Sample of a client 'Financial Profile'

Especially Prepared For:
Thomas and Beth
By: Mr David G. Walsh, CFP®

Table of Contents

Assets and Liabilities 10

Financial Statements 13

Retirement 21

Education Goals 36

Survivor Needs 46

Disability 55

*DRAFT PRESENTATION*

Personal Data
PERSONAL DATA
Name Sex Birthdate SS Benefits*
Thomas G Sample M 05/03/1955 Earnings Based
Beth Michele Sample F 09/27/1958 Earnings Based

20 Hull Street
Newton, MA 0
Phone: Fax:

*Social Security benefit levels of "Maximum" assume that the worker earned the Social Security maximum earning base in years prior to the
current year and that current earnings stay the same until Normal Retirement Age. "Earnings Based" assumes that the worker has received pay
raises at a rate equal to the national average each year through the current year and that current earnings stay the same until Normal Retirement
Age.

Dependents Birthdate SS Until Age
Jane 07/02/1995 18
John 01/02/1998 18

OCCUPATION

Thomas
Job Title:
Employer: Phone:
Fax:

Beth
Job Title:
Employer: Phone:
Fax:

Cornerstone Financial Group June 21, 2011 Thomas and Beth
Penn Mutual Page 1 Presented by: Mr David G. Walsh, CFP®

Advisors
Financial Advisor
Mr. David G. Walsh, CFP® Phone : (781) 229-0777
Cornerstone Financial Group Fax: (781) 229-5516
200 Wheeler Road E-mail: dwalsh@htk.com
Burlington, MA 01803


Analysis Summary
Prepared for
Thomas and Beth

This summary is intended to give you a quick overview of the detailed analyses in the sections that
follow, and is based upon your current financial situation and the information you provided. Please
review the analysis reports for details concerning assumed rates of return, calculations, tax implications
and other factors impacting the analysis results. Included in this summary are:

l Financial Statements
l Retirement Analysis
l Education Funding Analysis
l Survivor Needs Analysis
l Disability Income Needs
l Estate Analysis

FINANCIAL STATEMENTS

Thomas and Beth, your Net Worth is estimated at $2,803,815. This amount includes $176,975 in readily
available assets for emergencies vs. your goal of $118,875. You have a current annual cash flow surplus
of $102,807.

Net Worth Cash Flow

Assets $3,219,232 Income $475,500
Liabilities (415,417) Expenses (372,693)

Net Worth $2,803,815 Surplus/Deficit $102,807

Continued...


RETIREMENT ANALYSIS

Your goal is to retire at Thomas' age 60 and Beth's age 56. Your annual income objective at retirement is
$289,206. In addition to anticipated income sources, your projected savings and investments of
$2,610,700 at retirement will fund your income objective until Thomas' age 74 and Beth's age 70. At that
time, your available retirement portfolio is estimated to be fully depleted, and there will be a shortfall in
future income.

Objectives Results Remaining
Successful years of retirement 31 14 17
Capitalized value at retirement* $5,299,260 $3,472,568 $1,826,692
Percent of goal 100% 66% 34%

*Capitalization is a way of treating a series of cash flows as a lump sum, deposited in a hypothetical account with a return of
6.50%

EDUCATION FUNDING ANALYSIS

This analysis estimates that you will need $529,802 to provide for all of your education goals. It is
projected that you will have $425,500 available, which leaves a shortfall of ($104,301).

---------Funding Alternatives---------
Amount Needed Existing Plan Surplus/ Additional Level Additional Inflating
Name (in future dollars) Provides Deficit Monthly Savings Monthly Savings

Jane $295,633 $260,477 ($35,156) $140 $117
John 234,169 165,024 (69,145) 478 422

Total $529,802 $425,500 ($104,301) $617 $539

Continued...



SURVIVOR NEEDS ANALYSIS

Thomas, in the event of your death today your goal is to provide your survivors with an initial annual
income of $332,850. The additional capital required today to fund all immediate needs, provide for
important identified goals and provide the desired income until Beth's age 90 is estimated to be $2,612,971.

Beth, in the event of your death today your goal is to provide your survivors with an initial annual income
of $332,850. The additional capital required today to fund all immediate needs, provide for important
identified goals and provide the desired income until Thomas' age 90 is estimated to be $4,277,828.

In the event of In the event of
Thomas' death today Beth's death today

Assets Available $1,888,221 $1,888,157
Life Insurance Death Benefits 5,700,000 1,750,000
Less Immediate Cash Needs ($524,775) ($774,775)

Net Capital available for income and other needs $7,063,446 $2,863,382

DISABILITY INCOME NEEDS ANALYSIS

Thomas, in the event you have a disability lasting more than 90 days, your estimated monthly income
objective is $10,000. This analysis estimates you will have a surplus of $8,750.

Beth, in the event you have a disability lasting more than 90 days, your estimated monthly income
objective is $10,000. This analysis estimates you will have a surplus of $25,000.

Thomas' Disability Beth's Disability
Income Objective Income Objective

Monthly Income Objective After $10,000 $10,000
90 Days
Total Income 18,750 35,000

Surplus/Deficit $8,750 $25,000

Continued...



ESTATE ANALYSIS

A primary purpose of estate planning is to minimize estate shrinkage and maximize the estate left to
survivors. Estate shrinkage occurs because of various estate settlement costs, including federal and state
estate taxes. You may wish to consider various estate planning techniques and strategies to accomplish
your goals.

