Full Sample Envision Report with Scenarios and Survivor Needs Analysis Prepared for:
May 01, 2013
Full Sample Envision Report with Scenarios
and Survivor Needs Analysis
Prepared for:
Jim Taylor & Susan Taylor
Prepared by:
Financial Advisor
Firm Name
This report is not complete unless all pages, as noted, are included. Please read the information in 'Disclosures' found within this report for an explanation of the terms and concepts presented in this
report. Envision is not a financial plan. It does not include advanced wealth planning strategies such as estate and tax planning. It also does not include detailed cash flow, real estate and business
analyses. Envision is an investment planning tool designed to monitor changes in markets and life goals based on regular involvement and updates by you and your Financial Advisor. You should not
base major life decisions, such as retirement and spending goals, solely on Envision investment plan results. The Envision Process and delivery of this report do not create an advisory relationship
between the firm and you.
This is a preliminary report. It may not accurately reflect your current situation and life goals. It is intended as a discussion document. Your Financial Advisor can work with you to create or modify an
Investment Plan to specifically suit your needs.
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Page 1 of 108
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Envision
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Jim Taylor & Susan Taylor
Table Of Contents
05/01/2013
Cover Page
1
The Envision Process
4
Net Worth Statement
5
Net Worth By Type Graph
7
Net Worth By Person Graph
8
Insurance Summary
9
Liabilities Summary
10
Envision Action Plan Review - Client Notes
11
Profile Summary Data
14
Your Goals
17
Your Priorities
19
The Investment Plan Result
21
Investment Plan Result for Your Goals
22
Recommended Investment Plan
24
Achieving Your Goals
26
Sensitivity Analysis
27
Current vs. Strategic Allocation Plan Results
28
Monitoring Your Recommended Investment Plan
29
Sources of Funding
31
Goal Funding Summary - Recommended Investment Plan
33
Scenario Comparison
35
Survivor Needs Results
37
Long-Term Care Comparison
41
Introduction to Estate Planning
43
Understanding the Federal Estate Tax
46
Strategic Allocation Investment Objectives
48
The Strategic Allocations
49
Current vs Strategic Allocation - Asset Class
52
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Jim Taylor & Susan Taylor
Current vs Strategic Allocation - Asset Class Type
53
Current vs Strategic Allocation - Asset Class Sub Type
54
Current vs Strategic Allocation - Asset Class Detail
56
Current vs Strategic Efficient Frontier
58
Account Summary
59
Range of Simulation Possible Outcomes
62
Growth Detail Graph
63
Growth Detail Percentile Rankings
64
Total Investment Plan Target Values - Recommended Investment Plan
68
Target Investment Plan Tax Treatment - Recommended Investment Plan
70
Target Taxable Investment Plan Value - Recommended Investment Plan
72
Target Tax Advantaged Investment Plan Values - Recommended Investment Plan
74
Summary of Cash Flows - Chart - Recommended Investment Plan
77
Summary of Cash Flows - Table - Recommended Investment Plan
78
Cash Flow Detail - Contributions - Recommended Investment Plan
80
Cash Flow Detail - Income from Other Sources - Recommended Investment Plan
82
Cash Flow Detail - Withdrawals - Recommended Investment Plan
84
Investment Plan Assumptions
87
Disclosures
88
Portfolio Summary
98
Portfolio Diversification
99
Realized Gain and Loss
100
Unrealized Gain and Loss
101
Initial Investment (Gain/Loss) - Position
102
Initial Investment (Gain/Loss) - Lot
103
Understanding Your Portfolio
105
Market Commentary
107
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The value of the conversation
The Envision® process
IMPORTANT: The projections or other information Envision generates regarding the likelihood of various investment outcomes are hypothetical in nature, do not
reflect actual investment results, and are not guarantees of future results. Results may vary with each use and over time.
Envision methodology, selection criteria and key assumptions: Envision's simulation model incorporates assumptions on inflation, and financial market returns.
Using Monte Carlo simulations, Envision simulates thousands of potential outcomes over a lifetime of investing. The varying risk, return and correlation between the
assets are based on both forward looking and historical market based assumptions. Elements of this report's presentations and simulation results are under license
from © 2003-2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All rights reserved.
