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Financial Plan
PREPARED BY:
Christopher Moser(414) 555-5555
PREPARED FOR:John and Jane Smith
May 05, 2014
ADVICENT S
AMPLE
Table of Contents
1Cover Page
2Table of Contents
3Financial Snapshot
4Net Worth Summary - Current Plan
5Net Worth Timeline Comparison
6Cash Flow Outlook - Proposed Plan
9Assets at Retirement
10Retirement Goal Coverage
11Retirement Objective Coverage
12What Are My Retirement Goal Options?
13Probability of Goal Success - Current Plan
14Probability of Goal Success - Proposed Plan
15Education Goal Coverage
16What are my Education Goal Options?
17Current Asset Mix
18Asset Allocation Portfolio Comparison - Suggested - Proposed Plan
19Action Plan
ADVICENT S
AMPLE
Financial SnapshotJohn and Jane Smith
Your AdvisorChristopher Moser
(414) 555-5555
Net Worth $1,701,652
Cash Flow $22,685
Probability of Success25%Retirement
0%Marquette University (Jack)
Assumptions
9090Life Expectancy
5961Retire At
3.00%3.00%Inflation Rate
JaneJohn
Goal Coverage74%Retirement
37%Marquette University (Jack)
53%Long Term Care - John
61%Long Term Care - Jane
Asset Allocation
12.40%Standard Deviation
7.11%Rate of Return
(%)($)Asset Class
22.16%$308,000Cash
19.44%$270,200Large Cap Growth Equity
18.07%$251,200Large Cap Value Equity
11.64%$161,800Mid Cap Equity
9.59%$133,300International Equity
5.83%$81,000International Bonds
3.96%$55,000Short Term Bonds
3.70%$51,400Emerging Markets Equity
1.79%$24,900Intermediate Term Bonds
1.49%$20,700Long Term Bonds
$1,390,000Total
2.34%$32,500Others
Insurance CoverageBenefit AmountJohn
$450,000Term 20 Life
$200/dayLong-term Care
Jane
$250,000Term 20 Life
$200/dayLong-term Care
Important: The calculations or other information generated by NaviPlan® version 14.1 regarding the likelihood of various investment outcomes arehypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposesonly because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and otheroperating expenses would materially reduce these calculations.
Prepared by Christopher Moser Page 3 of 19
ADVICENT S
AMPLE
Net Worth SummaryCurrent Plan
Net WorthLiabilitiesAssets
This report displays a summary of your net worth information as of the date of plan analysis. Net worth represents the total value of your assets (what you own) after subtracting your liabilities (what you owe). This figure allows you to get a good picture of your overall financial situation.
Your net worth for this plan is: $1,701,652
$1,701,652$45,000$786,652$450,000$420,000Total
$83,348$0$83,348$0$0Liabilities
$395,000$45,000$350,000$0$0Lifestyle Assets
$870,000$0$0$450,000$420,000Qualified Assets
$520,000$0$520,000$0$0Non-Qualified Assets
TotalCommunityProperty
JointJaneJohn
Assets
Net Worth Summary as of 3/3/2014
Important: The calculations or other information generated by NaviPlan® version 14.1 regarding the likelihood of various investment outcomes arehypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposesonly because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and otheroperating expenses would materially reduce these calculations.
Prepared by Christopher Moser Page 4 of 19
ADVICENT S
AMPLE
Net Worth Timeline Comparison
Proposed Plan
Current Plan
This report displays a comparison of net worth data in all selected plan scenarios over time. These projectionsshow end-of-year values beginning with the year of plan analysis and are projected until the death of the lastsurviving client. Use this report to compare the effects of different plan scenarios on net worth.
Important: The calculations or other information generated by NaviPlan® version 14.1 regarding the likelihood of various investment outcomes arehypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposesonly because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and otheroperating expenses would materially reduce these calculations.
Prepared by Christopher Moser Page 5 of 19
ADVICENT S
AMPLE
Cash Flow OutlookProposed Plan
This report projects detailed cash flow information over the next five years for the selected plan scenario.Cash inflows and outflows are organized by category and then summarized as aggregate totals; this strategyprovides a holistic picture of the projected cash flow situation without sacrificing detailed information. Usethis report to analyze the cash flow situation over the next five years for the selected plan scenario.
