Capstar Plan (1)

8/6/2019 Capstar Plan (1)

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REPORTS:

SUMMARY: CUR. FIN. POS. DEF. ANALYSIS OFF. ANALYSIS

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CLIENT INFO

BAL SHEET CLIENT GOALS BALANCE SHEET CASH RESERVE GOAL PLANNING

CASHFLOW DEF. POSITIONS CASHFLOW LIFE INSURANCE WK - ED SAVINGS

GOAL PLAN OFF. POSITIONS DISABILITY INS. WK - ST GOALS

DEF. BENE'S ECOMMENDATION LTC INSURANCE WK - RET CONTRIB.

ESTATE & LTC WK - RET DISTRIB.

CLIENT HOME


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CLIENT INFORMATION: SPOUSE INFORMATION:

First Name: John First Name: Mary

Middle Initial: Q. Middle Initial: J.

Last Name: Smith Last Name: Smith

Birthdate: 4/23/62 Birthdate: 10/15/64

SSN: 123-45-6789 SSN: 987-65-4321

Home Information: Home Information:

Address 1 123 Berkeley Heights Address 1 123 Berkeley Heights

Address 2 Address 2

City, State Zip Scottsdale, AZ 85260 City Scottsdale, AZ 85260

Phone: (480) 555-1234 Phone: (480) 555-1234Fax: Fax:

Email Address: Email Address:

Work Information: Work Information:

Title: President/CEO Title:

Company: Smith Industries, Inc. Company:

Address 1 4321 S. Industrial Dr. Address 1

Address 2 Address 2

City Phoenix City

State AZ State

Zip Code 00008-5014 Zip Code

Phone: (602) 555-9876 Phone:

Fax: (602) 555-7645 Fax:

Email Address: Email Address:

Best place to contact client: Work Best place to contact client: Home

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CLIENT INFO

BAL SHEET

CASHFLOW

GOAL PLAN

DEF. BENE'S

ESTATE & LTC

[email protected] [email protected]

CLIENT BACKGROUND INFORMATION
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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ASSETS: ASSETS (Cont'd):

Cash & Equivalents: Real-Estate & Persona

Bank: Acct #: Value: Real Estate

BofA - Checking 12345678 $5,675.00 123 Berkeley Heights

BofA - Savings 98765432 $9,345.00 1456 E. Crocus

BofA - Chk (Mary) 13579876 $1,232.00

BofA CD (5.45%) 748592 $2,346.00 Pesonal Property

Personal Property

TOTAL BANK ACCOUNTS: $18,598.00 2001 Mercedes

2005 Escalade

Description Acct #: Ann Saving Value: 2001 Bayliner Boat

Educational Savings 9876 $0 $10,000.00 TOTAL REAL ESTA

Short-Term Goal Savings 1234 $0 $3,000.00

Fidelity Account 6543 $150 $2,425.00 LIABILITIES:

Mortgages

TOTAL TAXABLE INVESTMENTS: $15,425.00 Mortgage - Berkeley

Mortgage - Crocus

Description Acct #: Ann Saving Value:

J.SMITH (401k) 87234 $1,500 $43,318.50 Other Liabilities

M.SMITH (IRA) 45345 $400 $7,576.50 Discover Card

Visa Card

Loan - Escalade

TOTAL RETIREMENT ACCOUNTS: $50,895.00 Student Loan

Cash Value Life Policies Boat Loan - BofA

Asset: Acct #: Ann Prem Value:

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CLIENT INFO

BAL SHEET

CASHFLOW

GOAL PLAN Taxable Investments (from Morningstar reports):

DEF. BENE'S

ESTATE & LTC

Retirement Accounts (from Morningstar reports):

ASSETS & LIABILITIES


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INCOME EXPENSES

John PersonalDescription Annual Income Description

Employment 1 Smith Industries $195,000.00 Rent

Employment 2 Home Insurance

Other Property Tax

Other Home Maintenance

MaryUtilities (gas, electric, telephone)

Groceries

Description Annual Income Child Support / Alimony

Employment 1 Day Care

Employment 2 Health Insurance

Other Unreimbursed Medical

Other Life Insurance

OtherFitness

Gas

Description Annual Income Auto Insurance

Social Sec. Auto Maintenance

Pension CableDiability Subscriptions & Dues

Interest Gifts/Donations

Rental 1456 Crocus $18,000.00 Entertainment (dining, movies)

Other Rental Property (total)

Other Other

Other

Federal & State Tax (Annually) $45,000.00 Other

SS/Medicare Tax (or SET) $17,500.00 Other

TOTAL ANNUAL INCOME: $150,500.00 TOTAL MONTHLY EXPENSES:

