Download Report

Especially Prepared For:
Bob and Sally Sample
By: James E. Tremper, CFP®
Important Note…
What this material is intended to be:
This illustration is based on the information you provided with regard to your financial needs and objectives.
It is intended to provide only broad hypothetical guidelines and information which may be helpful in making
decisions about financial products and services available that may help meet those needs and objectives. You
should understand that your actual experience will differ from this analysis.
What it is not intended to be:
It is not intended to be investment advice or a projection of future investment performance. The projections or
other information generated by Profiles Professional by Emerging Information Systems (USA), Inc. (the
software used to create this analysis) regarding the likelihood of various investment outcomes are hypothetical
in nature. It is not a projection of future inflation rates or the state of the world or domestic economy. It is not
a guarantee that your objectives will be reached. Although this illustration may contain income tax
calculations and legal concepts, it does not constitute tax or legal advice. The application of some concepts
may be considered practicing law and should, therefore, be handled by an attorney, while other concepts may
require the guidance of a tax or accounting advisor. As tax laws change, so may conclusions reached by this
report. Therefore, you should have this report reviewed and regularly updated.
Certain assumptions were made:
In creating the illustration certain assumptions were made with respect to investment returns, the economy,
and your situation. The reports and graphics included are directly dependent on the quality and the accuracy of
the data and assumptions furnished by you. A key group of assumptions are the rates of returns for the assets
illustrated in this analysis - also furnished by you. You indicated that one or more investment assets should
grow at a specified rate while other assets use a weighted average rate of return based on how they are
classified across broad asset classes (e.g., Large Capital Stocks). The illustrated asset growth from all assumed
returns is simply an estimate - it is not a projection and not a guarantee. The value of investments will vary.
They may be worth more or less than your original investment when you begin withdrawals.
In this analysis, eligible accounts were subjected to simulated rebalancing calculations on an annual basis
causing the overall asset allocation of your hypothetical portfolio to avoid the typical drift toward an ever
increasing stock position. To accomplish the calculations, withdrawals were made and new assets purchased
in one or more accounts in an attempt to align the portfolio allocation with the desired allocation. The
hypothetical return for any purchased asset was calculated each year using the weighted average return of
asset classes which comprise the asset's allocation. Where future rates of return and transactions are assumed,
this analysis does not reflect the income taxes, fees and charges associated with investments, which would
reduce the results.
You are encouraged to review and consider performance information, which you can request from your
investment professional, for the mutual funds and other securities that may be referenced in this material when
assuming any future rates of return. Keep in mind that past performance is not a guarantee of future results. A
current prospectus must be read carefully when considering any investment in securities.
A final word:
No liability is assumed resulting from the use of the information contained in this financial illustration.
Responsibilities for financial decisions are assumed by you. You should seek the guidance of a financial or
investment professional before proceeding with any investment decision.
Bob and Sally Sample
Report is incomplete without Recommendations Page.
August 2, 2010
Presented by: James E. Tremper, CFP®
Recommendations
IMPORTANT DISCLOSURE: Tremper & Roper, 3900 East Valley Road,
Suite #202, Renton, WA 98057, 425-251-5910. Advisory services and
securities offered through Lincoln Investment Planning, Inc. Registered
Investment Advisor, Broker Dealer, Member FINRA/SIPC.
Bob and Sally Sample
Report is incomplete without Recommendations Page.
August 2, 2010
Presented by: James E. Tremper, CFP®
Bob and Sally Sample
Report is incomplete without Recommendations Page.
August 2, 2010
Presented by: James E. Tremper, CFP®
Education Goals
Total Education Need $594,206
Your Education Plan Provides $201,776
$104,889
Tim
$71,885
$489,317
Mary
$129,891
$0
$100,000
$200,000
Need
$300,000
$400,000
$500,000
Education Plan
This graph illustrates the projected capital needed to meet your education objectives and how your projected current savings and investments are
helping meet the objectives.
_______Funding Alternatives1_______
Additional
Additional
Additional
Monthly Level Monthly Inflating
Sum1
Savings
Savings2
Name
Amount Needed
Per Year
(Today's $)
Tim
Mary
$13,582
50,298
$18,633
177,848
$186
1,504
$159
1,231
Totals
$63,880
$196,481
$1,690
$1,389
1
Single-sum investment alternative assumes that existing savings will continue and Funding Alternatives earn an assumed rate of return of 6.00%.
