financial plan

Especially Prepared For:

John and Jane Doe

By: Brad E.S. Tinnon CERTIFIED FINANCIAL PLANNER™

September 2013

Sample Comprehensive Financial Plan

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

B.E.S.T. Wealth Management, LLC

NET WORTH SUMMARY

January 2011 $302,518 September 2012 $375,821 September 2013 $447,001

Personal Assets - John Personal Assets - Jane

ABC Company 401(k) $120,000 4 Parkway School District 403(b) $25,000 2 ------------- B.E.S.T. Wealth Roth IRA $16,000 5

$120,000 Public School Retirement Pension $1 1 -------------

$41,001

529 College Savings - John Other Assets

Missouri MOST 529 (fbo Johnny) $15,000 ------------- -------------

$15,000 $0

Life Insurance Net D.B.s - John Life Insurance Net D.B.s - Jane

ABC Company Group Policy $300,000 Spousal Group Policy $50,000 ---------------- Rockwood Group Policy $50,000

$300,000 ---------------- $100,000

Joint Property Debts & Liabilities

First Bank Checking $6,000 Mortgage $225,000 3 First Bank Savings $30,000 ------------- B.E.S.T. Wealth Non IRA Acct $105,000 $225,000 Personal Residence $300,000 Furnishings $30,000 Vehicles $25,000

------------- $496,000

Current Values Gross Estate Values

$120,000 <==Assets John Assets + Life Insurance==> $668,000 $41,001 <==Assets Jane Assets + Life Insurance==> $389,001

$496,000 <==Assets Joint Property $15,000 <==Assets 529 Plans ($15,000)

$0 <==Assets Other Assets $672,001 Total Assets

($225,000) Known Debts and Liabilities ($225,000) $447,001 Total Net Worth Total Estate Value Minus Debt/Liabilities $817,001

B.E.S.T. Wealth Management, LLC

4 Contributing 10% of salary. Company matches 4% of salary.

5 Contributing $458 / mo.

NET WORTH STATEMENT

John and Jane Doe

September 30, 2013

1 100% vested.

2 Contributing 5% of salary. No company match.

3 Principal and Interest pmt = $1,074 / month. Interest rate = 4.00%. 30 Year Loan. Payoff Date = October 2043.

OO ObjectivesObjectivesObjectivesObjectives

B.E.S.T. Wealth Management, LLC

B.E.S.T. Wealth Management, LLC Brad E.S. Tinnon

OBJECTIVES According to the information gathered in our previous meetings, your objectives are: 1. Maintain an adequate emergency fund. 2. Review the overall asset allocation of your investments. 3. Have the financial option to retire at John’s age 65 and cover

retirement expenses (required + desired expenses) of $6,000 per month ($7,500 / mo with taxes factored in) until Jane’s age 90.

4. Fund college education for your child. 5. Assure that in the event of an untimely death, the surviving spouse

is able to maintain his/her desired lifestyle. 6. Analyze current estate and determine appropriate action to take.

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

B.E.S.T. Wealth Management, LLC Brad E.S. Tinnon

RECOMMENDATIONS

The following recommendations are not listed in order of priority or importance. Some recommendations should be implemented immediately while others are given as long-term concepts to consider.

1. OBJECTIVE: Maintain an adequate emergency fund.

An appropriate emergency fund usually covers three to six months of expenses, but could be more depending on the security of your jobs. When two spouses are employed and job security is relatively high, a three month emergency reserve can suffice. Since both spouses work, an emergency fund consisting of 3 months of expenses would be appropriate. Your monthly basic living expenses are estimated to be $6,000; therefore, a 3 month emergency fund of $18,000 would be appropriate. These funds should be held in an FDIC guaranteed type account such as a money market account or a savings account. You currently have approximately $30,000 that qualifies as emergency funds so this goal is overfunded by $12,000. It is recommended that you utilize this excess to either fund your child’s education goal or your retirement.

2. OBJECTIVE: Review the overall asset allocation of your investments.

In reviewing the overall asset allocation of your retirement investments, your time horizon and risk tolerance suggests that the “Moderate Growth” portfolio (54% stocks / 20% bonds / 26% alternatives) may be most appropriate.

Since we review whether your accounts need to be rebalanced on a daily basis, your allocation is already in order.

B.E.S.T. Wealth Management, LLC Brad E.S. Tinnon

3. OBJECTIVE: Have the financial option to retire at John’s age 65 and cover retirement expenses (required + desired expenses) of $6,000 per month ($7,500 / mo with taxes factored in) until Jane’s age 90.

At retirement, your investments need to be valued at approximately $4,928,126 in order to cover your retirement expenses. Based on the assumptions utilized, your investments are projected to grow to $4,876,049 at retirement. This leaves a shortfall of $52,077. As a result of the shortfall, it is recommended that John set up a Roth IRA and attempt to fund it with the maximum amount allowed (currently $458 / mo).

4. OBJECTIVE: Fund college education for your child.

In order to fully fund the college education of Johnny you will need to set aside approximately $239 per month. If you desire to start setting money aside for this goal, I suggest doing so in your existing 529 College Savings Account. We will further discuss this goal when we meet and whether or not this goal should take priority over other goals you’ve established.

