Rick Wagner Portfolio Manager Vice President Financial Advisor Honored To Earn My Clients' Trust Every Day

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1 Rick Wagner Portfolio Manager Vice President Financial Advisor Honored To Earn My Clients' Trust Every Day

2 4259 W. Swamp Rd Suite 400, Doylestown, PA / MAIN / TOLL-FREE / FAX rick.wagnerjr@morganstanley.com

3 Rick Wagner Portfolio Manager Vice President Financial Advisor Drawing on over 23 years of experience in the markets, I help a select group of successful families, business owners, and executives manage their wealth. I enjoy helping... A person that is thinking about retirement, and wonders if they will have enough income to stay retired A person that has a 401(k) at a previous employer, and is looking for veteran advice on the management of that portfolio Small business owners with a desire to improve their 401(k), SEP-IRA, or Simple IRA retirement plans A recently divorced or widowed person that needs honest guidance on their financial decisions A person that wishes to seek to protect their legacy, wealth, & heirs from an unnecessary estate tax burden RICK WAGNER 3

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5 My Background Rick Wagner Portfolio Manager Vice President Financial Advisor Rick Wagner, Vice President & Financial Advisor, has been happily married to Keirsten since We have two great sons and live in the quiet countryside of Hilltown, Pennsylvania. I was born in Bellefonte, PA (near Penn State) and raised in Huntingdon Valley, PA. In my spare time, I enjoy surfing, high school football, kayaking, snowboarding, traveling, and spending time with my family. Business Experience : London and New York Financial Futures Exchanges, Floor Trader and Portfolio Manager : Philadelphia Stock Exchange, Floor Trader and Portfolio Manager : Smith Barney, Financial Advisor, Vice President, Portfolio Manager Present: Morgan Stanley*, Financial Advisor, Vice President, Portfolio Manager Education B.S. in Business Administration/Finance, Boston University, Boston, Massachusetts International Finance Minor, London School of Economics, London, United Kingdom RICK WAGNER 5

6 15 Core Beliefs of Rick Wagner 1. The origin of all wealth requires three basic things: personal initiative, hard work, and savings. 2. One shouldn t live life to make money. One should make money to live life. 3. This time is never different. 4. Trust is earned, one little piece at a time, by being honest at all times. 5. A written, evolving Financial Plan is essential for those serious about their money. 6. Most people will ask "Where are the markets/interest rates/gold prices, etc, going?" The real question that every person should ask, but they really rarely do, is "How am I going to help generate an income I cannot outlive, or outspend, for the rest of my life? 7. Consider yourself the equal of everyone. No one should look down or up to you. 8. If you rush into retirement without first seriously considering how much withdrawal pressure your savings can withstand, you will set yourself up for Financial Destruction on the Installment Plan. 9. While investing requires patience, only a fool clings to investments that no longer make sense. Lots of money is needlessly wasted by those "waiting to get back to even". 10. I believe Relative Strength, coupled with simple fundamental analysis, is the most powerful process for choosing investments to include in a portfolio. It is even more powerful for choosing which investments to exclude. 11. It is dangerous to never change a portfolio. It is even more dangerous to try to make complete portfolio reallocations (for example, moving entirely to cash) based upon fear and greed. I believe that Tactically Allocating a portfolio increases your odds of success noticeably: quite simply, making partial but effective changes based upon the major prevailing market trend. 12. Aging, without seriously trying to protect your wealth through Estate Planning, is a mean and selfish thing to do to the people you love. 13. The dominant determinant (good or bad) of the real long-term returns real people really get is not investment performance. It is investor behavior. 14. Inside adversity lies opportunity. It is a person s own choice which enables them to be a victim, or a survivor. 15. Doing what is right is the only choice. 6 MORGAN STANLEY