The amount shown is for the first year only; this amount must be increased annually by the assumed inflation rate of 3.50%.
These results are hypothetical and are not a promise of future performance.
2
Bob and Sally Sample
Report is incomplete without Recommendations Page.
August 2, 2010
Presented by: James E. Tremper, CFP®
Education Goals
Summary
Inflated
at
Amount
Needed
Future
Dollars
Education Goals:
Annual
Years
Amount
Until
Years
Needed Needed Needed
Goal
Number
Name
School
1
Tim
2
Mary
University of
Washington
Stanford University
$13,582
7
4
8.00%
$104,889
50,298
10
4
8.00%
489,317
Total amount needed - future dollars
$594,206
Assets and Savings Available:
Current
Market
Value
Accounts
Fidelity 529 Plan
Tim's 529 Plan
Fidelity 529 Plan
Mary's 529 Plan
Total
----------------------Monthly Savings -------------------Year Savings
Number of Assigned
Amount
Start
Years to Save
to Goal
$25,000
$200
2010
11
1
$48,000
$200
2010
14
2
$73,000
Funding Alternatives:
Tim
Mary
Total
1
2
------Additional Amount Needed1 -----Monthly
Monthly
Level
Inflating
Single Sum
Savings
Savings2
Amount
Needed
Future Dollars
Existing
Plan
Provides
$104,889
489,317
$71,885
129,891
$18,633
177,848
$186
1,504
$159
1,231
$594,206
$201,776
$196,481
$1,690
$1,389
All additional savings begin today and assume a rate of return of 6.00%.
Inflating savings will increase annually by 3.50%.
Bob and Sally Sample
Report is incomplete without Recommendations Page.
August 2, 2010
Presented by: James E. Tremper, CFP®
Education Goals
Existing Plan
for Tim
Amount needed
$13,582 per year needed in 7 years for 4 years inflating annually at 8.00%
Needed in year 1 of goal, $13,582 inflated by 8.00%
Needed in year 2 of goal, $13,582 inflated by 8.00%
Needed in year 3 of goal, $13,582 inflated by 8.00%
Needed in year 4 of goal, $13,582 inflated by 8.00%
=
=
=
=
Total amount needed
$23,277
25,139
27,150
29,323
$104,889
Capital available
Current
Market
Value
$25,000
$25,000
Monthly
Savings
$200
Assumed
Rate of
Return
6.00%
Amount
Applied
To Goals
$71,885
$71,885
Fidelity 529 Plan
Year 1
$23,277
Year 2
$25,139
Year 3
$21,069
Year 4
$2,400
Total Withdrawals
Liabilities
Net for Goal
(Shortfall)
23,277
0
23,277
$0
25,139
0
25,139
$0
21,069
0
21,069
($6,082)
2,400
0
2,400
($26,923)
Accounts
Fidelity 529 Plan
Total
Distribution Plan:
Bob and Sally Sample
Report is incomplete without Recommendations Page.
August 2, 2010
Presented by: James E. Tremper, CFP®
Education Goals
Existing Plan
for Mary
Amount needed
$50,298 per year needed in 10 years for 4 years inflating annually at 8.00%
Needed in year 1 of goal, $50,298 inflated by 8.00%
Needed in year 2 of goal, $50,298 inflated by 8.00%
Needed in year 3 of goal, $50,298 inflated by 8.00%
Needed in year 4 of goal, $50,298 inflated by 8.00%
=
=
=
=
Total amount needed
$108,590
117,277
126,659
136,792
$489,317
Capital available
Current
Market
Value
$48,000
$48,000
Monthly
Savings
$200
Assumed
Rate of
Return
6.00%
Amount
Applied
To Goals
$129,891
$129,891
Fidelity 529 Plan
Year 1
$108,590
Year 2
$16,501
Year 3
$2,400
Year 4
$2,400
Total Withdrawals
Liabilities
Net for Goal
(Shortfall)
108,590
0
108,590
$0
16,501
0
16,501
($100,776)
2,400
0
2,400
($124,259)
2,400
0
2,400
($134,392)
Accounts
Fidelity 529 Plan
Total
Distribution Plan:
Bob and Sally Sample
Report is incomplete without Recommendations Page.
