Financial Goal Plan (1) - Amazon S3 · 2016-05-18 · Male - born 01/01/1970, age 46 Mary Female - born 01/01/1976, age 40 Married, US Citizens living in CA Business Owner - $110,000

Joe and Mary Sample

May 17, 2016

Financial Goal Plan (1)

Prepared by:

Leon Rousso, CFPFinancial Advisor

Table Of Contents

Personal Information and Summary of Financial Goals 1 - 2

Net Worth Summary - All Resources 3

Net Worth Detail - All Resources 4 - 5

Worksheet Detail - Social Security Combined Details 6 - 7

What If Worksheet 8 - 13

Current Portfolio Allocation 14 - 15

Worksheet Detail - Allocation Comparison 16 - 17

Worksheet Detail - Allocation Detail by Asset Class by Holding 18 - 20

Worksheet Detail - Retirement Distribution Cash Flow Chart 21 - 31

Life Insurance Needs Analysis 32

Life Insurance Needs Analysis Detail 33 - 35

Executive Summary 36 - 39

Personal Information and Summary of Financial Goals

05/17/2016

Prepared for : Joe and Mary Sample Company: Leon Rousso & Associates, Inc. Prepared by: Leon Rousso, CFP

Page 1 of 39

See Important Disclosure Information section in this Report for explanations of assumptions, limitations, methodologies, and a glossary.

Joe and Mary Sample

Needs

Retirement - Living Expense10

Joe (2033)Mary (2036)Both Retired (2036-2060)Mary Alone Retired (2061-2068)

6360$138,000$108,000Base Inflation Rate (3.00%)

Bi-Annual Major Vacations8

When Joe retiresRecurring every 2 years for a total of 10 times

$10,000Base Inflation Rate (3.00%)

College - UCLA8

4 years starting in 2030Attending University of California, Los Angeles

$29,086Base Inflation Rate plus 2.00% (5.00%)

College - Community College8

2 years starting in 2028 $4,000Base Inflation Rate plus 2.00% (5.00%)

Personal Information and Summary of Financial Goals

05/17/2016


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Personal Information

Joe

Male - born 01/01/1970, age 46

Mary

Female - born 01/01/1976, age 40

Married, US Citizens living in CA

Business Owner - $110,000

Employed - $45,000

• This section lists the Personal and Financial Goal information you provided, which willbe used to create your Report. It is important that it is accurate and complete.

Participant Name Date of Birth Age Relationship

Joe Jr 05/01/2012 4 Child

Mary Jr 01/01/2010 6 Child

Net Worth Summary - All Resources

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This is your Net Worth Summary as of 05/17/2016. Your Net Worth is the difference between what you own (your Assets) and what youowe (your Liabilities). To get an accurate Net Worth statement, make certain you have entered all of your Assets and Liabilities.

+ $1,907,000Other Assets

Investment Assets $393,567

Total Liabilities $523,000

Net Worth $1,777,567

$2,300,567Total Assets

-

Description Total

Investment Assets

Employer Retirement Plans $137,000

Annuities & Tax-Deferred Products $25,000

Taxable and/or Tax-Free Accounts $209,567

College Saving Plans $22,000

Total Investment Assets: $393,567

Other Assets

Home and Personal Assets $875,000

Business and Property $1,000,000

Cash Value Life $32,000

Total Other Assets: $1,907,000

Liabilities

Personal Real Estate Loan: $478,000

Other Personal Debt: $45,000

Total Liabilities: $523,000

Net Worth: $1,777,567

Net Worth Detail - All Resources

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This is your Net Worth Detail as of 05/17/2016. Your Net Worth is the difference between what you own (your Assets) and what you owe(your Liabilities). To get an accurate Net Worth statement, make certain you have entered all of your Assets and Liabilities.

Description TotalJointMaryJoe

Investment Assets

Employer Retirement Plans

Core Growth $100,000$100,000

SEP $37,000$37,000

Annuities & Tax-Deferred Products

Prudential Fixed Annuity $25,000$25,000

Taxable and/or Tax-Free Accounts

Checking & Savings $52,000$52,000

Nuveen Muni Bond Funds $70,000$70,000

Retail Brokerage Account $87,567$87,567

College Saving Plans

529 Savings Plan for Joe Jr. $12,000$12,000

529 Savings Plan for Mary-Jo Jr. $10,000$10,000

Total Investment Assets: $393,567$144,000 $110,000 $139,567

Other Assets

Home and Personal Assets

Los Angeles Home $875,000$875,000

Business and Property

Widget Factory $1,000,000$1,000,000

Cash Value Life

New York LIfe Permanent $32,000$32,000

Total Other Assets: $1,907,000$1,032,000 $0 $875,000

Liabilities

Personal Real Estate Loan:

Los Angeles Home $478,000$478,000

Net Worth Detail - All Resources

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Description TotalJointMaryJoe

Liabilities

Other Personal Debt:

All Credit Cards $17,000$17,000

Under Graduate Student Loan $28,000$28,000

Total Liabilities: $523,000$28,000 $0 $495,000

Net Worth: $1,777,567

Worksheet Detail - Social Security Combined Details

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Ages/Event Joe MaryYear

67 / 61 $54,8182037

68 / 62 $56,1882038

69 / 63 $57,5932039

70 / 64 $59,0322040

71 / 65 $60,5082041

72 / 66 $62,0212042

73 / 67 $63,572 $38,9572043

74 / 68 $65,161 $39,9312044

75 / 69 $66,790 $40,9292045

76 / 70 $68,460 $41,9522046

77 / 71 $70,171 $43,0012047

78 / 72 $71,925 $44,0762048

79 / 73 $73,723 $45,1782049

80 / 74 $75,567 $46,3072050

81 / 75 $77,456 $47,4652051

82 / 76 $79,392 $48,6522052

83 / 77 $81,377 $49,8682053

85 / 79 $85,497 $52,3932055

86 / 80 $87,634 $53,7022056

87 / 81 $89,825 $55,0452057

88 / 82 $92,071 $56,4212058

89 / 83 $94,372 $57,8322059

Joe's Plan Ends $96,732 $59,2772060

- / 85 $99,1502061

- / 86 $101,6292062

- / 87 $104,1692063

- / 88 $106,7742064

- / 89 $109,4432065

- / 90 $112,1792066

- / 91 $114,9832067

Mary's Plan Ends $117,8582068

Social Security Combined Details for Growth Portfolio

Ages/Event Joe MaryYear

84 / 78 $83,411 $51,1152054

Worksheet Detail - Social Security Combined Details

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Social Security Combined Details for Growth Portfolio

Notes

Assumption for Cost of Living Adjustment (COLA) is 2.50% annually.

What If Worksheet

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This Worksheet allows you to analyze and compare the results of one or more scenarios that you created by varying the Plan assumptions.

Goals

Estimated % of Goal Funded

Current Scenario Growth Portfolio Conservative Growth

Average Return Bad Timing Average Return Bad Timing Average Return Bad Timing

Needs 82% 76% 100% 100% 100% 100%

10 Retirement

8 Bi-Annual Major Vacations

8 College - UCLA

8 College - Community College

$51

$244

Current dollars (in thousands) :

Future dollars (in thousands) :

$3,634

$17,410

Safety Margin (Value at End of Plan)

$1,025

$4,910

$51

$244

$2,741

$13,130

$192

$918

Your Confidence Zone: 72% - 87%

Likelihood of Funding All GoalsMonte Carlo Results

Total Spending : $4,538,344 $4,538,344 $4,538,344

Indicates different data between the Scenario in the first column and the Scenario in any other column.

What If Worksheet

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Key Assumptions Current Scenario Growth Portfolio Conservative Growth

Stress Tests

Method(s) Bad Timing Program Estimate Years of bad returns: 2033: -9.38% 2034: -1.96%

