I am having a lot of problem with my Financial Facilitator. Please help

CLIENT INFORMATION Update: 2011 Personal Client: Tyler Bedo Co-client: Mia Bedo Tyler Bedo Mia Bedo DOB: 2/2/1974 Age: 43 DOB: 2/25/1974 Age: SSN: 555-55-5555 SSN: 555-55-4444 Social Security "full" retirement age: 67 Social Security "full" retirement age: Assumed age at death: 86 Assumed age at death: Home Ph: Home Ph: Office Ph: Office Ph: Mobile Ph: Mobile Ph: Street: City: 727 Success Lane Springfield Address Apt # : State: MO 43 67 86 Zip Code: Children: DOB 2/16/2011 1 Becky Bedo Age 5 2 3 Client's Employer: Tylor Golden Tee Golf Street: City: State: Address: 6282 Star Drive Springfield MO Zip Code: Duration: 12 years Position: Sale Consultant Ann Salary: $68,467 Client Information Occupation Co-client's Employer: Street: City: State: Mia The family and Career Institut Address: 5600 Cedo Lane Road Springfield MO Zip Code: Duration: 3 years Position: Career Counselor Ann Salary: $32,496 1 Client Information 2 CLIENT INFORMATION NOTES and REMINDERS Client Information 3 Client Information 4 ANNUAL INCOME STATEMENT 2011 Potentially Taxable Income Client Earned Income (before salary deduction) Wages, Salaries, and Tips $68,467 Bonuses and Commissions $34,233 Other Earned Income Subtotal = $102,700 Unearned Income Taxable Interest Ordinary Dividends Tax Refunds and Credits Alimony Business Income (Loss) Realized Capital Gains (Losses) IRA and Pension Distributions Rental / Royalty / Trust Income Other Unearned Income Subtotal = $0 Total Potentially Taxable Income Non-taxable Income Allowances Child Support Gifts Qualified Roth IRA Distributions Grants / Loans / Scholarships Other Non-taxable Income Subtotal = Total Income (before salary reduction) Income Statement Co-client $32,496 $32,496 $0 $102,700 $32,496 $0 $0 $102,700 $32,496 5 INCOME STATEMENT NOTES & REMINDERS Line 10 - Taxable Interest/Dividends - from Sch A - where are they? Income Statement 6 ANNUAL DEDICATED EXPENSE STATEMENT 2011 POTENTIALLY TAXABLE INCOME Client $102,700 Salary Reduction for Employer-Provided Benefits Employer-Sponsored Health Care Premiums Sec. 125 "Cafeteria Plan" Contribution $3,600 Other Pretax Benefit Expenses Tax-Sheltered Retirement Contribution $4,108 Adjusted Potentially Taxable Income = $94,992 Total Nontaxable Income + $0 Total Income $94,992 TAXES PAYABLE * Social Security / FICA Estimate Actual Social Security Withholding $10,286 * Federal Income Tax Estimate + Actual Federal Tax Withholding $22,178 * State Income Tax Estimate + Actual State Tax Withholding $6,268 * Can use estimates from the Income Tax Estimator. (Total Taxes Estimated) DISPOSABLE INCOME (Available to spend, save, or invest) DEBT SERVICE Housing Payment (Rent / Mortgage / HOA Dues) Home Equity Payment(s) Auto Payment(s) / Lease(s) Student Loan Payment(s) Secured Consumer Debt (furniture, etc.) Unsecured Credit Payment(s) Credit Card Payment(s) Other Payment(s) Co-client $32,496 $3,250 $29,246 $0 $29,246 * Amounts should come from bottom of the Goal Cost Estimator. Total "Dedicated" Expenses Income Available for "Discretionary" Expenses Dedicated Expenses $124,238 $10,286 Possible Overpayment of $22,178 Possible Overpayment of $6,268 $0 $124,238 $13,056 $5,412 $5,100 $23,568 $2,000 $700 $2,064 $175 (Total Insurance) $4,939 (Total Saving / Investment) $9,156 $37,663 $86,575 * Only include these amount if not paid through a salary reduction agreement SAVINGS / INVESTMENTS Emergency Fund Savings * Specified Short-Term Goal(s) * Specified Intermediate-Term Goal(s) * Specified Long-Term Goal(s) Optional Retirement / IRA Specified Education Goal(s) Special Needs Savings Other Non-specified Goals Reinvestment of Capital Gains & Dividends $124,238 Possible Overpayment of (Total Debt Management) INSURANCE PREMIUMS Auto Homeowner's/Renter's (if not included in mortgage) * Life * Disability * Health * Long-Term Care Other Insurance Combined $135,196 $1,800 $7,356 7 ANNUAL DEDICATED EXPENSE STATEMENT NOTES & REMINDERS Lines 41 - 50 - See p. 37 in eText! Dedicated Expenses 8 SPECIFIED GOAL FUTURE COST ESTIMATOR Name Goal #1: Current cost of goal Estimated inflation rate Estimated future cost of goal Value of current savings Are you saving for this goal using