Tom and Jane Lundquist

Transcription

1 Financial Goal Plan Tom and Jane Lundquist Prepared by: Joe Advisor Financial Consultant December 2, 216

2 Table Of Contents Expectations and Concerns 1 Summary of Goals and Resources Personal Information and Summary of Financial Goals 2-3 Current Financial Goals Graph 4 Life Expectancy Table and Graph 5 Net Worth Summary - All Resources 6 Net Worth Detail - All Resources 7-8 Resources Summary 9-11 Investment Assets by Asset Class 12 Investment Assets by Tax Category 13 Current Portfolio Allocation Goal Assignment Summary 16 Insurance Inventory 17 Tax and Inflation Assumptions 18 Risk and Portfolio Information Risk Assessment 19 Portfolio Table 2 Portfolio Detail 21 Results Results - Current and Recommended What If Worksheet Worksheet Detail - Combined Details Worksheet Detail - Health Care Expense Schedule 4-42 Worksheet Detail - Goal Details Worksheet Detail - Retirement Distribution Cash Flow Chart Worksheet Detail - Retirement Distribution Cash Flow Graphs Worksheet Detail - Cash Used to Fund Goals 74 Worksheet Detail - Sources of Income and Earnings 75 Worksheet Detail - Inside the Numbers Final Result 76 Worksheet Detail - Allocation Comparison Worksheet Detail - Reallocation Detail 79 Worksheet Detail - Bear Market Test 8 Worksheet Detail - Special Asset Test 81 Worksheet Detail - Concentrated Position Test 82 Worksheet Detail - Risk/Reward 83 Worksheet Detail - Social Security Analysis Worksheet Detail - Social Security Combined Details 86 Worksheet Detail - Allocation Detail by Asset Class by Holding Worksheet Detail - Portfolio Changes 89 Plan Summary Plan Summary 9-95 Star Track Star Track 96 Assumptions Explain Real Returns 97

3 Table Of Contents Risk Management Life Insurance Needs Analysis 98 Life Insurance Needs Analysis Detail Disability Needs Analysis - Tom Disability Needs Analysis - Jane Long-Term Care Needs Analysis - Tom 18 Long-Term Care Needs Analysis - Jane 19 Estate Analysis Estate Analysis Introduction Estate Analysis Options 112 Estate Analysis Current Asset Ownership Detail Estate Analysis Results Combined Summary Estate Analysis Results Individual Detail Estate Analysis Results Flowchart Estate Analysis What If Results Combined Summary Estate Analysis What If Results Individual Detail Estate Analysis What If Results Flowchart Employer Stock Plans Stock Options Stock Options Summary Budget for Retirement Goals Retirement Goal Budget Expense Summary 141 Other Blank Page 142 Compliance Snapshot

4 Expectations and Concerns Expectation Tom Active Lifestyle Jane Quiet Lifestyle Time with Friends & Family Both Tom and Jane Opportunity to Help Others Time to Travel Owner Concern What Would Help High Joint Medium Cost of Health Care or Long-Term Care Include a Goal for Health Care and test to see the impact of a potential Long Term Care expense in the future. Tom Suffering investment Losses Find out if you can meet your Goals with less risk. Jane Low Current or Future Health Issues See how health issues might affect the results of your plan Jane Running out of money If your plan is in the Confidence Zone, there's less reason to worry. Tom Parents needing care You can include a Goal for the cost of care for your parents and see its impact on your lifestyle. Page 1 of 157

5 Summary of Goals and Resources

6 Personal Information and Summary of Financial Goals Tom and Jane Lundquist Needs Retirement - Living Expense Tom (22) Jane (22) Both Retired (22-245) Mortgage Reduction of $15, (222) Jane Alone Retired (246-25) Health Care Tom Medicare / Jane Retired Before Medicare (22-221) Both Medicare ( ) Jane Alone Medicare (246-25) Sedan When Jane retires Recurring every 8 years for a total of 3 times $95, $76, Base Inflation Rate (2.5%) $7,882 $11,872 $5,849 Base Inflation Rate plus 4.% (6.5%) $3, Base Inflation Rate (2.5%) Wants 7 Travel When both are retired Recurring every year for a total of 15 times $1, Base Inflation Rate (2.5%) 5 Sports Car When Tom retires Recurring every 8 years for a total of 3 times $35, Base Inflation Rate (2.5%) Wishes Page 2 of 157

7 Personal Information and Summary of Financial Goals Tom and Jane Lundquist 3 College - Jacob 4 years starting in 229 Attending University of Virginia Other Funding Sources - $5, per year $26,138 Base Inflation Rate plus 3.5% (6.%) Other Funding (per year of school, adjusted for inflation) Student Loans - $5, 1 Kitchen Remodel In 225 $35, Base Inflation Rate (2.5%) Personal Information Tom Male - born 1/1/1955, age 61 Employed - $11, Participant Name Date of Birth Age Relationship Daniel 11/12/ Child Jessica 1/1/ Child Jacob 5/15/211 5 Grandchild Jane Female - born 3/15/1957, age 59 Employed - $11, Married, US Citizens living in VA This section lists the Personal and Financial Goal information you provided, which will be used to create your Report. It is important that it is accurate and complete. Page 3 of 157

8 Current Financial Goals Graph This graph shows the annual costs for your Financial Goals, as you have specified. Because these costs will be used to create your Plan, it is important that they are accurate and complete. All amounts are in after-tax, future dollars. Page 4 of 157

9 Life Expectancy Table and Graph How long might you live? Tom lives to age Jane lives to age Either lives to age Chance you will live to age shown Non-Smoker Smoker Non-Smoker Smoker Non-Smoker Smoker 5% % % % % All calculations based on 212 IAM Basic Tables. Page 5 of 157

10 Net Worth Summary - All Resources This is your Net Worth Summary as of. 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 Total Investment Assets Employer Retirement Plans $635, Annuities & Tax-Deferred Products $13, Taxable and/or Tax-Free Accounts $272,89 Total Investment Assets: $1,1,89 Other Assets Home and Personal Assets $95, Business and Property $375, Pension and Deferred Compensation $75, Cash Value Life $2, Stock Options $ Total Other Assets: $565, Investment Assets $1,1,89 Other Assets + $565, Total Assets $1,575,89 Total Liabilities - $171, Net Worth $1,44,89 Liabilities Personal Real Estate Loan: $156, Vehicle Loan: $15, Total Liabilities: $171, Net Worth: $1,44,89 Page 6 of 157

11 Net Worth Detail - All Resources This is your Net Worth Detail as of. 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 Investment Assets Employer Retirement Plans Tom Jane's 43(b) $315, $315, Tom's 41(k) $32, $32, Annuities & Tax-Deferred Products Variable Annuity with GMWB $13, $13, Taxable and/or Tax-Free Accounts Brokerage Account $272,89 $272,89 Total Investment Assets: $423, $315, $272,89 $1,1,89 Other Assets Home and Personal Assets Sailboat $45, $45, Vehicle $5, $5, Business and Property Home $375, $375, Pension and Deferred Compensation Lump Sum Distribution $75, $75, Cash Value Life Whole Life $2, $2, Stock Options Valspar $ Total Other Assets: $115, $75, $375, $565, Liabilities Personal Real Estate Loan: Mortgage $156, $156, Jane Joint Total Page 7 of 157

12 Net Worth Detail - All Resources Description Liabilities Vehicle Loan: Tom Boat Loan $15, $15, Total Liabilities: $15, $ $156, $171, Net Worth: $1,44,89 Jane Joint Total Page 8 of 157

13 Resources Summary Investment Assets Description Owner Current Value Manually Entered Additions Assign to Goal Brokerage Account Joint Survivorship $272,89 $15, Fund All Goals Google, Inc. International Business Machines Corp Valspar Corporation $28,83 $83,446 $16,56 Jane's 43(b) Jane $315, $7,875 Fund All Goals Account Total $315, Tom's 41(k) Tom $32, $12,96 Fund All Goals Qualified Total Roth Total $275, $45, Variable Annuity with GMWB Tom $13, Fund All Goals Account Total $13, Total Investment Assets : $1,1,89 Other Assets Description Owner Current Value Future Value Assign to Goal Manually Entered Inheritance from Jane's Mom Jane $25, Fund All Goals Lump Sum Distribution Jane $75, Fund All Goals Home Joint Survivorship $375, Not Funding Goals Whole Life Tom $2, Not Funding Goals Vehicle Tom $5, Not Funding Goals Sailboat Tom $45, Not Funding Goals Total of Other Assets : $565, Page 9 of 157

14 Resources Summary Insurance Policies Description Owner Insured Beneficiary Manually Entered Cash Value Life Insurance Policies Summary (included in Assets) Whole Life Whole Life Tom Insurance Policies Summary (not included in Assets) Jane Individual Term Life Tom Individual Term Life Jane's Employer Term Group Term Jane Tom Jane Annual Premium Cash Value Death Benefit Premium Paid Tom Co-Client of Insured $1,8 $2, $1, Until Insured Dies - 1% Jane Tom Co-Client of Insured - 1% Co-Client of Insured - 1% $336 $4 Jane Co-Client of Insured $75, - 1% $25, Until Policy Terminates $25, Until Policy Terminates Total Death Benefit of All Policies : $675, Social Security Description Value Assign to Goal Social Security Tom will file a normal application at age 66. He will receive $3,589 in retirement benefits at age 66. Social Security Jane will file a normal application at age 66 Years, 6 Months. She will receive $3,589 in retirement benefits at age 66. Fund All Goals Fund All Goals Retirement Income Description Owner Value Inflate? Assign to Goal Pension Income Tom $18, from Tom's Retirement to End of Plan (5% to Survivor) No Fund All Goals Page 1 of 157

15 Resources Summary Liabilities Type Manually Entered Description Owner Outstanding Balance Interest Rate Monthly Payment Boat Boat Loan Tom $15, 8.2% $612 1st Mortgage Mortgage Joint $156, 7.25% $2,162 Total Outstanding Balance : $171, Page 11 of 157

16 Investment Assets by Asset Class Description Cash & Cash Alternatives Short Term Bonds Intermediate Term Bonds Long Term Bonds Large Cap Value Stocks Large Cap Growth Stocks Mid Cap Stocks Small Cap Stocks International Developed Stocks International Emerging Stocks Unclassified Total Value Brokerage Account Google, Inc. $28,83 International Business Machines Corp $83,446 Valspar Corporation $16,56 Jane's 43(b) Account Total $47,25 $31,5 $31,5 $31,5 $47,25 $47,25 $47,25 $15,75 $15,75 Tom's 41(k) Qualified Total $41,25 $41,25 $27,5 $27,5 $68,75 $68,75 Roth Total $6,75 $4,5 $4,5 $6,75 $11,25 $9, $2,25 $28,83 $83,446 $16,56 $315, $275, $45, Total Current Portfolio : $95,25 $77,25 $63,5 $65,75 $21,696 $153,83 $162,81 $47,25 $15,75 $15,75 $ $97,89 Page 12 of 157

17 Investment Assets by Tax Category Investment Assets by Tax Category This summary includes only those Assets you have identified to fund Goals in this Plan. Asset Class Qualified Tax-Deferred Taxable Tax-Free Roth Coverdell (CESA) 529 Plan Cash & Cash Alternatives $88,5 $15,45 $6,75 Short Term Bonds $72,75 $1,3 $4,5 Intermediate Term Bonds $59, $2,6 $4,5 Long Term Bonds $59, $1,3 $6,75 Large Cap Value Stocks $116, $15,45 $83,446 $11,25 Large Cap Growth Stocks $116, $15,45 $28,83 $9, Mid Cap Stocks $16,56 $2,25 Small Cap Stocks $47,25 $5,15 International Developed Stocks $15,75 $5,15 International Emerging Stocks $15,75 $5,15 Notes Total : $59, $13, $272,89 $ $45, $ $ Qualified Investment Assets include Employer Sponsored Retirement Plans and Traditional IRAs. Tax-Deferred assets include Fixed and Variable Annuities, US Savings Bonds, and Variable Life Insurance. Contributions to a 529 College Savings Plan can have tax implications to you and the beneficiary of the account. You should consult with your legal or tax advisors to discuss the federal and state tax consequences. Page 13 of 157

18 Current Portfolio Allocation This page shows how your Investment Assets are currently allocated among the different Asset Classes. It includes only those Assets you have identified to fund Goals in this Plan. Total Stock 67% Projected Returns Total Return 5.89% Base Inflation Rate 2.5% Real Return 3.39% Standard Deviation 13.21% Bear Market Returns Great Recession November 27 thru February 29-3% Bond Bear Market July 1979 thru February 198 8% Asset Class Cash & Cash Alternatives Short Term Bonds Intermediate Term Bonds Long Term Bonds Large Cap Value Stocks Large Cap Growth Stocks Mid Cap Stocks Small Cap Stocks International Developed Stocks International Emerging Stocks Unclassified Rate of Return 2.5% 3.3% 3.5% 3.3% 7.2% 6.8% 7.5% 7.7% 8.% 9.3%.% Investment Portfolio Value % of Total $95,25 11% $77,25 9% $63,5 7% $65,75 7% $21,696 23% $153,83 17% $162,81 18% $47,25 5% $15,75 2% $15,75 2% $ % Total : $97,89 1% Page 14 of 157

19 Current Portfolio Allocation Effect of Stock Options Value of Vested Stock Options (before tax) $ Value of Portfolio with Vested Stock Options $97,89 Total Stock Including Stock Options 67% Tax-Free Rates of Return Cash & Cash Alternatives Short Term Bonds Intermediate Term Bonds Long Term Bonds 1.9% 2.5% 2.6% 2.5% Concentrated Positions Security Symbol Name Total Value % of Total Assets VAL Valspar Corporation $16,56 18% Effect of Investment Strategies Total Investment Portfolio : $97,89 Current GMWB Investment Strategies $13, Total Investment Assets : $1,1,89 Page 15 of 157

20 Goal Assignment Summary Goal Category Description Value Annual Additions Future Value Fund All Goals Investment Tom's 41(k) $32, $12,96 Jane's 43(b) $315, $7,875 Variable Annuity with GMWB $13, Brokerage Account $272,89 $15, Stock Options Valspar $22,455 starting in 218 Other Inheritance from Jane's Mom $25, starting in 225 Lump Sum Distribution $75, $ starting Jane's retirement Retirement Income Social Security Social Security Pension Income Tom will file a normal application at age 66. He will receive $3,589 in retirement benefits at age 66. Jane will file a normal application at age 66 Years, 6 Months. She will receive $3,589 in retirement benefits at age 66. $18, from Tom's Retirement to End of Plan (5% to Survivor) Page 16 of 157

21 Insurance Inventory Life Description Owner Insured Death Benefit Cash Value Annual Beneficiary Policy Start Premium Date Whole Life Tom Tom $1, $2, $1,8 Co-Client of Insured - 1% Jane Individual Jane Jane $25, $336 Co-Client of Insured - 1% 1/2 Tom Individual Tom Tom $25, $4 Co-Client of Insured - 1% 1/2 Jane's Employer Term Jane Jane $75, Co-Client of Insured - 1% 1/2 If the assets include a Variable Life Investment Asset, the value shown for this policy in the Annual Premium column reflects only the assumed annual increase in the cash value of the insurance policy and not the total premium. Page 17 of 157

22 Tax and Inflation Assumptions Base Inflation Rate Inflation rate : 2.5% Social Security Inflation rate : 2.5% Tax Assumption Inflation rate : 2.5% Marginal Tax Rates Before Retirement Tax Penalty Include penalties in Plan? : Tax Free Earnings - Options Use Tax-Free returns by Asset Class, Marginal Tax Rate to use during Retirement is 4.% Yes Federal Tax Rates : 28.% Untaxed Gain on Taxable Earnings - Before Retirement What portion of your Annual Taxable Investment Earnings will not be taxed until withdrawn? Long Term Capital Gains (LTCG) - Before Retirement State 5.75%.% Local.% What portion of your Taxable Investment Earnings will be taxed at the LTCG rate? Long Term Capital Gains rate : 2.% Use Program estimate Tax Rates During Retirement Let the Program calculate taxes each year Local rate :.% Deduction estimate : Use standard deductions Untaxed Gain on Taxable Earnings - During Retirement What portion of your Annual Taxable Investment Earnings will not be taxed until withdrawn?.% Long Term Capital Gains (LTCG) - During Retirement What portion of your Taxable Investment Earnings will be taxed at the LTCG rate? Long Term Capital Gains rate : 2.% Use Program estimate Taxation of Social Security What portion of Social Security will be taxed? 85.% Page 18 of 157

23 Risk and Portfolio Information

24 Risk Assessment You chose a Risk Score of 55. Appropriate Portfolio: Balanced II Percentage Stock: 54% Average Return: 5.46% Great Recession Return Loss for this Portfolio If this loss would cause you to sell your investments, you should select a lower score. Don't go past your Breaking Point. During the Great Recession Return (November 27 - February 29) this portfolio had a loss of: -21% If you invest $97,89 in this portfolio and the same loss occurred again, you would lose: -$189,259 Page 19 of 157

25 Portfolio Table The Risk-Based Portfolio was selected from this list of Portfolios, based upon the risk assessment. The Target Band is comprised of the portfolio(s) that could be appropriate for you, based upon the Risk-Based Portfolio indicated. The Target Portfolio was selected by you. The Average Real Return is equal to the Average Total Return minus the inflation rate of 2.5%. Refer to the Standard Deviation column in the chart below to compare the relative risk of your Current Portfolio to the Target Portfolio. Current Risk Based Target Band Name Cash Bond Stock Alternative Average Return Total Real Standard Deviation Capital Preservation I 5% 67% 28% % 4.42% 1.92% 5.89% Capital Preservation II 5% 57% 38% % 4.83% 2.33% 7.64% Balanced I 4% 51% 45% % 5.1% 2.6% 8.92% Balanced II 4% 42% 54% % 5.46% 2.96% 1.59% Total Return I 4% 35% 61% % 5.81% 3.31% 12.9% Current 11% 23% 67% % 5.89% 3.39% 13.21% Total Return II 3% 25% 72% % 6.27% 3.77% 14.23% Capital Growth I 2% 16% 82% % 6.7% 4.2% 16.26% Capital Growth II % 9% 91% % 7.1% 4.6% 18.2% Equity Growth % % 1% % 7.47% 4.97% 19.8% Efficient Frontier Graph When deciding how to invest your money, you must determine the amount of risk you are willing to assume to pursue a desired return. The Efficient Frontier Graph reflects a set of portfolios that assume a low relative level of risk for each level of return, or conversely an optimal return for the degree of investment risk taken. The graph also shows the position of the Current, Target, Risk-Based, and Custom Portfolios, if applicable. The positioning of these portfolios illustrates how their respective risks and returns compare to each other as well as the optimized level of risk and return represented by the Portfolios. This graph shows the relationship of return and risk for each Portfolio in the chart above. Page 2 of 157

26 Portfolio Detail Portfolio Detail - Balanced II This chart summarizes the growth and return information for the portfolio for this period. Portfolio Information Average Total Return 5.46% Inflation 2.5% Average Real Return 2.96% Standard Deviation 1.59% Page 21 of 157

27 Results

28 Results - Current and Recommended Results Current Scenario Recommended Scenario Average Return Bad Timing Average Return Bad Timing Estimated % of Goals Funded Likelihood of Funding All Goals 99% 94% 1% 1% Your Confidence Zone: 75% - 9% Current Scenario Optimized Changes In Value Retirement Retirement Age Tom 65 in in year later Jane 63 in in year later Planning Age Tom 9 in in 245 Jane 93 in in 25 Page 22 of 157

29 Results - Current and Recommended Current Scenario Optimized Changes In Value Goals Needs Retirement - Living Expense Both Retired Jane Alone Retired Health Care Tom Medicare / Jane Retired Before Medicare Both Medicare Jane Alone Medicare Sedan Starting Years between occurrences Number of occurrences Wants Travel Starting Years between occurrences Number of occurrences Sports Car Starting Years between occurrences Number of occurrences Wishes College - Jacob Years of School Start Year Kitchen Remodel Starting $95, $76, $7,882 $11,872 $5,849 $3, At Jane's retirement 8 3 $1, When both are retired 1 15 $35, At Tom's retirement 8 3 $26, $35, 225 $95, $76, $7,882 $11,872 $5,849 $3, At Jane's retirement 8 3 $1, When both are retired 1 15 $3, At Tom's retirement 8 3 $2, $25, 225 Decreased $5, Decreased $6,138 Decreased $1, Total Spending for Life of Plan $3,226,328 $3,75,34 Decreased 5% Page 23 of 157

