Financial planning project

Cho

small_sample_financial_plan.pdf

Home >Business & Finance homework help >Management homework help >Financial planning project

- CONFIDENTIAL REPORT -

Prepared Especially For:

John & Mary Sample

June 2016

Prepared By:

Smart T. Advisor

TOOLS FOR MONEY DOT COM

13 Gotbucks Avenue Suite 33

Bel Air, CA 90077

(503) 309-1369 (800) 555-1333

FAX (734) 555-3355

Email: support@toolsformoney.com

https://Toolsformoney.com

mailto:support@toolsformoney.com

- CONFIDENTIAL REPORT -

FINANCIAL PLAN DISCLAIMER

Your 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. Also, taxes and inflation could

be much higher than projected, which will seriously impede your progress.

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.

https://Toolsformoney.com

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.

ABOUT THE RESULTING NUMBER TO THE RIGHT OF: PROBABILITY OF SUCCESS GIVEN ALL ASSUMPTIONS

In the retirement plan, and college savings plan reports, there is (usually) a percentage number shown. This is the

result of the Monte Carlo simulation. This is also known as “stress testing” your financial plan.

Your financial plan was created using actual real “cash-flow based” money software, and not “fake goal- or goals-

based software.”

The point is that using real financial planning software makes it so your financial plan has several more degrees

of magnitude more validity, when it comes to projecting your financial life into the future.

Fake investment software is just not capable of projecting accurate numbers more than a few years into the future,

simply because it totally ignores the very heart of financial planning – which pumps the life blood into the future

of your financial plan.

The heart of your financial plan, is your budget and cash flow; or earned and other incomes compared to your

actual real-world expenses. The difference between these two factors - annual surpluses and deficits, and

replacement costs, are usually what will end up determining your ability to reach your long-term goals (unless

you have a large pool of financial assets, or interest-free credit, that you can freely tap at any time, when there are

annual cash flow deficits).

Numbers more than 70% mean that your retirement plan has a good chance of succeeding, by weathering storms.

With numbers less than 70%, there is significant risk that more money will be needed than what was input into

the retirement plan, in order to remain in retirement without running out of money.

Numbers under 50% mean much more money will probably need to spent and invested than what's showing. This

is because what was input was a "rosy scenario," meaning your investment returns will probably be lower than

what was input, fees and expenses will be higher, and/or total costs will end up being much more than anticipated.

These things change, so it’s important to update your financial plan at least annually.

https://Toolsformoney.com

Fixed $36,160.53 17.5%

Variable $85,953.94 41.5%

Debt $21,000.00 10.1%

Taxes $59,315.25 28.6%

Surplus or Deficit $4,661.68 2.3%

$207,091.41 100.00%

Fixed $36,160.53 17.9%

Taxes $59,315.25 29.3%

Variable $85,953.94 42.5%

Debt $21,000.00 10.4%

$202,429.72 100.00%

Current Budget and Cash Flow Results

Budget Totals With Debt Hourly Totals (net average based on 40 hour work week):

Daily Budget Totals (net average daily income needed):

Weekly Budget Totals (net weekly cash needed):

Monthly Budget Totals (net monthly cash needed):

Annual Budget Totals (net annual cash income needed):

$68.54

$394.25

$2,742

$11,926

$143,114

Hourly Totals (gross average based on 40 hour work week):

Daily Budget Totals (gross average daily income needed):

Weekly Budget Totals (gross weekly cash needed):

Monthly Budget Totals (gross monthly cash needed):

Annual Budget Totals (gross annual cash income needed):

$68.54

$394.25

$2,742

$11,926

$143,114

Budget Totals Without Debt Hourly Totals (net average based on 40 hour work week):

Daily Budget Totals (net average daily income needed):

Weekly Budget Totals (net weekly cash needed):

Monthly Budget Totals (net monthly cash needed):

Annual Budget Totals (net annual cash income needed):

$58.48

$336.40

$2,339

$10,176

$122,114

Hourly Totals (gross average based on 40 hour work week):

Daily Budget Totals (gross average daily income needed):

Weekly Budget Totals (gross weekly cash needed):

Monthly Budget Totals (gross monthly cash needed):

Annual Budget Totals (gross annual cash income needed):

$58.48

$336.40

$2,339

$10,176

$122,114

Beginning of the Year's Budget Category Percentages Percent of Total Gross Budget Spent on Fixed Expenses: 25.3%

Percent Total Gross Budget Spent on Variable Expenses: 60.1%

Percent of Total Gross Budget Spent on Debt Repayment: 14.7%

Percent of Total Gross Budget Spent on Federal Taxes: 28.1%

Percent of Total Gross Budget Spent on State Taxes: 7.0%

Percent of Total Gross Budget Spent on FICA Taxes: 6.3%

Percent of Total Gross Budget Spent on Local Taxes: 0.0%

Percent of Total Gross Budget Spent on All Taxes: 41.4% Average / Effective Tax Rate (% gross income spent on taxes): 28.7%

Percent of Total Net Income Spent on Taxes: 40.2%

Fixed 17.5%

Variable 41.5%

Debt 10.1%

Taxes 28.6%

Surplus or Deficit 2.3%

EOY EXPENSE PERCENTAGE BREAKDOWN (WITH SURPLUS/DEFICIT)

Fixed 17.9%

Taxes 29.3%

Variable 42.5%

Debt 10.4%

END OF YEAR 1'S EXPENSE PERCENTAGE BREAKDOWN

First Year Surplus or Deficit With Debt Hourly Totals (net average based on 40 hour work week): $2.19

Daily Net Surplus or Deficit: $12.59

Weekly Net Surplus or Deficit: $88

Monthly Net Surplus or Deficit: $381

Annual Net Surplus or Deficit: $4,570

Percent Total Net Income In Surplus Or Deficit: 2.2%

Hourly Totals (gross average based on 40 hour work week): $3.07

Daily Gross Surplus or Deficit: $17.65

Weekly Gross Surplus or Deficit: $123

Monthly Gross Surplus or Deficit: $534

Annual Gross Surplus or Deficit: $6,406

Percent Total Gross Income In Surplus Or Deficit: 3.1%

First Year Surplus or Deficit Without Debt Hourly Totals (net average based on 40 hour work week): $12.25

Daily Net Surplus or Deficit: $70.44

Weekly Net Surplus or Deficit: $490

Monthly Net Surplus or Deficit: $2,131

Annual Net Surplus or Deficit: $25,570

Percent Total Net Income In Surplus Or Deficit: 12.4%

Hourly Totals (gross average based on 40 hour work week): $17.16

Daily Gross Surplus or Deficit: $98.73

Weekly Gross Surplus or Deficit: $687

Monthly Gross Surplus or Deficit: $2,987

Annual Gross Surplus or Deficit: $35,840

Percent Total Gross Income In Surplus Or Deficit: 17.3%

Percentage of Total Gross Income John's Percentage of Total Gross Income: 75.4%

Mary's Percentage of Total Gross Income: 24.6%

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000 GROSS INCOMES VS. ALL EXPENSES

Grand Total Annual Expenses:

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000 NET INCOMES VS. EXPENSES LESS TAXES

Grand Total Annual Expenses Less Taxes:

https://Toolsformoney.com

Federal

State

FICA

Local / Misc.

-$250,000

-$200,000

-$150,000

-$100,000

-$50,000

$50,000

$100,000

ANNUAL CASH FLOW SURPLUS OR (-) DEFICIT:

-$350,000

-$300,000

-$250,000

-$200,000

-$150,000

-$100,000

-$50,000

$50,000

$100,000

$150,000 COMPOUNDED CUMULATIVE TOTAL ANNUAL SURPLUS OR

DEFICIT:

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000 TAXES

Asset Income Taxes Federal State FICA Local / Misc.

$5,000

$10,000

$15,000

$20,000

$25,000 TOTAL ANNUAL DEBT PAYMENTS

Federal Taxes: $40,200 67.8%

State Taxes: $10,050 16.9%

FICA Taxes: $9,065 15.3%

Local and Other Taxes: $0 0.0%

$59,315 100.0%

Income Taxes as a Percentage of Gross Incomes

Federal: 20.0%

FICA (Social Security & Medicare) 5.0%

State 7.7%

Local / Miscellaneous 0.0%

Total: 32.7%

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000 TOTAL ANNUAL VARIABLE EXPENSES

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000 TOTAL ANNUAL FIXED EXPENSES (LESS TAXES)

Federal Taxes: 67.8%

State Taxes: 16.9%

FICA Taxes: 15.3%

TAXES AS A PERCENTAGE OF YEAR #1'S INCOME TAXES

Loan on: Rental

Property 14.3%

Loan on: House 57.1%

Loan on: Vechicles &

Stuff 28.6%

DEBT PAYMENT CATEGORIES

Children 23.2%

Entertainment / Hobbies / Toys

1.6%

Fees 0.4%

Food 6.4%

Health Care / Personal

Maintenance 2.2%

Home / Communications

8.9%

Income & Sales Taxes 29.4%

Everything Else / Misc. 0.5%

Money to Others 0.3%

Non-Home nor Vehicle

Insurance 2.5%

Debt Payments 10.4% Professional /

Education 0.1%

Replacements 2.4%

Savings / Investments

4.6%

Vehicles 6.9%

END OF CURRENT YEAR MAJOR EXPENSE CATEGORIES

https://Toolsformoney.com

Total Annual Expenses:

45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65

40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60

Annual 45 / 40 46 / 41 47 / 42 48 / 43 49 / 44 50 / 45 51 / 46 52 / 47 53 / 48 54 / 49 55 / 50 56 / 51 57 / 52 58 / 53 59 / 54 60 / 55 61 / 56 62 / 57 63 / 58 64 / 59 65 / 60

Expenses 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

Children $47,044 $56,398 $61,902 $67,951 $2,129 $1,964 $1,816 $1,685 $7,807 $14,632 $22,192 $68,898 $219,366 $247,051 $944 $313 $297 $282 $268 $255 $127

Entertainment / Hobbies / Toys $3,274 $3,372 $3,473 $3,578 $3,685 $3,796 $3,909 $4,027 $4,147 $4,272 $4,400 $4,532 $4,668 $4,808 $4,952 $4,601 $4,770 $4,946 $5,132 $5,326 $6,052