tax-deferred accounts? Anticipated pre tax rate of return = Monthly savings requirement Current monthly savings Future value of suggested savings Future value of actual savings #VALUE! Years until goal achievement = $0 No Estimated tax-adjusted rate of return = $0 #VALUE! #VALUE! #VALUE! Name Goal #2: Current cost of goal Estimated inflation rate Estimated future cost of goal Value of current savings Are you saving for this goal using tax-deferred accounts? Anticipated pre tax rate of return = Monthly savings requirement Current monthly savings Future value of suggested savings Future value of actual savings Years until goal achievement = $0 $0 No Estimated tax-adjusted rate of return = 13 #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Name Goal #3: Current cost of goal Estimated inflation rate Estimated future cost of goal Value of current savings Are you saving for this goal using tax-deferred accounts? Anticipated pre tax rate of return = Monthly savings requirement Current monthly savings Future value of suggested savings Future value of actual savings 20 No Estimated tax-adjusted rate of return = #VALUE! #VALUE! Goal Cost Estimator Years until goal achievement = $0 #VALUE! #VALUE! #VALUE! #VALUE! 9 Name Goal #4: Current cost of goal Estimated inflation rate Estimated future cost of goal Value of current savings Are you saving for this goal using tax-deferred accounts? Anticipated pre tax rate of return = Monthly savings requirement Current monthly savings Future value of suggested savings Future value of actual savings Years until goal achievement = $0 Estimated tax-adjusted rate of return = $0 Name Goal #5: Current cost of goal Estimated inflation rate Estimated future cost of goal Value of current savings Are you saving for this goal using tax-deferred accounts? Anticipated pre tax rate of return = Monthly savings requirement Current monthly savings Future value of suggested savings Future value of actual savings Years until goal achievement = $0 Estimated tax-adjusted rate of return = $0 Name Goal #6: Current cost of goal Estimated inflation rate Estimated future cost of goal Value of current savings Are you saving for this goal using tax-deferred accounts? Anticipated pre tax rate of return = Monthly savings requirement Current monthly savings Future value of suggested savings Future value of actual savings Short-term = Intermediate-term = Long-term = Goal Cost Estimator Years until goal achievement = $0 Estimated tax-adjusted rate of return = $0 Planning Period Goal Cost Summator $0 These amounts should be entered in rows 43, 44, and/or 45 of $0 the Dedicated Expense Sheet. Be careful not to double count $0 the savings goal expense by entering the same amount for the client and co-client. 10 SPECIFIED GOAL FUTURE COST ESTIMATOR NOTES & REMINDERS Goal Cost Estimator 11 Goal Cost Estimator 12 ANNUAL DISCRETIONARY EXPENSE STATEMENT 2011 Disposable Income Total Expenses from Dedicated Expense Statement Client UNCOMMITTED EXPENSES Communication Subscriptions (newspapers, magazines, etc.) Telephone (cell, landline, etc.) Alarm System Monitoring Entertainment Media Networks (internet or cable/satellite TV) Hobbies (model building, reading, sewing, etc.) Entertainment and Recreation (movies, etc.) Club Dues (health, music, sports, etc.) Education Lessons (music, sports, etc.) Primary School Secondary School Post-secondary/College Tuition Room & Board Books & Fees Travel Professional (cont ed, professional dues, etc.) Food Groceries Away From Home Housing Real Estate Tax (if not included with mortgage) Private Mortgage Insurance (if not in mortgage) Household Maintenance & Repairs Utilities (water, sewer, gas, oil, trash, electric) Household & Personal Care Clothing and Accessories Laundry/Drycleaning Personal Care & Grooming (hairdresser, etc.) Household Furnishings & Equipment Domestic Help (maids, baby-sitters, etc) Allowances Child Care / Elder Care Lawn/Yard (maintenance and service) Medical Health (medical, dental and eye care) Deductibles and Co-pays Prescriptions Unreimbursed Expenses Transportation Personal (gas, maintenance, inspection, etc.) Personal (licensing, registration, etc.) Parking & Tolls Public (trains, buses, taxis, etc.) Discretionary Expenses Co-client