Dear Client, Portfolio Target has many features including:

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1 Portfolio Target Guide Page 1 Dear Client, This Portfolio Target user guide provides step-by-step instructions, FAQs, and other reference material that may prove useful as you navigate the site. Portfolio Target has many features including: Simple, digital account opening Mobile-ready Real-time proposal generation Adjustable investment profile gives you full control of your risk tolerance Have peace of mind, knowing investment professionals are monitoring current market conditions and adjusting your portfolio to adapt to market cycle changes. For assistance, please contact your financial advisor. 1

2 Portfolio Target Guide - Table of Contents Page 2 I. Using Portfolio Target What is Risk...3 Investment Strategies Overview Getting Started Adjusting Your Portfolio Target Score...6 Documentation.7 II. Opening an Account Account Setup...9 Account Owner Information.10 Navigating the Wizard.11 Investment Instructions..12 Review..13 Preview & Finalize.14 III. Account Wizard Create a Login Security DocuSign.18 IV. Refernce Material FAQs Definitions REVISED 06/2017 2

3 Portfolio Target - What is Risk Page 3 Portfolio Target Score: Your portfolio target score is a numerical value between 0 and 100 that is calculated based on your time horizon, current and future savings, and investment goals. It is used to match your goals and risk profile with available model portfolios that historically have provided the least amount of risk for the return required to meet your goals. What is Risk? When you invest, you make choices about what to do with your financial assets. In finance, risk refers to the uncertainty of returns and/or potential loss inherent in an investment decision. All investments involve some degree of risk. For example, your investment value might rise or fall because of market conditions (market risk).corporate decisions, such as whether to expand into a new area of business or merge with anothercompany, can affect the value of your investments (business risk). Internationalinvestments are impacted by political risk and currency or exchange rate risk. Inflation risk, which reflects reduced purchasing power as prices rise, affects investors receiving a fixed rate of interest. Similarly, interest rate risk is reflected in changing interest rates which affects bond prices. Finally, liquidity risk is the risk that investors may not be able to find a market for their securities when they choose to sell. How does Risk affect your portfolio? In general, as investment risk rises, investors seek higher returns as compensation for incurring additional uncertainty. The level of risk associated with a particular investment or asset class typically correlates with the level of return the investment might achieve. The rationale behind thisrelationship is that investors willing to take on risky investments and potentially lose money shouldbe rewarded for their risk. 3

4 Portfolio Target - Investment Strategies Page 4 Managing Risk A common investment strategy to help manage both systematic risk (risk affecting the market/ economy as a whole) and non-systematic risk (risks that affect a single company or sector of the economy) is diversification. When you diversify your investments, you divide your money across different asset classes, markets, and/or investment types. As a result, you reduce the risk of a major loss that can result from over-emphasizing a poor-performing single investment or asset class. In short, you don t put all your investment eggs in one basket. Portfolio Target models the following five investment objectives. Your investment advisor will assist you in defining which one is appropriate for you given your investor profile. 1. Capital Preservation Designed for the conservative investor, one with a low risk tolerance and/or a short time horizon. It is targeted toward the investor seeking investment stability and liquidity from his/her investable assets. While the objective is to preserve the investor's capital and generate income, fluctuations in value may occur. 2. Balanced Income Intended for the investor who seeks both modest capital appreciation and income from his/her portfolio. This investor will have either a moderate time horizon or a slightly higher risk tolerance than the Capital Preservation investor. 3. Balanced Designed for the investor who seeks relatively stable growth from his/her investable assets combined with a moderate level of income. In addition, a Balanced portfolio seeks to provide steady growth while limiting fluctuations to less than those of the overall stock market. A Balanced investor will have a higher tolerance for risk and/or a longer time horizon than the Balanced Income investor. 4. Balanced Growth For the investor who seeks growth from his/her investable assets and a low level of income. A Balanced Growth investor will have a higher tolerance for risk and/or a longer time horizon than any of the previous investors. 5. Growth Designed for investors with a high tolerance for risk and a long investment time horizon. This investor has little need for current income and seeks above-average growth from his/her investable assets. The Growth investor seeks capital appreciation, and these investors should be able to tolerate large fluctuations in their portfolio values. 4

5 Portfolio Target Guide- Get Started Page 5 To Get Started: 1. Type the Portfolio Target address in the address bar of your internet browser: 2. Click Get Started You will be routed to the Portfolio Target Questionnaire: 1. Set Your Goals: Choose your investment goal with Retirement, Wealth Accumulation or Current Income. 2. Answer questions related to your investment goals and life cycle. 3. Hit Continue. 4. You will be presented with a Portfolio Target score, a suggestion of which portfolio best fits your goals, and a probability of you reaching your goal. 5. From here, you can choose to accept your score, or adjust your score. 5

