 258,166 265,245 273,525 76,410

Investment Asset Additions 0 0 0 0 0 0 0

Ending Value 5,552,309 5,796,060 6,047,063 6,305,229 6,570,474 6,843,999 6,920,409

Current Dollars

Ending Value 1,773,562 1,777,480 1,780,391 1,782,259 1,783,059 1,783,109 1,731,007

Cash Surplus/Deficit 75,518 74,751 73,901 72,974 71,981 71,263 19,112

Taxes

Total Taxes 125,705 134,786 144,401 154,541 165,189 175,151 180,682



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2044- / 89

2045- / 90

2046- / 91

2047- / 92

2048- / 93

2049- / 94

2050- / 95


Tax Penalty 0 0 0 0 0 0 0

Federal Marginal Tax Rate 28.00% 28.00% 28.00% 33.00% 33.00% 33.00% 33.00%


Joe 0 0 0 0 0 0 0

Jane 274,392 290,209 306,316 322,586 338,854 351,010 362,374

Adjusted Portfolio Value 5,315,891 5,552,309 5,796,060 6,047,063 6,305,229 6,570,474 6,843,999

Portfolio Withdrawal Rate 4.77% 4.83% 4.88% 4.94% 5.01% 5.05% 7.83%



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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.

Portfolio Table

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The Risk-Based Portfolio was selected from this list of Portfolios, based upon the risk assessment. The Target 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. TheAverage Real Return is equal to the Average Total Return minus the inflation rate of 4.16%. Refer to the Worst 1-Year Loss and StandardDeviation columns in the chart below to compare the relative risks of your Current Portfolio to the Target Portfolio.

RiskBased

TargetBand

Name Total Worst 1 YearLoss

Equities RealCurrent

Average Return

StandardDeviation

FixedIncome

Cash Alternative

Conservative 7.58% -5.39%18% 3.42% 5.70%77%3% 2%

Balanced 8.12% -14.44%37% 3.96% 7.88%57%3% 3%

Moderate 8.71% -23.31%55% 4.55% 10.80%37%3% 5%

Growth 9.24% -31.96%73% 5.08% 13.74%17%3% 7%

Current 9.61% -29.36%76% 5.45% 13.73%24%0% 0%

Aggressive 9.66% -39.21%89% 5.50% 16.46%0%3% 8%

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 Current, 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 - Allocation Comparison

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Current Portfolio

These charts compare your Current Portfolio with the Target Portfolio you selected and show the allocation changes for you to consider.

Target PortfolioModerate

Historical Returns (1970 to 2015)

9.61% Total Return 8.71%

4.16% Base Inflation Rate 4.16%

5.45% Real Return 4.55%

-29.36% Worst One-Year Loss (or Lowest Gain) -23.31%

13.73% Standard Deviation 10.80%

Bear Market Returns

-35% Great Recession -25%

9% Bond Bear Market 6%

Asset Class % of Total Target AmountCurrent Amount % of Total

Portfolio Comparison with Allocation Changes

Increase / Decrease

Domestic Large Cap Core 0% $023%$290,000 -$290,000

Domestic Large Cap Growth 12% $150,00015%$190,000 -$40,000

Domestic Large Cap Value 14% $175,00015%$190,000 -$15,000

Domestic Mid Cap Core 0% $08%$95,000 -$95,000

Domestic Mid Cap Growth 2% $25,0008%$95,000 -$70,000

Domestic Mid Cap Value 2% $25,0002%$25,000 $0

Domestic Small Cap Core 3% $37,5000%$0 $37,500

International Equity 17% $212,5004%$50,000 $162,500

Emerging Markets 5% $62,5001%$15,000 $47,500

Specialty - REITs 2% $25,0000%$0 $25,000

Specialty - Natural Resources (Commodities) 3% $37,5000%$0 $37,500

FI - Intermediate Govt/Corp 17% $212,50015%$185,000 $27,500

FI - Short Govt/Corp 17% $212,5007%$85,000 $127,500

FI - High Yield Bonds 3% $37,5002%$30,000 $7,500

Cash 3% $37,5000%$0 $37,500

Scenario: What If Scenario 1

Worksheet Detail - Allocation Comparison

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Asset Class % of Total Target AmountCurrent Amount % of Total