05/01/2013
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Page 4 of 108
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Envision
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Jim Taylor & Susan Taylor
Net Worth Statement
Investment Assets
Internal/
External
Accounts included in the Envision Plan
Susan's IRA
XXXX888
External
Account Description
Taxation
Jim
Susan
Joint &
Dependent
Total
Deferred
$0.00
$250,000.00
$0.00
$250,000.00
$250,000.00
$0.00
$0.00
$250,000.00
$1,500,000.00
$0.00
$0.00
$1,500,000.00
Joint Account
XXXX8888
External
Taxable
Jim's PSP Deferred
XXXX8888
External
Deferred
External
Tax Advantaged
Education
$0.00
$0.00
$130,000.00
$130,000.00
External
Tax Advantaged
Education
$0.00
$0.00
$120,000.00
$120,000.00
$1,750,000.00
$250,000.00
$250,000.00
$2,250,000.00
Jim
Susan
Joint &
Dependent
Total
$0.00
$0.00
$0.00
$0.00
Jim
Susan
John's 529
XXXX8888
Sara's 529
XXXX8888
Sub Total
Investment Assets
Internal/
External
Accounts not included in the Envision Plan
Sub Total
Account Description
Taxation
Personal Assets
Home*
Primary Residence
$0.00
$0.00
Joint &
Dependent
$500,000.00
Personal Property*
Other
$0.00
$0.00
$100,000.00
$100,000.00
$0.00
$0.00
$600,000.00
$600,000.00
Jim
Susan
$375,000.00
$0.00
Description
Type
Sub Total
Total
$500,000.00
Business Assets
Description
Dental Practice*
05/01/2013
Type
Partnership
Joint &
Dependent
$0.00
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Total
$375,000.00
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Business Assets
Description
Type
Sub Total
Total Assets
Jim
Susan
$375,000.00
$0.00
$2,125,000.00
$250,000.00
Joint &
Dependent
$0.00
$850,000.00
Total
$375,000.00
$3,225,000.00
Liabilities
Description
Mortgage*
Type
Mortgage
Total Liabilities
Net Worth
$0.00
Joint &
Dependent
$-200,000.00
$-200,000.00
$0.00
$-200,000.00
$ -200,000.00
$650,000.00
$3,025,000.00
Jim
Susan
$0.00
$0.00
$2,125,000.00
$250,000.00
Total
*This information is included for purposes of this Statement and is not included in the analysis of this Envision plan.
This Net Worth statement represents a portfolio of securities and assets and liabilities owned by you based on our records of transactions processed through us or supplemental information supplied by you. This report may not include all accounts in
your household. The above statement does not in any way supersede your statements, policies or trade confirmations, which we consider the only official and accurate records of your accounts or policies. We rely on you to review the accuracy and
completeness of this analysis. This statement may differ from the Firm's profile information on your accounts.
05/01/2013
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Net Worth By Type Graph
Net Worth Breakdown by Type
$3,600,000
$3,200,000
$2,800,000
$2,400,000
$2,000,000
$1,600,000
$1,200,000
$800,000
$400,000
$0
($400,000)
Assets
Liabilities
Assets
($3,225,000)
Liabilities
(-$200,000)
Net Worth
($3,025,000)
Mortgage
Net Worth
Personal Assets
Net Worth
Business Assets
Investment Assets
05/01/2013
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Net Worth By Person Graph
Net Worth Breakdown by Person
$3,600,000
$3,200,000
$2,800,000
$2,400,000
$2,000,000
$1,600,000
$1,200,000
$800,000
$400,000
$0
($400,000)
Assets
Liabilities
Assets
($3,225,000)
Liabilities
(-$200,000)
Jim
Joint & Dependent
Net Worth
Net Worth
($3,025,000)
Total Net Worth
Susan
Joint & Dependent
05/01/2013
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Page 8 of 108
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Jim Taylor & Susan Taylor
Insurance Summary
Life Insurance
Company
Policy
Number
Death
Annual
Benefit Premium
Cash
Value
Loan
Value
$0
$0
$0
$100,000
$0
$0
$0
$100,000
$0
$0
$0
$800,000
$0
$0
$0
Annual
Increase
Elimination
Period(Days)
Annual
Increase
Elimination
Period(Days)
Type
Owner
Insured
Beneficiary
DEF Company 123456
Term
Jim Taylor
Jim Taylor
Susan Taylor
$600,000
ABC Company 1234
Whole Life
Jim Taylor
Jim Taylor
Susan Taylor
XYZ Company 12345
Term
Susan Taylor
Susan Taylor
Jim Taylor
Total
Long Term Care Insurance
Company
Policy
Number
Insured
Total
Annual
Premium
$0
Monthly Benefit Period
Benefit
(Years)
$0
Total Benefit
Pool
$0
Disability Insurance
Company
Policy
Number
Total
Owner
Annual
Premium
$0
Monthly Benefit Period
Benefit
(Years)
$0
Total Benefit Pool = Monthly Benefit * Benefit Period * 12
The policy details listed above have been based on information you, the client, provided to your Financial Advisor. First Clearing Corp does not guarantee its accuracy or completeness. Please consult the policy literature provided by your Insurance
carrier for more complete information and a detailed description of any terms and conditions mentioned in this report.