B.E.S.T. Wealth Management, LLC Brad E.S. Tinnon

5. OBJECTIVE: Assure that in the event of an untimely death, the surviving spouse is able to maintain his or her desired lifestyle.

The survivor analysis suggests that Jane would have a Capital Shortfall of $1,244,989 in the event of John’s untimely death. In other words, to provide Jane with her standard of living until her age 90, additional insurance coverage of $1,244,989 is needed on John’s life.

The survivor analysis suggests that John would have a Capital Shortfall of $297,186 in the event of Jane’s untimely death. In other words, to provide John with his standard of living until his age 90, additional insurance coverage of $297,186 is needed on Jane’s life.

Ideally, I like to see insurance in place up until the point you reach retirement. At that point, a death will not cause a financial hardship, so long as the retirement goal has been met. In essence, the goal is to self insure when you enter retirement.

Therefore, I am recommending that each of you obtain a 30 year term policy. Additionally, I recommend that you add a child rider to the policy to cover you financially in the event that Johnny would unexpectedly pass away. See below for quote of proposed coverage.

Proposed Coverage Coverage Monthly Cost*

John

30 Year Term

Jane

30 Year Term

$1,300,000

$300,000

$108

$31

TOTALS $1,600,000 $139

* Assumes Preferred Non-Tobacco rating for husband and wife.

B.E.S.T. Wealth Management, LLC Brad E.S. Tinnon

6. OBJECTIVE: Analyze current estate and determine appropriate action to take.

To help ensure your wishes are carried out (and in the most tax- efficient fashion), you should have all legal documents prepared and then reviewed on a periodic basis. You currently do not have any estate planning documents. As such, the first item of interest is whether you should have a Will or whether you should have a Trust.

If a Will is drafted, a portion of your estate will eventually be subject to probate. The disadvantages of probate is that it is expensive, lengthy, and public (i.e. your Will can be viewed by the public). A Trust on the other hand will not be subject to probate, which means that your heirs will end up with a larger estate than if a Will were utilized. Additionally, a Trust usually passes assets to heirs more efficiently than a Will.

If you don’t have any estate planning documents and you both pass away while your child is a minor, then the courts will appoint a conservator to manage your assets for the benefit of your child. This would be true even if you had a Simple Will. This is a very time consuming and expensive process as the conservator has to appear before the courts each year and give an accountability of the funds spent on your child. You can avoid this issue by having a Trust drafted. Due to the disadvantages of probate and the conservator issue, I recommend that a Revocable Living Trust be drafted.

In addition to having a Will or a Trust, it will be prudent for you to have the following estate planning documents drafted: (1) Health Care Power of Attorney, and (2) Financial Power of Attorney. A Healthcare Power of Attorney is a document in which you appoint someone to handle your health related matters in the event you cannot do so. A Durable Power of Attorney is a document in which you appoint someone to handle your financial related matters in the event you cannot do so. Without these documents, you could find yourself in a very expensive and time consuming situation whereby the courts become involved. If you do not have an attorney that you utilize, our firm can refer one to you.

B.E.S.T. Wealth Management, LLC Brad E.S. Tinnon

RECOMMENDATION SUMMARY

1. Use excess $12,000 in savings to fund education or retirement goal. 2. Set up Roth IRA for John and begin funding at $458 / mo. 3. Begin saving $239 per month to Missouri MOST 529 College Savings

Account. 4. Consider obtaining life insurance of $1,300,000 for John ($108 / mo) and

$300,000 for Jane ($31 / mo). 5. Have Revocable Living Trust, Healthcare Power of Attorney, and Financial

Power of Attorney drafted.

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

Inception Total Total Total Net Current Net Percent of

ACCOUNTS UNDER MANAGEMENT FBO Date Contributions Withdrawals Contributions Value Growth MODEL Portfolio

B.E.S.T. Wealth Non-IRA Account Joint 1/1/11 $92,228 $0 $92,228 $105,000 13.85% 80-20 86.8%

B.E.S.T. Wealth Roth IRA Jane 1/1/11 $14,050 $0 $14,050 $16,000 13.88% 80-20 13.2%

TOTAL PORTFOLIO UNDER MANAGEMENT $106,278 $121,000 13.85% 100.0%

B.E.S.T. Wealth Management, LLC

John and Jane Doe Portfolio Summary - 9/30/2013 (Retirement Accounts)

Current Portfolio

54%

20%

26%

Stocks

Bonds

Alternatives

Proposed Portfolio

54%

20%

26%

Stocks

Bonds

Alternatives

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

B.E.S.T. Wealth Management, LLC Brad E.S. Tinnon

RETIREMENT ASSUMPTIONS

1. Retirement expenses (required + desired expenses) are projected to be

$6,000 per month ($7,500 per month with taxes factored in) from John’s age 65 to Jane’s age 90.