Bad Timing Program Estimate Years of bad returns: 2033: -18.25% 2034: -5.27%

Bad Timing Program Estimate Years of bad returns: 2033: -11.41% 2034: -2.32%

False 0

Funding Order

Assets - Ignore Earmarks No No No False 1

Retirement Income - Ignore Earmarks No No No False 1

Hypothetical Average Rate of Return

Before retirement portfolio set : MGP Sets MGP Sets False 1

Portfolio : Current Growth With Alt Bal w/Alt False 1

Total Return : 5.46% 7.71% 6.78% False 1

Standard Deviation : 7.42% 12.98% 9.10% False 1

Total Return Adjustment : 0.00% 0.00% 0.00% False 1

Adjusted Real Return : 2.46% 4.71% 3.78% False 1

After retirement portfolio set : MGP Sets MGP Sets False 1

Portfolio : Current Growth With Alt Bal w/Alt False 1

Total Return : 5.46% 7.71% 6.78% False 1

Standard Deviation : 7.42% 12.98% 9.10% False 1

Total Return Adjustment : 0.00% 0.00% 0.00% False 1

Adjusted Real Return : 2.46% 4.71% 3.78% False 1

Base inflation rate : 3.00% 3.00% 3.00% False 1

Tax-Free Options

Before Retirement True 1

Reallocate a portion of bonds to tax-free: No No No False 1

Percent of bond allocation to treat as tax-free: 0.00% 0.00% 0.00% False 1

After Retirement True 1

Reallocate a portion of bonds to tax-free: No No No False 1

Percent of bond allocation to treat as tax-free: 0.00% 0.00% 0.00% False 1


What If Worksheet

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Goals

Living Expense True 1

Retirement Age True 1

Joe 63 63 63 False 1

Mary 60 60 60 False 1

Planning Age True 1

Joe 90 90 90 False 1

Mary 92 92 92 False 1

One Retired True 1

Joe Retired and Mary Employed $0 $0 $0 False 1

Mary Retired and Joe Employed $0 $0 $0 False 1

Both Retired True 1

Both Retired $138,000 $138,000 $138,000 False 1

One Alone - Retired True 1

Mary Alone Retired $108,000 $108,000 $108,000 False 1

Joe Alone Retired $108,000 $108,000 $108,000 False 1

One Alone - Employed True 1

Joe Alone Employed $0 $0 $0 False 1

Mary Alone Employed $0 $0 $0 False 1

Bi-Annual Major Vacations True 1

Year : At Joe's retirement At Joe's retirement At Joe's retirement False 1

Cost : $10,000 $10,000 $10,000 False 1

Is recurring : Yes Yes Yes False 1

Years between occurrences : 2 2 2 False 1

Number of occurrences : 10 10 10 False 1

College - UCLA True 1

Year : 2030 2030 2030 False 1

Years of Education : 4 4 4 False 1

Annual Cost : $29,086 $29,086 $29,086 False 1


What If Worksheet

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Goals

College - Community College True 1

Year : 2028 2028 2028 False 1

Years of Education : 2 2 2 False 1

Annual Cost : $4,000 $4,000 $4,000 False 1

Retirement Income

Phone Company Pension (Joe) True 1

Annual Income : $24,000 $24,000 $24,000 False 1

Start Year : Joe's retirement Joe's retirement Joe's retirement False 1

Select when income will end : End of Plan End of Plan End of Plan False 1

Year to end retirement income : False 1

Survivor Benefit : 100% 100% 100% False 1

Social Security True 1

Select Social Security Strategy Current At FRA At FRA False 1

Joe True 1

Filing Method : Normal Normal Normal False 1

Age to File Application : 67 67 67 False 1

Age Retirement Benefits begin : 67 67 67 False 1

First Year Benefit : $32,638 $32,638 $32,638 False 1

Mary True 1

Filing Method : Normal Normal Normal False 1

Age to File Application : 67 67 67 False 1

Age Retirement Benefits begin : 67 67 67 False 1

First Year Benefit : $20,000 $20,000 $20,000 False 1

Reduce Benefits By : 0% 0% 0% False 1


What If Worksheet

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Asset Additions

Core Growth 12.00% 12.00% 12.00% True 1

Roth: 0.00% 0.00% 0.00% False 1

Maximum contribution each year: No No No False 1

% Designated as Roth: 0.00% 0.00% 0.00% False 1

Plan addition amount: $13,500 $13,500 $13,500 False 1

Year additions begin: 2016 2016 2016 False 1

Mary - Fund All Goals False 1

529 Savings Plan for Mary-Jo Jr. True 1

After-Tax Addition: $1,200 $1,200 $1,200 False 1


Mary - College - Community College False 1

529 Savings Plan for Joe Jr. True 1

After-Tax Addition: $600 $600 $600 False 1


Joe - College - UCLA False 1

Extra Savings by Tax Category

Joe's Qualified $10,000 $10,000 False 1

Mary's Qualified $5,000 $5,000 False 1

Joe's Roth $0 $0 False 1

Mary's Roth $0 $0 False 1

Joe's Tax-Deferred $0 $0 False 1

Mary's Tax-Deferred $0 $0 False 1

Taxable $20,000 $0 False 1


What If Worksheet

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Other Assets

Widget Factory True 1

Include in Plan : Yes Yes Yes False 1

When received : Joe's retirement Joe's retirement Joe's retirement False 1

Amount of cash received : $1,000,000 $1,000,000 $1,000,000 False 1

Parents Home True 1

Include in Plan : Yes Yes Yes False 1

When received : 2025 2025 2025 False 1

Amount of cash received : $400,000 $400,000 $400,000 False 1

Tax Options

Include Tax Penalties : Yes No No False 1

Change Tax Rate? No No No False 1

Year To Change : False 1

Change Tax Rate by this % (+ or -) : 0.00% 0.00% 0.00% False 1


Current Portfolio Allocation

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Total Stock35%

This page shows how your Investment Assets are currently allocated among the different Asset Classes. It includes only those Assets youhave identified to fund Goals in this Plan.

