Questionnaire. Financial 360 plan. Financial planning offered through VALIC Financial Advisors, Inc. (VFA) 1 of 26

Transcription

1 Questionnaire Financial 360 plan Financial planning offered through VALIC Financial Advisors, Inc. (VFA) 1 of 26

2 Financial Advisor Information Questionnaire date: Region name: Financial advisor number: First name: Last name: Alternate mailing address: Client Personal Information Client Partner 1. Client ID or SSN: 2. First name: 3. Middle initial: 4. Last name: 5. Date of birth: MM/DD/YYYY MM/DD/YYYY 6. Gender: Male Female Male Female 7. U.S. citizen: Yes No Yes No 8. Marital status: Married Single Separated Divorced Widowed Domestic partner 9. Street address: CITY STATE ZIP 10. Home phone: 11. Work phone: 12. Home fax: 13. Work fax: 14. address: Module Selection Check any of the optional modules listed below to have them included in the Financial 360 analysis. Be sure to provide answers to the sections of this questionnaire that are needed for these modules: Net Worth pages 3 4 (Investment assets), page 5 (Other assets) and page 6 (Liabilities); Disability insurance - page 19; Life insurance - page 21 (Dependent children), page 19 (Life insurance assumptions) and page 20 (Life insurance policies; Long-term care page 21; Estate pages 22 (Insurance) and 23 (Estate). If the Life insurance or Estate module is selected, the Net Worth module is required as well. Net worth Disability insurance Life insurance Long-term care Estate Please mail questionnaire to VALIC, Greenbriar Plaza Dr., Houston, TX or fax to (281) of 26

3 Investment Assets Retirement Assets - Current and Former Employer Savings Plans Note: Enter all assets that should be considered in the analysis. Do not include any assets held for an emergency, or for any discretionary goal occurring within the next five years. Client Owner Partner Asset Type Current Employer Former Employer Retirement Savings Plan Type 403(b) trad l 403(b) Roth Roth TSA ORP 403(b) trad l 403(b) Roth Roth TSA ORP 403(b) trad l 403(b) Roth Roth TSA ORP 403(b) trad l 403(b) Roth Roth TSA ORP 403(b) trad l 403(b) Roth Roth TSA ORP 403(b) trad l 403(b) Roth Roth TSA ORP 401(k) trad l 401(k) Roth 401(a) Keogh SEP SIMPLE 401(k) trad l 401(k) Roth 401(a) Keogh SEP SIMPLE 401(k) trad l 401(k) Roth 401(a) Keogh SEP SIMPLE 401(k) trad l 401(k) Roth 401(a) Keogh SEP SIMPLE 401(k) trad l 401(k) Roth 401(a) Keogh SEP SIMPLE 401(k) trad l 401(k) Roth 401(a) Keogh SEP SIMPLE Advisor use only - Based on its name or symbol, each client investment is automatically classified using a securities database. If the client has a nonstandard asset for which you would like to provide an asset classification, please select from the asset classes below, and place the corresponding letter in the advisor use column: (A) Cash (D) Small-cap Equities (G) Large-cap Value Equities (J) REITs (M) Commodities (B) Long-term Bonds (E) High-yield Bonds (H) Large-cap Growth Equities (K) TIPS (C) Mid-cap Equities (F) Short-term Bonds/Fixed Annuities (I) International Equities (L) Munis 3 of 26 Institution Name* (optional) Asset Name Institution Name (optional): Institution Name (optional): Ticker or CUSIP Value Do Not Sell Same as above Institution Name (optional): Same as above Institution Name (optional): Same as above Institution Name (optional): Same as above Institution Name (optional): Same as above ** ADD ADDITIONAL CURRENT/FORMER EMPLOYER RETIREMENT ASSET PAGES AS NEEDED ** Advisor Use Only * Institution Name is an optional field that allows you to categorize assets so they will be grouped together in the assets display - either by institution name or by employer group. For example, if the client has two 403(b) plans, this category will allow you to distinguish between them. Alternatively, if the client has multiple accounts at the same employer, this field will allow you to separate the accounts.

4 Investment Assets Retirement Assets - Personal Savings Plans Institution Name* Owner Retirement Savings (optional) Plan Type Client Partner Asset Name Ticker or CUSIP Value Do Not Sell Advisor Use Only Traditional IRA Roth IRA NQDA/Other Institution Name (optional): Traditional IRA Roth IRA NQDA/Other Institution Name (optional): Same as above Traditional IRA Roth IRA NQDA/Other Institution Name (optional): Same as above Traditional IRA Roth IRA NQDA/Other Institution Name (optional): Same as above Traditional IRA Roth IRA NQDA/Other Institution Name (optional): Same as above Traditional IRA Roth IRA NQDA/Other Institution Name (optional): Same as above Traditional IRA Roth IRA NQDA/Other Institution Name (optional): Same as above * Institution Name is an optional field that allows you to categorize assets so they will be grouped together in the assets display - either by institution name or by employer group. For example, if the client has multiple IRAs or CDs, this category will allow you to distinguish between them. Alternatively, if the client has multiple accounts at the same employer, this field will allow you to separate the accounts. Advisor use only - Based on its name or symbol, each client investment is automatically classified using a securities database. If the client has a nonstandard asset for which you would like to provide an asset classification, please select from the asset classes below, and place the corresponding letter in the advisor use column: (A) Cash (D) Small-cap Equities (G) Large-cap Value Equities (J) REITs (M) Commodities (B) Long-term Bonds (E) High-yield Bonds (H) Large-cap Growth Equities (K) TIPS (C) Mid-cap Equities (F) Short-term Bonds/Fixed Annuities (I) International Equities (L) Munis 4 of 26