HOME

CLIENT INFO

BAL SHEET

CASHFLOW

GOAL PLAN

DEF. BENE'S

ESTATE & LTC

PERSONAL CASH BUDGE


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GOAL PLANNING


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Home & Auto

Covered Asset(s) Carrier Policy # Coverage Limit Annual

Home - Berkeley MetLife 4567 Replacement Value

Landlord - Crocus MetLife 8765 Replacement Value

Autos & Boat MetLife 8563 & 2345 Replacement Value

Life Insurance: JohnBeneficiary Carrier Policy # Policy Type Dea

Mary Smith Smith Industries ER Policy - 1yr salary TRM Term Life $1

Mary Smith NWML 87459 UNV Universal Life $1,0

Life Insurance: MaryTOTAL $1,1

Beneficiary Carrier Policy # Policy Type Dea

John Smith NWML 62537 UNV Universal Life $2

Disability Insurance:TOTAL $2

John

Description Carrier Policy # Death Benefit Mont

John Smith NWML 9876 $0.00

John Smith Smith Industries ER Policy $0.00

HOME

CLIENT INFO

BAL SHEET

CASHFLOW

GOAL PLAN

DEF. BENE'S

ESTATE & LTC

DEFINED BENEFIT COVERAG


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ESTATE PLANNING

Are any of the following in place? John Mary If yes, describe:

1) Will Yes Yes John & Mary have a rudimentary will, has not been up

2) Revocable Living Trust No No

3) Marital Trust Provisions No No

4) Credit Shelter Trust Provisions No No

5) QTIP Trust Provisions No No

6) Generation Skip Trust Provisions No No

7) Irrevocable Life Insurance Trust No No

8) Durable General POA No No

9) Durable Health Care POA No No

10) Living Will No No

11) Previous Taxable Gifts ($) $0.00 $0.00

12) Previous Gift Taxes Paid ($) $0.00 $0.00

If a living trust exists, what percentage of the estate is in the trust: 0.0%

Estate Planning Assumptions:

Administrative & probate expenses (as % of estate assets): 4.0%

Estimated Final Expenses ($) $7,500Amount you would like to leave as an estate: $100,000

HOME

CLIENT INFO

BAL SHEET

CASHFLOW

GOAL PLAN

DEF. BENE'S

ESTATE & LTC

ESTATE PLANNING & LTC


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A personalized financial proposal for

John and Mary Smith123 Berkeley Heights

Scottsdale, AZ 85260

Prepared by:

David C. Paddison, MBA

Managing Partner

Capstone Financial Advisors

11210 N. 75th StreetScottsdale, AZ 85260

Voice: 480.907.3

March 25, 2007


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Contents A personal financial proposal for prepared by:John and Mary Smith David C. Paddison, MBA

March 25, 2007 Voice: 480.907.3

Financial Plan Summary 3

Current Financial Position 8

Defensive Analysis 11

Offensive Analysis 16

Estate Planning 22

Disclosure:

In an effort to aid you in learning, understanding, and formulating a personal basis for decision making,this'Personalized Financial Plan' is offered to help enhance your knowledge of various topics andcommunicate some of the intricacies of the financial world. The plan represents a framework to clarifyand structure your financial matters.

This plan is based upon confidential information you provided regarding your present resources andobjectives. While illustrations within this plan can be a valuable aid in the examination of your finances, itdoes not represent the culmination of your planning efforts. Financial planning is an ongoing process.

This hypothetical illustration of mathematical principles is custom made to model some potentialsituations and transitions you may face in your financial future. Hypothetical assumptions used in this

illustration are specifically chosen to communicate and demonstrate your current financial position andhighlight for discussion with your advisor the complex future interacting effects of combined incomes,expenses, savings, asset growth, taxes, retirement benefits, and insurance.

This document is not an advertisement or solicitation for any specific investment, investment strategy, orservice. No recommendations or projections of specific investments or investment strategies are made orimplied. Any illustrations of asset growth contained herein are strictly used to demonstrate mathematicalconcepts and relationships while presenting a balanced and complete picture of certain financialprinciples. Growth assumptions are applied to generalized accounts based upon differing tax treatment.Illustrations, charts and tables do not predict or project actual future investment performance, or implythat any past performance will recur.

This plan does not provide tax or legal advice, but may illustrate some tax rules or effects and mentionpotential legal options for educational purposes. Information contained herein is not a substitute forconsultation with a competent legal professional or tax advisor and should only be used in conjunctionwith his or her advice.