Summary numbers assuming Thomas dies first
If Thomas dies at age 61
Gross Estate $2,596,800
Estate settlement costs ($217,091)

If Beth dies at age 62
Gross Estate $3,074,784
Estate settlement costs ($1,026,141)

Amounts passing to:
Beneficiaries $2,053,485
Charities $0



Emergency Reserves

$200,000
$176,975

$150,000
$118,875

$100,000

$50,000

$0
Your Your Current
Needs Emergency Reserves
Cash Savings Life Insurance Cash Values

Before preparing for any long-term needs or even short-term accumulation goals, you should always be
prepared for the unexpected - those emergencies requiring immediate cash. Generally speaking, you
should maintain liquid cash reserves of between three and six times your monthly income.
Emergency Reserves Needs $118,875
Current Emergency Reserves:
Cash $51,700
Savings 85,900
Life Insurance Cash Values 39,375
Total $176,975
Surplus / (Deficit) $58,100



Emergency Reserves
Emergency reserves are required to meet life's
unknown short-term financial crises.

Most financial services professionals often suggest that an emergency reserve fund
should equal three to six months' total income. An early priority of any financial
goal should be to establish a cushion of cash reserves to handle emergencies.
Cash and other readily liquid assets are measured to determine whether sufficient
reserves are available. Without adequate reserves, it is very difficult to
concentrate on long-term objectives.

Based on your annual income of $465,000,
your reserve fund should be maintained at:
$116,250 to $232,500



Your Needs vs. Your Current Plan
Your goal is to be 100% funded Your Needs (100%)
vs. your Strategy %

Emergency $ 100%

Education 80%

Accumulation

Thomas' Death 76%

Beth's Death 58%

Thomas' Disability 100%

Beth's Disability 100%

Retirement 66%

0% 20% 40% 60% 80% 100%
Current Plan

The Need is 100%

The above graph illustrates the percentage by which your current financial position meets your goal.
l
Emergency Reserve provides 100% of the funds needed for unforeseen events or opportunities.
l
Education Goals are 80% funded when needed.
l Accumulation Goals are 0% funded when needed.
l Survivorship Income available is 76% of your initial objective if Thomas dies and 58% if Beth dies.
lDisability Income requirements are 100% satisfied if Thomas becomes disabled for 90 days and 100%
satisfied if Beth becomes disabled for 90 days.
l Retirement goal is 66% funded.



Asset Summary
by Asset Type
Banking
$3,322,857 Qualified
Annuities
Investments
Education
Real Estate
Personal
Business

Assets Current Balance Percent of Total Assets
Bank Accounts $137,600 4.1%
Qualified Retirement Accounts $1,661,452 50.0%
Investment Accounts $105,805 3.2%
Education Investment Accounts $143,000 4.3%
Real Estate and Residence $1,225,000 36.9%
Personal Property $50,000 1.5%
Total Assets $3,322,857 100.0%



Liability Summary
by Liability Type
$415,417 Real Estate
Property Loans
Personal Loans
Credit Cards

Percent of
Liabilities Current Liability Total Liabilities
Real Estate $405,900 98%
Property Loans $4,367 1%
Personal Loans $5,150 1%
Credit Cards $0 0%

Total Liabilities $415,417 100%



Cash Flow Summary
For your financial
priorities!

$475,500
$500,000
$372,693
$400,000

$300,000

$200,000 $102,807
$100,000

$0

INCOME DISBURSEMENTS SURPLUS
•Other •Living Expenses
•Employment •Liability Payments
•Taxes
•Insurance
•Savings

Annual Amount Percentage of Total Income
Income
Employment $465,000 98%
Other 10,500 2%
Total $475,500 100%
Disbursements
Living Expenses $119,308 25%
Liability Payments 0 0%
Taxes 191,660 40%
Insurance 37,125 8%
Savings/Retirement Plans 24,600 5%
Total 372,693 78%
Surplus $102,807 22%


Cash Flow
Annual Monthly Percent of
Amount Average Total Income
Income
Employment - Thomas $420,000 $35,000 88%
Employment - Beth 45,000 3,750 9%
Interest and Dividends - Thomas 5,500 458 1%
Rental Property(Net) - Thomas 5,000 417 1%
Total Income $475,500 $39,625 100%

Disbursements
Living Expenses
Housing $54,000 $4,500 11%
Child Care 3,000 250 1%
Transportation 1,200 100 0%
Food & Beverages 12,000 1,000 3%
Clothing 3,996 333 1%
Furnishings 1,800 150 0%
Personal Care and Cash 3,600 300 1%
Medical/Dental/Drugs 1,500 125 0%
Education/Self-Improvement 2,400 200 1%
Entertainment 9,000 750 2%
Vacations and Holidays 5,400 450 1%
Charitable Contributions 1,000 83 0%
Oil 1,500 125 0%
Elec 600 50 0%
Cable/Internet 1,680 140 0%
Water & Sewer 900 75 0%
Phone 780 65 0%
Mobile Phones 900 75 0%
House Cleaning 1,560 130 0%
Gutters 144 12 0%
Newspaper 168 14 0%
Pest Cont/Chimney 180 15 0%
Yard Maintenance 600 50 0%
Credit Cards 600 50 0%
Health Insurance 10,800 900 2%
Total Expenses $119,308 $9,942 25%

Liability Payments
Total Liability Payments $0 $0 0%

Taxes
Federal - Thomas $150,000 $12,500 32%
State - Thomas 24,000 2,000 5%
OASDI/Medicare 17,660 1,472 4%
Total Taxes $191,660 $15,972 40%

Continued...