5 Investment Assets Non-retirement Assets Owner Institution Name* (optional) Client Partner Joint Asset Name Ticker or CUSIP Value Cost Basis Do Not Sell Advisor Use Only Institution Name (optional): Institution Name (optional): Same as above Institution Name (optional): Same as above Institution Name (optional): Same as above Institution Name (optional): Same as above Institution Name (optional): Same as above Institution Name (optional): Same as above * Institution Name is an optional field that allows you to categorize assets so they will be grouped together in the assets display - either by institution name or by employer group. For example, if the client has two 403(b) plans, this category will allow you to distinguish between them. Alternatively, if the client has multiple accounts at the same employer, this field will allow you to separate the accounts. ** ADD ADDITIONAL CURRENT/FORMER EMPLOYER RETIREMENT ASSET PAGES AS NEEDED ** Advisor use only - Based on its name or symbol, each client investment is automatically classified using a securities database. If the client has a nonstandard asset for which you would like to provide an asset classification, please select from the asset classes below, and place the corresponding letter in the advisor use column: (A) Cash (D) Small-cap Equities (G) Large-cap Value Equities (J) REITs (M) Commodities (B) Long-term Bonds (E) High-yield Bonds (H) Large-cap Growth Equities (K) TIPS (C) Mid-cap Equities (F) Short-term Bonds/Fixed Annuities (I) International Equities (L) Munis 5 of 26

6 Other Assets (To be completed only if the Life insurance or Net Worth module is selected) Asset Type Description (optional, see help text below) Client Partner Joint Residence Vacation property Automobiles personal asset Life insurance cash value* Residence Vacation property Automobiles personal asset Life insurance cash value* Residence Vacation property Automobiles personal asset Life insurance cash value* Residence Vacation property Automobiles personal asset Life insurance cash value* Residence Vacation property Automobiles personal asset Life insurance cash value* Residence Vacation property Automobiles personal asset Life insurance cash value* Residence Vacation property Automobiles personal asset Life insurance cash value* Net value of business Intangible asset Illiquid asset business asset Net value of business Intangible asset Illiquid asset business asset Net value of business Intangible asset Illiquid asset business asset Net value of business Intangible asset Illiquid asset business asset Net value of business Intangible asset Illiquid asset business asset Net value of business Intangible asset Illiquid asset business asset Net value of business Intangible asset Illiquid asset business asset * Life insurance cash value will not be used to fund goals if a client plans to use their life insurance cash value(s) to fund any goal, enter these assets as Non-retirement assets on the Investment assets page, with an allocation of 100% cash. If the client has pre-retirement goals and plans to use the cash value to fund only retirement goals, enter the assets as a Personal Retirement Plan with a Plan Type of NQDA/Other. Do not enter the same life insurance cash value on this Other Assets page, as it will be double counted on the Net Worth statement. Other Assets Help Type Description Joint ** ADD ADDITIONAL OTHER ASSETS PAGES AS NEEDED ** Other personal assets: Include the current market value of personal items such as furniture, clothing, jewelry, furs, etc. Net value of business: Include the market value of your business interests, net of any outstanding liabilities that would have to be satisfied were you to sell them. Include partnership interests you may have. Intangible business assets: Include the economic value of a right or non-physical asset that you own. Intangible assets include copyrights, patents, trademarks, computer programs, licenses, franchises or exploration permits, etc. Do not include the value of any assets that are already included in the Net value of business above. llliquid assets: Include investments not readily convertible into cash, such as a stock, bond or commodity that is not traded actively and would be difficult to sell quickly without taking a loss. Do not include real estate or investment property here. If assets are not business-related, enter value under Other Personal Assets. Description is only required if you have two or more assets of the same type. However, you may also use it if you want to be more specific in naming the asset. The description will be used as a detail line under the category type (for example, Ford under the Automobiles category). Enter assets held as joint owners, such as joint tenancy with a right of survivorship or community property. 6 of 26

7 Liabilities (To be completed only if the Life insurance or Net Worth module is selected) Liability Type Description (optional, see help text below) Client Partner Joint Mortgage (residence) Mortgage (vacation property) Mortgage (investment property) Auto loan Education loan Mortgage (residence) Mortgage (vacation property) Mortgage (investment property) Auto loan Education loan Mortgage (residence) Mortgage (vacation property) Mortgage (investment property) Auto loan Education loan Mortgage (residence) Mortgage (vacation property) Mortgage (investment property) Auto loan Education loan Mortgage (residence) Mortgage (vacation property) Mortgage (investment property) Auto loan Education loan Mortgage (residence) Mortgage (vacation property) Mortgage (investment property) Auto loan Education loan Mortgage (residence) Mortgage (vacation property) Mortgage (investment property) Auto loan Education loan Mortgage (residence) Mortgage (vacation property) Mortgage (investment property) Auto loan Education loan Home equity loan Personal loan loan Credit card balance Home equity loan Personal loan loan Credit card balance Home equity loan Personal loan loan Credit card balance Home equity loan Personal loan loan Credit card balance Home equity loan Personal loan loan Credit card balance Home equity loan Personal loan loan Credit card balance Home equity loan Personal loan loan Credit card balance Home equity loan Personal loan loan Credit card balance Liabilities Help Type Description ** ADD ADDITIONAL LIABILITIES PAGES AS NEEDED ** Mortgage: The remaining balance of the mortgage on the primary residence or vacation home(s). Home equity loan: The current outstanding balance on an equity loan, second mortgage, or outstanding home equity line of credit. Don t include the amount of a line of credit that has not been accessed. Credit card balance: The current balance of any credit card debt that is carried from month-to-month. Description is only required if you have two or more liabilities of the same type. However, you may also use it if you want to be more specific in naming the liability. The description will be used as a detail line under the category type (for example, Chevrolet under the Auto loans category). 7 of 26