Projected Returns

Total Return 5.46%

Base Inflation Rate 3.00%

Real Return 2.46%

Standard Deviation 7.42%

Total Return Adjusted for Tax Free Assets 5.27%

Bear Market Returns

Great Recession November 2007 thru February 2009 -11%

Bond Bear Market July 1979 thru February 1980 3%

Asset Class Rate of ReturnValue % of Total

Investment Portfolio

21%$82,7392.00%Cash & Cash Alternatives

31%$122,1854.00%Short Term Bonds

8%$32,0635.00%Intermediate Term Bonds

3%$10,7576.00%Long Term Bonds

8%$32,1579.00%Large Cap Value Stocks

13%$50,3078.75%Large Cap Growth Stocks

5%$19,4609.25%Mid Cap Stocks

3%$12,5909.50%Small Cap Stocks

5%$19,4608.75%International Developed Stocks

0%$1,8509.00%International Emerging Stocks

0%$06.50%Redwood IX

0%$06.50%NorthStar

0%$05.00%Real Estate Holdings VG REIT VTI

0%$07.00%Private Investments

** The Investment Assets allocated to Asset Class 'Unclassified' are not included in the calculation of the Portfolio Total Return and Standard Deviation.

Current Portfolio Allocation

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Asset Class Rate of ReturnValue % of Total

Investment Portfolio

3%$10,0000.00%Unclassified**

Total : 100%$393,567

Tax-Free Rates of Return

3.00%Short Term Bonds

4.00%Intermediate Term Bonds

4.00%Long Term Bonds


Worksheet Detail - Allocation Comparison

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Current Portfolio

These charts compare your Current Portfolio with the Target Portfolio you selected and show the allocation changes you should consider.

Target PortfolioGrowth With Alternatives

Projected Returns

5.46% Total Return 7.71%

3.00% Base Inflation Rate 3.00%

2.46% Real Return 4.71%

7.42% Standard Deviation 12.98%

Bear Market Returns

-11% Great Recession -36%

3% Bond Bear Market 14%

Asset Class % of Total Target AmountCurrent Amount % of Total

Portfolio Comparison with Allocation Changes

Increase / Decrease

Cash & Cash Alternatives 3% $11,80721%$82,739 -$70,932

Short Term Bonds 6% $23,61431%$122,185 -$98,571

Intermediate Term Bonds 4% $15,7438%$32,063 -$16,321

Long Term Bonds 0% $03%$10,757 -$10,757

Large Cap Value Stocks 24% $94,4568%$32,157 $62,299

Large Cap Growth Stocks 19% $74,77813%$50,307 $24,471

Mid Cap Stocks 8% $31,4855%$19,460 $12,026

Small Cap Stocks 6% $23,6143%$12,590 $11,024

International Developed Stocks 7% $27,5505%$19,460 $8,090

International Emerging Stocks 2% $7,8710%$1,850 $6,021

Redwood IX 9% $35,4210%$0 $35,421

NorthStar 7% $27,5500%$0 $27,550

Real Estate Holdings VG REIT VTI 5% $19,6780%$0 $19,678

Private Investments 0% $00%$0 $0

Scenario: Growth Portfolio


Worksheet Detail - Allocation Comparison

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Asset Class % of Total Target AmountCurrent Amount % of Total