2. Combined federal / state tax rate of 20% utilized.

3. All retirement assets were assigned a rate of return of 7% during pre-retirement and 5% during retirement.

4. Social Security was NOT factored into the analysis.

5. Missouri Public School Retirement System pension NOT factored in to the analysis.

6. John will continue to contribute 10% ($833 / mo) to his 401(k) and

the company will match up to 4% of salary ($333 / mo) until he retires at age 65.

7. Jane will continue to contribute 5% to her 403(b) until she retires at

age 63. There is no company match. 8. Jane will continue to contribute $458 / mo to her Roth IRA until she

retires at age 63.

Retirement ObjectiveRetirement Objective How much do you need?

A n n u al

In co

m e

Retirement Income Objective

$500,000

$400,000

$300,000

$200,000

$100,000

$0 85 83

83 81

87 85

89 87

81 79

79 77

77 75

65 63

67 65

69 67

71 69

73 71

75 73

-- 89

John's Age Jane's Age

Assuming: John's mortality age 90, Jane's mortality age 90

Your retirement income objective has been illustrated above. Your objective in the first year of retirement results in the following:

Total annual income objective in first year of retirement $231,757 Total annual income objective in today's dollars* $90,000

In order to meet your income objective throughout your retirement, the amount of money needed at the beginning of retirement, in an account earning 5.00%, would be the following:

Total capitalized income objective $4,928,126

The goal of the retirement analysis is to determine if your objective above can be met with expected income sources (e.g., Social Security) and withdrawals from assets (e.g., 401(k), IRA).

*Calculated using a long-term inflation rate of 3.00%.

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

Retirement Income SourcesRetirement Income Sources What income will be available?

AA nn nn uu aa l

l II nn

cc o o m m

ee

Annuity BenefitsSocial Security EarningsDefined Benefit Misc. Income

$1

$1

$1

$0

$0

$0 65 63

67 65

69 67

71 69

73 71

85 83

-- 89

77 75

79 77

81 79

83 81

87 85

89 87

75 73

John's AgeJohn's Age Jane's AgeJane's Age

Assuming: John's mortality age 90, Jane's mortality age 90

Charted above are your expected income sources. Income sources will be guaranteed to varying degrees and should be matched to the appropriate needs. Social Security benefits, for example, could be viewed as fairly guaranteed when compared to the income from a personally managed rental property. Ideally, the most important needs should be covered by your most guaranteed income sources, while less important needs can be covered by less guaranteed income and investment assets.

Generally in this analysis, income sources are used to pay expenses each year before withdrawals from assets are made. If there is more than enough income, the excess will be spent.

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

What income will be available?

John Jane Total Social Defined Annuity Social Defined Annuity Income

Age Security Benefits Benefits Earnings Misc. Age Security Benefits Benefits Earnings Misc. Sources

65 $0 $0 $0 $0 $0 63 $0 $0 $0 $0 $0 $0 66 0 0 0 0 0 64 0 0 0 0 0 0 67 0 0 0 0 0 65 0 0 0 0 0 0 68 0 0 0 0 0 66 0 0 0 0 0 0 69 0 0 0 0 0 67 0 0 0 0 0 0 70 0 0 0 0 0 68 0 0 0 0 0 0 71 0 0 0 0 0 69 0 0 0 0 0 0 72 0 0 0 0 0 70 0 0 0 0 0 0 73 0 0 0 0 0 71 0 0 0 0 0 0 74 0 0 0 0 0 72 0 0 0 0 0 0 75 0 0 0 0 0 73 0 0 0 0 0 0 76 0 0 0 0 0 74 0 0 0 0 0 0 77 0 0 0 0 0 75 0 0 0 0 0 0 78 0 0 0 0 0 76 0 0 0 0 0 0 79 0 0 0 0 0 77 0 0 0 0 0 0 80 0 0 0 0 0 78 0 0 0 0 0 0 81 0 0 0 0 0 79 0 0 0 0 0 0 82 0 0 0 0 0 80 0 0 0 0 0 0 83 0 0 0 0 0 81 0 0 0 0 0 0 84 0 0 0 0 0 82 0 0 0 0 0 0 85 0 0 0 0 0 83 0 0 0 0 0 0 86 0 0 0 0 0 84 0 0 0 0 0 0 87 0 0 0 0 0 85 0 0 0 0 0 0 88 0 0 0 0 0 86 0 0 0 0 0 0 89 0 0 0 0 0 87 0 0 0 0 0 0 -- 0 0 0 0 0 88 0 0 0 0 0 0 -- 0 0 0 0 0 89 0 0 0 0 0 0

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

Income Applied toIncome Applied to Retirement ObjectiveRetirement Objective

Can your retirement assets provide the rest?

A n n u al

In co

m e

Defined BenefitSocial Security Annuity Benefits Earnings

Misc. Income Retirement Income Need

$500,000

$400,000

$300,000

$200,000

$100,000

$0 89 87

-- 89

87 85

85 83

83 81

81 79

79 77

77 75

75 73

73 71

71 69

69 67

67 65

65 63

John's Age Jane's Age

Assuming: John's mortality age 90, Jane's mortality age 90

In the chart above, the analysis has applied your expected income sources against your retirement income needs. In any year that a shortfall exists (where the total need is larger than the available income), the analysis will attempt to cover the shortfall through withdrawals from your retirement portfolio (e.g. 401(k), and IRA). In any year where there is more income than need, the excess income will be spent. The table below summarizes the analysis so far.

