Free Integrated Sample Financial Plan

- CONFIDENTIAL REPORT -
Prepared Especially For:
John & Mary Sample
August 2008
Prepared By:
Smart T. Advisor
TOOLS FOR MONEY DOT COM

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Suite 315
Tempe, AZ 85281-3670
(480) 555-8400
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 Copyright 1997 - 2008 Toolsformoney.com, All Rights Reserved
TABLE OF CONTENTS
Section 1: Financial Plan Overview · Introduction and disclaimer

· Level of client services
· Interview notes: Your concerns and objectives
· Cost Benefit Ratio - Current vs. Proposed plan differences
Section 2: Budget & Cash Flow · Family budgeting snapshot and personal cash flow projections
Section 3: Net Worth · Current snapshot, and long-term projection, of net worth
Section 4: Retirement Projections · Explanation of the retirement planning reports

· Retirement planning reports
· Your Social Security benefit statement
Section 5: Investment Management · Explanation of the asset allocation reports

· Investment Policy Statement
· Investment performance historical track record
· Asset allocation report
· Bond portfolio report
· Rental real estate analysis
· Morningstar Fund Detail reports
Section 6: Insurance Planning · Family life insurance needs analysis (capital needs analysis)
· Whole life vs. buying term and investing the difference
Section 7: College Planning · Children's college funding report
Section 8: Estate Planning · Estate planning document organizer
Section 9: Plans of Action · Sources and application of funds

· To do lists
Section 10: Miscellaneous · Reports for all of the little financial planning jobs
· Understand your (Pershing) monthly account statements
· Our investment newsletter
· Referrals
· Fact Finders, agreements, and other paperwork

FINANCIAL PLAN INTRODUCTION
This confidential report was created for your personal use and future reference only. Each
section is designed to give you a better understanding of your financial circumstances, and
what's projected for the future. The report reflects your financial standing today and where you
are likely to be in the event of your disability, death or retirement. It will provide valuable
information for years to come.
The goal of this financial plan is to make the greatest possible use of your present and expected
financial resources. The plan assumes your expressed willingness, and ability, to take on an
appropriate level of risk; and also to make the cash and investment commitments required.
Your report coordinates all of your assets, liabilities, sources of incomes, and puts them into
perspective when compared to your stated goals and objectives. Needs or deficiencies are
identified, and recommendations are included to illustrate how you may improve your
arrangements.
Supplementary information is also included to help clarify some issues.
Periodic review will be necessary to keep your report up to date and pertinent to your life. If,
after a thorough review of the plan, you feel you'd like to make different assumptions, we'll be
happy to make adjustments based on whatever assumptions you may wish to adopt.
The value of this plan lies in its implementation. Once your plan accurately reflects what you're
personally trying to accomplish, and the more rapidly these changes are made, the more likely
the desired results will be achieved.
No financial plan is of any value unless it is implemented promptly. Our services are available
to assist you in these endeavors.
The Cost benefit ratio: The total fee for constructing your financial plan was $1,500. According
to our projections, the difference in your net worth in ten years between the current version
(assuming you continued going down the road you're currently on), and the proposed version
(following all of our recommendations) is roughly $380,000.
This number divided by the total fee is 253. So for every dollar you spent on our fee, the value
of our plan returns $253 to you. The cost benefit ratio in 30 years is 560.

Disclaimer
This financial plan was designed from the personal information and documents furnished to us
by you, and it is based on your expression of the personal objectives and your attitudes. It is
essential that the tax and legal planning steps be considered only with the advice of your
attorney, CPA, and your other financial advisors, which we will be happy to coordinate with.
This plan is not to be construed as offering legal or accounting advice. You are encouraged to
discuss this plan and its findings with your attorney and accountant.
These reports show ballpark estimates of your future financial situation, and are intended only
as a basis for discussion with your professional advisors. The estimates shown in this report are
based on many assumptions that may or may not occur. Both principal value and investment
returns will fluctuate over time. No warranty as to correctness is given and no liability is
accepted for any error, or omission, or any loss, which may arise from relying on this data.
Every effort has been made to assure the highest reasonable degree of accuracy in your
financial plan. However, due to the dynamic nature of our economic and tax environments, no
guarantees or assurances can be given regarding the profitability or tax benefits of any
investment. The only assurance is that over time, every investment program is likely to produce
some losses on the road to achieving long-term gains.
This plan is only as accurate as the information on which it was based. If the data originally
supplied to us is incorrect, the plan will reflect these inaccuracies, and these errors will project
into the future at a magnified rate. Certain assumptions made by us, or you, may also limit the
accuracy of the data. Please review your data carefully. Also, the further into the future this
plan projects, the more inaccurate it becomes. As a result, your plan should be updated at least
annually to ensure its continued accuracy.
Where rates of return, taxes, and inflation estimates are used to simulate investment results,
they should not be construed as guarantees or warranties of profitability. Computerized
performance projections of assets, portfolios, and markets are to be considered as statistical
models based on past performance only. Past performance is no guarantee of any future results.
No warranty as to correctness is given and no liability is accepted for any error, or omission, or
any loss, which may arise from relying on this data. No investment, strategy, or
recommendations in this report is insured by the FDIC, any governmental agency, or other
corporation.
Where tax benefits are illustrated they are based on the best information currently available.
Various proposals are made from time to time to change the tax laws, and it seems probable
that many of our current tax laws will undergo changes during the years illustrated in this
financial plan. Some of these proposals, if enacted, might have a serious adverse effect on tax
consequences of some of the investment strategies proposed. On the other hand, some
proposals may significantly enhance your position if enacted.
Every effort has been made to assure the highest reasonable degree of accuracy in your
financial plan. However, due to the dynamic nature of our economic and tax environment, no
guarantees or assurances can be given regarding the profitability or tax benefits of any
investment. The only assurance that can be given is that, over time, every investment program
is likely to produce some losses on the road to achieving long-term gains.
This plan is only as accurate as the information on which it is based. If the data originally
supplied to us is incorrect, the plan will reflect these inaccuracies. Certain assumptions made
by us, or you, may also limit accuracy of the data. Please review your data carefully. Also, the
further into the future this plan projects, the more inaccurate it becomes. As a result, your plan
should be updated at least annually to assure its continued accuracy.
Where rate of return, tax and inflation estimates are used to simulate investment results, they
should not be construed as guarantees or warranties of profitability. Computerized performance
projections of assets, portfolios, and markets are to be considered as statistical models based on
past performance only. Past performance is no guarantee of any future results. No warranty as
to correctness is given and no liability is accepted for any error, or omission, or any loss, which
may arise from relying on this data. No investment, strategy, or recommendations in this report
is insured by the FDIC, any government agency, or any other corporation.

LEVEL OF CLIENT SERVICES
Based on the amount of your assets we manage, you are considered a Level 4 client.
You are entitled to various services depending on your account size. We have four general tiers, or levels, of
services:
 Level 1: Accounts under $100,000
 Level 2: Accounts from $100,000, to $250,000
 Level 3: Accounts from $251,000 to $500,000
 Level 4: Accounts over $500,000
We will automatically upgrade your Level when your account reaches the higher threshold. We will only
downgrade your Level if your account size falls below a threshold due to withdrawals. We will not
downgrade your account due to market fluctuations.
Any product (e.g., written financial plans) or service that you are not automatically entitled to may be
purchased for an additional fee. Please refer to the Client Agreement for prices and fees.
_________________________________________________________________________
LEVEL I SERVICES
Accounts under $100,000
1.0 Identify your personal financial objectives and priorities with personal meetings, the use of
comprehensive fact finding questionnaires, and follow-up phone calls. Identify and clarify your
personal objectives and priorities. Analyze and quantify your personal risk limits, return
expectations, constraints, and preferences.. Analysis of overall financial situation, investments,
and risk management (insurance policies).
1.1 Develop and prioritize strategies and tactics for achieving your objectives.
1.2 Manage investment portfolio(s) according to the model determined by your risk-tolerance
category (found by our investment fact-finder).
1.3 Generate one retirement report annually upon the completion of the retirement fact finder.
1.4 Morningstar reports on currently held and recommended stocks and mutual funds.

1.5 Our staff will be available during normal business hours to respond to your questions and
requests. While normal business hours are weekdays from 8:00 AM to 4:30 PM Mountain time
(when daylight savings time is in affect), we will monitor voice- and e-mail during off hours.
Please note that investment trading instructions will not be executed via e-mail.
1.6 In-person meetings up to four times per year to discuss concerns and changes.
1.7 Discuss economic, investment, financial, and market conditions.
1.8 No charge for phone calls. Toll-free number for long distance calls.
1.9 Newsletters and other mailings of interest.
1.10 Routine client service work.
1.11 On-line access to your account information.
1.12 Monthly investment portfolio statements showing all transactions, and other account activity
(deposits/withdrawals/dividends/interest/capital gains/sales/purchases/distributions/settlements).
Portfolio holdings by asset (share and dollar amounts) and whether dividends are reinvested into
the fund or retained as cash.
1.13 Evaluate and recommend changes in your cash flow including spending, gifting, investments,
and income tax withholding.
1.14 Review and recommend changes as needed.
1.15 Annual rebalancing of investment asset classes.
_________________________________________________________________________
LEVEL TWO SERVICES

Accounts Between $100,000 and $250,000
2.0 All Level One Services listed above, unless noted below.
2.1 Manage investment portfolio(s) on a personalized basis according to our five-asset class tool.
Determine custom asset allocation guidelines based on your personal circumstances.
2.2 Semi-annual rebalancing of investment asset classes.
2.3 In-person meetings up to six times per year to discuss concerns and changes.
_________________________________________________________________________
LEVEL THREE SERVICES

ACCOUNTS FROM $250,000 TO $500,000
3.0 All Level Two Services listed above, unless noted below.
3.1 Manage investment portfolio(s) on a personalized basis according to our eight-asset class tool.
Determine custom asset allocation guidelines based on your personal circumstances. Other assets
you may hold elsewhere may be included in the asset allocation report (e.g., 401(k)).
3.2 Semi-annual rebalancing of investment asset classes.
3.3 401(k) planning and allocation for active employees.

3.4 In-person meetings up to eight times per year to discuss your concerns and changes.
3.5 Joint meetings with other advisors such as attorneys and CPAs.
3.6 Analysis of stock options and their tax implications.
3.7 Quarterly performance review of investment accounts.
- Time weighted rate of return: Quarter to date
Year to date
Last 12 months
Inception of account to date
- The four above rates of return compared to benchmark economic indexes.
3.8 Calculate required minimum distribution for IRAs under our management.
3.9 Provide a discussions of estate planning basics and coordination with your attorneys.
_________________________________________________________________________
LEVEL FOUR SERVICES

ACCOUNTS OVER $500,000
4.0 All Level Three Services listed above, unless noted below.
4.1 Create and maintain a personalized Investment Policy Statement (IPS).
4.2 Perform custom portfolio optimization at the actual asset level (not the asset class level). This
optimizes the asset allocation to help reduce risk and increase return.
4.3 Perform investment research and analysis of investments you’re interested in, including a cursory
look at stocks.
4.4 Unlimited (within reason) in-person meetings to discuss any concerns or possible changes.
We recommend personal meetings no less than twice per year.
4.5 If you don’t having a working relationship with an attorney, CPA, or mortgage broker, we can
help you select one
4.6 On an annual basis, analyze and provide IRR (internal rates of return) for any rental real estate
properties you may hold.
4.7 Review of insurance, wills, estate plans, etc.
4.8 The following financial planning reports upon completion of the pertinent fact finder:
- Cash Flow (income and expense) summary
- Net Worth Statement
- College Funding Report.
- Retirement Planning Report.
- Disability Analysis.
- Survivors Needs Analysis (life insurance report)
- Estate Planning Summary (detailed reviews are available for additional fees)
- Other Custom Reports.

Interview Notes, Assumptions, Concerns, and Goals
- JOHN & MARY SAMPLE -

FINANCIAL PLANNING INTERVIEW NOTES
In 2007, John is 45 and Mary is 40 years of age.
Your answers to our questionnaire scored 100 out of a possible 192 points (a score of 192 would
indicate maximum tolerance for investment risk). This determines that you have a moderate risk
tolerance (the five risk categories are Conservative, Moderately Conservative, Moderate, Moderately
Aggressive, and Aggressive). This gauges your ability to assume risk. Your willingness to assume risk
is about the same as your ability to assume risk.
There are two time frames for the investment portfolio. Both are considered to be long-term. Because
your health is excellent for your ages, your combined life expectancy is over 25 years. The second
time frame occurs when the remains of the portfolio will pass to your heirs.
The purpose of this investment account is to provide retirement income for John and Mary Sample.
Other than providing for your children’s education, you indicated that you foresee several future needs
for significant withdrawals from the portfolio, so your liquidity needs are high. These long-term
financial goals begin after retirement, and include purchasing a high-end RV, boat, expensive trips and
vacations annually, a cabin in Montana, and new vehicles every seven years.
Your current income needs from the portfolio are minimal, calling for a total-return approach that
focuses more on long-term capital gains than on the generation of current income.
There are no particular preferences, constraints, legal, regulatory, or unique needs noted for either
your personal or qualified portfolios.
Your liquid assets are currently sufficient to provide the cash reserves needed for emergencies.
FINANCIAL PLANNING GOALS

John wishes to retire in ten years, and Mary wishes to continue working part time while John is retires.
Your main financial goal is to maintain a balanced portfolio to provide adequate retirement income.
Your stated annual retirement income goal is $50,000 of net, after-tax, spendable dollars. This income
stream will be constructed to attempt to increase at an average annual inflation rate of around 3.50%
over your life expectancy. This income stream will also be constructed to attempt to continue through
John’s age of 100.
Maintain adequate disability and survivor income to maintain current living standards without
depleting capital if one or both parents were to pass away.

Restructure income and assets to achieve current tax liabilities.
Completely fund college educations for all four children.
Increase the average rate of return on investments.
FINANCIAL PLANNING CONCERNS

Being insured for major property or investment losses is a concern.
Assure proper estate distribution according to your wishes and maintain sufficient liquidity to cover
estate settlement expenses.
Managing your cash flow to eliminate unneeded expenditures is a concern.
Have the mortgage paid off in 2021, credit cards in 2014, vehicles in 2015, and student loans in 2008.
Obstacles you feel will impede your goals are poor health, taxes, possible changes in employment,
disability, and inflation.
John is concerned about the performance and stability of his life insurance company.
Jane expressed concern about how their rental real estate was performing and didn’t understand if they
were making money on it or not.
FINANCIAL PLAN ASSUMPTIONS

Your current marginal tax bracket: 28%
Your average tax bracket: 25%
Average annual inflation rate: 3.50%
Bonds: 5%
Bond Mutual Funds: 6%
Equities: 8% - 12%
Annuities: 5%
Inflation: 3%
Average Tax Bracket: 20%
Social Security Inclusion: 50%
Social Security COLA Rate: 2%
John’s Age to Collect Social Security: 62
Mary’s Age to Collect Social Security:62
John’s Life Expectancy: 100
Mary’s Life Expectancy: 100
Personal Residence Growth Rate: 2.5%
Personal Property Growth Rate: 2.5%
Rental Real Estate Growth Rate: 7%
Inflation Rate of College Expenses: 5%

Cost Benefit Ratio
The estimated amount of money we returned to you in net worth over three time frames, for every dollar of fee paid
Change in Net Cost Benefit

Financial Planning Fee: $2,500 Worth Ratio
Current Projected Net Worth at the End of Year 5: $1,084,572 $79,826 31.9
Proposed Projected Net Worth at the End of Year 5: $1,164,398 7.4% Increase
 1997 - 2008 Toolsformoney.com, All Rights Reserved

Current vs. Proposed Net Worth
Year: 5 10 15 20 25 30 35 40 45 50
2013 2018 2023 2027 2033 2038 2043 2048 2053 2058
Ages: 45/40 50/45 55/50 60/55 65/60 70/65 75/70 80/75 85/80 90/85
Current Plan $1,084,572 $1,251,009 $1,326,093 $1,362,212 $1,493,954 $1,641,885 $1,753,617 $1,802,878 $1,747,967 $1,906,149
Proposed Plan $1,164,398 $1,493,603 $1,521,670 $1,615,593 $1,892,177 $2,187,320 $2,485,156 $2,764,785 $2,986,901 $3,087,185
Difference: 7.4% 19.4% 14.7% 18.6% 26.7% 33.2% 41.7% 53.4% 70.9% 62.0%
$3,500,000
Current vs. Proposed Net Worth
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
2052
2054
2056
2058
2060
Proposed Plan Current Plan