30 Results - Current and Recommended Savings Current Scenario Optimized Changes In Value Qualified $19,755 $32,715 Increased $12,96 Roth $1,8 $1,8 Taxable $15, $25, Increased $1, Total Savings This Year $35,835 $58,795 Increased $22,96 Portfolios Allocation Before Retirement Current Balanced II 13% Less Stock Percent Stock 67% 54% Total Return 5.89% 5.46% Standard Deviation 13.21% 1.59% Great Recession Return 11/7-2/9-3% -21% Bond Bear Market Return 7/79-2/8 8% 4% Allocation During Retirement Current Balanced II 13% Less Stock Percent Stock 67% 54% Total Return 5.89% 5.46% Standard Deviation 13.21% 1.59% Great Recession Return 11/7-2/9-3% -21% Bond Bear Market Return 7/79-2/8 8% 4% Inflation 2.5% 2.5% Investments Total Investment Portfolio $97,89 $97,89 Current GMWB Investment Strategies $13, $13, Total Investment Assets $1,1,89 $1,1,89 Page 24 of 157

31 Results - Current and Recommended Social Security Current Scenario Optimized Changes In Value Social Security Strategy Tom Filing Method Age to File Application Age Retirement Benefits Begin First Year Benefit Jane Filing Method Age to File Application Age Retirement Benefits Begin First Year Benefit At FRA Normal $3,589 Normal 66 Years, 6 Months 66 Years, 6 Months $3,589 At Age 7 Normal 7 7 $4,511 Normal 7 7 $39,283 Page 25 of 157

32 What If Worksheet This Worksheet allows you to analyze and compare the results of one or more scenarios that you created by varying the Plan assumptions. Estimated % of Goal Funded Goals Current Scenario Optimized Lump Sum Pension Allocation Change Average Return Bad Timing Average Return Bad Timing Average Return Bad Timing Average Return Bad Timing Needs 1% 1% 1% 1% 1% 1% 1% 1% 1 Retirement 1 Health Care 8 Sedan Wants 1% 85% 1% 1% 1% 1% 1% 75% 7 Travel 5 Sports Car Wishes 83% 8% 1% 1% 1% 43% 46% 8% 3 College - Jacob 1 Kitchen Remodel Safety Margin (Value at End of Plan) Current dollars (in thousands) : $ $ $588 $29 $315 $ $ $ Future dollars (in thousands) : $ $ $1,396 $496 $749 $ $ $ Indicates different data between the Scenario in the first column and the Scenario in any other column. Page 26 of 157

33 What If Worksheet Monte Carlo Results Likelihood of Funding All Goals Your Confidence Zone: 75% - 9% Total Spending : $3,226,328 $3,75,34 $3,75,34 $3,226,328 Key Assumptions Current Scenario Optimized Lump Sum Pension Allocation Change Stress Tests Method(s) Funding Order Bad Timing Program Estimate Years of bad returns: 22: -2.53% 221: -7.32% Bad Timing Program Estimate Years of bad returns: 221: % 222: -5.13% Bad Timing Program Estimate Years of bad returns: 221: % 222: -5.13% Bad Timing Program Estimate Years of bad returns: 22: % 221: -5.13% Assets - Ignore Earmarks No No No No Retirement Income - Ignore Earmarks No No No No Indicates different data between the Scenario in the first column and the Scenario in any other column. Page 27 of 157

34 What If Worksheet Key Assumptions Current Scenario Optimized Lump Sum Pension Allocation Change Hypothetical Average Rate of Return Before Retirement : Current Balanced II Balanced II Balanced II Total Return : 5.89% 5.46% 5.46% 5.46% Standard Deviation : 13.21% 1.59% 1.59% 1.59% Total Return Adjustment :.%.%.%.% Adjusted Real Return : 3.39% 2.96% 2.96% 2.96% After Retirement : Current Balanced II Balanced II Balanced II Total Return : 5.89% 5.46% 5.46% 5.46% Standard Deviation : 13.21% 1.59% 1.59% 1.59% Total Return Adjustment :.%.%.%.% Adjusted Real Return : 3.39% 2.96% 2.96% 2.96% Base inflation rate : 2.5% 2.5% 2.5% 2.5% Tax-Free Options Before Retirement Reallocate a portion of bonds to tax-free: No No No No Percent of bond allocation to treat as tax-free:.%.%.%.% After Retirement Reallocate a portion of bonds to tax-free: No No No No Percent of bond allocation to treat as tax-free:.%.%.%.% Indicates different data between the Scenario in the first column and the Scenario in any other column. Page 28 of 157

35 What If Worksheet Key Assumptions Current Scenario Optimized Lump Sum Pension Allocation Change Goals Living Expense Retirement Age Tom Jane Planning Age Tom Jane One Retired Tom Retired and Jane Employed $6, $6, $6, $6, Jane Retired and Tom Employed $6, $6, $6, $6, Both Retired Both Retired $95, $95, $95, $95, One Alone - Retired Jane Alone Retired $76, $76, $76, $76, Tom Alone Retired $96, $96, $96, $96, One Alone - Employed Tom Alone Employed $6, $6, $6, $6, Jane Alone Employed $6, $6, $6, $6, Health Care Percentage to increase costs : 1% 1% 1% 1% Cost determined by Schedule : See details See details See details See details Sedan Year : At Jane's retirement At Jane's retirement At Jane's retirement At Jane's retirement Cost : $3, $3, $3, $3, Is recurring : Yes Yes Yes Yes Years between occurrences : Number of occurrences : Travel Indicates different data between the Scenario in the first column and the Scenario in any other column. Page 29 of 157

36 What If Worksheet Key Assumptions Current Scenario Optimized Lump Sum Pension Allocation Change Goals Year : When both are retired When both are retired When both are retired When both are retired Cost : $1, $1, $1, $1, Is recurring : Yes Yes Yes Yes Years between occurrences : Number of occurrences : Sports Car Year : At Tom's retirement At Tom's retirement At Tom's retirement At Tom's retirement Cost : $35, $3, $3, $35, Is recurring : Yes Yes Yes Yes Years between occurrences : Number of occurrences : College - Jacob Year : Years of Education : Annual Cost : $26,138 $2, $2, $26,138 Kitchen Remodel Year : Cost : $35, $25, $25, $35, Indicates different data between the Scenario in the first column and the Scenario in any other column. Page 3 of 157

37 What If Worksheet Key Assumptions Current Scenario Optimized Lump Sum Pension Allocation Change Retirement Income Pension Income (Tom) Annual Income : $18, $18, $ $18, Start Year : Tom's retirement Tom's retirement Tom's retirement Tom's retirement Select when income will end : End of Plan End of Plan End of Plan End of Plan Year to end retirement income : Survivor Benefit : 5% 5% 5% 5% Social Security Select Social Security Strategy At FRA At Age 7 At Age 7 At FRA Tom Filing Method : Normal Normal Normal Normal Age to File Application : Age Retirement Benefits begin : First Year Benefit : $3,589 $4,511 $4,511 $3,589 Jane Filing Method : Normal Normal Normal Normal Age to File Application : 66 Years, 6 Months Years, 6 Months Age Retirement Benefits begin : 66 Years, 6 Months Years, 6 Months First Year Benefit : $3,589 $39,283 $39,283 $3,589 Reduce Benefits By : % % % % Indicates different data between the Scenario in the first column and the Scenario in any other column. Page 31 of 157

38 What If Worksheet Key Assumptions Current Scenario Optimized Lump Sum Pension Allocation Change Asset Additions Tom's 41(k) 5.% 15.% 15.% 5.% Roth: 1.% 1.% 1.% 1.% Maximum contribution each year: No No No No % Designated as Roth:.%.%.%.% Plan addition amount: $12,96 $25,92 $25,92 $12,96 Year additions begin: Tom - Fund All Goals Jane's 43(b) 5.% 5.% 5.% 5.% Roth:.%.%.%.% Maximum contribution each year: No No No No % Designated as Roth:.%.%.%.% Plan addition amount: $7,875 $7,875 $7,875 $7,875 Year additions begin: Jane - Fund All Goals Brokerage Account After-Tax Addition: $15, $15, $15, $15, Tax-Free Addition: $ $ $ $ Year additions begin: Joint - Fund All Goals Extra Savings by Tax Category Tom's Qualified $ $ $ Jane's Qualified $ $ $ Tom's Roth $ $ $ Jane's Roth $ $ $ Tom's Tax-Deferred $ $ $ Jane's Tax-Deferred $ $ $ Taxable $1, $1, $ Indicates different data between the Scenario in the first column and the Scenario in any other column. Page 32 of 157

39 What If Worksheet Key Assumptions Current Scenario Optimized Lump Sum Pension Allocation Change Stock Options Valspar Include in plan : Yes Yes Yes Yes Stock Options Scenario : Scenario 1 Scenario 1 Scenario 1 Scenario 1 Vesting Termination Year : Return : 8.% 8.% 8.% 8.% Other Assets Lump Sum Distribution Include in Plan : Yes Yes Yes Yes When received : Jane's retirement Jane's retirement Jane's retirement Jane's retirement Amount of cash received : $ $ $1, $ Inheritance from Jane's Mom Include in Plan : Yes Yes Yes Yes Select special amount : Expected Expected Expected Expected When received : Amount of cash received : $25, $25, $25, $25, Tax Options Include Tax Penalties : Yes Yes Yes Yes Change Tax Rate? No No No No Year To Change : Change Tax Rate by this % (+ or -) :.%.%.%.% Indicates different data between the Scenario in the first column and the Scenario in any other column. Page 33 of 157

40 Worksheet Detail - Combined Details Scenario : Optimized using Average Returns These pages provide a picture of how your Investment Portfolio may hypothetically perform over the life of this Plan. The graph shows the effect on the value of your Investment Portfolio for each year. The chart shows the detailed activities that increase and decrease your Investment Portfolio value each year including the funds needed to pay for each of your Goals. Shortfalls that occur in a particular year are denoted with an 'X' under the Goal column. Total Portfolio Value Graph x - denotes shortfall Page 34 of 157

41 Worksheet Detail - Combined Details Scenario : Optimized using Average Returns Event or Ages Year Beginning Portfolio Value Earmarked Fund All Goals Additions To Assets Other Additions Stock Options Post Investment Retirement Earnings Income Taxes Funds Used All Goals Ending Portfolio Value 61 / ,89 58,795 52,737 4,792 1,13,83 62 / ,13,83 59,64 58,611 5,379 1,126,72 63 / ,126,72 6,56 22,455 66,48 6,352 1,269, / ,269,359 61,393 72,659 6,999 1,396, / ,396,412 62,33 79,646 7,672 1,53,689 Tom & Jane 221 1,53,689 6, 18, 74,178 2, ,511 1,43,65 Retire 67 / ,43,65 6,12 18, 72,751 1, ,695 1,43, / ,43,832 6,24 18, 7,561 11,6 125,43 1,361,63 69 / ,361,63 6,36 18, 67,433 21, ,34 1,32,155 7 / ,32, ,48 68,592 79,22 13, ,544 1,528, / ,528,378 6,6 69,857 79,458 13,47 137,492 1,533, / ,533,331 6,72 122,697 81,55 3, ,821 1,571, / ,571,785 6,84 125,314 83,458 31, ,316 1,69,3 74 / ,69,3 6,96 127,997 78,883 31, ,461 1,522, / ,522,486 7,8 13,747 78,366 31, ,989 1,512, / ,512,914 7,2 133,566 77,497 32,994 21,568 1,496, / ,496,614 7,32 136,455 76,7 37,658 29,56 1,469, / ,469,295 7,44 139,416 77,4 34, ,576 1,487, / ,487,247 7,56 142,451 77,788 35, ,25 1,52,311 8 / ,52,311 7,68 145,563 78,42 36, ,157 1,514,86 81 / ,514,86 7,8 148,752 79,723 38, ,921 1,539, / ,539,293 7,92 152,21 75,437 37, ,692 1,457,58 83 / ,457,58 8,4 155,371 76,235 39,34 185,172 1,472, / ,472,192 8,16 158,85 76,836 4, ,699 1,483,59 85 / ,483,59 8,28 162,325 77,221 42, ,513 1,49,66 86 / ,49,66 8,4 165,934 77,367 43,545 25,628 1,493, / ,493,188 8,52 169,632 77,252 44, ,61 1,49, / ,49,697 8,64 173,423 76,849 46,97 22,829 1,482, / ,482,683 8,76 177,38 76,132 47, ,95 1,468,67 x - denotes shortfall Page 35 of 157

42 Worksheet Detail - Combined Details Scenario : Optimized using Average Returns Event or Ages Year Beginning Portfolio Value Earmarked Fund All Goals Additions To Assets Other Additions Stock Options Post Investment Retirement Earnings Income Taxes Funds Used All Goals Ending Portfolio Value Tom's Plan Ends 245 1,468,67 8,88 181,291 75,77 48,37 237,443 1,448,41 - / ,448,41 166,9 93,974 82,158 4, ,641 1,583,421 - / ,583,421 96,98 8,255 4, ,355 1,546,731 - / ,546,731 98,276 78,13 41, ,312 1,53,544 - / ,53,544 1,58 75,49 41, ,525 1,453,44 Jane's Plan Ends 25 1,453,44 12,796 72,417 41, ,7 1,395,84 x - denotes shortfall Page 36 of 157

43 Worksheet Detail - Combined Details Scenario : Optimized using Average Returns Event or Ages Year Funds Used Retirement Health Care Sedan Travel Sports Car College - Jacob Kitchen Remodel Ending Portfolio Value 61 / ,13,83 62 / ,126,72 63 / ,269, / ,396, / ,53,689 Tom & Jane ,513 1,799 33,942 11,314 33,942 1,43,65 Retire 67 / ,775 17,322 11,597 1,43, / ,95 18,448 11,887 1,361,63 69 / ,472 19,647 12,184 1,32,155 7 / ,99 2,924 12,489 31,222 1,528, / ,47 22,285 12,81 1,533, / ,967 23,733 13,121 1,571, / ,591 25,276 13,449 1,69,3 74 / ,281 26,919 41,355 13,785 41,355 35,766 1,522, / ,38 28,668 14,13 38,153 1,512, / ,864 3,532 14,483 4,69 1,496, / ,76 32,516 14,845 43,385 1,469, / ,729 34,63 15,216 1,487, / ,773 36,881 15,597 1,52,311 8 / ,892 39,278 15,987 1,514,86 81 / ,89 41,831 1,539, / ,367 44,55 5,387 5,387 1,457,58 83 / ,726 47,446 1,472, / ,169 5,53 1,483,59 85 / ,698 53,814 1,49,66 86 / ,316 57,312 1,493, / ,23 61,38 1,49, / ,824 65,5 1,482,683 x - denotes shortfall Page 37 of 157

44 Worksheet Detail - Combined Details Scenario : Optimized using Average Returns Event or Ages Year Funds Used Retirement Health Care Sedan Travel Sports Car College - Jacob Kitchen Remodel Ending Portfolio Value 89 / ,72 69,23 1,468,67 Tom's Plan Ends ,713 73,73 1,448,41 - / ,952 38,689 1,583,421 - / ,15 41,24 1,546,731 - / ,429 43,882 1,53,544 - / ,79 46,735 1,453,44 Jane's Plan Ends ,235 49,773 1,395,84 x - denotes shortfall Page 38 of 157

45 Worksheet Detail - Combined Details Notes Calculations are based on a Rolling Year rather than a Calendar Year. The current date begins the 365-day Rolling Year. Additions and withdrawals occur at the beginning of the year. Other Additions come from items entered in the Other Assets section and any applicable proceeds 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 Income from immediate annuities, 72(t) distributions, and variable annuities with a guaranteed minimum withdrawal benefit (GMWB) is pre-tax. Strategy Income from Net Unrealized Appreciation (NUA) is after-tax. Post 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 the Plan. When married, if either Social Security Program Estimate or Use This Amount and Evaluate Annually is selected for a participant, the program will default to the greater of the selected benefit or the age adjusted spousal benefit based on the other participant's benefit. Investment Earnings are calculated on all assets after any withdrawals for 'Goal Expense', 'Taxes on Withdrawals' and 'Tax Penalties' are subtracted. 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 on withdrawals from taxable assets' untaxed gain used to fund Goals in that year, (5) taxes on withdrawals from tax-deferred or qualified assets used to fund goals in that year, and (6) taxes on the investment earnings of taxable assets. Tax rates used are detailed in the Tax and Inflation Options page. (Please note, the Taxes column does not include any taxes owed from the exercise of Stock Options or the vesting of Restricted Stock.) Tax Penalties can occur when Qualified and Tax-Deferred Assets are used prior to age 59½. If there is a value in this column, it illustrates that you are using your assets in this Plan in a manner that may incur tax penalties. Generally, it is better to avoid tax penalties whenever possible. These calculations do not incorporate penalties associated with use of 529 Plan withdrawals for non-qualified expenses. Funds for each Goal Expense are first used from Earmarked Assets. If sufficient funds are not available from Earmarked Assets, Fund All Goals Assets will be used to fund the remaining portion of the Goal Expense, if available in that year. All funds needed for a Goal must be available in the year the Goal occurs. Funds from Earmarked Assets that become available after the goal year(s) have passed are not included in the funding of that Goal, and accumulate until the end of the Plan. When married, ownership of qualified assets is assumed to roll over to the surviving co-client at the death of the original owner. It is also assumed the surviving co-client inherits all assets of the original owner. The Retirement Cash Reserve is the total funding amount for the Cash Reserve at the beginning of each year. The Retirement Cash Reserve is funded from the Earmarked and Fund All Goals columns, and the Cash Reserve amount is included in both the Beginning and Ending Portfolio Values. x - denotes shortfall Page 39 of 157

46 Worksheet Detail - Health Care Expense Schedule Scenario : Optimized Year Age/Event Tom 221 Tom retires and starts Medicare, Jane retires 222 Jane starts Medicare Private Insurance Prior to Medicare Medicare Part B Medicare Part D Medigap Policy Out-of- Pocket Tom's Total Private Insurance Prior to Medicare Medicare Part B Medicare Part D Jane Medigap Policy Out-of- Pocket Jane's Total Annual Total $ $2,3 $847 $2,853 $2,548 $8,251 $ $ $ $ $2,548 $2,548 $1,799 $ $2,133 $92 $3,38 $2,714 $8,787 $ $2,133 $92 $2,786 $2,714 $8,535 $17, /66 $ $2,272 $961 $3,235 $2,89 $9,359 $ $2,272 $961 $2,967 $2,89 $9,9 $18, /67 $ $2,42 $1,23 $3,446 $3,78 $9,967 $ $2,42 $1,23 $3,159 $3,78 $9,681 $19, /68 $ $2,577 $1,9 $3,67 $3,278 $1,615 $ $2,577 $1,9 $3,365 $3,278 $1,31 $2, /69 $ $2,744 $1,161 $3,98 $3,491 $11,35 $ $2,744 $1,161 $3,583 $3,491 $1,98 $22, /7 $ $2,923 $1,236 $4,162 $3,718 $12,39 $ $2,923 $1,236 $3,816 $3,718 $11,694 $23, /71 $ $3,113 $1,316 $4,433 $3,96 $12,822 $ $3,113 $1,316 $4,64 $3,96 $12,454 $25, /72 $ $3,315 $1,42 $4,721 $4,218 $13,655 $ $3,315 $1,42 $4,329 $4,218 $13,263 $26, /73 $ $3,531 $1,493 $5,28 $4,492 $14,543 $ $3,531 $1,493 $4,61 $4,492 $14,125 $28, /74 $ $3,76 $1,59 $5,355 $4,784 $15,488 $ $3,76 $1,59 $4,91 $4,784 $15,43 $3, /75 $ $4,4 $1,693 $5,73 $5,95 $16,495 $ $4,4 $1,693 $5,229 $5,95 $16,21 $32, /76 $ $4,265 $1,84 $6,73 $5,426 $17,567 $ $4,265 $1,84 $5,569 $5,426 $17,63 $34,63 Page 4 of 157