6 Portfolio Target Guide - Target Analysis Page 6 Adjusting Your Portfolio Target Score Portfolio Target enables you to customize the variables used to calculate your score. If you aren't satisfied with the first proposal, you can adjust it to meet your needs using the Portfolio Calculator. Each of the variables above are adjustable. To change your target score without manipulating variables, check the Adjust Target score > Adjusting your Portfolio Target changes the risk/ return associated with your portfolio. Contact your financial advisors to learn more about how risk can affect your portfolio. Once you finalize your variables and score, click ACCEPT. 6

7 Portfolio Target Guide Documentation Page 7 Documentation 1. To access, enter your 6-digit code, provided by your financial advisor. You cannot access the proposal or account opening without this code. Contact your financial advisor if you do not have a code. 2. Enter your Contact Information. 3. Click Submit. 7

8 Portfolio Target Guide Documentation Page 8 Documentation (cont) 1. Detailed Allocation will show your Portfolio Target by asset class, weight and value. Broad Allocation will show asset class by mandate. 2. Choose to view your proposal or open an account. - Your proposal will generate and can download instantly. - The account opening option will redirect you to the FTJ FundChoice New Account Wizard, allowing you to open an account electronically. 8

9 Portfolio Target Guide Wizard Account Setup Page 9 Open a New Account Account Setup 1. To get started, select the type of account you wish to open. In this example, we will use a Traditional IRA. Additional questions will appear based on the type of account you select. 2. Check the box if you would like to receive paper statements and correspondence. If you do not check the box, all correspondence will be sent electronically. 3. Submit you advisors Click Begin to continue. 5. If at any time you wish to exit and save your application and finish at a later time, select the Exit & Complete Later button. 9

10 Portfolio Target Guide Wizard Account Owner Info Page 10 Open a New Account Account Owner Info 1. The Contact Info section collects basic account holder information. Fields that are required will appear in red. You will not be able to submit the application without the required information. 2. Click Next to continue. 3. Based on your selections in the Account Setup section, you may need to complete the Additional Info section. 10

11 Portfolio Target Guide Wizard Navigation Page 11 Open a New Account Navigation Navigate easily through Opening an Account and track progress with the interactive menu. 1. The sections listed above the blue line are areas of information needed to open an account including account owner information, investment instructions, fees, final review and a preview and finalize option. 2. Scroll through the menu sections using the left and right arrows to see what you ve completed, started, and what's ahead. A green check mark will appear next to what is completed. 3. The Sub-Menu shows specific information needed within each section. The Review page will help you track what is in process, not started, and completed. 4. Investment Instructions will be already set for you, per your Portfolio Target proposal. If you wish to review, simply click on the investment instructions option. 11

12 Portfolio Target Guide Wizard Investment Instructions Page 12 Open a New Account Investment Instructions 1. Since your investment directions were set with your Advisor using Portfolio Target proposal, you automatically by-pass the investment instruction sections. 2. You will not be able to alter the allocations. If you have any questions regarding your investment strategy, please contact your financial advisor. 12

13 Portfolio Target Guide Wizard Review Page 13 Open a New Account Review After completing all the required sections and sub sections, you will be taken to a review page where you can visually see any sections still requiring information. Here you can see what is complete, in process, or not started. Click on the icon to go back to finish anything that is not yet completed. If a section is missing required information you will receive an error as well as a red X next to the section requiring further input. You will not be able to finalize the application if any required minimum fields are still missing. NOTE: You may be able to finalize setup in the Account Wizard with the omission of certain required minimum fields, however those items will be required in DocuSign. 13

14 Portfolio Target Guide Wizard Preview & Finalize Page 14 Open a New Account Preview & Finalize When your review is complete you will be taken to a Preview & Finalize screen. Here you can view the forms online to see how they will print, as well as check for any problems you may find with the paperwork. Select the file and click Preview PDF. Once you are finished with the application, click Finalize & Create Account. 14

15 Portfolio Target Guide Wizard Preview & Finalize Page 15 Open a New Account Create a Login After you click Finalize & Create an Account, you will be prompted to create a login. Choose a username and set a password, according to the password policy listed on the right. 15

16 Portfolio Target Guide Wizard Preview & Finalize Page 16 Open a New Account Security After you click Finalize & Create an Account, you will be prompted to create a login. Choose a username and set a password, according to the password policy listed on the right. 16