The results shown in this illustration are not guarantees of, or projections of future performance. Resultsshown are for illustrative purposes only. This presentation contains forward-looking statements and therecan be no guarantees that the views and opinions expressed will come to pass. Historical data shownrepresents past performance and does not imply or guarantee comparable future results. Information andstatistical data contained herein have been obtained from sources believed to be reliable but in no wayare guaranteed as to accuracy or completeness.

Your actual future investment returns, tax levels and inflation are unknown. This illustration usesrepresentative assumptions in a financial planning calculation model to generate a report for educationand discussion purposes. Calculations and assumptions within this report may not reflect all potentialfees, charges, and expenses that might be incurred over the time frame covered by these illustrationswhich, if included, would result in lower investment returns and less favorable illustration results. Do notrely upon the results of this report to predict actual future investment performance, market conditions,tax effects or inflation rates.


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Financial Plan Summary

Prepared by:


Managing Partner



Voice: 480.907.3

March 25, 2007


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Summary A personal financial proposal for prepared by:John and Mary Smith David C. Paddison, MBA

March 25, 2007 Voice: 480.907.3

Client Goals

Short-Term Goals (within 1-10 years)

Long-Term Goals (10+ years)

Other Goals (personal, charities, etc.)

This is where you would write your brief analysis about the client's defensivepostions and strategies in order to set the stage for the recommendations.




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March 25, 2007 Voice: 480.907.3

Defensive Positions

Strengths Weaknesses

Opportunities Threats

Analysis & Commentary:

a. First strengthb. Second Strengthc. Third Strength

a. First opportunityb. Second opportunityc. Third opportunity

a. First Weaknessb. Second Weaknessc. Third Weakness

a. First threatb. Second threatc. Third threat



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March 25, 2007 Voice: 480.907.3

Offensive Positions

Strengths Weaknesses

Opportunities Threats

Analysis & Commentary:

a. First strengthb. Second Strengthc. Third Strength

a. First opportunityb. Second opportunityc. Third opportunity

a. First Weaknessb. Second Weaknessc. Third Weakness

a. First threatb. Second threatc. Third threat



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March 25, 2007 Voice: 480.907.3

Recommendations

Defensive Recommendations:

Offensive Recommendations:

Other Recommendations:





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Current Financial Position

Prepared by:


Managing Partner



Voice: 480.907.3

March 25, 2007


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A personal financial proposal for prepared by:

John and Mary Smith David C. Paddison, MBA

March 25, 2007 Voice: 480.907.3

Assets LiabilitiesCash & Equivalents Debt & Other Liabilities

BofA - Checking $5,675 Mortgage - Berkeley $435,000

BofA - Savings $9,345 Mortgage - Crocus $235,000

BofA - Chk (Mary) $1,232 $0

BofA CD (5.45%) $2,346 Discover Card $7,000

$0 Visa Card $3,500

$18,598 Loan - Escalade $34,000

Taxable Investments Student Loan $65,000

Educational Savings $10,000 Boat Loan - BofA $10,000

Short-Term Goal Savings $3,000 $0

Fidelity Account $2,425 Home Equity LOC $7,000

$0

$15,425 TOTAL LIABILITIES $796,500Retirement Accounts

J.SMITH (401k) $43,319

M.SMITH (IRA) $7,577

$0

$0

$50,895

Cash Value Life Policies

J.SMITH - NWML $1M $73,450

M.SMITH - NWML $200k $15,430

$0

$0

$88,880

Real Estate & Personal Property

123 Berkeley Heights $665,000

1456 E. Crocus $335,000

$0

Personal Property $10,000

2001 Mercedes $13,000

2005 Escalade $35,000

2001 Bayliner Boat $12,000

$1,070,000

TOTAL ASSETS: $1,243,798 TOTAL NEW WORTH: $447,298

Comments:

CurrentFinancialPosition

Here is where you make specific comments about what you see going on in the clientsfinancials.


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March 25, 2007 Voice: 480.907.3

Income (annually) Expenses (monthly)