Insurance
Term Life 30yr $690 $58 0%
First Colony Life 960 80 0%
AIG 2,000 167 0%
Penn Mutual UL 3,500 292 1%
CNA 525 44 0%
First Colony Life 400 33 0%
Penn Mutual UL 2,250 188 0%
Principal 3,500 292 1%
Umbrella Liability 400 33 0%
Homeowners 900 75 0%
Medical 20,000 1,667 4%
Auto 2,000 167 0%
Total Insurance $37,125 $3,094 8%

Savings
SEP IRA - Client A $7,200 $600 2%
Investment Account - Joint 3,600 300 1%
529 Plan for Jane 7,800 650 2%
CollegeAmerica 6,000 500 1%
Total Savings $24,600 $2,050 5%

Total Disbursements $372,693 $31,058 78%

Surplus $102,807 $8,567 22%



Net Worth Summary

$2,803,815

$3,500,000

$3,000,000

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$0
Market Value Liabilities Net Worth

Assets $3,219,232
Bank Accounts $137,600
Qualified Retirement Accounts $1,661,452
Investment Accounts $105,805
Real Estate and Residence $1,225,000
Personal Property $50,000
Life Insurance Cash Values $39,375

Liabilities $415,417
Real Estate Loan $405,900
Property Loan $4,367
Personal Loan $5,150

Net Worth $2,803,815


Net Worth Statement
As of 06/21/2011

Current Total
Expected Market Market
Assets Owner Rate of Return Value Value

Bank Accounts
BOA Business Thomas 0.00% 30,000
BOA Thomas 4.50% 50,000
BOA (House) Joint 0.00% 4,700
Sovereign Beth 1.00% 20,000
Sovereign Beth 0.00% 17,000
ING Thomas 3.00% 15,900
Total Bank Accounts 137,600

Qualified Retirement Accounts
IRA - Traditional IRA - Client A Thomas
Portfolio 9.00% 13,068
SEP (SARSEP) - SEP IRA - Client A Thomas
Investments 9.00% 255,000
IRA - Traditional IRA - Client A Thomas
Funds 9.00% 9,140
401(k) - 401(k) Plan - Client A Thomas
Company 9.00% 858,000
Other Retirement - Other Retirement Plan - Client A Thomas
Company 9.00% 25,000
IRA - Traditional IRA - Client B Beth
Portfolio 9.00% 485,000
IRA - Traditional IRA - Client B Beth
Etrade 9.00% 16,244
Total Qualified Retirement Accounts 1,661,452

Investment Accounts
Investment Account - Client B Beth
Stocks 9.00% 3,000
Investment Account - Joint Joint
Etrade 9.00% 11,607
Investment Account - Joint Joint
Brokerage 7.00% 18,698
Investment Account - Client A Thomas
Pershing 1.00% 7,500
Investment Account - Client B Beth
JPMorgan ESPP (130shrs) 9.00% 65,000
Total Investment Accounts 105,805

Real Estate and Residence
Cape House Joint 3.00% 325,000
Home Joint 3.00% 900,000
Total Real Estate and Residence 1,225,000

Personal Property
Autos Joint 0.00% 50,000
Total Personal Property 50,000

Continued...


Life Insurance Cash Values
Penn Mutual UL Thomas -- 22,500
Penn Mutual UL Beth -- 16,875
TotalLife Insurance Cash Values 39,375

Total Assets $3,219,232

Assumed Initial Current Total
Liabilities Owner Interest Rate Balance Balance

Real Estate Loan
Loan for Home Joint 0.00% 230,900
Loan for Cape House Joint 0.00% 175,000
Total Real Estate Loan 405,900

Property Loan
Loan for Autos Joint 0.00% 4,367
Total Property Loan 4,367

Personal Loan
MBNA Joint 0.00% 4,400
Capital One Thomas 0.00% 750
Total Personal Loan 5,150

Total Loans & Liabilities $415,417

Net Worth $2,803,815



General Insurance

Auto
The Need
Your Plan
$50,000
Personal Property
$500,000

$675,000
Homeowner's
$1,000,000

$5,607,630
Medical

$5,607,630
Umbrella Liability
$3,000,000

$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000

Approximate Insurable Needs

Automobiles
l Liability - At least $300,000 may be appropriate. This amount is frequently the base for an umbrella policy.
l Deductibles - May be practical to increase deductible amounts and reduce premiums. Some companies offer $500 and $1,000
deductibles.
l Collision - For older cars, consider dropping this coverage if the cost is not worth the potential benefits.
l Discounts - Determine whether you have taken advantage of proper classifications, including multi-car discounts, good student
discounts, safe driving programs, etc.
Personal Property
l Personal property - Determine if your jewelry, art, silver, collectibles, and other personal property are insured for their actual
replacement costs. You may want to have these items appraised and have them “scheduled” to insure full coverage.
Home
l Dwelling - Coverage should generally be based on estimated rebuilding costs, and should be reviewed annually.
Medical Coverage
l Your insurance policy should include major medical coverage for $1,000,000 or more.
l Be sure that any internal policy limits are in line with customary hospital and medical expenses in your area.
Umbrella Liability
l Coverage for home and auto, providing an additional layer of coverage over and above the base amounts.
l In view of substantial court judgments, this coverage may be essential, especially to high-income earners or those with significant
net worth. Two or three million dollar policies are available.