57/552016
58/562017
59/572018
55/532014
56/542015
John/JaneAgeYear
Cash Inflows
$102,907
$88,055
$8,000
$10,000
$208,962
$0
$0
$0
$0
$0
$0
$0
$0
$446
$271
$2,786
$364
$27,073
$30,940
$239,902
$105,995
$90,696
$8,000
$10,000
$214,691
$1,695
$14,268
$1,373
$25,446
$42,782
$0
$0
$0
$664
$316
$2,220
$310
$27,573
$31,083
$288,556
$109,174
$93,417
$8,000
$10,000
$220,592
$2,510
$14,797
$1,424
$26,389
$45,120
$0
$0
$0
$895
$324
$1,602
$251
$28,049
$31,122
$296,834
Earned Income
John Salary
Jane Salary
John Bonus
Jane Bonus
Total
Non-Qualified Liquidations
Marquette University Fund
Joint Savings
Joint Checking
Joint Investments
Total
Investment Income
*Accrued Income - Interest
*Accrued Income - Dividends
*Accrued Income - Short Term ...
Retirement Fund
Marquette University Fund
Joint Savings
Joint Checking
Joint Investments
Total
Total Cash Inflows
$97,000
$83,000
$8,000
$10,000
$198,000
$0
$25,250
$9,671
$243,947
$278,868
$503
$1,534
$2,983
$58
$36
$2,203
$379
$24,010
$31,706
$508,574
$99,910
$85,490
$8,000
$10,000
$203,400
$0
$0
$0
$0
$0
$0
$0
$0
$245
$150
$2,689
$354
$25,680
$29,118
$232,518
Cash Outflows
Important: The calculations or other information generated by NaviPlan® version 14.1 regarding the likelihood of various investment outcomes arehypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposesonly because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and otheroperating expenses would materially reduce these calculations.
Prepared by Christopher Moser Page 6 of 19
ADVICENT S
AMPLE
57/552016
58/562017
59/572018
55/532014
56/542015
John/JaneAgeYear
$60,471
$13,200
$340
$74,011
$0
$0
$24,000
$17,000
$41,000
$2,700
$2,400
$0
$0
$0
$5,100
$0
$321
$193
$1,982
$19,445
$257
$22,197
$4,774
$300
$144
$3,600
$3,600
$12,418
$62,285
$13,200
$0
$75,485
$40,100
$40,100
$25,000
$17,000
$42,000
$2,700
$2,400
$0
$0
$0
$5,100
$0
$464
$218
$1,529
$19,244
$211
$21,666
$4,917
$300
$144
$3,600
$3,600
$12,561
$64,154
$13,200
$0
$77,354
$42,105
$42,105
$25,500
$17,000
$42,500
$2,700
$2,400
$0
$0
$0
$5,100
$0
$626
$223
$1,103
$19,590
$170
$21,712
$5,065
$300
$144
$3,600
$3,600
$12,709
Lifestyle Expenses
Aggregate Expenses
Mortgage
Honda Accord Loan
Total
Education Expenses
Marquette University
Total
Qualified Contributions
John's 401k
Jane's 401k
Total
Non-Qualified Savings
Retirement Fund
Marquette University Fund
Joint Savings
Joint Checking
Joint Investments
Total
Non-Qualified Reinvestments
*Income already represented in...
Retirement Fund
Marquette University Fund
Joint Savings
Joint Investments
Joint Checking
Total
Miscellaneous Expenses
Residence
Group Insurance
Group Insurance
LTC Insurance
LTC Insurance
Total
$57,000
$13,200
$5,427
$75,627
$0
$0
$23,000
$17,000
$40,000
$2,025
$1,800
$25,250
$7,500
$188,875
$225,450
$5,020
$34
$20
$534
$0
$42
$5,649
$4,500
$300
$144
$3,600
$3,600
$12,144
$58,710
$13,200
$5,427
$77,337
$0
$0
$23,500
$17,000
$40,500
$2,700
$2,400
$0
$0
$0
$5,100
$0
$141
$85
$1,524
$14,783
$198
$16,731
$4,635
$300
$144
$3,600
$3,600
$12,279
Important: The calculations or other information generated by NaviPlan® version 14.1 regarding the likelihood of various investment outcomes arehypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposesonly because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and otheroperating expenses would materially reduce these calculations.