Portfolio Comparison with Allocation Changes

Increase / Decrease

Unclassified** 0% $03%$10,000 -$10,000

$393,567 $393,567 $0



Worksheet Detail - Allocation Detail by Asset Class by Holding

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Account

% %$ $

Current Portfolio Target PortfolioHolding Difference

Cash & Cash Alternatives 21.02% 3%$82,739 $11,807 -$70,932

Taxable Account Total Checking & Savings $52,000

Alpha Bond Stratagey Core Growth $500

Cash/Money Market Core Growth $10,000

Taxable Account Total Retail Brokerage Account $18,389

Account Total SEP $1,850

Short Term Bonds 31.05% 6%$122,185 $23,614 -$98,571

Alpha Bond Stratagey Core Growth $3,500

High Yield Core Growth $5,000

Account Total Nuveen Muni Bond Funds $70,000

Account Total Prudential Fixed Annuity $25,000



Intermediate Term Bonds 8.15% 4%$32,063 $15,743 -$16,321

Alpha Bond Stratagey Core Growth $5,500




Long Term Bonds 2.73% $10,757 -$10,757

Alpha Bond Stratagey Core Growth $500



Large Cap Value Stocks 8.17% 24%$32,157 $94,456 $62,299

American Funds Invmt Co of Amer A 529 Savings Plan for Joe Jr. $6,000

American Funds Invmt Co of Amer A 529 Savings Plan for Mary-Jo Jr. $5,000

EQIS Utilities Core Growth $5,000



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Account

% %$ $


Large Cap Value Stocks 8.17% 24%$32,157 $94,456 $62,299



Large Cap Growth Stocks 12.78% 19%$50,307 $74,778 $24,471

American Funds Invmt Co of Amer A 529 Savings Plan for Joe Jr. $6,000

American Funds Invmt Co of Amer A 529 Savings Plan for Mary-Jo Jr. $5,000

EQIS Utilities Core Growth $5,000

Golub LCV Core Growth $10,000

Martin Investment Core Growth $10,000



Mid Cap Stocks 4.94% 8%$19,460 $31,485 $12,026

EQIS MCG/EQIS MCV Core Growth $10,000



Small Cap Stocks 3.20% 6%$12,590 $23,614 $11,024

Redwood SWC/EQIS SCG Core Growth $10,000


International Developed Stocks 4.94% 7%$19,460 $27,550 $8,090

Vanguard Total International Stock ETF Core Growth $10,000



International Emerging Stocks 0.47% 2%$1,850 $7,871 $6,021


Redwood IX 9% $35,421 $35,421

No Holdings are allocated to this asset class



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Account

% %$ $


NorthStar 7% $27,550 $27,550


Real Estate Holdings VG REIT VTI 5% $19,678 $19,678


Unclassified 2.54% $10,000 -$10,000

Vanguard Information Technology ETF Core Growth $10,000


Worksheet Detail - Retirement Distribution Cash Flow Chart

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YearAge (Joe / Mary)

Retirement and Strategy Income Assign To

Phone Company Pension 24,000Fund All Goals 24,000 24,000 24,000 24,000 24,000 24,000 24,000

Social Security - Joe 0Fund All Goals 54,818 56,188 57,593 59,032 60,508 62,021 63,572

Social Security - Mary 0Fund All Goals 0 0 0 0 0 0 38,957

Total Retirement and StrategyIncome

24,000 78,818 80,188 81,593 83,032 84,508 86,021 126,528

Other Additions Assign To

New York LIfe Permanent 0Fund All Goals 0 0 0 0 0 0 0

Total Other Additions 0 0 0 0 0 0 0 0

Investment Earnings 421,032 435,826 451,855 467,163 484,123 499,684 517,517 536,905

Total Income and Earnings 445,032 514,643 532,043 548,756 567,155 584,192 603,538 663,434

Cash Used To Fund GoalsEstimated %Funded

Retirement - Living Expense 249,243100% 256,721 264,422 272,355 280,526 288,941 297,610 306,538

Bi-Annual Major Vacations 0100% 18,603 0 19,736 0 20,938 0 22,213

Total Goal Funding (249,243) (275,324) (264,422) (292,091) (280,526) (309,879) (297,610) (328,751)

Total Taxes and Tax Penalty (25,662) (40,151) (39,073) (37,447) (52,590) (51,826) (52,066) (63,070)

Cash Surplus/Deficit (Net Changein Portfolio)

170,127 199,169 228,547 219,218 234,040 222,487 253,862 271,613

Portfolio Value

Future Dollars

Beginning Value 5,748,633 5,918,760 6,117,930 6,346,477 6,565,694 6,799,734 7,022,221 7,276,083

Cash Surplus/Deficit 170,127 199,169 228,547 219,218 234,040 222,487 253,862 271,613

Investment Asset Additions 0 0 0 0 0 0 0 0

Ending Value 5,918,760 6,117,930 6,346,477 6,565,694 6,799,734 7,022,221 7,276,083 7,547,696

Current Dollars

Ending Value 3,181,625 3,192,902 3,215,707 3,229,887 3,247,591 3,256,167 3,275,613 3,298,922


Scenario : Growth Portfolio using Average Returns


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Taxes

Total Taxes 25,662 40,151 39,073 37,447 52,590 51,826 52,066 63,070

Tax Penalty 0 0 0 0 0 0 0 0

Federal Marginal Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%

State Marginal and Local Tax Rate 8.00% 9.30% 9.30% 9.30% 9.30% 9.30% 9.30% 9.30%

Estimated Required MinimumDistribution (RMD)

Joe 0 0 0 0 49,325 52,928 56,786 60,916

Mary 0 0 0 0 0 0 0 0

Adjusted Portfolio Value 5,748,633 5,918,760 6,117,930 6,346,477 6,565,694 6,799,734 7,022,221 7,276,083

Portfolio Withdrawal Rate 4.36% 4.00% 3.65% 3.91% 3.81% 4.08% 3.75% 3.65%



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Social Security - Joe 65,161Fund All Goals 66,790 68,460 70,171 71,925 73,723 75,567 77,456

Social Security - Mary 39,931Fund All Goals 40,929 41,952 43,001 44,076 45,178 46,307 47,465