Fees $882 $908 $935 $964 $992 $1,022 $1,053 $1,084 $1,117 $1,150 $1,185 $1,221 $1,257 $1,295 $1,334 $1,374 $1,415 $1,457 $1,501 $1,546 $1,593

Food $13,044 $13,435 $13,838 $14,254 $14,681 $15,122 $15,575 $16,042 $16,524 $15,698 $14,913 $14,167 $13,459 $12,786 $12,146 $7,500 $7,725 $7,957 $8,195 $8,441 $8,695

Health Care / Personal Maintenance $4,487 $4,517 $4,554 $4,596 $4,645 $4,221 $4,305 $4,394 $4,487 $4,585 $4,688 $4,796 $4,909 $5,026 $5,149 $5,277 $5,410 $5,548 $5,691 $5,840 $5,994

Home $17,987 $18,527 $19,083 $19,655 $20,245 $20,852 $21,478 $22,122 $22,786 $22,200 $20,622 $20,361 $20,236 $19,845 $20,154 $20,529 $20,962 $21,444 $21,970 $22,535 $23,212

Income & Sales Taxes $59,576 $60,589 $61,622 $56,758 $57,966 $56,948 $47,846 $48,625 $50,568 $51,401 $60,585 $54,139 $55,044 $55,967 $51,603 $11,211 $11,439 $11,672 $11,910 $14,652 $4,336

Everything Else / Misc. $978 $1,008 $1,038 $1,069 $1,101 $1,134 $1,168 $1,203 $1,239 $1,276 $1,213 $1,152 $1,094 $1,040 $988 $938 $891 $847 $804 $764 $382

Money to Others $522 $537 $554 $570 $587 $605 $623 $642 $661 $681 $701 $722 $744 $766 $789 $400 $380 $361 $343 $326 $310

Non-Home nor Vehicle Insurance $5,100 $5,253 $5,411 $5,573 $5,740 $5,912 $6,090 $6,272 $6,461 $6,654 $6,854 $7,060 $6,939 $6,634 $5,287 $3,576 $3,683 $3,794 $3,907 $3,413 $3,516

Debt Payments $21,000 $21,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $0 $0 $0

Professional / Education $300 $309 $318 $328 $338 $348 $358 $369 $380 $391 $403 $415 $428 $441 $454 $0 $0 $0 $0 $0 $0

Replacements $4,901 $5,048 $5,199 $5,355 $5,516 $5,681 $5,851 $6,027 $6,208 $6,394 $6,586 $6,783 $6,987 $7,197 $7,412 $7,635 $7,864 $8,100 $8,343 $8,593 $8,851

Savings / Investments $9,300 $9,393 $9,487 $9,582 $9,678 $9,774 $9,872 $9,971 $10,071 $10,171 $10,273 $10,376 $10,479 $10,584 $10,690 $4,179 $4,221 $4,263 $4,306 $4,349 $0

Vehicles $14,035 $14,456 $14,890 $15,337 $15,797 $16,271 $16,759 $17,262 $17,779 $18,313 $18,862 $19,428 $20,011 $20,611 $21,229 $24,205 $24,931 $25,679 $26,450 $27,243 $28,061

$202,430 $214,751 $217,303 $220,568 $158,099 $158,649 $151,704 $154,725 $165,234 $169,819 $185,476 $226,050 $377,621 $406,052 $155,132 $103,739 $105,989 $108,351 $98,821 $103,285 $91,127

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000 CASH FLOW PROJECTIONS

Vehicles

Savings / Investments

Replacements

Professional / Education

Debt Payments

Non-Home nor Vehicle Insurance

Money to Others

Everything Else / Misc.

Income & Sales Taxes

Home

Health Care / Personal Maintenance

Food

Fees

Entertainment / Hobbies / Toys

Children

https://Toolsformoney.com

John's Non-Qualified $67,500

John's Qualified $75,000

Mary's Non-Qualified $75,000

Mary's Qualified $125,000

Joint/Community Property $550,000 Children's Assets $120,000

Total Liabilities -$160,000

Current Net Worth Statement June 6, 2016

Prepared Especially for:

John & Mary Sample

Assets & Liabilities John's Qualified Assets: $67,500

John's Non-Qualified Assets: $75,000 Mary's Qualified Assets: $75,000

Mary's Non-Qualified Assets: $125,000 Joint / Community Property Assets: $550,000

Children's Assets: $120,000

Total Assets $1,012,500

John's Liabilities: $0 Mary's Liabilities: $50,000

Joint / Community Property Liabilities: $110,000 Children's Liabilities: $0

Total Liabilities -$160,000

Net Worth $852,500

John's Non- Qualified

5.8%

John's Qualified

6.4%

Mary's Non-

Qualified 6%

Mary's Qualified

10.7%

Joint/Community Property 46.9%

Children's Assets 10.2%

Total Liabilities

-13.6%

NET WORTH WITH LIABILITIES

John's Non- Qualified

6.7%

John's Qualified

7.4% Mary's Non- Qualified

Mary's Qualified

12.3%

Joint/Community Property 54.3%

Children's Assets 11.9%

NET WORTH WITHOUT LIABILITIES

https://Toolsformoney.com

Assets Liabilities Net Worth John's Qualified $67,500 $0 $67,500

John's Non Qual $75,000 $0 $75,000

Mary's Qual $75,000 $0 $75,000

Mary's Non Qual $125,000 $50,000 $75,000

Joint $550,000 $110,000 $440,000

Kids $120,000 $0 $120,000

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Assets Liabilities Net Worth

CURRENT NET WORTH

Kids Joint Mary's Non-Qual Mary's Qual John's Non-Qual John's Qualified

John's Qualified

John's Non-

Qual Mary's Qual

Mary's Non-

Qual Joint Kids

Assets: $67,500 $75,000 $75,000 $125,000 $550,000 $120,000

Liabilities: $0 $0 $0 $50,000 $110,000 $0

Net Worth: $67,500 $75,000 $75,000 $75,000 $440,000 $120,000

https://Toolsformoney.com

Current Liabilities For Current Plan

June 6, 2016

Prepared Especially for:

John & Mary Sample

John's Liabilities Mary's Liabilities

401(k): $0 403(b): $0 TD IRA: $0 TIAA CREF IRA: $0

Merrill IRA: $0 American Funds: $0 Schwab: $0 Credit Union: $0

Bank Savings: $0 Rental Property: $50,000

John's Total: $0 Mary's Total: $50,000

Joint & Community Liabilities Children's Liabilities

House: $100,000 Junior: $0 Vechicles & Stuff: $10,000 Sallie Mea: $0

Credit Union: $0 $0 $0 Children's Total: $0

Joint Total: $110,000

Sample's Total Liabilities: $160,000

https://Toolsformoney.com

45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Current Projected Net Worth for John & Mary Sample Using End of Year Values

John's Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Age: 45 Age: 46 Age: 47 Age: 48 Age: 49 Age: 50 Age: 51 Age: 52 Age: 53 Age: 54 Age: 55 Age: 56 Age: 57 Age: 58 Age: 59 Age: 60

401(k) (@ 4%) $30,472 $33,904 $36,903 $40,158 $41,748 $48,937 $56,160 $61,200 $66,499 $71,806 $77,250 $84,986 $86,589 $73,406 $56,823 $41,508 TD IRA (@ 5%) $27,825 $31,104 $34,019 $37,204 $38,865 $45,802 $52,862 $57,940 $63,330 $68,796 $74,463 $82,433 $84,504 $72,021 $55,966 $41,274

Merrill IRA (@ 5%) $17,010 $19,315 $21,412 $23,694 $25,019 $29,743 $34,580 $38,148 $41,939 $45,795 $49,802 $55,362 $56,981 $48,789 $38,135 $29,907 Schwab (@ 5%) $27,510 $30,452 $33,018 $35,832 $37,165 $43,540 $49,999 $54,556 $59,390 $64,278 $69,340 $76,530 $78,225 $66,444 $51,411 $40,319

Bank Savings (@ 2%) $51,000 $52,020 $53,060 $54,122 $55,204 $56,308 $57,434 $58,583 $59,755 $60,950 $62,169 $63,412 $64,680 $65,974 $67,293 $67,293

End of Year Values of All John's Assets: $153,817 $166,793 $178,413 $191,009 $198,001 $224,331 $251,035 $270,428 $290,912 $311,625 $333,023 $362,723 $370,979 $326,634 $269,628 $220,301

John's Total Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 End of Year Values of All John's Assets, Minus Liabilities: $153,817 $166,793 $178,413 $191,009 $198,001 $224,331 $251,035 $270,428 $290,912 $311,625 $333,023 $362,723 $370,979 $326,634 $269,628 $220,301

End of Year Values of All Client's Qualified Assets: $75,307 $84,322 $92,334 $101,056 $105,632 $124,483 $143,602 $157,289 $171,767 $186,397 $201,514 $222,781 $228,073 $194,216 $150,924 $112,689 End of Year Values of All Client's Personal Assets: $78,510 $82,472 $86,078 $89,954 $92,369 $99,848 $107,433 $113,139 $119,145 $125,228 $131,508 $139,942 $142,905 $132,418 $118,704 $107,612

Mary's Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Age: 40 Age: 41 Age: 42 Age: 43 Age: 44 Age: 45 Age: 46 Age: 47 Age: 48 Age: 49 Age: 50 Age: 51 Age: 52 Age: 53 Age: 54 Age: 55

403(b) (@ 4%) $38,896 $43,384 $47,324 $51,598 $53,734 $63,079 $72,477 $79,067 $85,996 $92,941 $100,069 $110,170 $112,325 $95,301 $73,848 $82,602 TIAA CREF IRA (@ 4%) $27,248 $29,886 $32,120 $34,561 $35,551 $41,309 $47,054 $50,932 $55,007 $59,068 $63,224 $69,238 $70,232 $59,232 $45,549 $50,611 American Funds (@ 5%) $15,750 $16,705 $17,408 $18,208 $18,219 $20,694 $23,129 $24,612 $26,177 $27,724 $29,307 $31,752 $31,866 $26,483 $19,914 $21,700