Capitalized Value* Amount % of Total Total capitalized income objective $4,928,126 100% Capitalized applied income sources $0 0% Capitalized amount needed from assets $4,928,126 100%

*Capitalization is a way of treating a series of cash flows as a lump sum, deposited in a hypothetical account with a return of 5.00%.

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

Retirement Capital AvailableRetirement Capital Available How Much Will You Have at Retirement?

Qualified Accts.Non-Qualified Accts.

$3,500,000

$3,000,000

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$0 Non-

deductible qualified

Roth Accts. Investment Accts.

Deductible qualified

Bank Accts. Annuity Accts.

The capitalized value of your retirement need after applying available income sources is $4,928,126. This means that if you had this amount sitting in a taxable account at retirement earning 5.00%, your retirement needs would be covered. However, the types of assets you own (e.g., qualified accounts, investment accounts) and their expected return will significantly change the actual amount required. The retirement analysis will apply the assets listed below to your remaining retirement need to determine if your objective has been met.

Retirement Capital Total Value at Retirement Bank Accounts $0 Roth Accounts 752,745 Investment Accounts 915,103 Deferred Annuity Accounts 0 Non-deductible Qualified Accounts 0 Deductible Qualified Accounts 3,208,201

Total Capital Available for Retirement $4,876,049

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

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

How Much Will You Have at Retirement?

Current Total Market Total Market Value Value at Value at

Accounts Owner Value Today Retirement Retirement

Roth Accounts B.E.S.T. Wealth Roth IRA Client B 12,000 752,745

Total 12,000 752,745

Investment Accounts B.E.S.T. Wealth Non-IRA Acct Joint 105,000 915,103

Total 105,000 915,103

Deductible Qualified Accounts ABC Company 401k Client A 120,000 2,695,957 Parkway 403b Client B 25,000 512,244

Total 145,000 3,208,201

Total Capital Available for Retirement $262,000 $4,876,049

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

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

Retirement Analysis ResultsRetirement Analysis Results Has the objective been met?

A n n u al

In co

m e

Additional IncomeSocial Security Distribution Strategies

Retirement Income NeedWithdrawals from AssetsRequired Distributions

$500,000

$400,000

$300,000

$200,000

$100,000

$0 77 75

73 71

81 79

83 81

-- 89

75 73

89 87

79 77

87 85

69 67

65 63

67 65

71 69

85 83

John's Age Jane's Age

Assuming: John's mortality age 90, Jane's mortality age 90

Based on the analysis of your retirement needs, expected income sources and available assets, your objective will be satisfied until age 89. Out of 27 retirement years, 26 years had no unmet needs.

Capitalized Value* Amount % of Total Capitalized income objective $4,928,126 100% Capitalized applied income sources $0 0% Capitalized applied assets $4,876,049 99% Unmet Need $52,076 1%

Below are several options to consider which might improve your results. As an alternative, a blend of saving more, spending less or earning more may be preferable for your situation:

Increase average expected portfolio return from 6.40% to 6.42% Save $55 more per month (level) in a hypothetical account earning 5.00% Reduce desired future monthly income need from $19,313 to $19,109

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

*Capitalization treats a series of cash flows as a lump sum, deposited in a hypothetical account with a return of 5.00%.

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

Retirement Capital ResultsRetirement Capital Results Assets At Work Over Time

Non-Qualified Accts.Qualified Accts.

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$0 87 85

89 87

-- 89

85 83

83 81

65 63

67 65

69 67

71 69

73 71

81 79

75 73

77 75

79 77

John's AgeJohn's Age Jane's AgeJane's Age

Assuming: John's mortality age 90, Jane's mortality age 90

Portfolio performance is a key factor to retirement success. How much your portfolio provides will be dependent on four things: 1) How much you put in; 2) The amount and timing of withdrawals; 3) The types of investments (e.g., tax-advantaged); and 4) The growth of your portfolio as compared to inflation.

Performance Milestones Amount Average expected portfolio return 6.40%

Retirement capital today $262,000 Pre-retirement portfolio additions $703,488 Pre-retirement portfolio withdrawals $0 Pre-retirement portfolio growth $3,910,561

Capital available at retirement $4,876,049 Portfolio additions during retirement $0 Portfolio withdrawals during retirement $9,249,594 Portfolio growth during retirement $4,373,545

Capital remaining at end of plan $0

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

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

Contributions, Withdrawals and Growth

Additions to Portfolio Withdrawals from Portfolio

Total Required Total Contribu- Lump Distribution Minimum Withdrawals Other Total Portfolio

Age tions Sum Amounts Strategies Distributions for Need Withdrawals Growth Balance