8 Personal Information Pre-retirement earnings: $ $ Salary growth rate: % % Retirement year: s in retirement: Tax Information (This information must be completed) Effective tax rate: % Future tax rate: % Future tax rate year: Assumptions Client prefers assets be spent in retirement as follows: Current Expenses (To be completed only if the Life Insurance module is selected) Select method to calculate current expenses: Client Partner Help Estimate (total current income - total annual savings) Enter expenses below ly pay, before taxes, from employment. Include overtime, bonuses or commissions that will be received on a regular basis each year. If self-employed, enter the annual net self-employment income (gross receipts less expenses). Do not include pension or Social Security income. If the individual is already retired, enter any post-retirement earnings on the income section. The average annual rate at which the salary is expected to grow between 0 and 15 percent. The year in which the individual plans to retire. Essential retirement needs and healthcare goals will start in the earlier of client s or partner s retirement year. Retirement assets will not be used to fund goals that occur in years prior to their owner s retirement unless there is a shortfall, at which time the system will spend Roth assets. If already retired, enter the current year. If the partner does not work outside the home, enter the current year or a prior year as the partner s retirement year only if the client is already retired. Otherwise, enter the year in which the client will retire for both the client s and partner s retirement year. The essential retirement income and healthcare needs will exist as long as someone is still living, although if there is a partner, the retirement income need will decrease by 20% at the first death, while the healthcare need will decrease by half at the first death. The estate goal will occur in the year following the last death. (Must be at least five years for client or partner.) The Effective Tax Rate equals the tax divided by income. For example, if the total income tax bill is $100, and the income is $1,000, then the Effective Tax Rate is 10%. This tax rate is used to calculate taxes on taxable income, non-retirement asset growth, and withdrawals from the retirement portfolio. This is the effective tax rate that will be used starting with the Future Tax Rate. This future tax rate allows for a change in the tax rate that may occur when, for example, the client retires. s beginning with the year entered here will use the Future Tax Rate. s before this year will use the Effective Tax Rate. This can be used to represent retirement or a similar change in tax circumstances. Spend non-retirement assets first Spend non-retirement assets first, but leave a minimum balance of Spend retirement assets first Current expenses are used in the Life insurance analysis. Estimating expenses based on Total current income - total savings assumes that everything that is not already applied toward savings entered on the Annual Savings tab is spent. For example, if income totals $50,000, and retirement plan savings is $5,000, this selection assumes that the difference of $45,000 all goes to current living expenses (including taxes). If this is not the case, please select to input the specific debt and other living expenses provided for below. Expenses entered here will be used in the Life Insurance analysis. If the mortgage expense extends into retirement and no additional goals have been added in the Goals section, the mortgage expense will also be used to create a goal to pay off the mortgage. Total annual primary residence mortgage payments: s remaining on mortgage: $ per year years Total other debt payments: $ per year Total living expenses, excluding debt payments: $ per year Include what is paid annually for primary residence mortgages. Include homeowner s credit line. Exclude any investment or vacation property mortgage payments. Do not include taxes and insurance. If the full mortgage payment is entered and it includes taxes and insurance, don t include these expenses in the Total living expenses line below. Include what is paid annually for primary residence mortgages. Include homeowner s credit line. Exclude any investment or vacation property mortgage payments. Do not include taxes and insurance. If the full mortgage payment is entered and it includes taxes and insurance, don t include these expenses in the Total living expenses line below. Enter the total for auto loan payments, auto lease payments, debt service on credit cards, other loan payments, and mortgage payments on property other than the primary residence. Enter annual amounts. Enter total living expenses such as rent, utilities, clothing, current education costs, food, income taxes, travel, entertainment, etc. Exclude debt payments as these are already accounted for. Do not include annual savings. 8 of 26