Current vs. Proposed Incomes
Year: 5 10 15 20 25 30 35 40 45 50
2013 2018 2023 2027 2033 2038 2043 2048 2053 2058
Ages: 45/40 50/45 55/50 60/55 65/60 70/65 75/70 80/75 85/80 90/85
Current Plan $190,916 $170,653 $101,674 $79,842 $95,092 $109,817 $126,823 $146,532 $169,341 $106,056
Proposed Plan $190,916 $170,653 $105,974 $83,353 $98,447 $113,511 $131,024 $151,357 $174,850 $202,047
Difference: 0.0% 0.0% 4.2% 4.4% 3.5% 3.4% 3.3% 3.3% 3.3% 90.5%
$250,000
Current vs. Proposed Incomes
$200,000
$150,000
$100,000
$50,000
$0
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
2052
2054
2056
2058
2060
Current Plan Proposed Plan

Current vs. Proposed Expenses
Year: 5 10 15 20 25 30 35 40 45 50
2013 2018 2023 2027 2033 2038 2043 2048 2053 2058
Ages: 45/40 50/45 55/50 60/55 65/60 70/65 75/70 80/75 85/80 90/85
Current Plan $199,059 $178,831 $102,045 $80,046 $95,312 $109,992 $127,055 $146,807 $169,672 $196,144
Proposed Plan $199,059 $169,245 $106,322 $83,511 $98,670 $113,750 $131,282 $151,587 $175,103 $202,342
Difference: 0.0% -5.4% 4.2% 4.3% 3.5% 3.4% 3.3% 3.3% 3.2% 3.2%
Current vs. Proposed Expenses

$250,000
$200,000
$150,000
$100,000
$50,000
$0
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
2052
2054
2056
2058
2060
Current Plan Proposed Plan

FAMILY BUDGET AND CASH FLOW REPORT EXPLANATION
REAL WORLD PERSONAL FINANCIAL SOFTWARE
2130 9th St. W #166 Whitefish, MT 59912-4416 (406) 257-1182
MichealaFulford ,_ CFA toolssupport@earthlink.net http://www.toolsformoney.com/
OVERVIEW OF THE BUDGETING AND CASH FLOW REPORTS

This text is to help you understand the overall concepts, and the technical details, of the
family budgeting and cash flow reports that follow.
The data used to generate the reports came from a combination of fact finders, your
financial statements, assumptions, and estimates. These values change daily, so there will
always be a level of inaccuracy that can’t be avoided.
The budgeting reports have three major sections: Fixed expenses, variable expenses, and
debt payments. Fixed expenses are those that are relatively constant every month – like
insurance premiums and cable TV bills. Variable expenses are those that vary greatly from
month to month – like food, clothing, and entertainment. Debt payments show money
going to repay loans.
These three sections display their monthly totals at the bottom.
The chart, Snapshot of Major Expense Categories, helps in understanding what major
categories your money is going into.
Replacement costs are a commonly overlooked part of family budgeting. It’s also the
biggest reason why people’s budgets never seem to add up. In the reports, major items that
need to be replaced or serviced periodically are accounted for on a monthly basis. Most
families neglect to account for these, and then when mundane and common things happen,
like $10,000 needs to be spent on a new roof, this could be disastrous for the family budget
for years to come. So it’s critical to account for these items on an ongoing basis.
Drilling Down Into the Details
The details are on the following pages. They are shown both for normal times, and if the
breadwinner were to become disabled. Disability is a very real danger, so it needs to be
accounted for in a serious manner.

The section, Budget Totals with Debt shows how much money is needed to pay all
expenses on an hourly (assuming a 40-hour work week), daily, weekly, monthly, and
annual basis. The top section shows how much net income (take home paycheck) is
needed to pay everything. The bottom section displays how much is needed to pay for
everything, including taxes. This is called “gross.”
The section below, Budget Totals without Debt displays the same information as above,
but assuming all debt was paid off. This is important psychologically to see how things
would be different if there were no debt payment to make anymore.
The section below, Budget Category Percentages, displays the percentages of the three
major categories (fixed, variable, and debt). The middle and bottom sections display
percentages spent on taxes in a few different formats.
In the next section, incomes are displayed both gross and net of taxes on an hourly, daily,
weekly, monthly, and annual basis.
The next section, Surplus or Deficit, displays the current amount of surplus or deficit. If
there is a surplus, that means that more money is coming into the family budget than is
being spent. This should be put to use funding financial planning objectives. A deficit
means that more money is being spent than is being contributed to the family’s budget.
The next section displays how much in disability insurance is needed to generate enough
money to fund the family’s budget assuming both breadwinners were disabled.
Hopefully, the graphs and charts are self-explanatory. They just display the same
information as discussed above, but for future years (e.g., when retired). There are several
that display results in different ways to provide the most value to everyone.
Additional Information
The report details very important information as it displays your current and future
standard of living. It also reveals surpluses that can be put to productive uses, like funding
vital financial planning goals and objectives. It also reveals very dangerous deficits. If so,
expense items should be reduced ASAP to bring the budget into balance.
The income sections include all sources of income that you told us about that help fund
your family budget. Amounts from interest or mutual fund dividends that are reinvested
are not shown here.

Current Budget and Cash Flow Results
Budget Totals With Debt Expense Percentage Breakdown (with Surplus/Deficit)

Hourly Totals (net average based on 40 hour work week): $68.98 Fixed 22.8%
Daily Budget Totals (net average daily income needed): $396.80 Variable 44.1%or
Surplus Fixed 23.0%
Weekly Budget Totals (net weekly cash needed): 2,759
Taxes Debt 12.6%(-) Taxes 19.8%
19.6% Deficit Fixed
Monthly Budget Totals (net monthly cash needed): $12,003 Taxes 19.6%
0.9% Variable 44.5%
22.8%
Annual Budget Totals (net annual cash income needed): $144,037 Surplus or Deficit (-) 0.9% Debt 12.7%
Hourly Totals (gross average based on 40 hour work week): $85.99 $15,102 100.0%
Daily Budget Totals (gross average daily income needed): $494.65 100.00%
Weekly Budget Totals (gross weekly cash needed): 3,440
Monthly Budget Totals (gross monthly cash needed): $14,963
Annual Budget Totals (gross annual cash income needed): $179,557
Budget Totals Without Debt Debt

Hourly Totals (net average based on 40 hour work week): $58.06 12.6%
Variable
Daily Budget Totals (net average daily income needed): $333.99 44.1%
Weekly Budget Totals (net weekly cash needed): 2,323
Monthly Budget Totals (net monthly cash needed): 10,103
Annual Budget Totals (net annual cash income needed): $121,237
Hourly Totals (gross average based on 40 hour work week): $75.08 Expense Percentage Breakdown
Daily Budget Totals (gross average daily income needed): $431.84
Weekly Budget Totals (gross weekly cash needed): $3,003
Debt
Monthly Budget Totals (gross monthly cash needed): $13,063 Fixed
12.7%
Annual Budget Totals (gross annual cash income needed): $156,757 23.0%
Budget Category Percentages

Percent of Total Gross Budget Spent on Fixed Expenses: 42.8%
Percent Total Gross Budget Spent on Variable Expenses: 44.5%
Percent of Total Gross Budget Spent On Debt Repayment: 12.7%
Percent of Total Gross Budget Spent On Federal Taxes: 13.4%
Percent of Total Gross Budget Spent On State Taxes: 4.7%
Percent of Total Gross Budget Spent On FICA Taxes: 1.7%
Variable Taxes
Percent of Total Gross Budget Spent On Local Taxes: 0.0% 19.8%
44.5%
Percent of Total Gross Budget Spent On All Taxes: 19.8%
Average/Effective Tax Rate (% gross income spent on taxes): 18.2%
Percent of Total Net Income Spent On Taxes: 22.3%
Copyright 1997 - 2008 Toolsformoney.com, All Rights Reserved

John's Incomes Expenses
$250,000
Hourly Net Incomes (based on 40 hour work week): $56.40
Daily Net Income Totals: $324.43
Weekly Net Income Totals: $2,256 $200,000
Monthly Net Incomes: $9,814
Annual Net Incomes: $117,770
$150,000
Hourly Gross Incomes (based on 40 hour work week): $68.97
Daily Gross Income Totals: $396.69
Weekly Gross Income Totals: $2,759 $100,000
Monthly Gross Incomes: $12,000
Annual Gross Incomes: $144,000 $50,000
Mary's Incomes $0 Taxes
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
Total Annual Variable Expenses: Taxes
Weekly Net Income Totals: $799
Total Annual Fixed Expenses Less Taxes: Total Annual Debt Service:
Hourly Gross Incomes (based on 40 hour work week): $24.43 Incomes
$250,000
Weekly Gross Income Totals: $977
Monthly Gross Incomes: $4,250 $200,000
Annual Gross Incomes: $51,000
$150,000
Sample's Combined Incomes
Daily Net Income Totals: $439.34 $100,000
Weekly Net Income Totals: $3,055
$50,000
Daily Gross Income Totals: $537.19 $0
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
Weekly Gross Income Totals: $3,736
Annual Gross Incomes: $195,000 John's Incomes Mary's Incomes Retirement Asset Incomes

Surplus or Deficit With Debt $250,000
Gross Incomes vs. All Expenses
Hourly Totals (net average based on 40 hour work week): $7.40
Daily Net Surplus or Deficit: $42.54
$200,000
Weekly Net Surplus or Deficit: $296
Monthly Net Surplus or Deficit: $1,287
Annual Net Surplus or Deficit: $15,443 $150,000
Percent Total Net Income In Surplus Or Deficit: 8.3%
Hourly Totals (gross average based on 40 hour work week): $9.04 $100,000
Daily Gross Surplus or Deficit: $52.02
Weekly Gross Surplus or Deficit: $362 $50,000
Monthly Gross Surplus or Deficit: $1,573
Annual Gross Surplus or Deficit: $18,882
$0
Percent Total Gross Income In Surplus Or Deficit: 9.7%
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
Surplus or Deficit Without Debt Grand Total Annual Expenses: Total Incomes

Daily Net Surplus or Deficit: $105.35 Net Incomes vs. Expenses Less Taxes
Weekly Net Surplus or Deficit: $733 $250,000
Hourly Totals (gross average based on 40 hour work week): $22.39 $150,000
Weekly Gross Surplus or Deficit: $896
$100,000
Percent Total Gross Income In Surplus Or Deficit: 24.0% $50,000
$0
Percentage of Total Gross Income
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
John's Percentage of Total Gross Income: 73.8%
Mary's Percentage of Total Gross Income: 26.2% Grand Total Annual Expenses Less Taxes: Total Incomes

Annual Cash Flow Surplus or (-) Deficit: Taxes
$60,000
$8,000
$6,000 $50,000
$4,000
$40,000
$2,000
Federal
$0 $30,000 State
Year #1
Year #4
Year #7
Year #10
Year #13
Year #16
Year #19
Year #22
Year #25
Year #28
Year #31
Year #34
Year #37
Year #40
Year #43
Year #46
Year #49
FICA
-$2,000
$20,000 Local/Misc.
-$4,000
-$6,000 $10,000
-$8,000 $0
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
-$10,000
-$12,000 Asset Income Taxes Federal State FICA Local/Misc.
Compounded Cumulative Total Annual Surplus or Total Annual Debt Payments

$25,000
Deficit:
$20,000
$20,000
$10,000
$0 $15,000
Year #1
Year #4
Year #7
Year #10
Year #13
Year #16
Year #19
Year #22
Year #25
Year #28
Year #31
Year #34
Year #37
Year #40
Year #43
Year #46
Year #49
-$10,000
$10,000
-$20,000
-$30,000 $5,000
-$40,000 $0
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
-$50,000

Total Annual Variable Expenses Taxes as a Percent of Income Taxes
$120,000
$100,000 Taxes: Local /

Taxes: FICA Miscellaneous
$80,000 (Social Security 3.8%
& Medicare)
$60,000 28.3%
$40,000
$20,000
$0
Year #1
Year #4
Year #7
Year #10
Year #13
Year #16
Year #19
Year #22
Year #25
Year #28
Year #31
Year #34
Year #37
Year #40
Year #43
Year #46
Year #49
Taxes: State
11.3% Taxes: Federal
56.6%
Total Annual Fixed Expenses (less taxes)

$80,000
$70,000
$60,000
$50,000 Income Taxes as a Percentage of Gross Incomes
$40,000 Federal: 12.3%

FICA (Social Security & Medicare) 4.4%
$30,000 State 1.5%
Local / Miscellaneous 0.0%
$20,000
Total: 18.2%
$10,000
$0
Year #1
Year #4
Year #7
Year #10
Year #13
Year #16
Year #19
Year #22
Year #25
Year #28
Year #31
Year #34
Year #37
Year #40
Year #43
Year #46
Year #49

End of Current Year Major Expense Categories
Professional /
Debt Payments Education
11.7% 0.2% Replacements
2.1%
Non-Home or
Vehicle
Insurance Savings /
2.3% Investments
9.3%
Money to Others Vehicles

(Family/Church/ 7.2%
Charity/Gifts)
0.3%
Miscellaneous
1.8% Children
21.1%
Income & Sales Entertainment /

Taxes Hobbies / Toys
25.5% 0.9%
Fees
0.3%
Home Health Care (non-
8.2% insurance) /
Personal
Maintenance
Food
2.3%
6.7%

Annual 45/40 46/41 47/42 48/43 49/44
Expenses 2008 2009 2010 2011 2012
Children $41,023 $42,952 $43,865 $44,800 $45,759
Entertainment / Hobbies / Toys $1,670 $1,720 $1,771 $1,824 $1,879
Fees $582 $599 $617 $636 $655
Food $13,044 $13,435 $13,838 $14,254 $14,681
Health Care / Personal Maintenance $4,487 $4,622 $4,760 $4,903 $5,050
Home $15,965 $16,444 $16,938 $17,446 $17,969
Income & Sales Taxes $49,551 $51,037 $52,841 $47,689 $49,120
Everything Else / Misc. $3,565 $3,672 $3,782 $3,896 $4,013
Money to Others $522 $537 $554 $570 $587
Non-Home nor Vehicle Insurance $4,500 $4,635 $4,774 $4,917 $5,065
Debt Payments $22,800 $22,800 $22,800 $19,800 $13,800
Professional / Education $300 $309 $318 $328 $338
Replacements $4,044 $4,165 $4,290 $4,419 $4,551
Savings / Investments $18,000 $18,725 $18,913 $19,102 $19,293
Vehicles $14,035 $14,456 $14,890 $15,337 $15,797
Total Expenses $194,088 $200,111 $204,953 $199,921 $198,557

Annual 45/40 46/41 47/42 48/43 49/44 50/45
Non-Asset Incomes 2008 2009 2010 2011 2012 2013
John's Bonus $6,000 $6,180 $6,365 $6,556 $6,753 $6,956
John's Commissions $60,000 $61,800 $63,654 $41,200 $42,436 $43,709
John's Other Earned Income $0 $0 $0 $0 $0 $0
John's Other Investment Income $6,000 $6,180 $6,365 $6,556 $6,753 $6,956
John's Pensions $0 $0 $0 $0 $0 $0
John's Salary & Wages $72,000 $74,160 $76,385 $78,676 $81,037 $83,468
John's Social Security $0 $0 $0 $0 $0 $0
Mary's Commissions $0 $0 $1,030 $0 $0 $0
Mary's Other Earned Income $0 $0 $0 $0 $0 $0
Mary's Pensions $0 $0 $0 $0 $0 $0
Mary's Real Estate Income $3,000 $3,090 $3,183 $3,278 $3,377 $3,478
Mary's Salary & Wages $48,000 $49,440 $50,923 $52,451 $54,024 $46,350
Mary's Social Security $0 $0 $0 $0 $0 $0
Retirement Asset Incomes $0 $0 $0 $0 $0 $0
Total Incomes $195,000 $200,850 $207,906 $188,718 $194,380 $190,916

Proposed Budget and Cash Flow Results
Budget Totals With Debt Expense Percentage Breakdown (with Surplus/Deficit)