Credit Union (@ 2%) $25,500 $26,010 $26,530 $27,061 $27,602 $28,154 $28,717 $29,291 $29,877 $30,475 $31,084 $31,706 $32,340 $32,987 $33,647 $34,320 Rental Property (@ 6%) $106,000 $112,360 $119,102 $126,248 $133,823 $141,852 $150,363 $159,385 $168,948 $179,085 $189,830 $201,220 $213,293 $226,090 $239,656 $254,035

End of Year Values of All Spouse's Assets: $213,394 $228,345 $242,484 $257,674 $268,928 $295,088 $321,740 $343,287 $366,005 $389,293 $413,514 $444,086 $460,056 $440,093 $412,613 $443,267

Mary's Total Liabilities $45,976 $41,671 $37,064 $32,134 $26,860 $21,216 $15,178 $8,716 $1,803 $0 $0 $0 $0 $0 $0 $0 End of Year Values of All Mary's Assets, Minus Liabilities: $167,418 $186,675 $205,421 $225,540 $242,068 $273,872 $306,562 $334,571 $364,202 $389,293 $413,514 $444,086 $460,056 $440,093 $412,613 $443,267

End of Year Values of All Spouse's Qualified Assets: $81,894 $89,975 $96,853 $104,366 $107,504 $125,082 $142,659 $154,611 $167,180 $179,733 $192,599 $211,160 $214,423 $181,016 $139,310 $154,912 End of Year Values of All Spouse's Personal Assets: $131,500 $138,370 $145,632 $153,309 $161,425 $170,006 $179,080 $188,676 $198,825 $209,560 $220,914 $232,926 $245,633 $259,077 $273,303 $288,355

Jointly Held / Community Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 House (@ 5%) $210,000 $220,500 $231,525 $243,101 $255,256 $268,019 $281,420 $295,491 $310,266 $325,779 $342,068 $359,171 $377,130 $395,986 $415,786 $436,575

Vechicles & Stuff (@ -5%) $85,500 $81,225 $77,164 $73,306 $69,640 $66,158 $62,850 $59,708 $56,722 $53,886 $51,192 $48,632 $46,201 $43,891 $41,696 $39,611 Credit Union (@ 2%) $265,200 $273,252 $276,611 $281,046 $273,181 $301,440 $327,273 $338,311 $349,543 $359,626 $369,294 $388,673 $378,925 $305,914 $223,458 $160,090

End of Year Values of All Joint Assets: $560,700 $574,977 $585,300 $597,453 $598,078 $635,617 $671,544 $693,510 $716,531 $739,291 $762,554 $796,477 $802,256 $745,791 $680,940 $636,276

Joint & Community Total Liabilities $104,158 $97,581 $90,147 $86,461 $82,554 $78,413 $74,023 $69,369 $64,436 $59,208 $53,665 $47,791 $41,563 $34,962 $27,965 $20,548 EOY Values of All Joint Assets, Minus Liabilities: $456,542 $477,396 $495,153 $510,991 $515,523 $557,204 $597,521 $624,141 $652,095 $680,083 $708,889 $748,686 $760,692 $710,829 $652,975 $615,728

Children's Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Junior's College Funds (6%) $42,438 $58,933 $77,684 $98,945 $103,832 $108,962 $114,344 $119,993 $125,921 $132,141 $76,116 $13,803 $0 $0 $0 $0

Sallie Mea's College Stocks (6%) $55,592 $76,337 $99,907 $126,622 $132,877 $139,441 $146,329 $153,558 $161,144 $109,857 $52,730 $0 $0 $0 $0 $0 Doogy's College CDs (6%) $68,746 $93,741 $122,131 $154,299 $161,921 $169,920 $178,314 $187,123 $140,226 $87,906 $29,696 $0 $0 $0 $0 $0

End of Year Values of All Children's Assets: $166,776 $229,012 $299,722 $379,865 $398,630 $418,322 $438,987 $460,673 $427,291 $329,905 $158,542 $13,803 $0 $0 $0 $0 Children's Total Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

EOY Values of All Children's Assets, Minus Liabilities: $166,776 $229,012 $299,722 $379,865 $398,630 $418,322 $438,987 $460,673 $427,291 $329,905 $158,542 $13,803 $0 $0 $0 $0

All Assets: $1,094,687 $1,199,127 $1,305,919 $1,426,001 $1,463,637 $1,573,358 $1,683,306 $1,767,899 $1,800,739 $1,770,113 $1,667,632 $1,617,089 $1,633,290 $1,512,518 $1,363,181 $1,299,845

Liabilities 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

John's Total Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Mary's Rental Property $45,976 $41,671 $37,064 $32,134 $26,860 $21,216 $15,178 $8,716 $1,803 $0 $0 $0 $0 $0 $0 $0

Mary's Total Liabilities $45,976 $41,671 $37,064 $32,134 $26,860 $21,216 $15,178 $8,716 $1,803 $0 $0 $0 $0 $0 $0 $0

Joint: House $96,905 $93,625 $90,147 $86,461 $82,554 $78,413 $74,023 $69,369 $64,436 $59,208 $53,665 $47,791 $41,563 $34,962 $27,965 $20,548

Joint: Vechicles & Stuff $7,253 $3,956 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Joint & Community Total Liabilities $104,158 $97,581 $90,147 $86,461 $82,554 $78,413 $74,023 $69,369 $64,436 $59,208 $53,665 $47,791 $41,563 $34,962 $27,965 $20,548

Children's Total Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

All Liabilities: $150,134 $139,251 $127,211 $118,596 $109,414 $99,629 $89,200 $78,086 $66,239 $59,208 $53,665 $47,791 $41,563 $34,962 $27,965 $20,548

All Assets Minus All Liabilities: $944,553 $1,059,876 $1,178,708 $1,307,405 $1,354,223 $1,473,729 $1,594,106 $1,689,813 $1,734,500 $1,710,905 $1,613,967 $1,569,299 $1,591,727 $1,477,556 $1,335,216 $1,279,297

https://Toolsformoney.com

45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Proposed Projected Net Worth for John & Mary Sample Using End of Year Values

401(k) (@ 6%) $31,058 $34,849 $38,886 $43,185 $47,761 $52,632 $57,816 $63,330 $69,196 $75,435 $82,068 $89,121 $96,618 $104,587 $96,730 $89,879 TD IRA (@ 7%) $28,355 $31,961 $35,835 $39,998 $44,468 $49,267 $54,420 $59,950 $65,884 $72,251 $79,082 $86,408 $94,265 $102,691 $95,872 $89,922

Scottrade IRA (@ 8%) $17,496 $17,898 $15,693 $13,728 $4,474 $14,110 $23,198 $24,767 $26,402 $27,865 $29,690 $38,250 $41,949 $46,501 $44,830 $43,384 Schwab (@ 6%) $27,772 $30,723 $33,864 $37,206 $40,762 $44,545 $48,568 $52,846 $57,394 $62,229 $67,368 $72,829 $78,632 $84,797 $80,236 $76,211

Mutual Funds (@ 7%) $53,500 $57,245 $61,252 $65,540 $70,128 $75,037 $80,289 $85,909 $91,923 $98,358 $105,243 $112,610 $120,492 $128,927 $120,366 $112,896

End of Year Values of All John's Assets: $158,181 $172,675 $185,530 $199,656 $207,593 $235,591 $264,291 $286,802 $310,799 $336,137 $363,451 $399,218 $431,957 $467,503 $438,036 $412,293

John's Total Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 End of Year Values of All John's Assets, Minus Liabilities: $158,181 $172,675 $185,530 $199,656 $207,593 $235,591 $264,291 $286,802 $310,799 $336,137 $363,451 $399,218 $431,957 $467,503 $438,036 $412,293

End of Year Values of All Client's Qualified Assets: $76,909 $84,707 $90,414 $96,910 $96,703 $116,009 $135,434 $148,047 $161,482 $175,551 $190,840 $213,780 $232,833 $253,779 $237,433 $223,186 End of Year Values of All Client's Personal Assets: $81,272 $87,968 $95,116 $102,746 $110,890 $119,582 $128,857 $138,755 $149,317 $160,586 $172,610 $185,438 $199,124 $213,724 $200,603 $189,107

403(b) (@ 5%) $39,270 $43,779 $48,538 $53,562 $58,862 $64,454 $70,351 $76,571 $83,128 $90,040 $97,326 $105,004 $113,094 $121,616 $130,594 $140,049 TIAA CREF IRA (@ 5%) $27,510 $30,158 $32,951 $35,897 $39,003 $42,278 $45,729 $49,366 $53,199 $57,237 $61,491 $65,971 $70,689 $75,658 $80,889 $86,396

Scottrade (@ 8%) $16,200 $17,496 $18,896 $20,407 $22,040 $23,803 $25,707 $27,764 $29,985 $32,384 $34,975 $37,773 $40,794 $44,058 $47,583 $51,389 TD Ameritrade (@ 8%) $27,000 $26,853 $24,042 $21,410 $11,422 $20,252 $28,456 $29,056 $29,630 $29,934 $30,494 $37,672 $39,865 $42,775 $47,048 $50,812 Rental Property (@ 6%) $106,000 $112,360 $119,102 $126,248 $133,823 $141,852 $150,363 $159,385 $168,948 $179,085 $189,830 $201,220 $213,293 $226,090 $239,656 $254,035

End of Year Values of All Spouse's Assets: $215,980 $230,646 $243,529 $257,524 $265,150 $292,638 $320,607 $342,142 $364,890 $388,680 $414,115 $447,639 $477,735 $510,197 $545,769 $582,681

Mary's Total Liabilities $45,976 $41,671 $37,064 $32,134 $26,860 $21,216 $15,178 $8,716 $1,803 $0 $0 $0 $0 $0 $0 $0 End of Year Values of All Mary's Assets, Minus Liabilities: $170,004 $188,975 $206,465 $225,389 $238,290 $271,422 $305,429 $333,425 $363,087 $388,680 $414,115 $447,639 $477,735 $510,197 $545,769 $582,681

End of Year Values of All Spouse's Qualified Assets: $82,980 $91,433 $100,385 $109,866 $119,905 $130,534 $141,788 $153,701 $166,312 $179,661 $193,791 $208,747 $224,577 $241,332 $259,065 $277,835 End of Year Values of All Spouse's Personal Assets: $133,000 $139,213 $143,144 $147,658 $145,245 $162,104 $178,819 $188,441 $198,578 $209,019 $220,323 $238,892 $253,158 $268,865 $286,704 $304,847

