What Is My Plan? Prepared for Sample Family Nov 29, 2012 These are the Resources and Goals that have been included in your Goal Achievement Plan and are the basis for the analysis on the Can I Afford My Goals? report. Resources Amount Start Date End Date Joe's Pension $1,000/mo Feb, 2018 Ongoing 1 Joe's Social Security $2,302/mo Feb, 2018 Ongoing 1 Mary's Social Security $1,394/mo Jun, 2020 Ongoing 1 Amount Start Date End Date Eastern Bank Money Market $100/mo Nov, 2012 Jun, 2019 Joe's 401k $238/mo Nov, 2012 Feb, 2018 Mary's 401k $62/mo Nov, 2012 Mar, 2021 ME Land $15,000/yr Jun, 2020 Jul, 2020 ME Rental Condo $483/mo Nov, 2012 Dec, 2022 Sale of Maine Land $25,000 Aug, 2029 Aug, 2029 Sale of Primary Residence $450,000 Sep, 2032 Sep, 2032 Current Value 401k @ HUB $11,342 Joe's 401k @ ABC $40,176 Joe's 401k Rollover - Fidelity $79,938 Joe'sRollover $43,460 Mary's IRA @ Putnam $34,118 Mary's 401k Rollover $70,329 Current Value Eastern Bank $103,000 Principal Household Members Joe Sample Mary Sample Male Age 59 Female Age 57 Birthdate: Feb 13, 1953 Birthdate: Mar 13, 1955 Retirement Age: 67 (Feb, 2020) Retirement Age: 66 (Mar, 2021) Tax Filing Status: Married Filing Jointly Total Income Tax Rate: 16.25% Plan FAQ Where is my current income and expenses? 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 Recurring Goals Necessary Amount Target Amount Aspirational Amount Start Date End Date Florida Travel $2,500/yr $2,500/yr $2,500/yr Aug, 2012 Aug, 2020 Living Expenses $7,258/mo $8,000/mo $8,000/mo Aug, 2012 Aug, 2020 Long Term Care Insurance $600/qt $600/qt $600/qt Jun, 2012 Apr, 2036 Retirement Living Expenses $5,500/mo $6,800/mo $8,500/mo Mar, 2021 2 Ongoing 1 1. 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 Steve Stanganelli, CFP(R), CRPC(R) 978-388-0020 steve@clearviewwealthadvisors.com Clear View Wealth Advisors, LLC Page 1
Can I Afford My Goals? Prepared for Sample Family Nov 29, 2012 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 $834,170 Joe's Social Security $393,757 Mary's Social Security $269,363 Joe's Pension $171,050 $311,700 Sale of Primary Residence $215,515 ME Rental Condo $55,657 Sale of Maine Land $15,124 Other $25,404 $219,183 Joe's 401k Rollover - Fidelity $66,251 Mary's 401k Rollover $51,064 Joe'sRollover $35,794 Joe's 401k @ ABC $33,131 Other $32,943 $103,000 Eastern Bank $103,000 Total Resources $1,468,053 Household Balance Sheet $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 Goals Balance Sheet Value 2 Necessary Goal Level $1,466,741 Retirement Living Expenses $842,519 Living Expenses $572,114 Target Goal Level $1,678,771 Retirement Living Expenses $998,790 Aspirational Goal Level $1,835,957 Retirement Living Expenses $1,155,976 Total Goals $1,835,957 Total Funding Deficit ($367,905) Resources $0 Goal Levels Household Savings Rate(s) Sale of Primary Residence $450,000 in 2032 ME Rental Condo $483/mo from 2012-2022 Sale of Maine Land $25,000 in 2029 Joe's 401k $238/mo from 2012-2018 Additional Savings Needed 3 Target Goal Level $2,169/mo until 2021 Aspirational Goal Level $3,787/mo until 2021 Funding Percent by Goal Level Goal Level Cost of Goals Resources Available Surplus/(Deficit) Funding % Necessary $1,466,741 $1,468,053 $1,312 100.1% Target $1,678,771 $1,468,053 ($210,718) 87.4% Aspirational $1,835,957 $1,468,053 ($367,905) 80.0% 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. and are calculated as present value, and an annual COLA (Cost of Living Adjustment) may be applied by your Advisor. For investment accounts, a transaction cost of 1.2% 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 4.8% for the Necessary Goal Level, 6.2% for the Target Level and 7.8% for the Aspirational Level. An annual COLA (Cost of Living Adjustment) 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 2.3% annual COLA. prepared by Steve Stanganelli, CFP(R), CRPC(R) 978-388-0020 steve@clearviewwealthadvisors.com Clear View Wealth Advisors, LLC Page 2