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8 Relative Strength Rick Wagner, Portfolio Manager How Do We Make Buy and Sell Decisions? As many of our clients know, we use Relative Strength, alongside fundamental analysis, as a dynamic and adaptive tool to guide our overall portfolio management decisions. We apply the concept of Relative Strength whether we are analyzing client positions in mutual funds, exchange traded funds, individual securities like stocks, or even annuities. This tool is so flexible that it can be used across different styles of accounts, and across multiple asset classes from stocks, to bonds, to currencies, and even to things like Gold. Relative Strength is, at its core, a trend following tool. By nature, it will rarely (if ever) enable us to buy the bottom of a trend, or sell the top of a trend. Instead, Relative Strength seeks to capture a large portion of an uptrend, and avoid a large portion of a downtrend. Often success in a portfolio comes from avoiding deep prolonged losses in specific positions, such as those suffered in the technology collapse of the Bear Market, or the 2007 and 2008 Banking Sector collapse. Why Relative Strength? Simply stated, relative strength is best by test, and it has been around in many forms for at least seventy years. Almost every major sport has a ranking system. Think of the College Basketball Tournament Rankings during March Madness. The teams which are most likely to survive deep into the tournament are ranked higher than the weaker teams, and these rankings are the result of many games played by many teams throughout the entire regular season. Relative Strength is similar, except it ranks investment choices based upon the "competition" of daily price movements. By calculating and plotting Relative Strength every day, it helps us seek which investments may outperform others over time. We don t use relative strength because it happens to be the only tool that is available to us. And we don t use it because it has the ability to generate positive returns 100% of the time ---- it does not. We use relative strength because historically it has generated the best performance over long periods of time, and because the probability of outperformance any given month has historically been higher than in other commonly used strategies[1]. That s what we mean when we say best by test. Whether determining the potential benefits of an individual stock position in a portfolio, or that of an entire asset class within a portfolio, relative strength is a very robust and adaptable guide. 8 MORGAN STANLEY

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10 Asset Allocation and Portfolio Planning I will work with you using a process that focuses on you and your goals, integrating investment decisions with your immediate financial needs and desired aspirations. This process encompasses four steps: 1 Personal review Before I can advise you, I must understand you and your goals. I will guide you through an extensive discovery process to identify your objectives, time horizon, tolerance for risk and other considerations that may play a role in shaping your investment strategy. 2 Asset allocation and portfolio planning Your input drives the development of a personalized financial strategy. Designed to help you meet your specific needs, it addresses areas such as retirement, education expenses, estate planning and tax minimization potential. When my analysis is complete, I will present to you an investment strategy that helps to identify appropriate diversification for your portfolio. 3 Implementation After I have discussed and refined your strategy, I will work closely with you to bring the elements to life. Should we decide that outside money managers are appropriate for you, I will help you select from the hundreds of investment management firms available to you. If you prefer to invest in individual securities, I can help identify specific stocks, bonds and other securities that may be suitable for your portfolio. Whatever approach we decide on together, I will help you keep your strategy on track. 4 Ongoing communications and reporting I view ongoing communication as the foundation of our successful collaboration with you. I will make every effort to keep abreast of your changing financial needs and provide viable strategies to help you meet them. This means reviewing your portfolio together at your request. When your circumstances change, I will work with you to revise your strategy and reposition your assets to reflect your new needs and goals. 10 MORGAN STANLEY

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12 Expectations What You Should Expect as a Client That we will be caring, personable, and polite You will be able to speak with a member of our team, or receive a prompt return call You will be able to ask the same important question as often as necessary That we will explain all costs and fees. Complete transparency. That we will constantly work to earn your trust through honesty and integrity That we will help those that you care for that need financial guidance, regardless of whether or not they are a good fit for our practice. If they are important to you, they are very important to us. What We Expect from our Clients That you are willing to fully disclose your financial life. Only then can our recommendations and strategies be most effective and powerful. Prescription without diagnosis is malpractice That you will tell us what you expect, plain and simple That you will share with us your fears, hopes, and dreams That you will collaborate with us regularly as your financial plan evolves, and you move through the stages of life That you remember the only performance benchmark that matters is the return objective in your financial plan That you remember mainstream financial news is for entertainment purposes only, not serious decision-making This is your money and you ve worked hard for it. Besides your family and your health, this is one of the most important areas of your life. Together we can accomplish great things. 12 MORGAN STANLEY

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14 Contact me to schedule your Introduction Meeting. If I determine that you are a fit for my practice, and you feel comfortable with my process, together we will construct your family's Wealth Plan. And feel confident knowing that until you have had to the opportunity to review my work and your Wealth Plan, you are under no obligation to enagage my Wealth Management services. I look forward to our conversations. 14 MORGAN STANLEY

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16 This material does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and or investments discussed in this material may not be suitable for all investors. Morgan Stanley Smith Barney LLC recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor.The appropriateness of a particular investment or strategy will depend on an investors individual circumstances and objectives Morgan Stanley Smith Barney LLC. Member SIPC /2013 CRC