Vechicles & Stuff $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 Joint Scottrade (@ 8%) $280,800 $298,650 $312,624 $328,523 $331,404 $373,748 $416,816 $446,808 $479,052 $513,243 $550,631 $604,160 $650,850 $702,360 $677,122 $655,285

End of Year Values of All Joint Assets: $580,800 $609,150 $634,149 $661,624 $676,660 $731,767 $788,236 $832,299 $879,317 $929,022 $982,699 $1,053,332 $1,117,980 $1,188,346 $1,182,907 $1,181,860

Joint & Community Total Liabilities $103,500 $96,301 $88,286 $84,065 $79,675 $75,109 $70,361 $65,423 $60,287 $54,946 $49,391 $43,615 $37,607 $31,358 $24,860 $18,102 EOY Values of All Joint Assets, Minus Liabilities: $477,300 $512,849 $545,863 $577,560 $596,985 $656,657 $717,875 $766,876 $819,030 $874,076 $933,308 $1,009,717 $1,080,374 $1,156,988 $1,158,047 $1,163,758

Children's Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Junior's College Funds (7%) $43,364 $61,148 $81,576 $104,969 $111,729 $118,925 $126,583 $134,735 $143,412 $152,648 $121,171 $85,825 $45,993 $0 $0 $0

Sallie Mea's College Funds (7%) $56,786 $79,182 $104,895 $134,324 $142,975 $152,182 $161,983 $172,415 $183,518 $155,945 $124,925 $89,827 $50,259 $1,517 $1,617 $1,724 Doogy's College Funds (7%) $70,208 $97,216 $128,213 $163,679 $174,220 $185,440 $197,382 $210,094 $186,040 $158,923 $128,099 $93,211 $53,866 $5,477 $5,838 $6,223

End of Year Values of All Children's Assets: $170,357 $237,546 $314,684 $402,973 $428,924 $456,547 $485,949 $517,244 $512,971 $467,516 $374,195 $268,863 $150,117 $6,994 $7,455 $7,947 Children's Total Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

EOY Values of All Children's Assets, Minus Liabilities: $170,357 $237,546 $314,684 $402,973 $428,924 $456,547 $485,949 $517,244 $512,971 $467,516 $374,195 $268,863 $150,117 $6,994 $7,455 $7,947

All Assets: $1,125,318 $1,250,017 $1,377,892 $1,521,778 $1,578,327 $1,716,543 $1,859,082 $1,978,487 $2,067,977 $2,121,355 $2,134,460 $2,169,052 $2,177,789 $2,173,040 $2,174,167 $2,184,782

Liabilities 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

John's Total Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Mary's Rental Property $45,976 $41,671 $37,064 $32,134 $26,860 $21,216 $15,178 $8,716 $1,803 $0 $0 $0 $0 $0 $0 $0

Mary's Total Liabilities $45,976 $41,671 $37,064 $32,134 $26,860 $21,216 $15,178 $8,716 $1,803 $0 $0 $0 $0 $0 $0 $0

Joint: House $96,247 $92,345 $88,286 $84,065 $79,675 $75,109 $70,361 $65,423 $60,287 $54,946 $49,391 $43,615 $37,607 $31,358 $24,860 $18,102

Joint: Vechicles & Stuff $7,253 $3,956 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Joint & Community Total Liabilities $103,500 $96,301 $88,286 $84,065 $79,675 $75,109 $70,361 $65,423 $60,287 $54,946 $49,391 $43,615 $37,607 $31,358 $24,860 $18,102

Children's Total Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

All Liabilities: $149,476 $137,971 $125,350 $116,199 $106,535 $96,326 $85,539 $74,139 $62,090 $54,946 $49,391 $43,615 $37,607 $31,358 $24,860 $18,102

All Assets Minus All Liabilities: $975,842 $1,112,046 $1,252,542 $1,405,578 $1,471,792 $1,620,217 $1,773,543 $1,904,348 $2,005,887 $2,066,409 $2,085,068 $2,125,437 $2,140,183 $2,141,682 $2,149,307 $2,166,680

https://Toolsformoney.com

John & Mary Sample Financial Independence Analysis

Illustration for Current Plan (before recommendations)

June 6, 2016

Annual Income Goals*

Current Age

Retirement Age

Income Goal

Inflation

Combined Goal: $64646 John: 45 Life Expectancy:

60 83

3.0%

Mary: 40 60 Overall Tax Rate: 20% ** Life Expectancy: 83 SS Inclusion Rate: 50%***

* In today's dollars. Net after-tax, 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: 56.8%

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

$734,200 $4030 3.0%

Probability of Success Given All Assumptions: 12%

* 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.

https://Toolsformoney.com

Financial Independence Analysis: Asset Summary

Illustration for Current Plan (before recommendations)

Current (or Age when Annual Age when Age when Inflation Rate Age when Total % Income

Asset present) Percentage Asset Becomes Additions Additions Additions on Annual Payout Payout Return Subject

Name Asset Value of Assets Effective to Asset Begin Ends Contributions Begins Method Assumed to Taxes

John's 401(k) $27,500 4.6% 45 $1,800 45 59 1.0% 60 Flexible Asset* 4.0% 100.0%

Mary's 403(b) $35,000 5.8% 40 $2,400 40 59 1.0% 60 Flexible Asset* 4.0% 100.0%

John's TD IRA $25,000 4.1% 45 $1,500 45 59 1.0% 60 Flexible Asset* 5.0% 100.0%

Mary's TIAA CREF IRA $25,000 4.1% 40 $1,200 40 59 1.0% 60 Flexible Asset* 4.0% 100.0%

John's Merrill IRA $15,000 2.5% 45 $1,200 45 59 1.0% 60 Flexible Asset* 5.0% 25.0%

Mary's American Funds $15,000 2.5% 40 $0 n/a n/a n/a 60 Flexible Asset* 5.0% 25.0%

John's Schwab $25,000 4.1% 45 $1,200 45 59 1.0% 60 Flexible Asset* 5.0% 25.0%

Mary's Credit Union $25,000 4.1% 40 $0 n/a n/a n/a 60 Yield Only @ 2% 2.0% 100.0%

John's Bank Savings $50,000 8.3% 45 $0 n/a n/a n/a 60 Yield Only @ 2% 2.0% 100.0%

Mary's Rental Property $100,000 16.6% 40 $0 n/a n/a n/a 60 Yield Only @ 5% 6.0% 100.0%

Credit Union

Totals:

$260,000

$602,500

43.2% 45 $0

$9,300

n/a n/a n/a 60 Flexible Asset* 2.0% 100.0%

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.

Current Primary Non-Asset Retirement Income Summary*

Source of First Year's Annual Average Total Income's Non-asset Pretax Pretax Income Beginning Ending Duration

Retirement Incomes Incomes Incomes Over Plan Age Age in Years Life

Annual Tax Rate of Inclusion

Change Over Rate Plan Life (at 20% Tax Rate)

John's Social Security $21,434 $25,379 $862,884 67 100 34

Mary's Social Security $15,699 $18,108 $525,121 67 95 29

1.0% 50%

John's Salary & Wages $84,000 $96,843 $1,452,647 45 59 15

Mary's Salary & Wages Income $48,000 $44,933 $898,653 40 59 20

1.9% 100%

-1.9% 100%

John's Other Earned Income $1,000 $1,078 $4,310 70 73 4

Mary's Other Earned Income $500 $536 $4,291 62 69 8

3.7% 100%

1.7% 100%

John's Defined Benefit Pension $10,000 $10,000 $370,000 64 100 37

Mary's Defined Benefit Pension $1,000 $1,444 $51,994 60 95 36

0.0% 100%

1.9% 100%

https://Toolsformoney.com

Financial Independence Analysis Annual Summary Numbers

Illustration for Current Plan (before recommendations)

John's Age

Mary's Age

Tax Rate

Year # Year Combined

Annual Income Goal

Combined Annual

Before-tax Social

Security

Combined Annual

Before-tax Non-asset Income

Combined Annual

Before-tax Asset

Income

Combined Annual Income

Surplus or Deficit (-)

Percent of Annual Income

Goal Being Met

(56.8%)

End of Year Balance of

Capital

Average Weighted Rate of

Return on Assets

Percent Change in

Asset Balance from Previous

Year

Present Value of Additional

Capital Needed at Retirement

Present Value of Additional

Capital Needed Now

45 40 20.0% 1 2016 $0 $0 $0 $0 $0 N/A $632,400 3.4% n/a $0 $0

46 41 20.0% 2 2017 $0 $0 $0 $0 $0 N/A $668,300 3.4% 5.7% $0 $0

47 42 20.0% 3 2018 $0 $0 $0 $0 $0 N/A $697,500 3.5% 4.4% $0 $0

48 43 20.0% 4 2019 $0 $0 $0 $0 $0 N/A $729,700 3.5% 4.6% $0 $0

49 44 20.0% 5 2020 $0 $0 $0 $0 $0 N/A $740,100 3.6% 1.4% $0 $0

50 45 20.0% 6 2021 $0 $0 $0 $0 $0 N/A $820,800 3.6% 10.9% $0 $0

51 46 20.0% 7 2022 $0 $0 $0 $0 $0 N/A $900,000 3.6% 9.6% $0 $0

52 47 20.0% 8 2023 $0 $0 $0 $0 $0 N/A $952,000 3.6% 5.8% $0 $0

53 48 20.0% 9 2024 $0 $0 $0 $0 $0 N/A $1,006,400 3.7% 5.7% $0 $0

54 49 20.0% 10 2025 $0 $0 $0 $0 $0 N/A $1,060,500 3.7% 5.4% $0 $0

55 50 20.0% 11 2026 $0 $0 $0 $0 $0 N/A $1,115,800 3.7% 5.2% $0 $0

56 51 20.0% 12 2027 $0 $0 $0 $0 $0 N/A $1,195,400 3.7% 7.1% $0 $0

57 52 20.0% 13 2028 $0 $0 $0 $0 $0 N/A $1,209,900 3.8% 1.2% $0 $0

58 53 20.0% 14 2029 $0 $0 $0 $0 $0 N/A $1,072,600 3.9% -11.3% $0 $0

59 54 20.0% 15 2030 $0 $0 $0 $0 $0 N/A $905,600 4.0% -15.6% $0 $0

60 55 19.0% 16 2031 $103,700 $0 $0 $103,700 $0 100.0% $823,600 4.1% -9.1% $0 $0

61 56 19.0% 17 2032 $105,900 $0 $0 $105,900 $0 100.0% $731,500 4.3% -11.2% $0 $0

62 57 19.0% 18 2033 $108,300 $0 $0 $108,300 $0 100.0% $634,500 4.6% -13.3% $0 $0

63 58 19.0% 19 2034 $98,800 $0 $0 $70,100 -$28,600 71.0% $595,000 4.7% -6.2% $28,600 $16,300