Can I Afford My Goals? Prepared for Sample Family Nov 29, 2012 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: $1,468,053 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 Joe's Social Security $393,757 Mary's Social Security $269,363 Joe's Pension $171,050 Total $834,170 Sale of Primary Residence $215,515 ME Rental Condo $55,657 Sale of Maine Land $15,124 Other $25,404 Total $311,700 Joe's 401k Rollover - Fidelity $66,251 Mary's 401k Rollover $51,064 Joe'sRollover $35,794 Joe's 401k @ ABC $33,131 Other $32,943 Total $219,183 Eastern Bank $103,000 Total $103,000 Necessary Goal Level (What I Need) Retirement Living Expenses $842,519 Living Expenses $572,114 Total Cost $1,466,741 Total Resources Available $1,468,053 Funding Surplus $1,312 Funding Percent 100.1% Target Goal Level (What I Want) Retirement Living Expenses $998,790 Total Cost $1,678,771 Total Resources Available $1,468,053 Funding Deficit ($210,718) Funding Percent 87.4% Additional Savings Needed 3 $2,169/mo until 2021 Aspirational Goal Level (What I Wish For) Retirement Living Expenses $1,155,976 Total Cost $1,835,957 Total Resources Available $1,468,053 Funding Deficit ($367,905) Funding Percent 80.0% Additional Savings Needed 3 $3,787/mo until 2021 1. and are calculated as present value, and an annual COLA (Cost of Living Adjustment) may be applied by your Advisor. For investment accounts, a transaction cost of 1.2% 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 4.8% for the Necessary Goal Level, 6.2% for the Target Level and 7.8% for the Aspirational Level. An annual COLA (Cost of Living Adjustment) 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 2.3% annual COLA. prepared by Steve Stanganelli, CFP(R), CRPC(R) 978-388-0020 steve@clearviewwealthadvisors.com Clear View Wealth Advisors, LLC Page 3
How Do I Pay for My Retirement? Prepared for Sample Family Nov 29, 2012 For this plan, it is likely that there are sufficient resources to pay for your Necessary Goal Level. Sources of Funding by Year for your Necessary 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 2021-2039: The Household is assumed to be retired when all of the Principal Household Members are retired. Mary Sample is expected to live until age 84 in 2039, which is the last year of this cash flow projection. (Income such as a part-time job) (Social Security, Pensions Annuities) Funding Deficit Account Balances by Year based on funding your Necessary Goal Level 2 This chart shows the total balance of all of your Household Accounts over your retirement years. 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 Steve Stanganelli, CFP(R), CRPC(R) 978-388-0020 steve@clearviewwealthadvisors.com Clear View Wealth Advisors, LLC Page 4
How Do I Pay for My Retirement? Prepared for Sample Family Nov 29, 2012 For this plan, more resources may be needed to completely pay for your Target Goal Level. 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 2021-2039: The Household is assumed to be retired when all of the Principal Household Members are retired. Mary Sample is expected to live until age 84 in 2039, which is the last year of this cash flow projection. (Income such as a part-time job) (Social Security, Pensions Annuities) Funding Deficit 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. 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 Steve Stanganelli, CFP(R), CRPC(R) 978-388-0020 steve@clearviewwealthadvisors.com Clear View Wealth Advisors, LLC Page 5
How Do I Pay for My Retirement? Prepared for Sample Family Nov 29, 2012 For this plan, more resources may be needed to completely pay for your Aspirational Goal Level. Sources of Funding by Year for your Aspirational 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 2021-2039: The Household is assumed to be retired when all of the Principal Household Members are retired. Mary Sample is expected to live until age 84 in 2039, which is the last year of this cash flow projection. (Income such as a part-time job) (Social Security, Pensions Annuities) Funding Deficit Account Balances by Year based on funding your Aspirational Goal Level 2 This chart shows the total balance of all of your Household Accounts over your retirement years. 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 Steve Stanganelli, CFP(R), CRPC(R) 978-388-0020 steve@clearviewwealthadvisors.com Clear View Wealth Advisors, LLC Page 6
Notes Prepared for Sample Family Nov 29, 2012 prepared by Steve Stanganelli, CFP(R), CRPC(R) 978-388-0020 steve@clearviewwealthadvisors.com Clear View Wealth Advisors, LLC Page 7