47 Worksheet Detail - Health Care Expense Schedule Scenario : Optimized Year Age/Event Tom Private Insurance Prior to Medicare Medicare Part B Medicare Part D Medigap Policy Out-of- Pocket Tom's Total Private Insurance Prior to Medicare Medicare Part B Medicare Part D Jane Medigap Policy /77 $ $4,542 $1,921 $6,468 $5,778 $18,79 $ $4,542 $1,921 $5,931 $5,778 $18,172 $36, /78 $ $4,837 $2,46 $6,888 $6,154 $19,925 $ $4,837 $2,46 $6,316 $6,154 $19,353 $39, /79 $ $5,152 $2,179 $7,336 $6,554 $21,22 $ $5,152 $2,179 $6,727 $6,554 $2,611 $41, /8 $ $5,486 $2,32 $7,813 $6,98 $22,6 $ $5,486 $2,32 $7,164 $6,98 $21,951 $44, /81 $ $5,843 $2,471 $8,321 $7,434 $24,69 $ $5,843 $2,471 $7,63 $7,434 $23,377 $47, /82 $ $6,223 $2,632 $8,862 $7,917 $25,633 $ $6,223 $2,632 $8,125 $7,917 $24,897 $5, /83 $ $6,627 $2,83 $9,438 $8,431 $27,299 $ $6,627 $2,83 $8,654 $8,431 $26,515 $53, /84 $ $7,58 $2,985 $1,51 $8,98 $29,74 $ $7,58 $2,985 $9,216 $8,98 $28,239 $57, /85 $ $7,517 $3,179 $1,75 $9,563 $3,964 $ $7,517 $3,179 $9,815 $9,563 $3,74 $61, /86 $ $8,5 $3,386 $11,4 $1,185 $32,976 $ $8,5 $3,386 $1,453 $1,185 $32,29 $65, /87 $ $8,526 $3,66 $12,141 $1,847 $35,12 $ $8,526 $3,66 $11,133 $1,847 $34,111 $69, Tom's plan ends $ $9,8 $3,84 $12,931 $11,552 $37,42 $ $9,8 $3,84 $11,856 $11,552 $36,328 $73, /89 $ $ $ $ $ $ $ $9,67 $4,9 $12,627 $12,33 $38,689 $38, /9 $ $ $ $ $ $ $ $1,299 $4,355 $13,448 $13,12 $41,24 $41, /91 $ $ $ $ $ $ $ $1,968 $4,639 $14,322 $13,954 $43,882 $43, /92 $ $ $ $ $ $ $ $11,681 $4,94 $15,253 $14,861 $46,735 $46, Jane's plan ends $ $ $ $ $ $ $ $12,44 $5,261 $16,244 $15,827 $49,773 $49,773 Total Lifetime Cost of Health Care $485,886 $686,745 Out-of- Pocket Jane's Total Annual Total Page 41 of 157

48 Worksheet Detail - Health Care Expense Schedule Scenario : Optimized Notes Program assumptions: The scenario assumes that client and co-client will each use a combination of Medicare Part A (Hospital Insurance), Part B (Medical Insurance), Part D (Prescription Drug Insurance), Medigap insurance, and Out-of Pocket expenses. The program uses initial default values that may have been adjusted based on your preferences and information provided by you. The scenario assumes that client and co-client each qualify to receive Medicare Part A at no charge and therefore it is not reflected in the Health Care Expense schedule. Estimates for private insurance prior to retirement are based on the information you provided. Medicare and Medigap costs begin at the later of age 65, your retirement age, or the current year. All costs are in future dollars. General Information regarding Medicare: Part B premiums are uniform nationally and are increased for those with a higher Modified Adjusted Gross Income. Part D coverage is optional. Premiums are increased for those with a higher Modified Adjusted Gross Income, differ from state to state, and vary based on the specific plan and level of benefit selected. Medigap coverage is optional and policies (Plans A-N) are issued by private insurers. Clients may incur out-of-pocket healthcare expenses, for costs not covered by Medicare benefits and Medigap insurance. If clients retire before age 65, they may choose to purchase private health insurance or to self-insure. Costs and coverage for private health insurance varies greatly. Costs associated with Long Term Care needs are not addressed by this goal. A separate LTC goal can be created. Page 42 of 157

49 Worksheet Detail - Goal Details Details of "Retirement - Living Expense" for Optimized using Average Returns Goal Amount Estimated % of Goal Funded Retirement - Living Expense Tom (221) Jane (221) Both Retired ( ) Mortgage Reduction of $15, (222) Jane Alone Retired (246-25) $95, Mortgage Reduction of $15, (222) $76, 1% Event or Ages Year Value of Earmarked Assets Additions To Assets Other Additions Earmarked Assets Only Stock Options Strategy Income Retirement Income Investment Earnings Tax on Income and Earnings Goal Expense Use Earmarked Asts For Goal Expense For Tax on Withdrawal Use Fund All Goals Asts For Goal Expense For Tax on Withdrawal 61 / / / / / Tom & Jane Retire ,513 15, / ,775 92, / ,95 95,95 6, / ,472 97,472 12,945 7 / ,99 99,99 71 / ,47 12,47 72 / ,967 14, / ,591 17, / ,281 11, / ,38 113,38 76 / , , / ,76 118,76 78 / , , / , ,773 8 / , ,892 Tax Penalty Shortfall Page 43 of 157

50 Worksheet Detail - Goal Details Details of "Retirement - Living Expense" for Optimized using Average Returns Event or Ages Year Value of Earmarked Assets Additions To Assets Other Additions Earmarked Assets Only Stock Options Strategy Income Retirement Income Investment Earnings Tax on Income and Earnings Goal Expense Use Earmarked Asts For Goal Expense For Tax on Withdrawal Use Fund All Goals Asts For Goal Expense For Tax on Withdrawal 81 / ,89 131,89 82 / , , / , , / , , / , , / , , / ,23 152,23 88 / , , / ,72 159,72 Tom's Plan Ends , ,713 - / , ,952 - / ,15 131,15 - / , ,429 - / ,79 137,79 Jane's Plan Ends , ,235 Tax Penalty Shortfall Page 44 of 157

51 Worksheet Detail - Goal Details Details of "Retirement - Living Expense" for Optimized using Average Returns Notes Funds for each Goal Expense are used first from Earmarked Assets. If sufficient funds are not available from Earmarked Assets, Fund All Goals Assets will be used to fund the remaining portion of the Goal Expense, if available in that year. There are values in the columns 'Additions to Assets' and 'Other Additions' if there are assets assigned to this Goal. Additions and withdrawals occur at the beginning of the year. There are values in the 'Investment Earnings' and 'Tax on Earnings' columns if there are assets earmarked for this Goal. Investment Earnings are calculated on all assets after any withdrawals for 'Goal Expenses', 'Taxes on Withdrawals', and 'Tax Penalties' are subtracted. Taxes are calculated on the Investment Earnings of taxable assets, retirement income, and strategy income assigned to this Goal. Tax rates used are detailed in the Tax and Inflation Options page. These calculations do not incorporate penalties associated with use of 529 Plan withdrawals for non-qualified expenses. Tax Penalties can occur when Qualified and Tax-Deferred Assets are used prior to age 59½. If there is a value in this column, it illustrates that you are using your assets in this Plan in a manner that may incur tax penalties. Generally, it is better to avoid tax penalties whenever possible. Other Additions come from items entered in the Other Assets section and any applicable proceeds 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 Income from immediate annuities, 72(t) distributions, and variable annuities with a guaranteed minimum withdrawal benefit (GMWB) is pre-tax. Strategy Income from Net Unrealized Appreciation (NUA) is after-tax. 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 the Plan. There are values in this column if you have assigned Retirement Income to the Retirement Goal. When married, if either Social Security Program Estimate or Use This Amount and Evaluate Annually is selected for a participant, the program will default to the greater of the selected benefit or the age adjusted spousal benefit based on the other participant's benefit. When married, ownership of qualified assets is assumed to roll over to the surviving co-client at the death of the original owner. It is also assumed the surviving co-client inherits all assets of the original owner. The 'For Tax on Withdrawals' column represents any taxes from taxable assets' untaxed gain used to fund goals in that year as well as any taxes on withdrawals from tax-deferred or qualified assets to fund goals in that year. Taxes due on Required Minimum Distributions are included in the calculations but are not illustrated separately. Page 45 of 157

52 Worksheet Detail - Goal Details Details of "Health Care" for Optimized using Average Returns Goal Amount Estimated % of Goal Funded Health Care Tom Medicare / Jane Retired Before Medicare (221) Both Medicare ( ) Jane Alone Medicare (246-25) $7,882 $11,872 $5,849 1% Page 46 of 157

53 Worksheet Detail - Goal Details Details of "Health Care" for Optimized using Average Returns Year Value of Earmarked Assets Additions To Assets Earmarked Assets Only Other Additions Investment Earnings Tax on Earnings Goal Expense Use Earmarked Asts For Goal Expense For Tax on Withdrawal Use Fund All Goals Asts For Goal Expense For Tax on Withdrawal Tax Penalty ,799 1, ,322 17, ,448 18,448 1, ,647 19,647 2, ,924 2, ,285 22, ,733 23, ,276 25, ,919 26, ,668 28, ,532 3, ,516 32, ,63 34, ,881 36, ,278 39, ,831 41, ,55 44, ,446 47, ,53 5, ,814 53, ,312 57, ,38 61, ,5 65, ,23 69, ,73 73, ,689 38, ,24 41, ,882 43,882 Shortfall Page 47 of 157

54 Worksheet Detail - Goal Details Details of "Health Care" for Optimized using Average Returns Year Value of Earmarked Assets Additions To Assets Earmarked Assets Only Other Additions Investment Earnings Tax on Earnings Goal Expense Use Earmarked Asts For Goal Expense For Tax on Withdrawal Use Fund All Goals Asts For Goal Expense For Tax on Withdrawal Tax Penalty ,735 46, ,773 49,773 Shortfall Notes Funds for each Goal Expense are used first from Earmarked Assets. If sufficient funds are not available from Earmarked Assets, Fund All Goals Assets will be used to fund the remaining portion of the Goal Expense, if available in that year. There are values in the columns 'Additions to Assets' and 'Other Additions' if there are assets earmarked for this Goal. Additions and withdrawals occur at the beginning of the year. There are values in the 'Investment Earnings' and 'Tax on Earnings' columns if there are assets assigned to this Goal. Investment Earnings are calculated on all assets after any withdrawals for 'Goal Expenses', 'Taxes on Withdrawals', and 'Tax Penalties' are subtracted. Taxes are calculated on the Investment Earnings of taxable assets, retirement income, and strategy income assigned to this Goal. Tax rates used are detailed in the Tax and Inflation Options page. Tax Penalties can occur when Qualified and Tax-Deferred Assets are used prior to age 59½. If there is a value in this column, it illustrates that you are using your assets in this Plan in a manner that may incur tax penalties. Generally, it is better to avoid tax penalties whenever possible. Other Additions come from items entered in the Other Assets section as well as any stock option or restricted stock proceeds, retirement income or strategy income assigned to this goal. These calculations do not incorporate penalties associated with use of 529 Plan withdrawals for non-qualified expenses. When married, ownership of qualified assets is assumed to roll over to the surviving co-client at the death of the original owner. It is also assumed the surviving co-client inherits all assets of the original owner. The For Tax on Withdrawals column represents any taxes from taxable assets' untaxed gain used to fund goals in that year as well as any taxes on withdrawals from tax-deferred or qualified assets to fund goals in that year. Taxes due on Required Minimum Distributions are included in the calculations but are not illustrated separately. Page 48 of 157

55 Worksheet Detail - Goal Details Details of "Sedan" for Optimized using Average Returns Goal Sedan When Jane retires Recurring every 8 years for a total of 3 times Amount $3, Estimated % of Goal Funded 1% Page 49 of 157

56 Worksheet Detail - Goal Details Details of "Sedan" for Optimized using Average Returns Year Value of Earmarked Assets Additions To Assets Earmarked Assets Only Other Additions Investment Earnings Tax on Earnings Goal Expense Use Earmarked Asts For Goal Expense For Tax on Withdrawal Use Fund All Goals Asts For Goal Expense For Tax on Withdrawal Tax Penalty ,942 33, ,355 41, ,387 5,387 Shortfall Page 5 of 157

57 Worksheet Detail - Goal Details Details of "Sedan" for Optimized using Average Returns Notes Funds for each Goal Expense are used first from Earmarked Assets. If sufficient funds are not available from Earmarked Assets, Fund All Goals Assets will be used to fund the remaining portion of the Goal Expense, if available in that year. There are values in the columns 'Additions to Assets' and 'Other Additions' if there are assets earmarked for this Goal. Additions and withdrawals occur at the beginning of the year. There are values in the 'Investment Earnings' and 'Tax on Earnings' columns if there are assets assigned to this Goal. Investment Earnings are calculated on all assets after any withdrawals for 'Goal Expenses', 'Taxes on Withdrawals', and 'Tax Penalties' are subtracted. Taxes are calculated on the Investment Earnings of taxable assets, retirement income, and strategy income assigned to this Goal. Tax rates used are detailed in the Tax and Inflation Options page. Tax Penalties can occur when Qualified and Tax-Deferred Assets are used prior to age 59½. If there is a value in this column, it illustrates that you are using your assets in this Plan in a manner that may incur tax penalties. Generally, it is better to avoid tax penalties whenever possible. Other Additions come from items entered in the Other Assets section as well as any stock option or restricted stock proceeds, retirement income or strategy income assigned to this goal. These calculations do not incorporate penalties associated with use of 529 Plan withdrawals for non-qualified expenses. When married, ownership of qualified assets is assumed to roll over to the surviving co-client at the death of the original owner. It is also assumed the surviving co-client inherits all assets of the original owner. The For Tax on Withdrawals column represents any taxes from taxable assets' untaxed gain used to fund goals in that year as well as any taxes on withdrawals from tax-deferred or qualified assets to fund goals in that year. Taxes due on Required Minimum Distributions are included in the calculations but are not illustrated separately. Page 51 of 157

58 Worksheet Detail - Goal Details Details of "Travel" for Optimized using Average Returns Goal Travel When both are retired Recurring every year for a total of 15 times Amount $1, Estimated % of Goal Funded 1% Page 52 of 157

59 Worksheet Detail - Goal Details Details of "Travel" for Optimized using Average Returns Year Value of Earmarked Assets Additions To Assets Earmarked Assets Only Other Additions Investment Earnings Tax on Earnings Goal Expense Use Earmarked Asts For Goal Expense For Tax on Withdrawal Use Fund All Goals Asts For Goal Expense For Tax on Withdrawal Tax Penalty ,314 11, ,597 11, ,887 11,887 2, ,184 12,184 5, ,489 12, ,81 12, ,121 13, ,449 13, ,785 13, ,13 14, ,483 14, ,845 14, ,216 15, ,597 15, ,987 15,987 Shortfall Page 53 of 157

60 Worksheet Detail - Goal Details Details of "Travel" for Optimized using Average Returns Notes Funds for each Goal Expense are used first from Earmarked Assets. If sufficient funds are not available from Earmarked Assets, Fund All Goals Assets will be used to fund the remaining portion of the Goal Expense, if available in that year. There are values in the columns 'Additions to Assets' and 'Other Additions' if there are assets earmarked for this Goal. Additions and withdrawals occur at the beginning of the year. There are values in the 'Investment Earnings' and 'Tax on Earnings' columns if there are assets assigned to this Goal. Investment Earnings are calculated on all assets after any withdrawals for 'Goal Expenses', 'Taxes on Withdrawals', and 'Tax Penalties' are subtracted. Taxes are calculated on the Investment Earnings of taxable assets, retirement income, and strategy income assigned to this Goal. Tax rates used are detailed in the Tax and Inflation Options page. Tax Penalties can occur when Qualified and Tax-Deferred Assets are used prior to age 59½. If there is a value in this column, it illustrates that you are using your assets in this Plan in a manner that may incur tax penalties. Generally, it is better to avoid tax penalties whenever possible. Other Additions come from items entered in the Other Assets section as well as any stock option or restricted stock proceeds, retirement income or strategy income assigned to this goal. These calculations do not incorporate penalties associated with use of 529 Plan withdrawals for non-qualified expenses. When married, ownership of qualified assets is assumed to roll over to the surviving co-client at the death of the original owner. It is also assumed the surviving co-client inherits all assets of the original owner. The For Tax on Withdrawals column represents any taxes from taxable assets' untaxed gain used to fund goals in that year as well as any taxes on withdrawals from tax-deferred or qualified assets to fund goals in that year. Taxes due on Required Minimum Distributions are included in the calculations but are not illustrated separately. Page 54 of 157

61 Worksheet Detail - Goal Details Details of "Sports Car" for Optimized using Average Returns Goal Sports Car When Tom retires Recurring every 8 years for a total of 3 times Amount $3, Estimated % of Goal Funded 1% Page 55 of 157

62 Worksheet Detail - Goal Details Details of "Sports Car" for Optimized using Average Returns Year Value of Earmarked Assets Additions To Assets Earmarked Assets Only Other Additions Investment Earnings Tax on Earnings Goal Expense Use Earmarked Asts For Goal Expense For Tax on Withdrawal Use Fund All Goals Asts For Goal Expense For Tax on Withdrawal Tax Penalty ,942 33, ,355 41, ,387 5,387 Shortfall Page 56 of 157

63 Worksheet Detail - Goal Details Details of "Sports Car" for Optimized using Average Returns Notes Funds for each Goal Expense are used first from Earmarked Assets. If sufficient funds are not available from Earmarked Assets, Fund All Goals Assets will be used to fund the remaining portion of the Goal Expense, if available in that year. There are values in the columns 'Additions to Assets' and 'Other Additions' if there are assets earmarked for this Goal. Additions and withdrawals occur at the beginning of the year. There are values in the 'Investment Earnings' and 'Tax on Earnings' columns if there are assets assigned to this Goal. Investment Earnings are calculated on all assets after any withdrawals for 'Goal Expenses', 'Taxes on Withdrawals', and 'Tax Penalties' are subtracted. Taxes are calculated on the Investment Earnings of taxable assets, retirement income, and strategy income assigned to this Goal. Tax rates used are detailed in the Tax and Inflation Options page. Tax Penalties can occur when Qualified and Tax-Deferred Assets are used prior to age 59½. If there is a value in this column, it illustrates that you are using your assets in this Plan in a manner that may incur tax penalties. Generally, it is better to avoid tax penalties whenever possible. Other Additions come from items entered in the Other Assets section as well as any stock option or restricted stock proceeds, retirement income or strategy income assigned to this goal. These calculations do not incorporate penalties associated with use of 529 Plan withdrawals for non-qualified expenses. When married, ownership of qualified assets is assumed to roll over to the surviving co-client at the death of the original owner. It is also assumed the surviving co-client inherits all assets of the original owner. The For Tax on Withdrawals column represents any taxes from taxable assets' untaxed gain used to fund goals in that year as well as any taxes on withdrawals from tax-deferred or qualified assets to fund goals in that year. Taxes due on Required Minimum Distributions are included in the calculations but are not illustrated separately. Page 57 of 157

64 Worksheet Detail - Goal Details Details of "College - Jacob" for Optimized using Average Returns Goal Amount Estimated % of Goal Funded College - Jacob 4 years starting in 229 Other Funding Sources - $5, per year $2, 1% Page 58 of 157

65 Worksheet Detail - Goal Details Details of "College - Jacob" for Optimized using Average Returns Year Value of Earmarked Assets Additions To Assets Earmarked Assets Only Other Additions Investment Earnings Tax on Earnings Total Expense Goal Expense Less Other Funding Less Others' Assets Equals Net Expense Use Earmarked Asts For Goal Expense For Tax on Withdrawal Use Fund All Goals Asts For Goal Expense For Tax on Withdrawal ,659 6,893 35,766 35, ,218 7,65 38,153 38, ,931 7,241 4,69 4, ,87 7,423 43,385 43,385 4,538 Tax Penalty Shortfall Page 59 of 157

66 Worksheet Detail - Goal Details Details of "College - Jacob" for Optimized using Average Returns Notes Funds for each Goal Expense are used first from Earmarked Assets. If sufficient funds are not available from Earmarked Assets, Fund All Goals Assets will be used to fund the remaining portion of the Goal Expense, if available in that year. There are values in the columns 'Additions to Assets' and 'Other Additions' if there are assets earmarked for this Goal. Additions and withdrawals occur at the beginning of the year. There are values in the 'Investment Earnings' and 'Tax on Earnings' columns if there are assets assigned to this Goal. Investment Earnings are calculated on all assets after any withdrawals for 'Goal Expenses', 'Taxes on Withdrawals', and 'Tax Penalties' are subtracted. Taxes are calculated on the Investment Earnings of taxable assets, retirement income, and strategy income assigned to this Goal. Tax rates used are detailed in the Tax and Inflation Options page. Tax Penalties can occur when Qualified and Tax-Deferred Assets are used prior to age 59½. If there is a value in this column, it illustrates that you are using your assets in this Plan in a manner that may incur tax penalties. Generally, it is better to avoid tax penalties whenever possible. Other Additions come from items entered in the Other Assets section as well as any stock option or restricted stock proceeds, retirement income or strategy income assigned to this goal. These calculations do not incorporate penalties associated with use of 529 Plan withdrawals for non-qualified expenses. Other Funding includes funds coming from other sources such as scholarships, student loans, college employment or gifts that will help fund an educational goal. Others' Assets include Assets not owned by you that will be used to fund an educational goal. Rates of return associated with these assets are detailed on the Information Summary pages and may or may not be consistent with other rates of return defined in this Analysis or consistent with your own risk and return parameters. When married, ownership of qualified assets is assumed to roll over to the surviving co-client at the death of the original owner. It is also assumed the surviving co-client inherits all assets of the original owner. The 'For Tax on Withdrawals' column represents any taxes from taxable assets' untaxed gain used to fund goals in that year as well as any taxes on withdrawals from tax-deferred or qualified assets to fund goals in that year. Taxes due on Required Minimum Distributions are included in the calculations but are not illustrated separately. Page 6 of 157

