1. Caprock Securities 4601 50thst, suite 202Lubbock, texas 79493Serving Lubbock since 1978Member of FINRA / SIPC Insured www.CaprockFinancialPlanning.com 806-797-3513

5. 45% of parents with adult children are contributing some form of financial supportThe “We” Generation:When retirement andfamily needs collide Source: Putnam/BrightWorks 2005; Putnam/BrightWorks 2006, which is the most recent data available.

6. Five things we can prepare for Building a successful retirement

7. Five things we can prepare for Longevity Rising prices Medical and long-term-care costs Public policy changes Investment risks

9. Rising prices Sources: U.S. Postal Service, Energy Information Administration, National Association of Theatre Owners, Edmunds, National Association of Realtors. Data reflects prices from these sources as of 6/08. Assumes a 3% rate of inflation.

11. Expect medical care and health insurance costs to be 20% of pre-retirement income on an annual basis during retirement

12. Retiree medical care issues

13. Health-care costs expected to rise 8% annually over the next 20 years — 3 to 4 times current inflation rate

14. More employers reducing or eliminating future retiree health-care benefits

15. Medicare does not cover cost of long-term care, except in limited circumstancesFidelity Employer Services Company, March 2007; Hewitt Associates, June 2004; Employee Benefit Research Institute, “Retiree Health Benefits: Savings Needed to Fund Health Care in Retirement,” February 2003, which is the most recent data available.

16. Public policy (social Security) $0 $$ Social Security Administration, “The Future of Social Security”, January 2004, which is the most recent data available.

17. Stock market risk Need a Balanced Strategy to Generate Income vs. You’re money will loose its value over time If you need your money on any given day, it may not all be there

18. Stock market risk A Financial Planner Can Help You Find The Appropriate Balance That’s Right For You.

19. Interest-rate risk Interest rates have an inverse effect on bonds Interest rates -> Bond Prices Bond Prices Interest Rates Income

20. Interest-rate risk Interest rates have an inverse effect on bonds Interest rates -> Bond Prices Bond prices Interest rates Income

21. Building a successful retirement Create an income plan Monitor your Investments Take advantage of tax savings Protect your savings or income stream These are all things we can help you with!

22. Create an income plan Later in retirement Early in your retirement Part/full-timework SocialSecurity Pensionincome IRA withdrawals Immediateannuity Real estate Life insurance 401(k)withdrawals Long-term-care insurance

23. Don’t take income you don’t need Ad hoc withdrawals Systematic withdrawals May need systematic withdrawals to cover expenses Regularincome

24. Choose the right withdrawal rate How long will your money last? Years 10%will last10 years 9%will last11years 4%will last28 years 5%will last21 years 6%will last17 years 7%will last15 years 8%will last13 years 3%will last50 years Percentage of your portfolio’s original balance you withdraw each year This example assumes a 90% probability rate. These hypothetical illustrations are based on a 10,000-iteration Monte Carlo simulation and do not account for the effect of taxes, nor do they represent the performance of any Putnam fund or product, which will fluctuate. A Monte Carlo simulation is a technique for analyzing the probability of certain events based on historical data. These illustrations use the historical returns from 1926 to 2007 of stocks (as represented by an S&P 500 composite), bonds (as represented by a 20-year long-term government bond (50%) and a 20-year corporate bond (50%)), and cash (U.S. 30-day T-bills) to determine how long a portfolio is likely to last given various withdrawal rates. A one-year rolling average is used to calculate performance of the 20-year bonds. Past performance is not a guarantee of future results. The S&P 500 Index is an unmanaged index of common stock performance. You cannot invest directly in an index.

25. Watch your asset allocation How long will your money last? various asset allocations affect a portfolio’s expected longevity. It assumes that 5% of the original account balance is withdrawn each year and that withdrawals are increased by 3% each year to account for inflation. 95% 3% 24% 98% 50% 17% 93% 71% 57% 89% 71% 60% 75–100% probability 50–74% probability 0–49% probability These portfolios are hypothetical illustrations based on a Monte Carlo simulation using historical data and are not intended as investment advice. You should consider your other assets, income, investment options, and risk tolerance when planning for your specific investment goals. Consult your financial representative for more information. Past performance is not a guarantee of future results.

27. Pay attention to order

29. Includes $50,000 in contributions (“cost basis”) and $250,000 in market appreciation (“NUA”)

32. No tax due on appreciation until stock is sold, then taxed at capital gains rates ($250,000 x 15% = $37,500)

33. Total taxes due: $37,500 + $17,500 = $55,000

36. Social Security Administration, www.ssa.gov

37. American Savings Education Council, www.asec.org

38. ElderWeb, www.elderweb.com

39. Medicare, www.medicare.gov

41. Retirement Planning

42. Investment Management

43. Defensive Strategies

44. Tax-Efficient Portfolioswww.CaprockFinancialPlanning.Com 4601 50th St. Ste. 202 Lubbock, Texas 79493 806-797-3512