Hourly Totals (net average based on 40 hour work week): $68.98 Fixed 22.8%
Daily Budget Totals (net average daily income needed): $396.80 Variable Surplus
44.1%or Fixed 23.0%
Taxes
Weekly Budget Totals (net weekly cash needed): 2,759 Deficit
12.6%(-)
19.6%Debt Taxes Fixed 19.8%
Monthly Budget Totals (net monthly cash needed): $12,003 Taxes 0.9%
19.6% Variable 44.5%
22.8%
Annual Budget Totals (net annual cash income needed): $144,037 Surplus or Deficit (-) 0.9% Debt 12.7%
Hourly Totals (gross average based on 40 hour work week): $85.99 $15,102 100.0%
Daily Budget Totals (gross average daily income needed): $494.65 100.00%
Weekly Budget Totals (gross weekly cash needed): 3,440
Monthly Budget Totals (gross monthly cash needed): $14,963
Annual Budget Totals (gross annual cash income needed): $179,557
Debt
Budget Totals Without Debt 12.6%
Daily Budget Totals (net average daily income needed): $333.99 Variable
Weekly Budget Totals (net weekly cash needed): 2,323 44.1%
Monthly Budget Totals (net monthly cash needed): 10,103
Annual Budget Totals (net annual cash income needed): $121,237
Hourly Totals (gross average based on 40 hour work week): $75.08 Expense Percentage Breakdown
Daily Budget Totals (gross average daily income needed): $431.84
Weekly Budget Totals (gross weekly cash needed): $3,003
Monthly Budget Totals (gross monthly cash needed): $13,063 Debt
Annual Budget Totals (gross annual cash income needed): $156,757 12.7% Fixed
23.0%
Budget Category Percentages
Percent of Total Gross Budget Spent on Fixed Expenses: 42.8%
Percent Total Gross Budget Spent on Variable Expenses: 44.5%
Percent of Total Gross Budget Spent On Debt Repayment: 12.7%
Percent of Total Gross Budget Spent On Federal Taxes: 13.4%
Percent of Total Gross Budget Spent On State Taxes: 4.7%
Percent of Total Gross Budget Spent On FICA Taxes: 1.7%
Percent of Total Gross Budget Spent On Local Taxes: 0.0% Variable Taxes
Percent of Total Gross Budget Spent On All Taxes: 19.8% 44.5% 19.8%
Average/Effective Tax Rate (% gross income spent on taxes): 18.2%
Percent of Total Net Income Spent On Taxes: 22.3%

John's Incomes $250,000
Expenses
Weekly Net Income Totals: $2,256 $200,000
$150,000
Weekly Gross Income Totals: $2,759 $100,000
Annual Gross Incomes: $144,000 $50,000
Mary's Incomes $0
Taxes
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
Total Annual Variable Expenses: Taxes
Weekly Net Income Totals: $799
Total Annual Fixed Expenses Less Taxes: Total Annual Debt Service:
Hourly Gross Incomes (based on 40 hour work week): $24.43 Incomes
$250,000
Weekly Gross Income Totals: $977
Monthly Gross Incomes: $4,250 $200,000
$150,000
Sample's Combined Incomes
Daily Net Income Totals: $439.34 $100,000
Weekly Net Income Totals: $3,055
$50,000
Daily Gross Income Totals: $537.19 $0
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
Weekly Gross Income Totals: $3,736
John's Incomes Mary's Incomes Retirement Asset Incomes

Surplus or Deficit With Debt Gross Incomes vs. All Expenses
$250,000
Hourly Totals (gross average based on 40 hour work week): $9.04
$100,000
Monthly Gross Surplus or Deficit: $1,573 $50,000
Percent Total Gross Income In Surplus Or Deficit: 9.7% $0
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
Surplus or Deficit Without Debt Grand Total Annual Expenses: Total Incomes
Net Incomes vs. Expenses Less Taxes
Hourly Totals (gross average based on 40 hour work week): $22.39
$150,000
$100,000
Percent Total Gross Income In Surplus Or Deficit: 24.0% $50,000
$0
Percentage of Total Gross Income
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
John's Percentage of Total Gross Income: 73.8%
Grand Total Annual Expenses Less Taxes: Total Incomes
Mary's Percentage of Total Gross Income: 26.2%

Annual Cash Flow Surplus or (-) Deficit: Taxes
$8,000 $60,000
$6,000
$50,000
$4,000
$2,000 $40,000
Federal
$0 $30,000 State
Year #1
Year #4
Year #7
Year #10
Year #13
Year #16
Year #19
Year #22
Year #25
Year #28
Year #31
Year #34
Year #37
Year #40
Year #43
Year #46
Year #49
FICA
-$2,000
$20,000 Local/Misc.
-$4,000
-$6,000 $10,000
-$8,000
$0
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
-$10,000
-$12,000 Asset Income Taxes Federal State FICA Local/Misc.
Compounded Cumulative Total Annual Surplus or Total Annual Debt Payments

$25,000
Deficit:
$25,000
$20,000 $20,000
$15,000
$10,000 $15,000
$5,000
$10,000
$0
Year #1
Year #4
Year #7
Year #10
Year #13
Year #16
Year #19
Year #22
Year #25
Year #28
Year #31
Year #34
Year #37
Year #40
Year #43
Year #46
Year #49
-$5,000 $5,000
-$10,000
-$15,000 $0
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
-$20,000

Total Annual Variable Expenses Taxes as a Percent of Income Taxes
$120,000
$100,000 Taxes: Local /

Taxes: FICA Miscellaneous
(Social Security 3.8%
$80,000 & Medicare)
28.3%
$60,000
$40,000
$20,000
$0 Taxes: State
11.3% Taxes: Federal
Year #1
Year #4
Year #7
Year #10
Year #13
Year #16
Year #19
Year #22
Year #25
Year #28
Year #31
Year #34
Year #37
Year #40
Year #43
Year #46
Year #49
56.6%
Total Annual Fixed Expenses (less taxes)

$80,000
$70,000
$60,000
$50,000 Income Taxes as a Percentage of Gross Incomes

$40,000 Federal: 12.3%
$30,000 FICA (Social Security & Medicare) 4.4%

State 1.5%
$20,000 Local / Miscellaneous 0.0%
Total: 18.2%
$10,000
$0
Year #1
Year #4
Year #7
Year #10
Year #13
Year #16
Year #19
Year #22
Year #25
Year #28
Year #31
Year #34
Year #37
Year #40
Year #43
Year #46
Year #49

End of Current Year Major Expense Categories
Professional /
Education
Debt Payments Replacements
0.2%
11.7% 2.1%
Savings /
Investments
Non-Home or 9.3%
Vehicle Insurance
2.3%
Vehicles
Money to Others
7.2%
(Family/Church/Ch
arity/Gifts)
0.3%
Children
21.1%
Miscellaneous
1.8%
Entertainment /
Income & Sales Hobbies / Toys
Taxes 0.9%
25.5%
Fees
0.3%
Home Health Care (non-
8.2% insurance) /
Personal Food
Maintenance 6.7%
2.3%

NET WORTH REPORT EXPLANATION
OVERVIEW OF THE NET WORTH REPORTS

This text is to help you understand the overall concepts, and the technical details, of the net
worth reports.
The data used to generate the reports came from a combination of fact finders, your
financial statements, assumptions, and estimates. These values change daily, so there will
always be a level of inaccuracy that can’t be avoided.
The Current Net Worth Statement page presents a top-level summary of “where you are
now.” This is a snapshot of where you were at the time of Discovery (they are not
projected end-of-year values).
Assets and liabilities are both stated using their current market values. Net worth is the
result assuming that all assets were sold at their market values, no taxes were deducted,
and then all liabilities were subtracted. This is an estimate of your wealth.
This data is then presented in both bar chart and pie chart form.
As the pages progress, more details are shown.
Drilling Down Into the Details
The next page, Current Liabilities, details your current liabilities. These are also current
values, not end-of-year values.
The next three pages, All Assets, Non-Qualified Assets, and Qualified Assets, detail who
owns what, and if they are in a non-tax-qualified account, or held in a tax-qualified
retirement account, like an IRA. These are also current values, not end-of-year values.
The page, Assets by Asset Class sorts assets by which investment type they are, for
example - cash, bonds, or stocks. These are also current values, not end-of-year values.

Each account is shown with a pie chart, and then the same thing is shown totaling
everyone’s assets added together (again with a pie chart).
The next page, Asset Values Before and After Capital Gains Taxes estimates how much of
a decrease in assets will be applied after paying capital gains taxes upon their sale.
Projecting the Future
This report illustrates how your net worth will change over time.
Next to each asset is its growth rate input into the global rate of return field.
These values are all estimates of what they will be at the end of each year. This is why
they are different than what’s shown on the snapshot pages above. These values will
include growth, shrinkage, additions, withdrawals, and paying off liabilities over time.
Each person’s assets, liabilities, and resulting net worth is projected annually. Then each
person’s values are combined to display the same bottom-line information for the family
as a whole.
For each adult, there are also two rows that display assets by tax-qualified and non-tax-
qualified assets. This helps visualize how retirement assets are doing compared to personal
assets.
Underneath the assets section, everyone’s liabilities are detailed. Underneath the liabilities
section, liabilities are subtracted from assets to display annual net worth.
Miscellaneous
Real growth must take inflation into account. If your average annual rate of growth is 7%
and annual inflation is 3%, then your real rate of growth is only 4%.
Hopefully, all of the charts and graphs will be self-explanatory.
A good measure of the benefit of financial planning and investment management is how
your net worth improved over what you would have realized if you never met us, and
continued doing what you were doing.

Current Net Worth Statement
June 6, 2008
Prepared Especially for:
John & Mary Sample
Assets & Liabilities

John's Non-Qualified Assets: $25,000
John's Qualified Assets: $60,000
Mary's Non-Qualified Assets: $112,000
Mary's Qualified Assets: $30,000
Joint / Community Property Assets: $325,000
Children's Assets: $60,000
Total Assets $612,000

John's Liabilities: $0
Mary's Liabilities: $25,000
Joint / Community Property Liabilities: $125,000
Children's Liabilities: $0
Total Liabilities -$150,000

Net Worth $462,000
Net Worth with Liabilities Net Worth without Liabilities

John's
John's John's Non- Qualified
Total John's Non- Qualified Qualified 9.8%
Liabilities Qualified 7.9% Children's 4.1%
19.7% 3.3% Mary's Non-
Assets
John's Non-Qualified $25,000 Qualified
9.8%Qualified
John's $60,000
Mary's Non- 18%
Qualified Mary's Non-Qualified $112,000
15%
Children's Mary's Qualified $30,000
Assets
7.9% Joint/Community Property $325,000
Children's Assets $60,000
Mary's Mary's
Total Liabilities -$150,000
Qualified Qualified
Joint/Comm 3.9% Joint/Commu 4.9%
unity nity Property
Property 53.1%
42.7%
1997 - 2008 Toolsformoney.com, All Rights Reserved

Net Worth
$700,000
$600,000
$500,000 Assets Liabilities Net Worth

John's Non-Qual $25,000 $0 $25,000
John's Qualified $60,000 $0 $60,000
Mary's Non-Qual $112,000 $25,000 $87,000
$400,000 Mary's Qualified $30,000 $0 $30,000
Joint $325,000 $125,000 $200,000
Kids $60,000 $0 $60,000
$300,000
$200,000
$100,000
$0
Assets Liabilities Net Worth
John's Non-Qual John's Qualified Mary's Non-Qual Mary's Qualified Joint Kids
John's Non- John's Mary's Non- Mary's

Joint Kids
Qual Qualified Qual Qualified
Assets: $25,000 $60,000 $112,000 $30,000 $325,000 $60,000
Liabilities: $0 $0 $25,000 $0 $125,000 $0
Net Worth: $25,000 $60,000 $87,000 $30,000 $200,000 $60,000
1997 - 2008 Toolsformoney.com, All Rights Reserved

Current Liabilities
June 6, 2008
Prepared Especially for:
John & Mary Sample
John's Liabilities Mary's Liabilities

401(k): $0 403(b): $0
IRA $0 IRA $0
Merrill $0 American Funds $0
Personal Property $0 Rental Property $25,000
John's Total: $0 Mary's Total: $25,000
Joint & Community Liabilities Children's Liabilities

House: $100,000 Rugrat's College Fund: $0
Vehicles $20,000 Munchkin's College Fund $0
Stuff $5,000 Joe's College Fund $0
JP Morgan $0 $0
Joint Total: $125,000 Children's Total: $0
Sample's Total Liabilities: $150,000

Current Projected Net Worth for John & Mary Sample
Using End of Year Values 45 46 47 48 49 50 51 52 53 54 55 56
0 0 0 0 0 0 0 0 0 0 0 0
John's Assets 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Age: 45 Age: 46 Age: 47 Age: 48 Age: 49 Age: 50 Age: 51 Age: 52 Age: 53 Age: 54 Age: 55 Age: 56
401(k) (6%) $49,820 $66,191 $83,680 $103,246 $118,490 $137,554 $156,096 $181,878 $207,597 $235,338 $262,595 $289,034
IRA (7%) $26,750 $28,959 $31,281 $34,173 $34,688 $36,532 $37,847 $41,507 $44,773 $48,369 $51,458 $53,955
Merrill (7%) $21,400 $23,178 $25,045 $27,381 $27,741 $29,200 $30,218 $33,167 $35,786 $38,671 $41,133 $43,103
Personal Property (2%) $5,100 $5,202 $5,306 $5,412 $5,520 $5,631 $5,743 $5,858 $5,975 $6,095 $6,217 $6,341
End of Year Values of All John's Assets: $103,070 $123,531 $145,312 $170,213 $186,439 $208,917 $229,903 $262,411 $294,131 $328,473 $361,403 $392,432
John's Total Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
End of Year Values of All John's Assets, Minus Liabilities: $103,070 $123,531 $145,312 $170,213 $186,439 $208,917 $229,903 $262,411 $294,131 $328,473 $361,403 $392,432
End of Year Values of All Client's Qualified Assets: $76,570 $95,151 $114,961 $137,420 $153,178 $174,086 $193,942 $223,386 $252,370 $283,707 $314,053 $342,988
End of Year Values of All Client's Personal Assets: $26,500 $28,380 $30,351 $32,793 $33,261 $34,831 $35,961 $39,025 $41,761 $44,766 $47,350 $49,444
Mary's Assets 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
403(b) (6%) $22,260 $30,306 $38,915 $48,633 $55,699 $64,881 $73,580 $86,512 $99,228 $112,995 $126,225 $138,674
IRA (7%) $16,050 $17,392 $18,800 $20,570 $20,798 $21,879 $22,616 $24,844 $26,812 $28,983 $30,823 $32,278
American Funds (7%) $12,840 $13,918 $15,049 $16,474 $16,635 $17,493 $18,068 $19,859 $21,436 $23,176 $24,645 $25,797
Rental Property (5%) $105,000 $110,250 $115,763 $121,551 $127,628 $134,010 $140,710 $147,746 $155,133 $162,889 $171,034 $179,586
End of Year Values of All Spouse's Assets: $156,150 $171,866 $188,527 $207,228 $220,760 $238,262 $254,974 $278,960 $302,609 $328,044 $352,726 $376,335
Mary's Total Liabilities $19,541 $13,755 $7,622 $1,121 $0 $0 $0 $0 $0 $0 $0 $0
End of Year Values of All Mary's Assets, Minus Liabilities: $136,609 $158,111 $180,905 $206,107 $220,760 $238,262 $254,974 $278,960 $302,609 $328,044 $352,726 $376,335
End of Year Values of All Spouse's Qualified Assets: $38,310 $47,698 $57,716 $69,203 $76,497 $86,760 $96,195 $111,355 $126,040 $141,978 $157,048 $170,952
End of Year Values of All Spouse's Personal Assets: $117,840 $124,168 $130,811 $138,024 $144,263 $151,503 $158,778 $167,604 $176,569 $186,066 $195,678 $205,383
Jointly Held / Community Assets 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
House (2%) $255,000 $260,100 $265,302 $270,608 $276,020 $281,541 $287,171 $292,915 $298,773 $304,749 $310,844 $317,060
Vehicles (-10%) $31,500 $28,350 $25,515 $22,964 $20,667 $18,600 $16,740 $15,066 $13,560 $12,204 $10,983 $9,885
Stuff (-5%) $23,750 $22,563 $21,434 $20,363 $19,345 $18,377 $17,458 $16,586 $15,756 $14,968 $14,220 $13,509
JP Morgan (7%) $16,050 $17,392 $18,800 $20,570 $20,798 $21,879 $22,616 $24,844 $26,812 $28,983 $30,823 $32,278
End of Year Values of All Joint Assets: $326,300 $328,405 $331,052 $334,504 $336,830 $340,398 $343,986 $349,410 $354,901 $360,904 $366,870 $372,732
Joint & Community Total Liabilities $114,568 $103,021 $91,522 $85,118 $80,724 $76,023 $70,993 $65,610 $59,851 $53,689 $47,095 $40,040
EOY Values of All Joint Assets, Minus Liabilities: $211,732 $225,384 $239,530 $249,387 $256,106 $264,375 $272,993 $283,800 $295,050 $307,215 $319,775 $332,693
Children's Assets 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Rugrat's College Fund (5%) $28,350 $42,494 $57,471 $73,327 $90,105 $107,853 $113,245 $118,908 $124,853 $131,096 $100,840 $67,051
Munchkin's College Fund (5%) $33,600 $48,132 $63,648 $80,201 $97,850 $116,654 $122,487 $128,611 $135,041 $106,661 $74,938 $39,591
Joe's College Fund (5%) $42,000 $60,323 $80,048 $101,261 $124,050 $148,512 $155,937 $131,931 $104,997 $74,884 $41,327 $4,038
End of Year Values of All Children's Assets: $103,950 $150,948 $201,167 $254,789 $312,005 $373,018 $391,669 $379,450 $364,891 $312,641 $217,105 $110,680
Children's Total Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
EOY Values of All Children's Assets, Minus Liabilities: $103,950 $150,948 $201,167 $254,789 $312,005 $373,018 $391,669 $379,450 $364,891 $312,641 $217,105 $110,680
All Assets: $689,470 $774,749 $866,058 $966,733 $1,056,035 $1,160,595 $1,220,532 $1,270,231 $1,316,533 $1,330,061 $1,298,104 $1,252,180
Liabilities 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Mary's Rental Property $19,541 $13,755 $7,622 $1,121 $0 $0 $0 $0 $0 $0 $0 $0
Joint: House $96,648 $93,062 $89,224 $85,118 $80,724 $76,023 $70,993 $65,610 $59,851 $53,689 $47,095 $40,040
Joint: Vehicles $14,652 $8,769 $2,298 $0 $0 $0 $0 $0 $0 $0 $0 $0
Joint: Stuff $3,268 $1,190 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
All Liabilities: $134,110 $116,776 $99,144 $86,239 $80,724 $76,023 $70,993 $65,610 $59,851 $53,689 $47,095 $40,040
All Assets Minus All Liabilities: $555,360 $657,973 $766,914 $880,495 $975,311 $1,084,572 $1,149,539 $1,204,620 $1,256,682 $1,276,373 $1,251,009 $1,212,140