Enter Co-client specific data only if expenses are kept seperately. $960 $1,500 $600 $124,238 $37,663 Combined $2,460 (sub-total) $5,100 (sub-total) $2,700 $1,800 $0 (sub-total) $5,100 $3,300 $1,675 $8,400 (sub-total) $8,635 (sub-total) $2,760 $4,200 $2,800 $4,400 (sub-total) $1,200 $400 $1,080 (sub-total) $240 $240 $600 $1,500 $450 $1,950 (sub-total) 13 ANNUAL DISCRETIONARY EXPENSE STATEMENT Personal Property Tax Banking and Investment User Fees (safe deposit box, etc.) Annual or Monthly Fees IRA Maintenance Fees Commissions Legal & Accounting Service Fees Miscellaneous Contributions (religious, charitable, etc.) Travel Personal Vacations / Long Weekends Business Tobacco / Gambling / Alcohol Child Support Alimony Postage / Shipping Gifts Other Total "Discretionary" Expenses $520 (sub-total) $120 $400 $12,400 (sub-total) $5,800 $3,000 $1,800 $1,800 $44,945 $0 $44,945 Total Annual Income Remaining = $41,630 Congratulations, you have income remaining for additional savings Discretionary Expenses 14 ANNUAL DISCRETIONARY EXPENSE STATEMENT NOTES & REMINDERS Discretionary Expenses 15 ANNUAL DISCRETIONARY EXPENSE STATEMENT Discretionary Expenses 16 BALANCE SHEET 2011 ASSETS Allocation Classification Name / Type of Holding Monetary / Liquid Assets Checking Savings cash cash $3,500 $10,000 Investment Assets Miscellaneous EE Bonds Haley G&Ifund Kaza Fund Ruth Fund Sagebrush Fund bond other other bond other $25,000 $69,000 $43,000 $13,000 $8,000 Retirement Assets 401K Consumer 401K Graham IRA 401K Rollover IRA Traditional IRA Conservative Annuity other other hedge hedge bond cash equity $69,000 $134,000 $52,000 $15,250 $32,500 $52,000 $125,000 Insurance Assets Manhattan Insurance Manhattan Insurance Balance Sheet Face Value Value Ownership TaxShelter Joint Joint Client Client Client Client Client Client Client Cash Value $8,750 $8,350 17 Education / Special Funding Assets Name / Type of Holding Real Assets Primary Residence Secondary Residence Vacation Home Personal/Collectible Assets Auto 1 Auto 2 Auto 3 Watercraft (Boat/Jet-ski) Jewelry Collectibles Use/Lifestyle Assets Furniture Electronics Balance Sheet Allocation Classification Value Ownership Value Ownership $250,000 Joint $20,000 $15,500 Joint Joint $5,800 $10,000 joint joint $45,000 $8,000 Joint Joint TaxShelter 18 LIABILITIES Name of Holding Current Liabilities Credit Card Credit Card Credit Card Short-term Installment Long-term Liabilities First Mortgage (Primary Residence) Second Mortgage / Home Equity Automobile 1 Automobile 2 Balance Sheet Interest Rate Amount Ownership 18.25% 16.75% $3,500 $2,000 Joint Joint 7.88% $130,562 Joint 3.90% $11 Joint Tax-Advantage Account Type 19 Summary Net Worth Statement* ASSETS Monetary / Liquid Investment Retirement Insurance (cash value only) Education / Special Needs Real Personal / Collectible Use / Lifestyle Total LIABILITIES Current Long-term Total + + $13,500 $158,000 $479,750 $17,100 $0 $250,000 $51,300 $53,000 $1,022,650 $5,500 $130,573 $136,073 NET WORTH $886,577 *Includes 100% of all values listed above, regardless of ownership designation. Balance Sheet 0 20 BALANCE SHEET NOTES & REMINDERS Balance Sheet 21 BALANCE SHEET NOTES & REMINDERS Balance Sheet 22 Balance Sheet 23 Balance Sheet 24 TAX ESTIMATOR WORKSHEET 2011 Federal Income Tax Estimator Potentially Taxable Inccome Filing Status Client $94,992 Co-client $29,246 Married Filing Jointly Combined $124,238 2 Federal Adjustment Estimated Federal Adjusted Gross Income Federal Deduction Standard $11,600 Federal Exemption(s) $124,238 Itemized number: amount: Estimated Federal Taxable Income $112,638 Gross Estimated Federal Tax Liability $0 Marginal Tax Rate 25.00% Average Tax Rate 16.43% $20,409 Tax Credits Net Estimated Federal Tax Liability $20,409 *Estimate of income tax does not consider special tax rates, such as for capital gains and qualified dividends. Alternative minimum tax is not estimated. Social Security / FICA Tax Estimator FICA Tax Eligible Income Social Security Tax Liability Client Co-client Combined $94,992 $29,246 $124,238 $7,267 $2,237 $9,504 *Estimation of social security tax does not include extra tax on self-employed. State Income Tax Estimator State of Residence MO State Gross Taxable Income Marginal Tax