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1 FINANCIAL WORKBOOK

2 CLIENT PROFILE PERSONAL DETAILS CLIENT #1 CLIENT #2 Name Birthdate Age Home Address City, State, Zip Primary Residence? YES n NO n YES n NO n Home Phone Cell Phone Personal Anniversary Date Social Media Usage n Facebook n LinkedIn n Twitter n Facebook n LinkedIn n Twitter Children s Names n n Birthdate Age n n Birthdate Age n n Birthdate Age n n Birthdate Age n n Birthdate Age Grandchildren s Names n n Birthdate Age n n Birthdate Age n n Birthdate Age n n Birthdate Age n n Birthdate Age M or F WORK DETAILS CLIENT #1 CLIENT #2 Occupation Work Address Work City, State, Zip Work Work Phone Retirement Date Age at Retirement 2

3 WHAT ARE YOUR FINANCIAL CONCERNS / INTERESTS Please rate the following financial concerns or interests. 1=No Concern / Interest 5=Very Concerned / Interested Second Opinion / Financial Health Assessment Creating a Comprehensive Financial Plan Retirement Income and Cash Flow Analysis Social Security Strategies Analysis Current Investment / Portfolio Analysis Reducing Risk / Protecting My Assets Obtaining Higher Return Rates (k) Investment Strategies IRA Rollover Strategies / Roth Conversions Annuity Analysis / Annuity Review Pension Benefits Analysis Reducing Taxes / Tax Return Review Life Insurance Review / Analysis Insurance Needs (LTC, Health, Disability, etc.) Estate, Legacy or Charitable Planning College Planning or Education Analysis Other FINANCIAL CONFIDENCE RANKING On a scale from one to ten, rate the level of your peace-of-mind regarding your investments and finances. Client 1: Client 2: = Things couldn t be worse 10 = Everything is perfect 3

4 BACKGROUND DETAILS MEETING AGENDA CHECKLIST n Review Agenda n Time Allotted n Today s Goal n Open & Candid n Please Ask Questions n Working at Your Pace FOUNDATIONAL QUESTIONNAIRE n Our Style & Notes n Review Our Process 1. Let s review your profile and financial concerns. What would make this a great meeting for you? 2. You ranked your financial confidence as a. Suppose you had a magic wand, what do you think a 10 would look like? 3. Could you tell me more? Could you be more specific? 4. How long have all of your concerns been going on for? 4

5 5. What steps have you taken or tried to take to address this? 6. How have those steps worked out so far for you? Well? Not so well? 7. What do you think this will cost you (time, money, energy, stress)? 8. How is this all affecting you personally or making you feel? 9. Have you considered just leaving things the way they are? 5

6 BACKGROUND DETAILS (CONTINUED) 10. When did you want to address or fix all of this? 11. Who advises you or manages your investments currently? 12. How long has that been for? 13. When you talked to them about your concerns, what did they recommend to address them? 14. What s changed for you that you are now sitting here with me instead of your current advisor? 6

7 15. Does anyone else participate or get involved in helping you make your financial decisions that should be here in this meeting with us? CORE FINANCIAL PRIORITIES In the space below, rank your order of importance for each of the five Core Priorities. Rank your priorities with 1 being your highest priority and 5 being your lowest priority. Use each number only once! Income Preservation Growth Liquidity Legacy Client 1: Client 2: Agreed: Notes: 7

8 1CASH FLOW CURRENT & FUTURE INCOME Cash flow and income planning is a major component of building a successful financial plan. The negative sideeffects of not having enough income can be felt throughout many different areas of your life. CURRENT CLIENT #1 CLIENT #2 CLIENT #1 CLIENT #2 NOTES POST-RETIREMENT Social Security IRA Distributions Investments Trusts Pensions Salary Other Income MONTH TOTAL Current Income Current Budgeted Expenses Current Net Cash Flow ANNUAL TOTAL NOTES Post-Retirement Income Post-Retirement Budgeted Expenses Post-Retirement Net Cash Flow Notes: 8

9 ADDITIONAL CASH FLOW DETAILS 1. What are your current expenses? 2. Are there major changes in expenses in the future (e.g.: college costs, purchasing a second home, automobile, etc.)? If so, how much? Beginning year For how long Beginning year For how long Beginning year For how long Beginning year For how long 3. What steps have you taken or planned to take to increase income to offset inflation? 4. What steps have you taken to implement the recommendations from your Social Security Timing Report? 5. Is income a cause of worry, stress or fear for you now or for the future? Yes No If so, to what degree does it effect you? (Use scale to the right where 1=A little and 5=A lot) EXAMPLE INFLATION COSTS Now 5 years 10 years 15 years 30 years 35,000 41,049 48,145 56,466 91,098 50,000 58,642 68,778 80, ,140 75,000 87, , , , , , , , ,279 * 3.24% inflation rate assumed. If your income isn t listed above, just multiply it by for a rough inflation adjusted estimate in 10 years. Data from inflationdata.com 9