05/01/2013
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Page 9 of 108
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Liabilities Summary
General Liabilities
Description
Borrower
Interest
Rate
Type
Sub Total
Balance
Monthly
Payment
$0.00
Mortgages
Description
Mortgage
Borrower
Loan Type
Lender
Joint
30 Yr Fixed
Wells Fargo
Interest
Rate
Balance
0.00%
$-200,000.00
Sub Total
$-200,000.00
Total Liabilities
$-200,000.00
05/01/2013
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Monthly
Payment
Year
Closed
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Envision Action Plan Review - Client Notes
Current Year Savings
On Target
Client Notes
Updated Amount
_______________
Contribute $40,000 to Jim's tax deferred savings - Jim 401K
_______________
Contribute $15,000 to Susan's tax deferred savings - Susan 401K
_______________
Contribute $20,000 to Joint taxable savings - Joint Savings
___________________________________________________________________________________________
___________________________________________________________________________________________
Asset Allocation
On Target
As discussed, adjustments should be made to your current investment holdings to bring the allocation in line with
the Conservative Growth portfolio
05/01/2013
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Page 11 of 108
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Current
Conservative Growth
Large Cap (21.11%)
Large Cap (28.00%)
Mid Cap (10.89%)
Mid Cap (10.00%)
International Equity (8.89%)
Small Cap (8.00%)
Short Term Fixed Income (8.89%)
International Equity (9.00%)
Intermediate Fixed Inc (1.33%)
Emerging Market Equity (9.00%)
Cash Alternative (48.89%)
Short Term Fixed Income (8.00%)
Intermediate Fixed Inc (14.00%)
Long Term Fixed Income (4.00%)
High Yield Fixed Income (2.00%)
REIT (2.00%)
Commodities (4.00%)
Cash Alternative (2.00%)
Average Return:
Downside Risk:
5.9%
-4.3%
Average Return:
Downside Risk:
7.8%
-10.6%
Conservative Growth:
Growth investors do not seek account income and their primary objective is capital appreciation. Conservative Growth investors seek maximum growth consistent with a relatively modest degree of risk. They are willing to accept
lower potential returns in exchange for lower risk. Equities may be a significant percentage of the account.
The Current allocation indicates how an investor's portfolio is allocated based on Wells Fargo Advisors asset classifications and current market value.
Client Notes
___________________________________________________________________________________________
___________________________________________________________________________________________
Survivor Needs
On Target
Updated Amount
_______________
Client Notes
Estimated Additional Insurance Needed on Jim: $1,010,000
___________________________________________________________________________________________
___________________________________________________________________________________________
05/01/2013
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Page 12 of 108
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Additional Client Notes
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
"Current Year" is defined as the period of time from now until the owner of the cash flow's next birthday.
This Action Plan Review identifies the current year's savings, asset allocation, withdrawals, goals, and income needs included in your Envision report, and also identifies the preceding year's goals that have been retired.
Please review your actual report for a detailed analysis of additional, future assumptions you have made which may be critical to the success of your plan.
The information shown is based on the Strategic Capital Market Assumptions data through 08/2012. Risk and return figures are based on forward looking asset class assumptions. For risk and return information, please
see the Strategic Capital Market Assumptions table in the disclosure section of this report. Downside risk represents the potential loss the allocation could experience in a severe market downturn. The portfolio faces
approximately a 5% chance each year of experiencing a loss this large or larger. They are for illustrative purposes and are not designed to predict actual performance. Past performance is not a guarantee of future
results.
The downside risk and average return for the current allocation are calculated based on a classification of the underlying holdings for funds, ETFs, UITs and annuity sub-accounts. For funds in alternative investment
strategies and where underlying holdings are not available for classification, the asset class assigned to that security is used. Underlying classification data is updated periodically and the frequency of updates will vary by
fund.