Bracket Client $94,992 Co-client 35.00% Combined $29,246 $124,238 State Deduction(s) number: 0 amount: $0 State Exemption(s) number: 0 amount: $0 State Adjustments Estimated State Taxable Income Income Tax Estimator $124,238 25 Gross Estimated State Tax Liability $43,483 Miscellaneous Tax Adjustments or Credits Net Estimated State Tax Liability Income Tax Estimator $43,483 Average Tax Rate 35.00% 26 TAX ESTIMATOR WORKSHEET NOTES & REMINDERS Income Tax Estimator 27 Income Tax Estimator 28 FUTURE COST OF EDUCATION ESTIMATOR Costs for 1st Child Current Annual Cost of College Years to Complete College $20,000 Anticipated Inflation Rate Years until Start of College 13 4 Anticipated Annual Pre-tax Return 5.00% Effective Rate = 0.00% Tax-advantaged Is the primary education funding account taxable or tax-advantaged? Savings Need for 1st Child Total Present Cost of Education = Total Future Cost of Education = $162,548 $162,548 Current Value of Savings = $0 Additional Immediate Funding Needed = $162,548 Fixed Monthly Savings = #DIV/0! Serial Monthly Savings = $741.86 Costs for 2nd Child Current Annual Cost of College Years to Complete College Anticipated Inflation Rate Years until Start of College Anticipated Annual Pre-tax Return Effective Rate = Is the primary education funding account taxable or tax-advantaged? Savings Need for 2nd Child Total Present Cost of Education = Total Future Cost of Education = Current Value of Savings = Additional Immediate Funding Needed = Fixed Monthly Savings = Serial Monthly Savings = Costs for 3rd Child Current Annual Cost of College Years to Complete College Anticipated Inflation Rate Years until Start of College Anticipated Annual Pre-tax Return Effective Rate = Is the primary education funding account taxable or tax-advantaged? Savings Need for 3rd Child Total Present Cost of Education = Total Future Cost of Education = Current Value of Savings = Additional Immediate Funding Needed = Fixed Monthly Savings = Serial Monthly Savings = Education Cost Estimator 29 FUTURE COST OF EDUCATION ESTIMATOR NOTES & REMINDERS Please fill in all fields - e.g. Line 6! Education Cost Estimator 30 Education Cost Estimator 31 LIFE INSURANCE ESTIMATION WORKSHEET Client's Age = 43 Client's Total Income = 43 Co-client's Age = Co-client's Total Income = Total Household Expenses = Childrens' Ages 5 1 2 0 3 0 Co-client's Death Client's Death Needs-Based Analysis "Net" Total = Final Expenses Final Expenses (medical, funeral, burial, etc.) Estate Administration (legal, executor, etc.) Federal Estate Taxes (from Estate Tax Estimator) State Estate Taxes (if any) Other Immediate Needs (income taxes, etc.) Total Final Expenses + + + + = Debt Elimination Expenses (not paid from estate) Credit Card and Consumer/Installment Debt Automobile Debt Desired Mortgage Reduction Other Debt to be Paid Off at Death Total Debt Elimination Expenses + + + = Transitional Expenses (total estimated cost amounts) Education/Re-training Expenses for Survivor Child Care and Homemaker Services + Other Transitional Needs + Total Transitional Expenses = #VALUE! = #VALUE! $0 + + + + = $0 $0 + + + = $0 $0 + + = $0 Anticipated Household Expenses Which expenses should be used for calculations? If "user defined" was choosen, enter new expenses => Selected expenses $0 Determine Real Rate of Return on Investments Until Survivor's Retirement Assumed gross investment return Combined (fed, state, & local) marginal tax bracket Projected inflation rate Projected real rate of return 0.00% Household Expenses during Dependency Period (needs while children are at home) Number of people remaining in household Household Expense Ratio (assumed to be 70% or greater of previous income) x N/A x Anticipated Annual Family Expenses = = Eligible Soc. Sec. Dependent Survivor's Benefit Anticipated Annual Survivor Earned Income Pension Benefits and Income Income to be Replaced Until Children/Dependents are Self-Supporting = = Years until youngest child reaches age 18 = = Life Insurance Estimator $0 0.00% N/A 32 Total Dependency Period Expenses = Household Expenses during Survivor's Life Number of people remaining in household Household Expense Ratio (assumed to be 70% or greater of previous income) Anticipated Annual Family Expenses