Portfolio Comparison with Allocation Changes

Increase / Decrease

$1,250,000 $1,250,000 $0

Worksheet Detail - Portfolio Changes

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% %$ $

Current Portfolio Target PortfolioAsset Class Group Difference

%$

Cash 3%$37,500 $37,500 3%

Fixed Income 24% 37%$300,000 $462,500 $162,500 13%

Equities 76% 55%$950,000 $687,500 -$262,500 -21%

Alternative 5%$62,500 $62,500 5%

Unclassified $0 0%

Total: $1,250,000 100% $1,250,000 100%


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

7065

6762

7065

6766

7070

7066

First year benefit in current dollars Joe Jane

$36,224$23,216

$31,285$0

$36,224$23,216

$27,443$24,875

$36,224$32,835

$36,224$24,875

Total lifetime benefit in currentdollars

$1,610,505 $1,475,050 $1,610,505 $1,430,551 $1,648,315 $1,620,455

Probability of success 88% 82% 88% 81% 88% 88%

Break Even Point Joe Jane

7873

N/AN/A

7873

8782

8176

7974

Social Security Analysis for Current Scenario

Worksheet Detail - Social Security Analysis

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Social Security Analysis for Current 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% 87 80 89 81 92 85 83 76

40% 89 82 91 84 94 87 85 78

30% 91 84 93 86 96 88 87 80

20% 94 86 96 88 98 90 89 82

10% 97 89 99 91 100 92 92 85

All calculations based on 2012 IAM Basic Tables.

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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 Investment Services, LLC had previously joined with ING InvestmentManagement to provide Classic and Expanded asset allocation portfolio models.These are static models and the allocations do not change. TSIM models are offeredthrough Cetera Investment Services, LLC as a service of Tower Square InvestmentManagement.

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, member 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 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.

Information Provided by You

MoneyGuidePro Assumptions and Limitations

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.

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 average annual historical returns are calculated using the indices contained in thisReport, which serve as proxies for their respective asset classes. The index data are for theperiod 1970 - 2015. The portfolio returns are calculated by weighting individual returnassumptions for each asset class according to your portfolio allocation. The portfolio returnsmay have been modified by including adjustments to the total return and the inflation rate.The portfolio returns assume reinvestment of interest and dividends at net asset valuewithout taxes, and also assume that the portfolio has been rebalanced to reflect the initialrecommendation. No portfolio rebalancing costs, including taxes, if applicable, arededucted from the portfolio value. No portfolio allocation eliminates risk or guaranteesinvestment results.

MoneyGuidePro does not provide recommendations for any products or securities.


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Asset Class Name Historical Return Index

Domestic Large Cap Core S&P 500 Composite Total Return (1970-1978)Russell 1000 (1979-2015)

Domestic Large Cap Growth Russell 1000 Growth Regressed against S&P 500 (1970 -1978)Russell 1000 Growth(1979-2015)

Domestic Large Cap Value Russell 1000 Value Regressed against S&P 500 (1970 -1978)Russell 1000 Value (1979-2015)

Domestic Mid Cap Core S&P 500 Composite Total Return (1970-1979)Russell Midcap (1980-2015)

Domestic Mid Cap Growth S&P 500 Composite Total Return (1970-1979)Russell Midcap (1980-1986)Russell Midcap Growth (1987-2015)

Domestic Mid Cap Value S&P 500 Composite Total Return (1970-1979)Russell Midcap (1980-1986)Russell Midcap Value (1987-2015)

Domestic Small Cap Core DFA Small Cap (1970-1978)Russell 2000 (1979-2015)