05/01/2013
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Page 13 of 108
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Jim Taylor & Susan Taylor
Profile Summary Data
Personal Information
Name
Current Age
Current Annual Salary
52
52
$250,000
$60,000
Jim Taylor
Susan Taylor
Life Goals
Description
Ideal Value
Retirement Age - Jim
Retirement Age - Susan
Retirement Spending Need (Annual Increase)
Estate Goal (Annual Increase)
55
55
$180,000 (3.00%)
$2,000,000 (0.00%)
Education Goals
Acceptable Value
62
62
$120,000 (3.00%)
$500,000 (0.00%)
++
Name
Ages
John
Sara
18 - 21
18 - 21
Institution
Brown University
University of Virginia
Ideal Value
Acceptable Value
Annual Increase
$42,808
$9,622
$42,808
$9,622
5.50%
5.50%
Other Goals
Description
Purchase RV
Post Retirement Travel
Annual Amount
Ideal/Accept.
$400,000 /
$400,000
$20,000 /
$10,000
Start Age
Ideal/Accept.
End Age
Ideal/Accept.
Annual Increase
Ideal/Accept.
Jim
Ret. / Ret.
Ret. / Ret.
0.00% / 0.00%
Jim
Ret. / Ret.
End / End
3.00% / 3.00%
Net or Gross
Owner
Net
Net
Income Sources - Other Income
Description
Dental Practice Payout
Whole Life Policy
05/01/2013
Annual Amount Net or
Ideal/Accept. Gross
$75,000 / $75,000 Gross
$100,000 /
Net
$100,000
Start Age
Ideal/Accept.
End Age Annual Increase
Ideal/Accept.
Ideal/Accept.
Owner
Tax Status
Jim
Taxable
62 / 62
66 / 66
3.00% / 3.00%
Jim
Taxable
Death / Death
Death / Death
0.00% / 0.00%
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Social Security
Description
Social Security
Social Security
Annual Amount Net or
Ideal/Accept. Gross
Owner
Tax Status
$21,388 / $21,812 Gross
$14,330 / $15,627 Gross
Jim
Susan
Taxable
Taxable
Start Age
Ideal/Accept.
End Age
Ideal/Accept.
Annual Increase
Ideal/Accept.
62 / 62
62 / 62
Death / Death
Death / Death
3.00% / 3.00%
3.00% / 3.00%
Savings
Annual Amount
Ideal/Accept.
Owner
Tax Status
$40,000 / $40,000
$20,000 / $30,000
$15,000 / $15,000
Jim
Joint
Susan
Deferred
Taxable
Deferred
Description
Jim 401K
Joint Savings
Susan 401K
Start Age
Ideal/Accept.
End Age Annual Increase
Ideal/Accept.
Ideal/Accept.
52 / 52
52 / 52
52 / 52
Ret. / Ret.
Ret. / Ret.
Ret. / Ret.
3.00% / 3.00%
0.00% / 0.00%
3.00% / 3.00%
Liabilities
Description
Borrower
Type
Mortgage
Joint
Mortgage
Interest Rate
Balance
Monthly Payment
0.00%
$200,000
$0
Total Liabilities :
$200,000
Risk Profile*
Investment
Objective
Equity
%
Downside
Risk
Average
Return (as
of 08/2012)
Description
Ideal
Conservative
Growth &
Income
31.0%
-4.4%
6.4%
Growth and Income investors seek current income, but also seek income and capital
growth over time. These investors are willing to forgo a portion of current income in order
to seek potential future growth. Conservative Growth and Income investors seek the
maximum growth and income consistent with a relatively modest degree of risk. They
are willing to accept lower potential returns in exchange for lower risk. Equities, generally
dividend paying equities, may be some percentage of the account.
Acceptable
Moderate
Growth
82.0%
-14.2%
8.4%
Growth investors do not seek account income and their primary objective is capital
appreciation. Moderate Growth investors seek to balance potential risk of capital loss with
their goal of higher potential growth. Equities may be the primary asset in the account.
++
All numbers provided for Education Goal calculations are hypothetical in nature and are based on assumptions entered into the calculation. You should check the figures to ensure they are reasonable and you should consult with the institution on
the accuracy of the information before making any investment decisions based on this information.