67 Worksheet Detail - Goal Details Details of "Kitchen Remodel" for Optimized using Average Returns Goal Amount Estimated % of Goal Funded Kitchen Remodel In 225 $25, 1% Page 61 of 157

68 Worksheet Detail - Goal Details Details of "Kitchen Remodel" for Optimized using Average Returns Year Value of Earmarked Assets Additions To Assets Earmarked Assets Only Other Additions Investment Earnings Tax on Earnings Goal Expense Use Earmarked Asts For Goal Expense For Tax on Withdrawal Use Fund All Goals Asts For Goal Expense For Tax on Withdrawal Tax Penalty ,222 31,222 Shortfall Notes Funds for each Goal Expense are used first from Earmarked Assets. If sufficient funds are not available from Earmarked Assets, Fund All Goals Assets will be used to fund the remaining portion of the Goal Expense, if available in that year. There are values in the columns 'Additions to Assets' and 'Other Additions' if there are assets earmarked for this Goal. Additions and withdrawals occur at the beginning of the year. There are values in the 'Investment Earnings' and 'Tax on Earnings' columns if there are assets assigned to this Goal. Investment Earnings are calculated on all assets after any withdrawals for 'Goal Expenses', 'Taxes on Withdrawals', and 'Tax Penalties' are subtracted. Taxes are calculated on the Investment Earnings of taxable assets, retirement income, and strategy income assigned to this Goal. Tax rates used are detailed in the Tax and Inflation Options page. Tax Penalties can occur when Qualified and Tax-Deferred Assets are used prior to age 59½. If there is a value in this column, it illustrates that you are using your assets in this Plan in a manner that may incur tax penalties. Generally, it is better to avoid tax penalties whenever possible. Other Additions come from items entered in the Other Assets section as well as any stock option or restricted stock proceeds, retirement income or strategy income assigned to this goal. These calculations do not incorporate penalties associated with use of 529 Plan withdrawals for non-qualified expenses. When married, ownership of qualified assets is assumed to roll over to the surviving co-client at the death of the original owner. It is also assumed the surviving co-client inherits all assets of the original owner. The For Tax on Withdrawals column represents any taxes from taxable assets' untaxed gain used to fund goals in that year as well as any taxes on withdrawals from tax-deferred or qualified assets to fund goals in that year. Taxes due on Required Minimum Distributions are included in the calculations but are not illustrated separately. Page 62 of 157

69 Worksheet Detail - Retirement Distribution Cash Flow Chart Scenario : Optimized using Average Returns Year Age (Tom / Jane) Retirement and Strategy Income Assign To / / / 66 Pension Income Fund All Goals 18, 18, 18, 18, 18, 18, 18, 18, Social Security - Tom Fund All Goals 5,592 51,857 53,154 54,483 Social Security - Jane Fund All Goals 51,543 52,832 Variable Annuity with GMWB Fund All Goals 6, 6,12 6,24 6,36 6,48 6,6 6,72 6,84 Total Retirement and Strategy Income Other Additions Assign To / / / / / 71 24, 24,12 24,24 24,36 75,72 76, , ,154 Inheritance from Jane's Mom Fund All Goals 25, Variable Annuity with GMWB Fund All Goals Whole Life Fund All Goals Total Other Additions 25, Investment Earnings 74,178 72,751 7,561 67,433 79,22 79,458 81,55 83,458 Total Income and Earnings 98,178 96,871 94,81 91,793 44, ,915 21, ,612 Cash Used To Fund Goals Estimated % Funded Retirement - Living Expense 1% 15,513 92,775 95,95 97,472 99,99 12,47 14,967 17,591 Health Care 1% 1,799 17,322 18,448 19,647 2,924 22,285 23,733 25,276 Sedan 1% 33,942 Travel 1% 11,314 11,597 11,887 12,184 12,489 12,81 13,121 13,449 Sports Car 1% 33,942 College - Jacob 1% Kitchen Remodel 1% 31,222 Total Goal Funding (195,511) (121,695) (125,43) (129,34) (164,544) (137,492) (141,821) (146,316) Total Taxes and Tax Penalty (2,751) (1,949) (11,6) (21,938) (13,526) (13,47) (3,646) (31,782) Cash Surplus/Deficit (Net Change in Portfolio) (1,84) (26,773) (42,229) (59,448) 226,223 4,953 38,454 37,515 Portfolio Value Page 63 of 157

70 Worksheet Detail - Retirement Distribution Cash Flow Chart Scenario : Optimized using Average Returns Year Age (Tom / Jane) Future Dollars / / / 66 Beginning Value 1,53,689 1,43,65 1,43,832 1,361,63 1,32,155 1,528,378 1,533,331 1,571,785 Cash Surplus/Deficit (1,84) (26,773) (42,229) (59,448) 226,223 4,953 38,454 37,515 Investment Asset Additions Ending Value 1,43,65 1,43,832 1,361,63 1,32,155 1,528,378 1,533,331 1,571,785 1,69,3 Current Dollars Ending Value 1,233,66 1,18,995 1,117,531 1,42,673 1,193,967 1,168,62 1,168,71 1,167,419 Cash Surplus/Deficit (86,32) (22,523) (34,659) (47,62) 176,725 3,775 28,593 27, / / / / / 71 Taxes Total Taxes 2,751 1,949 11,6 21,938 13,526 13,47 3,646 31,782 Tax Penalty Federal Marginal Tax Rate 1.% 1.% 15.% 25.% 15.% 15.% 25.% 25.% State Marginal and Local Tax Rate 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% Estimated Required Minimum Distribution (RMD) Tom 23,11 24,279 25,55 26,789 Jane 23,69 24,237 Adjusted Portfolio Value 1,53,689 1,43,65 1,43,832 1,361,63 1,552,155 1,528,378 1,533,331 1,571,785 Portfolio Withdrawal Rate 11.38% 6.96% 8.3% 9.32% 6.64% 4.87% 2.81% 2.92% Page 64 of 157

71 Worksheet Detail - Retirement Distribution Cash Flow Chart Scenario : Optimized using Average Returns Year Age (Tom / Jane) Retirement and Strategy Income Assign To / / / 74 Pension Income Fund All Goals 18, 18, 18, 18, 18, 18, 18, 18, Social Security - Tom Fund All Goals 55,845 57,241 58,672 6,139 61,642 63,183 64,763 66,382 Social Security - Jane Fund All Goals 54,152 55,56 56,894 58,316 59,774 61,268 62,8 64,37 Variable Annuity with GMWB Fund All Goals 6,96 7,8 7,2 7,32 7,44 7,56 7,68 7,8 Total Retirement and Strategy Income Other Additions Assign To / / / / / , ,827 14, , ,856 15,11 153, ,552 Inheritance from Jane's Mom Fund All Goals Variable Annuity with GMWB Fund All Goals Whole Life Fund All Goals Total Other Additions Investment Earnings 78,883 78,366 77,497 76,7 77,4 77,788 78,42 79,723 Total Income and Earnings 213,84 216, , , ,86 227,8 231, ,275 Cash Used To Fund Goals Estimated % Funded Retirement - Living Expense 1% 11, ,38 115, ,76 121, , , ,89 Health Care 1% 26,919 28,668 3,532 32,516 34,63 36,881 39,278 41,831 Sedan 1% 41,355 Travel 1% 13,785 14,13 14,483 14,845 15,216 15,597 15,987 Sports Car 1% 41,355 College - Jacob 1% 35,766 38,153 4,69 43,385 Kitchen Remodel 1% Total Goal Funding (269,461) (193,989) (21,568) (29,56) (171,576) (177,25) (183,157) (172,921) Total Taxes and Tax Penalty (31,193) (31,776) (32,994) (37,658) (34,333) (35,485) (36,713) (38,147) Cash Surplus/Deficit (Net Change in Portfolio) (86,814) (9,572) (16,3) (27,319) 17,952 15,64 11,775 25,27 Portfolio Value Page 65 of 157

72 Worksheet Detail - Retirement Distribution Cash Flow Chart Scenario : Optimized using Average Returns Year Age (Tom / Jane) Future Dollars / / / 74 Beginning Value 1,69,3 1,522,486 1,512,914 1,496,614 1,469,295 1,487,247 1,52,311 1,514,86 Cash Surplus/Deficit (86,814) (9,572) (16,3) (27,319) 17,952 15,64 11,775 25,27 Investment Asset Additions Ending Value 1,522,486 1,512,914 1,496,614 1,469,295 1,487,247 1,52,311 1,514,86 1,539,293 Current Dollars Ending Value 1,77,55 1,44,615 1,8, , , , ,3 916,474 Cash Surplus/Deficit (61,441) (6,69) (1,98) (17,954) 11,51 9,423 7,186 15, / / / / / 79 Taxes Total Taxes 31,193 31,776 32,994 37,658 34,333 35,485 36,713 38,147 Tax Penalty Federal Marginal Tax Rate 25.% 25.% 25.% 25.% 25.% 25.% 25.% 25.% State Marginal and Local Tax Rate 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% Estimated Required Minimum Distribution (RMD) Tom 28,133 29,539 31,1 32,395 33,995 35,484 37,21 38,66 Jane 25,461 26,742 28,84 29,488 3,956 32,339 33,936 35,422 Adjusted Portfolio Value 1,69,3 1,522,486 1,512,914 1,496,614 1,469,295 1,487,247 1,52,311 1,514,86 Portfolio Withdrawal Rate 1.3% 5.78% 6.2% 6.91% 4.2% 4.22% 4.43% 3.6% Page 66 of 157

73 Worksheet Detail - Retirement Distribution Cash Flow Chart Scenario : Optimized using Average Returns Year Age (Tom / Jane) Retirement and Strategy Income Assign To / / / 82 Pension Income Fund All Goals 18, 18, 18, 18, 18, 18, 18, 18, Social Security - Tom Fund All Goals 68,41 69,742 71,486 73,273 75,15 76,982 78,97 8,88 Social Security - Jane Fund All Goals 65,979 67,629 69,32 71,53 72,829 74,65 76,516 78,429 Variable Annuity with GMWB Fund All Goals 7,92 8,4 8,16 8,28 8,4 8,52 8,64 8,76 Total Retirement and Strategy Income Other Additions Assign To / / / / / , , ,965 17,65 174, , ,63 186,68 Inheritance from Jane's Mom Fund All Goals Variable Annuity with GMWB Fund All Goals Whole Life Fund All Goals Total Other Additions Investment Earnings 75,437 76,235 76,836 77,221 77,367 77,252 76,849 76,132 Total Income and Earnings 235, , ,82 247, ,7 255,43 258, ,2 Cash Used To Fund Goals Estimated % Funded Retirement - Living Expense 1% 134, , , , , ,23 155, ,72 Health Care 1% 44,55 47,446 5,53 53,814 57,312 61,38 65,5 69,23 Sedan 1% 5,387 Travel 1% Sports Car 1% 5,387 College - Jacob 1% Kitchen Remodel 1% Total Goal Funding (279,692) (185,172) (191,699) (198,513) (25,628) (213,61) (22,829) (228,95) Total Taxes and Tax Penalty (37,921) (39,34) (4,786) (42,163) (43,545) (44,833) (46,97) (47,327) Cash Surplus/Deficit (Net Change in Portfolio) (82,235) 15,135 11,317 7,151 2,527 (2,49) (8,14) (14,76) Portfolio Value Page 67 of 157

74 Worksheet Detail - Retirement Distribution Cash Flow Chart Scenario : Optimized using Average Returns Year Age (Tom / Jane) Future Dollars / / / 82 Beginning Value 1,539,293 1,457,58 1,472,192 1,483,59 1,49,66 1,493,188 1,49,697 1,482,683 Cash Surplus/Deficit (82,235) 15,135 11,317 7,151 2,527 (2,49) (8,14) (14,76) Investment Asset Additions Ending Value 1,457,58 1,472,192 1,483,59 1,49,66 1,493,188 1,49,697 1,482,683 1,468,67 Current Dollars Ending Value 846, ,287 82,196 84,48 785, , , ,651 Cash Surplus/Deficit (47,768) 8,577 6,257 3,857 1,33 (1,279) (4,14) (6,879) / / / / / 87 Taxes Total Taxes 37,921 39,34 4,786 42,163 43,545 44,833 46,97 47,327 Tax Penalty Federal Marginal Tax Rate 25.% 25.% 25.% 25.% 25.% 25.% 25.% 25.% State Marginal and Local Tax Rate 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% Estimated Required Minimum Distribution (RMD) Tom 4,238 41,914 43,632 45,82 46,532 47,974 49,398 5,793 Jane 36,957 38,539 4,168 41,841 43,557 45,4 46,451 47,891 Adjusted Portfolio Value 1,539,293 1,457,58 1,472,192 1,483,59 1,49,66 1,493,188 1,49,697 1,482,683 Portfolio Withdrawal Rate 1.24% 4.19% 4.45% 4.72% 5.2% 5.34% 5.69% 6.8% Page 68 of 157

75 Worksheet Detail - Retirement Distribution Cash Flow Chart Scenario : Optimized using Average Returns Year Age (Tom / Jane) Retirement and Strategy Income Assign To / 88 Pension Income Fund All Goals 18, 9, 9, 9, 9, 9, Social Security - Tom Fund All Goals 82,92 Social Security - Jane Fund All Goals 8,389 84,974 87,98 89,276 91,58 93,796 Variable Annuity with GMWB Fund All Goals 8,88 Total Retirement and Strategy Income Other Additions Assign To / / / / / 93 19,171 93,974 96,98 98,276 1,58 12,796 Inheritance from Jane's Mom Fund All Goals Variable Annuity with GMWB Fund All Goals 66,9 Whole Life Fund All Goals 1, Total Other Additions 166,9 Investment Earnings 75,77 82,158 8,255 78,13 75,49 72,417 Total Income and Earnings 265, , , , , ,213 Cash Used To Fund Goals Estimated % Funded Retirement - Living Expense 1% 163, , ,15 134, ,79 141,235 Health Care 1% 73,73 38,689 41,24 43,882 46,735 49,773 Sedan 1% Travel 1% Sports Car 1% College - Jacob 1% Kitchen Remodel 1% Total Goal Funding (237,443) (166,641) (172,355) (178,312) (184,525) (191,7) Total Taxes and Tax Penalty (48,37) (4,121) (4,689) (41,165) (41,532) (41,769) Cash Surplus/Deficit (Net Change in Portfolio) (2,566) 135,38 (36,69) (43,188) (5,14) (57,564) Portfolio Value Page 69 of 157

76 Worksheet Detail - Retirement Distribution Cash Flow Chart Scenario : Optimized using Average Returns Year Age (Tom / Jane) Future Dollars / 88 Beginning Value 1,468,67 1,448,41 1,583,421 1,546,731 1,53,544 1,453,44 Cash Surplus/Deficit (2,566) 135,38 (36,69) (43,188) (5,14) (57,564) Investment Asset Additions Ending Value 1,448,41 1,583,421 1,546,731 1,53,544 1,453,44 1,395,84 Current Dollars Ending Value 69, ,473 71, , , ,167 Cash Surplus/Deficit (9,84) 62,967 (16,649) (19,119) (21,656) (24,256) / / / / / 93 Taxes Total Taxes 48,37 4,121 4,689 41,165 41,532 41,769 Tax Penalty Federal Marginal Tax Rate 25.% 25.% 25.% 25.% 25.% 25.% State Marginal and Local Tax Rate 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% Estimated Required Minimum Distribution (RMD) Tom 51,687 Jane 49,312 97,946 99,669 11,218 12,558 13,652 Adjusted Portfolio Value 1,468,67 1,614,5 1,583,421 1,546,731 1,53,544 1,453,44 Portfolio Withdrawal Rate 6.51% 6.99% 7.39% 7.84% 8.35% 8.94% Page 7 of 157

77 Worksheet Detail - Retirement Distribution Cash Flow Chart Scenario : Optimized using Average Returns Notes Additions and withdrawals occur at the beginning of the year. The Income section includes Retirement Income, Strategy Income, Stock Options, Restricted Stock, Other Assets, proceeds from Insurance Policies, and any remaining asset value after 72(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 the Plan. When married, if either Social Security Program Estimate or Use This Amount and Evaluate Annually is selected for a participant, the program will default to the greater of the selected benefit or the age adjusted spousal benefit based on the other participant's benefit. Strategy Income is based on the particulars of the Goal Strategies selected. Strategy Income from immediate annuities, 72(t) distributions, and variable annuities with a guaranteed minimum withdrawal benefit (GMWB) is pre-tax. Strategy Income from Net Unrealized Appreciation (NUA) is after-tax. Stock Options and Restricted Stock values are after-tax. Income from Other Assets and proceeds from Insurance Policies are after-tax values. Any remaining asset value after 72(t) distributions have been completed is a pre-tax value. Investment Earnings are calculated on all assets after any withdrawals for funding goals, taxes on 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 Goals section of the chart. 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 on withdrawals from taxable assets' untaxed gain used to fund Goals in that year, (5) taxes on withdrawals from tax-deferred or qualified assets used to fund goals in that year, and (6) taxes on the investment earnings of taxable assets. Tax rates used are detailed in the Tax and Inflation Options page. (Please note, the Total Taxes do not include any taxes owed from the exercise of Stock Options or the vesting of Restricted Stock.) Tax Penalties can occur when Qualified and Tax-Deferred Assets are used prior to age 59½. If there is a value in this row, it illustrates that you are using your assets in this Plan in a manner that 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. This value 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 Ending Value 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/Deficit in Future Dollars by the Base Inflation Rate for this Plan. These calculations do not incorporate penalties associated with use of 529 Plan withdrawals for non-qualified expenses. When married, ownership of qualified assets is assumed to roll over to the surviving co-client at the death of the original owner. It is also assumed the surviving co-client inherits all assets of the original owner. Portfolio Withdrawal Rate (%) is the percentage withdrawn from the investment portfolio to cover cash deficits. Page 71 of 157

78 Worksheet Detail - Retirement Distribution Cash Flow Graphs Scenario : Optimized using Average Returns This graph shows the ending portfolio value for each year, from retirement through the End of the Plan. Amounts are shown in future dollars. The Ending Portfolio Values are estimates based on all the assumptions that you have included in this Plan. Page 72 of 157

79 Worksheet Detail - Retirement Distribution Cash Flow Graphs Scenario : Optimized using Average Returns This graph shows the cash surplus or cash deficit year-by-year, from retirement through the End of the Plan. Amounts are shown in future dollars. Notes The Annual Cash Surplus/Deficit Graph illustrates the change in Ending Portfolio Values from one year to the next. If there is a surplus, the estimated Ending Portfolio Value is greater than the Value in the past year. If there is a deficit, the estimated Ending Portfolio Value is less than the Value in past year. If there is no bar graph shown, it indicates that the Ending Portfolio Value is zero, which means that the entire portfolio has been spent. Page 73 of 157

80 Worksheet Detail - Cash Used to Fund Goals Scenario : Optimized using Average Returns This graph shows the amounts available to fund each Goal from retirement through the End of the Plan. In each year, the amount available includes the portfolio principal, retirement income, investment earnings, and any lump-sum additions to the portfolio. All amounts are in after-tax, future dollars. Notes The value shown for each goal is the amount available to fund the goal, based on all the assumptions that you have included in this Plan. In any year, this value can be less than the amount you specified for the goal expense. This graph does not indicate whether or not you have a goal shortfall in any year. Rather, it shows the amount of the goal expense that was funded, assuming that you execute all aspects of the Plan as you have indicated. Goals are funded in the order specified in the Plan. Page 74 of 157

81 Worksheet Detail - Sources of Income and Earnings Scenario : Optimized using Average Returns This graph shows the income sources and earnings available in each year from retirement through the End of the Plan. Notes Sources of Income can include Retirement Income, Strategy Income, Stock Options, Restricted Stock, 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, taxes on withdrawals, and tax penalties, if applicable, are subtracted. All Retirement Income, Immediate Annuity Strategy Income, 72(t) Strategy Income, the remaining asset value after 72(t) distributions, Strategy income from Variable Annuities with a guaranteed minimum withdrawal benefit (GMWB), and Investment Earnings are pre-tax, future values. NUA Strategy Income, Stock Options, Restricted Stock, Other Assets, and proceeds from Insurance Policies are after-tax future values. When married, if either Social Security Program Estimate or Use This Amount and Evaluate Annually is selected for a participant, the program will default to the greater of the selected benefit or the age adjusted spousal benefit based on the other participant's benefit. Page 75 of 157

82 Worksheet Detail - Inside the Numbers Final Result Inside the Numbers - Final Result For Optimized The graph below shows the results for all 1 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 9%. (75% - 9%) In the table below, the 99th, 75th, 5th, 25th and 1st percentile trials are shown based on the End of Plan Value. For each trial displayed, the corresponding portfolio value is illustrated for specific years of the plan. These trials serve as checkpoints to illustrate how the 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 1 Year 15 Year 2 Year 25 End of Plan Year Money Goes to $ 1 $2,245,412 $3,61,165 $3,86,742 $5,388,644 $7,136,663 $1,998, $1,331,956 $1,364,598 $2,55,132 $2,34,558 $2,73,698 $3,528,323 5 $1,18,815 $1,278,831 $1,118,718 $1,774,929 $2,241,391 $1,865, $1,422,619 $1,65,944 $1,343,537 $862,422 $959,377 $67, $1,22,866 $894,743 $434,137 $12,456 $ $ 237 Page 76 of 157