10 2 PRODUCT ALLOCATION FINANCIAL PRODUCT CLASSES & INVESTABLE ASSETS Understanding all of your choices when it comes to choosing financial products or investments is an essential step towards successfully planning your finances and reaching your financial goals. Principal Guaranteed or Insured* Remember that every product has pros and cons and proper use in your planning! Non-Principal Guaranteed or Insured** Checking, Savings, Money Market*** CDs, Treasuries, Fixed Interest Annuities Fixed Index Annuities Cash Value Indexed/ Whole Life Insurance Cash Value Variable Life Insurance Variable Annuities Stocks, Bonds, Mutual Funds, ETFs REITS, Commodities, Options Principal Guaranteed Subtotal + Non-Principal Guaranteed Subtotal % % = Total Investable Assets: HOW MUCH DO YOU WANT OR NEED? For specific expenses in 1 5 years: To have on-hand for emergencies: For specific expenses in 6 10 years: To leave for charities: For specific expenses in years: To never touch or to leave for heirs: * Individual guarantees or insurance vary for each product. ** Financial Professionals must be properly licensed before entering into any discussion regarding the repositioning of assets from one asset class to another. *** While Money Market Funds are not principal guaranteed, we have included them here because of their relatively high level of safety. 10

11 3 TAX CONSIDERATIONS BY QUALIFIED AND NON-QUALIFIED ASSETS IRAs and other investment vehicles can accumulate substantial value along with substantial tax liabilities. Because of this, it often makes sense to look at strategies which may improve your tax efficiency. The Four Categories of Tax Planning* Non-Qualified Qualified Qualified Tax-Free Tax-Free Product or Asset Savings, Checking, CDs, Stocks, Bonds, Mutual Funds, Dividends Non-Qualified Annuities, 401(k) Plans, Qualified Annuities Roth IRA, Roth 401(k), Municipals** Specially Designed Life Insurance Tax Status Taxed on Growth or Taxed on Withdrawal Estate-Taxable Tax-Deferred Growth Taxed on Withdrawal Estate-Taxable Tax-Deferred Growth Tax-Free Withdrawal Estate-Taxable Tax-Deferred Growth Tax-Free Withdrawal Estate Tax-Free Potential Current Amount Total All Assets DO = NOT PRINT IMPORTANT TAX QUESTIONS 1. What is your current tax bracket and filing status? 2. What plans do you have in place to reduce or minimize taxes on your RMDs? 3. What plans do you have in place to reduce or eliminate taxes on your Social Security? 4. What plans do you have for reducing or eliminating taxes on qualified funds and estate to heirs? 5. Have you explored any options for creating tax-free income? Is that something you re interested in? 6. Have you had your tax-returns reviewed recently? 7. Who do you currently work with for taxes? * Qualified Plans (IRAs, TSAs, 401(k)s, etc.) Always consult with a tax professional before making decisions regarding taxes. ** Assumes no premature (before age ) withdrawals. This workbook is designed to gather general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market or recommend any tax plan, legal plan or arrangement. 11

12 4 RISK & RETURN RISK RATIO RULE OF THUMB Your risk ratio is closely related to product allocation. Both are focused on ensuring that you have the right amount of principal guaranteed/non-principal guaranteed money for your age and preferences. Risk Ratio Rule of Thumb: 100 AGE ( ) = % Non-Principal Guaranteed 100 % Non-Principal Guaranteed = % Principal Guaranteed Non-Principal Guaranteed Principal Guaranteed Risk Ratio Reallocation: KEY FACTORS TO CONSIDER WHEN ASSESSING YOUR RISK LEVEL 1. What is your net worth? 2. Is your house paid for? 3. Do you have a pension or guaranteed income sources that meet all/most of your cash flow goals? 4. How long do you expect to live? 5. Do you have life insurance? 6. Do you have LTC insurance? 7. How much of your net worth do you want to leave to beneficiaries when you die? 8. What bothers you more, losing money from taking a risk or losing money from limited upside potential? Financial Professionals must be properly licensed before entering into any discussion regarding the repositioning of assets from one asset class to another. 12

13 5 BASIC RISK ASSESSMENT GROWTH AND RISK EXPECTATIONS It s very common to spend all your time focusing on growth goals but without considering how much risk you are taking. Have you completed a risk versus return analysis? How do you feel about it? Risk Assessment Instructions Using the scale below, circle what level of risk you feel most comfortable with. Not sure? Use the additional risk questions below to help you understand how you approach risk versus reward conceptually. ADDITIONAL GROWTH AND RISK QUESTIONS Principal Guaranteed Money What is your growth goal? % How much are you willing to risk? % Non-Principal Guaranteed Money What is your growth goal? % How much are you willing to risk? % What was your worst loss ever? Reasons For Wanting Guaranteed Money: Reasons For Wanting Non-Guaranteed Money: n More control n Easier for planning n Need higher return n Want higher return n Predictability n Less stressful n Enjoy the excitement n Make up recent losses n Peace of mind n Advice from others n Other n Advice from others n Enjoy the research n Other Notes: 13