64 59 19.0% 20 2035 $103,200 $0 $7,500 $1,000 -$94,600 8.2% $626,200 4.7% 5.2% $123,300 $68,700

65 60 18.0% 21 2036 $91,100 $0 $11,500 $79,500 $0 100.0% $557,200 4.8% -11.0% $123,300 $68,700

66 61 18.0% 22 2037 $93,700 $0 $11,600 $82,100 $0 100.0% $482,200 4.9% -13.5% $123,300 $68,700

67 62 18.0% 23 2038 $96,600 $21,400 $12,100 $65,000 $0 100.0% $434,800 5.0% -9.8% $123,300 $68,700

68 63 18.0% 24 2039 $99,500 $21,600 $12,200 $15,200 -$52,300 49.2% $438,100 5.0% 0.8% $169,800 $94,500

69 64 18.0% 25 2040 $101,800 $21,800 $12,300 $15,300 -$54,100 48.5% $441,500 5.1% 0.8% $216,500 $120,300

70 65 18.0% 26 2041 $96,900 $22,000 $13,100 $15,500 -$48,100 52.2% $444,800 5.1% 0.7% $256,800 $142,700

71 66 18.0% 27 2042 $99,800 $22,300 $13,300 $15,600 -$50,500 51.3% $448,200 5.1% 0.8% $298,000 $165,400

72 67 18.0% 28 2043 $102,800 $38,200 $13,400 $15,800 -$38,700 65.6% $451,700 5.1% 0.8% $328,600 $182,400

73 68 18.0% 29 2044 $105,800 $38,600 $13,500 $15,900 -$41,100 64.3% $455,200 5.1% 0.8% $360,100 $199,800

74 69 18.0% 30 2045 $108,600 $38,900 $12,800 $16,000 -$44,200 62.3% $458,700 5.1% 0.8% $393,000 $218,100

75 70 18.0% 31 2046 $111,700 $39,300 $12,400 $16,200 -$47,100 60.8% $462,200 5.1% 0.8% $427,100 $236,900

76 71 18.0% 32 2047 $114,900 $39,700 $12,500 $16,300 -$49,700 59.6% $465,800 5.1% 0.8% $462,000 $256,300

77 72 18.0% 33 2048 $118,200 $40,100 $12,600 $16,500 -$52,500 58.5% $469,400 5.1% 0.8% $497,800 $276,100

https://Toolsformoney.com

John & Mary Sample Financial Independence Analysis

Illustration for Proposed Plan

June 6, 2016

Annual Income Goals*

Current Age

Retirement Age

Income Goal

Inflation

Combined Goal: $76574 John: 45 Life Expectancy:

59 83

3.0%

Mary: 40 59 Overall Tax Rate: 21% ** Life Expectancy: 83 SS Inclusion Rate: 50%***

* In today's dollars. Net after-tax, 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 3.0%

Probability of Success Given All Assumptions: 37%

* 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.

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.

https://Toolsformoney.com

Financial Independence Analysis: Asset Summary

Illustration for Proposed Plan

Proposed (or Age when Annual Age when Age when Inflation Rate Age when Total % Income

Asset present) Percentage Asset Becomes Additions Additions Additions on Annual Payout Payout Return Subject

Name Asset Value of Assets Effective to Asset Begin Ends Contributions Begins Method Assumed to Taxes

John's 401(k) $27,500 4.6% 45 $1,800 45 58 1.0% 59 Flexible Asset* 6.0% 100.0%

Mary's 403(b) $35,000 5.8% 40 $2,400 40 58 1.0% 59 Flexible Asset* 5.0% 100.0%

John's TD IRA $25,000 4.1% 45 $1,500 45 58 1.0% 59 Flexible Asset* 7.0% 100.0%

Mary's TIAA CREF IRA $25,000 4.1% 40 $1,200 40 58 1.0% 59 Flexible Asset* 5.0% 100.0%

John's Scottrade IRA $15,000 2.5% 45 $1,200 45 58 1.0% 59 Flexible Asset* 8.0% 25.0%

Mary's Scottrade $15,000 2.5% 40 $0 n/a n/a n/a 59 Flexible Asset* 8.0% 25.0%

John's Schwab $25,000 4.1% 45 $1,200 45 58 1.0% 59 Flexible Asset* 6.0% 25.0%

Mary's TD Ameritrade $25,000 4.1% 40 $0 n/a n/a n/a 59 Flexible Asset* 8.0% 25.0%

John's Mutual Funds $50,000 8.3% 45 $0 n/a n/a n/a 59 Flexible Asset* 7.0% 100.0%

Mary's Rental Property $100,000 16.6% 40 $0 n/a n/a n/a 59 Yield Only @ 5% 6.0% 100.0%

Joint Scottrade

Totals:

$260,000

$602,500

43.2% 45 $0

$9,300

n/a n/a n/a 59 Flexible Asset* 8.0% 25.0%

Notes: If an asset above has $0 in current value, and $0 in annual additions, please refer to the separately printed asset page.

Proposed Primary Non-Asset Retirement Income Summary*

Source of First Year's Annual Average Total Income's Non-asset Pretax Pretax Income Beginning Ending Duration

Retirement Incomes Incomes Incomes Over Plan Age Age in Years Life

Annual Tax Rate of Inclusion

Change Over Rate Plan Life (at 21% Tax Rate)

John's Social Security $14,567 $17,709 $690,652 62 100 39

Mary's Social Security $10,829 $12,822 $435,952 62 95 34

1.0% 50%

John's Salary & Wages $84,000 $95,844 $1,341,811 45 58 14

Mary's Salary & Wages Income $48,000 $45,588 $866,180 40 58 19

1.9% 100%

-2.1% 100%

John's Other Earned Income $1,000 $1,078 $4,310 70 73 4

Mary's Other Earned Income $500 $536 $4,291 62 69 8

3.7% 100%

1.7% 100%

John's Defined Benefit Pension $10,000 $10,000 $370,000 64 100 37

Mary's Defined Benefit Pension $1,000 $1,444 $51,994 60 95 36

0.0% 100%

1.9% 100%

https://Toolsformoney.com

Financial Independence Analysis Annual Summary Numbers

Illustration for Proposed Plan

John's Age

Mary's Age

Tax Rate

Year # Year Combined

Annual Income Goal

Combined Annual

Before-tax Social

Security

Combined Annual

Before-tax Non-asset Income

Combined Annual

Before-tax Asset Income

Combined Annual Income

Surplus or Deficit (-)

Percent of Annual Income

Goal Being Met (100%)

End of Year Balance of

Capital

Average Weighted Rate of

Return on Assets

Percent Change in

Asset Balance from Previous

Year

Present Value of Additional

Capital Needed at Retirement

Present Value of Additional

Capital Needed Now

45 40 21.0% 1 2016 $0 $0 $0 $0 $0 N/A $654,900 7.1% n/a $0 $0

46 41 21.0% 2 2017 $0 $0 $0 $0 $0 N/A $701,900 7.0% 7.2% $0 $0

47 42 21.0% 3 2018 $0 $0 $0 $0 $0 N/A $741,600 7.0% 5.7% $0 $0

48 43 21.0% 4 2019 $0 $0 $0 $0 $0 N/A $785,700 7.0% 5.9% $0 $0

49 44 21.0% 5 2020 $0 $0 $0 $0 $0 N/A $804,100 6.9% 2.3% $0 $0

50 45 21.0% 6 2021 $0 $0 $0 $0 $0 N/A $901,900 7.0% 12.2% $0 $0

51 46 21.0% 7 2022 $0 $0 $0 $0 $0 N/A $1,001,700 7.0% 11.1% $0 $0

52 47 21.0% 8 2023 $0 $0 $0 $0 $0 N/A $1,075,700 7.0% 7.4% $0 $0

53 48 21.0% 9 2024 $0 $0 $0 $0 $0 N/A $1,154,700 7.0% 7.3% $0 $0

54 49 21.0% 10 2025 $0 $0 $0 $0 $0 N/A $1,238,000 7.0% 7.2% $0 $0

55 50 21.0% 11 2026 $0 $0 $0 $0 $0 N/A $1,328,100 7.0% 7.3% $0 $0

56 51 21.0% 12 2027 $0 $0 $0 $0 $0 N/A $1,451,000 7.0% 9.3% $0 $0

57 52 21.0% 13 2028 $0 $0 $0 $0 $0 N/A $1,560,500 7.0% 7.5% $0 $0

58 53 21.0% 14 2029 $0 $0 $0 $0 $0 N/A $1,680,000 7.0% 7.7% $0 $0

59 54 20.0% 15 2030 $119,300 $0 $0 $119,300 $0 100.0% $1,660,900 7.0% -1.1% $0 $0

60 55 20.0% 16 2031 $110,100 $0 $0 $110,100 $0 100.0% $1,650,200 7.0% -0.6% $0 $0

61 56 20.0% 17 2032 $112,400 $0 $0 $112,400 $0 100.0% $1,635,600 6.9% -0.9% $0 $0

62 57 20.0% 18 2033 $115,000 $14,500 $0 $101,900 $0 100.0% $1,632,300 6.9% -0.2% $0 $0

63 58 20.0% 19 2034 $105,600 $14,700 $0 $92,400 $0 100.0% $1,639,600 6.9% 0.4% $0 $0

64 59 19.0% 20 2035 $95,300 $14,800 $10,700 $71,100 $0 100.0% $1,666,300 6.9% 1.6% $0 $0

65 60 19.0% 21 2036 $98,500 $15,000 $11,500 $73,300 $0 100.0% $1,692,500 6.9% 1.6% $0 $0