9 Risk Tolerance Your responses will help determine what investment sample mix is appropriate for your risk tolerance. A Risk Tolerance must be selected for each time period entered to process a client report. Up to five different periods and corresponding risk tolerances may be selected. This allows the client s risk tolerance to change over time, for instance, by becoming more conservative. When the Duration of a period is entered, the system will calculate when the next period will start. Remember that in the analysis the modeled allocation will change when the risk changes. Sequential periods may not have the same risk tolerance [unless they have a different desired rate of return (RoR)]. Risk Tolerance Period Start Duration (years) Very Cons. Cons. Mod. Cons. Mod. Mod. Aggr. Aggr. Very Aggr. Optional: Desired Rate of Return 1. (current year) % 2. % 3. % 4. % 5. % Risk Tolerance Help Duration Risk tolerance Base on risk tolerance Desired rate of return The number of years during which the selected risk tolerance (and suggested allocation) is applicable. If the duration exceeds the number of years remaining until the death of the last to die, to end will be substituted. A suggested portfolio is usually designed based on the questions answered regarding risk tolerance. If the optional Desired RoR is entered, the suggested portfolio will be based on that data instead. The number of years during which the selected risk tolerance (and suggested allocation) is applicable. If the duration exceeds the number of years remaining until the death of the last to die, to end will be substituted. A suggested portfolio is usually designed based on the responses to risk tolerance questions. However, if your client would like to model a specific rate of return, enter it here. This rate must be no lower than 2.4% and no higher than the expected return of the very aggressive portfolio. If possible, a suggested portfolio which generates the rate of return requested with the least amount of risk will be modeled. Two sequential time periods may not have the same Desired RoR, even if they have different risk tolerances. Risk Tolerance Descriptions Very Conservative Conservative Moderately Conservative Moderate Moderately Aggressive Aggressive Very Aggressive The client s main goal is principal protection and liquidity. In order to minimize a decline in principal, the client will accept lower returns. While protection of principal is very important, the client can accept small, short-term declines in value in order to potentially achieve some portfolio growth. Although protection of principal is an objective, the client is seeking higher returns with minimal risk and can tolerate some volatility. The client is willing to accept some fluctuations of principal in order to potentially achieve a better return. The client is willing to tolerate greater fluctuations in principal value in an attempt to achieve an even higher return. The client is seeking high returns and is willing to accept much greater fluctuations in principal value for an opportunity to achieve long-term gains. The client is seeking maximum returns and will accept substantial fluctuations in principal value to achieve long-term gains. 9 of 26

10 Goals This list should include all the financial goals the model should consider. Description Check the Box if Essential Need Start Duration (s) or End Annual Cost (in today s after-tax dollars) Desired Amount Optional: Acceptable Minimum Rate of Increase Check the Box to Peg to Inflation or % To meet essential retirement income need To meet future healthcare expenses $ % $ % To meet an estate goal N/A $ % Additional Goals To $ % To $ % To $ % To $ % To $ % Goals Help Description Essential needs Start year Duration End year Desired amount Acceptable minimum Peg to inflation Rate of increase (%) This describes the goal. All Description entries must start with To. Enter an appropriate description, such as To educate children, To fund a wedding, or To purchase a boat. Essential Needs are expenses in retirement that are considered necessary for day-to-day living, such as housing, food, clothing, transportation and medical care. Since these must be met, as opposed to would be nice to have, they are analyzed separately from the other goals. This will enable you to present the client with a clear idea of the probability that their most important goals will be met during retirement, without non-essential goals affecting the outcome. The year in which the goal starts to be an expense. If the expense started prior to the current year, enter the current year. The number of years the goal will be an expense. The final year in which the goal is an expense. You cannot enter a year prior to the current year. The goal s annual cost in today s after-tax dollars. The default value for the essential retirement income need is 80% of earnings (less estimated current taxes). For the healthcare need, the default cost is the average annual expenditure for healthcare for households age 65 and over. Source: U.S. Bureau of Labor Statistics. The lowest amount the client would be willing or able to live with for this goal. If this is truly a discretionary goal, enter $0. This field is for informational purposes only. It is not required. It will not affect calculations or appear in the report, but may be used to guide goal amounts in the What-if scenarios. If this box is checked, the healthcare goal will use the system s healthcare inflation rate defined at the bottom of this screen. Any other goal will use the system s inflation rate, also found at the bottom of this screen. If the Duration of the goal is more than one year, this is the rate at which the goal expense will increase each year. 10 of 26

11 Income Enter any income expected during retirement that can be applied to goals, including Social Security, pensions, annuities and other income. Other incomes are income streams or one-time events received during retirement. Examples include rental income, part-time work during retirement, or a gift or inheritance. Any income source entered here is used to meet client goals. If the income starts before it is needed for a goal, it is invested as savings and used for future goals. Do not include pre-retirement earnings from a current job; these should be entered on the Personal page. Social Security Start Annual Cost (in today s dollars) Monthly or Annual Check the Box to Peg to Inflation Rate of Increase or % Client Social Security retirement benefits $ % Partner Social Security retirement benefits $ % Social Security Help Start year Amount Peg to inflation Rate of increase % The year the income starts. If it started prior to the current year, enter the current year. If this is left blank, the system will estimate a value based on current earnings, retirement age, and birth date. Checking the Peg to Inflation box will result in Social Security increasing by Social Security inflation rate. If the box is not chosen, the rate entered will not change in future reruns unless it is changed manually. When the Duration of the income is more than one year, this is the rate at which the income stream will increase each year. 11 of 26