Anticipated Annual Survivor Earned Income Pension Benefits and Income Income to be Replaced Until Spouse Retires $0 N/A #VALUE! Years until survivor reaches age 60 = Total Survivor Life Expenses = N/A #VALUE! #VALUE! x = = 17 #VALUE! = = 17 #VALUE! = Intermediate Retirement Expenses (Age 60 to "Full Retirement") Survivor's Age at "Full Retirement" = 67 Survivor's Desired Annual Income at Retirement Anticipated Annual Social Security Spousal Survivor's Benefit at Age 60 Income to be Replaced During Retirement = Total Intermediate Retirement Expenses = Retirement Expenses ("Full Retirement Age" to Death) Survivor's Age at Death = Survivor's Desired Annual Income at Retirement Anticipated Annual Social Security Retirement Income at Full Retirement Age Anticipated Annual Pension Income at Full Retirement Age Income to be Replaced During Retirement = Total Retirement Expenses = Total Present Value of Funds Needed to Cover Needs Total Expenses = Assets and Insurance Available to Cover Needs Death Benefit from Current Insurance Policies Retirement Savings and Investments + Other Assets + Total Assets = #VALUE! = Determine Real Rate of Return on Investments After Survivor's Retirement Assumed gross investment return Combined (Fed, state & local) marginal tax bracket Projected inflation rate Projected real rate of return 0.00% Life Insurance Estimator $0 (needs after children leave home) x = = Educational Expenses for Your children Total Educational Expenses (private grade school and/or college) = 0.00% = $0 $0 = = = 86 67 $0 $0 $0 86 $0 - $0 $0 = = $0 $0 #VALUE! = #VALUE! $0 + + = $0 33 Needs-Based Analysis "Net" Total = #VALUE! = #VALUE! ADDITIONAL METHODS for ESTIMATING "NET" LIFE INSURANCE NEEDS Co-client's Client's Death Death Human-Life Value (HLV) Approach Total After-tax Rate of Return Years until survivor reaches full retirement age Current income of decedent Inflation Adjusted HLV Approach Total After-tax Rate of Return Inflation Rate Serial Rate of Return Years until retirement of survivor Current income of decedent Capital Retention (CR) Approach Total After-tax Rate of Return Years until retirement of survivor Current income of decedent Replacement Ratio Adjusted CR Approach Total After-tax Rate of Return Years until retirement of survivor Current income of decedent Replacement Ratio Current income of survivor Income Retention Approach Total After-tax Rate of Return Inflation Rate Serial Rate of Return Years until retirement of survivor Annual survivor income need Replacement Ratio Current income of survivor Income Multiplier Approach Total = = = = $0 0.00% 24 $0 = = = = $0 0.00% 24 $0 = = = = = = $0 0.00% = = = = = = $0 0.00% = = = = = #DIV/0! 0.00% 24 $0 = = = = = #DIV/0! 0.00% 24 $0 = = = = = = #DIV/0! 0.00% 24 $0 0.00% $0 = = = = = = #DIV/0! 0.00% 24 $0 0.00% $0 = = = = = $0 0.00% 0.00% 0.00% 24 $0 0.00% $0 = = = = = $0 0.00% 0.00% 0.00% 24 $0 0.00% $0 $0 = = = Desired multiplier (range: 5 - 15) Current income of decedent Average "Gross" Total Need Assets and Insurance Available to Cover Needs Average "Net" Total Need = Life Insurance Estimator 0.00% 24 $0 = 0.00% 24 $0 $0 $0 $0 #DIV/0! $0 #DIV/0! #DIV/0! $0 #DIV/0! = 34 LIFE INSURANCE ESTIMATION WORKSHEET NOTE & REMINDERS Life Insurance Estimator 35 Client's Net Life Insurance Need Based on Different Analysis Methods $1 $1 $1 $1 $1 $1 $0 $0 $0 $0 $0 $0 Needs -Bas ed Analys is "Net" Total $0 $0 $0 Hum an-Life Value (HLV) Approach Total Inflation Adjusted HLV Approach Total Capital Retention (CR) Approach Total Incom e Retention Approach Total Incom e Multiplier Approach Total Average "Net" Total Need Co-client's Net Life Insurance Need Based on Different Analysis Methods $1 $1 $1 $1 $1 $1 $0 $0 $0 $0 $0 $0 Needs -Bas ed Analys is "Net" Total $0 $0 $0 Hum an-Life Value (HLV) Approach Total Inflation Adjusted HLV Approach Total Capital Retention (CR) Approach Total Incom e Retention Approach Total Incom e Multiplier Approach Total Average "Net" Total Need Life Insurance Estimator 36 Life Insurance Estimator 37 SHORT- and LONG-TERM DISABILITY ESTIMATOR Client Co-client Projected length of disability (in months) Assume disabled person qualifies for Social Security benefits Elimination Period (in months) Short-term policy = Long-term