Prepared by Christopher Moser Page 7 of 19
ADVICENT S
AMPLE
57/552016
58/562017
59/572018
55/532014
56/542015
John/JaneAgeYear
$3,030
$12,956
$11,453
$31,198
$58,636
$213,362
$3,113
$13,311
$12,477
$34,560
$63,461
$260,374
$3,199
$13,677
$12,894
$35,847
$65,617
$267,097
Taxes
Medicare Tax
Social Security Tax - Employment
State Income Tax
Federal Income Tax
Total
Total Cash Outflows
$9,356
$12,276
$21,526
$77,705
$120,862
$479,733
$2,949
$12,611
$11,005
$29,937
$56,502
$208,449
$26,540 $28,183 $29,737Surplus/(Deficit) $28,842 $24,069
Important: The calculations or other information generated by NaviPlan® version 14.1 regarding the likelihood of various investment outcomes arehypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposesonly because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and otheroperating expenses would materially reduce these calculations.
Prepared by Christopher Moser Page 8 of 19
ADVICENT S
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Assets at Retirement
$3,383,460$3,833,393$2,302,933$2,728,489Total Assets
-$441,810-$417,678Lifestyle Assets
$2,788,531$2,788,531$1,665,449$1,665,449Qualified Assets
$594,930$603,052$637,484$645,362Non-Qualified Assets
FundingRetirement
TotalFundingRetirement
Total
Proposed PlanCurrent PlanAsset Summary
Current Plan Proposed Plan
This report displays the total assets available to fund the retirement goal-in the year of retirement-for theselected plan scenarios. The assets shown in this report include those specifically designated for theretirement goal as well as other unallocated assets (i.e. Business and Real Estate Assets). Use this report todetermine the total assets available to fund retirement.
Important: The calculations or other information generated by NaviPlan® version 14.1 regarding the likelihood of various investment outcomes arehypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposesonly because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and otheroperating expenses would materially reduce these calculations.
Prepared by Christopher Moser Page 9 of 19
ADVICENT S
AMPLE
Retirement Goal Coverage
--2039Year of First Shortfall
$5,628,896$981,938Net Worth at Plan End
$3,833,393$2,722,107Net Worth at Retirement
Plan Overview
7.34%7.34%Retirement Rate of Return
8.77%7.34%Pre-Retirement Rate of Return
$0$0Additional Lump Sum Savings
$225$0Additional Monthly Savings
$4,003$4,003Current Monthly Savings
$1,207,500$1,320,000Assets Funding Retirement
$142,899$154,3661st Year Retirement Needs*
3.00%3.00%Inflation Rate
9090JaneLife Expectancy -
6359JaneRetirement Age -
9090JohnLife Expectancy -
6561JohnRetirement Age -
Proposed PlanCurrent PlanAssumptions
STRONGPARTIAL
INSUFFICIENT
Current - 74%
Proposed - 100%
RETIREMENT GOAL COVERAGEThis report shows progress towards theretirement goal. That is, your ability tocover expenses, pay taxes, and maintaindiscretionary spending during yourretirement. The chart to the rightcompares your current situation to therecommended plan.
The table below contains a comparisonof assumptions, needs, and other goalsin both the current situation and in allother situations.
* = Today's Dollars
Important: The calculations or other information generated by NaviPlan® version 14.1 regarding the likelihood of various investment outcomes arehypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposesonly because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and otheroperating expenses would materially reduce these calculations.
Prepared by Christopher Moser Page 10 of 19
ADVICENT S
AMPLE
Retirement Objective Coverage
This report compares retirement income needs to retirement incomes and assets. Under the current plan, 74% of your retirement income needs are met, under the proposed plan 100% of these needs are met.
Current Plan
Proposed Plan
Important: The calculations or other information generated by NaviPlan® version 14.1 regarding the likelihood of various investment outcomes arehypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposesonly because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and otheroperating expenses would materially reduce these calculations.
Prepared by Christopher Moser Page 11 of 19
ADVICENT S
AMPLE
What Are My Retirement Goal Options?
STRONGPARTIAL
INSUFFICIENT
Current - 74%
Proposed - 100%
This report displays a list of possibleoptions for each plan scenario that—ifundertaken—will help to achieve theretirement goal. The figures presented inthis report are based on the assumptionsentered in the plan. Since marketfluctuations play a significant role inplanning for a successful goal, you mayneed to adjust your plan assumptions toaddress these fluctuations. Use thisreport to analyze possible methods tofully achieve the retirement goal.