$600,000
Client's Total Assets
$500,000
$400,000
$300,000
$200,000
$100,000
$0
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
2052
2054
2056
2058
2060
2062
401(k) (6%) IRA (7%) Merrill (7%) Personal Property (2%)
Spouse's Total Assets
$1,800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
2052
2054
2056
2058
2060
2062
403(b) (6%) IRA (7%) American Funds (7%) Rental Property (5%)
Total Jointly Held / Community Assets
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
2052
2054
2056
2058
2060
2062
House (2%) Vehicles (-10%) Stuff (-5%) JP Morgan (7%)
Spouse's Assets Minus Liabilities
$1,800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
2052
2054
2056
2058
2060
2062
Children's Total Assets
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
Rugrat's College Fund (5%) Munchkin's College Fund (5%) Joe's College Fund (5%)
Jointly Held/Community Assets Minus Liabilities
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
2052
2054
2056
2058
2060
2062
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
Net Worth
2036
2038
2040
2042
2044
2046
2048
2050
2052
2054
2056
2058
2060
2062
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
2008
2010
2012
2014
2016
2018
John's Assets
2020
2022
2024
2026
2028
2030
2032
2034
All Assets
2036
2038
2040
2042
Mary's Assets
2044
2046
2048
2050
2052
2054
2056
2058
2060
2062
Joint Assets
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
2008
2010
2012
2014
2016
2018
2020
2022
Mary's Rental Property

2024
2026
2028
2030
2032
2034
All Liabilities
2036
2038
2040
2042
2044
2046
Joint: House
2048
2050
2052
2054
2056
2058
2060
2062
Net Worth (All Assets Minus All Liabilities)
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
2052
2054
2056
2058
2060
2062
John's Qualified Assets John's Personal Assets Mary's Qualified Assets Mary's Perso
Proposed Projected Net Worth for John & Mary Sample
Using End of Year Values 45 46 47 48 49 50 51 52 53 54 55 56
0 0 0 0 0 0 0 0 0 0 0 0
John's Assets 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
401(k) (8%) $50,760 $68,455 $87,703 $109,534 $127,540 $149,936 $172,449 $202,934 $235,470 $271,189 $309,208 $349,588
IRA (9%) $27,250 $30,046 $33,050 $36,742 $38,129 $40,962 $43,373 $48,318 $53,481 $59,236 $65,247 $71,511
Schwab (9%) $21,800 $24,047 $26,461 $29,437 $30,495 $32,745 $34,637 $38,614 $42,761 $47,386 $52,211 $57,233
Personal Property (2%) $5,100 $5,202 $5,306 $5,412 $5,520 $5,631 $5,743 $5,858 $5,975 $6,095 $6,217 $6,341
End of Year Values of All John's Assets: $104,910 $127,750 $152,520 $181,125 $201,685 $229,274 $256,202 $295,724 $337,687 $383,905 $432,883 $484,673
End of Year Values of All John's Assets, Minus Liabilities: $104,910 $127,750 $152,520 $181,125 $201,685 $229,274 $256,202 $295,724 $337,687 $383,905 $432,883 $484,673
End of Year Values of All Client's Qualified Assets: $78,010 $98,501 $120,753 $146,276 $165,669 $190,898 $215,822 $251,252 $288,951 $330,424 $374,455 $421,098
End of Year Values of All Client's Personal Assets: $26,900 $29,249 $31,767 $34,849 $36,015 $38,376 $40,381 $44,472 $48,737 $53,481 $58,428 $63,574
Mary's Assets 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
403(b) (8%) $22,680 $31,331 $40,756 $51,535 $59,904 $70,656 $81,234 $96,380 $112,502 $130,270 $149,105 $169,008
IRA (9%) $16,350 $18,044 $19,863 $22,113 $22,865 $24,538 $25,929 $28,928 $32,051 $35,537 $39,169 $42,944
Schwab (9%) $13,080 $14,440 $15,899 $17,709 $18,288 $19,620 $20,719 $23,126 $25,631 $28,428 $31,340 $34,365
Rental Property (5%) $105,000 $110,250 $115,763 $121,551 $127,628 $134,010 $140,710 $147,746 $155,133 $162,889 $171,034 $179,586
End of Year Values of All Spouse's Assets: $157,110 $174,065 $192,280 $212,908 $228,685 $248,824 $268,592 $296,179 $325,317 $357,124 $390,648 $425,902
End of Year Values of All Mary's Assets, Minus Liabilities: $137,569 $160,310 $184,658 $211,787 $228,685 $248,824 $268,592 $296,179 $325,317 $357,124 $390,648 $425,902
End of Year Values of All Spouse's Qualified Assets: $39,030 $49,376 $60,619 $73,648 $82,768 $95,194 $107,163 $125,308 $144,553 $165,806 $188,274 $211,952
End of Year Values of All Spouse's Personal Assets: $118,080 $124,690 $131,661 $139,260 $145,917 $153,630 $161,429 $170,871 $180,764 $191,317 $202,374 $213,950
Jointly Held / Community Assets 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
House (2%) $255,000 $260,100 $265,302 $270,608 $276,020 $281,541 $287,171 $292,915 $298,773 $304,749 $310,844 $317,060
Vehicles (-10%) $31,500 $28,350 $25,515 $22,964 $20,667 $18,600 $16,740 $15,066 $13,560 $12,204 $10,983 $9,885
Stuff (-5%) $23,750 $22,563 $21,434 $20,363 $19,345 $18,377 $17,458 $16,586 $15,756 $14,968 $14,220 $13,509
Schwab (9%) $16,350 $18,044 $19,863 $22,113 $22,865 $24,538 $25,929 $28,928 $32,051 $35,537 $39,169 $42,944
End of Year Values of All Joint Assets: $326,600 $329,057 $332,114 $336,048 $338,897 $343,057 $347,300 $353,495 $360,141 $367,458 $375,216 $383,398
EOY Values of All Joint Assets, Minus Liabilities: $212,032 $226,036 $240,592 $250,930 $258,172 $267,034 $276,307 $287,885 $300,289 $313,769 $328,121 $343,359
Children's Assets 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Rugrat's College Fund (8%) $29,160 $44,582 $61,369 $79,632 $99,489 $121,069 $130,754 $141,215 $152,512 $164,713 $140,027 $111,289
Munchkin's College Fund (8%) $34,560 $50,544 $68,071 $87,270 $108,280 $131,251 $141,751 $153,091 $165,339 $142,429 $115,709 $84,755
Joe's College Fund (8%) $43,200 $63,342 $85,596 $110,146 $137,191 $166,946 $180,302 $162,015 $140,487 $115,353 $86,214 $52,631
End of Year Values of All Children's Assets: $106,920 $158,468 $215,037 $277,048 $344,959 $419,266 $452,807 $456,321 $458,337 $422,495 $341,951 $248,675
EOY Values of All Children's Assets, Minus Liabilities: $106,920 $158,468 $215,037 $277,048 $344,959 $419,266 $452,807 $456,321 $458,337 $422,495 $341,951 $248,675
All Assets: $695,540 $789,341 $891,951 $1,007,128 $1,114,226 $1,240,420 $1,324,901 $1,401,719 $1,481,482 $1,530,982 $1,540,698 $1,542,649
Liabilities 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Mary's Rental Property $19,541 $13,755 $7,622 $1,121 $0 $0 $0 $0 $0 $0 $0 $0
Joint: House $96,648 $93,062 $89,224 $85,118 $80,724 $76,023 $70,993 $65,610 $59,851 $53,689 $47,095 $40,040
Joint: Vehicles $14,652 $8,769 $2,298 $0 $0 $0 $0 $0 $0 $0 $0 $0
Joint: Stuff $3,268 $1,190 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
All Liabilities: $134,110 $116,776 $99,144 $86,239 $80,724 $76,023 $70,993 $65,610 $59,851 $53,689 $47,095 $40,040
All Assets Minus All Liabilities: $561,430 $672,565 $792,807 $920,890 $1,033,501 $1,164,398 $1,253,909 $1,336,109 $1,421,631 $1,477,293 $1,493,603 $1,502,609

Client's Total Assets
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
2052
2054
2056
2058
2060
2062
401(k) (8%) IRA (9%) Schwab (9%) Personal Property (2%)
Spouse's Total Assets
$2,000,000
$1,800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
2052
2054
2056
2058
2060
2062
403(b) (8%) IRA (9%) Schwab (9%) Rental Property (5%)
Spouse's Assets Minus Liabilities
$2,000,000
$1,800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
2052
2054
2056
2058
2060
2062
Total Jointly Held / Community Assets
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
2052
2054
2056
2058
2060
2062
House (2%) Vehicles (-10%) Stuff (-5%) Schwab (9%)
Jointly Held/Community Assets Minus Liabilities
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
2052
2054
2056
2058
2060
2062
Children's Total Assets
$500,000
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
Rugrat's College Fund (8%) Munchkin's College Fund (8%) Joe's College Fund (8%)
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
Net Worth
2036
2038
2040
2042
2044
2046
2048
2050
2052
2054
2056
2058
2060
2062
All Assets
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
2052
2054
2056
2058
2060
2062
John's Assets Mary's Assets Joint Assets
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
2008
2010
2012
2014
2016
2018
2020
2022
Mary's Rental Property

2024
2026
2028
2030
2032
2034
All Liabilities
2036
2038
2040
2042
2044
2046
Joint: House
2048
2050
2052
2054
2056
2058
2060
2062
Net Worth (All Assets Minus All Liabilities)
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
2052
2054
2056
2058
2060
2062
John's Qualified Assets John's Personal Assets Mary's Qualified Assets Mary's Personal As
REAL WORLD RETIREMENT SOFTWARE (RWR)
This text is to help you understand the technical details of the retirement plan that follows.
Some people don't like the word "retirement" so the plan is called Financial Independence Analysis. Other
terms are used that mean pretty much the same thing, such as going into an alternate lifestyle, stopping
work full time, freedom from an occupational schedule, etc. It will just be referred to as "retirement" from
now on because it's the industry's standard way of saying things.
The plan is a year-by-year comparison of money being spent versus money being generated. You tell us,
by filling out our Retirement Fact Finder questionnaire, how much you'd like to spend annually. This is
then compared to how much money your investments, and other sources of income, can generate.
If you spend less than your investments are making, your balance of capital will increase over time. This
means you can usually spend more than originally thought, thereby being able to increase your standard
of living, passing more to heirs, or gifting more than projected.
If you spend more than your investments are making, then you'll be spending investment principal, and
your balance of capital will decline. If the decline is serious enough, you will run out of money before you
pass away. This is called superannuitization, and is the most common scenario we want to help you
avoid.
Both scenarios (not spending enough and running out of money) are usually undesirable, so this plan will
help find the middle ground you can be comfortable with. This middle ground is always changing, so it's
important to run the reports annually.
Other important uses for the retirement plan are to show you:
 When you can retire and the effects of or waiting, or retiring a few years early.
 How much you can spend every year, assuming taxes and various cost of living inflation rates.
 How much more you'll need to save/invest if you're short in reaching your goals.
 What average investment rate of return is needed to reach your goals. This sets the tone for how much
risk you can, or need to take, to reach your goals. If you can reach your goals with a portfolio of bonds
paying 6%, then you would sleep very well knowing you are not taking much risk.
 How major expenditures (i.e., college for children, nursing homes, expensive vacations, vehicle
replacements, etc.) in addition to your basic income goal, may effect your plans over time.

 How home downsizing, inheritances, or other significant future cash flows may affect your plans.
 The effects of IRS qualified plan required minimum distributions that you may have to start taking at
age 70½. If you have a goal of keeping a certain amount of money left over when you're a certain age, this
may make a big difference.
 How much money you'll have at the end of every year.
 How investment portfolio construction and rebalancing may affect your plans over time.
PRECISION
Since we are using assumptions and computers to estimate the future, we need to point out some
limitations of the retirement plan:
 No one knows what the future holds. Most of what financial advisors do and say are just educated
guesses. Economics is both a dismal and an inexact science (it's more of an art really).
 Nobody knows what your expenses will actually be.
 Inflation, taxes, and investment rates of return can't be predicted or guaranteed, and won't be constant.
 Computer generated numbers are just extrapolations, not predictions.
 Social Security and Medicare benefits may be changed.
 Anything that's not taken into account in the retirement plan may affect the results drastically.
The main goal in the retirement plan is to spot trends based on various data input. If the trend is bad, then
it's best to know as soon as possible rather than to find out after you commit to retirement. Because of the
"time value of money," the sooner you can get an idea of what your retirement may look like, the better
your chances are of avoiding unpleasant surprises. This is because the more time you have to prepare, the
better the chances are of reaching your goals. This is due mostly to the fact that one's ability, and
willingness, to work to earn money diminish over time.
INCOME GOALS, TAXES, INFLATION, AND ADDITIONAL FUNDING NEEDS
Let's start with the first page of the report. Annual Income Goals are what you (and your spouse) wrote on
the questionnaire where it asked how much money you want to spend. This is the bulk of your normal
living expenses when you retire. They are called goals because not everyone can spend as much money as
they want to. These income goal amounts are after taxes, so it's net, spendable money. If there is only one
income goal, or if both you and your spouse retire in the same year, then both of your goals are combined
and the text under Annual Income Goals will say Combined Goal. If you and your spouse retire in
different years, then there will be two income goals (if you want and listed two).
These amounts also both increase with inflation at the rate(s) you specified on the questionnaire. If you
didn't specify any inflation rates, we most likely did it for you because we feel there will always be some
cost of living inflation. These rates can be found on the top right of the first page of the plan where it says
Income Goal Inflation. This number is the average over the next 30 years. Shorter-term inflation rates are
in the footnotes below.
Note that if the plan used the results of the Cash Flow Projector, then these income goals and inflation
rates will be totally, or partially, overridden. In this case the inflation rates used will be ignored.
Retirement ages are when you told us you wanted to retire. Husband and wife do not have to retire in the
same year. "Retirement" starts in the year your income goals start to be funded by investment assets and
sources other than earned income. You can still earn money after you are retired, and these numbers are
found on another page. Most projections in the plan start in the first year someone retires.
The two notes under the Income Goal Inflation section are the tax rates used. The first tax rate is our
estimate of your average tax bracket. Because we are taking all of your income into account, marginal
rates are not used. Average tax rates are always lower than marginal rates. Average tax rates are found
just by dividing the total amount of tax due by your gross incomes (not your Adjusted Gross Incomes, or
AGI).
The other tax rate shown is the amount of your Social Security we estimate will be included in your
taxable income. Currently, most people collecting Social Security pay ordinary income tax on 50% of
their Social Security if they have other income over a certain amount.
The Average Percent of Annual Income Goal Being Met number in the middle of the page is important.
You want 100% of your income needs to be met every year. If there are years when you won’t be getting
as much money as you need, then this will lower the average number. The year-by-year numbers are on
the Annual Summary Numbers page. There’s no magic number that can be viewed as good or bad, but
anything less than 90% means your retirement won’t go as well as planned.
The bottom section shows how much more needs to be saved/invested to reach your goals. If the lump
sum and monthly need numbers are both zero, then the plan is saying that you can reach your goals given
the data that was input. If you need to accumulate more money to reach your goals, then there will be
some numbers here. The left number shows how much you would need to invest all at once today to reach
your goals. The number in the middle shows how much you would need to invest every month until your
retirement (if you would rather invest monthly than lump sum). Please note that these numbers are
mutually exclusive - doing one or the other will be sufficient to reach your goals. In other words, you
don't need to do both lump sum and the monthly investing. Both the lump sum and monthly numbers will
grow to be about the same value by the year you retire. Both of these amounts will grow at the assumed
rate of return shown at the right. The lower this rate of return, the more money is needed, and vice versa.
ASSET AND NON-ASSET INCOME SUMMARY
The top section lists all of your assets input into the program. The asset's name appears first. If neither you
nor your spouse's name appears, then it's a jointly owned asset (you both own it).
The next column to the right shows each asset's current value. In the next column, if there is an age here
other than your current age, then this means the asset does not come into play until you reach that age. For
example, if you expect a $50,000 inheritance at age 70 (and you're 50 now), then the program ignores that

