SAMPLE GOAL ACHIEVEMENT REPORT. George & Martha Washington. July 4 th, th Avenue W., Suite 103 Seattle, WA 98119

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1 GOAL ACHIEVEMENT REPORT George & Martha Washington July 4 th, 2015 Prepared by: John G. Roeller, CFP th Avenue W., Suite 103 Seattle, WA direct fax Member FINRA/SIPC

2 Goal Achievement Report Prepared for George and Martha Washington Nov 24, 2015 Prepared by John G. Roeller, CFP LPL Financial th Avenue W Suite 103 Seattle, WA john.roeller@lpl.com Sections 1. What Is My Plan? The resources and goals included in your Goal Achievement Plan 2. Can I Afford My Goals? Analysis of your Household Balance Sheet in today s dollars. 3. Can I Afford My Three Goal Levels? Analysis of your Household Balance Sheet with a side-by-side comparision of your three goal funding levels: Necessary, Target and Aspirational. 4. How Do I Pay for My Retirement? Year by year analysis of your cash flows during household retirement. Funding your Target Goal Level 5. Additional Notes

3 What Is My Plan? Prepared for George and Martha Washington Nov 24, 2015 These are the Resources and Goals that have been included in your Goal Achievement Plan and are the basis for the analysis on the following page(s). Your Resources Anticipated Benefits Amount Start Date End Date George Social Security $1,200/mo Jul, 2023 Ongoing 1 Martha PERS II $1,750/mo May, 2022 Ongoing 1 Martha Social Security $1,200/mo May, 2024 Ongoing 1 Anticipated Savings Amount Start Date End Date Chas College Fund $150/mo Nov, 2015 May, 2030 Deedee College Fund $150/mo Nov, 2015 May, 2031 George and Martha Savings $500/mo Nov, 2015 May, 2045 Martha Retirement Savings $500/mo Nov, 2015 Jun, 2021 Current Value George's 401(k) $275,000 Martha's 403(b) $200,000 Martha's Roth IRA $75,000 Brokerage/Savings Accounts Current Value Chas Washington 529 $100,000 Deedee Washington 529 $25,000 George and Martha Checking & $50,000 Savings George and Martha Investments $275,000 Principal Household Members George Washington Male Age 59 Date of Birth: Jul 4, 1956 Retirement Age: 65 (Jul, 2021) Tax Filing Status: Married Filing Jointly Effective Tax Rate: 28.00% Long Term Capital Gains Rate: 15.00% Plan FAQ Where is my current income and expenses? Anticipated Savings represents the money that you plan to save after paying for your preretirement living expenses including mortgage(s), debt payments, utilities, etc. Why are there 3 amounts for each Goal? The Necessary Amount represents what you need to fund before funding anything else. The Target Amount represents the plan you expect to follow. The Aspirational Amount represents what you would like to fund if enough resources are available. Goals One-Time Goals Necessary Amount Target Amount Aspirational Amount Earliest Date Target Date Latest Date Home Remodel $10,000 $15,000 $40,000 Jun, 2014 Jun, 2016 Jun, 2020 Recurring Goals Necessary Amount Target Amount Aspirational Amount Start Date End Date Annual Vacation $3,500/yr $5,000/yr $10,000/yr Nov, 2015 Jun, 2047 Chas' College $18,000/yr $20,000/yr $40,000/yr Aug, 2031 Aug, 2035 Deedee's College $10,000/yr $15,000/yr $25,000/yr Aug, 2032 Aug, 2036 Retirement Expense $7,000/mo $10,000/mo $15,000/mo Jul, 2021 Jul, These end dates are based on an actuarial table of life expectancy with the amounts reduced by the probability of survival in each year. 2. The expected retirement date of the Principal Household Member who is retiring last. prepared by John G. Roeller, CFP john.roeller@lpl.com LPL Financial Page 1

