Retirement by Design 1 WHERE AM I TODAY? 5 HOW CAN I STAY ON TRACK? 2 WHERE WOULD I LIKE TO BE? 4 HOW DO 3 CAN. Retirement by Design

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1 PAGE 1 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. 5 HOW CAN I STAY ON TRACK? 4 HOW DO I GET THERE? 1 WHERE AM I TODAY? MY FINANCIAL NEEDS 3 CAN I GET THERE? 2 WHERE WOULD I LIKE TO BE? PAGE 2 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. PAGE 1 OF 15

2 upset great calm concerned fearful uneasy discouraged confident comfortable tense energetic neutral at ease skeptical panic relaxed worked up enthusiastic peaceful uncertain joyous upset terrified aggressive important optimistic frustrated pessimistic frightened encouraged nervous powerless PAGE 3 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. Seminar Overview Your current situation Your vision for retirement Defining your goals Working toward your goals Taxes Preparing for the unexpected Staying on track PAGE 4 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. PAGE 2 OF 15

3 Your Current Situation PAGE 5 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. PAGE 6 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. PAGE 3 OF 15

4 Defining Your Goals PAGE 7 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. Expenses PAGE 8 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. PAGE 4 OF 15

5 Roth IRA Traditional IRA Investments 401(k) Savings Pensions Social Security PAGE 9 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. Rule of 25 40,000 X 25 1 million PAGE 10 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. PAGE 5 OF 15

6 Working toward Your Goals Power of 3 % PAGE 11 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. % Time PAGE 12 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. PAGE 6 OF 15

7 PAGE 13 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. Cost of Waiting 700, , ,000 Portfolio Value at Age , , , , , , ,000 Source: Edward Jones. Assumes investing 450 per month and a 6% average hypothetical annual return. This example doesn t include taxes, fees and commissions, which would reduce the return. Figures rounded to the nearest 5, Age You Begin Investing Source: Edward Jones. Assumes investing 450 per month and a 6% average hypothetical annual return. This example doesn t include taxes, fees and commissions, which would reduce the return. Figures rounded to the nearest 5,000. PAGE 14 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. PAGE 7 OF 15

8 PAGE 15 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. The Potential Benefits of Waiting Portfolio Value 650, , ,000 1,250,000 79,300 Initial Withdrawal from Portfolio (4%) 63,200 Source: Edward Jones. * Assumes Full Retirement Age (FRA) is 67 (for individuals born after 1959). Assumes a 1,250 contribution to 401(k)/IRA at end of every month until retirement, plus a 6.5% average annual return; income rounded to the nearest 100; portfolio values to the nearest 5,000. ^ Based on a formula from gov. Assumes 60,000 salary. Example does not include any cost-of-living adjustment (COLA). Social Security^ 49,700 50,000 42,500 39,600 30,800 26,000 29,300 16,500 18,900 23,600 Age 62 Age 64 Age 67* Age 70 Source: Edward Jones. * Assumes Full Retirement Age (FRA) is 67 (for individuals born after 1959). Assumes a 1,250 contribution to 401(k)/IRA at end of every month until retirement, plus a 6.5% average annual return; income rounded to the nearest 100; portfolio values to the nearest 5,000. ^Based on a formula from Assumes 60,000 salary. Example does not include any cost-of-living adjustment (COLA). PAGE 16 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. PAGE 8 OF 15

9 % Money PAGE 17 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. Be smart with spending Use tax advantages Don t miss out on the employer match Reduce debt PAGE 18 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. PAGE 9 OF 15

10 Aggressive saving, not aggressive investing Smart spending Catch-up contributions PAGE 19 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. % % Return PAGE 20 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. PAGE 10 OF 15

11 Same Contributions, Different Returns, Different Results 1,000,000 7% Average Return 990, , ,000 3% Average Return 405, , , Age Source: Edward Jones. Assumes saving 450 per month, rounded to the nearest 5,000. PAGE 21 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. Source: Edward Jones. Assumes saving 450 per month, rounded to the nearest 5,000. Growth Focus Higher Risk 80 % 20 % Lower Risk Aggressive Growth Growth & Income Income Cash PAGE 22 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. PAGE 11 OF 15

12 Balanced toward Growth Higher Risk 65 % 35 % Lower Risk Aggressive Growth Growth & Income Income Cash PAGE 23 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. The Power of 3 1,000, , , , , , , ,000 % 400,000 % 200,000 Source: Edward Jones. This hypothetical example is for illustrative purposes only and does not reflect the performance of a specific investment. Income based on a 4% initial withdrawal rate. Portfolio values rounded to the nearest 5, Current Strategy Power of Time Power of Money Power of Return Power of 3 Source: Edward Jones. This hypothetical example is for illustrative purposes only and does not reflect the performance of a specific investment. Income based on a 4% initial withdrawal rate. Portfolio values rounded to the nearest 5,000. PAGE 24 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. PAGE 12 OF 15

13 Taxes PAGE 25 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. Power of Tax Deferral 750, , , , , ,000 Source: Edward Jones. Assumes 550 in monthly contributions from age 30 to age 65 and a 7% annual return. Growth in taxable account is taxed at 25% each year. Traditional IRA assumes tax-deductible contributions and is taxed at 25% at end of time horizon. Rounded to the nearest 5,000. Taxable Investment Account Traditional Retirement Plan Source: Edward Jones. Assumes 550 in monthly contributions from age 30 to age 65 and a 7% annual return. Growth in taxable account is taxed at 25% each year. Traditional IRA assumes tax-deductible contributions and is taxed at 25% at end of time horizon. Rounded to the nearest 5,000. PAGE 26 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. PAGE 13 OF 15

14 Which Retirement Account Is Right for You? Traditional IRA Roth IRA Employer-sponsored Retirement Plan PAGE 27 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. Preparing for the Unexpected Cash reserve Access to line of credit Insurance PAGE 28 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. PAGE 14 OF 15

15 PAGE 29 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. Now % Tomorrow Review PAGE 30 OF 32 MKD-7118E-A EXP 30 NOV EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. PAGE 15 OF 15