Save More–Earn More
Achieving Your Retirement Objective

$35,000
$30,862
$30,000
Additional $25,000
Monthly
$20,000 $17,832
Savings
(Inflating) * $15,000 $12,587
$10,000 $7,920
$5,000 $3,748

$0
6.50% 8.97% 9.71% 10.46% 11.21% 11.95%

Hypothetical Rate of Return

The analysis shows that there are not enough assets to provide for your retirement needs. There are only
three ways to fix this problem: 1) Reduce or delay your retirement goal; 2) Save more money; or 3)
Make your money work harder. Assuming you want to keep your goals intact, let's examine the last two.
Save More:
At retirement, you need an additional $1,826,692 in a hypothetical taxable account earning 6.50% to
meet your goals. Savings of $30,862/month into this account would accomplish this.
Currently, your assets are expected to earn an average of 8.97%. If the hypothetical account were
earning this rate too, then you would need $1,118,971 at retirement, requiring $17,832/month.
Earn More:
If, however, your retirement assets could earn 11.95%, no additional savings would be necessary to
achieve your retirement goals. Frequently, however, an increase in return can mean an increase in the
risks to your portfolio, so care should be taken before proceeding.
The Right Combination:
Changing your portfolio rate from 8.97% to 10.46% reduces the additional savings to $7,920/month.
Factors such as risk tolerance, timeframe and saving ability can help you find the right combination.

*Assumes that the monthly savings amount increases by 3.50% each year.



Spend Less–Earn More
Achieving Your Retirement Objective

$25,000 $24,100
$22,442
$20,784
$20,000 $19,125
$17,467
Monthly $15,000
Income
$10,000

$5,000

$0
8.97% 9.71% 10.46% 11.21% 11.95%

Hypothetical Rate of Return

According to the analysis, your retirement income need ($24,100 in the first month) is greater than the
income sources and assets you have available to meet that need. When this is the case, and when
additional savings is not an option, you are left with essentially two options: 1) Reduce the retirement
income objective; or 2) Earn more in your portfolio. Looking at each, consider the following:
Spend Less:
Currently, your assets are expected to earn an average of 8.97%. At this rate, your portfolio, combined
with your income sources, will support 72% of your desired need. Therefore, in the first month, rather
than covering $24,100/month of expenses, your resources can support $17,467.
Earn More:
If you were to reposition your assets in such a way as to earn 11.95%, then 100% of your entire
retirement goal ($24,100 in the first month) can be met. Frequently, however, an increase in return can
mean an increase in the risks to your portfolio, so care should be taken before proceeding.
The Right Combination:
If you change your portfolio rate from 8.97% to 10.46%, it would support a monthly income of
$20,784 -- reducing your original objective to 86%. What is the right combination for you?


Retirement Objective Timeline
How much do you need?
Income Liability Required Goals and Total
Ages Need Payments Savings Gifting Needs

60/ 56 $275,406 $0 $13,800 $0 $289,206
61/ 57 285,045 0 13,800 0 298,845
62/ 58 295,021 0 13,800 0 308,821
63/ 59 305,347 0 13,800 0 319,147
64/ 60 316,034 0 13,800 0 329,834
65/ 61 327,095 0 0 0 327,095
66/ 62 338,544 0 0 0 338,544
67/ 63 350,393 0 0 0 350,393
68/ 64 362,656 0 0 0 362,656
69/ 65 375,349 0 0 0 375,349
70/ 66 349,638 0 0 0 349,638
71/ 67 361,875 0 0 0 361,875
72/ 68 374,541 0 0 0 374,541
73/ 69 387,650 0 0 0 387,650
74/ 70 401,218 0 0 0 401,218
75/ 71 380,655 0 0 0 380,655
76/ 72 393,978 0 0 0 393,978
77/ 73 407,767 0 0 0 407,767
78/ 74 422,039 0 0 0 422,039
79/ 75 436,811 0 0 0 436,811
--/ 76 452,099 0 0 0 452,099
--/ 77 467,923 0 0 0 467,923
--/ 78 484,300 0 0 0 484,300
--/ 79 501,250 0 0 0 501,250
--/ 80 518,794 0 0 0 518,794
--/ 81 536,952 0 0 0 536,952
--/ 82 555,745 0 0 0 555,745
--/ 83 575,196 0 0 0 575,196
--/ 84 595,328 0 0 0 595,328
--/ 85 616,165 0 0 0 616,165
--/ 86 637,730 0 0 0 637,730


Retirement Income Sources Details
What income will be available?