policy = Social Security = N/A N/A Benefit Period (in months) Short-term policy = Long-term policy = Social Security = N/A N/A Monthly Expenses Will saving continue during disability period? Dedicated Discretionary Total $2,376 + $3,745 = $0 Please answer savings question in cell I8 Pre-disability Monthly Income (For comparison purposes) Client Co-client Earned $8,558 $2,708 Unearned + $0 $0 Gross Income Total = $8,558 $2,708 Estimated After-tax "Net" Total = $3,912 $1,238 Pre-disability expense coverage ratio = N/A N/A From this point forward assume => Scenario 1: Client Disability Scenario 2: Co-client Disability Joint $11,266 $0 $11,266 $5,150 N/A Scenario 3: Simultaneous Disability Post-disability Monthly Income Continuing after-tax income Net earned income from disabled client + Total = Disability Insurance Estimator Client $1,238 Co-client $3,912 $1,238 $3,912 Simultaneous $0 $0 $0 38 Short-term Disability Need Elimination Period Need Please enter elimination period above Client Co-client Simultaneous Disability Disability Disability Total monthly income $1,238 $3,912 $0 Total monthly expenses $0 $0 $0 Monthly shortfall during elimination period = $1,238 $3,912 $0 Total S/T elimination period shortfall = $0 $0 No short-term elimination period selected, enter information above or skip to long-term. $0 S/T Disability Ins. Monthly Benefit Policy purchased with "after-tax" dollars Tax-free Social Security benefits + Total taxfree benefits = $0 $0 Policy purchased with "pre-tax" dollars Taxable Social Security benefits Other taxable benefits or income + Total taxable benefits benefit period selected, = enter information $0 above or skip$0to long-term. No short-term $0 $0 $0 $0 $0 $0 $0 Estimated Taxes on Short-term Benefits* Federal Income Tax State Income Tax + Social Security (FICA) Tax + Total = Total Net Income During Short-term Disability Short-term disability expense coverage ratio = = $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Client $1,238 N/A Co-client $3,912 N/A Simultaneous $0 N/A Long-term Disability Need Please enter elimination period above Client Co-client Simultaneous Disability Disability Disability Total monthly income $1,238 $3,912 $0 Total monthly expenses $0 $0 $0 Monthly shortfall during elimination period = $1,238 $3,912 $0 Effective elimination period (months) 0 0 N/A Total L/T elimination periodperiod shortfall = $0 $0 to results. $0 No long-term elimination selected, enter information above or skip Elimination Period Need L/T Disability Ins. Monthly Benefit Policy purchased with "after-tax" dollars Tax-free Social Security benefits + Total taxfree benefits = $0 $0 Policy purchased with "pre-tax" dollars Taxable Social Security benefits Other taxable benefits or income + Total taxable benefits benefit period selected, = enter information $0 $0to results. No long-term above or skip $0 $0 $0 $0 $0 $0 $0 Estimated Taxes on Long-term Benefits* Federal Income Tax State Income Tax + Social Security (FICA) Tax + Total = Total Net Income During Long-term Disability Long-term disability expense coverage ratio Disability Insurance Estimator = = $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Client $1,238 N/A Co-client $3,912 N/A Simultaneous $0 N/A 39 Results Total emergency fund savings need to cover all elimination periods Client Short-term elimination period coverage $0 Long-term elimination period coverage + $0 Total elimination period coverage = $0 Co-client $0 $0 $0 Simultaneous $0 $0 $0 Monthly surplus or shortfall during short-term disability (after elimination period) If the primary client becomes disabled, there is an income surplus = $1,238 If the co-client becomes disabled, there is an income surplus = $3,912 If both clients become disabled, there is an income surplus = $0 Monthly surplus or shortfall during long-term disability (after elimination period) If the primary client becomes disabled, there is an income surplus = $1,238 If the co-client becomes disabled, there is an income surplus = $3,912 If both clients become disabled, there is an income surplus = $0 Disability Insurance Estimator 40 SHORT- and LONG-TERM DISABILITY ESTIMATOR NOTE & REMINDERS Disability Insurance Estimator 41 SHORT- and LONG-TERM DISABILITY ESTIMATOR