83 Worksheet Detail - Allocation Comparison Scenario: Optimized These charts compare your Current Portfolio with the Target Portfolio you selected and show the allocation changes for you to consider. Current Portfolio Projected Returns 5.89% Total Return 5.46% 2.5% Base Inflation Rate 2.5% 3.39% Real Return 2.96% 13.21% Standard Deviation 1.59% Bear Market Returns -3% Great Recession -21% 8% Bond Bear Market 4% Target Portfolio Balanced II Portfolio Comparison with Allocation Changes Current Amount % of Total Asset Class % of Total Target Amount Increase / Decrease $95,25 11% Cash & Cash Alternatives 4% $36,284 -$58,966 $77,25 9% Short Term Bonds 26% $235,843 $158,593 $63,5 7% Intermediate Term Bonds 16% $145,134 $81,634 $65,75 7% Long Term Bonds % $ -$65,75 $21,696 23% Large Cap Value Stocks 23% $28,63 -$2,66 $153,83 17% Large Cap Growth Stocks 14% $126,992 -$26,91 $162,81 18% Mid Cap Stocks % $ -$162,81 $47,25 5% Small Cap Stocks 6% $54,425 $7,175 $15,75 2% International Developed Stocks 11% $99,78 $84,3 $15,75 2% International Emerging Stocks % $ -$15,75 $ % Unclassified % $ $ $97,89 $97,89 $ Page 77 of 157

84 Worksheet Detail - Allocation Comparison Scenario: Optimized Effect of Investment Strategies Current Value $97,89 $13, $1,1,89 Changes to the Investable Assets Target Value Total Investment Portfolio $97,89 Current GMWB Investment Strategies $13, Total Investment Assets $1,1,89 Page 78 of 157

85 Worksheet Detail - Reallocation Detail Scenario: Optimized Description Cash & Cash Alternatives Short Term Bonds Intermediate Term Bonds Long Term Bonds Large Cap Value Stocks Large Cap Growth Stocks Mid Cap Stocks Small Cap Stocks International Developed Stocks International Emerging Stocks Unclassified Total Value Brokerage Account Google, Inc. $28,83 International Business Machines Corp $83,446 Valspar Corporation $16,56 Jane's 43(b) Account Total $47,25 $31,5 $31,5 $31,5 $47,25 $47,25 $47,25 $15,75 $15,75 Tom's 41(k) Qualified Total $41,25 $41,25 $27,5 $27,5 $68,75 $68,75 Roth Total $6,75 $4,5 $4,5 $6,75 $11,25 $9, $2,25 $28,83 $83,446 $16,56 $315, $275, $45, Total Current Portfolio : $95,25 $77,25 $63,5 $65,75 $21,696 $153,83 $162,81 $47,25 $15,75 $15,75 $ $97,89 Increase / Decrease : -$58,966 $158,593 $81,634 -$65,75 -$2,66 -$26,91 -$162,81 $7,175 $84,3 -$15,75 $ $ Total Target Portfolio : $36,284 $235,843 $145,134 $ $28,63 $126,992 $ $54,425 $99,78 $ $ $97,89 Percent of Total Value : 4% 26% 16% % 23% 14% % 6% 11% % % 1% Page 79 of 157

86 Worksheet Detail - Bear Market Test Bear Market Test for Optimized Likelihood of Reaching Goals After Loss of 21% - Using All Assets to Fund Goals by Importance Needs Only Needs & Wants Only Needs, Wants, & Wishes Needs 1 - Retirement - Living Expense 1 - Health Care 8 - Sedan Wants 7 - Travel 5 - Sports Car Wishes 3 - College - Jacob 1 - Kitchen Remodel Goals This test assumes your investment allocation matches the Balanced II portfolio. If your investments suffered a loss of 21% this year, your portfolio value would be reduced by $19,489. This is the approximate loss sustained by a portfolio with a similar percentage of stocks, bonds, cash, and alternative during the Great Recession, which lasted from November 27 through February 29. These results show the likelihood you would be able to fund your Needs, Wants and Wishes after experiencing this loss. Page 8 of 157

87 Worksheet Detail - Special Asset Test Special Asset Test for Optimized Likelihood of Funding Goals Low Expected High Description When Sold Future Amounts Low Expected High Variable Annuity with GMWB at Tom's retirement $6, $6, $7, Inheritance from Jane's Mom in 225 $ $25, $3, It is often difficult to predict the value that will be received from the sale of assets in the future. This creates a hidden risk to your plan. These results show your Probability of Success using the three estimates you provided for the amount of after-tax cash you might receive from the sale of each Special Asset shown in the table. For each result calculated, all assets are assumed to receive the Low, Expected or High amount. All other assumptions in the plan remain unchanged. There is a Risk that you will receive the Low values (or less than the Low values). If this causes your Probability of Success to fall below your Confidence Zone, you should consider what adjustments might be necessary. Page 81 of 157

88 Worksheet Detail - Concentrated Position Test Are You Taking a Greater Risk Than You Realize? Concentrated Position Test for Optimized When you have over 1% of your portfolio invested in single securities (i.e. stocks, including restricted stock and stock options, or bonds), it is treated in this analysis as a Concentrated Position. The information you provided indicates you have a Concentrated Position, as shown below. Holding a Concentrated Position subjects you to investment risk that is not reflected in the volatility assumptions used in your Plan. While the returns for a well-diversified portfolio will usually move up and down with the economy and market in general, your investment in any single stock or bond could suddenly lose most, or even all, of its value, often with little or no warning, due to factors unique to that specific security. The purpose of this analysis is to demonstrate what it would mean to your Plan if a security in which you have a Concentrated Position suddenly lost 5% or 1% of its value. Could you still attain your Goals, or are you putting your future at risk? You have $16,56 invested in VAL. If it suffered a major loss, how would it affect the Probability of Success for your Goals? Results after 5% Loss Security Symbol VAL Value $16,56 % of Portfolio 17.7% Results after 1% Loss Additional Employment Risk If you have a Concentrated Position in the stock of the company where you are employed, you have even more risk. If your employer gets into trouble, not only will the value of your stock fall, you also could lose your source of income. Additional Concentration Individual securities positions held within mutual funds or variable annuity subaccounts are not considered in this analysis. If you own mutual funds or subaccounts containing this security, your concentrated position and risk of loss are higher than indicated in this analysis. Page 82 of 157

89 Worksheet Detail - Risk/Reward Risk Based Portfolio Portfolio used in Optimized Both before and during Retirement with same portfolio Risk / Reward for Optimized Probability of Success Results Safety Margin (Current Dollars) Great Recession Return Bear Market Loss Bond Bear Market Return Capital Preservation I 8% $196,253-4% -2% Capital Preservation II 83% $346,445-1% 1% Balanced I 84% $444,2-15% 2% Balanced II 84% $588,167-21% 4% Total Return I 85% $748,498-26% 6% Current 82% $788,161-3% 8% Total Return II 84% $99,812-33% 9% Capital Growth I 83% $1,24,316-39% 11% Capital Growth II 82% $1,56,868-45% 12% Equity Growth 81% $1,785,876-51% 15% Page 83 of 157

90 Worksheet Detail - Social Security Analysis Social Security Analysis for Optimized Social Security Strategy Selected Strategy As Soon As Possible At Retirement At FRA At Age 7 Tom begins at age 7 and Jane begins at FRA Start age Tom Jane First year benefit in current dollars Tom Jane Total lifetime benefit in current dollars 7 7 $4,511 $39, $ $ $3,69 $25, $3,69 $3, $4,511 $39, $4,511 $3,69 $1,799,662 $1,246,781 $1,56,75 $1,626,57 $1,799,662 $1,759,151 Probability of success 84% 57% 76% 78% 84% 83% Break Even Point Tom Jane N/A N/A Page 84 of 157

91 Worksheet Detail - Social Security Analysis Social Security Analysis for Optimized Notes Selected Strategy: This is the strategy you selected. At FRA: You apply for and begin retirement benefits at your Full Retirement Age (FRA), which is determined by your date of birth. If the retirement age you specified is after your FRA, we assume you will begin benefits at FRA, and we will adjust the benefit for inflation until your retirement age. At Retirement: You apply for and begin retirement benefits at the retirement age shown. The benefit is automatically adjusted to account for excess earnings from part-time work and/or taking benefits prior to your FRA, if either is applicable. As soon as possible: You apply for and begin benefits at the later of your current age or age 62. The benefit is automatically adjusted to account for excess earnings from part-time work, if applicable, and taking benefits prior to your FRA. If you are age 62 or older, this option is not available. At age 7: You apply for and begin benefits at age 7. (Higher Wage Earner) begins at age 7 and (Lower Wage Earner) begins at FRA: This strategy is available only if you are married. The higher wage earner applies for and begins benefits at age 7. The lower wage earner applies for and begins benefits at his/her FRA. The higher/lower wage earners are determined based on the employment incomes you specified. (Higher Wage Earner) files/suspends and (Lower Wage Earner) restricted application: This strategy is available only if you are married. The higher wage earner applies for and suspends taking benefits until age 7. The higher wage earner can file at or after his/her FRA, at which time the spouse (the lower wage earner) files for and takes spousal benefits. The spouse then files for and begins his/her own benefit at age 7, at the higher benefit amount. The lower wage earner makes a restricted application at his/her FRA. Restricted application allows the account holder to apply only for the "spousal benefit" s/he would be due under dual entitlement rules. At any age beyond his/her FRA, the lower wage earner can apply for and receive benefits based on his/her own work history. (Lower Wage Earner) files/suspends and (Higher Wage Earner) restricted application: This strategy is available only if you are married. The lower wage earner applies for and suspends taking benefits until age 7. The lower wage earner can file at or after his/her FRA, at which time the spouse (the higher wage earner) files for and takes spousal benefits. The spouse then files for and begins his/her own benefit at age 7, at the higher benefit amount. The higher wage earner makes a restricted application at his/her FRA. Restricted application allows the account holder to apply only for the "spousal benefit" s/he would be due under dual entitlement rules. At any age beyond his/her FRA, the higher wage earner can apply for and receive benefits based on his/her own work history. Maximized Benefits: This is the strategy that provides the highest estimate of lifetime Social Security income, assuming you 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 benefits using 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, the break even comparison uses the strategy that begins at the earliest age(s) as the baseline for comparison. Page 85 of 157

92 Worksheet Detail - Social Security Combined Details Social Security Combined Details for Optimized Year Ages/Event Tom Jane Year Ages/Event Tom Jane / 68 $5, / 69 $51, / 7 $53,154 $51, / 71 $54,483 $52, / 72 $55,845 $54, / 73 $57,241 $55,56 76 / 74 $58,672 $56, / 75 $6,139 $58, / 76 $61,642 $59, / 77 $63,183 $61,268 8 / 78 $64,763 $62,8 81 / 79 $66,382 $64,37 82 / 8 $68,41 $65, / 81 $69,742 $67, / 82 $71,486 $69,32 85 / 83 $73,273 $71,53 86 / 84 $75,15 $72, / 85 $76,982 $74, / 86 $78,97 $76, / 87 $8,88 $78, Tom's Plan Ends $82,92 $8, / 89 $84, / 9 $87, / 91 $89, / 92 $91,58 25 Notes Jane's Plan Ends $93,796 Assumption for Cost of Living Adjustment (COLA) is 2.5% annually. Page 86 of 157

93 Worksheet Detail - Allocation Detail by Asset Class by Holding Scenario: Optimized Holding Account Current Portfolio Target Portfolio % $ % $ Difference Cash & Cash Alternatives 1.5% $95,25 4% $36,284 -$58,966 Account Total Jane's 43(b) $47,25 Qualified Total Tom's 41(k) $41,25 Roth Total Tom's 41(k) $6,75 Short Term Bonds 8.52% $77,25 26% $235,843 $158,593 Account Total Jane's 43(b) $31,5 Qualified Total Tom's 41(k) $41,25 Roth Total Tom's 41(k) $4,5 Intermediate Term Bonds 7.% $63,5 16% $145,134 $81,634 Account Total Jane's 43(b) $31,5 Qualified Total Tom's 41(k) $27,5 Roth Total Tom's 41(k) $4,5 Long Term Bonds 7.25% $65,75 -$65,75 Account Total Jane's 43(b) $31,5 Qualified Total Tom's 41(k) $27,5 Roth Total Tom's 41(k) $6,75 Large Cap Value Stocks 23.23% $21,696 23% $28,63 -$2,66 International Business Machines Corp Brokerage Account $83,446 Account Total Jane's 43(b) $47,25 Qualified Total Tom's 41(k) $68,75 Roth Total Tom's 41(k) $11,25 Large Cap Growth Stocks 16.88% $153,83 14% $126,992 -$26,91 Google, Inc. Brokerage Account $28,83 Account Total Jane's 43(b) $47,25 Qualified Total Tom's 41(k) $68,75 Roth Total Tom's 41(k) $9, Page 87 of 157

94 Worksheet Detail - Allocation Detail by Asset Class by Holding Scenario: Optimized Holding Account Current Portfolio Target Portfolio % $ % $ Difference Mid Cap Stocks 17.95% $162,81 -$162,81 Valspar Corporation Brokerage Account $16,56 Roth Total Tom's 41(k) $2,25 Small Cap Stocks 5.21% $47,25 6% $54,425 $7,175 Account Total Jane's 43(b) $47,25 International Developed Stocks 1.74% $15,75 11% $99,78 $84,3 Account Total Jane's 43(b) $15,75 International Emerging Stocks 1.74% $15,75 -$15,75 Account Total Jane's 43(b) $15,75 Page 88 of 157

95 Worksheet Detail - Portfolio Changes Scenario: Optimized Asset Class Group Current Portfolio Target Portfolio $ % $ % $ Difference Cash $95,25 11% $36,284 4% -$58,966-7% Bond $26,5 23% $38,977 42% $174,477 19% Stock $65,339 67% $489,828 54% -$115,511-13% Alternative $ % Unclassified $ % Total: $97,89 1% $97,89 1% Effect of Investment Strategies % Current Value $97,89 $13, $1,1,89 Changes to the Investable Assets Target Value Total Investment Portfolio $97,89 Current GMWB Investment Strategies $13, Total Investment Assets $1,1,89 Page 89 of 157

96 Plan Summary

97 Plan Summary Reaching Your Goals Status Net Worth Assets Liabilities Net Worth $1,575,89 $171, $1,44,89 Results If you implement the following suggestions, there is a 84% likelihood of funding all of the Financial Goals in your Plan. Page 9 of 157

98 Plan Summary Goals Plan to reduce your Total Goal Spending to $3,75,34 which is $151,24, or 5%, less than your Target. Tom retires at age 66, in the year 221. This is 1 year(s) later than your retirement age. Jane retires at age 64, in the year 221. This is 1 year(s) later than your retirement age. Your recommended scenario assumes when you are both retired you will spend $95, for annual living expenses. Tom enrolls in Medicare at age 66, in the year 221. Jane enrolls in Medicare at age 65, in the year 222. At Jane's retirement your recommended scenario assumes you withdraw $3, per occurrence for your Sedan goal. When both are retired your recommended scenario assumes you withdraw $1, per occurrence for your Travel goal. At Tom's retirement your recommended scenario assumes you withdraw $3, per occurrence for your Sports Car goal. Your recommended scenario assumes you provide college funding for Jacob of $2, for 4 years. This amount is based on the estimated cost you provided. In 225 your recommended scenario assumes you withdraw $25, for your Kitchen Remodel goal. Page 91 of 157

99 Plan Summary Goal Amount Changes Needs 1 Retirement - Living Expense Both Retired $95, Jane Alone Retired $76, 1 Health Care Tom Medicare / Jane Retired Before Medicare $7,882 Both Medicare $11,872 Jane Alone Medicare $5,849 8 Sedan $3, Starting At Jane's retirement Years between occurrences 8 Number of occurrences 3 Wants 7 Travel $1, Starting When both are retired Years between occurrences 1 Number of occurrences 15 5 Sports Car $3, Decreased $5, Starting At Tom's retirement Years between occurrences 8 Number of occurrences 3 Wishes 3 College - Jacob $2, Decreased $6,138 Years of School 4 Start Year Kitchen Remodel $25, Decreased $1, Starting 225 Page 92 of 157

100 Plan Summary Save and Invest Savings Status Consider the following changes in order to increase your savings by $22,96 to a total of $58,795 per year. Tom - Tom's 41(k): Change your qualified contribution from 5% of your salary to 15% of your salary. This will increase savings by $12,96. Included in this change, Tom's company will increase their contribution by $2,16. Make this change in 216. Increase taxable additions by $1,. Make this change in 216. Invest Your Portfolio should be re-allocated Investment Portfolio Asset Allocation Current Balanced II Changes Required to match Balanced II Asset Class Increase By Decrease By Cash & Cash Alternatives -$58,966 Short Term Bonds $158,593 Intermediate Term Bonds $81,634 Long Term Bonds -$65,75 Large Cap Value Stocks -$2,66 Large Cap Growth Stocks -$26,91 Mid Cap Stocks -$162,81 Small Cap Stocks $7,175 International Developed Stocks $84,3 International Emerging Stocks -$15,75 Total : $331,433 -$331,433 Concentrated Positions You have a Concentrated Position in the single securities as shown below. You should consider the additional risk this creates and the potential benefits (and associated costs) of diversifying these positions. Security Symbol $ Value % of Portfolio VAL $16,56 18 Page 93 of 157

101 Plan Summary Risk Management Life Your Life Insurance Needs Analysis indicates that your current amount of life insurance is not sufficient to protect your family in the event of premature death. Status Tom should consider purchasing $85, of additional life insurance. Advisor Will Take Action - 3/3/217 Jane should consider purchasing $75, of additional life insurance. Advisor Will Take Action - 3/3/217 Long Term Care Your Long Term Care Analysis shows a significant reduction to your portfolio if you have expenses related to a major health issue. For Tom, the estimated total cost for a Nursing Home Care is $762,926. For Jane the estimated total cost for Nursing Home Care is $857,224. There may be a significant risk to your plan if one of you has expenses related to a major health issue. In Virginia, the average cost for 3 years of Nursing Home Care is $84,315 annually. Consider a review of your current long-term care insurance to determine if you have adequate coverage. Advisor Will Take Action - 3/3/217 Estate Estate Strategies Your Estate Analysis indicates that if you both die at life expectancy, when Tom predeceases Jane there would be no Federal Estate Tax liability and when Jane predeceases Tom there would be no Federal Estate Tax liability. Status Consider reviewing your Estate Plan with an estate planning attorney to discuss methods to cover all or part of your Federal Estate Tax liability, to review your Estate documents (including your Will, Medical Directive, and Power of Attorney) and to review the ownership of existing life insurance policies. Banking Mortgage Managing your mortgage is a critical component of your overall plan. Consider refinancing to a 15 year fixed rate mortgage from your current rate of 7.25%. Today's rate is 3.375%, which could reduce your monthly payment by as much as $15. Status Client Will Take Action - 3/3/217 Page 94 of 157

102 Plan Summary Social Security Personal Information Your Full Retirement Age (FRA) is the age that you would receive 1% of your Primary Insurance Amount (PIA). Depending on the year you were born, your FRA is between years old. Taking benefits before or after your FRA will decrease or increase the amount you receive, respectively. Status Tom's FRA is 66 and months in 221. Jane's FRA is 66 and 6 months in 223. Your Primary Insurance Amount (PIA) is the benefit you would receive if you began benefits at your Full Retirement Age (FRA). It is calculated from the earnings on which you paid Social Security taxes, throughout your life. Tom's estimated annual PIA is $3,69 Jane's estimated annual PIA is $3,69 Strategy Information Tom files a normal application at 7 in 225. Jane files a normal application at 7 in 227. Using this strategy, your household's total lifetime benefit is estimated to be $1,799,662 in today's dollars, based upon the information you entered. For a better estimate, go to ssa.gov. Other Suggestions Other Next plan review meeting. Advisor Will Take Action - 3/3/217 Status Page 95 of 157