John Personal Expense

Smith Industries $195,000 Rent $0

$0 Home Insurance $30

$0 Property Tax $100

$0 Home Maintenance $150

Mary Utilities (gas, electric, telephone) $300

$0 Groceries $750

$0 Child Support / Alimony $0

$0 Day Care $0

$0 Health Insurance $600

Other Unreimbursed Medical $600

$0 Life Insurance $300$0 Fitness $120

$0 Gas $500

$0 Auto Insurance $150

1456 Crocus $18,000 Auto Maintenance $50

$0 Cable $150

$0 Subscriptions & Dues $50

GROSS INCOME $213,000 Gifts/Donations $200

Entertainment (dining, movies) $500

Rental Property (total) $500

Other $0

Income Taxes Other $0

Federal & State Tax (Annually) $45,000 Other $0

SS/Medicare Tax (or SET) $17,500 Other $0

TOTAL INCOME TAXES $62,500 TOTAL EXPENSES $5,050

Debt Payments & Savings

TOTAL ANNUAL TAKE-HOME PAY $150,500 Debt Payments $5,411

Savings $2,050

EFFECTIVE INCOME TAX RATE 29.3% TOTAL DEBT PAYMENTS & SAVINGS $7,461

TOTAL MONTHLY CASH INFLOWS $12,542 TOTAL MONTHLY CASH OUTFLOWS $12,511

CASH EXCESS(SHORTFALL) $31

Comments:

Income,Expense andCashflow



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Defensive Analysis

Prepared by:


Managing Partner



Voice: 480.907.3

March 25, 2007


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March 25, 2007 Voice: 480.907.3

Cash Reserve Analysis

Current Monthly Expenses $5,050

Current Monthly Debt Payments $5,411

TOTAL $10,461

6-MONTHS EXPENSES $62,766

Sources of Reserve Cash

Cash & Liquid Assets $34,023

Home Equity LOC $18,000

Other Semi-Liquid Assets $88,880

Retirement Assets $50,895

TOTAL SOURCES OF CASH $191,798

LEVEL ONE RISK 108.4% Low

LEVEL TWO RISK 165.8% Low

LEVEL THREE RISK 82.9% Low

OVERALL RISK 305.6% Low

Definitions:

Level One

Level Two

Level Three

Overall

Comments:

DefensiveAnalysis

Risk that a 90-day cash emergency would greatly impact your liquid assets

Risk that a 90-day cash emergency would greatly impact your retirement assets

Risk that a 180-day emergency would greatly impact your retirement assets

Risk that a 180-day cash emergency would be a catastrophic event

sh & Liquid Assets 18%Home Equity LOC 9%

Other Semi-Liquirement Assets 27%


Liquidity of Personal Assets


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March 25, 2007 Voice: 480.907.3

Life Insurance Analysis

Decendent: John Decendent: MaryCurrent Monthly Expenses $12,542 Current Monthly Expenses $12,542

LESS: Life insurance premium -$208 LESS: Life insurance premium -$58

LESS: Debt payments -$5,411 LESS: Debt payments -$5,411

EQUALS: Monthly Expenses $6,922 EQUALS: Monthly Expenses $7,072

Adjustment for decedent 0.65 Adjustment for decedent 0.65

REQUIRED MONTHLY PROCEEDS: $4,500 REQUIRED MONTHLY PROCEEDS: $4,597

Monthly Income - Survivor $0 Monthly Income - Survivor $16,250

Monthly SS Benefit - Survivor $450 Monthly SS Benefit - Survivor $225

Monthly Income - Other $1,500 Monthly Income - Other $1,500

TOTAL SURVIOR MONTHLY INCOME: $1,950 TOTAL SURVIOR MONTHLY INCOME: $17,975

REQUIRED SURVIVOR PRE-TAX CA $4,418 REQUIRED SURVIVOR PRE-TAX CA None

INSURANCE REQUIREMENTS (PV): INSURANCE REQUIREMENTS (PV):

Required Monthly Survivor Needs: $1,226,778 Required Monthly Survivor Needs: $0

Required to Extinguish Debt: $796,500 Required to Extinguish Debt: $0

TOTAL RECOMMENDED INSURANC $2,023,278 TOTAL RECOMMENDED INSURANC $0

TOTAL CURRENT COVERAGE: $1,195,000 TOTAL CURRENT COVERAGE: $200,000

COVERAGE SHORTAGE (EXCESS) $828,278 COVERAGE SHORTAGE (EXCESS) -$200,000

Comments:

DefensiveAnalysis



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March 25, 2007 Voice: 480.907.3

Disability Insurance Analysis

Disabled: John Diabled: MaryCurrent After-Tax Earnings $11,482 Current Monthly Income $0

LESS: Social Security Benefit -$250 LESS: Social Security Benefit -$150

LESS: LTD Insurance Benefits -$9,250 LESS: LTD Insurance Benefits $0

LESS: LTD Premium -$540 LESS: LTD Premium $0

EQUALS SHORTFALL (EXCESS) $1,442 EQUALS SHORTFALL (EXCESS) -$150

COVERAGE RISK Medium COVERAGE RISK None

L1 CASH RESERVE RISK Low L1 CASH RESERVE RISK Low

OVERALL DISABILITY RISK Medium OVERALL DISABILITY RISK Low

SUGGESTED EXTRA COVERAGE: None SUGGESTED EXTRA COVERAGE: None

Comments:

DefensiveAnalysis



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March 25, 2007 Voice: 480.907.3

Long-Term Care Insurance Analysis

Insured: John Insured: MaryCurrent Daily Care Cost: $150 Current Daily Care Cost:

Estimated Annual Care Cost: $54,750 Estimated Annual Care Cost: $

Expected Medical Inflation: 6.0% Expected Medical Inflation:

Anticipated Years of Care: 3.0 Anticipated Years of Care:

Anticipated Utilization Age: 82.0 Anticipated Utilization Age:

Future Assets at Risk for LTC $2,364,129 Future Assets at Risk for LTC $3,6

Required Monthly Savings $861 Required Monthly Savings

Alternate LTC Insuarnce Premium Alternate LTC Insuarnce Premium

Comments:

DefensiveAnalysis

A good time to buy long-term care insurance is between ages 50 and 55, according to the American HeaAssociation (AHCA), a federation of 50 state health organizations representing assisted living, nursing facility, locare, and subacute care providers. A policy that costs you $800 annually when you're 55 will cost you nearly much if you wait to buy it when you're 65. There is an exception, however. You might want to purchase a long-tpolicy before age 50 if your employer sponsors an attractive long-term care group plan at an affordable price.

When considering whether or not to purchase LTC insurance, you should take into consideration such factors as: history (does your family have a history of dementia, diabetes, or other dibilitating, late-onset disease), 2) reassets at risk, 3) overall financial condition vs. likelihood of LTC utliization.



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Offensive Analysis

Prepared by:


Managing Partner



Voice: 480.907.3

March 25, 2007


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March 25, 2007 Voice: 480.907.3

Goal Planning

EDUCATIONAL SAVINGS - Summary & Analysis

SHORT-TERM GOALS - Summary Analysis

RETIREMENT GOALS - Summary Analysis

OffensiveAnalysis





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March 25, 2007 Voice: 480.907.3

WORKSHEET - Educational Savings

Year

Student 1 Student 2 Student 3 Student 4 Student 5

John Smith, Jr. Jane Smith

Return 8.0% Return 8.0% Return 8.0% Return 8.0% Return 8.0%

Inflation 5.5% Inflation 5.5% Inflation 5.5% Inflation 5.5% Inflation 5.5%

2007 $4,605 $4,294

2008 $4,605 $4,294

2009 $4,605 $4,294

2010 $4,605 $4,294

2011 $4,605 $4,294

2012 $4,605 $4,294

2013 $4,605 $4,294

2014 $4,605 $4,294

2015 $46,420 $4,605 $4,294

2016 $48,723 $4,2942017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

20302031

2032

2033

2034

2035

2036

2037

$383.72 $357.81

TOTAL SAVINGS REQUIRED TO ACHIEVE EDUCATIONAL GOAL $741.53

TOTAL CURRENT MONTHLY SAVINGS FOR EDUCATION: $0.00SUGGESTED SAVINGS TO ACHIEVE EDUCATIONAL GOAL $741.53

OffensiveAnalysis

MonthlySavings


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March 25, 2007 Voice: 480.907.3

WORKSHEET - Short Term Goals

Year

Goal 1 Goal 2 Goal 3 Goal 4 Goal 5

Family Disney Cruise Europe Vacation 2nd RE Rental Start RE Business House Boat

Return 8.0% Return 8.0% Return 8.0% Return 8.0% Return 8.0%

Inflation 2.5% Inflation 2.5% Inflation 2.5% Inflation 2.5% Inflation 2.5%

2007 $4,578 $2,365 $3,785 $1,588 $2,25

2008 $4,578 $2,365 $3,785 $1,588 $2,25

2009 $14,894 $4,578 $2,365 $3,785 $1,588 $2,25

2010 $2,365 $3,785 $1,588 $2,25

2011 $13,577 $2,365 $3,785 $1,588 $2,25

2012 $3,785 $1,588 $2,25

2013 $32,233 $3,785 $1,588 $2,25

2014 $1,588 $2,25

2015 $1,588 $2,25

2016 $1,588 $2,25

2017 $1,588 $2,25

2018 $26,898 $1,588 $2,25

2019 $2,25

2020 $2,25

2021 $2,25

2022 $2,25

2023 $2,25

2024 $2,25

2025 $2,25

2026 $81,931 $2,25

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

$381.46 $197.11 $315.45 $132.29 $188.08

TOTAL SAVINGS REQUIRED TO ACHIEVE SHORT-TERM GOALS: $1,214.40

TOTAL CURRENT MONTHLY SAVINGS FOR SHORT-TERM GOAL $0.00

SUGGESTED SAVINGS TO ACHIEVE SHORT-TERM GOAL $1,214.40

OffensiveAnalysis

MonthlySavings


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March 25, 2007 Voice: 480.907.3

WORKSHEET - Retirement Contributions

Year

Return 10.0% Return 10.0% Return 6.0% Return 5.0%

Contrib. Balance Contrib. Balance Contrib. Balance Contrib. Balance Contrib.