4 Can I Afford My Goals? Prepared for George and Martha Washington Nov 24, 2015 Your Necessary Goal Level appears to be fully funded. You may need to add additional savings or revisit your goal plan to address the funding deficit for the other Goal Levels. Resources Balance Sheet Value 1 Anticipated Benefits $556,125 Martha PERS II $321,728 Martha Social Security $126,658 George Social Security $107,739 Anticipated Savings $165,469 George and Martha Savings $103,407 Deedee College Fund $22,117 Chas College Fund $21,042 Other Future Savings $18,903 $361,535 George's 401(k) $170,035 Martha's 403(b) $124,000 Martha's Roth IRA $67,500 Brokerage/Savings Accounts $447,938 George and Martha Investments $272,938 Chas Washington 529 $100,000 George and Martha Checking & $50,000 Savings Deedee Washington 529 $25,000 Total Resources $1,531,067 Household Savings Anticipated Savings Rate(s) George and Martha Savings $500/mo from Deedee College Fund $150/mo from Chas College Fund $150/mo from Martha Retirement Savings $500/mo from Additional Savings Needed 3 Target Goal Level $3,060/mo until 2021 Aspirational Goal Level $13,193/mo until 2021 Household Balance Sheet Resources $2,250,000 $2,000,000 $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 $0 Goal Levels Funding Percent by Goal Level Goals Balance Sheet Value 2 Necessary Goal Level $1,303,344 Retirement Expense $1,125,416 Annual Vacation $70,227 Chas' College $63,827 Deedee's College $35,219 Home Remodel $8,656 Target Goal Level $1,722,115 Retirement Expense $1,495,971 Annual Vacation $94,462 Chas' College $69,050 Deedee's College $47,966 Home Remodel $14,666 Aspirational Goal Level $2,354,799 Retirement Expense $1,979,354 Annual Vacation $161,183 Chas' College $107,734 Deedee's College $66,529 Home Remodel $40,000 Total Goals $2,354,799 Total Funding Deficit ($823,732) Goal Level Cost of Goals Resources Available Surplus/(Deficit) Funding % Necessary $1,303,344 $1,531,067 $227, % Target $1,722,115 $1,531,067 ($191,048) 88.9% Aspirational $2,354,799 $1,531,067 ($823,732) 65.0% This table shows the percentage of Resources that are available to fund the cumulative cost of each Goal Level (for example funding the Target Level includes funding the Necessary Level). 1. Anticipated Savings and Anticipated Benefits are calculated as present value using a discount rate of 3.2%, and an annual Inflation may be applied by your Advisor. For investment accounts, a transaction cost of 1.0% is applied to all non-cash holdings. For retirement accounts, early withdrawal penalties are applied if the Account Owner is less than 59.5 years of age. For tax-deferred retirement accounts, deferred taxes are deducted. 2. Present value calculated using discount rates of 3.2% for the Necessary Goal Level, 5.0% for the Target Level and 6.8% for the Aspirational Level. An annual Inflation may be applied by your Advisor. 3. Cumulative additional savings needed is calculated as a monthly contribution of after-tax dollars starting now and ending at the Retirement Date of the Principal Household Member who is retiring last. It includes 2.5% annual Inflation. prepared by John G. Roeller, CFP john.roeller@lpl.com LPL Financial Page 2

5 Can I Afford My Goals? Prepared for George and Martha Washington Nov 24, 2015 Your Necessary Goal Level appears to be fully funded. You may need to add additional savings or revisit your goal plan to address the funding deficit for the other Goal Levels. Your Resources 1 Balance Sheet Value: $1,531,067 The Balance Sheet Value represents the current purchasing power of your present resources and projected future resources listed to the right. This amount is compared below to the cost of each of your goal levels estimated in today s dollars. Funding by Goal Level 2 Necessary Goal Level (What I Need) Retirement Expense $1,125,416 Annual Vacation $70,227 Chas' College $63,827 Deedee's College $35,219 Home Remodel $8,656 Total Cost $1,303,344 Total Resources Available $1,531,067 Funding Surplus $227,723 Funding Percent 117.5% Anticipated Benefits Martha PERS II $321,728 Martha Social Security $126,658 George Social Security $107,739 Total $556,125 Anticipated Savings George and Martha Savings $103,407 Deedee College Fund $22,117 Chas College Fund $21,042 Other Future Savings $18,903 Total $165,469 Target Goal Level (What I Want) Retirement Expense $1,495,971 Annual Vacation $94,462 Chas' College $69,050 Deedee's College $47,966 Home Remodel $14,666 Total Cost $1,722,115 Total Resources Available $1,531,067 Funding Deficit ($191,048) Funding Percent 88.9% Additional Savings Needed 3 $3,060/mo until 2021 George's 401(k) $170,035 Martha's 403(b) $124,000 Martha's Roth IRA $67,500 Total $361,535 Brokerage/Savings Accounts George and Martha Investments $272,938 Chas Washington 529 $100,000 George and Martha Checking & $50,000 Savings Deedee Washington 529 $25,000 Total $447,938 Aspirational Goal Level (What I Wish For) Retirement Expense $1,979,354 Annual Vacation $161,183 Chas' College $107,734 Deedee's College $66,529 Home Remodel $40,000 Total Cost $2,354,799 Total Resources Available $1,531,067 Funding Deficit ($823,732) Funding Percent 65.0% Additional Savings Needed 3 $13,193/mo until Anticipated Savings and Anticipated Benefits are calculated as present value using a discount rate of 3.2%, and an annual Inflation may be applied by your Advisor. For investment accounts, a transaction cost of 1.0% is applied to all non-cash holdings. For retirement accounts, early withdrawal penalties are applied if the Account Owner is less than 59.5 years of age. For tax-deferred retirement accounts, deferred taxes are deducted. 2. Present value calculated using discount rates of 3.2% for the Necessary Goal Level, 5.0% for the Target Level and 6.8% for the Aspirational Level. An annual Inflation may be applied by your Advisor. 3. Cumulative additional savings needed is calculated as a monthly contribution of after-tax dollars starting now and ending at the Retirement Date of the Principal Household Member who is retiring last. It includes 2.5% annual Inflation. prepared by John G. Roeller, CFP john.roeller@lpl.com LPL Financial Page 3