RETIREMENT GOAL COVERAGE
Goal Coverage is 100%Proposed Plan
Jane retires in 2/2024 at age 63
John retires in 6/2024 at age 65
Save $418,895Increase your monthly savings by $7,143
Alter annual spending by82% ($118,080)
Current Plan
Retire InSave a Lump SumSave MonthlyAlter Spending
Important: The calculations or other information generated by NaviPlan® version 14.1 regarding the likelihood of various investment outcomes arehypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposesonly because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and otheroperating expenses would materially reduce these calculations.
Prepared by Christopher Moser Page 12 of 19
ADVICENT S
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Probability of Goal SuccessCurrent Plan
GOAL SUCCESS: ALL GOALSUnderstanding the potential success or failure of your financial goals is an important step in reaching those goals. You must first determine the current likelihood of reaching your goals in order to know what actions, if any, are needed. The results below are based on 500 trials. For more details on the Monte Carlo projections for each goal, see the report within the relevant goal section.
Probability of Success
Important: The calculations or other information generated by NaviPlan® version 14.1 regarding the likelihood of various investment outcomes arehypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposesonly because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and otheroperating expenses would materially reduce these calculations.
Prepared by Christopher Moser Page 13 of 19
ADVICENT S
AMPLE
Probability of Goal SuccessProposed Plan
GOAL SUCCESS: ALL GOALSUnderstanding the potential success or failure of your financial goals is an important step in reaching those goals. You must first determine the current likelihood of reaching your goals in order to know what actions, if any, are needed. The results below are based on 500 trials. For more details on the Monte Carlo projections for each goal, see the report within the relevant goal section.
Probability of Success
Important: The calculations or other information generated by NaviPlan® version 14.1 regarding the likelihood of various investment outcomes arehypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposesonly because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and otheroperating expenses would materially reduce these calculations.
Prepared by Christopher Moser Page 14 of 19
ADVICENT S
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Education Goal CoverageMarquette University (Jack)
STRONGPARTIAL
INSUFFICIENT
Current - 37%
Proposed - 100%
EDUCATION GOAL COVERAGEThis report reflects how successful youreducation goal is projected to be underthe current plan and how successful youmay be given other scenarios.
This education goal is for Jack, and it begins at age 18. There are many strategies that can help achieve this education goal. Understanding where you are today is just the starting point for achieving this goal.
$40,100$40,100Projected Abilities at Goal Date
4/1/20144/1/2014Lump Sum Savings Date
$0$0Additional Lump Sum Savings
4/1/20144/1/2014AMS Start Date
0.00%0.00%AMS Index Rate
$200$0Additional Monthly Savings (AMS)
$0$0Current Monthly Savings
Never2018Year of First Shortfall
5.69%1.66%Capital Return Rate
$175,000$62,500Capital Available Today
Resources
$172,837$172,837Estimated Total Cost
100%100%Expense % Coverage
44Duration of Goal
20172017Start Year of Education
5.00%5.00%Annual Cost Index Rate
$34,640$34,640Estimated Cost per Year (Today's $)
Proposed PlanCurrent PlanCosts
Important: The calculations or other information generated by NaviPlan® version 14.1 regarding the likelihood of various investment outcomes arehypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposesonly because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and otheroperating expenses would materially reduce these calculations.
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ADVICENT S
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What Are My Education Goal Options?Marquette University (Jack)
Goal Coverage is 100%Proposed Plan
Save $103,694Increase your monthly savings by $1,554
Alter annual spending by 36% ($12,745)
Current Plan
Save a Lump SumSave MonthlyAlter Spending
EDUCATION GOAL COVERAGEThe following options will help you toachieve 100% success for your educationgoal. Reducing expenses, saving moreeach month, and saving a lump sumamount today are all strategies that canhelp you reach your education goals. Youcan use any of these options alone; or,you can use a combination of several toreach 100% goal coverage.
STRONGPARTIAL
INSUFFICIENT
Current - 37%
Proposed - 100%
Important: The calculations or other information generated by NaviPlan® version 14.1 regarding the likelihood of various investment outcomes arehypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposesonly because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and otheroperating expenses would materially reduce these calculations.