103 Star Track

104 Star Track Star Track History The Star Track History graph illustrates the progress you ve made toward attaining your Goals over time. Each bar reflects the projected results of your Recommended Plan, as recorded on the date indicated. Data in each bar can differ substantially in assets included, goal values, and other underlying data. Patterned bars, if shown, were created automatically and may reflect asset values that were not fully updated. The The shows the Probability of Success for your Recommended Scenario. shows the Probability of Success for your Current Scenario. Total Goal Spending The Total Goal Spending graph provides a quick view of how your Goals have changed over time. The graph plots the Total Goal Spending required to fund all of your Goals. Each set of data points corresponds to a bar in the Star Track History graph above. The The shows the Total Goal Spending for your Recommended Scenario. shows the Total Goal Spending for your Current Scenario. Net Worth and Investment Portfolio This graph shows your Net Worth and Investment Portfolio values at each date recorded. Star Track is not intended to track the performance of assets included in your Plan. Refer to official statements you receive from the product sponsor for accurate account values. Page 96 of 157

105 Assumptions

106 Explain Real Returns Your Real Return is what you have left from your Investment Earnings after taking into account the impact of Inflation. When you are planning to meet your Financial Goals, it is the Real Return that counts. Total Return : Inflation Rate : Real Return : Percentage (%) Growth of your Portfolio in one year. It's the number you always see. Percentage (%) increase in the cost of goods and services in one year. (usually called CPI) The Total Return of your Portfolio minus (-) the Inflation Rate. The Real Return reflects the increase in the real value of your Portfolio. It shows how much more goods and services you can buy at the end of one year with the investment earnings of your Portfolio. (Note, this is before deducting taxes.) Example : Portfolio value beginning of year : $1, Total Return you earn : 1% Total Investment Earnings : Portfolio value at end of year (in future dollars) : $1, $11, Inflation Rate for the year : (4%) Cost of Inflation : (This is how much extra you must pay for the same purchases.) Real value of your Portfolio at end of year (in today's dollars) : ($4,) $16, Real Return for the year equals : 6% Page 97 of 157

107 Risk Management

108 Life Insurance Needs Analysis Scenario : Optimized Life insurance can be an important source of funds for your family in the event of your premature death. In this section, we analyze whether there are sufficient investment assets and other resources to support your family if you were to die this year and, if there is a deficit, what additional life insurance may be required to provide the income needed by your survivors. If Tom Dies Living Expenses covered until Jane is 93 If Jane Dies Living Expenses covered until Tom is 9 $1,464,169 $45, $1,14,169 Life Insurance Needed Existing Life Insurance Additional Needed $1,21,23 $325, $876,23 Page 98 of 157

109 Life Insurance Needs Analysis Detail Scenario : Optimized Life Insurance If Tom Dies If Jane Dies $45, Existing Life Insurance $325, $ Additional Death Benefit $ Liabilities and Final Expenses If Tom Dies If Jane Dies $171, Debts Paid Off $171, $2, Final Expenses and Estate Taxes $2, $ Bequests $ $ Other Payments $ Living Expenses for Survivors Jane's Age Event Tom's Age 64 Retirement Plan Ends 9 If Tom Dies If Jane Dies $19,2 First Living Expense Annual Expense (current dollars, after-tax) $19,2 93 Cover expense until Co-Client is this age 9 Second Living Expense $ Annual Expense (current dollars, after-tax) $ Cover expense until Co-Client is this age Page 99 of 157

110 Life Insurance Needs Analysis Detail Scenario : Optimized Financial Goals Checked boxes indicate goals to be funded upon death. If Tom Dies Health Care Sedan Travel Sports Car College - Jacob Kitchen Remodel If Jane Dies Sell Other Assets If Tom Dies If Jane Dies $4, Amount of cash provided by sale of Assets (after tax) $ Your Assets that are not being sold to fund goals are listed below. Description Current Value Home $375, Sailboat $45, Vehicle $5, Checked boxes indicate Other Assets that will be included in this analysis and used to fund goals. If Tom Dies Inheritance from Jane's Mom Lump Sum Distribution If Jane Dies Stock Options and Restricted Stock Checked boxes indicate stock options to be included in Life Insurance. If Tom Dies Include Jane's Stock Options If Jane Dies Page 1 of 157

111 Life Insurance Needs Analysis Detail Scenario : Optimized Other Income (Income other than employment income) If Tom Dies $ Annual Other Income Amount $ No If Tom Dies (current dollars before tax) Will this amount inflate? If Jane Dies Include Amount Description Amount Include Tax Rate (Estimated average tax rate) $9, Pension Income $18, Use Program Estimate Federal State Local 18.% 5.75%.% No If Jane Dies Rate of Return Use Return in the Plan you selected Rate of Return 5.46% Dependents Name Date of Birth Age Relationship Daniel 11/12/ Both Are Parents Jessica 1/1/ Both Are Parents Jacob 5/15/211 5 Other Relationship Page 11 of 157

112 Disability Needs Analysis - Tom If Tom is Disabled Disability Insurance can provide an important source of funds during the time when you are unable to work due to a prolonged illness or injury. This section compares your income needs to your income sources for various disability periods. If there is an Income Shortfall, you may want to consider the purchase of a Disability Insurance Policy. Length of Disability Income Needed Employment Income Other Income Social Security Benefit Group* Insurance Personal Insurance Surplus or (Shortfall) 1 year(s) $22, $11, $ $ $ $ -$11, 2 year(s) $225,5 $112,75 $ $ $ $ -$112,75 5 year(s) $242,839 $121,419 $ $ $ $ -$121,419 * The benefit amount may include an after-tax portion that has been grossed up to reflect its pre-tax value. Page 12 of 157

113 Disability Needs Analysis - Tom If Tom is Disabled Refine Needs Analysis Social Security Do you want to include Social Security Disability Benefits in the analysis? No Income Needed (pre-tax, current dollars) During the first year During these years Month 1 $18,337 per month Year 2 $18,333 per month $22, per year Month 2 & 3 $18,333 per month Year 3-5 $18,333 per month $22, per year Month 4 & 5 $18,333 per month Year 6 to Age 65 $18,333 per month $22, per year Month 6-12 $18,333 per month Surplus or Shortfall During First Year All amounts in this table are monthly, pre-tax amounts. First Year - Month Income Needed Employment Income Other Income Social Security Benefit Group* Insurance Personal Insurance Surplus or (Shortfall) 1 $18,337 $9,167 $ $ $ $ -$9,17 2 $18,333 $9,167 $ $ $ $ -$9,166 3 $18,333 $9,167 $ $ $ $ -$9,166 4 $18,333 $9,167 $ $ $ $ -$9,166 5 $18,333 $9,167 $ $ $ $ -$9,166 6 $18,333 $9,167 $ $ $ $ -$9,166 7 $18,333 $9,167 $ $ $ $ -$9,166 8 $18,333 $9,167 $ $ $ $ -$9,166 9 $18,333 $9,167 $ $ $ $ -$9,166 1 $18,333 $9,167 $ $ $ $ -$9, $18,333 $9,167 $ $ $ $ -$9, $18,333 $9,167 $ $ $ $ -$9,166 * The benefit amount may include an after-tax portion that has been grossed up to reflect its pre-tax value. Page 13 of 157

114 Disability Needs Analysis - Tom If Tom is Disabled Surplus or Shortfall by Age All amounts in this table are annual, pre-tax amounts. Age Income Needed Employment Income Other Income Social Security Benefit Group* Insurance Personal Insurance Surplus or (Shortfall) 62 $225,5 $112,75 $ $ $ $ -$112,75 63 $231,137 $115,569 $ $ $ $ -$115, $236,916 $118,458 $ $ $ $ -$118, $242,839 $121,419 $ $ $ $ -$121,419 * The benefit amount may include an after-tax portion that has been grossed up to reflect its pre-tax value. Notes Disability benefits may be subject to an elimination period or benefit age cap. Income Needed is the amount you have indicated is necessary to maintain your standard of living during the disability period. Page 14 of 157

115 Disability Needs Analysis - Jane If Jane is Disabled Disability Insurance can provide an important source of funds during the time when you are unable to work due to a prolonged illness or injury. This section compares your income needs to your income sources for various disability periods. If there is an Income Shortfall, you may want to consider the purchase of a Disability Insurance Policy. Length of Disability Income Needed Employment Income Other Income Social Security Benefit Group* Insurance Personal Insurance Surplus or (Shortfall) 1 year(s) $22, $11, $ $ $ $ -$11, 2 year(s) $225,5 $112,75 $ $ $ $ -$112,75 5 year(s) $242,839 $121,419 $ $ $ $ -$121,419 7 year(s) $255,133 $127,566 $ $ $ $ -$127,566 * The benefit amount may include an after-tax portion that has been grossed up to reflect its pre-tax value. Page 15 of 157

116 Disability Needs Analysis - Jane If Jane is Disabled Refine Needs Analysis Social Security Do you want to include Social Security Disability Benefits in the analysis? No Income Needed (pre-tax, current dollars) During the first year During these years Month 1 $18,337 per month Year 2 $18,333 per month $22, per year Month 2 & 3 $18,333 per month Year 3-5 $18,333 per month $22, per year Month 4 & 5 $18,333 per month Year 6 to Age 65 $18,333 per month $22, per year Month 6-12 $18,333 per month Surplus or Shortfall During First Year All amounts in this table are monthly, pre-tax amounts. First Year - Month Income Needed Employment Income Other Income Social Security Benefit Group* Insurance Personal Insurance Surplus or (Shortfall) 1 $18,337 $9,167 $ $ $ $ -$9,17 2 $18,333 $9,167 $ $ $ $ -$9,166 3 $18,333 $9,167 $ $ $ $ -$9,166 4 $18,333 $9,167 $ $ $ $ -$9,166 5 $18,333 $9,167 $ $ $ $ -$9,166 6 $18,333 $9,167 $ $ $ $ -$9,166 7 $18,333 $9,167 $ $ $ $ -$9,166 8 $18,333 $9,167 $ $ $ $ -$9,166 9 $18,333 $9,167 $ $ $ $ -$9,166 1 $18,333 $9,167 $ $ $ $ -$9, $18,333 $9,167 $ $ $ $ -$9, $18,333 $9,167 $ $ $ $ -$9,166 * The benefit amount may include an after-tax portion that has been grossed up to reflect its pre-tax value. Page 16 of 157

117 Disability Needs Analysis - Jane If Jane is Disabled Surplus or Shortfall by Age All amounts in this table are annual, pre-tax amounts. Age Income Needed Employment Income Other Income Social Security Benefit Group* Insurance Personal Insurance Surplus or (Shortfall) 6 $225,5 $112,75 $ $ $ $ -$112,75 61 $231,137 $115,569 $ $ $ $ -$115, $236,916 $118,458 $ $ $ $ -$118, $242,839 $121,419 $ $ $ $ -$121, $248,91 $124,455 $ $ $ $ -$124, $255,133 $127,566 $ $ $ $ -$127,566 * The benefit amount may include an after-tax portion that has been grossed up to reflect its pre-tax value. Notes Disability benefits may be subject to an elimination period or benefit age cap. Income Needed is the amount you have indicated is necessary to maintain your standard of living during the disability period. Page 17 of 157

118 Long-Term Care Needs Analysis - Tom Scenario : Optimized One of the greatest threats to the financial well-being of many people over 5 is the possible need for an extended period of Long-Term Care, either at home, in an Assisted Living Facility or in a Nursing Home. This Section demonstrates how these expenses could adversely affect your Investment Portfolio and how you might protect it with a Long-Term Care policy. This graph shows what would happen to your portfolio if Tom enters a Nursing Home at age 8 for 3 years at an annual cost, in Current Dollars, of $79,25 inflating at 6.%. Total Cost of Long-Term Care : $762,926 Total of Existing Long-Term Care Policy Benefits : Total Benefits from purchasing a new Long-Term Care Policy* : Amount offset by expense reduction during care period : Net Cost of care to be paid from Portfolio : $ $53,994 $98,337 $133,595 * Assumptions for new LTC policy are 3 year Benefit Period, 1-day Elimination Period, $2 Daily Benefit Amount, 1% Home Care Benefit, and Compounded Inflation at 5%. Page 18 of 157

119 Long-Term Care Needs Analysis - Jane Scenario : Optimized One of the greatest threats to the financial well-being of many people over 5 is the possible need for an extended period of Long-Term Care, either at home, in an Assisted Living Facility or in a Nursing Home. This Section demonstrates how these expenses could adversely affect your Investment Portfolio and how you might protect it with a Long-Term Care policy. This graph shows what would happen to your portfolio if Jane enters a Nursing Home at age 8 for 3 years at an annual cost, in Current Dollars, of $79,25 inflating at 6.%. Total Cost of Long-Term Care : $857,224 Total of Existing Long-Term Care Policy Benefits : Total Benefits from purchasing a new Long-Term Care Policy* : Amount offset by expense reduction during care period : Net Cost of care to be paid from Portfolio : $ $585,421 $13,315 $168,487 * Assumptions for new LTC policy are 3 year Benefit Period, 1-day Elimination Period, $2 Daily Benefit Amount, 1% Home Care Benefit, and Compounded Inflation at 5%. Page 19 of 157

120 Estate Analysis

121 Estate Analysis Introduction This section of your report provides a general overview of your current estate situation and shows the projected value of your estate at death. It includes an estimate of Federal Estate taxes, expenses, and the amounts to be received by your beneficiaries. If appropriate, this report also illustrates one or more estate planning strategies that you may want to consider. Important Note: This analysis is intended solely to illustrate potential estate analysis issues. Prior to taking any action, we recommend that you review the legal and/or tax implication of this analysis with your personal legal and/or tax advisor. You have told us the following about your current Estate situation; Both Tom and Jane have Wills. Both Tom and Jane have Medical Directives. Both Tom and Jane have Power Of Attorney. This Estate Analysis assumes that you both maintain valid wills that bequeath all assets to each other (Simple Will). This Estate Analysis may not accurately reflect your current estate where one or both of you does not have a Simple Will. It is important that both of you have a Will that is valid and up-to-date. Your Wills should be periodically reviewed by your legal advisor. You should also discuss the appropriateness of a Medical Directive and Power of Attorney with your legal advisor. You have indicated that you have already made provisions for a Bypass Trust (also called a Credit Shelter Trust ). At the first death, this analysis assumes that your assets are properly titled and are appropriate to fully fund the amount shown. The Need for Estate Planning How Will You Be Remembered? It is often said that you cannot take your money with you; however, it is somewhat comforting to know that you can determine what happens to it after you're gone. A well-designed estate plan can not only help make sure that your assets go where you want them to, but also makes the process simpler, faster, less expensive, and less painful. Such planning followed by an orderly transition of your estate can have a positive impact on the people you care about. Goal Planning is Important When it comes to estate taxes, the tax law seemingly penalizes those who fail to plan properly. Failure to properly plan can sometimes lead to greater estate taxes due. A well-designed estate plan can potentially reduce taxes substantially, and leave more money for your heirs. Probate - Expense and Delays Probate is the legal process for settling your Estate, which basically means that all your debts and taxes are paid and remaining assets are distributed. Probate can be time consuming and expensive, and is open to public review. A well-designed estate plan can reduce the costs of probate, save time, and even avoid probate for many assets. Your Beneficiaries - Leaving More The desire to control the ultimate disposition of that which we accumulate during our lifetime and to provide for those we care about is a strong motivation in most people. In this regard, there are many questions to answer: Who should get the money, and how much? When should they get it - all at once or over time? Who will manage the money? Do you want to place restrictions on some assets such as a business or property? How much should go to charity? Who gets important tangible assets (e.g. wedding rings, family heirlooms)? Which assets do you want sold? Which assets should never be sold? Will there be enough liquidity to pay taxes? You - Having Enough Estate Planning focuses on what happens after you die and includes strategies you can employ to increase the amount of your assets that pass to your beneficiaries. Some of these strategies, such as gifting and purchasing life insurance, can cost you a significant amount of money during your lifetime. While this is certainly financially helpful for your heirs, is it financially sound for you? A good estate plan also considers the impact of these strategies on you, while you're alive. You want to make sure that you will have enough money to support your own lifestyle, before spending money to help your heirs. Page 11 of 157

122 Estate Analysis Introduction Important Information on Assumptions This analysis makes a number of assumptions that could significantly affect your results including, but not limited to, the following: Both of you are U.S. Citizens. For married clients, ownership of qualified assets is assumed to roll over to the surviving co-client at the death of the original owner. For domestic partners, qualified assets are assumed to be transferred as a non-spousal inheritance to the surviving co-client at the death of the original owner. In both cases, the Program assumes the surviving co-client inherits all remaining assets of the original owner. State inheritance, estate or gift taxes have not been incorporated. Gift taxes are not calculated every year, but are totaled and settled at the death of the donor. Generation-skipping taxes, if applicable, have not been calculated. All custodial accounts (UGMA and/or UTMA) are not included in the estate calculations. All amounts contributed to 529 Savings Plans are treated as completed gifts and there is no recapture provision for any 5-year pre-funding contribution elections. Prior gifts above the annual exclusion and for which no taxes have been paid are included in your Taxable Estate. Prior gifts above the annual exclusion and for which taxes have been paid are not included in your Taxable Estate. Financial Goals such as "Gift or Donation" or "Leave a Bequest" are not reflected in the Estate Analysis. Bequests stipulated in your will, including charitable bequests, are not reflected in the Estate Analysis. If applicable, reverted gifts and/or life insurance proceeds transferred to a Trust or third-party within three years of death are included in your Gross Estate and Taxable Estate. In certain calculations, the Bypass Trust may not be fully funded to the available estate exemption equivalent amount due to prior gifts, titling of assets, insufficient resources, and/or other bequests. The current values of vested stock options are included in the gross estate. The current values of unvested stock options are included if you indicated, on the Stock Options page, that the options vest at death. In the event Qualified Retirement Plans, IRAs, and Tax-deferred Annuities are used to fund the Bypass Trust, the program assumes the spouse has disclaimed the assets and the contigent beneficiary is a 'qualified' trust. In the event Other Assets, such as a Primary Residence or Personal Property, are used to fund the Bypass Trust, the program assumes these assets have a specific value and can in fact be used to fund the Bypass Trust. If applicable, the value of any payment that continues past death created by the Immediate Annuity Goal Strategy is not included in the estate calculations. Page 111 of 157

123 Estate Analysis Options Liabilities What is the remaining value of Liabilities at death? Die Today (Liabilities in Plan = $171,) : Die in fixed number of years : Die at Life Expectancy (last death) : $171, Taxable Gifts since 1976 on which no gift tax was paid What is the value of prior gifts in excess of the annual gift exclusion on which you did not pay taxes? $ $ Tom Jane $ $ Final Expenses What costs do you want to include for Final Expenses? At 1st Death At 2nd Death Funeral : $1, $1, Administration Fees Fixed Amount $ $ Plus % of Probate assets 2.% 5.% Personal Exclusion Amount What assumption do you want to use for the amount of the Personal Exclusion? Use this amount $3,, Beginning in the year 218 Addition to Estate Value IRD Assets* Die Today : Die in fixed number of years : Die at Life Expectancy : Tom Jane $ $ $ $ $ $ Bypass Trust Funding Amount Portability with no Bypass Trust Non IRD Assets* Die Today : Die in fixed number of years : Die at Life Expectancy : Tom Jane $ $ $ $ $ $ Additional Death Benefit Die Today : Die in fixed number of years : Die at Life Expectancy : Tom Jane $ $ $ $ $ $ * Income in Respect of a Decedent (IRD) is income a decedent earned or was entitled to receive before death (e.g. retirement plan assets). IRD assets are excluded from the probate estate and non-ird assets are included in the probate estate. Page 112 of 157

124 Estate Analysis Current Asset Ownership Detail This chart summarizes the current ownership and designated beneficiary(ies) of all of your Assets used in this Plan. Note: All Qualified Retirement Plans, IRA and Tax-deferred Assets are assumed to have the spouse as the beneficiary if married with the estate as contingent beneficiary, or the estate as the beneficiary if single. All other Assets owned individually or jointly are assumed to operate as prescribed by applicable law. We do not provide legal or tax advice. Please consult with your tax and/or legal advisor to review the ownership and beneficiary designations and their legal and tax implications since they can have a significant impact on the distribution of assets at your death and whether or not certain basic estate strategies can be implemented. Joint (Jane) Description Tom Jane Survivorship Common Entirety Community Property Joint (Other) Total Beneficiaries Investment Assets Employer Retirement Plans Jane's 43(b) $315, $315, Tom's 41(k) $32, $32, Annuities & Tax-Deferred Products Variable Annuity with GMWB $13, $13, Taxable and/or Tax-Free Accounts Brokerage Account $272,89 $272,89 Other Assets Home and Personal Assets Total Investment Assets $423, $315, $272,89 $ $ $ $ $1,1,89 Sailboat $45, $45, Vehicle $5, $5, Business and Property Home $375, $375, Pension and Deferred Compensation Lump Sum Distribution $75, $75, Cash Value Life Whole Life $2, $2, Co-Client of Insured (1%) Stock Options Valspar Total Other Assets $115, $75, $375, $ $ $ $ $565, Page 113 of 157

125 Estate Analysis Current Asset Ownership Detail Joint (Jane) Description Tom Jane Survivorship Common Entirety Community Property Joint (Other) Total Beneficiaries Total Assets : $538, $39, $647,89 $ $ $ $ $1,575,89 Page 114 of 157