At
Annual Thomas' End Annual
Income Sources Amount Age Age Increase

Thomas' Social Security $25,121 62 90 2.00%
Beth's Social Security 16,845 66 94 2.00%


Retirement Income Sources Timeline
What income will be available?
Thomas Beth Total
Social Defined Annuity Social Defined Annuity Income
Age Security Benefits Benefits Earnings Misc. Age Security Benefits Benefits Earnings Misc. Sources

60 $0 $0 $0 $0 $0 56 $0 $0 $0 $0 $0 $0
61 0 0 0 0 0 57 0 0 0 0 0 0
62 25,121 0 0 0 0 58 0 0 0 0 0 25,121
63 25,623 0 0 0 0 59 0 0 0 0 0 25,623
64 26,136 0 0 0 0 60 0 0 0 0 0 26,136
65 26,659 0 0 0 0 61 0 0 0 0 0 26,659
66 27,192 0 0 0 0 62 16,845 0 0 0 0 44,037
67 27,736 0 0 0 0 63 17,182 0 0 0 0 44,918
68 28,290 0 0 0 0 64 17,526 0 0 0 0 45,816
69 28,856 0 0 0 0 65 17,876 0 0 0 0 46,733
70 29,433 0 0 0 0 66 18,234 0 0 0 0 47,667
71 30,022 0 0 0 0 67 18,599 0 0 0 0 48,621
72 30,622 0 0 0 0 68 18,971 0 0 0 0 49,593
73 31,235 0 0 0 0 69 19,350 0 0 0 0 50,585
74 31,859 0 0 0 0 70 19,737 0 0 0 0 51,597
75 32,497 0 0 0 0 71 20,132 0 0 0 0 52,628
76 33,147 0 0 0 0 72 20,534 0 0 0 0 53,681
77 33,810 0 0 0 0 73 20,945 0 0 0 0 54,755
78 34,486 0 0 0 0 74 21,364 0 0 0 0 55,850
79 35,175 0 0 0 0 75 21,791 0 0 0 0 56,967
-- 0 0 0 0 0 76 35,879 0 0 0 0 35,879
-- 0 0 0 0 0 77 36,597 0 0 0 0 36,597
-- 0 0 0 0 0 78 37,328 0 0 0 0 37,328
-- 0 0 0 0 0 79 38,075 0 0 0 0 38,075
-- 0 0 0 0 0 80 38,837 0 0 0 0 38,837
-- 0 0 0 0 0 81 39,613 0 0 0 0 39,613
-- 0 0 0 0 0 82 40,405 0 0 0 0 40,405
-- 0 0 0 0 0 83 41,214 0 0 0 0 41,214
-- 0 0 0 0 0 84 42,038 0 0 0 0 42,038
-- 0 0 0 0 0 85 42,879 0 0 0 0 42,879
-- 0 0 0 0 0 86 43,736 0 0 0 0 43,736


Retirement Capital Available Details
How Much Will You Have at Retirement?
Current Total Market Total
Market Value Value at Value at
Accounts Owner Value Today Retirement Retirement

Bank Accounts
ING Client A 15,900 17,896
Total 15,900 17,896

Investment Accounts
Investment Account - Client B Client B 3,000 4,235
Investment Account - Joint Joint 11,607 16,384
Investment Account - Joint Joint 18,698 41,612
Investment Account - Client B Client B 65,000 91,753
Total 98,305 153,984

Deductible Qualified Accounts
Traditional IRA - Client A Client A 13,068 18,447
SEP IRA - Client A Client A 255,000 453,499
Traditional IRA - Client A Client A 9,140 12,902
401(k) Plan - Client A Client A 858,000 1,211,137
Other Retirement Plan - Client A Client A 25,000 35,290
Traditional IRA - Client B Client B 485,000 684,617
Traditional IRA - Client B Client B 16,244 22,930
Total 1,661,452 2,438,821

Total Capital Available for Retirement $1,775,657 $2,610,700

These results are hypothetical and are not a promise of future performance.


Retirement Analysis Results Timeline
Has the objective been met?
Applied Income Sources Applied Assets
Total Social Additional Needed from Required Asset (Shortage)
Ages Needs Security Income Assets Distributions Withdrawals Unmet Needs

60 / 56 $289,206 $0 $0 $289,206 $0 $289,206 $0
61 / 57 298,845 0 0 298,845 0 298,845 0
62 / 58 308,821 25,121 0 283,700 0 283,700 0
63 / 59 319,147 25,623 0 293,524 0 293,524 0
64 / 60 329,834 26,136 0 303,698 0 303,698 0
65 / 61 327,095 26,659 0 300,437 0 300,437 0
66 / 62 338,544 44,037 0 294,507 0 294,507 0
67 / 63 350,393 44,918 0 305,475 0 305,475 0
68 / 64 362,656 45,816 0 316,840 0 316,840 0
69 / 65 375,349 46,733 0 328,617 0 328,617 0
70 / 66 349,638 47,667 0 301,971 26,714 275,257 0
71 / 67 361,875 48,621 0 313,255 22,358 290,897 0
72 / 68 374,541 49,593 0 324,948 17,115 307,833 0
73 / 69 387,650 50,585 0 337,065 10,860 326,205 0
74 / 70 401,218 51,597 0 349,621 5,750 141,366 (202,506)
75 / 71 380,655 52,628 0 328,027 0 0 (328,027)
76 / 72 393,978 53,681 0 340,297 0 0 (340,297)
77 / 73 407,767 54,755 0 353,013 0 0 (353,013)
78 / 74 422,039 55,850 0 366,190 0 0 (366,190)
79 / 75 436,811 56,967 0 379,844 0 0 (379,844)
-- / 76 452,099 35,879 0 416,220 0 0 (416,220)
-- / 77 467,923 36,597 0 431,326 0 0 (431,326)
-- / 78 484,300 37,328 0 446,971 0 0 (446,971)
-- / 79 501,250 38,075 0 463,175 0 0 (463,175)
-- / 80 518,794 38,837 0 479,958 0 0 (479,958)
-- / 81 536,952 39,613 0 497,339 0 0 (497,339)
-- / 82 555,745 40,405 0 515,340 0 0 (515,340)
-- / 83 575,196 41,214 0 533,983 0 0 (533,983)
-- / 84 595,328 42,038 0 553,290 0 0 (553,290)
-- / 85 616,165 42,879 0 573,286 0 0 (573,286)
-- / 86 637,730 43,736 0 593,994 0 0 (593,994)