Beginning Balance $262,000

33 / 31 $21,984 $0 $0 $0 $0 $0 $19,879 $303,863 34 / 32 21,984 0 0 0 0 0 22,809 348,656 35 / 33 21,984 0 0 0 0 0 25,945 396,585 36 / 34 21,984 0 0 0 0 0 29,300 447,869 37 / 35 21,984 0 0 0 0 0 32,890 502,742 38 / 36 21,984 0 0 0 0 0 36,731 561,457 39 / 37 21,984 0 0 0 0 0 40,841 624,282 40 / 38 21,984 0 0 0 0 0 45,239 691,505 41 / 39 21,984 0 0 0 0 0 49,944 763,433 42 / 40 21,984 0 0 0 0 0 54,979 840,396 43 / 41 21,984 0 0 0 0 0 60,367 922,747 44 / 42 21,984 0 0 0 0 0 66,131 1,010,862 45 / 43 21,984 0 0 0 0 0 72,299 1,105,145 46 / 44 21,984 0 0 0 0 0 78,899 1,206,028 47 / 45 21,984 0 0 0 0 0 85,961 1,313,973 48 / 46 21,984 0 0 0 0 0 93,517 1,429,474 49 / 47 21,984 0 0 0 0 0 101,602 1,553,060 50 / 48 21,984 0 0 0 0 0 110,253 1,685,297 51 / 49 21,984 0 0 0 0 0 119,510 1,826,791 52 / 50 21,984 0 0 0 0 0 129,414 1,978,189 53 / 51 21,984 0 0 0 0 0 140,012 2,140,186 54 / 52 21,984 0 0 0 0 0 151,352 2,313,521 55 / 53 21,984 0 0 0 0 0 163,485 2,498,991 56 / 54 21,984 0 0 0 0 0 176,468 2,697,443 57 / 55 21,984 0 0 0 0 0 190,360 2,909,787 58 / 56 21,984 0 0 0 0 0 205,224 3,136,995 59 / 57 21,984 0 0 0 0 0 221,129 3,380,107 60 / 58 21,984 0 0 0 0 0 238,146 3,640,238 61 / 59 21,984 0 0 0 0 0 256,356 3,918,577 62 / 60 21,984 0 0 0 0 0 275,839 4,216,401 63 / 61 21,984 0 0 0 0 0 296,687 4,535,071 64 / 62 21,984 0 0 0 0 0 318,994 4,876,049 65 / 63 0 0 0 0 231,757 0 232,215 4,876,507 66 / 64 0 0 0 0 238,710 0 231,890 4,869,686 67 / 65 0 0 0 0 245,871 0 231,191 4,855,005 68 / 66 0 0 0 0 253,248 0 230,088 4,831,846 69 / 67 0 0 0 0 260,845 0 228,550 4,799,551 70 / 68 0 0 0 125,577 143,094 0 226,544 4,757,424 71 / 69 0 0 0 131,358 145,373 0 224,035 4,704,728 72 / 70 0 0 0 163,693 121,340 0 220,985 4,640,681 73 / 71 0 0 0 171,189 122,394 0 217,355 4,564,452 74 / 72 0 0 0 179,002 123,389 0 213,103 4,475,164 75 / 73 0 0 0 187,141 124,322 0 208,185 4,371,887 76 / 74 0 0 0 195,616 125,191 0 202,554 4,253,634 77 / 75 0 0 0 198,077 132,354 0 196,160 4,119,364 78 / 76 0 0 0 200,215 140,129 0 188,951 3,967,971 79 / 77 0 0 0 200,657 149,897 0 180,871 3,798,288

Continued...

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

Additions to Portfolio Withdrawals from Portfolio

Total Required Total Contribu- Lump Distribution Minimum Withdrawals Other Total Portfolio

Age tions Sum Amounts Strategies Distributions for Need Withdrawals Growth Balance

Beginning Balance $262,000

80 / 78 0 0 0 200,331 160,739 0 171,861 3,609,079 81 / 79 0 0 0 198,735 173,167 0 161,859 3,399,035 82 / 80 0 0 0 195,792 187,268 0 150,799 3,166,774 83 / 81 0 0 0 191,222 203,329 0 138,611 2,910,833 84 / 82 0 0 0 184,686 221,702 0 125,222 2,629,667 85 / 83 0 0 0 174,772 243,808 0 110,554 2,321,642 86 / 84 0 0 0 161,995 269,142 0 94,525 1,985,030 87 / 85 0 0 0 145,616 298,455 0 77,048 1,618,007 88 / 86 0 0 0 125,112 332,281 0 58,031 1,218,644 89 / 87 0 0 0 99,620 371,495 0 37,376 784,906 -- / 88 0 0 0 61,804 423,445 0 14,983 314,640 -- / 89 0 0 0 26,220 288,420 0 0 0

The highlighted row indicates the beginning of retirement. These results are hypothetical and are not a promise of future performance.

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

B.E.S.T. Wealth Management, LLC Brad E.S. Tinnon

EDUCATION ASSUMPTIONS

1. Child will attend University of Missouri – St. Louis for four years at a current yearly cost of $9,314 per child (tuition and books only; room and board not included).

2. A 7% inflation factor is given to education costs. 3. Analysis assumes that you have assets totaling $15,000 for

education goal. 4. All education assets were assigned a rate of return of 5%. 5. There are currently no monthly contributions made toward education

investments.