12 Income (continued) Owner Pension Clt. Ptr. Start Amount Monthly or Annual Taxable Rate of Increase Check the Box to Peg to Inflation OR enter a percent (%) OR enter a dollar ($) amount % to Survivor Government Pension not covered by S.S. Annual pension description: $ % $ % $ % $ % $ % $ % Lump-sum pension description: Pension Help Description Start year Duration End year Amount Taxable Peg to inflation Rate of increase % Rate of increase $ Pension % to survivor Gov t. pension This assigns a name to each source of income used to help meet goals. The year the income starts. If it started prior to the current year, enter the current year. The number of years the income will be received. The year in which the income ends. A year prior to the current year may not be entered. These amounts may be in the form of a monthly or annual benefit or a lump-sum payment (entered as an annual amount with a duration of one year). Enter the amount in future-year dollars for the first year in which the pension will be received. (For tax purposes, it is assumed that lump-sum pensions will be rolled over to an IRA where they will grow tax deferred until they are withdrawn, at which point they will be taxed.) If this box is checked the Effective Tax Rate or Future Tax Rate from the Personal tab will reduce income amounts to reflect taxes. Generally, annual pensions or part-time income would be entered as taxable, while an inheritance would not. Lump-sum pensions are assumed to be rolled into an IRA and grow there tax deferred until withdrawal, at which point they are taxable. Checking this box will increase income streams each year by the inflation rate listed at the bottom of the screen. When the Duration of the income is more than one year, this is the rate at which the income stream will increase each year. When the Duration of pension income is more than one year, this is the constant dollar amount by which the income stream will increase each year. This field is only applicable to pensions. It can be used to enter the rate of increase for a pension that has a simple COLA as opposed to a compounding COLA. For example, the pension COLA is 3% of the first $12,000 of pension income, and the recipient receives $15,000 of pension income. Thus, the increase will be a straight $360 each and every year (3% of $12,000 equals $360) and the increase can be entered here as a dollar amount. Enter the percentage of the client s pension benefit the surviving partner would receive if the client were to die first. Enter the percentage of the partner s pension benefit the client would receive if the partner were to die first. Generally, when one spouse s Social Security benefit is higher than the other s, the lower benefit is bumped up to 50% of the higher benefit. At the death of the higher earning spouse, the lower benefit is bumped up to 100% of the higher benefit. However, if the lower earner has a governmental pension and did not pay Social Security tax, a bump-up is limited or eliminated. Thus, if this is such a pension that limits the lower earner s bump-up Social Security benefit, this box should be checked. 12 of 26

13 Income (continued) Owner Amount Rate of Increase Annuity Duration Clt. Ptr. Monthly or Annual Taxable Check the Box to Peg to Inflation or % % to Survivor Lifetime annuity description: $ % % $ % % $ % % $ % % $ % % Term annuity description: $ % $ % $ % $ % $ % Annuity Help Description Duration Amount Taxable Peg to inflation Rate of increase % Pension % to survivor This assigns a name to each source of income used to help meet goals. For term annuities, the number of years the income will be received. These amounts may be in the form of a monthly or annual benefit. Enter the amount currently being received. If this box is checked the Effective Tax Rate or Future Tax Rate from the Personal tab will reduce income amounts to reflect taxes. Generally, annual pensions, annuity income that resulted from retirement plans, or part-time income would be entered as taxable, while an inheritance would not. If you have an annuity that was purchased with after-tax dollars, part of the income received may be taxable and part non-taxable. In that case, enter the annuity as two separate annuities, making one taxable and one not subject to tax. Checking this box will increase income streams each year by the inflation rate listed at the bottom of the screen. When the Duration of the income is more than one year, this is the rate at which the income stream will increase each year. Enter the percentage of the client's annuity benefit the surviving partner would receive if the client were to die first. Enter the percentage of the partner's annuity benefit the client would receive if the partner were to die first. 13 of 26

14 Income (continued) Amount Rate of Increase Other Income Start Duration (years) or End Monthly or Annual Taxable Check the Box to Peg to Inflation or % Description: $ % $ % $ % $ % $ % Other Income Help Description Start year Duration End year Amount Taxable Peg to inflation Rate of increase % This assigns a name to each source of income used to help meet goals. The year the income starts. If it started prior to the current year, enter the current year. The number of years the income will be received. The year in which the income ends. A year prior to the current year may not be entered. The amount in future dollars for the first year in which income will be received. If this box is checked the Effective Tax Rate or Future Tax Rate from the Personal tab will reduce income amounts to reflect taxes. Generally, annual pensions or part-time income would be entered as taxable, while an inheritance would not. Lump-sum pensions are assumed to be rolled into an IRA and grow there tax deferred until withdrawal, at which point they are taxable. Checking this box will increase income streams each year by the inflation rate listed at the bottom of the screen. When the Duration of the income is more than one year, this is the rate at which the income stream will increase each year. 14 of 26

15 Annual Savings Include all the savings the model should consider when calculating the chance of meeting goals. Non-retirement Saving Description Start Up to Clt. Ret. Duration (Select one or enter End ) Up to Ptr. Ret. Specified s End Owner Clt. Ptr. Joint Annual Contribution Rate of Increase Check the Box to Peg to Inflation or % % % % % % % % % 15 of 26

16 Annual savings (continued) Retirement Savings Start Up to Clt. Ret. Duration (Select one or enter End ) Up to Ptr. Ret. Specified s End Clt. Owner Ptr. Annual Contribution Client or Partner Employer Rate of Increase Check the Box to Peg to Inflation or % Employer plans: 403(b) trad l 403(b) Roth Roth TSA ORP 401(k) trad l Description: 401(k) Roth 401(a) Keogh SEP SIMPLE % 403(b) trad l 403(b) Roth Roth TSA ORP 401(k) trad l Description: 401(k) Roth 401(a) Keogh SEP SIMPLE % 403(b) trad l 403(b) Roth Roth TSA ORP 401(k) trad l Description: 401(k) Roth 401(a) Keogh SEP SIMPLE % 403(b) trad l 403(b) Roth Roth TSA ORP 401(k) trad l Description: 401(k) Roth 401(a) Keogh SEP SIMPLE % 16 of 26