6 How Do I Pay for My Retirement? Prepared for George and Martha Washington Nov 24, 2015 Sources of Funding by Year for your Target Goal Level 1 This chart shows the total amount needed to fund your goals and the sources of funding in each year of your retirement. Retirement Period : The Household is assumed to be retired when all of the Principal Household Members are retired. George Washington is expected to live until age 81 in 2037, which is the last year of this cash flow projection. Account Balances by Year based on funding your Target Goal Level 2 This chart shows the total balance of all of your Household Accounts over your retirement years. Brokerage/Savings Accounts Anticipated Savings (Income such as a part-time job) Anticipated Benefits (Social Security, Pensions, Annuities) Funding Deficit Brokerage/Savings Accounts 1. Estimated total yearly outflows to fund goals and the impact of estimated taxes, transaction costs and early withdrawal penalties (if any). 2. Estimated end-of-year balances of household accounts reflecting an increase in account values based on selected goal discount rates, as well as the impact of estimated taxes, transaction costs, early withdrawal penalties (if any) and net cash flows into/out of accounts. prepared by John G. Roeller, CFP john.roeller@lpl.com LPL Financial Page 4

7 Disclaimer Prepared for George and Martha Washington Nov 24, 2015 This report is intended to provide you with an analysis of your major financial goals. It is based on the data and assumptions you have provided or instructed us to make. Consequently, the outcome of the analysis will be dependent upon the accuracy of your data and reasonableness of your assumptions. Assumed rates of return may also either be assigned by your Adviser, or if utilizing Asset Allocation, be based on the historical returns of the benchmark indexes for the asset class. Please review all assumptions before reviewing the rest of the report to ensure the accuracy and reasonableness of the assumptions. Inaccurate or unreasonable assumptions may materially impact the results of the plan. It is important to note that actual results may differ due to any number of events. Some events are within your control, such as your spending habits, while other events, such as market performance, interest rates and tax policies, are not. To the extent that any of the referenced assets represent current account holdings there is no guarantee that these rates will be achieved. In addition, we have made no attempt to review your property and liability insurance policies (auto and homeowners, for example). We strongly recommend that in conjunction with this financial plan, you consult with your property and liability agent to review your current coverage to ensure it continues to be appropriate. In doing so, you may wish to review the dollar amount of your coverage, the deductibles, the liability coverage (including an umbrella policy), and the premium amounts. While assumptions are based on historical index data, past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Assumed rates of return are hypothetical which do not reflect the deduction of fees and charges inherent to investing in securities are not representative of any specific securities. Your results will vary. Growth assumptions for business assets and stock options are speculative and should be discussed and agreed upon by you and your financial advisor. Assumed rates of return and standard deviation assumptions used in the Monte Carlo analysis are based on historical asset class return data. LPL Financial does not provide tax or legal advice. The information contained in this report should be used for informational purposes only. The appropriate professionals should be consulted on all legal and accounting matters prior to or in conjunction with implementation of the plan. prepared by John G. Roeller, CFP LPL Financial Page 5