17 Portfolio Target Guide Wizard Preview & Finalize Page 17 Open a New Account Security After you create a login, you will be redirected back to the Preview page. Click Finalize and Create Account again. You will then be asked to sign via DocuSign technology. 17

18 Portfolio Target Guide Wizard Preview & Finalize Page 18 Open a New Account DocuSign The signing order varies among advisors. You will be prompted to sign. If the advisor is prompted to sign first, you will receive an after the advisor has signed. Click Review Documents. DocuSign will direct you to each place you need to sign your application. 18

19 Portfolio Target Guide Wizard Preview & Finalize Page 19 Open a New Account DocuSign Once both parties have signed the application will be sent to TD Ameritrade and FTJ FundChoice and the account opening process will begin. You will receive a welcome letter via with instructions on how to access your account, like the below sample. You will be asked to sign and return a Signature Verification Form, which is needed for future account requests. INSERT NAME AND PHONE NUMBER. 19

20 Portfolio Target FAQ s Page 20 FAQ s: 1. What is Portfolio Target? Portfolio Target is a digital account opening interface that provides an adjustable investment profile, giving you full control of your goals, investment timeline, and risk preferences. Portfolio Target is designed and administered by FTJ FundChoice, LLC. Assets are custodied with TD Ameritrade Institutional, member FINRA/SIPC. 2. What security measures are in place to protect personal information entered when opening an account through Portfolio Target? We have incorporated bank-level security measures, including the strongest available browser encryption, secure servers, and identity verification services, among other precautions. For more details, please review the Privacy Policy on our site. 3. How is an account with Portfolio Target different from a traditional online brokerage account? Portfolio Target offers unique features, including: - Your financial goals are match to an advisors directed investment allocation - Ongoing financial advisor oversight of the portfolios - A straightforward pricing model without transaction charges or hidden fees - No minimum balance - Automatic reinvestment of your dividends 4. Is there a minimum deposit or balance? There is no minimum investment through Portfolio Target, and no minimum balance requirement. Please contact your financial advisor for more information on his or her account minimum requirements. 5. What are my funding options? Your account can be funded via check, wire, ACH, transfer from another institution, or rollover from an employer sponsored plan 6. Can I transfer my shares in-kind from an outside brokerage to Portfolio Target? Yes, select fund my account by transfer in the account establishment process to initiate a transfer into your new account. Please note, some delivering institutions require physical signatures, you will be contacted if a signature is required to complete your transfer. 20

21 Portfolio Target FAQ s Page 21 FAQ s: 7. How long does it take to fund my account? ACH Typically within 3 business days Fed Funds (Wire) Usually within 2 business days Transfer Generally take 7-10 business days Rollover Since rollers are initiated through the plan provider they can have different requirements. Please contact your plan provider to determine eligibility and requirements. 8. When will I receive an account number? You will be issued an account number at the completion of your online account opening process in Portfolio Target, 9. Where do I login to view my account information? Once you have an established and funded account, you can login to access your account information here at www. PortfolioLogin.com 10. How frequently will I receive account statements? You will receive two statements. The custodian of your assets (TDA Ameritrade) generates statements detailing your activity and holdings monthly. A quarterly performance statement that includes activity and holdings as well as detailed performance calculations will also be provided. 11. How do I request a distribution? Distributions can be requested through your financial advisor, and can be delivered to you via check, ACH, or Wire. Please note, if you do not authorize your advisor to move money on your behalf, a signature will be required to process distribution requests. Distribution requests are typically processed within 2 business days. 12. Who do I contact with questions? While Portfolio Target is your digital access to your advisor s recommendations and account management, please contact your financial advisor to answer any specific questions about your financial plan. 21

22 Portfolio Target Definitions Page 22 Definitions: 1. Small Capitalization - A term used to classify companies with a relatively small market capitalization. A company s market capitalization is the market value of its outstanding shares. Definition can vary but generally considered a company with a market capitalization of between $300 million and $2 billion. 2. Time Horizon - The length of time over which an investment is made or held before it is liquidated. Generally considered a factor in determining an investor s overall aversion to risk. 3. Time Value of Money (TVM) - The idea that money available at the present time is worth more than the same amount of money in the future, due to its potential earning capacity. Considered a core principle of finance, TVM holds that, provided money can earn interest, any amount of money is worth more the sooner it is received. 4. Composite Returns - A Composite is defined as a grouping of factors (equities, indexes, etc.) that have been combined in a standardized way. Therefore, a Composite Return would be the measure of returns generated as an average of the underlying composite being measured. 5. Benchmark - A standard against which the performance of a security, mutual fund, or investment manager can be measured. Generally, broad market and market -segment stock and bond indexes are used for this purpose. 22