17 Annual savings (continued) Duration (Select one or enter End ) Owner Annual Contribution Rate of Increase Retirement Savings Start Up to Clt. Ret. Up to Ptr. Ret. Specified s End Clt. Ptr. Client or Partner Employer Check the Box to Peg to Inflation or % Former employer plans: 403(b) trad l 403(b) Roth 457 TSA ORP 401(k) trad l Description: 401(k) Roth 401(a) Keogh SEP SIMPLE % 403(b) trad l 403(b) Roth 457 TSA ORP 401(k) trad l Description: 401(k) Roth 401(a) Keogh SEP SIMPLE % Personal plans: Traditional IRA Roth IRA NQDA/Other Description: % Traditional IRA Roth IRA NQDA/Other Description: % Traditional IRA Roth IRA NQDA/Other Description: % Traditional IRA Roth IRA NQDA/Other Description: % 17 of 26

18 Annual savings (continued) Annual Savings Help Retirement savings Start year Duration End year Owner Client/Partner contribution Employer contribution Peg to salary growth rate Rate of increase % Indicate the type of savings - for example, the retirement plan to which the contributions are being made. If the employee contributions are being made to a 401(k) Roth or 403(b) Roth, the employer match will be contributed to the plan on a traditional employer-sponsored plan. The year in which saving begins. If started prior to the current year, enter the current year. The number of years saving will continue. When Up to client s ret. or Up to partner s ret. is selected, the last year of saving will be the year before the client s retirement year or partner s retirement year, respectively. When Up to client s ret. is selected, the savings End and Duration will be updated whenever the client s retirement year is changed. A similar recalculation will occur if Up to partner s ret. is selected. If Specified s is selected, a duration must be entered in that field. The final year of the savings. A year prior to the current year may not be entered. If an End is entered beyond the individual s death, savings will only occur up to the death. Indicate if the savings are going into an account owned by the client or by the partner or held jointly. Only non-retirement assets can be held jointly. Enter in future dollars (if the start year is not the current year), the amount for the first year of saving. Note that only individual contributions are being validated. The total of an individual s contributions to all 403(b), 401(k), TSA, 401(k) Roth and 403(b) Roth also may not be greater than the limit. Enter in future dollars (if the start year is not the current year), the amount for the first year of saving. If the employee contributions are being made to a 401(k) Roth or 403(b) Roth, the employer match will be contributed to the plan on a traditional employersponsored plan. This selection results in the savings amounts going up by the owner s salary growth rate each year. For non-retirement savings with a joint ownership, this selection will use the client salary growth rate. When this box is checked, if the salary growth rate is changed, the Rate of Increase will change accordingly. If the Peg to Salary Growth is checked, this value will default to the salary growth rate of the owner (or the client s salary growth rate for an owner of Joint ). To set the rate of increase to something other than the salary growth rate, uncheck the Peg to Salary Growth box or override the value by entering a new value here. Enter 0% for level savings. 18 of 26

19 Annuitization/GMWB The default values for annuitization (SPIA) and GMWB modeling may be changed here. SPIA and GMWB illustrations are produced if there are sufficient retirement assets (minimum purchase amounts are $20,000 for SPIA and $50,000 for GMWB). These sections are optional. To suppress the SPIA illustrations, zero out the Percent of Retirement Assets to Annuitize. To suppress the GMWB section, enter zero for GMWB Amount to Purchase. Annuitization Percent of non-roth retirement assets to annuitize: % GMWB Select a GMWB purchase option for the Client and for the Partner Client Partner 1. Calculate the amount based on need 2. Enter an amount $ $ 3. Do not purchase a GMWB If option 1 or 2 was selected above, complete the following: Age at which GMWB is purchased: Risk tolerance for GMWB analysis: Very Conservative Conservative Mod. Conservative Moderate Mod. Aggressive Very Conservative Conservative Mod. Conservative Moderate Mod. Aggressive Annuitization/GMWB Help Percent of non-roth retirement assets to annuitize GMWB - calculate the amount based on need GMWB enter an amount GMWB do not purchase a GMWB Age at which GMWB is purchased Risk tolerance for GMWB analysis Enter percent of non-roth retirement assets to annuitize. Enter 0% to bypass the annuitization illustration. This will be the percentage of non-roth retirement assets to model in combination with the suggested portfolio as an annuity - the model will convert these assets at the owner s retirement to a level lifetime guaranteed annuity (with a 100% joint-and-survivor option). This percent is for illustrative purposes and is not intended as a recommendation to annuitize. Select this to have the system calculate the estimated amount of GMWB coverage required to meet long-term essential needs in retirement. Retirement assets will be used first. Non-retirement assets (combined with any of the purchaser s NQDA assets) will be used to fill any gap remaining after using all available retirement assets for the purchase. If this selection is made for both client and partner, up to two purchases will be calculated. If the whole need can be met throughout retirement with a single purchase, that will be the default, even if both default selections are chosen. Note: If this selection is chosen for only one individual and an amount is selected for the other individual, this calculated purchase may be too high because it may not take the entered amount into account. (This situation can occur if a calculated purchase occurs before the withdrawal date for an entered purchase.) To avoid possible over-purchase, either default or enter both purchase amounts. This selection allows you to enter a specific amount to be used to purchase a GMWB benefit. Retirement assets will be used first. Non-retirement assets (combined with any of the purchaser s NQDA assets) will be used to fill any gap remaining after using all available retirement assets for the purchase. If this selection is used in conjunction with a Calculate the amount based on need selection for the other individual, the calculated amount for the other individual will take this purchase amount into account. If this entered amount is used for a second purchase (e.g., the other individual makes a first purchase), the first purchase will assume the entire amount entered here will be available for the second purchase and will calculate the defaulted first purchase accordingly. The total purchase amount entered here will be purchased (if that much is available when it comes time to make the purchase), even if it results in a surplus. This selection should be used to prevent a purchase for the specific individual. In order to prevent any GMWB analysis, both individuals should have this selection. Enter the age at which the client and/or partner will purchase GMWB coverage. The purchaser will need to wait until the enrollment anniversary date following age 65 before lifetime payments may begin. If the purchaser is already 65, payments may begin immediately. Select a risk tolerance for the portfolio that will be used to generate the GMWB analysis. This portfolio will be used to allocate the assets used for the GMWB purchase(s) and will be used for the GMWB assets throughout the remainder of the analysis. (Most GMWBs limit equity investments, so the highest risk portfolio choice allowed in the GMWB analysis is the Moderate portfolio.) The defaulted portfolio is the portfolio selected for the risk period at the time of the first purchase. Guarantees are backed by the claims-paying ability of the issuing insurance company. 19 of 27