NOTE & REMINDERS Disability Insurance Estimator 42 Disability Insurance Estimator 43 RETIREMENT NEED ESTIMATOR Current Household Earned Income = $135,196 Estimated Future Marginal Tax Bracket = Primary Earner Target Retirement Age = Years until primary earner retirement = 0 Annual Anticipated Inflation Rate = Annual Anticipated Salary Growth Rate = $135,196 Projected Salary (Earned Income) at Retirement Your Preretirement Allocation Total Domestic Equities = 0.00% Large-Cap Large-Cap Current Allocation 0.00% Mid-Cap Mid-Cap 0.00% Small-Cap Small-Cap 0.00% Total Domestic Bonds = 0.00% Government 0.00%Large-Cap Government (1999-2004) Corporate 0.00%Mid-Cap Corporate (1995-2004) High-Yield 0.00%Small-Cap High-Yield (1985-2004) Real-Estate 0.00%Gov ernment Total International Equities= 0.00% EAFE 0.00%Corporate EAFE Gold 0.00%High-Yield Total Hedges = 0.00% Cash 100.00%Real-Estate EAFE 100% Real-Estate Gold Gold Cash Cash = 100.00% Cash 100.00% Portfolio Tax-Deferred Rate of Return Equivalent After-Tax Rate of Return Your portfolio allocation is 1: Income Total Domestic Equities = Large-Cap Mid-Cap Small-Cap Total Domestic Bonds = Government Corporate High-Yield Total International Equities= EAFE Total Hedges = Real-Estate Gold Cash = Cash 100.00% Past performance is no guarantee of future results. Your Post-retirement Allocation 0.00% Retirement Allocation Large-Cap Mid-Cap Small-Cap Government Corporate High-Yield Real-Estate EAFE Gold Cash 100% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Large-Cap 0.00%Mid-Cap 0.00%Small-Cap 0.00%Gov ernment 0.00%Corporate 0.00%High-Yield 0.00%Real-Estate 100.00%EAFE Gold 100.00% Portfolio Tax-Deferred Rate of Return Equivalent After-Tax Rate of Return Your portfolio allocation is 1: Income Retirement Need Estimator 0.00% 0.00% Cash 0.00% 0.00% Past performance is no guarantee of future results. 44 Your Projected Retirement Savings Need Current Retirement Assets 401(k) / 403(b) Projected salary replacement SEP / Simple / Keogh Age to begin Soc. Sec. benefit Def. Cont. Plan / VUL Soc. Sec. annual benefit Trad / Roth IRA Primary earner age at death Non-Qualified Total years in retirement Total = $0 Current Percentage of Retirement Assets in Tax-sheltered Accounts = 0 Projected Returns Data Which set of returns should be used for projections? Portfolio Ave User-defined Selected Pre-retirement return 0.00% 0.00% Post-retirement return 0.00% 0.00% Please choose return information before continuing. Current Additional Annual Retirement Funding (assumes end-of-year deposits) Account 401(k) / 403(b) SEP / Simple / Keogh Def. Cont. Plan / VUL Trad / Roth IRA Non-Qualified Total annual contribution = Amount ($) $7,358 Employer Match ($) Annual Contribution Growth Rate $0 $0 $0 $0 $0 N/A N/A N/A N/A N/A $7,358 Early Retirement Funding (assumes beginning-of-year withdrawals) Years in "early" retirement First year need = $0 Value of current savings $0 Total savings need $0 $0.00 The Client May Fall Short the Goal By $0 Normal Retirement Funding (assumes beginning-of-year withdrawals) Years in "normal" retirement First year need = $0 Value of current savings $0 Total savings need $0 $0.00 The Client May Fall Short the Goal By $0 Additional Funding Requirement Average Tax-Deferred Monthly Savings to Achieve Goal But, if you wait years to start saving, you need Retirement Need Estimator Value at Retirement 0 0 Monthly $0.00 N/A Annually or or $0.00 N/A 45 RETIREMENT NEED ESTIMATOR NOTES & REMINDERS Retirement Need Estimator 46 Retirement Need Estimator 47 FEDERAL ESTATE TAX ESTIMATOR First Death Tax Liability 2011 Client Death Balance Sheet Assets Financial (Non-retirement) Retirement Education Real Personal/Collectible Use Life Insurance The decedent is NOT the insured. (Cash-value only) The decedent was the insured. (Death benefit amount) Trust Assets (includable in estate) QTIP property Revocable trust property Gross Estate Gift taxes paid during most recent three years prior to 1st death. "Grossed-up" Estate Co-client Death ### ### ### ### ### ### ### $0 $0 $0 $0 Expenses (paid from estate) Funeral / burial expenses Estate admin / legal expenses Outstanding liabilities Income taxes Executor fee (approx 2%) Charitable contributions Total expenses $0 $0 Reductions (prior to or at first death) Qualified marital transfer Planned tax-free gifts Additional ssets to be irrevocably removed prior to date of first death Total reductions $0 $0 Taxable Estate $0 $0 Adjusted taxable gifts Gift-adjusted Taxable Estate $0 $0 $0 $0 $0 ## $0 $0 $0 $0 $0 First Death Estate Tax Liability Gross tax liability Estate tax credit Gift tax on adjusted taxable gifts First death estate tax liability Congratulations, both Unified Transfer Tax Credits are fully used. Estate Tax Estimator 48 Second Death Tax Liability 2011 Original Gross Estate Co-client Death (less expenses and transfers) $0 Assets received from marital transfer upon first death $0 Life insurance proceeds received upon first death, if not received via marital transfer Client Death $0 ### ### ### $0 ### ### ### ### Net estate growth rate after 1st death Gross Estate (after growth) Gift taxes paid during most recent three years prior to 2nd death. "Grossed-up" Estate ### $0 $0 $0 $0 Reductions (subsequent to first death) Planned tax-free gifts Additional assets to be irrevocably removed subsequent to first death Total Reductions $0 $0 Taxable Estate $0 $0 Adjusted taxable gifts Gift-adjusted Taxable Estate $0 $0 $0 $0 $0 ## $0 $0 $0 $0 $0 $0 Second Death Estate Tax Liability Gross tax liability Estate tax credit Carryover Credit Gift tax on adjusted taxable gifts Second death estate tax liability ### Notice: For estates of decedents dying in 2011 and 2012, the unused portion of a deceased spouse's exclusion amount can be used to to increase the applicable exclusion amount (and applicable unified credit) of the second spouse to die. Aggregate estate tax liability If Client dies first $0 If Co-client dies first $0 Estate Tax Estimator 49 FEDERAL ESTATE TAX ESTIMATOR NOTES & REMINDERS ### ### Estate Tax Estimator 50 Estate Tax Estimator 51 Client Information Page Age Retirement Age Salary SUMMARY OF INPUTS and RESULTS Client Co-client 43 43 67 67 $68,467 $32,496 Income Statement (Ded. Exp.*) Page Earned Income (before salary reduction) Unearned Income Salary Reductions for Benefits* Adjusted Potentially Taxable Income* Non-taxable Income Total Income* Client $102,700 $0 $7,708 $94,992 $0 $94,992 Co-client $32,496 $0 $3,250 $29,246 $0 $29,246 Dedicated Expense Page Total Taxes Estimated Debt Management Insurance Premiums Savings / Investments Total Dedicated Expenses Client Co-client N/A Discretionary Expense Page Total Discretionary Expenses Client $44,945 Balance Sheet Total Assets Total Liabilites Net Worth $1,022,650 $136,073 $886,577 Income Tax Page Filing Status Deductions Exemptions Estimated Federal Tax Estimated State Tax FICA Tax Education Cost Page Current Annual Cost Inflation Rate Rate of Return Years until Beginning of College Taxable or Tax-advantaged Estimated Future Total Cost Additional Fixed Monthly Funding Additional Serial Monthly Funding Summary of Inputs $0 $23,568 $4,939 $9,156 $37,663 $0 $0 N/A N/A Co-client N/A Married Filing Jointly $11,600 0 $20,409 $43,483 $9,504 Child 1 $20,000 5.00% 0.00% 13 Tax-advantaged $162,548 #DIV/0! $742 Child 2 Child 3 $0 0.00% $0 0.00% 0 0 0 0 52 Life Insurance Page (Needs-based) Final Expenses Debt Reduction Transitional Period w/ Dependents Survivor Pre- and Post-retirement Total Life Insurance Page (Other methods) After-tax Rate of Return Inflation Rate Years Until Retirement of Survivor Income Multiplier Client Co-client $0 $0 $0 $0 #VALUE! #VALUE! Client 2400.00% 0.00% 0 0 $0 $0 $0 $0 #VALUE! #VALUE! Co-client 2400.00% 0.00% 0 0 Disability Insurance Page Short-term Elimination Period Long-term Elimination Period Short-term Benefit Period Long-term Benefit Period Client Co-client Retirement Estimator Page Primary Earner Retirement Age Estimated Future Tax Bracket Ave. Annual Return (Pre-ret) Ave. Annual Return (Post-ret) Salary Replacement Percentage Primary Earner Age at Death Current Retirement Assets Annual Contributions Total Value of Current Savings Joint Estate Tax Page Gross Estate Total Expensess Gift-Adjusted Taxable Estate First Death Tax Liability Second Death Tax Liability Client Summary of Inputs 0 0 0 0 0 0 0 0 0 0.00% 0.00% 0.00% 0.00% 0 $0 $7,358 $0 Co-client $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 53