Beginning $50,895 $2,425 $88,880 $330,000

2007 $22,800 $80,099 $1,800 $4,564 $23,040 $118,046 $27,667 $357,667 $75,

2008 $22,800 $112,361 $1,800 $6,926 $23,040 $149,011 $27,667 $385,333 $75,

2009 $22,800 $148,001 $1,800 $9,537 $23,040 $181,886 $27,667 $413,000 $75,

2010 $22,800 $187,373 $1,800 $12,420 $23,040 $216,789 $27,667 $440,667 $75,

2011 $22,800 $230,868 $1,800 $15,605 $23,040 $253,844 $27,667 $468,333 $75,

2012 $22,800 $278,918 $1,800 $19,124 $23,040 $293,185 $27,667 $496,000 $75,

2013 $22,800 $331,999 $1,800 $23,012 $23,040 $334,952 $27,667 $523,667 $75,

2014 $22,800 $390,638 $1,800 $27,306 $23,040 $379,296 $27,667 $551,333 $75,

2015 $22,800 $455,418 $1,800 $32,050 $23,040 $426,374 $27,667 $579,000 $75,

2016 $22,800 $526,980 $1,800 $37,291 $23,040 $476,356 $27,667 $606,667 $75,

2017 $22,800 $606,037 $1,800 $43,081 $23,040 $529,421 $27,667 $634,333 $75,

2018 $22,800 $693,371 $1,800 $49,477 $23,040 $585,759 $27,667 $662,000 $75,

2019 $22,800 $789,851 $1,800 $56,543 $23,040 $645,572 $27,667 $689,667 $75,

2020 $22,800 $896,433 $1,800 $64,348 $23,040 $709,073 $27,667 $717,333 $75,

2021 $22,800 $1,014,176 $1,800 $72,971 $23,040 $776,492 $27,667 $745,000 $75,

2022 $22,800 $1,144,248 $1,800 $82,497 $23,040 $848,068 $27,667 $772,667 $75,

2023 $22,800 $1,287,940 $1,800 $93,021 $23,040 $924,060 $27,667 $800,333 $75,

2024 $22,800 $1,446,679 $1,800 $104,646 $23,040 $1,004,738 $27,667 $828,000 $75,2025 $22,800 $1,622,040 $1,800 $117,488 $23,040 $1,090,392 $27,667 $855,667 $75,

2026 $22,800 $1,815,763 $1,800 $131,676 $23,040 $1,181,329 $27,667 $883,333 $75,

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

2042

2043

2044

2045

2046

2047

2048

2049

$1,815,763 $131,676 $1,181,329 $883,333 $4,

OffensiveAnalysis

TAX-DEFFEREDINVESTMENTS

TAXABLEINVESTMENTS

LIFE INSURANCE ANDANNUITIES

REAL ESTATEHOLDINGS

TOTARE

MonthlySavings


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March 25, 2007 Voice: 480.907.3

WORKSHEET - Retirement Distributions

Year

Return 5.0% Return 5.0% Return 5.0%

2007 Beg. Bal. $1,313,005 Beg. Bal. $1,815,763 Beg. Bal. $883,333

Beginning John Mary Dist Balance Dist Balance Dist. Balance.