20 Disability Insurance (To be completed only if the Disability Insurance module is selected) Sum of Disability Policy Benefits (% of pay) Monthly Disability Policy Benefits ($ amount) Disability insurance policies insuring the client: Disability insurance policies insuring the partner: % $ % $ Dependent Children (To be completed only if the Life Insurance module is selected) First Name Gender Date of Birth (mm/dd/yyyy) Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female 20 of 26

21 Life Insurance Assumptions (To be completed only if the Life Insurance module is selected) Liabilities paid off at death: Retirement plan assets of the decedent: Client s Death Pay off all debts Pay off only primary residence mortgages Pay off debt other than primary residence mortgages Don t use insurance to cover debts Use for survivor s current needs Reserve for survivor s retirement Partner s Death Pay off all debts Pay off only primary residence mortgages Pay off debt other than primary residence mortgages Don t use insurance to cover debts Use for survivor s current needs Reserve for survivor s retirement Number of years to cover family income needs after death: years years Percentage of expenses to replace: % % Estate administrative costs: $ $ Lump-sum education need: $ $ Non-salary monthly income continuing after death: $ per year $ per year Survivor income benefits: Monthly Amount Monthly amount at client s death: $ % Monthly amount at partner s death: $ % Start No. of s COLA Life Insurance Assumptions Help Liabilities paid off at death Retirement plan assets of the decedent Number of years to cover family income needs after death Percentage of expenses to replace Indicate which type of liabilities should be paid off at death. (All will be paid if no entry is made.) Indicate if the decedent s retirement plan assets should be used to meet the current needs of the survivors, or instead, if those assets should not be used until the survivor reaches his or her retirement age. Indicate the number of years insurance should cover ongoing expenses for the family after death. (This does not include debt or other obligations which are to be paid off at death.) This field defaults to the greater of the number of years until the surviving partner retires or the youngest child reaches age 18. If the surviving partner is already retired and there are no children under 18, or there is no partner but there are dependent children who are all 18 or over, the default is five years. If there is no partner or dependent child, the default is zero years. Enter 0 if ongoing expenses should not be covered with insurance. Indicate the percentage of current non-primary residence mortgage expenses expected to continue after death. The default is 80%. If the primary residence mortgage is not being paid off at death, we will assume that 100% of the mortgage expense continues, in addition to 80% (if default is used) of all other expenses. After the mortgage is paid off, the need will be reduced. If debts are being paid off at death, the percentage entered will be applied against all remaining expenses. Consider entering a lower percentage than the default if a large expense (such as income tax) will not continue or will be significantly reduced. Estate administrative costs Enter an estimate of estate administrative costs here. If assets have been entered, the default is equal to 5% of the decedent s solely owned assets (excluding retirement assets and life insurance cash values) minus liabilities. Otherwise the default is equal to $1,000. Lump-sum education need Non-salary monthly income continuing after death Survivor income benefits - Monthly amount at client s/partner s death Enter the current dollar cost of all education expenses. Record the total amount of monthly income (other than salary or pension), if any, that is expected to continue after the death of the client or partner. Income sources to include here are items like rental income. The survivor income benefit can be used to model pension plan payments to the survivor when the deceased dies prior to commencing his or her own pension payments. Income from a survivor benefit policy that pays a monthly amount rather than a lump sum may also be shown. Enter the monthly benefit here with the start year, duration and annual increase, if any. 21 of 26