14 6 ASSETS & LIABILITIES ASSETS CHECKLIST Total Value Money Assets Checking Savings Money Market Asset Name/ Type/Product CDs Treasuries Fixed Annuities Client #1 Amount () Fixed Index Annuities Client #2 Amount () Cash Value in Life Insurance Q/NQ Variable Annuities Bonds Monthly Contributions Average Return % n n % n n % n n % n n % n n % n n % n n % n n % Stocks Mutual Funds ETFs n n % n n % n n % n n % n n % n n % REITs Options Other Notes LIABILITIES & DEBT CHECKLIST Total Value Liabilities & Debt Credit Cards Line of Credit HELOC Loan Personal Loan Business Student Loans Other Liability Name Type Amount Outstanding Repayment Amount # Years Remaining Interest Rate % % % % % 14

15 7 REAL ESTATE, BUSINESSES & NET WORTH REAL ESTATE CHECKLIST Total Value Real Estate Primary Secondary Vacation Investment Rental Business Residence Residence Home Property Property Property Property Mortgage Mortgage Type/Purpose Value Taxes Other Net Income Are you planning on selling any property in the future? Which When Which When Are you planning on purchasing any property in the future? Which When Which When BUSINESS INTERESTS OR OWNERSHIP Total Value Business Assets Name of Company Original Investment Market Value Ownership % Date Acquired % % % Total Value Total Value Total Value + DO Real Estate + NOT PRINT = Business Liabilities Assets and Debt NET WORTH CALCULATION Total Value Money Assets Total Net Worth: 15

16 8 LONG TERM CARE & HEALTH PLANNING LONG TERM CARE AND HEALTH COVERAGE It s important to be aware of your health and healthcare related costs, as they can significantly impact your finances. Long Term Care Client Type of LTC (Traditional/Combo) Daily Rate # Years Date Purchased Inflation Rider Health Insurance Client Private Provider Private Cost Part B Cost Supp. Provider Supp. Cost Overall Health Client HBP Heart Attack or Bypass Cancer Diabetes Stroke Other Medications Client Medications Purpose Personal Client Height Weight Smoker When Smoker Alcohol 1. Who do you currently work with for LTC insurance? 2. Who do you currently work with for health insurance? 3. Date last reviewed coverages? 4. Check and initial here if LTC coverage was discussed but not interested in purchasing at this time n 16

17 9 LIFE INSURANCE & OTHER INSURANCE LIFE INSURANCE AND OTHER INSURANCE COVERAGE Having the right insurance coverages and having current policies reviewed can be an important step in ensuring the security of your financial well-being for both you and your legacy. STEP 1: CURRENT INSURANCE POLICIES Do you currently have any policies? Yes No STEP 2: COMPARATIVE MARKET REVIEW Have they all been reviewed in the last 6 months? Yes No STEP 3: REVIEW RESULTS You re doing great no changes needed You may lower costs and save money but keep same benefits Your costs stay the same but you may increase your benefits Life Insurance Policy Owner Type Term Payment Last Reviewed Purpose Other Insurance (Umbrella, Disability, Other) Policy Owner Type Term Payment Last Reviewed Purpose 1. Who do you currently work with for life insurance? 2. Who do you currently work with for other insurance? 3. Date last reviewed coverages? 17

18 10 LEGAL DOCUMENTS & ESTATE PLANNING LEGAL DOCUMENTS & ESTATE PLANNING CHECKLISTS The following checklists will help you identify key areas to focus on regarding your legal and estate matters. Legal Documents* DO NOT Client #1 Client PRINT #2 Do You Have A Healthcare Power of Attorney A Financial Power of Attorney A Will A Living Will A Living Trust If you have a trust, is it a Joint Trust A Prenuptual Agreement Yes No Yes No Notes Legal & Estate Planning Questions* Do You Have/Have You Client #1 Client #2 Yes No Yes No Ever been divorced Any dependents with special needs Notes A desire to disinherit any of your children A parent who requires special care A parent you expect to care for in the future Any joint accounts with parents Any joint accounts with children Any expectations of an inheritance A desire to help a charity Ever been a Veteran Calculated your potential estate tax 1. Who do you currently work with on legal matters? 2. Date last reviewed legal documents? * Always consult with an attorney before making decisions regarding legal documents. This workbook is designed to gather general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan, legal plan or arrangement. 18

19 DISCOVERED GOALS & NEXT STEPS DISCOVERED GOALS If we improve your finances, how would that make you feel? 1 2 Less Stressed More Confident 3 Happier 4 In Charge 5 Empowered 6 7 Fulfilled Prouder 8 Sleep Better WORKBOOK COMPLETION ACKNOWLEDGEMENT This workbook was completed based on information I provided to the agent or adviser taking me through the process. This information may be incomplete because I either would not provide the information or did no have the information readily available. Client Signature Date Agent or Adviser Signature Date 19

20 VFM, LLC 666 Rev 02-16