asset until you are 70. In this case, the inputted growth rate becomes a discount rate. This means that if
you have a $10,000 asset coming into the picture in five years, and it's discount rate is 10%, then it's only
worth $6,209 today. So roughly $6,209 will be the amount displayed here.
The next four columns apply only to an asset when you plan to add more money to it. For example, if you
have an IRA that you contribute $2,000 annually to, then $2,000 will show up under the Annual Additions
to Asset column. The next two columns show the years you plan to make the contributions. The program
doesn't go back in time, so it will just account for the current year and future years. The column, Inflation
Rate of Annual Contributions, shows increases in contributions over time. For example, if you have a
company 401(k) plan, and you put x% of your income into it, and your income goes up 5% every year,
then this 5% will show up here because your contributions will also increase by 5% annually (unless
you're maxed out already). A good thing to keep in mind is that the program will account for any amount
and/or frequency of additions to assets. In other words, you can put $1,000 per year in this year, $2,000
the next, none the next, and so on.
The next column, Age when Payout Begins, shows your age when each asset starts to pay out income
needed to fund your goals. Assets normally start to pay you when you retire, but you can start them at any
year after retirement. Using the inheritance example above, if you get it where you're 70, you can let it
grow until you're 80, and then start taking income from it. Just about anything that happens in the real
world can be illustrated, if you tell us in that level of detail. Income from assets paying out before the age
of the first person's retirement is ignored.
The next column is more complex. This shows which of the ten most commonly used methods was used
to get retirement income from each asset. There are various restrictions on how some investment assets
can pay out income for you to spend. We choose one of the ten methods based on the type of asset, and
other factors in your life.
THE TEN ASSET PAYOUT METHODS

All of the cell reference numbers in this section refer to the ten asset sheets of the retirement planner.
1) Lump Sum: 100% of the asset’s balance is paid out as a lump sum at any year specified (whether
retired or not, or way past the age retirement has already started). You can still use the manual withdrawal
column to take out amounts before the 100% lump sum year.
2) Yield Only: The biggest use for this is when you want to keep the principal intact forever. It has more
uses than that, as explained below. For example, to account for individual CDs or bonds in the real world,
you can use the manual withdrawal column to lump sum the maturity proceeds. You can also simulate
any number of individual CDs or bonds maturing on different years by using the manual withdrawal
column in conjunction with the rate of return manual override columns.
Another use of this payout option is simulating assets like bond mutual funds by assuming a total return
of 7%, taking out 6% interest income, and having the principal grow by some small amount. Or slowly
deplete it by taking out 7% and growing it at 6%. And municipal bonds, or funds, can be simulated by
setting the amount taxable input field to 0%. Or the tax rate on any mix of state and federally taxable
scenarios can be run too. You basically have control over most any bond scenario with this payout option.

Note: Income generated by assets before retirement (payout age) is assumed to be spent, so it’s not
reinvested or taxed anywhere.
3) Inflation Adjusted Income Stream Generator: This method is also known as a "systematic
withdrawal plan." It automatically answers the question, “What’s the most money I can take out of this
asset every year, have this income stream keep up with inflation every year, and have it last until I’m 100
years old?”
4) IRS Required Age 70 & 1/2 Minimum Distributions: It only does it starting at age 70, and it only
uses the recalculation with single life method. Manual withdrawals will work before age 70, but not after.
5) Specific Amounts: This method just disables all of the other nine payout methods, so that only manual
withdrawals using the manual income withdrawal column will work. In other words, you have to
manually enter income withdrawals in each year by inputting the year-by-year withdrawal amounts.
6) Flexible Asset: A Flexible asset is an asset that does not have a structured payout option (1-4 or 7-10)
assigned to it by the user. This makes this real world asset behave very differently than the others. A
Flexible asset is different because it’s the only payout method that frees the asset to pay income to fund
the netted cash flow deficits in each year that remain after all income from the Summing & Input sheet,
and assets with structured payout methods, have paid out. It basically funds whatever is needed to reach
the client’s income goals after everything else has paid out.
Flexible assets can also accept income surpluses in years when there is a surplus. These surpluses get
added back to the Flexible asset’s market value so it can grow until needed in the future to pay out
income.
7) Single Life Fixed Annuity: This method of paying out income trades the asset’s market value in for a
permanent income stream. This income stream most resembles a single life annuity (or old style defined
pension plan). The income stream does not inflate; it wipes out the asset’s market (principal) value when
it starts to pay out, it pays out until death, and cannot be altered once it begins. Note: The asset’s market
value is supposed to vanish when the income stream starts- so this is not a program error!
8) Inherited IRA or IRS Rule 72(t) Governing Pre-Age-59 ½ Tax-Qualified Plan Distributions:
What? To sum this long story up, if you have a tax-qualified plan (e.g., IRA), the IRS has rules to make
sure people pay the taxes that they saved during the accumulation phase. There are also rules saying that
if you take money out of an IRA before you turn age 59 ½, then you have to pay a 10% premature
distribution tax (in addition to ordinary income tax). In 2002, the IRS realized the error of its ways, and
made exceptions to these rules in section 72 of the code. Part “t” makes exceptions to getting these
premature distributions, because many people are already retired at ages before 59. Also, people that have
inherited IRAs may need the money now.
There are three ways to avoid the 10% penalty tax in section 72(t). The three methods are not the only
ways to qualify for these exceptions. All the IRS cares about is that you're receiving “substantially equal
periodic payments” from the IRA, and thus are paying taxes on this income. Payout method #3 is also a
way to do this (but don’t use it before getting advice from a tax pro!). Payout method #8 uses the same
calculations used for Inherited IRA distributions and the 72(t) method called Life Expectancy. Basically
the end of the last year’s balance is divided by the life expectancy of the owner. These life expectancy
numbers go down every year, so the required payments escalate to the point that all of the IRA is
distributed over the person’s lifetime (assuming that they live until life expectancy, recently adjusted to
age 115). Of the three methods of doing 72(t), this method will result in the lowest annual required
minimum distributions from the IRA.
9) IRS Rule 72(t) Governing Pre-Age-59 ½ Tax-Qualified Plan Distributions Using the Fixed
Amortization Method: The same story applies as above, but the formula is different. A time value of
money formula is used, using life expectancy numbers, end of the last year’s balance, and an assumed
interest rate. This method will result in the highest annual distributions.
10) IRS Rule 72(t) Governing Pre-Age-59 ½ Tax-Qualified Plan Distributions Using the
Annuitization Method: The same story as above. This method uses an actuarially determined annuity
factor, so be careful! This method produces about the same annual distributions as payout method #9, but
are just a little less.
That was the end of explaining payouts, now continuing on with the last two columns of the same section.
The next column indicates what rate of return was used for each asset. These are just guesses, and if you
feel they will be something else in a certain year, it can be changed. For example if you have a limited
partnership, or something that has different rates of returns in different years, it can be represented.
The next column is the percent of the asset's income, not growth, that is subject to the tax rate described
earlier. The earnings/growth/profit of each investment is not taxed. But when the asset produces income
that you spend, this part is taxed. For example, suppose you have a mutual fund that is producing $10,000
of your retirement paycheck. The fund grows by $20,000 in the same year; and your average tax bracket
was set to 25%. If we used 50% as the percent of the generated income that's subject to taxes, then $1,250
($10,000 * 0.5 * 0.25) just disappeared in taxes and the rest went to fund your income goal in that year.
The growth on the mutual fund was not taxed. Using 50% is common because when you sell mutual fund
shares to get money to spend, on average about half is taxable capital gains and about half is the return of
the initial investment, which is not taxable. We guesstimate on these numbers because nobody knows
what will really happen.
The bottom section (Non-Asset Income Summary) is the summary of the sources of your retirement
income that did not come from "assets." In this program, an asset is something that has value, and you
could sell it and get this whole value. Social Security can be considered an asset, but you can't sell it and
get the money. The same applies to any earned income, old-style defined benefit pensions, annuities that
have been annuitized, income from trusts when you cannot get at the principal, etc. Everything in this
category is shown here.
All dollar amounts shown are before taxes are taken out. The amounts after taxes are shown on the next
page. The beginning and ending age columns are just that - when these incomes start and stop. Social
Security pays until you pass away, so that's why it says "n/a." Earned income, and other things, may stop
at a certain age.
The next column shows the annual inflation rate - or how much these incomes are estimated to go up
every year. Again, we're just guessing. The last column shows whether the income is taxable or not. Some
income streams are not taxable. If you have income high enough to make your Social Security taxable,
then it will show up here (and on the first page).

The next page or two (Annual Summary Numbers) shows all of your miscellaneous income and expenses,
and summarizes all of the numbers year-by-year.
The first five columns show what age you will be in future years, and the average tax rate used.
The next column, Combined Income Goal, shows your regular income goal going up annually with
inflation. Combined just means that your and your spouse's numbers are added together. If you wanted to
downsize a house, or otherwise reduce your income goal in future years, you can see this here.
The next column, Combined Annual After-Tax Miscellaneous Income and/or Expense, is just the next
page or two's numbers all added together every year. In other words, all of the amounts shown on the next
page or two, Miscellaneous Annual Expense and Non-Asset Income Details, are summed up here.
Miscellaneous income is money that you plan to get from sources other than your assets after you have
retired. Some examples are earned incomes from hobby businesses, selling real estate, rental property
income, inheritances, trusts, winning lawsuits, etc. Any significant amount of money you plan to spend in
addition to your normal income goals will show up here as a miscellaneous expense. Miscellaneous
expense examples are putting children through college, replacing expensive vehicles every few years,
buying a vacation home, etc. These amounts are all "inflated," so if you put down that you want to buy a
$35,000 vehicle five years after you have retired, then this could show up as a $45,000 expense on this
page in that year if we used a 5% inflation rate (if you retired this year).
The next column, Combined Annual Social Security, shows these amounts after taxes.
The next column, Combined Annual Earned Income, are all of your post-retirement earned incomes after
taxes.
The next column, Combined Annual Pension Income, are all of your incomes from old-style defined
benefit pension plans, annuities that have been annuitized, etc., after taxes.
The next column, Combined Annual Asset Income, display all of the combined after-tax asset incomes.
The next column, Combined Annual Income Surplus or Deficit, is a little tricky because it depends on
how all of your assets are structured to pay out income. Basically, if your income goals and miscellaneous
expenses are more than what can be generated from your assets and miscellaneous sources of income,
then you'll be spending more money than what's coming in that year. For example, if your income goal
has inflated to be $100,000, and all of your sources of income only total up to $75,000 after taxes, then a
deficit, of -$25,000 will show up here.
The next column, End of Year Balance of Capital, shows how much money, in marketable assets, we
estimate you will have left over at the end of each year. These amounts are after taxes and the rate of
return growth rates are applied. If you consistently spend more money than these assets generate, then
your balance of capital will decline over time, and eventually run out. If you spend less, then your balance
of capital will continue to grow, sometimes astronomically.
The next column, Percent of Income Goal Being Met: If one had enough assets, and set them up right so
that they’d pay out income that always met expenses perfectly, then these numbers will always be 100%.
If, however, there is not enough income to meet expenses, this number will be lower. For example, if the
income goal is $50,000 and only $25,000 was available, then this number will be 50%. It’s possible to see
numbers more than 100% is there is a surplus in that year, and less than zero if the annual deficit is larger
than the current year’s income goal. Numbers under 90% spell trouble ahead.
The next column, End of Year Balance of Capital: This displays the combined end of year values of all
(ten) assets, after incomes and taxes have paid out, and after the annual growth rate is applied.
The next column, Average Weighted Rate of Return on Assets: This estimates the average rate of return on
all of your assets. Since some assets pay out more than others every year, they do not all grow or shrink at
the same rate. So the program just calculates the average. For example, if you have two assets both about
equal in size, and one gets a higher rate of return than the other, and a lot more money comes out of the
higher return asset in the form of income in a certain year; then at the end of that year, you will have less
money left over in this asset than in the other asset. So the average weighted return on your overall
portfolio will decline a little bit because you have less money in the asset with the higher rate of return.
The next column, Percent Change in Asset Balance from Previous Year: This shows just how much all of
your assets combined have grown or shrunk by the end of each year. It simply compares the End of Year
Balance of Capital from one year to the next, and computes the percentage change.
The next column, Present Value of Additional Capital Needed Now vs. at Retirement: These numbers are
the additional year-by-year amounts needed now to make up shortfalls. If one wanted to only fund
retirement up until a certain year, then the number shown in that year shows how much is needed as a
lump sum today. These numbers increase every year because every year’s amount is just added to the
running totals.
GRAPHS
The first graph summarizes the whole picture with two numbers from the previous two pages. The sixth
column on the previous page, Combined Income Goal, is in blue; and the; End of Year Balance of Capital
(fifth column from the right on the previous page) is in red. This shows how much money we estimate
you'll be spending in each year, compared to how much money you have. This is the bottom line shown
graphically. This is an easy way to see the financial dips and bumps in your future and what may cause
them.
We hope all of the other graphs are self-explanatory.
WHAT YOU CAN DO IF THE REPORT SHOWS YOU'LL RUN OUT OF MONEY
Look on the first page of the plan at the bottom where it shows Additional Funding Needed to Reach Your
Income Goals. If there are any numbers (other then zeros), then the program has figured that you will run
out of money before you pass away. The age is usually set at 100 but this can be changed. The sooner one
passes away, the less money it takes to fund retirement.
If this is the case in your report, then you're probably curious what it would take to solve this problem.
Here is a list of the most common techniques used:
 Invest more money now, or over time. First, check to see that all of your assets are listed. Clients
sometimes "forget" to tell their planners about all of their assets.
 Get a higher rate of return on the assets, both now and throughout retirement. If you have assets earning
bank interest rates, that's a major problem. Fortunately, we also specialize in investment management,
using sophisticated asset allocation techniques, so we can help here too.
 Lower your income goal (the amount of money you'll be spending when retired). Take a good look at
your budget and see if you really need to spend all of the money you put down as your income goal. If
you don't have a budget, then we can help with that too by using the Family Budget and Cash Flow
Projection software. Since the amount of money you have now probably can't be changed, and the rate of
return you'll get cannot be predicted, lowering your income goal is the most effective option.
 You can retire in a later year. Every year you wait, the more money will accumulate (assuming your
investments are well managed and don't go down, and/or assuming you will be saving money for a longer
period of time).
 Lower the age that you will assume you will pass away. Every year you're alive depletes your capital
base, especially the later years. If you're pretty sure you won't make it past a certain age, we should show
that in the report.
 Lower the cost of living inflation rates on your income goals. These numbers should reflect the current
environment to some extent, but should also err on the high side.
 Find out what you will have in Social Security by getting the updated data directly from the source. You
can download Social Security’s free AnyPIA calculator from their website and get accurate numbers:
http://www.ssa.gov/
 Lower the age when you will collect Social Security. If you plan on being retired at age 62, then you
should definitely take it at age 62. There are no benefits to waiting (because actuaries ensure the same
amount of money will be paid to you both ways if you make to age 100) and there are good benefits by
taking it ASAP. Namely, you may pass away soon after you turn 62, in which case you'll never collected
on your benefits.
There are other minor things that can be done, but these are the top things people do in the real world.
Please contact us if you have any questions.