129,092 131,719 134,412 137,172 140,001 142,901 145,874 148,921





Total Income and Earnings 687,697 711,247 735,349 757,759 782,670 806,219 832,358 856,965



Bi-Annual Major Vacations 0100% 23,566 0 25,001 0 26,523 0 28,139




307,854 297,762 296,499 278,979 312,639 293,125 327,872 306,139

Portfolio Value

Future Dollars

Beginning Value 7,547,696 7,855,550 8,153,312 8,449,811 8,728,790 9,041,429 9,334,554 9,662,427



Ending Value 7,855,550 8,153,312 8,449,811 8,728,790 9,041,429 9,334,554 9,662,427 9,968,566

Current Dollars

Ending Value 3,333,474 3,359,057 3,379,816 3,389,712 3,408,856 3,416,866 3,433,866 3,439,479




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Taxes

Total Taxes 64,109 64,713 103,887 108,768 114,669 120,549 127,483 134,374

Tax Penalty 0 0 0 0 0 0 0 0




Joe 65,337 70,067 75,127 80,156 85,910 91,585 97,591 103,941

Mary 0 0 114,010 122,336 131,254 140,801 151,020 161,953





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Social Security - Joe 79,392Fund All Goals 81,377 83,411 85,497 87,634 89,825 92,071 94,372



152,044 155,245 158,526 161,889 165,336 168,870 172,492 176,204





Total Income and Earnings 884,236 912,113 940,548 969,549 999,090 1,029,134 1,059,639 1,090,557



Bi-Annual Major Vacations 0100% 0 0 0 0 0 0 0




341,861 349,387 356,152 363,112 369,610 375,571 380,914 385,557

Portfolio Value

Future Dollars

Beginning Value 9,968,566 10,310,427 10,659,814 11,015,966 11,379,078 11,748,689 12,124,260 12,505,174



Ending Value 10,310,427 10,659,814 11,015,966 11,379,078 11,748,689 12,124,260 12,505,174 12,890,731

Current Dollars

Ending Value 3,453,817 3,466,850 3,478,330 3,488,334 3,496,739 3,503,417 3,508,238 3,511,072




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Taxes

Total Taxes 142,412 150,764 160,075 169,387 179,318 189,897 201,148 213,096

Tax Penalty 0 0 0 0 0 0 0 0




Joe 110,645 117,714 125,153 132,070 139,226 146,603 154,176 161,912

Mary 173,646 185,270 198,571 211,688 225,570 240,247 255,743 272,081





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2064- / 88

2065- / 89

2066- / 90

2067- / 91




Social Security - Joe 96,732Fund All Goals 0 0 0 0 0 0 0



180,009 123,150 125,629 128,169 130,774 133,443 136,179 138,983


New York LIfe Permanent 0Fund All Goals 250,000 0 0 0 0 0 0

Total Other Additions 0 250,000 0 0 0 0 0 0

Investment Earnings 941,861 992,497 1,025,387 1,058,894 1,092,946 1,127,479 1,162,578 1,198,245

Total Income and Earnings 1,121,870 1,365,647 1,151,015 1,187,064 1,223,719 1,260,922 1,298,757 1,337,228



Bi-Annual Major Vacations 0100% 0 0 0 0 0 0 0




389,990 706,305 465,522 473,797 481,272 488,156 496,540 504,764

Portfolio Value

Future Dollars

Beginning Value 12,890,731 13,280,722 13,987,027 14,452,549 14,926,346 15,407,617 15,895,773 16,392,313



Ending Value 13,280,722 13,987,027 14,452,549 14,926,346 15,407,617 15,895,773 16,392,313 16,897,077

Current Dollars

Ending Value 3,511,936 3,590,981 3,602,424 3,612,158 3,620,024 3,625,938 3,630,294 3,633,088




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206090 / 84

2061- / 85

2062- / 86

2063- / 87

2064- / 88

2065- / 89

2066- / 90

2067- / 91


Taxes

Total Taxes 225,219 250,929 264,828 279,982 296,165 313,095 328,756 344,798

Tax Penalty 0 0 0 0 0 0 0 0




Joe 168,276 0 0 0 0 0 0 0

Mary 289,277 432,630 456,071 480,236 505,044 530,383 551,231 571,741





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2068- / 92



Phone Company Pension 24,000Fund All Goals

Social Security - Joe 0Fund All Goals

Social Security - Mary 117,858Fund All Goals


141,858


New York LIfe Permanent 0Fund All Goals

Total Other Additions 0

Investment Earnings 1,234,468

Total Income and Earnings 1,376,326


Retirement - Living Expense 502,296100%

Bi-Annual Major Vacations 0100%

Total Goal Funding (502,296)