Domestic Small Cap Growth DFA Small Cap (1970-1978)Russell 2000 Growth (1979-2015)

Domestic Small Cap Value DFA Small Cap (1970-1978)Russell 2000 Value (1979-2015)

International Equity MSCI EAFE USD (1970 - 2015)

Emerging Markets MSCI EM NR USD Regressed against MSCI Pacific ExJapan GR USD Index (1970 - 1998)MSCI EM USD(1999-2015)

Specialty - REITs FTSE NAREIT REIT - Equity (Price and Income)(1970-2015)

Specialty - Natural Resources(Commodities)

DJ UBS Commodity Regressed against GSCI (1970 -1990)DJ UBS Commodity (1991-2015)

Specialty - TIPS BarCap US Treasury US TIPS Regressed against IA USAggregate Bond Index (1970 - February 1997)BarCap US Treasury US TIPS(March 1997-2015)

FI - Intermediate Govt/Corp BarCap US Agg Bond Regressed against IA USAggregate Bond Index (1970 - 1975)BarCap US Agg Bond (1976-2015)

Asset Class Name Historical Return Index

FI - Intermediate Govt/Corp(Tax-Free)

Ibbotson Long-Term Government Bonds - Total Returnadjusted by Barclays Capital 10-year Munidiscount (1970-1979)Barclays Capital 10-year Muni Bonds (1980-2015)

FI - Short Govt/Corp BarCap US Govt/Credit 1-3 Yr Regressed against IA USAggregate Bond Index (1970 - 1975)BarCap US Govt/Credit 1-3 Yr (1976-2015)

FI - High Yield Bonds BarCap US Corporate High Yield (1970 - 2015)

World Bond BarCap Global Aggregate Regressed against IA USAggregate Bond Index (1970 - January 1990)BarCap Global Aggregate(February 1990-2015)

Cash IA SBBI US 30 Day Tbill (1970 - 2015)

Cash (Tax-Free) U.S. 30-Day Treasury Bill adjusted by Donoghue TFdiscount (1970-1981)Tax-Free Money Market Average (1982-2015)


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Risks Inherent in Investing

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.)

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

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,” “Historical Rolling Periods,” “Bad Timing,” “Class Sensitivity,”and “Monte Carlo Simulations.” When using historical returns, the methodologies availableare Average Returns, Historical Test, Historical Rolling Periods, Bad Timing, and Monte CarloSimulations. When using projected returns, the methodologies available are AverageReturns, Bad Timing, Class Sensitivity, and Monte 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

Results Using Historical Rolling Periods

The Results Using Historical Rolling Periods is a series of Historical Tests, each of which usesthe actual historical returns and inflations rates, in sequence, from a starting year to anending year, and assumes that you would receive those returns and inflation rates, insequence, from this year through the end of your Plan. If the historical sequence is shorterthan your Plan, the average return for the historical period is used for the balance of thePlan.

Indices in Results Using Historical Rolling Periods may be different from indices used in otherMoneyGuidePro calculations. Rolling Period Results are calculated using only three assetclasses -- Cash, Bonds, and Stocks. The indices used as proxies for these asset classes whencalculating Results Using Historical Rolling Periods are:

• Cash - Ibbotson U.S. 30-day Treasury Bills (1926-2015)

• Bonds - Ibbotson Intermediate-Term Government Bonds - Total Return (1926-2015)

• Stocks - Ibbotson Large Company Stocks - Total Return (1926-2015)

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.


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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.

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.

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

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.

MoneyGuidePro Presentation of Results

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

Estimated % of Goal Funded

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.

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.

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.


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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.

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.

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.

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%

Bond Ibbotson Intermediate-TermGovernment Bonds – TotalReturn

15.61% -8.89%

Stock 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%

*Hedge Fund Research Indices Fund of Funds

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

joe & jane sample€¦ · net worth summary - all resources 10/24/2017 prepared for : joe and...

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