John & Mary Sample
Financial Independence Analysis
Illustration for Current Plan (before recommendations)
June 6, 2008
Income
Annual Current Retirement Goal
Income Goals* Age Age Inflation
John: 45 60 3.0%
Combined Goal: $58,287 Life Expectancy: 83
Mary: 40 60 Overall Tax Rate: 20% **

Life Expectancy: 83 SS Inclusion Rate: 85%***
* In today's dollars. Net, spendable dollars.

** If tax rate is 0%, income goals are gross (before taxes). If a tax rate is used, goals are net spendable dollars or after-tax goals.
*** The Social Security inclusion rate is how much of your SS is assumed to be includable in your taxable income.
Average Percentage of Annual Income Goal Being Met: 90.9%
Additional Funding Needed to Reach Your Income Goals*
Additional Additional Monthly Assumed

Lump Sum Payments Needed Rate of Return
Needed -or- until John's Year on Additional
Today of Retirement Funding
$67,700 $430 5.0%
Probability of Success Given All Assumptions: 6.6%

Minimum Average Rate of Return Needed on All Assets to Succeed: 9.2%
* Additional funding means funding in addition to the assets that are entered into this analysis. It also assumes
available capital needed to produce retirement income is not depleted until John's age of 100.
This report is designed to show a rough ballpark idea of your future financial situation, and is intended only
as a basis for discussion with your professional advisors. The estimates shown in this report are based
on many assumptions that may or may not occur. Both principal value and investment returns will
fluctuate over time. No warranty as to correctness is given and no liability is accepted for any
error, or omission, or any loss which may arise from relying on this data.

John & Mary Sample
Illustration for Proposed Plan
June 6, 2008
Income
Annual Current Retirement Goal
Income Goals* Age Age Inflation
John: 45 59 3.0%
Combined Goal: $89,179 Life Expectancy: 83
Mary: 40 59 Overall Tax Rate: 21% **

Life Expectancy: 83 SS Inclusion Rate: 85%***
* In today's dollars. Net, spendable dollars.

** If tax rate is 0%, income goals are gross (before taxes). If a tax rate is used, goals are net spendable dollars or after-tax goals.
*** The Social Security inclusion rate is how much of your SS is assumed to be includable in your taxable income.
Average Percentage of Annual Income Goal Being Met: 100.0%
Additional Funding Needed to Reach Your Income Goals*
Additional Additional Monthly Assumed

Lump Sum Payments Needed Rate of Return
Needed -or- until John's Year on Additional
Today of Retirement Funding
$0 $0 5.0%
Probability of Success Given All Assumptions: 47.7%

Minimum Average Rate of Return Needed on All Assets to Succeed: 9.5%
* Additional funding means funding in addition to the assets that are entered into this analysis. It also assumes
available capital needed to produce retirement income is not depleted until John's age of 100.
This report is designed to show a rough ballpark idea of your future financial situation, and is intended only
as a basis for discussion with your professional advisors. The estimates shown in this report are based
on many assumptions that may or may not occur. Both principal value and investment returns will
fluctuate over time. No warranty as to correctness is given and no liability is accepted for any
error, or omission, or any loss which may arise from relying on this data.

Current Income Producing Capital vs. Inflated Annual Income Goals
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
45 48 51 54 57 60 63 66 69 72 75 78 81 84 87 90 93 96 99
Age of First Client to Retire
Combined Annual Income Goal End of Year Balance of Capital

Proposed Income Producing Capital vs. Inflated Annual Income Goals
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
45 48 51 54 57 60 63 66 69 72 75 78 81 84 87 90 93 96 99
Age of First Client to Retire
Combined Annual Income Goal End of Year Balance of Capital

Financial Independence Analysis: Asset Summary*
Current (or Annual Age when Age when Inflation Rate Age when Total % Income
Asset present) Additions Additions Additions on Annual Payout Payout Return Subject
Name Asset Value to Asset Begins Ends Contributions Begins Method Assumed to Taxes
John's 401(k) $35,000 $12,000 45 59 1.0% 60 Flexible Asset** 6.0% 100.0%

Mary's 403(b) $15,000 $6,000 40 59 1.0% 60 Flexible Asset** 6.0% 100.0%
John's IRA $25,000 $0 n/a n/a n/a 60 Flexible Asset** 7.0% 100.0%
Mary's IRA $15,000 $0 n/a n/a n/a 60 Flexible Asset** 7.0% 100.0%
John's Merrill $20,000 $0 n/a n/a n/a 60 Flexible Asset** 7.0% 50.0%
Mary's American Funds $12,000 $0 n/a n/a n/a 60 Flexible Asset** 7.0% 50.0%
JP Morgan $15,000 $0 n/a n/a n/a 60 Flexible Asset** 7.0% 50.0%
Total: $137,000 $18,000

Notes: If an asset above has $0 in current value, and $0 in annual additions, please refer to the separately printed asset page.
** A "Flexible Asset" is an asset that does not have a structured method of paying out income. Instead, cash is withdrawn,
or added back to this asset as needed to fund income withdrawals in that year.
Non-Asset Income Summary*

Assumed Tax
Source of Annual Pretax Beginning Annual Inclusion
Income Income Age Inflation Rate
John's Social Security $12,000 62 2.0% 85%
Mary's Social Security $18,000 62 2.0%
* All dollar amounts are in today's dollars (meaning no adjustment for inflation was made on this page).

Financial Independence Analysis: Asset Summary*
Current (or Annual Age when Age when Inflation Rate Age when Total % Income
Asset present) Additions Additions Additions on Annual Payout Payout Return Subject
Name Asset Value to Asset Begins Ends Contributions Begins Method Assumed to Taxes
John's 401(k) $35,000 $12,000 45 58 1.0% 59 Flexible Asset** 8.0% 100.0%

Mary's 403(b) $15,000 $6,000 40 58 1.0% 59 Flexible Asset** 8.0% 100.0%
John's IRA $25,000 $0 n/a n/a n/a 59 Flexible Asset** 9.0% 100.0%
Mary's IRA $15,000 $0 n/a n/a n/a 59 Flexible Asset** 9.0% 100.0%
John's Schwab $20,000 $0 n/a n/a n/a 59 Flexible Asset** 9.0% 50.0%
Mary's Schwab $12,000 $0 n/a n/a n/a 59 Flexible Asset** 9.0% 50.0%
Schwab $15,000 $0 n/a n/a n/a 59 Flexible Asset** 9.0% 50.0%
Total: $137,000 $18,000

Notes: If an asset above has $0 in current value, and $0 in annual additions, please refer to the separately printed asset page.
** A "Flexible Asset" is an asset that does not have a structured method of paying out income. Instead, cash is withdrawn,
or added back to this asset as needed to fund income withdrawals in that year.
Non-Asset Income Summary*

Assumed Tax
Source of Annual Pretax Beginning Annual Inclusion
Income Income Age Inflation Rate
John's Social Security $12,000 62 1.0% 85%
Mary's Social Security $18,000 62 1.0%
* All dollar amounts are in today's dollars (meaning no adjustment for inflation was made on this page).

Annual Summary Numbers
Combined Average Percent Present Value

Combined Percent of Present Value
Combined Combined Combined Annual End of Year Weighted Change in of Additional
John's Mary's Tax Annual Annual of Additional
Year # Year Annual Annual Social Annual Non- Income Balance of Rate of Asset Balance Capital
Age Age Rate Asset Income Goal Capital
Income Goal Security asset Income Surplus or Capital Return on from Previous Needed at
Income Being Met Needed Now
Deficit (-) Assets Year Retirement
45 40 20.0% 1 2008 $0 $0 $0 $0 $0 N/A $165,100 6.6% n/a $0 $0

46 41 20.0% 2 2009 $0 $0 $0 $0 $0 N/A $197,300 6.5% 19.5% $0 $0
47 42 20.0% 3 2010 $0 $0 $0 $0 $0 N/A $231,500 6.5% 17.3% $0 $0
48 43 20.0% 4 2011 $0 $0 $0 $0 $0 N/A $271,000 6.4% 17.1% $0 $0
49 44 20.0% 5 2012 $0 $0 $0 $0 $0 N/A $294,800 6.4% 8.8% $0 $0
50 45 20.0% 6 2013 $0 $0 $0 $0 $0 N/A $329,400 6.4% 11.7% $0 $0
51 46 20.0% 7 2014 $0 $0 $0 $0 $0 N/A $361,000 6.4% 9.6% $0 $0
52 47 20.0% 8 2015 $0 $0 $0 $0 $0 N/A $412,600 6.3% 14.3% $0 $0
53 48 20.0% 9 2016 $0 $0 $0 $0 $0 N/A $462,400 6.3% 12.1% $0 $0
54 49 20.0% 10 2017 $0 $0 $0 $0 $0 N/A $516,500 6.3% 11.7% $0 $0
55 50 20.0% 11 2018 $0 $0 $0 $0 $0 N/A $567,700 6.3% 9.9% $0 $0
56 51 20.0% 12 2019 $0 $0 $0 $0 $0 N/A $615,100 6.3% 8.3% $0 $0
57 52 20.0% 13 2020 $0 $0 $0 $0 $0 N/A $665,600 6.3% 8.2% $0 $0
58 53 20.0% 14 2021 $0 $0 $0 $0 $0 N/A $719,500 6.3% 8.1% $0 $0
59 54 20.0% 15 2022 $0 $0 $0 $0 $0 N/A $776,800 6.3% 8.0% $0 $0
60 55 20.0% 16 2023 $101,700 $0 $35,500 $66,100 $0 99.9% $746,700 6.3% -3.9% $0 $0
61 56 20.0% 17 2024 $104,200 $0 $36,600 $67,600 $0 100.0% $712,900 6.3% -4.5% $0 $0
62 57 20.0% 18 2025 $97,000 $16,800 $38,700 $41,400 $0 100.0% $711,200 6.3% -0.2% $0 $0
63 58 20.0% 19 2026 $99,700 $17,100 $39,900 $42,700 $0 100.0% $707,800 6.3% -0.5% $0 $0
64 59 20.0% 20 2027 $101,000 $17,400 $41,100 $42,400 $0 100.0% $704,700 6.3% -0.4% $0 $0
65 60 20.0% 21 2028 $79,900 $17,800 $16,600 $45,400 $0 100.0% $689,500 6.3% -2.2% $0 $0
66 61 20.0% 22 2029 $82,100 $18,100 $15,500 $48,300 $0 99.8% $669,600 6.3% -2.9% $0 $0
67 62 20.0% 23 2030 $87,200 $46,300 $16,200 $24,500 $0 99.8% $679,500 6.3% 1.5% $0 $0
68 63 20.0% 24 2031 $89,700 $47,300 $16,400 $25,900 $0 100.0% $688,300 6.3% 1.3% $0 $0
69 64 20.0% 25 2032 $92,300 $48,200 $16,600 $27,400 $0 100.0% $695,700 6.3% 1.1% $0 $0
70 65 20.0% 26 2033 $95,100 $49,200 $17,800 $28,000 $0 100.0% $702,800 6.3% 1.0% $0 $0
71 66 20.0% 27 2034 $97,900 $50,200 $18,100 $29,600 $0 100.0% $708,300 6.3% 0.8% $0 $0
72 67 20.0% 28 2035 $100,800 $51,200 $18,300 $31,200 $0 99.9% $712,100 6.3% 0.5% $0 $0
73 68 20.0% 29 2036 $103,700 $52,200 $18,600 $32,900 $0 100.0% $714,000 6.3% 0.3% $0 $0
74 69 20.0% 30 2037 $106,700 $53,200 $18,800 $34,600 $0 100.0% $713,800 6.3% 0.0% $0 $0
75 70 20.0% 31 2038 $109,800 $54,300 $18,400 $37,000 $0 100.0% $710,500 6.3% -0.5% $0 $0
76 71 20.0% 32 2039 $113,000 $55,400 $18,700 $38,800 $0 100.0% $704,600 6.3% -0.8% $0 $0
77 72 20.0% 33 2040 $116,300 $56,500 $18,900 $40,800 $0 99.9% $695,800 6.3% -1.2% $0 $0

Annual Summary Numbers, continued

Combined Combined Percent of Present Value
Combined Combined Annual End of Year Weighted Change in of Additional
John's Mary's Tax Annual Annual Annual of Additional
Year # Year Annual Annual Non- Income Balance of Rate of Asset Balance Capital
Age Age Rate Social Asset Income Goal Capital
Income Goal asset Income Surplus or Capital Return on from Previous Needed at
Security Income Being Met Needed Now
78 73 20.0% 34 2041 $119,700 $57,600 $19,200 $42,800 $0 99.9% $683,900 6.3% -1.7% $0 $0
79 74 20.0% 35 2042 $123,200 $58,800 $19,500 $44,800 $0 100.0% $668,500 6.3% -2.3% $0 $0
80 75 20.0% 36 2043 $126,800 $59,900 $19,800 $47,000 $0 99.9% $649,500 6.3% -2.8% $0 $0
81 76 20.0% 37 2044 $130,500 $61,100 $20,100 $49,200 $0 100.0% $626,400 6.3% -3.6% $0 $0
82 77 20.0% 38 2045 $134,400 $62,400 $20,400 $51,500 $0 99.9% $598,800 6.3% -4.4% $0 $0
83 78 20.0% 39 2046 $138,300 $63,600 $20,700 $53,900 $0 100.0% $566,500 6.3% -5.4% $0 $0
84 79 20.0% 40 2047 $142,400 $64,900 $21,000 $56,400 $0 100.0% $529,000 6.3% -6.6% $0 $0
85 80 20.0% 41 2048 $146,500 $66,200 $21,300 $58,900 $0 100.0% $485,800 6.3% -8.2% $0 $0
86 81 20.0% 42 2049 $150,800 $67,500 $21,700 $61,500 $0 100.0% $436,500 6.3% -10.1% $0 $0
87 82 20.0% 43 2050 $155,300 $68,900 $22,000 $64,300 $0 100.0% $380,600 6.3% -12.8% $0 $0
88 83 20.0% 44 2051 $159,800 $70,200 $22,400 $67,100 $0 100.0% $317,600 6.4% -16.6% $0 $0
89 84 20.0% 45 2052 $164,500 $71,700 $22,800 $70,000 $0 100.0% $246,800 6.4% -22.3% $0 $0
90 85 20.0% 46 2053 $169,400 $73,100 $23,200 $73,000 $0 100.0% $167,800 6.4% -32.0% $0 $0
91 86 20.0% 47 2054 $174,400 $74,500 $23,600 $76,200 $0 100.0% $79,800 6.4% -52.4% $0 $0
92 87 20.0% 48 2055 $179,500 $76,000 $24,000 $79,400 $0 100.0% $0 n/a -100.0% $0 $0
93 88 20.0% 49 2056 $184,800 $77,600 $24,400 $0 -$82,700 55.2% $0 n/a n/a $20,100 $7,500
94 89 20.0% 50 2057 $190,200 $79,100 $24,800 $0 -$86,200 54.6% $0 n/a n/a $40,000 $15,000
95 90 20.0% 51 2058 $195,800 $80,700 $25,300 $0 -$89,700 54.1% $0 n/a n/a $59,800 $22,500
96 91 20.0% 52 2059 $201,600 $82,300 $25,700 $0 -$93,400 53.6% $0 n/a n/a $79,400 $29,900
97 92 20.0% 53 2060 $207,500 $84,000 $26,200 $0 -$97,300 53.1% $0 n/a n/a $98,900 $37,200
98 93 20.0% 54 2061 $213,600 $85,600 $26,700 $0 -$101,200 52.6% $0 n/a n/a $118,100 $44,500
99 94 20.0% 55 2062 $219,900 $87,400 $27,200 $0 -$105,300 52.1% $0 n/a n/a $137,200 $51,700
100 95 20.0% 56 2063 $226,400 $89,100 $27,700 $0 -$109,500 51.6% $0 n/a n/a $156,200 $58,800

Annual Summary Numbers

Percent of Present Value
Combined Combined Combined Combined Annual End of Year Weighted Change in of Additional
John's Mary's Tax Annual of Additional
Year # Year Annual Annual Social Annual Non- Annual Asset Income Balance of Rate of Asset Balance Capital
Age Age Rate Income Goal Capital
Income Goal Security asset Income Income Surplus or Capital Return on from Previous Needed at
Being Met Needed Now
45 40 21.0% 1 2008 $0 $0 $0 $0 $0 N/A $168,200 8.6% n/a $0 $0