Total Taxes and Tax Penalty (361,142)


512,889

Portfolio Value

Future Dollars

Beginning Value 16,897,077

Cash Surplus/Deficit 512,889

Investment Asset Additions 0

Ending Value 17,409,966

Current Dollars

Ending Value 3,634,335

Cash Surplus/Deficit 107,066



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2068- / 92


Taxes

Total Taxes 361,142

Tax Penalty 0

Federal Marginal Tax Rate 33.00%

State Marginal and Local Tax Rate 9.30%


Joe 0

Mary 591,672

Adjusted Portfolio Value 16,897,077

Portfolio Withdrawal Rate 4.27%



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• When married, if either Social Security Program Estimate or Use This Amount and EvaluateAnnually is selected for a participant, the program will default to the greater of the selectedbenefit or the age adjusted spousal benefit based on the other participant's benefit.

• The Income section includes Retirement Income, Strategy Income, Stock Options, RestrictedStock, Other Assets, proceeds from Insurance Policies, and any remaining asset value after72(t) distributions have been completed.

• Retirement Income includes the following: Social Security, pension, annuity, rental property,royalty, alimony, part-time employment, trust, and any other retirement income as entered in thePlan.

• Additions and withdrawals occur at the beginning of the year.

• Income from Other Assets and proceeds from Insurance Policies are after-tax values. Anyremaining asset value after 72(t) distributions have been completed is a pre-tax value.

Notes

• Investment Earnings are calculated on all assets after any withdrawals for funding goals, taxeson withdrawals, and tax penalties, if applicable, are subtracted.

• Shortfalls that occur in a particular year are denoted with an 'x' in the Cash Used to Fund Goalssection of the chart.

• Strategy Income is based on the particulars of the Goal Strategies selected. Strategy Incomefrom immediate annuities, 72(t) distributions, and variable annuities with a guaranteed minimumwithdrawal benefit (GMWB) is pre-tax. Strategy Income from Net Unrealized Appreciation (NUA)is after-tax.

• Stock Options and Restricted Stock values are after-tax.

• Portfolio Withdrawal Rate (%) is the percentage withdrawn from the investment portfolio tocover cash deficits.

• The Total Taxes are a sum of (1) taxes on retirement income, (2) taxes on strategy income, (3)taxes on withdrawals from qualified assets for Required Minimum Distributions, (4) taxes onwithdrawals from taxable assets' untaxed gain used to fund Goals in that year, (5) taxes onwithdrawals from tax-deferred or qualified assets used to fund goals in that year, and (6) taxes onthe investment earnings of taxable assets. Tax rates used are detailed in the Tax and InflationOptions page. (Please note, the Total Taxes do not include any taxes owed from the exercise ofStock Options or the vesting of Restricted Stock.)

• Tax Penalties can occur when Qualified and Tax-Deferred Assets are used prior to age 59½. Ifthere is a value in this row, it illustrates that you are using your assets in this Plan in a mannerthat may incur tax penalties. Generally, it is better to avoid tax penalties whenever possible.

• The Cash Surplus/Deficit is the net change in the Portfolio Value for the specified year. Thisvalue is your income and earnings minus what was spent to fund goals minus taxes.

• The Ending Value of the Portfolio in Current Dollars is calculated by discounting the EndingValue of the Portfolio in Future Dollars by the Base Inflation Rate for this Plan.

• The Cash Surplus/Deficit in Current Dollars is calculated by discounting the Cash Surplus/Deficitin Future Dollars by the Base Inflation Rate for this Plan.

• These calculations do not incorporate penalties associated with use of 529 Plan withdrawals fornon-qualified expenses.

• When married, ownership of qualified assets is assumed to roll over to the surviving co-client atthe death of the original owner. It is also assumed the surviving co-client inherits all assets of theoriginal owner.

Life Insurance Needs Analysis

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Life insurance can be an important source of funds for your family in the event of your premature death. In this section, we analyzewhether there are sufficient investment assets and other resources to support your family if you were to die this year and, if there is adeficit, what additional life insurance may be required to provide the income needed by your survivors.

If Joe Dies

Living Expenses covered until Mary is 92

If Mary Dies

Living Expenses covered until Joe is 90

Life Insurance Needed

Existing Life Insurance

Additional Needed

$2,038,828

$1,000,000

$1,038,828

$1,338,672

$250,000

$1,088,672

Scenario : Growth Portfolio

Life Insurance Needs Analysis Detail

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$1,000,000 Existing Life Insurance $250,000

Liabilities and Final Expenses

$523,000 Debts Paid Off $523,000

$10,000 Final Expenses and Estate Taxes $10,000

$0 Bequests $0

$0 Other Payments $0

If Joe Dies If Mary Dies

$0 Additional Death Benefit $0

Life Insurance


Living Expenses for Survivors

Mary's Age Event Joe's Age

60 Retirement 63

92 Plan Ends 90

$126,000 Annual Expense (current dollars, after-tax) $126,000

61 Cover expense until Co-Client is this age 65

$100,800 Annual Expense (current dollars, after-tax) $100,800

92 Cover expense until Co-Client is this age 90


First Living Expense

Second Living Expense

Checked boxes indicate goals to be funded upon death.