Education GoalsEducation Goals Total Education Need $99,656 Your Education Plan Provides $28,577

MOST 529

$20,000$0 $100,000$80,000$60,000$40,000

$99,656

$28,577

Education PlanNeed

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

MOST 529 $9,314 $33,991 $239 $193

Totals $9,314 $33,991 $239 $193

1 Single-sum investment alternative assumes that existing savings will continue and Funding Alternatives earn an assumed rate of return of 5.00%. 2 The amount shown is for the first year only; this amount must be increased annually by the assumed inflation rate of 3.00%. These results are hypothetical and are not a promise of future performance.

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

Summary

Education Goals: Amount Annual Years Needed

Goal Amount Until Years Inflated Future Number Name School Needed Needed Needed at Dollars

1 MOST 529 University of Missouri: St. Louis

$9,314 13 4 7.00% $99,656

Total amount needed - future dollars $99,656

Assets and Savings Available:

Current ----------------------Monthly Savings -------------------- Market Year Savings Number of Assigned

Accounts Value Amount Start Years to Save to Goal

MOST 529 MO MOST 529 $15,000 $0 2013 17 1

Total $15,000

Funding Alternatives: ------Additional Amount Needed1 ------

Amount Existing Monthly Monthly Needed Plan Level Inflating

Future Dollars Provides Single Sum Savings Savings2

MOST 529 $99,656 $28,577 $33,991 $239 $193

Total $99,656 $28,577 $33,991 $239 $193

1 All additional savings begin today and assume a rate of return of 5.00%. 2 Inflating savings will increase annually by 3.00%.

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

Existing Plan for MOST 529

Amount needed $9,314 per year needed in 13 years for 4 years inflating annually at 7.00%

Needed in year 1 of goal, $9,314 inflated by 7.00% = $22,445 Needed in year 2 of goal, $9,314 inflated by 7.00% = 24,016 Needed in year 3 of goal, $9,314 inflated by 7.00% = 25,698 Needed in year 4 of goal, $9,314 inflated by 7.00% = 27,496

Total amount needed $99,656

Capital available Current Assumed Amount Market Monthly Rate of Applied

Accounts Value Savings Return To Goals MOST 529 $15,000 $0 5.00% $28,577

Total $15,000 $28,577

Distribution Plan: Year 1 Year 2 Year 3 Year 4

MOST 529 $22,445 $6,131 $0 $0

Total Withdrawals 22,445 6,131 0 0 Liabilities 0 0 0 0 Net for Goal 22,445 6,131 0 0

(Shortfall) $0 ($17,885) ($25,698) ($27,496)

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

Education GoalEducation Goal Capital Analysis for MOST 529: University of Missouri: St. Louis

CC aa p

p i i tt aa l

l AA

vv aa i

i ll aa b

b l l ee

$40,000

$20,000

$0

$-20,000

$-40,000

$-60,000

$-80,000 20282014 202620242022202020182016 2030

Negative Capital BalancePositive Capital Balance

YearYear

Current assets available $15,000 Current monthly savings $0

Current plan provides $28,577 Total need1 $99,656

Funding Alternatives 2

Single sum investment $33,991 Additional level monthly savings $239 Additional inflating monthly savings4 $193

1 Assumes that the cost will increase annually by 7.00% 2 Assumes that the additional savings earn a rate of return of 5.00%. All alternatives are in addition to the current

savings. 4 The amount shown is for the first year only; the savings must increase annually by 3.00%. These results are hypothetical and are not a promise of future performance.

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

Timeline for MOST 529: University of Missouri: St. Louis

Annual Annual Capital Lump Capital Change in Capital Year Need Savings Earnings Sum Withdrawals Liabilities Available

Today: $15,000

2013 $0 $0 $750 $0 $0 $0 $15,750 2014 0 0 788 0 0 0 16,538 2015 0 0 827 0 0 0 17,364 2016 0 0 868 0 0 0 18,233 2017 0 0 912 0 0 0 19,144 2018 0 0 957 0 0 0 20,101 2019 0 0 1,005 0 0 0 21,107 2020 0 0 1,055 0 0 0 22,162 2021 0 0 1,108 0 0 0 23,270 2022 0 0 1,163 0 0 0 24,433 2023 0 0 1,222 0 0 0 25,655 2024 0 0 1,283 0 0 0 26,938 2025 0 0 1,347 0 0 0 28,285 2026 22,445 0 292 0 22,445 0 6,131 2027 24,016 0 0 0 6,131 17,885 (17,885) 2028 25,698 0 0 0 0 25,698 (43,583) 2029 27,496 0 0 0 0 27,496 (71,079)

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

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

B.E.S.T. Wealth Management, LLC Brad E.S. Tinnon

SURVIVOR NEEDS ASSUMPTIONS (John unexpectedly passes away)

1. Monthly expenses estimated to be $6,000 ($7,500 per month with

taxes factored in) until age 90. 2. Combined federal / state tax rate of 20% utilized. 3. Jane will continue to work until her age 65 earning $4,167 per

month. Income is assumed to increase 3% per year. 4. The calculation includes John’s current life insurance death benefits

totaling $300,000. 5. Mortgage and non-mortgage debt will be paid. 6. College funding will NOT be provided. 7. Your plan provides for funeral expenses of $15,000. 8. Your life insurance proceeds are anticipated to grow at 5% annually. 9. Social Security survivor benefits were factored into the analysis:

a. $3,200 / mo – today until 2024 b. $1,600 / mo – 2024 until 2026

10. All retirement assets are immediately available to fund needs of

Jane if needed. 11. Jane will not continue to make retirement contributions to her 403(b)

as her income is not enough to cover monthly expenses.