22 Life Insurance (To be completed if the Life Insurance or Estate module is selected) Death Benefit Outstanding Loan Balance Policyowner Beneficiary Policy Type Life insurance policies insuring the Client: $ $ Term Cash Value 2 nd to die $ $ Term Cash Value 2 nd to die $ $ Term Cash Value 2 nd to die $ $ Term Cash Value 2 nd to die $ $ Term Cash Value 2 nd to die Life insurance policies insuring the Partner: $ $ Term Cash Value 2 nd to die $ $ Term Cash Value 2 nd to die $ $ Term Cash Value 2 nd to die $ $ Term Cash Value 2 nd to die $ $ Term Cash Value 2 nd to die Life Insurance Help Death benefit Outstanding loan balance Policyowner Beneficiary Policy type Enter for each policy the death benefit paid upon the insured s death. Do not net out any loans. Enter the amount of any outstanding loan balance for each insurance policy that has a cash value. Select the owner of the policy. The owner may be the insured or may be someone else such as a child (check Other ), trust, or the partner. Check the beneficiary, the recipient of the proceeds for the policy upon the death of the insured. If it is a second-to-die policy, and the beneficiary is the estate of the second-to-die, enter either the client or the partner as the beneficiary. (Since the analysis assumes the client dies first, the proceeds will be assumed to go to the partner's estate.) Check the type of policy. Survivorship (e.g., second-to-die) policies should only be entered once, either under the client or partner. The result will be the same whichever way it is entered. 22 of 26

23 Long-term Care (To be completed only if the Long-term Care module is selected) Client Partner Help Is there a long-term care insurance policy? Yes No Yes No Indicate if the client or partner owns a long-term care policy. In what state does the client plan to live during retirement? If the client is planning to move to another state during retirement, please enter that state here. This will be used to illustrate costs of long-term care, which vary from state to state. If a different state is not entered we will assume the client will remain in the current state of residence, and that state s long-term care costs will be illustrated in the long-term care section of the report. 23 of 26

24 Estate (To be completed only if the Estate module is selected) Client Partner Is there a will? Yes No Yes No Is there a revocable living trust? Yes No Yes No Is there a medical durable power of attorney/healthcare proxy? Yes No Yes No Is there a general durable power of attorney? Yes No Yes No Is there a letter of instruction? Yes No Yes No Is there a living will? Yes No Yes No Have bypass/credit shelter trusts been established? Yes No Yes No Have irrevocable life insurance trusts been established? Yes No Yes No Are there QTIP provisions in the estate documents? Yes No Yes No Are there dependents who are minors? Yes No Is there a farm or closely held business? Yes No Under current federal estate and gift-tax law, every person can pass up to about $5 million (adjusts annually for inflation) free of estate or gift tax. If the couple is married, they can pass up to twice that amount free of estate tax. Generally speaking, if the first to die of a married couple only uses a portion of the $5 million exemption, the unused portion can be used by the second-to-die. If one is subject to estate tax, marginal rates go as high as 35%. Estate Help Will Revocable living trust Medical durable power of attorney/healthcare proxy General durable power of attorney Letter of instruction Living will Bypass/credit shelter trust Irrevocable life insurance trust QTIP provision Minor children Farm or closely held business A legal document that provides instructions for the distribution of assets after death. An estate planning technique used to eliminate the need for probate. This document designates someone to make healthcare decisions if the client or partner is unable to make them. A legal document that authorizes a person to act on your behalf to conduct your business during periods of absence or when you cannot act for yourself. A document that sets forth instructions for burial (among other things) and gives needed direction as to where documents and important paperwork can be found. A statement as to the medical treatment the client or partner wants or does not want if he or she becomes incompetent and unable to communicate his or her preferences. An estate planning technique used by spouses to, among other things, reduce or eliminate estate taxes at the second death. A trust set up and funded with life insurance for the purpose of removing insurance proceeds from a decedent's estate. An estate planning technique used by spouses to allow the first to die to take advantage of the unlimited marital deduction yet also control disposition of the property after the death of the second to die. Indicate if the client or partner has dependent minors. If yes, then additional estate planning advice, such as naming a guardian for minor children, will print in the report. Indicate if the client or partner owns a farm or closely held business, in order to trigger additional estate planning information which may be applicable. 24 of 26

25 Bend Points For Advisor Use Only. Maximum Minimum Risk Tolerance Savings Rate Retirement Basic Income Need Additional Goals 25 of 26

26 VALIC has more than half a century of experience helping Americans plan for and enjoy a secure retirement. We provide real solutions for real lives by consistently offering products and services that are innovative, simple to understand and easy to use. We take a personal approach to retirement plans and programs, offering customized solutions for individual needs. We are committed to the same unchanging standard of one-on-one service we have delivered since our founding. Our goal is to help you live retirement on your terms. Your Future is Calling. Meet It with Confidence. CLICK VALIC.com CALL VISIT your financial advisor Investing involves risk including the possible loss of principal. Values of investment products fluctuate so that investment units, when redeemed, may be worth more or less than their original cost. This information is general in nature, may be subject to change, and does not constitute legal, tax or accounting advice from any company, its employees, financial professionals or other representatives. Applicable laws and regulations are complex and subject to change. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. For advice concerning your situation, consult your professional attorney, tax advisor or accountant. Securities and investment advisory services offered through VALIC Financial Advisors, Inc. ( VFA ), member FINRA, SIPC and an SEC-registered investment advisor. VFA registered representatives offer securities and other products under retirement plans and IRAs, and to clients outside of such arrangements. Annuities issued by The Variable Annuity Life Insurance Company ( VALIC ). Variable annuities distributed by its affiliate, AIG Capital Services, Inc. ( ACS ), member FINRA. VALIC, VFA and ACS are members of American International Group, Inc. ( AIG ). AIG is a leading international insurance organization serving customers in more than 100 countries and jurisdictions. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. All products and services are written or provided by subsidiaries or affiliates of AIG. Non-insurance products and services may be provided by independent third parties. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange. Copyright The Variable Annuity Life Insurance Company. All rights reserved. VC (06/2017) J EE 26 of 26