66 61 19.0% 22 2037 $101,300 $15,100 $11,600 $75,900 $0 100.0% $1,717,700 6.9% 1.5% $0 $0

67 62 19.0% 23 2038 $104,400 $26,100 $12,100 $68,700 $0 100.0% $1,753,700 6.9% 2.1% $0 $0

68 63 19.0% 24 2039 $107,500 $26,400 $12,200 $71,400 $0 100.0% $1,789,300 6.9% 2.0% $0 $0

69 64 19.0% 25 2040 $109,900 $26,600 $12,300 $73,500 $0 100.0% $1,825,100 7.0% 2.0% $0 $0

70 65 19.0% 26 2041 $105,300 $26,900 $13,100 $67,800 $0 100.0% $1,870,500 7.0% 2.5% $0 $0

71 66 19.0% 27 2042 $108,400 $27,200 $13,300 $70,500 $0 100.0% $1,916,300 7.0% 2.4% $0 $0

72 67 19.0% 28 2043 $111,700 $27,400 $13,400 $73,300 $0 100.0% $1,962,100 7.0% 2.4% $0 $0

73 68 19.0% 29 2044 $115,000 $27,700 $13,500 $76,300 $0 100.0% $2,008,100 7.0% 2.3% $0 $0

74 69 19.0% 30 2045 $118,000 $28,000 $12,800 $79,800 $0 100.0% $2,053,400 7.0% 2.3% $0 $0

75 70 19.0% 31 2046 $121,400 $28,300 $12,400 $83,300 $0 100.0% $2,098,200 7.0% 2.2% $0 $0

76 71 19.0% 32 2047 $124,900 $28,500 $12,500 $86,400 $0 100.0% $2,142,800 7.1% 2.1% $0 $0

77 72 19.0% 33 2048 $128,500 $28,800 $12,600 $89,700 $0 100.0% $2,187,100 7.1% 2.1% $0 $0

https://Toolsformoney.com

Financial Independence Analysis Annual Summary Numbers, continued

John's Age

Mary's Age

Tax Rate

Year # Year Combined

Annual Income Goal

Combined Annual Social

Security

Combined Combined

Annual Non- Annual Asset

asset Income

Income

Combined Annual Income

Surplus or Deficit (-)

Percent of Annual Income

Goal Being Met (100%)

End of Year Balance of

Capital

Average Weighted Rate of

Return on Assets

Percent Change in

Asset Balance from Previous

Year

Present Value of Additional

Capital Needed at Retirement

Present Value of Additional

Capital Needed Now

78 73 19.0% 34 2049 $132,200 $29,100 $36,900 $93,100 $0 100.0% $2,230,900 7.1% 2.0% $0 $0

79 74 19.0% 35 2050 $136,100 $29,400 $37,300 $96,500 $0 100.0% $2,274,000 7.1% 1.9% $0 $0

80 75 19.0% 36 2051 $140,100 $29,700 $37,600 $100,100 $0 100.0% $2,316,300 7.1% 1.9% $0 $0

81 76 19.0% 37 2052 $144,200 $30,000 $38,000 $103,800 $0 100.0% $2,357,700 7.1% 1.8% $0 $0

82 77 19.0% 38 2053 $148,400 $30,300 $38,400 $107,700 $0 100.0% $2,397,900 7.1% 1.7% $0 $0

83 78 19.0% 39 2054 $152,700 $30,600 $38,700 $111,600 $0 100.0% $2,436,700 7.2% 1.6% $0 $0

84 79 19.0% 40 2055 $157,200 $30,900 $39,100 $115,700 $0 100.0% $2,473,900 7.2% 1.5% $0 $0

85 80 19.0% 41 2056 $161,800 $31,200 $39,500 $119,900 $0 100.0% $2,509,200 7.2% 1.4% $0 $0

86 81 19.0% 42 2057 $166,500 $31,500 $39,900 $124,200 $0 100.0% $2,542,300 7.2% 1.3% $0 $0

87 82 19.0% 43 2058 $171,400 $31,800 $40,200 $128,700 $0 100.0% $2,573,000 7.2% 1.2% $0 $0

88 83 19.0% 44 2059 $176,400 $32,200 $40,600 $133,300 $0 100.0% $2,600,800 7.2% 1.1% $0 $0

89 84 19.0% 45 2060 $181,600 $32,500 $41,000 $138,100 $0 100.0% $2,625,500 7.2% 0.9% $0 $0

90 85 19.0% 46 2061 $186,900 $32,800 $41,400 $143,000 $0 100.0% $2,646,500 7.2% 0.8% $0 $0

91 86 19.0% 47 2062 $192,400 $33,100 $41,800 $148,100 $0 100.0% $2,663,500 7.3% 0.6% $0 $0

92 87 19.0% 48 2063 $198,100 $33,500 $42,200 $153,300 $0 100.0% $2,676,000 7.3% 0.5% $0 $0

93 88 19.0% 49 2064 $203,900 $33,800 $42,700 $158,700 $0 100.0% $2,683,400 7.3% 0.3% $0 $0

94 89 19.0% 50 2065 $209,900 $34,100 $43,100 $164,200 $0 100.0% $2,685,200 7.3% 0.1% $0 $0

95 90 19.0% 51 2066 $216,100 $34,500 $43,500 $170,000 $0 100.0% $2,680,800 7.3% -0.2% $0 $0

96 91 19.0% 52 2067 $222,500 $34,800 $44,000 $175,900 $0 100.0% $2,669,500 7.3% -0.4% $0 $0

97 92 19.0% 53 2068 $229,100 $35,200 $44,400 $182,000 $0 100.0% $2,650,600 7.3% -0.7% $0 $0

98 93 19.0% 54 2069 $235,800 $35,500 $44,800 $188,300 $0 100.0% $2,623,200 7.3% -1.0% $0 $0

99 94 19.0% 55 2070 $242,800 $35,900 $45,300 $194,800 $0 100.0% $2,586,600 7.3% -1.4% $0 $0

100 95 19.0% 56 2071 $250,000 $36,200 $45,700 $201,400 $0 100.0% $2,539,700 7.3% -1.8% $0 $0

https://Toolsformoney.com



CURRENT / OLD & PROPOSED / NEW ASSET ALLOCATIONS

John & Mary Sample

YOUR CURRENT / OLD ASSET ALLOCATION BREAKDOWN

Personal (non- qualified) Assets

Asset Class Category

_______ Dollar Amount 

Cash

Equivalents

U.S.

Government (not agency) &

Investment Grade U.S.

Corporate Bonds

Municipal (federally tax- free) Bonds

High Yield, Int'l, Agency, Zero Coupon, and All Other

Bonds

High to Medium Yield &

Value Style Stocks (U.S.

Large- & Mid-Cap)

Low to No Yield &

Growth Style Stocks (U.S.

Large- & Mid-Cap)

Int'l Stocks, Emerging

Markets, & Other Int'l

Equities

Small-Cap, Precious

Metals, Sector Funds, Real Estate, LPs,

Misc. Equities

John's Schwab Cash $5,000 $5,000

Schwab Bond Fund $10,000 $200 $9,800 Schwab Stock Fund $10,000 $200 $9,800

John's Bank Savings Savings $50,000 $50,000

John's Credit Union Savings $25,000 $25,000

Mary's Rental Property Home Street Rental $100,000 $100,000

Joint Credit Union Savings $260,000 $260,000

Personal Totals: $460,000 $340,400 $9,800 $0 $0 $0 $9,800 $0 $100,000

https://Toolsformoney.com



YOUR CURRENT / OLD ASSET ALLOCATION BREAKDOWN, Continued

Retirement (tax- qualified) Assets

Asset Class Category

_______ Dollar Amount 

Cash Equivalents

U.S. Government

(not agency) &

Investment Grade

U.S. Corporate

Bonds

Municipal (federally tax- free) Bonds

High Yield,

Int'l, Agency,

Zero Coupon,

and All Other

Bonds

High to Medium Yield &

Value Style Stocks (U.S.

Large- & Mid-Cap)

Low to No Yield &

Growth Style Stocks (U.S.

Large- & Mid-Cap)

Int'l Stocks, Emerging

Markets, & Other Int'l

Equities

Small-Cap,

Precious Metals,

Sector Funds,

Real Estate, LPs,

Misc. Equities

John's 401(k) Cash $5,000 $5,000

Bond Fund $10,000 $200 $9,800 Stock Fund $7,500 $150 $7,350 Int'l Fund $5,000 $100 $4,900

John's TD IRA Tech Stocks $25,000 $25,000

John's Merrill IRA Bank Stocks $15,000 $15,000

Mary's 403(b) Cash $10,000 $10,000

Target Fund $25,000 $500 $500 $5,000 $12,750 $3,750 $2,500

Mary's TIAA CREF IRA Bond Fund $10,000 $200 $9,800 Stock Fund $15,000 $300 $14,700

Mary's American Funds ICA $5,000 $100 $1,500 $3,300 $100

Growth Fund of American $5,000 $100 $3,400 $1,500 EuroPacific Growth $5,000 $100 $4,900

Tax-Qualified Totals: $142,500 $16,750 $20,100 $0 $0 $24,900 $39,600 $13,650 $27,500

Grand Total:

Personal & $602,500 $357,150 $29,900 $0 $0 $24,900 $49,400 $13,650 $127,500

https://Toolsformoney.com

High to Low to No

Medium Int'l Stocks, U.S. Government High Yield, Small-Cap, Yield & Allocations of Combined Municipal Yield & Emerging (not agency) & Int'l, Agency, Precious Metals,

Cash Growth Style Investment Grade Sector Funds, (federally tax- Zero Coupon, Value Style Markets, & Personal & Tax-Qualified Equivalents Stocks (U.S.