Financial Goals


Bi-Annual Major Vacations

College - UCLA

College - Community College



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Amount of cash provided by sale of Assets (after tax)$0 $0


Sell Other Assets

Your Assets that are not being sold to fund goals are listed below.

Description Current Value

Los Angeles Home $875,000

Checked boxes indicate Other Assets that will be included in this analysis and used to fund goals.


Parents Home

Widget Factory



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Annual Other Income Amount

(current dollars before tax)

Will this amount inflate?

$0 $0

No No


Other Income (Income other than employment income)

Include Amount IncludeAmount


Description

Phone Company Pension$24,000 $24,000

Use Program Estimate Federal State Local

18.00% 9.30% 0.00%

Tax Rate (Estimated average tax rate)

Use Return in the Plan you selected Rate of Return

7.71%

Rate of Return

Dependents

Name Date of Birth Age Relationship

Joe Jr 05/01/2012 4 Both Are Parents

Mary Jr 01/01/2010 6 Both Are Parents


Executive Summary

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Reaching Your Goals Status

Net Worth

$2,300,567Assets

$523,000Liabilities

$1,777,567Net Worth

Results

If you implement the following suggestions, there is a 89% likelihood of funding all of the Financial Goals in your Plan.

Executive Summary

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Goals

Maintain your Total Goal Spending at $4,538,344

Joe retires at age 63, in the year 2033.

Mary retires at age 60, in the year 2036.

Goal Amount Changes

Needs

10 Retirement - Living Expense

Both Retired $138,000

Joe Retired and Mary Employed $0

Mary Alone Retired $108,000

8 Bi-Annual Major Vacations $10,000

Starting At Joe's retirement

Years between occurrences 2

Number of occurrences 10

8 College - UCLA $29,086

Years of School 4

Start Year 2030

8 College - Community College $4,000

Years of School 2

Start Year 2028

Executive Summary

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Save and Invest Status

Savings

Consider the following changes in order to increase your savings by $35,000 to a total of $59,300 per year.

Joe - Increase qualified additions by $10,000. Make this change in 2016.

Mary - Increase qualified additions by $5,000. Make this change in 2016.

Increase taxable additions by $20,000. Make this change in 2016.

Invest

Your Portfolio should be re-allocated Changes Required to match Growth With Alternatives

Investment Portfolio Asset Allocation

CurrentGrowth WithAlternatives

Asset Class Increase By Decrease By

-$70,932Cash & Cash Alternatives

-$98,571Short Term Bonds

-$16,321Intermediate Term Bonds

-$10,757Long Term Bonds

$62,299Large Cap Value Stocks

$24,471Large Cap Growth Stocks

$12,026Mid Cap Stocks

$11,024Small Cap Stocks

$8,090International Developed Stocks

$6,021International Emerging Stocks

$35,421Redwood IX

$27,550NorthStar

$19,678Real Estate Holdings VG REIT VTI

-$10,000Unclassified

$206,581 -$206,581Total :

Executive Summary

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Social Security Status

Personal Information

Your Full Retirement Age (FRA) is the age that you would receive 100% of your Primary Insurance Amount (PIA). Depending on theyear you were born, your FRA is between 65-67 years old. Taking benefits before or after your FRA will decrease or increase theamount you receive, respectively.

Joe's FRA is 67 and 0 months in 2037.

Mary's FRA is 67 and 0 months in 2043.

Your Primary Insurance Amount (PIA) is the benefit you would receive if you began benefits at your Full Retirement Age (FRA). It iscalculated from the earnings on which you paid Social Security taxes, throughout your life.

Joe's estimated annual PIA is $32,638

Mary's estimated annual PIA is $20,000

Strategy Information

Joe files a normal application at 67 in 2037.

Mary files a normal application at 67 in 2043.

Using this strategy, your household's total lifetime benefit is estimated to be $1,404,410 in today's dollars, based upon the informationyou entered. For a better estimate, go the ssa.gov

Documents

Financial Goal Plan (1) - Amazon S3 · 2016-05-18 · Male - born 01/01/1970, age 46 Mary Female - born 01/01/1976, age 40 Married, US Citizens living in CA Business Owner - $110,000