August 2, 2010
Presented by: James E. Tremper, CFP®
Education Goal
Capital Analysis
for Tim: University of Washington
$60,000
Capital Available
$40,000
$20,000
$0
$-20,000
$-40,000
2011
2013
2015
2017
2019
2021
Year
Positive Capital Balance
Negative Capital Balance
Current assets available
Current monthly savings
$25,000
$200
Current plan provides
Total need1
$71,885
$104,889
Funding Alternatives 2
Single sum investment
Additional level monthly savings
Additional inflating monthly savings4
$18,633
$186
$159
1
Assumes that the cost will increase annually by 8.00%
Assumes that the additional savings earn a rate of return of 6.00%. 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 3.50%.
These results are hypothetical and are not a promise of future performance.
2
Bob and Sally Sample
Report is incomplete without Recommendations Page.
August 2, 2010
Presented by: James E. Tremper, CFP®
Education Goal
Capital Analysis
for Mary: Stanford University
$200,000
Capital Available
$100,000
$0
$-100,000
$-200,000
$-300,000
$-400,000
2011
2013
2015
2017
2019
2021
2023
Year
Positive Capital Balance
Negative Capital Balance
Current assets available
Current monthly savings
$48,000
$200
Current plan provides
Total need1
$129,891
$489,317
Funding Alternatives 2
Single sum investment
Additional level monthly savings
Additional inflating monthly savings4
$177,848
$1,504
$1,231
1
Assumes that the cost will increase annually by 8.00%
Assumes that the additional savings earn a rate of return of 6.00%. 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 3.50%.
These results are hypothetical and are not a promise of future performance.
2
Bob and Sally Sample
Report is incomplete without Recommendations Page.
August 2, 2010
Presented by: James E. Tremper, CFP®
Education Goal
Timeline
for Tim: University of Washington
Year
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Annual
Need
$0
0
0
0
0
0
0
23,277
25,139
27,150
29,323
Annual
Savings
$2,400
2,400
2,400
2,400
2,400
2,400
2,400
2,400
2,400
2,400
2,400
Capital
Earnings
$1,644
1,887
2,144
2,416
2,705
3,012
3,336
2,284
1,057
0
0
Lump
Capital
Sum Withdrawals
$0
0
0
0
0
0
0
0
0
0
0
$0
0
0
0
0
0
0
23,277
25,139
21,069
2,400
Change in
Liabilities
Capital
Available
Today:
$25,000
$0
0
0
0
0
0
0
0
0
6,082
26,923
$29,044
33,331
37,874
42,691
47,796
53,208
58,945
40,352
18,669
(6,082)
(33,004)
These results are hypothetical and are not a promise of future performance.
Bob and Sally Sample
Report is incomplete without Recommendations Page.
August 2, 2010
Presented by: James E. Tremper, CFP®
Education Goal
Timeline
for Mary: Stanford University
Year
Annual
Need
Annual
Savings
Capital
Earnings
Lump
Capital
Sum Withdrawals
Change in
Liabilities
Today:
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
$0
0
0
0
0
0
0
0
0
0
108,590
117,277
126,659
136,792
$2,400
2,400
2,400
2,400
2,400
2,400
2,400
2,400
2,400
2,400
2,400
2,400
2,400
2,400
$3,024
3,349
3,694
4,060
4,448
4,859
5,294
5,756
6,245
6,764
798
0
0
0
$0
0
0
0
0
0
0
0
0
0
0
0
0
0
$0
0
0
0
0
0
0
0
0
0
108,590
16,501
2,400
2,400
$0
0
0
0
0
0
0
0
0
0
0
100,776
124,259
134,392
Capital
Available
$48,000
$53,424
59,173
65,268
71,728
78,576
85,834
93,528
101,684
110,329
119,493
14,101
(100,776)
(225,034)
(359,426)
These results are hypothetical and are not a promise of future performance.
Bob and Sally Sample
Report is incomplete without Recommendations Page.
August 2, 2010
Presented by: James E. Tremper, CFP®