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ADVICENT S
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Rate of Return - 7.11% Standard Deviation - 12.40%
Current Asset Mix
This report displays the current asset mix-the asset mix in use as of the plan analysis date. This report showsdetailed asset information including standard deviation and rate of return for each asset class. Use this reportto demonstrate the current asset mix.
%Market ValueAsset Class
19.44%$270,200Large Cap Growth Equity
18.07%$251,200Large Cap Value Equity
11.64%$161,800Mid Cap Equity
1.37%$19,000Small Cap Equity
9.59%$133,300International Equity
3.70%$51,400Emerging Markets Equity
1.49%$20,700Long Term Bonds
1.79%$24,900Intermediate Term Bonds
3.96%$55,000Short Term Bonds
0.97%$13,500High Yield Bonds
5.83%$81,000International Bonds
22.16%$308,000Cash
$1,390,000Total
© 2013 Ibbotson Associates, Inc. All Rights Reserved. Ibbotson is a registered investment advisor and wholly owned subsidiary of Morningstar, Inc. Ibbotson developsproprietary asset allocation tools that are used for educational purposes only. Ibbotson has granted to Advicent Solutions, LP a license to use these asset allocationtools. Morningstar and Ibbotson are not affiliated with Advicent Solutions.
Important: The calculations or other information generated by NaviPlan® version 14.1 regarding the likelihood of various investment outcomes arehypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposesonly because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and otheroperating expenses would materially reduce these calculations.
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Asset Allocation Portfolio Comparison - SuggestedProposed Plan
This report compares your current asset mix to your suggested asset mix for your entire portfolio.
Standard Deviation - 11.93%
Rate of Return - 7.34%
Standard Deviation - 12.40%
Rate of Return - 7.11%
Current Asset Mix Suggested Asset MixInvestor Profile: Current - Rebalanced Investor Profile: Moderate
Change%Market Value%Market ValueAsset Class
SuggestedCurrent
-8.44%11.00%$152,90019.44%$270,200Large Cap Growth Equity
-4.07%14.00%$194,60018.07%$251,200Large Cap Value Equity
-2.64%9.00%$125,10011.64%$161,800Mid Cap Equity
4.63%6.00%$83,4001.37%$19,000Small Cap Equity
3.00%3.00%$41,7000.00%$0US REITs
4.41%14.00%$194,6009.59%$133,300International Equity
-0.70%3.00%$41,7003.70%$51,400Emerging Markets Equity
2.51%4.00%$55,6001.49%$20,700Long Term Bonds
11.21%13.00%$180,7001.79%$24,900Intermediate Term Bonds
5.04%9.00%$125,1003.96%$55,000Short Term Bonds
4.03%5.00%$69,5000.97%$13,500High Yield Bonds
0.17%6.00%$83,4005.83%$81,000International Bonds
-19.16%3.00%$41,70022.16%$308,000Cash
$1,390,000$1,390,000Total
© 2013 Ibbotson Associates, Inc. All Rights Reserved. Ibbotson is a registered investment advisor and wholly owned subsidiary of Morningstar, Inc. Ibbotson developsproprietary asset allocation tools that are used for educational purposes only. Ibbotson has granted to Advicent Solutions, LP a license to use these asset allocationtools. Morningstar and Ibbotson are not affiliated with Advicent Solutions.
*Note: Modifications have been made to the suggested asset mix. As a result, the implemented asset mix will be used.
Important: The calculations or other information generated by NaviPlan® version 14.1 regarding the likelihood of various investment outcomes arehypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposesonly because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and otheroperating expenses would materially reduce these calculations.
Prepared by Christopher Moser Page 18 of 19
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For: John and JaneAction Plan
CompletedDue DateActions
Asset Allocation
Retirement:· Defer retirement for John & Jane by 4 years · Reduce travel expenses by 30% in retirement years · Save an additional $225 per month towards
retirement · Reallocate overall portfolio to Moderate Aggressive
during pre-retirement years · Reallocate overall portfolio to Moderate during
retirement years Education:
· Cover 100% of Marquette tuition · Save an additional $200 per month towards tuition · Change goal funding of Joint Investment account
reserving 25% for tuition and the remainder for retirement
Important: The calculations or other information generated by NaviPlan® version 14.1 regarding the likelihood of various investment outcomes arehypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposesonly because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and otheroperating expenses would materially reduce these calculations.
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