Retirement Capital Results Timeline
Contributions, Withdrawals and Growth

Additions to Portfolio Withdrawals from Portfolio

Total Required Total
Contribu- Lump Minimum Withdrawals Other Total Portfolio
Age tions Sum Amounts Distributions for Need Withdrawals Growth Balance

Beginning Balance $1,775,657

56 / 52 $21,600 $0 $0 $0 $0 $160,353 $1,957,610
57 / 53 22,140 0 0 0 0 176,646 2,156,396
58 / 54 22,696 0 0 0 0 194,447 2,373,539
59 / 55 23,269 0 0 0 0 213,892 2,610,700
60 / 56 0 0 0 289,206 0 208,935 2,530,429
61 / 57 0 0 0 298,845 0 200,843 2,432,427
62 / 58 0 0 0 283,700 0 193,385 2,342,112
63 / 59 0 0 0 293,524 0 184,373 2,232,962
64 / 60 0 0 0 303,698 0 173,634 2,102,897
65 / 61 0 0 0 300,437 0 162,221 1,964,681
66 / 62 0 0 0 294,507 0 150,316 1,820,491
67 / 63 0 0 0 305,475 0 136,351 1,651,367
68 / 64 0 0 0 316,840 0 120,107 1,454,634
69 / 65 0 0 0 328,617 0 101,342 1,227,359
70 / 66 0 0 26,714 275,257 0 83,285 1,008,673
71 / 67 0 0 22,358 290,897 0 62,588 758,006
72 / 68 0 0 17,115 307,833 0 38,975 472,033
73 / 69 0 0 10,860 326,205 0 12,147 147,115
74 / 70 0 0 5,750 141,366 0 0 0
75 / 71 0 0 0 0 0 0 0
76 / 72 0 0 0 0 0 0 0
77 / 73 0 0 0 0 0 0 0
78 / 74 0 0 0 0 0 0 0
79 / 75 0 0 0 0 0 0 0
-- / 76 0 0 0 0 0 0 0
-- / 77 0 0 0 0 0 0 0
-- / 78 0 0 0 0 0 0 0
-- / 79 0 0 0 0 0 0 0
-- / 80 0 0 0 0 0 0 0
-- / 81 0 0 0 0 0 0 0
-- / 82 0 0 0 0 0 0 0
-- / 83 0 0 0 0 0 0 0
-- / 84 0 0 0 0 0 0 0
-- / 85 0 0 0 0 0 0 0
-- / 86 0 0 0 0 0 0 0

The highlighted row indicates the beginning of retirement.


Retirement Summary Timeline
An Overview of the Results

Retirement Analysis Results Retirement Portfolio Results
Applied (Shortage) Retirement
Total Applied RMD and Unmet RMD and Growth and Portfolio
Age Needs Income Withdrawals Needs Withdrawals Additions Balance

Beginning Balance $1,775,657

60 / 56 $289,206 $0 $289,206 $0 $289,206 $208,935 $2,530,429
61 / 57 298,845 0 298,845 0 298,845 200,843 2,432,427
62 / 58 308,821 25,121 283,700 0 283,700 193,385 2,342,112
63 / 59 319,147 25,623 293,524 0 293,524 184,373 2,232,962
64 / 60 329,834 26,136 303,698 0 303,698 173,634 2,102,897
65 / 61 327,095 26,659 300,437 0 300,437 162,221 1,964,681
66 / 62 338,544 44,037 294,507 0 294,507 150,316 1,820,491
67 / 63 350,393 44,918 305,475 0 305,475 136,351 1,651,367
68 / 64 362,656 45,816 316,840 0 316,840 120,107 1,454,634
69 / 65 375,349 46,733 328,617 0 328,617 101,342 1,227,359
70 / 66 349,638 47,667 301,971 0 301,971 83,285 1,008,673
71 / 67 361,875 48,621 313,255 0 313,255 62,588 758,006
72 / 68 374,541 49,593 324,948 0 324,948 38,975 472,033
73 / 69 387,650 50,585 337,065 0 337,065 12,147 147,115
74 / 70 401,218 51,597 147,115 (202,506) 147,115 0 0
75 / 71 380,655 52,628 0 (328,027) 0 0 0
76 / 72 393,978 53,681 0 (340,297) 0 0 0
77 / 73 407,767 54,755 0 (353,013) 0 0 0
78 / 74 422,039 55,850 0 (366,190) 0 0 0
79 / 75 436,811 56,967 0 (379,844) 0 0 0
-- / 76 452,099 35,879 0 (416,220) 0 0 0
-- / 77 467,923 36,597 0 (431,326) 0 0 0
-- / 78 484,300 37,328 0 (446,971) 0 0 0
-- / 79 501,250 38,075 0 (463,175) 0 0 0
-- / 80 518,794 38,837 0 (479,958) 0 0 0
-- / 81 536,952 39,613 0 (497,339) 0 0 0
-- / 82 555,745 40,405 0 (515,340) 0 0 0
-- / 83 575,196 41,214 0 (533,983) 0 0 0
-- / 84 595,328 42,038 0 (553,290) 0 0 0
-- / 85 616,165 42,879 0 (573,286) 0 0 0
-- / 86 637,730 43,736 0 (593,994) 0 0 0