4133494537

Survivor NeedsSurvivor Needs Capital AnalysisCapital Analysis

In the event of John's DeathIn the event of John's Death

A n n u al

In co

m e

$500,000

$400,000

$300,000

$200,000

$100,000

$0 6359 71 75555135 39 874743 67 79 8331

Jane's Age

Social Security Other IncomeDeficit Capital Withdrawals

Income needs: At Jane's age: 31 45 63 Annual income desired $90,000 $136,133 $231,757 Income available: 88,404 75,636 0 Annual surplus/(shortage) ($1,596) ($60,498) ($231,757)

Assets available at John's death $283,000 Life insurance death benefits 300,000

Total capital available $583,000 Immediate Cash needs (225,000)

Net capital available for income needs $358,000

Additional capital needed today to fund all income shortages and provide for your survivor's needs until Jane's age 90 is $1,244,989.1

These results are hypothetical and are not a promise of future performance. 1 Assumes amount is deposited in the asset designated to receive life insurance benefits, with an initial expected return of 5.00%.

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

Summary In the event of John's Death

Income Needs: At Jane's age: 31 45 63

Expenses $90,000 $136,133 $231,757 Income Available:

Employment 50,004 75,636 0 Social Security Survivor 38,400 0 0 Social Security Survivor 0 0 0 Annual Surplus/(Shortage) ($1,596) ($60,498) ($231,757)

Capital Available: Assets Available $283,000 Life Insurance Death Benefits 300,000

Total Capital Available $583,000

Additional Cash Needs: Debts/Liabilities $225,000 Emergency Reserve Fund 0

Total additional cash needs ($225,000)

Net capital available for income needs $358,000

Your survivor needs goal coverage is 64% based on a total capitalized objective of $3,430,749. Additional capital needed today to fund all income shortages and provide for your survivor's needs until Jane's age 90 is $1,244,989.1

1 Assumes amount is deposited in the asset designated to receive life insurance benefits, with an initial expected return of 5.00%.

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

Income Sources In the event of John's Death

Initial Annual Percent Amount At Jane's Ending Annual

Income Source Amount Available Available Age Age Increase

Jane's Earnings $50,004 100% $50,004 31 45 3.00% Jane's Earnings 75,636 100% 75,636 45 63 3.00% Social Security

Survivor 38,400 100% 38,400 31 42 3.00%

Social Security Survivor

26,577 100% 26,577 42 44 3.00%

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

Capital Available In the event of John's Death

Life Insurance Net Death Benefit ABC Company Group Policy $300,000

Total $300,000

Assets Amount Available First Bank Checking 3,000 First Bank Savings 18,000 ABC Company 401k

ABC Company 401k 120,000 B.E.S.T. Wealth Roth IRA

B.E.S.T. Wealth Roth IRA 12,000 Parkway 403b

Parkway 403b 25,000 B.E.S.T. Wealth Non-IRA Acct

B.E.S.T. Wealth Non-IRA Acct 105,000 Total $283,000

Total Assets and Life Insurance $583,000

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

B.E.S.T. Wealth Management, LLC Brad E.S. Tinnon

SURVIVOR NEEDS ASSUMPTIONS (Jane unexpectedly passes away)

1. Monthly expenses estimated to be $6,000 ($7,500 per month with

taxes factored in) until age 90. 2. Combined federal / state tax rate of 20% utilized. 3. John will continue to work until his age 65 earning $8,334 per month.

Income is assumed to increase 3% per year. 4. The calculation includes Jane’s current life insurance death benefits

totaling $50,000. 5. Mortgage and non-mortgage debt will be paid. 6. College funding will NOT be provided. 7. Your plan provides for funeral expenses of $15,000. 8. Your life insurance proceeds are anticipated to grow at 5% annually. 9. Social Security survivor benefits were NOT factored into the analysis

since Jane does not participate in the Social Security system due to being a teacher.

10. All retirement assets are immediately available to fund needs of

John if needed. 11. John will continue to make retirement contributions until his age 65.