126 Estate Analysis Results Combined Summary Using Optimized - Both Die today - Tom Predeceases Jane Existing Estate Total Estate : $2,255,69 Federal Estate Tax** : $ Estate Expenses : $234,585 Amount to Heirs : $2,21,24 Additional Value to Heirs : Amount to Heirs Net Estate Value : $2,21,24 Bypass Trust : $ Other Life Insurance : $ Life Insurance in Trust : $ Total : $2,21,24 Cash Needed to Pay Tax and Expenses Shortfall at First Death : $ Shortfall at Second Death : $ Bypass Trust Funding Funding Shortfall : $ ** State Estate Taxes are not included. In some states, the tax may be substantial. Notes Prior gifts are not included in the amount to heirs. Page 115 of 157

127 Estate Analysis Results Combined Summary Using Optimized - Both Die today - Jane Predeceases Tom Existing Estate Total Estate : $2,255,69 Federal Estate Tax** : $ Estate Expenses : $234,747 Amount to Heirs : $2,2,862 Additional Value to Heirs : Amount to Heirs Net Estate Value : $2,2,862 Bypass Trust : $ Other Life Insurance : $ Life Insurance in Trust : $ Total : $2,2,862 Cash Needed to Pay Tax and Expenses Shortfall at First Death : $ Shortfall at Second Death : $ Bypass Trust Funding Funding Shortfall : $ ** State Estate Taxes are not included. In some states, the tax may be substantial. Notes Prior gifts are not included in the amount to heirs. Page 116 of 157

128 Estate Analysis Results Individual Detail Using Optimized - Both Die today - Tom Predeceases Jane When Tom Dies in 216 Taxable Estate Gross Estate : Existing Estate $838,545 Probate/Admin Fees : ($1,9) Final Expenses : ($1,) Marital Deduction : ($826,645) Taxable Estate $ Total Lifetime Taxable Gifts : $ Total Taxable Estate : $ Amount Transferred to Bypass Trust : $ Tax Calculation Tentative Estate Tax (based on Total Taxable Estate) : $ Estate Credit Used : ($) Estate Tax Due : $ Adjusted Gift Credit : $ Total Estate Tax Due : $ Bypass Trust Maximum Personal Exclusion Amount : $5,45, Personal Exclusion Amount Used : ($) Total Remaining Personal Exclusion Amount (Bypass Funding Shortfall) : ($5,45,) Remaining Personal Exclusion (DSUEA) : $5,45, Page 117 of 157

129 Estate Analysis Results Individual Detail Using Optimized - Both Die today - Tom Predeceases Jane When Jane Dies in 216 Taxable Estate Jane's Assets : Existing Estate $1,417,65 Marital Deduction : $826,645 Gross Estate : $2,243,79 Liabilities : ($171,) Probate/Admin Fees : ($41,685) Final Expenses : ($1,) Taxable Estate $2,21,24 Total Lifetime Taxable Gifts : $ Total Taxable Estate : $2,21,24 Tax Calculation Tentative Estate Tax (based on Total Taxable Estate) : $754,29 Estate Credit Used : ($754,29) DSUEA Credit Used : ($) Estate Tax Due : $ Adjusted Gift Credit : $ Total Estate Tax Due : $ Amount to Heirs Total Estate Value : $2,21,24 Total Estate Tax Due : $ Net Estate Value : $2,21,24 ByPass Trust : $ Other Life Insurance : $ Life Insurance in Trust : $ Amount to Heirs : $2,21,24 Additional Value to Heirs : Page 118 of 157

130 Estate Analysis Results Individual Detail Using Optimized - Both Die today - Jane Predeceases Tom When Jane Dies in 216 Taxable Estate Gross Estate : Existing Estate $742,64 Probate/Admin Fees : ($2,7) Final Expenses : ($1,) Marital Deduction : ($729,994) Taxable Estate $ Total Lifetime Taxable Gifts : $ Total Taxable Estate : $ Amount Transferred to Bypass Trust : $ Tax Calculation Tentative Estate Tax (based on Total Taxable Estate) : $ Estate Credit Used : ($) Estate Tax Due : $ Adjusted Gift Credit : $ Total Estate Tax Due : $ Bypass Trust Maximum Personal Exclusion Amount : $5,45, Personal Exclusion Amount Used : ($) Total Remaining Personal Exclusion Amount (Bypass Funding Shortfall) : ($5,45,) Remaining Personal Exclusion (DSUEA) : $5,45, Page 119 of 157

131 Estate Analysis Results Individual Detail Using Optimized - Both Die today - Jane Predeceases Tom When Tom Dies in 216 Taxable Estate Tom's Assets : Existing Estate $1,513,545 Marital Deduction : $729,994 Gross Estate : $2,243,539 Liabilities : ($171,) Probate/Admin Fees : ($41,677) Final Expenses : ($1,) Taxable Estate $2,2,862 Total Lifetime Taxable Gifts : $ Total Taxable Estate : $2,2,862 Tax Calculation Tentative Estate Tax (based on Total Taxable Estate) : $754,145 Estate Credit Used : ($754,145) DSUEA Credit Used : ($) Estate Tax Due : $ Adjusted Gift Credit : $ Total Estate Tax Due : $ Amount to Heirs Total Estate Value : $2,2,862 Total Estate Tax Due : $ Net Estate Value : $2,2,862 ByPass Trust : $ Other Life Insurance : $ Life Insurance in Trust : $ Amount to Heirs : $2,2,862 Additional Value to Heirs : Page 12 of 157

132 Estate Analysis Results Flowchart Existing Estate without Bypass Trust using Optimized - Both Die today - Tom Predeceases Jane Tom's Gross Estate $838,545 1st Death Taxes and Expenses $11,9 Marital Deduction Bypass Trust Other Life Insurance $826,645 $ $ Jane's Assets $1,417,65 Jane's Gross Estate ILIT Policies Owned by Other $2,243,79 $ 2nd Death Taxes and Expenses $222,685 Total Amount to Heirs $2,21,24 + $ + $ + $ = $2,21,24 Notes Gross Estate amounts may include the value of reverted gifts. Other Life Insurance includes policies where the first person to die is the owner and insured and the beneficiary of the policy is not the co-client or estate. Gross Estate amounts do not include the value of prior gifts. The Bypass Trust may not be fully funded to the available estate exemption equivalent amount due to prior gifts, titling of assets, insufficient resources, and/or other bequests. Page 121 of 157

133 Estate Analysis Results Flowchart Existing Estate without Bypass Trust using Optimized - Both Die today - Jane Predeceases Tom Jane's Gross Estate $742,64 1st Death Taxes and Expenses $12,7 Marital Deduction Bypass Trust Other Life Insurance $729,994 $ $ Tom's Assets $1,513,545 Tom's Gross Estate ILIT Policies Owned by Other $2,243,539 $ 2nd Death Taxes and Expenses $222,677 Total Amount to Heirs $2,2,862 + $ + $ + $ = $2,2,862 Notes Gross Estate amounts may include the value of reverted gifts. Other Life Insurance includes policies where the first person to die is the owner and insured and the beneficiary of the policy is not the co-client or estate. Gross Estate amounts do not include the value of prior gifts. The Bypass Trust may not be fully funded to the available estate exemption equivalent amount due to prior gifts, titling of assets, insufficient resources, and/or other bequests. Page 122 of 157

134 Estate Analysis What If Results Combined Summary Using Optimized - Both Die today - Tom Predeceases Jane Existing Estate Estate Scenario 1 Total Estate : $2,255,69 $2,255,69 Federal Estate Tax** : $ $ Estate Expenses : $234,585 $234,585 Amount to Heirs : $2,21,24 $2,21,24 Additional Value to Heirs : Amount to Heirs and Charities Net Estate Value : $2,21,24 $2,21,24 Bypass Trust : $ $ Other Life Insurance : $ $ Life Insurance in Trust : $ $ Total : $2,21,24 $2,21,24 Cash Needed to Pay Tax and Expenses Shortfall at First Death : $ $ Shortfall at Second Death : $ $ Bypass Trust Funding Funding Shortfall : $ $ If you include in your Estate What-If scenario a change in ownership strategy where the insurance death benefit will not revert at death, the Gross and Taxable Estate will not include the death benefits from life insurance policies that were transferred within three years of death - this option is for illustrative and comparison purposes only. Page 123 of 157

135 Estate Analysis What If Results Combined Summary Using Optimized - Both Die today - Tom Predeceases Jane Results for your Goal Plan include the Estate Strategies selected as shown below. Estimated % of Goal Funded Goal Existing Estate Estate Scenario 1 Retirement - Living Expense 1% 1% Health Care 1% 1% Sedan 1% 1% Travel 1% 1% Sports Car 1% 1% College - Jacob 1% 1% Kitchen Remodel 1% 1% Safety Margin (Value at End of Plan) Current dollars : Future dollars : $588,167 $1,395,84 $588,167 $1,395,84 ** State Estate Taxes are not included. In some states, the tax may be substantial. Notes Prior gifts are not included in the amount to heirs. Page 124 of 157

136 Estate Analysis What If Results Combined Summary Using Optimized - Both Die today - Jane Predeceases Tom Existing Estate Estate Scenario 1 Total Estate : $2,255,69 $2,255,69 Federal Estate Tax** : $ $ Estate Expenses : $234,747 $234,747 Amount to Heirs : $2,2,862 $2,2,862 Additional Value to Heirs : Amount to Heirs and Charities Net Estate Value : $2,2,862 $2,2,862 Bypass Trust : $ $ Other Life Insurance : $ $ Life Insurance in Trust : $ $ Total : $2,2,862 $2,2,862 Cash Needed to Pay Tax and Expenses Shortfall at First Death : $ $ Shortfall at Second Death : $ $ Bypass Trust Funding Funding Shortfall : $ $ If you include in your Estate What-If scenario a change in ownership strategy where the insurance death benefit will not revert at death, the Gross and Taxable Estate will not include the death benefits from life insurance policies that were transferred within three years of death - this option is for illustrative and comparison purposes only. Page 125 of 157

137 Estate Analysis What If Results Combined Summary Using Optimized - Both Die today - Jane Predeceases Tom Results for your Goal Plan include the Estate Strategies selected as shown below. Estimated % of Goal Funded Goal Existing Estate Estate Scenario 1 Retirement - Living Expense 1% 1% Health Care 1% 1% Sedan 1% 1% Travel 1% 1% Sports Car 1% 1% College - Jacob 1% 1% Kitchen Remodel 1% 1% Safety Margin (Value at End of Plan) Current dollars : Future dollars : $588,167 $1,395,84 $588,167 $1,395,84 ** State Estate Taxes are not included. In some states, the tax may be substantial. Notes Prior gifts are not included in the amount to heirs. Page 126 of 157

138 Estate Analysis What If Results Individual Detail Using Optimized - Both Die today - Tom Predeceases Jane When Tom Dies in 216 Taxable Estate Existing Estate Estate Scenario 1 Gross Estate : $838,545 $838,545 Probate/Admin Fees : ($1,9) ($1,9) Final Expenses : ($1,) ($1,) Marital Deduction : ($826,645) ($826,645) Taxable Estate $ $ Total Lifetime Taxable Gifts : $ $ Total Taxable Estate : $ $ Amount Transferred to Bypass Trust : $ $ Tax Calculation Tentative Estate Tax (based on Total Taxable Estate) : Existing Estate $ Estate Scenario 1 $ Estate Credit Used : ($) ($) Estate Tax Due : $ $ Adjusted Gift Credit : $ $ Total Estate Tax Due : $ $ Bypass Trust Existing Estate Estate Scenario 1 Maximum Personal Exclusion Amount : $5,45, $5,45, Personal Exclusion Amount Used : ($) ($) Remaining Personal Exclusion (DSUEA) : $5,45, $5,45, Page 127 of 157

139 Estate Analysis What If Results Individual Detail Using Optimized - Both Die today - Tom Predeceases Jane When Jane Dies in 216 Taxable Estate Existing Estate Estate Scenario 1 Jane's Assets : $1,417,65 $1,417,65 Marital Deduction : $826,645 $826,645 Gross Estate : $2,243,79 $2,243,79 Liabilities : ($171,) ($171,) Probate/Admin Fees : ($41,685) ($41,685) Final Expenses : ($1,) ($1,) Taxable Estate $2,21,24 $2,21,24 Total Lifetime Taxable Gifts : $ $ Total Taxable Estate : $2,21,24 $2,21,24 Tax Calculation Existing Estate Estate Scenario 1 Tentative Estate Tax (based on Total Taxable Estate) : $754,29 $754,29 Estate Credit Used : ($754,29) ($754,29) DSUEA Credit Used : ($) ($) Estate Tax Due : $ $ Adjusted Gift Credit : $ $ Total Estate Tax Due : $ $ Amount to Heirs Existing Estate Estate Scenario 1 Total Taxable Estate : $2,21,24 $2,21,24 Total Estate Tax Due : $ $ Net Estate Value : $2,21,24 $2,21,24 ByPass Trust : $ $ Life Insurance : $ $ Life Insurance in Trust : $ $ Amount to Heirs : $2,21,24 $2,21,24 Additional Value to Heirs : Page 128 of 157

140 Estate Analysis What If Results Individual Detail Using Optimized - Both Die today - Jane Predeceases Tom When Jane Dies in 216 Taxable Estate Existing Estate Estate Scenario 1 Gross Estate : $742,64 $742,64 Probate/Admin Fees : ($2,7) ($2,7) Final Expenses : ($1,) ($1,) Marital Deduction : ($729,994) ($729,994) Taxable Estate $ $ Total Lifetime Taxable Gifts : $ $ Total Taxable Estate : $ $ Amount Transferred to Bypass Trust : $ $ Tax Calculation Tentative Estate Tax (based on Total Taxable Estate) : Existing Estate $ Estate Scenario 1 $ Estate Credit Used : ($) ($) Estate Tax Due : $ $ Adjusted Gift Credit : $ $ Total Estate Tax Due : $ $ Bypass Trust Existing Estate Estate Scenario 1 Maximum Personal Exclusion Amount : $5,45, $5,45, Personal Exclusion Amount Used : ($) ($) Remaining Personal Exclusion (DSUEA) : $5,45, $5,45, Page 129 of 157

141 Estate Analysis What If Results Individual Detail Using Optimized - Both Die today - Jane Predeceases Tom When Tom Dies in 216 Taxable Estate Existing Estate Estate Scenario 1 Tom's Assets : $1,513,545 $1,513,545 Marital Deduction : $729,994 $729,994 Gross Estate : $2,243,539 $2,243,539 Liabilities : ($171,) ($171,) Probate/Admin Fees : ($41,677) ($41,677) Final Expenses : ($1,) ($1,) Taxable Estate $2,2,862 $2,2,862 Total Lifetime Taxable Gifts : $ $ Total Taxable Estate : $2,2,862 $2,2,862 Tax Calculation Existing Estate Estate Scenario 1 Tentative Estate Tax (based on Total Taxable Estate) : $754,145 $754,145 Estate Credit Used : ($754,145) ($754,145) DSUEA Credit Used : ($) ($) Estate Tax Due : $ $ Adjusted Gift Credit : $ $ Total Estate Tax Due : $ $ Amount to Heirs Existing Estate Estate Scenario 1 Total Taxable Estate : $2,2,862 $2,2,862 Total Estate Tax Due : $ $ Net Estate Value : $2,2,862 $2,2,862 ByPass Trust : $ $ Life Insurance : $ $ Life Insurance in Trust : $ $ Amount to Heirs : $2,2,862 $2,2,862 Additional Value to Heirs : Page 13 of 157

142 Estate Analysis What If Results Flowchart Existing Estate without Bypass Trust using Optimized - Both Die today - Tom Predeceases Jane Tom's Gross Estate $838,545 1st Death Taxes and Expenses $11,9 Marital Deduction Bypass Trust Other Life Insurance $826,645 $ $ Jane's Assets $1,417,65 Jane's Gross Estate ILIT Policies Owned by Other $2,243,79 $ 2nd Death Taxes and Expenses $222,685 Total Amount to Heirs $2,21,24 + $ + $ + $ = $2,21,24 Notes Gross Estate amounts may include the value of reverted gifts. Other Life Insurance includes policies where the first person to die is the owner and insured and the beneficiary of the policy is not the co-client or estate. Gross Estate amounts do not include the value of prior gifts. The Bypass Trust may not be fully funded to the available estate exemption equivalent amount due to prior gifts, titling of assets, insufficient resources, and/or other bequests. Page 131 of 157

143 Estate Analysis What If Results Flowchart Estate Scenario 1 using Optimized - Both Die today - Tom Predeceases Jane Tom's Gross Estate $838,545 1st Death Taxes and Expenses $11,9 Marital Deduction Bypass Trust Other Life Insurance $826,645 $ $ Jane's Assets $1,417,65 Jane's Gross Estate ILIT Policies Owned by Other $2,243,79 $ 2nd Death Taxes and Expenses $222,685 Total Amount to Heirs $2,21,24 + $ + $ + $ = $2,21,24 Notes Gross Estate amounts may include the value of reverted gifts. Other Life Insurance includes policies where the first person to die is the owner and insured and the beneficiary of the policy is not the co-client or estate. Gross Estate amounts do not include the value of prior gifts. The Bypass Trust may not be fully funded to the available estate exemption equivalent amount due to prior gifts, titling of assets, insufficient resources, and/or other bequests. Page 132 of 157

144 Estate Analysis What If Results Flowchart Existing Estate without Bypass Trust using Optimized - Both Die today - Jane Predeceases Tom Jane's Gross Estate $742,64 1st Death Taxes and Expenses $12,7 Marital Deduction Bypass Trust Other Life Insurance $729,994 $ $ Tom's Assets $1,513,545 Tom's Gross Estate ILIT Policies Owned by Other $2,243,539 $ 2nd Death Taxes and Expenses $222,677 Total Amount to Heirs $2,2,862 + $ + $ + $ = $2,2,862 Notes Gross Estate amounts may include the value of reverted gifts. Other Life Insurance includes policies where the first person to die is the owner and insured and the beneficiary of the policy is not the co-client or estate. Gross Estate amounts do not include the value of prior gifts. The Bypass Trust may not be fully funded to the available estate exemption equivalent amount due to prior gifts, titling of assets, insufficient resources, and/or other bequests. Page 133 of 157

145 Estate Analysis What If Results Flowchart Estate Scenario 1 using Optimized - Both Die today - Jane Predeceases Tom Jane's Gross Estate $742,64 1st Death Taxes and Expenses $12,7 Marital Deduction Bypass Trust Other Life Insurance $729,994 $ $ Tom's Assets $1,513,545 Tom's Gross Estate ILIT Policies Owned by Other $2,243,539 $ 2nd Death Taxes and Expenses $222,677 Total Amount to Heirs $2,2,862 + $ + $ + $ = $2,2,862 Notes Gross Estate amounts may include the value of reverted gifts. Other Life Insurance includes policies where the first person to die is the owner and insured and the beneficiary of the policy is not the co-client or estate. Gross Estate amounts do not include the value of prior gifts. The Bypass Trust may not be fully funded to the available estate exemption equivalent amount due to prior gifts, titling of assets, insufficient resources, and/or other bequests. Page 134 of 157