Retirement Capital Balances Timeline
Assets At Work Over Time

Retirement Account Balances
Deferred Non-deductible Deductible Total
Bank Roth Investment Annuity Qualified Qualified Portfolio
Age Accounts Accounts Accounts Accounts Accounts Accounts Balance

Beg Bal $17,896 $0 $153,984 $0 $0 $2,438,821 $2,610,700

60 / 56 $0 $0 $0 $0 $0 $2,530,429 $2,530,429
61 / 57 0 0 0 0 0 2,432,427 2,432,427
62 / 58 0 0 0 0 0 2,342,112 2,342,112
63 / 59 0 0 0 0 0 2,232,962 2,232,962
64 / 60 0 0 0 0 0 2,102,897 2,102,897
65 / 61 0 0 0 0 0 1,964,681 1,964,681
66 / 62 0 0 0 0 0 1,820,491 1,820,491
67 / 63 0 0 0 0 0 1,651,367 1,651,367
68 / 64 0 0 0 0 0 1,454,634 1,454,634
69 / 65 0 0 0 0 0 1,227,359 1,227,359
70 / 66 0 0 0 0 0 1,008,673 1,008,673
71 / 67 0 0 0 0 0 758,006 758,006
72 / 68 0 0 0 0 0 472,033 472,033
73 / 69 0 0 0 0 0 147,115 147,115
74 / 70 0 0 0 0 0 0 0
75 / 71 0 0 0 0 0 0 0
76 / 72 0 0 0 0 0 0 0
77 / 73 0 0 0 0 0 0 0
78 / 74 0 0 0 0 0 0 0
79 / 75 0 0 0 0 0 0 0
-- / 76 0 0 0 0 0 0 0
-- / 77 0 0 0 0 0 0 0
-- / 78 0 0 0 0 0 0 0
-- / 79 0 0 0 0 0 0 0
-- / 80 0 0 0 0 0 0 0
-- / 81 0 0 0 0 0 0 0
-- / 82 0 0 0 0 0 0 0
-- / 83 0 0 0 0 0 0 0
-- / 84 0 0 0 0 0 0 0
-- / 85 0 0 0 0 0 0 0
-- / 86 0 0 0 0 0 0 0


Retirement Distribution Details
Meeting Your Needs with the Retirement Portfolio
In the analysis, withdrawals were made from your retirement assets for two reasons:

1. Required Minimum Distributions: For each qualified account, (e.g., 401(k)), the IRS requires that you pay
out a portion of your funds (and pay the taxes!) starting at age 70½. In this analysis, these distributions were
used to pay your retirement income needs after other income sources (e.g., Social Security) have been applied.
Excess RMD, if any, was reinvested.

2. Withdrawals to Meet Needs: In years when your needs surpassed your income sources and RMD, the analysis
withdrew money from your pool of retirement assets. Based on the types of assets you have, withdrawals were
made with the goal of deferring income taxes as long as possible.

Retirement Withdrawals to Meet Needs
Age at 1st Total
Total Distribution Retirement Retirement Balance at
Name RMD Order Withdrawal Withdrawals End of Plan

ING $0 2 60 $17,896 $0
Investment Account - Client B 0 3 60 4,235 0
Investment Account - Client B 0 3 60 91,753 0
Investment Account - Joint 0 3 60 16,384 0
Investment Account - Joint 0 3 60 41,612 0
Other Retirement Plan - Client A 0 4 60 58,641 0
401(k) Plan - Client A 57,484 4 60 1,948,948 0
SEP IRA - Client A 21,525 4 60 729,766 0
Traditional IRA - Client A 876 4 60 29,684 0
Traditional IRA - Client A 612 4 60 20,762 0
Traditional IRA - Client B 2,225 4 63 1,351,462 0
Traditional IRA - Client B 75 4 63 45,264 0

Totals $82,796 $4,356,405 $0


High Withdrawal Rates
Will Quickly Deplete Your Assets
Age to which a portfolio may last based on withdrawal rate
(90% confidence level)

Withdrawal
Rate

10% 74 Portfolio
Stocks 50%
9% 75 Bonds 40%
Cash 10%
8% 77

7% 79

6% 82

5% 86

4% 94

3% 100+

Age 65 70 75 80 85 90 95 100

Important: Projections generated by Morningstar regarding the likelihood of various investment outcomes are
hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Results may
vary over time and with each simulation. This is for illustrative purposes only and not indicative of any investment.
An investment cannot be made directly in an index. © 2010 Ibbotson Associates, Inc., a wholly owned subsidiary of
Morningstar, Inc. All rights reserved. EISI has engaged Ibbotson to develop proprietary asset allocation tools for
educational purposes. Ibbotson has granted to EISI a license for use thereof.

High Withdrawal Rates Will Quickly Deplete Your Assets
Withdrawal rates have a dramatic impact on determining how long a portfolio can last in retirement. How
much can a retiree safely withdraw each year from his or her portfolio? Finding the answer is like hitting
a moving target--the optimal withdrawal rate is dependent upon investment performance and the impact
of inflation.