05/01/2013
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*
The information shown is based on the Strategic Capital Market Assumptions data through 08/2012. Risk and return figures are based on forward looking asset class assumptions. For risk and return information, please see the Strategic Capital
Market Assumptions table in the disclosure section of this report. Downside risk represents the potential loss the allocation could experience in a severe market downturn. The portfolio faces approximately a 5% chance each year of experiencing a
loss this large or larger. They are for illustrative purposes and are not designed to predict actual performance. Past performance is not a guarantee of future results.
Allocations used within this plan may not have a greater downside risk than the risk range associated with the Acceptable Risk Profile.
05/01/2013
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Your Goals
Retirement Age
Jim
Susan
Annual Retirement Spending
Other Goals
Purchase RV
Post Retirement Travel
Annual Education Goals
John
Sara
Annual Savings
Jim 401K
Joint Savings
Susan 401K
Income Sources (Annual)
Dental Practice Payout
Whole Life Policy
Annual Social Security
Jim
Susan
Susan
Estate Goal
Strategic Allocation
Percent in Equities
Downside Risk
Ideal
Acceptable
55
55
62
62
$180,000
$120,000
$400,000 (Age Ret. - Ret.)
$20,000 (Age Ret. - End)
$400,000 (Age Ret. - Ret.)
$10,000 (Age Ret. - End)
$42,808 (Age 18-21)
$9,622 (Age 18-21)
$42,808 (Age 18-21)
$9,622 (Age 18-21)
$40,000 (Age 52-Ret.)
$20,000 (Age 52-Ret.)
$15,000 (Age 52-Ret.)
$40,000 (Age 52-Ret.)
$30,000 (Age 52-Ret.)
$15,000 (Age 52-Ret.)
$75,000 (Age 62-66)
$100,000 (Age Death-Death)
$75,000 (Age 62-66)
$100,000 (Age Death-Death)
$21,388 (Age 62-Death)
$14,330 (Age 62-Death)
$7,058 (Age 93-End)
$21,812 (Age 62-Death)
$15,627 (Age 62-Death)
$6,185 (Age 93-End)
$2,000,000
$500,000
Conservative Growth &
Income (Age Now-End)
31.0%
-4.4%
Moderate Growth (Age Now-End)
82.0%
-14.2%
The Strategic Allocation has been derived from what you indicated was your Ideal or Acceptable tolerance for Downside Risk as displayed on the Profile Summary Data report. The Disclosures include more detailed information.
05/01/2013
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Your Priorities
The Envision Priority Cards help you clarify your financial goals and prioritize your objectives. Using the cards as guidelines, the Envision Process also offers you the flexibility to adjust your priorities,
when necessary, based on fluctuating market conditions or life-changing events.
Higher Priority
Lower Priority
1
2
3
Retirement
Income
Risk Tolerance
Education Goal
4
5
6
7
Purchase RV
Post Retirement
Travel
05/01/2013
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Your Priorities
The Envision Priority Matrix can help you clarify your financial goals and prioritize your objectives. Using the Matrix as a guide, the Envision process also offers you the flexibility to adjust your priorities,
when necessary, based on fluctuating market conditions or life-changing events.
Retire Later
Goal
To achieve our early retirement age(s), we would be
willing to:
N/A
To achieve our higher spending target in retirement,
we would prefer to:
X
Reduce Retirement
Spending
Reduce Size
of Estate
N/A
X
In order to achieve our larger estate goal, we would
be willing to:
To reduce the investment risk in our portfolio, we
would be willing to:
Take More
Investment Risk
N/A
X
X
X
N/A
We would like to reduce our current savings and to
achieve this we would prefer to:
N/A
To meet our education funding goals, we would be
willing to:
X
To meet our 'Purchase RV ' other goal, we would be
willing to:
X
X
X
To meet our 'Post Retirement Travel ' other goal, we
would be willing to:
X
X
X
05/01/2013
Save More
X
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The Investment Plan Result
Below Target
Target Zone
Above Target
<50
75
What is the Investment Plan Result?
Central to the Envision process is the Investment Plan Result calculation.
With Envision, we simultaneously evaluate your goals, your strategic asset
allocation and your assets to determine the likelihood that your investment
plan would have achieved your goals. The Envision process subjects your
investment plan to a sophisticated stress testing process that simulates 1,000
market environments, both good and bad. Your Investment Plan Result is
the percentage of the 1,000 simulations in which your goals were met for
your Ideal, Acceptable, and Recommended Investment Plan. Remember,
the simulations do not represent actual investment performance and
are only intended to provide you with an opportunity to evaluate your
Recommended Investment Plan, including your asset allocation. The
Disclosures include more detailed information regarding the simulation
process.