U.S. Corporate and All Other Real Estate, LPs, free) Bonds Stocks (U.S. Other Int'l Large- & Assets Bonds Bonds Misc. Equities Large- & Equities Mid-Cap)

Mid-Cap)

59.3% 5.0% 0.0% 0.0% 4.1% 8.2% 2.3% 21.2% CURRENT / OLD ALLOCATION

2.5% 12.5% 0.0% 10.0% 22.5% 22.5% 12.5% 17.5% GUIDELINE ALLOCATION

3.6% 15.3% 0.0% 9.9% 18.5% 15.6% 10.1% 26.8% PROPOSED / NEW ALLOCATION

Cash Equivalents 2.5%

U.S. Government (not agency) & Investment Grade U.S. Corporate

Bonds 12.5%

High Yield, Int'l, Agency, Zero

Coupon, and All Other Bonds

10.0%

High to Medium Yield & Value Style

Stocks (U.S. Large- & Mid-Cap)

22.5%

Low to No Yield & Growth Style Stocks (U.S. Large- & Mid-

Cap) 22.5%

Int'l Stocks, Emerging Markets, & Other Int'l

Equities 12.5%

Small-Cap, Precious Metals, Sector Funds,

Real Estate, LPs, Misc. Equities

17.5%

GUIDELINE ALLOCATION

Cash Equivalents 59.3%

U.S. Government (not agency) & Investment Grade U.S. Corporate

Bonds 5.0%

High to Medium Yield & Value Style

Stocks (U.S. Large- & Mid-Cap)

4.1%

Low to No Yield & Growth Style Stocks (U.S. Large- & Mid-

Cap) 8.2%

Int'l Stocks, Emerging Markets, & Other Int'l

Equities 2.3%

Small-Cap, Precious Metals, Sector Funds,

Real Estate, LPs, Misc. Equities

21.2%

CURRENT / OLD ALLOCATION

Calculated Guideline Asset Allocation Cash: 2.5%

Bonds: 22.5% U.S. Equity: 62.5% Int'l Stocks: 12.5%

Your Current / Old Asset Allocation Breakdown

Cash: 59.3% Bonds: 5.0%

U.S. Equity: 33.5% Int'l Stock: 2.3%

Your Proposed / New Asset Allocation Breakdown

Cash: 3.6% Bonds: 25.2%

U.S. Equity: 61.0% Int'l Stock: 10.1%

Cash Equivalents 3.6%

U.S. Government (not agency) & Investment Grade U.S. Corporate

Bonds 15.3%

High Yield, Int'l, Agency, Zero Coupon, and All Other Bonds

9.9%

High to Medium Yield & Value Style Stocks (U.S. Large- & Mid-

Cap) 18.5%

Low to No Yield & Growth Style Stocks (U.S. Large- & Mid-

Cap) 15.6%

Int'l Stocks, Emerging Markets, & Other Int'l

Equities 10.1%

Small-Cap, Precious Metals, Sector Funds,

Real Estate, LPs, Misc. Equities 26.8%

PROPOSED / NEW ALLOCATION

YOUR PROPOSED / NEW ASSET ALLOCATION BREAKDOWN

Personal (non- qualified) Assets

Asset Class Category

_______ Dollar Amount 

Cash Equivalents

U.S. Government

(not agency) & Investment Grade

U.S. Corporate

Bonds

Municipal (federally tax- free) Bonds

High Yield, Int'l, Agency,

Zero Coupon,

and All Other

Bonds

High to Medium Yield &

Value Style Stocks (U.S.

Large- & Mid-Cap)

Low to No Yield &

Growth Style Stocks (U.S.

Large- & Mid-Cap)

Int'l Stocks, Emerging

Markets, & Other Int'l

Equities

Small-Cap,

Precious Metals, Sector Funds,

Real Estate, LPs,

Misc. Equities

John's Schwab Cash $1,000 $1,000

Schwab Bond Fund $0 Schwab Stock Fund $0

Current Short Bond Pick $5,000 $100 $4,350 $550 Current Large Value Pick $7,000 $140 $6,510 $350

Current Large Growth Pick $7,000 $140 $6,510 $350 Current Int'l Stock Pick $5,000 $100 $4,900

John's Mutual Funds Bank Savings $0

Cash $10,000 $10,000 Bond Funds $10,000 $200 $2,550 $7,250 Stock Funds $10,000 $200 $4,650 $4,650 $500

International Funds $10,000 $200 $9,800 Natural Resources Funds $10,000 $200 $1,075 $8,725

John's TD Ameritrade Credit Union $0

Cash $1,000 $1,000 Multi-sector Bond Pick $8,000 $160 $7,840

Mid-cap Value Pick $8,000 $160 $7,440 $400 Mid-cap Growth Pick $8,000 $160 $7,440 $400

Mary's Rental Property Home Street Rental $100,000 $100,000

Joint Scottrade Credit Union Savings $0

Current Short Bond Pick $25,000 $500 $18,475 $6,025 Current Bond Fund Pick $30,000 $600 $29,400 Current Junk Bond Pick $10,000 $100 $9,900 Current Int'l Bond Pick $10,000 $100 $9,900

Emerging Mrkts Bond Pick $5,000 $50 $4,950 Current Large Value Pick $45,000 $900 $41,850 $2,250

Current Large Growth Pick $45,000 $900 $42,600 $1,500 Current Mid-cap Pick $30,000 $600 $14,450 $14,450 $500

Current Small-cap Pick $10,000 $200 $250 $9,550 Current Micro-cap Pick $5,000 $100 $750 $4,150

Current Int'l Large-cap Pick $15,000 $300 $14,700 Current Int'l Small-cap Pick $5,000 $100 $4,900

Emerging Markets Pick $10,000 $200 $9,800 Current Tangibles Pick $15,000 $300 $14,700

Personal Totals: $460,000 $18,710 $62,615 $0 $39,650 $74,900 $75,650 $51,350 $137,125

<= This color denotes an asset with a decrease in value (or was sold completely) to reach the guideline allocation.

<= This color denotes an asset with an increase in value (or was newly acquired) to reach the guideline allocation.

https://Toolsformoney.com

YOUR PROPOSED / NEW ASSET ALLOCATION BREAKDOWN, Continued

Retirement (tax- qualified) Assets

Asset Class Category

_______ Dollar Amount 

Cash Equivalents

U.S. Government

(not agency) & Investment Grade

U.S. Corporate

Bonds

Municipal (federally tax- free) Bonds

High Yield, Int'l, Agency,

Zero Coupon,

and All Other

Bonds

High to Medium Yield &

Value Style Stocks (U.S.

Large- & Mid-Cap)

Low to No Yield &

Growth Style Stocks (U.S.

Large- & Mid-Cap)

Int'l Stocks, Emerging

Markets, & Other Int'l

Equities

Small-Cap,

Precious Metals, Sector Funds,

Real Estate, LPs,

Misc. Equities

John's 401(k) Cash $1,000 $1,000

Bond Fund $0 Stock Fund $7,500 $150 $7,350 Int'l Fund $5,000 $100 $4,900

Growth Fund $4,000 $80 $3,920 Multi-sector Bond $10,000 $200 $9,800

John's TD IRA Tech Stocks $5,000 $5,000

Internet Fund $5,000 $100 $4,900 Tech Fund $5,000 $100 $4,900

Biotech Fund $5,000 $100 $4,900 Energy Fund $5,000 $100 $4,900

John's Scottrade IRA Bank Stocks $0

Current Junk Bond Pick $5,000 $100 $4,900 Current Int'l Bond Pick $5,000 $5,000

Emerging Markets Bond Pick $5,000 $5,000

Mary's 403(b) Cash $0

Target Fund $0 Bond Fund $10,000 $100 $9,900 Value Fund $10,000 $200 $9,800

Growth Fund $10,000 $200 $9,800 Int'l Stock Fund $5,000 $100 $4,900

Mary's TIAA CREF IRA $0 $0 Bond Fund $10,000 $100 $9,900 Stock Fund $15,000 $300 $14,700

Mary's Scottrade ICA $0

Growth Fund of American $0 EuroPacific Growth $0

Junk Bond Pick $5,000 $50 $4,950 Large Value Pick $5,000 $100 $4,900

Large Growth Pick $5,000 $100 $4,900

Tax-Qualified Totals: $142,500 $3,280 $29,600 $0 $19,850 $36,750 $18,620 $9,800 $24,600

Grand Total:

Personal & $602,500 $21,990 $92,215 $0 $59,500 $111,650 $94,270 $61,150 $161,725

Retirement

https://Toolsformoney.com



Sources and Applications of Funds

Needed Changes to More Closely Resemble the Guideline Asset Allocation

John & Mary Sample

Investment Asset Class

Category 

Cash Equivalents

U.S. Government

(not agency) & Investment Grade

U.S. Corporate

Bonds

Municipal (federally tax- free) Bonds

High Yield, Int'l, Agency,

Zero Coupon,

and All Other

Bonds

High to Medium Yield &

Value Style Stocks (U.S.

Large- & Mid-Cap)

Low to No Yield &

Growth Style Stocks (U.S.

Large- & Mid-Cap)

Int'l Stocks, Emerging

Markets, & Other Int'l

Equities

Small-Cap,

Precious Metals,

Sector Funds,

Real Estate, LPs,

Misc. Equities

Percent Increase or Decrease Needed in Asset Class to Resemble Guideline

Allocation: -57% 8% 0% 10% 18% 14% 10% -4%

Dollar Amount Increase or (Decrease) Needed in Asset Class to Resemble

Guideline Allocation: ($342,000) $45,000 $0 $60,000 $111,000 $86,000 $62,000 ($22,000)

https://Toolsformoney.com

Current Life Insurance Needs Analysis for John

John & Mary Sample

Lump Sum Needed Today to Pay Off Primary Mortgage:

Lump Sum Needed for Cash Reserve After Everything Else is Paid For:

Lump Sum Immediate Cash Needs:

Lump Sum Needed for Burial / Funeral / Medical and Other Final Expenses:

Lump Sum Needed to Pay Off All Debts:

Lump Sum Needed to Cover Estate Taxes and Other Taxes Due:

Lump Sum Needed to Give Away to Others / Bequeaths / Charity:

Lump Sum Needed to Fund Junior's College & Other Expenses:

Lump Sum Needed to Fund Sallie Mea's College & Other Expenses:

Lump Sum Needed to Fund Doogy's College & Other Expenses:

Total Lump Sum Currently Needed:

Lump Sum Available from Social Security:

Lump Sum Available from Personally Held Term Life Insurance:

Lump Sums Available from Employer / Business Life Insurance:

Lump Sums from All Whole Life Insurance Policies:

Funds Available from Pension Lump Sum Payouts:

Lump Sum Available Funds from Other Liquid Assets:

Lump Sums Available from Personal Non-Qualified Assets:

Lump Sums Available from Qualified Assets:

Total Lump Sum Currently Available:

Current Unmet Lump Sum Life Insurance Needs:

Lump Sum Needed Today to Replace Mary's Future Income(s):

Total Additional Life Insurance Needed Today to Fund All Needs:

Current Percentage of Life Insurance Needs Currently Covered:

CURRENT NEEDS LESS AVAILABLE FUNDS = ADDITIONAL NEEDS

$1,400,000

$96,905

$10,000

$29,500 $1,200,000

$53,229

$200,362 $1,000,000

$247,104

$292,483

$800,000

$939,583

$255

$250,000 $600,000

$100,000

$0 $400,000

$50,000

$67,500

$467,755 $200,000

$471,828

$376,738 $0

$376,738

$848,567

$939,583

$467,755

Current Income Replacement Needs Additional Life Insurance Needs $848,567 Current Lump Sum Needs Current Funds Available

19.0%

https://Toolsformoney.com

Current Life Insurance Needs Analysis for Mary

John & Mary Sample

Lump Sum Needed Today to Pay Off Primary Mortgage:

Lump Sum Needed for Cash Reserve After Everything Else is Paid For:

Lump Sum Immediate Cash Needs:

Lump Sum Needed for Burial / Funeral / Medical and Other Final Expenses:

Lump Sum Needed to Pay Off All Debts:

Lump Sum Needed to Cover Estate Taxes and Other Taxes Due:

Lump Sum Needed to Give Away to Others / Bequeaths / Charity:

Lump Sum Needed to Fund Junior's College & Other Expenses:

Lump Sum Needed to Fund Sallie Mea's College & Other Expenses:

Lump Sum Needed to Fund Doogy's College & Other Expenses:

Total Lump Sum Currently Needed:

Lump Sum Available from Social Security:

Lump Sum Available from Personally Held Term Life Insurance:

Lump Sums Available from Employer / Business Life Insurance:

Lump Sums from All Whole Life Insurance Policies:

Funds Available from Pension Lump Sum Payouts:

Lump Sum Available Funds from Other Liquid Assets:

Lump Sums Available from Personal Non-Qualified Assets:

Lump Sums Available from Qualified Assets:

Total Lump Sum Currently Available:

Current Unmet Lump Sum Life Insurance Needs:

Lump Sum Needed Today to Replace John's Future Income(s):

Total Additional Life Insurance Needed Today to Fund All Needs:

Current Percentage of Life Insurance Needs Currently Covered:

$96,905

$10,000

$29,500

$53,229

$200,362

$247,104

$292,483

$939,583

$255

$250,000

$100,000

$50,000

$67,500

$467,755

$471,828

$1,530,933

$2,002,761

10.1%

$3,000,000

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

CURRENT NEEDS LESS AVAILABLE FUNDS = ADDITIONAL NEEDS

$1,530,933

$2,002,761

$939,583

$467,755

Current Income Replacement Needs Additional Life Insurance Needs Current Lump Sum Needs Current Funds Available

https://Toolsformoney.com

Proposed Life Insurance Needs Analysis for John

John & Mary Sample

Lump Sum Needed Today to Pay Off Primary Mortgage:

Lump Sum Needed for Cash Reserve After Everything Else is Paid For:

Lump Sum Immediate Cash Needs:

Lump Sum Needed for Burial / Funeral / Medical and Other Final Expenses:

Lump Sum Needed to Cover Estate Taxes and Other Taxes Due:

Lump Sum Needed to Cover Estate Taxes:

Lump Sum Needed to Give Away to Others / Bequeaths / Charity:

Lump Sum Needed to Fund Junior's College & Other Expenses:

Lump Sum Needed to Fund Sallie Mea's College & Other Expenses:

Lump Sum Needed to Fund Doogy's College & Other Expenses:

Total Lump Sum Currently Needed:

Lump Sum Available from Social Security:

Lump Sum Available from Personally Held Term Life Insurance:

Lump Sums Available from Employer / Business Life Insurance:

Lump Sums from All Whole Life Insurance Policies:

Funds Available from Pension Lump Sum Payouts:

Lump Sum Available Funds from Other Liquid Assets:

Lump Sums Available from Personal Non-Qualified Assets:

Lump Sums Available from Qualified Assets:

Total Lump Sum Currently Available:

Current Unmet Lump Sum Life Insurance Needs:

Lump Sum Needed Today to Replace Mary's Future Income(s):

Total Additional Life Insurance Needed Today to Fund All Needs:

Current Percentage of Life Insurance Needs Currently Covered:

CURRENT NEEDS LESS AVAILABLE FUNDS = ADDITIONAL NEEDS

$96,247

$10,000

$29,500

$53,229

$133,035

$164,173

$194,635

$690,819

$255

$725,000

$100,000

$50,000

$67,500

$942,755

-$251,936

$376,738

$1,200,000

$1,000,000

$800,000

$600,000

$400,000

$200,000

$124,802

$376,738

$942,755

$690,819

Current Income Replacement Needs Additional Life Insurance Needs $124,802 Current Lump Sum Needs Current Funds Available

67.9%

https://Toolsformoney.com

Proposed Life Insurance Needs Analysis for Mary

John & Mary Sample

Lump Sum Needed Today to Pay Off Primary Mortgage:

Lump Sum Needed for Cash Reserve After Everything Else is Paid For:

Lump Sum Immediate Cash Needs:

Lump Sum Needed for Burial / Funeral / Medical and Other Final Expenses:

Lump Sum Needed to Pay Off All Debts:

Lump Sum Needed to Cover Estate Taxes and Other Taxes Due:

Lump Sum Needed to Give Away to Others / Bequeaths / Charity:

Lump Sum Needed to Fund Junior's College & Other Expenses:

Lump Sum Needed to Fund Sallie Mea's College & Other Expenses:

Lump Sum Needed to Fund Doogy's College & Other Expenses:

Total Lump Sum Currently Needed:

Lump Sum Available from Social Security:

Lump Sum Available from Personally Held Term Life Insurance:

Lump Sums Available from Employer / Business Life Insurance:

Lump Sums from All Whole Life Insurance Policies:

Funds Available from Pension Lump Sum Payouts:

Lump Sum Available Funds from Other Liquid Assets:

Lump Sums Available from Personal Non-Qualified Assets:

Lump Sums Available from Qualified Assets:

Total Lump Sum Currently Available:

Proposed Unmet Lump Sum Life Insurance Needs:

Lump Sum Needed Today to Replace John's Future Income(s):

Total Additional Life Insurance Needed Today to Fund All Needs:

Proposed Percentage of Life Insurance Needs Currently Covered:

$2,500,000

$96,247

$10,000

$29,500

$53,229 $2,000,000 $0

$133,035

$164,173

$194,635

$1,500,000

$690,819

$255

$1,800,000 $1,000,000 $0

$100,000

$50,000 $500,000 $67,500

$2,017,755

-$1,326,936

$1,464,993 $0

CURRENT NEEDS LESS AVAILABLE FUNDS = ADDITIONAL NEEDS

$138,057

$1,464,993

$2,017,755

$690,819

Current Income Replacement Needs Additional Life Insurance Needs $138,057 Current Lump Sum Needs Current Funds Available

83.5%

https://Toolsformoney.com

- CONFIDENTIAL REPORT - TO DO LIST: FINANCIAL PLAN IMPLEMENTATION

Here is a list of tasks the two of you have agreed to complete to implement your financial plan. Please write in the date

each task was completed in the middle column as progress is made. Detailed sources and application of funds can be

seen on the proposed section of the investment asset allocation report.

Who Needs

to Do the

Activity

When

the

Activity

Needs to

be Done

Description of the Activity

When the

Activity

was

Completed

John Mary Both 9/1/16

Increase homeowners insurance to $500,000, auto liability to $100/300/50,

and buy a $2M Umbrella liability policy.

John Mary Both 9/1/16 Increase payroll withholding exemptions to four each.

John Mary Both 11/1/16

Update wills, death / funeral / burial instructions, and trusts. Use the

document organizer provided.

John Mary Both 10/1/16

Sell all individual stocks and let us create a well-allocated investment

portfolio.

John Mary Both 9/1/16

Reallocate current 401(k) investment options as shown in the asset allocation

report. Direct all future contributions into the new funds as we discussed.

John Mary Both 10/1/16

Liquidate all bank CDs and Credit Union Savings accounts and let us create

an optimized asset allocation investment portfolio.

John Mary Both 11/1/16

Open a rollover IRA with us via Scottrade: Then close the Merrill Lynch,

TIAA, Fidelity, and American Funds accounts and transfer the money over to

our asset allocation account. Start by completing the forms titled "ACAT."

John Mary Both 10/1/16

Sell the individual bonds and buy a bond mutual fund in your new personal

investment portfolio account with us.

John Mary Both 9/1/16

Both John and Mary need to purchase $250 per day in long-term care

insurance benefit through your Superior Life, Inc. for $250 per month

premium each.

John Mary Both

9/1/16

Both John and Mary need to purchase $2,000 per month in additional

disability insurance benefit through XYZ insurance, by completing the form

we gave you, and returning them to our office. It is $100 per month premium

each.

John Mary Both 3/1/16 John promised to quit smoking in the first quarter of 2013.

John Mary Both

9/1/16

Complete the appraisal of your antiques, silver and jewelry so the appropriate

insurance can be added to your homeowner’s policy. The names, addresses and phone numbers of three qualified appraisers are attached and marked

Appraisals.

John Mary Both 8/16/16 Refinance the primary residence mortgage to a lower term with a lower rate.

John Mary Both 9/1/16

John needs to sign up for an additional $1,750,000 of Level Term Life

Insurance via his employer, and Mary to do the same for $500,000. It is $250

per month in additional premium each.

John Mary Both 12/1/16 Break the news to the kids that they can't afford to attend Ivy-league colleges.

John Mary Both 9/1/16

Use cash flow surpluses to pay off credit cards and student loans. When paid

off, direct surpluses to the money market fund of your personal investment

accounts until it reaches your desired emergency cash reserve of $25,000.

https://Toolsformoney.com