146 Employer Stock Plans

147 Stock Options Introduction to Your Stock Options This section of your report summarizes your Stock Option plan and calculates your current option equity value for all fully vested shares. It also calculates an estimate of the potential future option equity values, that may be available to help fund your goals each year based upon the assumptions you have made. We believe this information is an important step in a financial goal plan. We look forward to helping you make informed decisions regarding your stock option strategy. This Report is for your information only and does not constitute the solicitation to purchase or sell any specific security. General Discussion Your stock options can be a significant component of your financial portfolio. Stock options can give you the opportunity to benefit from the potential appreciation in your company's stock. As with any other investments, there are certain risks associated with stock options which you should take into consideration. Therefore, it is critical that you are familiar with your stock options, how they function, and the financial implications they may have on your overall portfolio. Stock options provide employees with the right to buy company stock at a specified price, known as the strike price, within a certain period of time. A company can grant two types of stock options - incentive stock options (ISOs) and non-qualified stock options (NQOs). Incentive Stock Options (ISOs) - One advantage of an ISO is that no regular income tax is recognized upon exercising the option. In addition, if the acquired stock is held for two years from the date of grant and one year from the date of exercise, favorable long-term capital gains rates will apply to all of the appreciation (between the strike price and sale price) upon the subsequent sale of the stock. The sale of any shares prior to satisfying either of these holding period requirements will be treated as a "disqualifying disposition." If the acquired stock is not held for one year from exercise, the bargain element (the difference between the value of the stock on exercise and the strike price, also referred to as "spread") is treated as ordinary income and any post-exercise gain is short-term capital gain. If the stock is held for one year from exercise but not two years from grant, the bargain element (or spread) is ordinary income and any post-exercise gain is long-term capital gain. Although the exercise of an ISO is generally not a taxable event for regular tax purposes, the difference between the strike price and the stock price on the date of exercise is considered a preference item for federal, and possibly state, alternative minimum tax (AMT) purposes. Depending on the circumstances, the exercise of ISOs can cause a taxpayer to be subject to the AMT and incur a higher tax liability even though shares have not yet been sold and gains have yet to be realized. Nonqualified Stock Options (NQOs) - Unlike ISOs, the spread on NQOs is immediately recognized as compensation income upon exercise, for regular tax purposes, and is therefore subject to federal, and possibly state income tax, as well as Medicare and FICA tax. If the stock is held after exercise, any subsequent appreciation is treated as capital gain (long-term, if held for more than one year) when the stock is sold. Stock Options Scenarios The future potential after-tax option equity cash flows illustrated in this analysis, for each exercise scenario, were calculated based on selecting one or more Timing Methods and certain assumptions described below: Available Timing Methods All scenarios assume a cashless exercise strategy. Now - All Vested Only - Currently vested options that are in-the-money by any amount are exercised now; all remaining options are lost. Now and As Vested - Currently vested options that equal or exceed the minimum percentage gain are exercised now. Remaining options are either exercised in the first year they are both vested and exceed the minimum percentage gain or are exercised in the year they expire if they are in-the-money by any amount. Now and At Expiration - Currently vested options that equal or exceed the minimum percentage gain are exercised now. All remaining options are exercised in the year they expire if they are in-the-money by any amount. Start Year and As Vested - Beginning in the exercise start year, vested options that equal or exceed the minimum percentage gain are exercised. After the exercise start year, remaining options are either exercised in the first year they are both vested and exceed the minimum percentage gain or are exercised in the year they expire if they are in-the-money by any amount. Start Year and At Expiration - Beginning in the exercise start year, vested options that equal or exceed the minimum percentage gain are exercised. After the exercise start year, remaining options are exercised in the year they expire if they are in-the-money by any amount. At Expiration - Options are exercised in the year they expire if they are in-the-money by any amount. Page 135 of 157

148 Stock Options Other Assumptions Return assumption for this Stock - The projected return for the asset class category selected, unless otherwise indicated by you. If a Stock Option Plan with Scenarios is treated as a Special Asset, the return assumption for this stock includes three growth rates -- labeled Low, Expected and High returns. The Program default for all three returns is the projected return for the asset class category selected, and can be changed by you. This approach can help illustrate financial risk not otherwise reflected in the Plan results. Minimum percentage gain to exercise - The minimum percentage gain in the stock price above the exercise price that is required before exercising options. Applying this minimum defers the exercise of options with only relatively small spread between the stock price and the option price. Vesting Termination Year - A year in which it is assumed that vesting ends prematurely. All remaining unvested options are lost. Exercise Start Year - A year in which it is expected that you will begin to exercise vested options, if different than the current year. Hold ISO for One Year - If it is indicated that ISO shares are not to be "Held for One Year", then it is assumed that the ISO shares are disqualified and a Regular Tax Rate is applied. If it is indicated that ISO shares are to be "Held for One Year", it is assumed that those shares will have been held for at least two years from the date of grant and over one year from the date of exercise, thus qualifying for long-term capital gains treatment and the Long-Term Tax Rate is applied. General Assumptions The Regular Tax Rate is the estimated tax rate applied to the potential option equity on all NQOs exercised and sold and on any ISO shares sold that were not held for one year. This rate should be the total estimate for all applicable taxes, including Federal, State, and Local Income taxes. Unless included in this rate, Medicare and FICA taxes are not applied separately to NQO equity. The Long-Term Tax Rate is the estimated tax rate applied to the potential option equity on any ISO shares sold that were held for more than one year after exercise (as well as two years from date of grant). This rate should be the total estimate for all applicable taxes, including Federal, State, and Local Income taxes. The possible impact of the Alternative Minimum Tax (AMT) is not reflected in any calculations. Since the exercise of ISOs can have substantial AMT consequences, you should consult with your personal tax advisor. The after-tax calculations within the Option Equity Schedule and Price Sensitivity Analysis assume that all ISOs are disqualified and the Regular Tax Rate is applied. In addition, the Vesting Schedule does not calculate whether ISO grants meet the $1, limitation. Exercise costs for NQOs and ISOs have not been considered nor have any dividends that might have been received from ISOs that are exercised and held for one year. Grants expected to be received in the future are not represented in this Stock Option Summary. Cash Receipt Schedule The future potential after-tax option equity cash flows illustrated in this analysis, for each Cash Receipt Schedule, are the amounts you entered, based on your own calculations. Assumptions The Current Value should represent the current value of all vested stock options in this Stock Option Plan. The Value if the Owner dies today should represent the value to be paid by the Stock Option Plan if the owner dies today. The Cash Receipts Table shows expected after-tax amounts for one or more years in the future, based on your own calculations and as entered by you. If a Stock Option Plan with a Cash Receipt Schedule is treated as a Special Asset, the Cash Receipts Table shows the Low, Expected, and High after-tax amounts for each year in the future, based on your own calculation and as entered by you. This approach can help illustrate financial risk not otherwise reflected in the Plan results. The possible impact of the Alternative Minimum Tax (AMT) and any other cost and taxes associated with exercising Stock Options are not reflected in any calculations, unless its impact was taken into account, by you, when entering the cash receipt amounts. Page 136 of 157

149 Stock Options Summary Valspar (VAL) Owner : Jane Options Outstanding Options Assumptions Granted : 5 Vested : Regular Tax Rate : 4.% Exercised : Not Vested : 5 Long-Term Tax Rate : 2.% Option Equity After Tax : $ Market Price* : $17.4 on 4/15/216 Asset Class : Mid Cap Stocks Options Vest at Death : Yes Special Asset : No * Security prices included in the stock option analysis are based on the market price that you entered for the date referenced and are included only because the system requires it for analysis purposes. This Report is for your information only and does not constitute the solicitation to purchase or sell any specific security and you should not rely on the information presented when making an investment or liquidation decision. We make no warranty with respect to any security price and do not guarantee that the price listed will be available to you should you choose to exercise your options. The actual price available to you should you choose to exercise your options may be more or less than indicated on the report. Vesting Schedule The Vesting Schedule below is a summary showing the percentage of each option grant that becomes exercisable over time according to the information you have provided. Name % Vested by Year Year Cliff % % % 1% % % % % % % Page 137 of 157

150 Stock Options Summary Option Equity Schedule The Option Equity Schedule below shows a summary of your stock option grants and calculates the pre-tax and after-tax option equity value for all vested stock options based on the current market price. These values are calculated using the information you provided for each grant, your tax rate assumption and the current market price of the stock as indicated by you. If your plan includes ISOs, the After Tax Option Equity value assumes that all ISOs are immediately disqualified and the regular tax rate is applied. This Report does not constitute the solicitation to purchase or sell any specific security. Grant Options Outstanding Options Option Equity - Vested Only Market Price $17.4 Name Date Price Type Expiration Date Vesting Schedule Granted Exercised Vested Not Vested Pre-Tax Tax at 4.% After Tax /12/214 $5. NQO 5/12/224 4 Year Cliff 5 5 $ $ $ Option Equity Value if Die Today - All Options Vested at Death Total : 5 5 $ $ $ The option equity value if Jane dies today is $28,52 pre-tax. Based upon a tax rate of 4.%, the after-tax value of the options vested at death is $17,112. Price Sensitivity Analysis The Price Sensitivity Analysis shows a summary of your stock option grants and calculates the potential after-tax option equity values for all vested stock options based on the current market price as indicated by you as well as a variety of higher and lower assumed prices. Understanding the impact of potential stock price changes on the after-tax option equity value of particular grants can play an important role in determining option exercise strategies. If your plan includes ISOs, the After Tax Option Equity value assumes that all ISOs are immediately disqualified and the regular tax rate is applied. Grant Option Equity Sensitivity - After Tax for Vested Options Only Name Date Price Type Expiration Date Vested Options -25% $ % $9.98 Market* $ % $ % $ /12/214 $5. NQO 5/12/224 $ $ $ $ $ Total : $ $ $ $ $ Change In Value: $ $ $ $ $ * Security prices included in the stock option analysis are based on the market price that you entered for the date referenced and are included only because the system requires it for analysis purposes. This Report is for your information only and does not constitute the solicitation to purchase or sell any specific security and you should not rely on the information presented when making an investment or liquidation decision. We make no warranty with respect to any security price and do not guarantee that the price listed will be available to you should you choose to exercise your options. The actual price available to you should you choose to exercise your options may be more or less than indicated on the report. Page 138 of 157

151 Stock Options Summary Full Vesting Schedule The Full Vesting Schedule illustrates the amount of stock options that are currently vested and calculates any additional amounts that vest in future years based on the applicable Vesting Schedule. Grant Name Date Price Type Expiration Date Vesting Schedule Currently Vested Options Vesting Each Year Beyond /12/214 $5. NQO 5/12/224 4 Year Cliff 5 Total : 5 Stock Options Scenarios The Stock Options Scenarios show a summary of your stock option grants and, for each scenario, the timing method(s) and other assumptions outlined in the Stock Options Introduction that will be used to calculate future potential after-tax option equity as summarized in the Cash Flow Grant Name Date Price Type Expiration Date Vesting Schedule Outstanding Options Vested Not Vested Scenario 1 Timing Hold ISO? Scenario 2 Scenario /12/214 $5. NQO 5/12/224 4 Year Cliff 5 Now And As N/A Start Year and N/A Now And At N/A Vested At Expiration Expiration Timing Hold ISO? Timing Hold ISO? Total : 5 Return assumption for this stock : 8.% 8.% 4.% Accelerated Expiration Year : Minimum percentage gain to exercise : 8.% 8.% 8.% Exercise Start Year : Page 139 of 157

152 Stock Options Summary Cash Flow Schedule The Cash Flow Schedule below shows the future potential after-tax option equity value for each scenario indicated, on a year-by-year basis. These are only estimates based on current information and not guarantees that you will obtain a specific value or tax benefit upon exercise of the Stock Options. This Report does not constitute the solicitation to purchase or sell any specific security. Year Assign to Goals Scenario 1 - Option Equity (after-tax) Scenario 2 - Option Equity (after-tax) Scenario 3 - Option Equity (after-tax) 216 Fund All Goals 217 Fund All Goals 218 Fund All Goals $22, Fund All Goals 22 Fund All Goals $28,688 $22, Fund All Goals 222 Fund All Goals 223 Fund All Goals 224 Fund All Goals 225 Fund All Goals Total : Important Note on Alternative Minimum Tax (AMT): If your plan includes ISOs, the possible impact of AMT is not reflected in these calculations. Since the exercise of ISOs can have substantial AMT consequences, you should consult with your personal tax advisor. Also, the possible impact of the value of ISOs becoming first exercisable during a single year and exceeding the $1, limitation, causing the excess ISOs to be disqualified, is not reflected in these calculations. $22,455 $28,688 $22,566 Page 14 of 157

153 Budget for Retirement Goals

154 Retirement Goal Budget Expense Summary Expense Summary Total Monthly Expenses $ M Expense Summary Monthly Amount Page 141 of 157

155 Other

156 Plan Delivery Acknowledgement We have reviewed and accept the information contained within this plan and understand the assumptions associated with it. We believe that all information provided by us is complete and accurate to the best of our knowledge. We recognize that performance is not guaranteed and that all future projections are included simply as a tool for decision making and do not represent a forecast of our financial future. This plan should be reviewed periodically to ensure that the decisions made continue to be appropriate, particularly if there are changes in family circumstances, including, but not limited to, an inheritance, birth of a child, death of a family member, or material change in incomes or expenses. Client Signature : Co-Client Signature : Client Name : Tom Lundquist Co-Client Name : Jane Lundquist Delivery Date : Notes We have prepared this plan based on information provided by you. We have not attempted to verify the accuracy or completeness of this information. As the future cannot be forecast with certainty, actual results will vary from these projections. It is possible that these variations may be material. The degree of uncertainty normally increases with the length of the future period covered. Financial Advisor : Joe Advisor Plan Name : Financial Goal Plan Report Name : Financial Goal Plan

157 Notes

158 Blank Page This Page Was Intentionally Left Blank. Page 142 of 157

159 Compliance Snapshot Tom and Jane Lundquist Needs Retirement - Living Expense Tom (22) Jane (22) Both Retired (22-245) Mortgage Reduction of $15, (222) Jane Alone Retired (246-25) Health Care Tom Medicare / Jane Retired Before Medicare (22-221) Both Medicare ( ) Jane Alone Medicare (246-25) Sedan When Jane retires Recurring every 8 years for a total of 3 times $95, $76, Base Inflation Rate (2.5%) $7,882 $11,872 $5,849 Base Inflation Rate plus 4.% (6.5%) $3, Base Inflation Rate (2.5%) Wants 7 Travel When both are retired Recurring every year for a total of 15 times $1, Base Inflation Rate (2.5%) 5 Sports Car When Tom retires Recurring every 8 years for a total of 3 times $35, Base Inflation Rate (2.5%) Wishes Page 143 of 157

160 Compliance Snapshot Tom and Jane Lundquist 3 College - Jacob 4 years starting in 229 Attending University of Virginia Other Funding Sources - $5, per year $26,138 Base Inflation Rate plus 3.5% (6.%) Other Funding (per year of school, adjusted for inflation) Student Loans - $5, 1 Kitchen Remodel In 225 $35, Base Inflation Rate (2.5%) Personal Information Tom Male - born 1/1/1955, age 61 Employed - $11, Participant Name Date of Birth Age Relationship Daniel 11/12/ Child Jessica 1/1/ Child Jacob 5/15/211 5 Grandchild Jane Female - born 3/15/1957, age 59 Employed - $11, Married, US Citizens living in VA This section lists the Personal and Financial Goal information you provided, which will be used to create your Report. It is important that it is accurate and complete. Page 144 of 157

161 Compliance Snapshot Expectation Tom Active Lifestyle Jane Quiet Lifestyle Time with Friends & Family Both Tom and Jane Opportunity to Help Others Time to Travel Owner Concern What Would Help High Joint Medium Cost of Health Care or Long-Term Care Include a Goal for Health Care and test to see the impact of a potential Long Term Care expense in the future. Tom Suffering investment Losses Find out if you can meet your Goals with less risk. Jane Low Current or Future Health Issues See how health issues might affect the results of your plan Jane Running out of money If your plan is in the Confidence Zone, there's less reason to worry. Tom Parents needing care You can include a Goal for the cost of care for your parents and see its impact on your lifestyle. Page 145 of 157

162 Compliance Snapshot Investment Assets Description Owner Current Value Manually Entered Additions Assign to Goal Brokerage Account Joint Survivorship $272,89 $15, Fund All Goals Google, Inc. International Business Machines Corp Valspar Corporation $28,83 $83,446 $16,56 Jane's 43(b) Jane $315, $7,875 Fund All Goals Account Total $315, Tom's 41(k) Tom $32, $12,96 Fund All Goals Qualified Total Roth Total $275, $45, Variable Annuity with GMWB Tom $13, Fund All Goals Account Total $13, Total Investment Assets : $1,1,89 Other Assets Description Owner Current Value Future Value Assign to Goal Manually Entered Inheritance from Jane's Mom Jane $25, Fund All Goals Lump Sum Distribution Jane $75, Fund All Goals Home Joint Survivorship $375, Not Funding Goals Whole Life Tom $2, Not Funding Goals Vehicle Tom $5, Not Funding Goals Sailboat Tom $45, Not Funding Goals Total of Other Assets : $565, Page 146 of 157

163 Compliance Snapshot Insurance Policies Description Owner Insured Beneficiary Manually Entered Cash Value Life Insurance Policies Summary (included in Assets) Whole Life Whole Life Tom Insurance Policies Summary (not included in Assets) Jane Individual Term Life Tom Individual Term Life Jane's Employer Term Group Term Jane Tom Jane Annual Premium Cash Value Death Benefit Premium Paid Tom Co-Client of Insured $1,8 $2, $1, Until Insured Dies - 1% Jane Tom Co-Client of Insured - 1% Co-Client of Insured - 1% $336 $4 Jane Co-Client of Insured $75, - 1% $25, Until Policy Terminates $25, Until Policy Terminates Total Death Benefit of All Policies : $675, Social Security Description Value Assign to Goal Social Security Tom will file a normal application at age 66. He will receive $3,589 in retirement benefits at age 66. Social Security Jane will file a normal application at age 66 Years, 6 Months. She will receive $3,589 in retirement benefits at age 66. Fund All Goals Fund All Goals Retirement Income Description Owner Value Inflate? Assign to Goal Pension Income Tom $18, from Tom's Retirement to End of Plan (5% to Survivor) No Fund All Goals Page 147 of 157

164 Compliance Snapshot Liabilities Type Manually Entered Description Owner Outstanding Balance Interest Rate Monthly Payment Boat Boat Loan Tom $15, 8.2% $612 1st Mortgage Mortgage Joint $156, 7.25% $2,162 Total Outstanding Balance : $171, Page 148 of 157

165 Compliance Snapshot Goal Category Description Value Annual Additions Future Value Fund All Goals Investment Tom's 41(k) $32, $12,96 Jane's 43(b) $315, $7,875 Variable Annuity with GMWB $13, Brokerage Account $272,89 $15, Stock Options Valspar $22,455 starting in 218 Other Inheritance from Jane's Mom $25, starting in 225 Lump Sum Distribution $75, $ starting Jane's retirement Retirement Income Social Security Social Security Pension Income Tom will file a normal application at age 66. He will receive $3,589 in retirement benefits at age 66. Jane will file a normal application at age 66 Years, 6 Months. She will receive $3,589 in retirement benefits at age 66. $18, from Tom's Retirement to End of Plan (5% to Survivor) Page 149 of 157

166 Compliance Snapshot Base Inflation Rate Inflation rate : 2.5% Social Security Inflation rate : 2.5% Tax Assumption Inflation rate : 2.5% Marginal Tax Rates Before Retirement Tax Penalty Include penalties in Plan? : Tax Free Earnings - Options Use Tax-Free returns by Asset Class, Marginal Tax Rate to use during Retirement is 4.% Yes Federal Tax Rates : 28.% Untaxed Gain on Taxable Earnings - Before Retirement What portion of your Annual Taxable Investment Earnings will not be taxed until withdrawn? Long Term Capital Gains (LTCG) - Before Retirement State 5.75%.% Local.% What portion of your Taxable Investment Earnings will be taxed at the LTCG rate? Long Term Capital Gains rate : 2.% Use Program estimate Tax Rates During Retirement Let the Program calculate taxes each year Local rate :.% Deduction estimate : Use standard deductions Untaxed Gain on Taxable Earnings - During Retirement What portion of your Annual Taxable Investment Earnings will not be taxed until withdrawn?.% Long Term Capital Gains (LTCG) - During Retirement What portion of your Taxable Investment Earnings will be taxed at the LTCG rate? Long Term Capital Gains rate : 2.% Use Program estimate Taxation of Social Security What portion of Social Security will be taxed? 85.% Page 15 of 157

167 Compliance Snapshot The Risk-Based Portfolio was selected from this list of Portfolios, based upon the risk assessment. The Target Band is comprised of the portfolio(s) that could be appropriate for you, based upon the Risk-Based Portfolio indicated. The Target Portfolio was selected by you. The Average Real Return is equal to the Average Total Return minus the inflation rate of 2.5%. Refer to the Standard Deviation column in the chart below to compare the relative risk of your Current Portfolio to the Target Portfolio. Current Risk Based Target Band Name Cash Bond Stock Alternative Average Return Total Real Standard Deviation Capital Preservation I 5% 67% 28% % 4.42% 1.92% 5.89% Capital Preservation II 5% 57% 38% % 4.83% 2.33% 7.64% Balanced I 4% 51% 45% % 5.1% 2.6% 8.92% Balanced II 4% 42% 54% % 5.46% 2.96% 1.59% Total Return I 4% 35% 61% % 5.81% 3.31% 12.9% Current 11% 23% 67% % 5.89% 3.39% 13.21% Total Return II 3% 25% 72% % 6.27% 3.77% 14.23% Capital Growth I 2% 16% 82% % 6.7% 4.2% 16.26% Capital Growth II % 9% 91% % 7.1% 4.6% 18.2% Equity Growth % % 1% % 7.47% 4.97% 19.8% Efficient Frontier Graph When deciding how to invest your money, you must determine the amount of risk you are willing to assume to pursue a desired return. The Efficient Frontier Graph reflects a set of portfolios that assume a low relative level of risk for each level of return, or conversely an optimal return for the degree of investment risk taken. The graph also shows the position of the Current, Target, Risk-Based, and Custom Portfolios, if applicable. The positioning of these portfolios illustrates how their respective risks and returns compare to each other as well as the optimized level of risk and return represented by the Portfolios. This graph shows the relationship of return and risk for each Portfolio in the chart above. Page 151 of 157