2027 $231,599 $9,000 $5,220 $217,379 $1,095,626 $0 $1,815,763 $0 $883,333

2028 $237,389 $9,225 $5,351 $222,814 $927,594 $0 $1,906,551 $0 $927,500

2029 $243,324 $10,148 $5,484 $227,692 $746,281 $0 $2,001,879 $0 $973,875

2030 $249,407 $10,655 $5,621 $233,131 $550,464 $0 $2,101,973 $0 $1,022,569

2031 $255,642 $11,294 $5,762 $238,586 $339,401 $0 $2,207,071 $0 $1,073,697

2032 $262,033 $15,812 $5,906 $240,316 $116,056 $0 $2,317,425 $0 $1,127,382

2033 $268,584 $15,812 $6,054 $116,056 $5,803 $130,663 $2,302,633 $0 $1,183,751

2034 $275,299 $15,812 $6,205 $5,803 $290 $247,479 $2,170,286 $0 $1,242,939

2035 $282,181 $15,812 $6,360 $290 $15 $259,719 $2,019,081 $0 $1,305,086

2036 $289,236 $15,812 $6,519 $15 $1 $266,890 $1,853,145 $0 $1,370,340

2037 $296,467 $15,812 $6,682 $1 $0 $273,972 $1,671,830 $0 $1,438,857

2038 $303,878 $15,812 $6,849 $0 $0 $281,217 $1,474,204 $0 $1,510,800

2039 $311,475 $15,812 $7,020 $0 $0 $288,643 $1,259,271 $0 $1,586,340

2040 $319,262 $15,812 $7,196 $0 $0 $296,254 $1,025,980 $0 $1,665,657

2041 $327,244 $15,812 $7,376 $0 $0 $304,056 $773,223 $0 $1,748,940

2042 $335,425 $15,812 $7,560 $0 $0 $312,053 $499,831 $0 $1,836,387

2043 $343,810 $15,812 $7,749 $0 $0 $320,249 $204,573 $0 $1,928,206

2044 $352,406 $15,812 $7,943 $0 $0 $204,573 $10,229 $124,078 $1,900,539

2045 $361,216 $15,812 $8,141 $0 $0 $10,229 $511 $327,034 $1,668,532

2046 $370,246 $15,812 $8,345 $0 $0 $511 $26 $345,578 $1,406,380

2047 $246,677 $0 $8,554 $0 $0 $26 $1 $238,097 $1,238,602

2048 $252,843 $0 $8,767 $0 $0 $1 $0 $244,075 $1,056,457

2049 $259,165 $0 $8,987 $0 $0 $0 $0 $250,178 $859,102

2050 $265,644 $0 $9,211 $0 $0 $0 $0 $256,432 $645,625

2051 $272,285 $0 $9,442 $0 $0 $0 $0 $262,843 $415,063

2052 $0 $0 $0 $0 $0 $0 $0 $0 $0

2053 $0 $0 $0 $0 $0 $0 $0 $0 $0

2054 $0 $0 $0 $0 $0 $0 $0 $0 $0

2055 $0 $0 $0 $0 $0 $0 $0 $0 $0

2056 $0 $0 $0 $0 $0 $0 $0 $0 $0

2057 $0 $0 $0 $0 $0 $0 $0 $0 $0

2058 $0 $0 $0 $0 $0 $0 $0 $0 $0

2059 $0 $0 $0 $0 $0 $0 $0 $0 $0

2060 $0 $0 $0 $0 $0 $0 $0 $0 $0

2061 $0 $0 $0 $0 $0 $0 $0 $0 $0

2062 $0 $0 $0 $0 $0 $0 $0 $0 $0

2063 $0 $0 $0 $0 $0 $0 $0 $0 $0

2064 $0 $0 $0 $0 $0 $0 $0 $0 $0

2065 $0 $0 $0 $0 $0 $0 $0 $0 $0

2066 $0 $0 $0 $0 $0 $0 $0 $0 $0

2067 $0 $0 $0 $0 $0 $0 $0 $0 $0

2068 $0 $0 $0 $0 $0 $0 $0 $0 $0

2069 $0 $0 $0 $0 $0 $0 $0 $0 $0

TOTAL $7 212 737 $287 499 $178 304 $1 502 082 $3 196 537 $2 048 315

OffensiveAnalysis

REQUIREDDISTRIB'S

SOCIAL SECURITY &PENSIONS

TAX-PAIDINVESTMENTS

TAX-DEFERREDINVESTMENTS

REAL ESTATEHOLDINGS

* Adjusted forInflation


29/33

Estate Planning

Prepared by:


Managing Partner



Voice: 480.907.3

March 25, 2007


30/33



March 25, 2007 Voice: 480.907.3

Basic Data

John MaryCurrent age 45 42.5

Age at death for this illustration 45 42.5

Administrative & probate expenses 4.0% 4.0%

Estimated final expenses $7,500 $7,500

Do you have a will in place? Yes Yes

No No

Marital Trust Provisions? No No

Credit Shelter Trust Provisions? No No

QTIP Trust Provisions? No No

Generation Skip Trust Provisions? No No

Irrevocable Life Insurance Trust? No No

Is a Durable General POA in place? No No

Is there a Durable Health Care POA in place? No No

Is there a Living Will in place? No No

Previous Taxable Gifts ($) $0 $0

Previous Gift Taxes Paid ($) $0 $0

Current Estate

ASSETS John Mary Joint Total

Cash & Equivalents $0 $1,232 $17,366 $18,598

Taxable Investments $0 $0 $15,425 $15,425

Retirement Accounts $43,319 $7,577 $0 $50,896

Real Estate $0 $0 $1,000,000 $1,000,000

Personal Property $0 $0 $70,000 $70,000

TOTAL $43,319 $8,809 $1,102,791 $1,154,919

LIABILITIES

Credit Cards $3,500 $0 $7,000 $10,500

Student Loans $65,000 $0 $0 $65,000

Other Loans $0 $0 $51,000 $51,000

Mortgages $0 $0 $670,000 $670,000TOTAL $68,500 $0 $728,000 $796,500

NET WORTH -$25,181 $8,809 $374,791 $358,419

ADJUSTMENTS

Life Insurance in Estate $1,195,000 $200,000

Estate share of Joint property $187,396 $187,396

ESTATE NET WORTH $1,382,396 $387,396

EstatePlanning

Is there a revocable living trustin effect?


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March 25, 2007 Voice: 480.907.3

Current Situation - Flowchart

If Client predeceases spouseClient

Client's Estate Estate Assets

$1,382,396

At Client's Death

Marital Transfer

$1,302,300

At Spouse's Death

Spouse's Estate

$1,689,695

To Beneficiaries *

$1,600,047

TOTAL COSTS & TAXES: $169,744

If Client predeceases spouse

Spouse's Estate Estate Assets

$387,396

At Spouse's Death

Marital Transfer

$349,840

At Client's Death

Client's Estate

$1,732,235

To Beneficiaries *

$1,638,146

TOTAL COSTS & TAXES: $131,645

EstatePlanning

The Marital Deduction allows unlimited assets to pass to a spousewithout estate taxation

Proceeds from life insurance on Client would transfer tobeneficiaries.

Spouse's own assets, plus the assets transferred from Client willbe included in Spouse's taxable estate.

Proceeds from life insurance on Spouse would be subject toestate tax.

The Marital Deduction allows unlimited assets to pass to a spousewithout estate taxation

Proceeds from life insurance on Spouse would transfer tobeneficiaries.

Client's own assets, plus the assets transferred from Spouse willbe included in Client's taxable estate.

Proceeds from life insurance on Client would be subject to estatetax.


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March 25, 2007 Voice: 480.907.3

Alternate Situation - Flowchart

If Client predeceases Spouse

Client's Estate

$197,081

At Client's Death

Credit Shelter Trust Marital/Trus

$165,767 $0

Life Insurance Trust

$1,195,000

At Spouse's Death Spouse's$161

Life Insura

$200

To Beneficiaries *

$1,692,222

TOTAL COSTS & TAXES:

If Spouse predeceases Client

Spouse's Estate

$161,339

At Spouse's Death

Credit Shelter Trust Marital/Trus

$131,455 $0

Life Insurance Trust

$200,000

At Client's Death Client's

$197

Life Insura

$1,19

To Beneficiaries *

$1,692,222

TOTAL COSTS & TAXES:

EstatePlanning

The Living Trust creates a Credit Shelter Trust with up to $2.0mil. Any remainingassets would be placed in a Marital Trust for the Spouse's primary financial needs.The Spouse may also have access to the Credit Shelter Trust assets if needed.Proceeds from the life insurance policies on the Client owned by the Life InsuranceTrust escape taxation in the estate and are passes to beneficiaries as specified by thetrust document.

Spouse's assets, the remaining assets held in the Marital Trust and Credit ShelterTrust would transfer to the specified beneficiaries. Proceeds from life insurancepolicies on Spouse owned by Life Insurance Trust escape taxation in the estate andare passes to beneficiaries as specified in the trust document.

The Living Trust creates a Credit Shelter Trust with up to $2.0mil. Any remainingassets would be placed in a Marital Trust for the Client's primary financial needs. TheClient may also have access to the Credit Shelter Trust assets if needed. Proceedsfrom the life insurance policies on the Spouse owned by the Life Insurance Trustescape taxation in the estate and are passes to beneficiaries as specified by the trustdocument.

Client's assets, the remaining assets held in the Marital Trust and Credit Shelter Trustwould transfer to the specified beneficiaries. Proceeds from life insurance policies on

Client owned by Life Insurance Trust escape taxation in the estate and are passes tobeneficiaries as specified in the trust document.


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Work John TRM Yes Yes Yes T

Home Mary WHL No No No F

Joint UNV

VCL

EIU

VAR

Documents

Capstar Plan (1)