Several issues should be examined when determining an investor's withdrawal rate. Asset allocation,
time horizon, and consumption patterns are all important factors in shaping how long portfolio wealth
will last. The image shows how a portfolio of 50% stocks, 40% bonds, and 10% cash investments might
have lasted given inflation-adjusted withdrawal rates between 3% and 10%. As illustrated, the higher the
withdrawal rate, the faster an investor will run out of money. The lower the rate, the less likely a retiree
will outlive his or her portfolio. Therefore, retirees who anticipate long payout periods may want to
consider assuming lower withdrawal rates.

Continued...


It is assumed that a person retires at age 65 and withdraws an inflation-adjusted percentage of the initial
portfolio wealth (assumed $1 million) each year beginning at age 66. The image was created using Monte
Carlo parametric simulation that estimates the range of possible outcomes based on a set of assumptions
including arithmetic mean (return), standard deviation (risk), and correlation for a set of asset classes.
The inputs used are historical 1926-2009 figures. The risk and return of each asset class, crosscorrelation,
and annual average inflation over this time period follow. Stocks: risk 20.5%, return 11.8%; Bonds: risk
5.7%, return 5.5%; Cash: risk 3.1%, return 3.7%; Correlations: -0.01 (stocks and bonds), -0.01 (stocks
and cash), 0.47 (bonds and cash); Inflation: return 3.1%. Annual investment expenses were assumed to
be 0.88% for stock mutual funds and 0.74% for bond mutual funds and cash. Other investments not
considered may have characteristics similar or superior to those being analyzed.

The simulation is run 5,000 times, to give 5,000 possible 35-year scenarios. While simulation can
produce results that show probabilities of an outcome, the analysis included herein is presented as the
90% confidence level. A 90% confidence level indicates that there is a 90% chance of the outcome being
as shown or better. Higher confidence levels are chosen in order to view tougher market conditions. A
limitation of the simulation model is that it assumes a constant inflation-adjusted rate of withdrawal,
which may not be representative of actual retirement income needs. This type of simulation also assumes
that the distribution of returns is normal. Should actual returns not follow this pattern, results may vary.

Government bonds and Treasury bills are guaranteed by the full faith and credit of the U.S. government
as to the timely payment of principal and interest, while returns and principal invested in stocks are not
guaranteed.

About the data
Stocks are represented by the Standard & Poor's 500®, which is an unmanaged group of securities and considered
to be representative of the stock market in general. Bonds are represented by the five-year U.S. government bond,
Treasury bills by the 30-day U.S. Treasury bill, inflation by the Consumer Price Index, and mutual fund expenses
from Morningstar. The data assumes reinvestment of income and does not account for taxes or transaction costs.



Education Goals
Total Education Need $529,802
Your Education Plan Provides $425,500

$295,633
Jane
$260,477

$234,169
John
$165,024

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000

Need Education Plan

This graph illustrates the projected capital needed to meet your education objectives and how your projected current savings and investments are
helping meet the objectives.
_______Funding Alternatives1_______
Amount Needed Additional Additional
Per Year Additional Monthly Level Monthly Inflating
Name (Today's $) Sum1 Savings Savings2

Jane $40,000 $14,356 $140 $117
John 40,000 38,835 478 422

Totals $80,000 $53,191 $617 $539

1Single-sum investment alternative assumes that existing savings will continue and Funding Alternatives earn an assumed rate of return of 8.00%.
2The amount shown is for the first year only; this amount must be increased annually by the assumed inflation rate of 3.50%.


Education Goals
Summary
Education Goals: Amount
Annual Years Needed
Goal Amount Until Years Inflated Future
Number Name School Needed Needed Needed at Dollars
1 Jane Northeastern $40,000 9 4 6.00% $295,633
University
2 John BC 40,000 5 4 6.00% 234,169

Total amount needed - future dollars $529,802

Assets and Savings Available:

Current ----------------------Monthly Savings --------------------
Market Year Savings Number of Assigned
Accounts Value Amount Start Years to Save to Goal

529 Plan for Jane
CollegeAmerica $75,000 $650 2011 9 1
CollegeAmerica
CollegeAmerica $68,000 $500 2011 9 2

Total $143,000

Funding Alternatives:
------Additional Amount Needed1 ------
Amount Existing Monthly Monthly
Needed Plan Level Inflating
Future Dollars Provides Single Sum Savings Savings2

Jane $295,633 $260,477 $14,356 $140 $117
John 234,169 165,024 38,835 478 422

Total $529,802 $425,500 $53,191 $617 $539
1 All additional savings begin today and assume a rate of return of 8.00%.
2 Inflating savings will increase annually by 3.50%.


Education Goals
Existing Plan
for Jane

Amount needed
$40,000 per year needed in 9 years for 4 years inflating annually at 6.00%

Needed in year 1 of goal, $40,000 inflated by 6.00% = $67,579
Needed in year 2 of goal, $40,000 inflated by 6.00% = 71,634

Total amount needed $295,633

Capital available
Current Assumed Amount
Market Monthly Rate of Applied
Accounts Value Savings Return To Goals
529 Plan for Jane $75,000 $650 7.00% $260,477
Total $75,000 $260,477

Distribution Plan:
Year 1 Year 2 Year 3 Year 4
529 Plan for Jane $67,579 $71,634 $75,932 $45,332

Total Withdrawals 67,579 71,634 75,932 45,332
Liabilities 0 0 0 0
Net for Goal 67,579 71,634 75,932 45,332
(Shortfall) $0 $0 $0 ($35,156)


Sample of a client 'Financial Profile'

Sample of a client 'Financial Profile'

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