05/01/2013
90
•
100
Below Target
An Investment Plan Result below 75 means that your investment plan
would not have achieved your goals in a large number of the historical
simulations. You may wish to consider adjustments to your goals, your
allocation and/or your investments.
•
Target Zone
An Investment Plan Result between 75 and 90 means that in many of the
historical simulations your investment plan would have achieved your
goals. You might be required to make changes to your Recommended
Investment Plan in order to stay within your Target Zone, but those
changes are likely to be minor.
•
Above Target
An Investment Plan Result above 90 means that in a significantly
large number of historical simulations your investment plan would have
achieved or exceeded your goals. You may wish to consider a less risky
allocation, or an adjustment to your goals.
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Investment Plan Result For Your Goals
Below Target
Target Zone
<50
Above Target
75
90
<=50
95
Investment Plan Result
Retirement Age
Jim
Susan
Annual Retirement Spending
Other Goals
Purchase RV
Post Retirement Travel
Annual Education Goals
John
Sara
Annual Savings
Jim 401K
Joint Savings
Susan 401K
Income Sources (Annual)
Dental Practice Payout
Whole Life Policy
Annual Social Security
Jim
05/01/2013
100
Ideal
Acceptable
0
95
55
55
62
62
$180,000
$120,000
$400,000 (Age Ret. - Ret.)
$20,000 (Age Ret. - End)
$400,000 (Age Ret. - Ret.)
$10,000 (Age Ret. - End)
$42,808 (Age 18-21)
$9,622 (Age 18-21)
$42,808 (Age 18-21)
$9,622 (Age 18-21)
$40,000 (Age 52-Ret.)
$20,000 (Age 52-Ret.)
$15,000 (Age 52-Ret.)
$40,000 (Age 52-Ret.)
$30,000 (Age 52-Ret.)
$15,000 (Age 52-Ret.)
$75,000 (Age 62-66)
$100,000 (Age Death-Death)
$75,000 (Age 62-66)
$100,000 (Age Death-Death)
$21,388 (Age 62-Death)
$21,812 (Age 62-Death)
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Below Target
<50
Jim Taylor & Susan Taylor
Target Zone
Above Target
75
90
<=50
Susan
Susan
Estate Goal
Strategic Allocation
Percent in Equities
Downside Risk
Investment Plan Result
05/01/2013
100
95
Ideal
$14,330 (Age 62-Death)
$7,058 (Age 93-End)
Acceptable
$15,627 (Age 62-Death)
$6,185 (Age 93-End)
$2,000,000
$500,000
Conservative Growth & Income (Age Now-End)
31.0%
-4.4%
Moderate Growth (Age Now-End)
82.0%
-14.2%
0
95
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Recommended Investment Plan
Below Target
<50
Target Zone
Above Target
75
90
100
<=50
95
81
Investment Plan Result
Retirement Age
Jim
Susan
Annual Retirement Spending
Other Goals
Purchase RV
Post Retirement Travel
Annual Education Goals
John
Sara
Annual Savings
Jim 401K
Joint Savings
Susan 401K
Income Sources (Annual)
Dental Practice Payout
Whole Life Policy
Annual Social Security
Jim
05/01/2013
Ideal
Recommended
Acceptable
0
81
95
55
55
60
60
62
62
$180,000
$140,000
$120,000
$400,000 (Age Ret. - Ret.)
$20,000 (Age Ret. - End)
$250,000 (Age Ret. - Ret.)
$15,000 (Age Ret. - End)
$400,000 (Age Ret. - Ret.)
$10,000 (Age Ret. - End)
$42,808 (Age 18-21)
$9,622 (Age 18-21)
$42,808 (Age 18-21)
$9,622 (Age 18-21)
$42,808 (Age 18-21)
$9,622 (Age 18-21)
$40,000 (Age 52-Ret.)
$20,000 (Age 52-Ret.)
$15,000 (Age 52-Ret.)
$40,000 (Age 52-Ret.)
$20,000 (Age 52-Ret.)
$15,000 (Age 52-Ret.)
$40,000 (Age 52-Ret.)
$30,000 (Age 52-Ret.)
$15,000 (Age 52-Ret.)