3551394743

Survivor NeedsSurvivor Needs Capital AnalysisCapital Analysis

In the event of Jane's Death TodayIn the event of Jane's Death Today

A n n u al

In co

m e

$500,000

$400,000

$300,000

$200,000

$100,000

$0 37 4541 7349 696557 77 8981 855333 61

John's Age

Other IncomeDeficit Capital Withdrawals

Income needs: At John's age: 33 47 65 Annual income desired $90,000 $136,133 $231,757 Income available: 100,008 151,271 0 Annual surplus/(shortage) $10,008 $15,138 ($231,757)

Assets available at Jane's death $283,000 Life insurance death benefits 100,000

Total capital available $383,000 Immediate Cash needs (225,000)

Net capital available for income needs $158,000

Additional capital needed to fund all income shortages and provide for your survivor's needs until John's age 90 is $297,186.1

These results are hypothetical and are not a promise of future performance. 1 Assumes amount is deposited in the asset designated to receive life insurance benefits, with an initial expected return of 5.00%.

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

Summary In the event of Jane's Death

Income Needs: At John's age: 33 47 65

Expenses $90,000 $136,133 $231,757 Income Available:

Employment 100,008 151,271 0 Annual Surplus/(Shortage) $10,008 $15,138 ($231,757)

Capital Available: Assets Available $283,000 Life Insurance Death Benefits 100,000

Total Capital Available $383,000

Additional Cash Needs: Debts/Liabilities $225,000 Emergency Reserve Fund 0

Total additional cash needs ($225,000)

Net capital available for income needs $158,000

Your survivor needs goal coverage is 91% based on a total capitalized objective of $3,371,177. Additional capital needed to fund all income shortages and provide for your survivor's needs until John's age 90 is $297,186.1

1 Assumes amount is deposited in the asset designated to receive life insurance benefits, with an initial expected return of 5.00%.

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

Income Sources In the event of Jane's Death

Initial Annual Percent Amount At John's Ending Annual

Income Source Amount Available Available Age Age Increase

John's Earnings $100,008 100% $100,008 33 47 3.00% John's Earnings 151,271 100% 151,271 47 65 3.00%

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

Capital Available In the event of Jane's Death

Life Insurance Net Death Benefit Spousal Group $100,000

Total $100,000

Assets Amount Available First Bank Checking 3,000 First Bank Savings 18,000 ABC Company 401k

ABC Company 401k 120,000 B.E.S.T. Wealth Roth IRA

B.E.S.T. Wealth Roth IRA 12,000 Parkway 403b

Parkway 403b 25,000 B.E.S.T. Wealth Non-IRA Acct

B.E.S.T. Wealth Non-IRA Acct 105,000 Total $283,000

Total Assets and Life Insurance $383,000

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®

Life Expectancy in Years

At At At Age Male Female Age Male Female Age Male Female

0 75.38 80.43 30 47.13 51.50 60 20.92 23.97

1 74.94 79.92 31 46.20 50.53 61 20.16 23.14

2 73.98 78.95 32 45.27 49.56 62 19.40 22.31

3 73.00 77.97 33 44.33 48.60 63 18.66 21.49

4 72.02 76.99 34 43.40 47.64 64 17.92 20.69

5 71.03 76.00 35 42.47 46.68 65 17.19 19.89

~ ~ ~ ~ ~ ~

6 70.04 75.01 36 41.54 45.72 66 16.48 19.10

7 69.05 74.02 37 40.61 44.76 67 15.77 18.32

8 68.06 73.03 38 39.68 43.81 68 15.08 17.55

9 67.07 72.04 39 38.76 42.86 69 14.40 16.79

10 66.08 71.04 40 37.84 41.91 70 13.73 16.05

~ ~ ~ ~ ~ ~

11 65.09 70.05 41 36.93 40.97 71 13.08 15.32

12 64.09 69.06 42 36.02 40.03 72 12.44 14.61

13 63.10 68.07 43 35.12 39.10 73 11.82 13.91

14 62.12 67.08 44 34.22 38.17 74 11.21 13.22

15 61.14 66.09 45 33.33 37.24 75 10.62 12.55

~ ~ ~ ~ ~ ~

16 60.18 65.11 46 32.45 36.32 76 10.04 11.90

17 59.22 64.13 47 31.57 35.41 77 9.48 11.26

18 58.27 63.15 48 30.71 34.50 78 8.94 10.63

19 57.33 62.18 49 29.84 33.59 79 8.41 10.03

20 56.40 61.20 50 28.99 32.69 80 7.90 9.43

~ ~ ~ ~ ~ ~

21 55.47 60.23 51 28.15 31.80 81 7.41 8.86

22 54.54 59.26 52 27.32 30.91 82 6.94 8.31

23 53.63 58.29 53 26.49 30.02 83 6.49 7.77

24 52.71 57.32 54 25.68 29.14 84 6.06 7.26

25 51.78 56.35 55 24.87 28.27 85 5.65 6.77

~ ~ ~ ~ ~ ~

26 50.86 55.38 56 24.06 27.40 86 5.26 6.31

27 49.93 54.40 57 23.26 26.53 87 4.89 5.87

28 49.00 53.44 58 22.48 25.67 88 4.55 5.45

29 48.07 52.47 59 21.69 24.82 89 4.22 5.06

Source: Social Security Administration, Period Life Table, 2007 updated April 10, 2012.

B.E.S.T. Wealth Management, LLC

September 30, 2013

John and Jane Doe Presented by: Brad E.S. Tinnon, CFP®