46 41 21.0% 2 2009 $0 $0 $0 $0 $0 N/A $204,400 8.5% 21.5% $0 $0
47 42 21.0% 3 2010 $0 $0 $0 $0 $0 N/A $243,500 8.5% 19.1% $0 $0
48 43 21.0% 4 2011 $0 $0 $0 $0 $0 N/A $289,100 8.4% 18.7% $0 $0
49 44 21.0% 5 2012 $0 $0 $0 $0 $0 N/A $320,000 8.4% 10.7% $0 $0
50 45 21.0% 6 2013 $0 $0 $0 $0 $0 N/A $362,900 8.4% 13.4% $0 $0
51 46 21.0% 7 2014 $0 $0 $0 $0 $0 N/A $404,200 8.4% 11.4% $0 $0
52 47 21.0% 8 2015 $0 $0 $0 $0 $0 N/A $467,200 8.4% 15.6% $0 $0
53 48 21.0% 9 2016 $0 $0 $0 $0 $0 N/A $533,900 8.3% 14.3% $0 $0
54 49 21.0% 10 2017 $0 $0 $0 $0 $0 N/A $607,500 8.3% 13.8% $0 $0
55 50 21.0% 11 2018 $0 $0 $0 $0 $0 N/A $685,400 8.3% 12.8% $0 $0
56 51 21.0% 12 2019 $0 $0 $0 $0 $0 N/A $767,500 8.3% 12.0% $0 $0
57 52 21.0% 13 2020 $0 $0 $0 $0 $0 N/A $857,600 8.3% 11.7% $0 $0
58 53 21.0% 14 2021 $0 $0 $0 $0 $0 N/A $956,200 8.3% 11.5% $0 $0
59 54 21.0% 15 2022 $138,900 $0 $65,000 $73,900 $0 100.0% $950,200 8.3% -0.6% $0 $0
60 55 21.0% 16 2023 $106,000 $0 $35,500 $70,400 $0 99.9% $942,300 8.3% -0.8% $0 $0
61 56 21.0% 17 2024 $108,600 $0 $36,600 $72,000 $0 100.0% $931,700 8.3% -1.1% $0 $0
62 57 21.0% 18 2025 $101,200 $14,200 $38,700 $48,200 $0 99.9% $952,200 8.3% 2.2% $0 $0
63 58 21.0% 19 2026 $104,100 $14,300 $39,900 $49,800 $0 100.0% $972,500 8.3% 2.1% $0 $0
64 59 21.0% 20 2027 $91,700 $14,400 $6,300 $70,800 $0 100.0% $958,100 8.3% -1.5% $0 $0
65 60 21.0% 21 2028 $83,300 $14,600 $16,600 $52,100 $0 100.0% $967,700 8.3% 1.0% $0 $0
66 61 21.0% 22 2029 $85,600 $14,700 $15,500 $55,300 $0 100.0% $973,900 8.3% 0.6% $0 $0
67 62 21.0% 23 2030 $90,300 $37,300 $16,200 $36,700 $0 100.0% $1,005,500 8.3% 3.2% $0 $0
68 63 21.0% 24 2031 $92,900 $37,700 $16,400 $38,800 $0 100.0% $1,037,200 8.3% 3.2% $0 $0
69 64 21.0% 25 2032 $95,600 $38,000 $16,600 $40,900 $0 100.0% $1,068,600 8.3% 3.0% $0 $0
70 65 21.0% 26 2033 $98,500 $38,400 $17,800 $42,100 $0 100.0% $1,101,000 8.3% 3.0% $0 $0
71 66 21.0% 27 2034 $101,300 $38,800 $18,100 $44,400 $0 100.0% $1,133,100 8.3% 2.9% $0 $0
72 67 21.0% 28 2035 $104,300 $39,200 $18,300 $46,700 $0 99.9% $1,164,900 8.3% 2.8% $0 $0
73 68 21.0% 29 2036 $107,300 $39,600 $18,600 $49,000 $0 100.0% $1,196,200 8.3% 2.7% $0 $0
74 69 21.0% 30 2037 $110,400 $40,000 $18,800 $51,500 $0 100.0% $1,226,800 8.3% 2.6% $0 $0
75 70 21.0% 31 2038 $113,500 $40,400 $18,400 $54,600 $0 100.0% $1,255,900 8.3% 2.4% $0 $0
76 71 21.0% 32 2039 $116,800 $40,800 $18,700 $57,300 $0 100.0% $1,283,900 8.4% 2.2% $0 $0
77 72 21.0% 33 2040 $120,200 $41,200 $18,900 $60,000 $0 100.0% $1,310,700 8.4% 2.1% $0 $0

Annual Summary Numbers, continued

Percent of Present Value
Combined Combined Combined Combined Annual End of Year Weighted Change in of Additional
John's Mary's Tax Annual of Additional
Year # Year Annual Annual Social Annual Non- Annual Asset Income Balance of Rate of Asset Balance Capital
Age Age Rate Income Goal Capital
Income Goal Security asset Income Income Surplus or Capital Return on from Previous Needed at
Being Met Needed Now
78 73 21.0% 34 2041 $123,700 $41,600 $19,200 $62,800 $0 99.9% $1,335,900 8.4% 1.9% $0 $0
79 74 21.0% 35 2042 $127,300 $42,000 $19,500 $65,700 $0 99.9% $1,359,500 8.4% 1.8% $0 $0
80 75 21.0% 36 2043 $131,000 $42,400 $19,800 $68,700 $0 99.9% $1,381,000 8.4% 1.6% $0 $0
81 76 21.0% 37 2044 $134,900 $42,900 $20,100 $71,800 $0 99.9% $1,400,300 8.4% 1.4% $0 $0
82 77 21.0% 38 2045 $138,800 $43,300 $20,400 $75,000 $0 99.9% $1,417,000 8.4% 1.2% $0 $0
83 78 21.0% 39 2046 $142,900 $43,700 $20,700 $78,300 $0 99.9% $1,430,700 8.4% 1.0% $0 $0
84 79 21.0% 40 2047 $147,000 $44,200 $21,000 $81,700 $0 99.9% $1,441,100 8.4% 0.7% $0 $0
85 80 21.0% 41 2048 $151,300 $44,600 $21,300 $85,300 $0 100.0% $1,447,700 8.4% 0.5% $0 $0
86 81 21.0% 42 2049 $155,700 $45,100 $21,700 $88,900 $0 100.0% $1,450,100 8.4% 0.2% $0 $0
87 82 21.0% 43 2050 $160,300 $45,500 $22,000 $92,700 $0 100.0% $1,447,800 8.4% -0.2% $0 $0
88 83 21.0% 44 2051 $165,000 $46,000 $22,400 $96,500 $0 100.0% $1,440,200 8.4% -0.5% $0 $0
89 84 21.0% 45 2052 $169,800 $46,400 $22,800 $100,500 $0 100.0% $1,426,700 8.4% -0.9% $0 $0
90 85 21.0% 46 2053 $174,800 $46,900 $23,200 $104,700 $0 100.0% $1,406,700 8.4% -1.4% $0 $0
91 86 21.0% 47 2054 $179,900 $47,400 $23,600 $108,900 $0 100.0% $1,379,400 8.4% -1.9% $0 $0
92 87 21.0% 48 2055 $185,200 $47,800 $24,000 $113,300 $0 100.0% $1,344,100 8.4% -2.6% $0 $0
93 88 21.0% 49 2056 $190,600 $48,300 $24,400 $117,800 $0 100.0% $1,299,900 8.4% -3.3% $0 $0
94 89 21.0% 50 2057 $196,200 $48,800 $24,800 $122,500 $0 100.0% $1,245,900 8.4% -4.2% $0 $0
95 90 21.0% 51 2058 $202,000 $49,300 $25,300 $127,400 $0 100.0% $1,181,000 8.4% -5.2% $0 $0
96 91 21.0% 52 2059 $207,900 $49,800 $25,700 $132,300 $0 100.0% $1,104,200 8.4% -6.5% $0 $0
97 92 21.0% 53 2060 $214,100 $50,300 $26,200 $137,500 $0 100.0% $1,014,200 8.4% -8.2% $0 $0
98 93 21.0% 54 2061 $220,300 $50,800 $26,700 $142,800 $0 100.0% $909,700 8.4% -10.3% $0 $0
99 94 21.0% 55 2062 $226,800 $51,300 $27,200 $148,300 $0 100.0% $789,300 8.4% -13.2% $0 $0
100 95 21.0% 56 2063 $233,500 $51,800 $27,700 $153,900 $0 100.0% $651,600 8.5% -17.4% $0 $0

Current Annual Retirement Surplus or Deficit Proposed Annual Retirement Surplus or Deficit
$1
$0
$1
-$20,000 $1
$1
-$40,000
$1
-$60,000 $1
$0
-$80,000 $0
$0
-$100,000
$0
-$120,000 $0
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
$250,000
Current Annual Income Goals $250,000 Proposed Annual Income Goals
$200,000 $200,000
$150,000 $150,000
$100,000 $100,000
$50,000 $50,000
$0 $0
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
John's Total Inflated Income Goal Mary's Total Inflated Income Goal John's Total Inflated Income Goal Mary's Total Inflated Income Goal
Combined Income Goal Mary's Total Inflated Income Goal
Copyright 1997 - 2008 Toolsformoney.com, All Rights Reserved

Current Total Annual Taxes Paid Proposed Total Annual Taxes Paid
$60,000
$60,000
$50,000 $50,000
$40,000 $40,000
$30,000 $30,000
$20,000 $20,000
$10,000 $10,000
$0 $0
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
Current Annual Average (Effective) Global Tax Rates Proposed Annual Average (Effective) Global Tax Rates
30.0% 30.0%
20.0% 20.0%
10.0% 10.0%
0.0% 0.0%
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062

Current Inflation-Adjusted Purchasing Power of Combined Annual Proposed Inflation-Adjusted Purchasing Power of Combined Annual
Income Goals (Ignores manual overrides) Income Goals (Ignores manual overrides)
$70,000 $120,000
$60,000 $100,000
$50,000
$80,000
$40,000
$60,000
$30,000
$40,000
$20,000
$20,000
$10,000
$0 $0
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
Income Goal Purchasing Power @ 3% Income Goal Purchasing Power @ 4% Income Goal Purchasing Power @ 3% Income Goal Purchasing Power @ 4%
Income Goal Purchasing Power @ 5% Income Goal Purchasing Power @ 5%
$60,000
Current Annual Non-asset Incomes Proposed Annual Non-asset Incomes
$70,000
$50,000 $60,000
$50,000
$40,000
$40,000
$30,000
$30,000
$20,000
$20,000
$10,000 $10,000
$0 $0
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
Annual Non-asset Non-SS Income John's Annual Social Security Annual Non-asset Non-SS Income John's Annual Social Security
Mary's Annual Social Security Mary's Annual Social Security

$60,000 Current All Asset Incomes $60,000
Proposed All Asset Incomes
$50,000 $50,000
$40,000 $40,000
$30,000 $30,000
$20,000 $20,000
$10,000 $10,000
$0 $0
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
Oldest's Asset #1: Non-Flexible Oldest's Asset #2: Non-Flexible Oldest''s Asset #3: Non-Flexible Oldest's Asset #1: Non-Flexible Oldest's Asset #2: Non-Flexible Oldest''s Asset #3: Non-Flexible
Oldest's Asset #4: Non-Flexible Oldest's Asset #5: Non-Flexible Youngest's Asset #1: Non-Flexible Oldest's Asset #4: Non-Flexible Oldest's Asset #5: Non-Flexible Youngest's Asset #1: Non-Flexible
Youngest's Asset #2: Non-Flexible Youngest''s Asset #3: Non-Flexible Youngest's Asset #4: Non-Flexible Youngest's Asset #2: Non-Flexible Youngest''s Asset #3: Non-Flexible Youngest's Asset #4: Non-Flexible
Youngest''s Asset #5: Non-Flexible Oldest's Asset #1: Flexible Oldest's Asset #2: Flexible Youngest''s Asset #5: Non-Flexible Oldest's Asset #1: Flexible Oldest's Asset #2: Flexible
Oldest''s Asset #3: Flexible Oldest's Asset #4: Flexible Oldest's Asset #5: Flexible Oldest''s Asset #3: Flexible Oldest's Asset #4: Flexible Oldest's Asset #5: Flexible
Youngest's Asset #1: Flexible Youngest's Asset #2: Flexible Youngest''s Asset #3: Flexible Youngest's Asset #1: Flexible Youngest's Asset #2: Flexible Youngest''s Asset #3: Flexible
Youngest's Asset #4: Flexible Youngest''s Asset #5: Flexible Youngest's Asset #4: Flexible Youngest''s Asset #5: Flexible
Current All Annual Incomes vs. Income Goal Proposed All Annual Incomes vs. Income Goal
$250,000 $250,000
$200,000 $200,000
$150,000 $150,000
$100,000 $100,000
$50,000 $50,000
$0 $0
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
Combined Income Goal All Asset Incomes All Non-Asset Incomes Combined Income Goal All Non-Asset Incomes All Asset Incomes

$250,000
Current Incomes vs. Income Goal Proposed Incomes vs. Income Goal
$250,000
$200,000 $200,000
$150,000 $150,000
$100,000 $100,000
$50,000 $50,000
$0 $0
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
All Incomes Combined Income Goal All Incomes Combined Income Goal
Current Percent of Income Goal Being Met Proposed Percent of Income Goal Being Met
120.0% 120.0%
100.0% 100.0%
80.0% 80.0%
60.0% 60.0%
40.0% 40.0%
20.0% 20.0%
0.0% 0.0%
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
Current Oldest's Asset #1: Annual Market Value & Income Proposed Oldest's Asset #1: Annual Market Value & Income
$400,000 $450,000
$350,000 $400,000
$300,000 $350,000
$300,000
$250,000
$250,000
$200,000
$200,000
$150,000
$150,000
$100,000
$100,000
$50,000 $50,000
$0 $0
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
Income Stream Oldest's Asset #1: Flexible Asset** Market Value Income Stream Oldest's Asset #1: Flexible Asset** Market Value
$70,000 $120,000
$60,000
$100,000
$50,000
$80,000
$40,000
$60,000
$30,000
$40,000
$20,000
$10,000 $20,000
$0 $0
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062

$50,000 $120,000
$45,000
$100,000
$40,000
$35,000
$80,000
$30,000
$25,000 $60,000
$20,000
$40,000
$15,000
$10,000
$20,000
$5,000
$0 $0
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
$40,000 $90,000
$35,000 $80,000
$30,000 $70,000
$60,000
$25,000
$50,000
$20,000
$40,000
$15,000
$30,000
$10,000
$20,000
$5,000
$10,000
$0 $0
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062
2008
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
2053
2056
2059
2062

Current Life Insurance Needs Analysis
John & Mary Sample
Lump Sum Needed Today to Pay Off Mortgage(s): $150,000

Lump Sum Needed for Cash Reserve After Everything Else is Paid For: $10,000
Lump Sum Immediate Cash Needs: $5,000
Lump Sum Needed for Burial/Funeral/Medical and Other Final Expenses: $25,000
Lump Sum Needed to Pay Off All Debts: $20,000
Lump Sum Needed to Cover Estate Taxes: $0
Lump Sum Amounts to Give Away to Others/Bequeaths/Charity: $0
Lump Sum Amount to Fund Runt's College & Other Expenses: $50,000
Lump Sum Amount to Fund Munchkin's College & Other Expenses: $45,000
Lump Sum Amount to Fund Rugrat's College & Other Expenses: $40,000
Total Gross Lump Sum Needed: $345,000

Minus Lump Sums Currently Available: $200,225
Net Lump Sum Still Needed: $144,775
Lump Sum Needed Today to Replace Future & John's Income: $639,543
Total Amount of Life Insurance Needed Today to Fund All Needs: $784,318

Gross Needs to Fund With Life Insurance Needs vs. Resources
$700,000
$1,200,000
$600,000
$984,543
$1,000,000
$500,000
$784,318
$800,000
$400,000
$639,543
$300,000 $600,000
$200,000
$400,000 $345,000
$100,000
$200,225
$200,000
$0
Replace Income
Lump Sum Cash
Munchkin's College
Final Expenses
Runt's College
Rugrat's College
Cash Reserves
Pay Off Debts

Mortgage(s)
$0
Total Gross Capital Lump Sum Needs Income Replacement Resources Available Net Life Insurance
Needed (Without income Needed
replacement)
Total Gross Capital Needed
$984,543
Lump Sum Needs $345,000
(Without income replacement)
Lump Sum Needs Income Replacement Lump Sum Needed Today to Pay Off
$639,543
Mortgage(s):
Resources Available
Resources Available
$200,225 $80,000
$400,000 Net Life Insurance$784,318
Needed
Lump Sum Needed for Cash Reserve
After Everything Else is Paid For: $70,000
$350,000
Lump Sum Immediate Cash Needs: $60,000
$300,000
$50,000
Lump Sum Needed for
$250,000 Burial/Funeral/Medical and Other Final $40,000
Expenses:
Lump Sum Needed to Pay Off All
$200,000 $30,000
Debts:
Lump Sum Needed to Cover Estate $20,000

$150,000 Taxes:
$10,000
$100,000 Lump Sum Amounts to Give Away to
Others/Bequeaths/Charity: $0
Employer Life
Social Security Lump
Pension Lump Sum
Personal Life Insurance
Business Life Insurance

IRA/Other Retirement
Non-Qualified
Liquidated Business
Other Liquid Assets

Investments
Insurance
$50,000 Lump Sum Amount to Fund Runt's
Sum ($225)
Payouts
Interests
Policies
College & Other Expenses:
Plans
$0 Lump Sum Amount to Fund Munchkin's
Cumulative College & Other Expenses:

Private College Funding Planner
For John & Mary Sample
Rugrat's Current Age: 8
Munchkin's Current Age: 9
Joe's Current Age: 11
0
0
Rugrat Enters College at Age: 18
Munchkin Enters College at Age: 18
Joe Enters College at Age: 18
0
0
Number of Years Rugrat Will Attend College: 5
Number of Years Munchkin Will Attend College: 6
Number of Years Joe Will Attend College: 7
0
0
Amount Paid By Amount Paid Out
Savings of Pocket
Total Current Annual Costs (Including breaks): $148,908 $111,681 $37,227
Present Value of College Education Without Inflation: $894,240 $670,680 $223,560
Inflated Present Value of College Education (529 Plan): $1,286,642 $964,982 $321,661
Inflated Present Value of College Education with Taxes: $1,543,971 $1,157,978 $385,993
Initial Lump Sum Investment (amount saved now): $60,000
Total Combined Monthly Contributions: $3,250
Lump Sum Needed Now To Fund Deficits (Non-529 Plan): $616,218
Lump Sum Needed Now To Fund Deficits (529 Plan): $492,974
- or -
Monthly Payments Needed to Fund Deficits (Non-529 Plan): $7,883
Monthly Payments Needed to Fund Deficits (529 Plan): $6,306
Average Probability of Success for All Students: 2.2%
Minimum Average Rate of Return Needed: 9.5%
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
Additional Capital Needed (Funding shortfall) End of Year Investment Account Balance
Contributions to Investment Fund Withdrawals for All Expenses & Taxes
Taxes Paid on Withdrawals

End Of Year Investment Fund Balances
$600,000
$400,000
$200,000
$0
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
-$200,000
-$400,000
-$600,000
-$800,000
-$1,000,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$1,157,978
$800,000
$600,000
$400,000
$200,000
$111,681
$37,227 $273,909
$0
Total Current Annual Costs (Including breaks) Inflated Present Value of College Education
with Taxes
Amount Kids Pay Amount John & Mary Sample Pays

$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
Bathroom/Kitchen/Miscellaneous Household Supplies
Books
Utilities: Cable/Satellite
TV/Electricity/Gas/Phone/Internet
Cell Phones / Pagers
Cigarettes / Alcohol / Coffee / Lottery / Gambling
Health Care Insurance and Expenses
Entertainment/Parties/Vacations/Trips/Games/Outings
Haircuts/Maintenance/Female Items (Panty
Hose/Tampons)
Food
Hobbies / Home Office / Computers / Software
Homeowner's / Renters Insurance

dollars)
Miscellaneous Monthly Expenses Here
Newspaper / Magazine / Music / Club / Subscriptions
Parking
Loan Payments
Pet Expenses
Rent / Mortgage with Property Taxes
Stamps / Postage / PO Box / Envelopes / Packaging

Private School Monthly Expense Breakdown (In current
Income Taxes
Tuition / Fees
Vehicle Fuel / Loan / Insurance / License /
Registration
Vitamins/Herbs/Gym/Spa/Elective Health Expenses

$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
Annual Inflated College Expenses (Before kids pay their share) Expenses Kids Pay
Private School Income Need vs. Income Available

$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
Income Available Annual Cash Flow Deficits

Annual Private College Expenses
Year # Rugrat Munchkin Joe Annual Totals
2008 1 $0 $0 $0 $0 $0 $0
2009 2 $0 $0 $0 $0 $0 $0
2010 3 $0 $0 $0 $0 $0 $0
2011 4 $0 $0 $0 $0 $0 $0
2012 5 $0 $0 $0 $0 $0 $0
2013 6 $0 $0 $0 $0 $0 $0
2014 7 $0 $0 $0 $0 $0 $0
2015 8 $0 $0 $66,993 $0 $0 $66,993
2016 9 $0 $0 $71,040 $0 $0 $71,040
2017 10 $0 $76,496 $75,344 $0 $0 $151,841
2018 11 $78,830 $81,136 $79,924 $0 $0 $239,890
2019 12 $83,654 $86,072 $84,796 $0 $0 $254,522
2020 13 $88,788 $91,324 $89,980 $0 $0 $270,093
2021 14 $94,253 $96,912 $95,498 $0 $0 $286,663
2022 15 $100,070 $102,859 $0 $0 $0 $202,929
2023 16 $0 $0 $0 $0 $0 $0
2024 17 $0 $0 $0 $0 $0 $0
2025 18 $0 $0 $0 $0 $0 $0
2026 19 $0 $0 $0 $0 $0 $0
2027 20 $0 $0 $0 $0 $0 $0
2028 21 $0 $0 $0 $0 $0 $0
2029 22 $0 $0 $0 $0 $0 $0
2030 23 $0 $0 $0 $0 $0 $0
2031 24 $0 $0 $0 $0 $0 $0
2032 25 $0 $0 $0 $0 $0 $0
2033 26 $0 $0 $0 $0 $0 $0
2034 27 $0 $0 $0 $0 $0 $0
2035 28 $0 $0 $0 $0 $0 $0
2036 29 $0 $0 $0 $0 $0 $0
2037 30 $0 $0 $0 $0 $0 $0
Totals: $445,596 $534,799 $563,576 $0 $0 $1,543,971

Public College Funding Planner
For John & Mary Sample
Rugrat's Current Age: 8
Munchkin's Current Age: 9
Joe's Current Age: 11
0
0
Rugrat Enters College at Age: 18
Munchkin Enters College at Age: 18
Joe Enters College at Age: 18
0
0
Number of Years Rugrat Will Attend College: 5
Number of Years Munchkin Will Attend College: 6
Number of Years Joe Will Attend College: 7
0
0
Amount Paid By Amount Paid Out
Savings of Pocket
Total Current Annual Costs (Including breaks): $69,768 $52,326 $17,442
Present Value of College Education Without Inflation: $418,872 $314,154 $104,718
Inflated Present Value of College Education (529 Plan): $563,701 $422,776 $140,925
Inflated Present Value of College Education with Taxes: $676,442 $507,331 $169,110
Initial Lump Sum Investment (amount saved now): $60,000
Total Combined Monthly Contributions: $3,250
Lump Sum Needed Now To Fund Deficits (Non-529 Plan): $34,439
Lump Sum Needed Now To Fund Deficits (529 Plan): $27,551
- or -
Monthly Payments Needed to Fund Deficits (Non-529 Plan): $456
Monthly Payments Needed to Fund Deficits (529 Plan): $365
Average Probability of Success for All Students: 11.0%
Minimum Average Rate of Return Needed: 8.5%
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
Additional Capital Needed (Funding shortfall) End of Year Investment Account Balance
Contributions to Investment Fund Withdrawals for All Expenses & Taxes
Taxes Paid on Withdrawals

End Of Year Investment Fund Balance
$500,000
$400,000
$300,000
$200,000
$100,000
$0
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
-$100,000
$700,000
$600,000
$500,000
$400,000
$507,331
$300,000
$200,000
$100,000
$52,326
$17,442 $124,741
$0
Total Current Annual Costs (Including breaks) Inflated Present Value of College Education
with Taxes
Amount Kids Pay Amount John & Mary Sample Pays

$0
$500
$1,000
$1,500
$2,000
$2,500
Bathroom/Kitchen/Miscellaneous Household Supplies
Utilities: Cable/Satellite
TV/Electricity/Gas/Phone/Internet
Cigarettes / Alcohol / Coffee / Lottery / Gambling
Entertainment/Parties/Vacations/Trips/Games/Outings
Food
Homeowner's / Renters Insurance

dollars)
Newspaper / Magazine / Music / Club / Subscriptions
Loan Payments
Rent / Mortgage with Property Taxes

Public School Monthly Expense Breakdown (In current
Income Taxes
Vehicle Fuel / Loan / Insurance / License /

Registration

$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
Annual Inflated College Expenses (Before kids pay their share) Expenses Kids Pay
Public School Income Need vs. Income Available

$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
Income Available Annual Cash Flow Deficits

Annual Public College Expenses
Year # Rugrat Munchkin Joe Annual Totals
2008 1 $0 $0 $0 $0 $0 $0
2009 2 $0 $0 $0 $0 $0 $0
2010 3 $0 $0 $0 $0 $0 $0
2011 4 $0 $0 $0 $0 $0 $0
2012 5 $0 $0 $0 $0 $0 $0
2013 6 $0 $0 $0 $0 $0 $0
2014 7 $0 $0 $0 $0 $0 $0
2015 8 $0 $0 $30,288 $0 $0 $30,288
2016 9 $0 $0 $31,935 $0 $0 $31,935
2017 10 $0 $33,460 $33,678 $0 $0 $67,138
2018 11 $35,058 $35,291 $35,525 $0 $0 $105,874
2019 12 $36,982 $37,232 $37,482 $0 $0 $111,696
2020 13 $39,020 $39,288 $39,555 $0 $0 $117,864
2021 14 $41,181 $41,467 $41,753 $0 $0 $124,401
2022 15 $43,470 $43,776 $0 $0 $0 $87,247
2023 16 $0 $0 $0 $0 $0 $0
2024 17 $0 $0 $0 $0 $0 $0
2025 18 $0 $0 $0 $0 $0 $0
2026 19 $0 $0 $0 $0 $0 $0
2027 20 $0 $0 $0 $0 $0 $0
2028 21 $0 $0 $0 $0 $0 $0
2029 22 $0 $0 $0 $0 $0 $0
2030 23 $0 $0 $0 $0 $0 $0
2031 24 $0 $0 $0 $0 $0 $0
2032 25 $0 $0 $0 $0 $0 $0
2033 26 $0 $0 $0 $0 $0 $0
2034 27 $0 $0 $0 $0 $0 $0
2035 28 $0 $0 $0 $0 $0 $0
2036 29 $0 $0 $0 $0 $0 $0
2037 30 $0 $0 $0 $0 $0 $0
Totals: $195,711 $230,514 $250,217 $0 $0 $676,442

TO DO LIST: FINANCIAL PLAN IMPLEMENTATION
Here is a list of tasks the two of you have agreed to complete. Please write in the date completed in the last column as
progress is made.
Detailed sources and application of funds can be seen on the proposed section of the investment asset allocation report.
When the When the

Who Needs
Activity Activity
to Do the Needs to Description of the Activity was
Activity be Done Completed
Increase homeowners insurance to $500,000, auto liability to $100/300/50,
John Mary Both 9/1/07
and buy a $2M Umbrella liability policy.
John Mary Both

9/1/07 Increase payroll withholding exemptions to four each.
Update wills, death/funeral instructions, and trusts. Use the document
organizer provided.
Sell all individual stocks and let us create an optimized asset allocation
investment portfolio.
Reallocate current 401(k) investment options as shown in the asset allocation
report. Direct all future contributions into the new funds as we discussed.
Liquidate all bank CDs and Credit Union Savings accounts and let us create
an optimized asset allocation investment portfolio.
Open a rollover IRA with us via Pershing: Then close the Merrill Lynch
John Mary Both 11/1/07 account, Fidelity, and Vanguard accounts and transfer the money over to our
asset allocation account. Start by completing the forms titled "ACAT."
Sell the individual bonds and buy a bond mutual fund in your new personal
investment portfolio account with us.
Purchase $1,000 per month in additional disability insurance benefit through
your employer.
John Mary Both 9/1/07 Guardian insurance, by completing the form we gave you, and returning them
to our office. A bill will be sent in the mail after the premium is calculated.
John Mary Both 9/1/07 Guardian insurance, by completing the form we gave you, and returning them
to our office. A bill will be sent in the mail after the premium is calculated.
Complete the appraisal of your antiques, silver and jewelry so the appropriate
John Mary Both insurance can be added to your homeowner’s policy. The names, addresses
9/1/07
and phone numbers of three qualified appraisers are attached and marked
Appraisals.
Find time to test drive the Suburban to be sure she feels comfortable with the
size and handling of the vehicle before the order is placed.
Purchase an additional $325,000 of 5-year Level Term Life Insurance by
John Mary Both 9/1/07 completing the forms we gave you and returning them to our office. A bill
will be sent in the mail after the premium is calculated.
Increase monthly payments to the children's college funds by $500 per month
John Mary Both 12/1/07 each. We will set up a new account for each child once the paperwork is
returned with the first month's monthly contribution.
Use all cash flow surpluses to pay off all credit cards and student loans. When
John Mary Both paid off, direct surpluses to the money market fund of your personal
9/1/07
investment accounts until it reaches your desired personal emergency cash
reserve of $25,000

Thanks again for the opportunity to be of service!
As we talked about, we are compensated in two ways. If you feel our services have been of
value, then we’d really appreciate sharing some of the same ideas and strategies with your
friends, family, and coworkers,
We’ll let them know it’s just an introduction and not any kind of a recommendation. And of
course, our conversation will be strictly confidential, informative and free.
Name: Occupation: Approx Marital # of

ages: Status children
Phone: Spouse’s Occupation:
Please circle all that apply: Family Coworker Newlywed Friend New New
New to the area Recent promotion baby Home





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investment reports
Please see the asset allocation

reports on the demo, here:
http://www.toolsformoney.com/asset_allocation.xls
or on the other sample plan PDF

here:
http://www.toolsformoney.com/sample_plan2.pdf
The rental real estate report is on

the demo, here (and in the PDF
above):
http://www.toolsformoney.com/multiple_rental_calculator_demo.xls

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- CONFIDENTIAL REPORT -

Prepared Especially For:

John & Mary Sample

TOOLS FOR MONEY DOT COM

Section 1: Financial Plan Overview · Introduction and disclaimer

Section 4: Retirement Projections · Explanation of the retirement planning reports

Section 5: Investment Management · Explanation of the asset allocation reports

Section 7: College Planning · Children's college funding report

Section 8: Estate Planning · Estate planning document organizer

Section 9: Plans of Action · Sources and application of funds

 Copyright 1997 - 2008 Toolsformoney.com, All Rights Reserved

Supplementary information is also included to help clarify some issues.

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LEVEL TWO SERVICES

LEVEL THREE SERVICES

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LEVEL FOUR SERVICES

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- JOHN & MARY SAMPLE -

FINANCIAL PLANNING GOALS

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FINANCIAL PLANNING CONCERNS

FINANCIAL PLAN ASSUMPTIONS

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Change in Net Cost Benefit

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Current vs. Proposed Expenses

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OVERVIEW OF THE BUDGETING AND CASH FLOW REPORTS

These three sections display their monthly totals at the bottom.

Drilling Down Into the Details

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Budget Totals With Debt Expense Percentage Breakdown (with Surplus/Deficit)

Budget Totals Without Debt Debt

Budget Category Percentages

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Mary's Incomes $0 Taxes

Copyright 1997 - 2008 Toolsformoney.com, All Rights Reserved

Hourly Totals (net average based on 40 hour work week): $18.32

Copyright 1997 - 2008 Toolsformoney.com, All Rights Reserved

Compounded Cumulative Total Annual Surplus or Total Annual Debt Payments

Copyright 1997 - 2008 Toolsformoney.com, All Rights Reserved

$100,000 Taxes: Local /

Total Annual Fixed Expenses (less taxes)

$50,000 Income Taxes as a Percentage of Gross Incomes

$40,000 Federal: 12.3%

Copyright 1997 - 2008 Toolsformoney.com, All Rights Reserved

Money to Others Vehicles

Income & Sales Entertainment /

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Budget Totals With Debt Expense Percentage Breakdown (with Surplus/Deficit)

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Copyright 1997 - 2008 Toolsformoney.com, All Rights Reserved

Copyright 1997 - 2008 Toolsformoney.com, All Rights Reserved

-$12,000 Asset Income Taxes Federal State FICA Local/Misc.