$75,000 (Age 62-66)
$100,000 (Age Death-Death)
$75,000 (Age 62-66)
$100,000 (Age Death-Death)
$75,000 (Age 62-66)
$100,000 (Age Death-Death)
$21,388 (Age 62-Death)
$21,782 (Age 62-Death)
$21,812 (Age 62-Death)
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Below Target
<50
Target Zone
Above Target
75
90
100
<=50
95
81
Susan
Susan
Estate Goal
Strategic Allocation
Percent in Equities
Downside Risk
Investment Plan Result
Ideal
$14,330 (Age 62-Death)
$7,058 (Age 93-End)
Recommended
$15,341 (Age 62-Death)
$6,441 (Age 93-End)
Acceptable
$15,627 (Age 62-Death)
$6,185 (Age 93-End)
$2,000,000
$1,000,000
$500,000
Conservative Growth &
Income (Age Now-End)
31.0%
-4.4%
Conservative
Growth (Age Now-End)
66.0%
-10.6%
Moderate
Growth (Age Now-End)
82.0%
-14.2%
0
81
95
Conservative Growth
Growth investors do not seek account income and their primary objective is capital appreciation. Conservative Growth investors seek maximum growth consistent with a relatively modest degree of risk. They are willing to accept lower potential
returns in exchange for lower risk. Equities may be a significant percentage of the account. Please refer to the Disclosures for more detailed information.
This information is not used to update your client account profile information. Please contact your Financial Advisor if any changes are needed to update your client profile.
Your Recommended Investment Plan Result was calculated assuming that you will modify your strategic asset allocations, if applicable, throughout the life of the plan. The recommended strategic asset allocation reflected on this page illustrates the
strategic allocation you plan to implement now. Future allocations are illustrated on the Age Based Asset Allocation page.
05/01/2013
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Achieving Your Goals
Retirement Age
Jim
Susan
Other Goals
Purchase RV
Post Retirement Travel
Annual Education Goals
John - Brown University
Sara - University of Virginia
Annual Savings
Jim 401K
Joint Savings
Susan 401K
Strategic Allocation
Percent in Equities
Downside Risk
Investment Plan Result
$250,000 (Age Ret. - Ret.)
$15,000 (Age Ret. - End)
$42,808 (Age 18-21)
$9,622 (Age 18-21)
$3,250,000
$3,050,000
$2,850,000
$2,650,000
$2,450,000
$2,250,000
$2,050,000
$40,000 (Age 52-Ret.)
$20,000 (Age 52-Ret.)
$15,000 (Age 52-Ret.)
Income Sources (Annual)
Dental Practice Payout
Whole Life Policy
Estate Goal
$140,000
$3,450,000
Investments
Annual Retirement Spending
Social Security
Jim
Susan
Susan
$3,650,000
60
60
$1,850,000
53
54
55
56
57
58
Age (Susan Taylor)
Above Target (90th Percentile)
$75,000 (Age 62-66)
$100,000 (Age Death-Death)
Below Target (75th Percentile)
Investment As Of Date
$21,782 (Age 62-Death)
$15,341 (Age 62-Death)
$6,441 (Age 93-End)
$1,000,000
Conservative
Growth (Age Now-End)
66.0%
-10.6%
81
The Target Zone may help you evaluate your Recommended Investment Plan.
It does not represent a projection of future portfolio values. The Target Zone
graph is shown in Actual dollars.
The Target Zone and Plan Result is reflective of the strategic recommended
asset allocation. If your current portfolio is not consistent with the
recommended allocation, then your probability of success may be significantly
different than the Plan Result displayed. Envision uses Strategic Capital
Market Assumptions for 10 years (representative of a one to two business
cycle time period) and Historical Based Planning Assumptions for additional
years within the plan.
This information is not used to update your client account profile information. Please contact your Financial Advisor if any changes are needed to update your client profile.
05/01/2013
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Sensitivity Analysis
Results shown in Actual dollars
37%
$3,650,000
27%
$3,450,000
5%
34%
Investments
$3,250,000
$3,050,000
45%
$2,850,000
$2,650,000
77%
$2,450,000
29%
$2,250,000
28%
$2,050,000
18%
$1,850,000
53
54
55
56
57
58
Age (Susan Taylor)
Above Target (90th Percentile)
Below Target (75th Percentile)
Investment As Of Date
At 1 year
At 3 years
At 5 years
5%
$2,924,838
18 %
$2,227,760
27 %
$3,236,426
28 %
$2,580,662
37 %
$3,625,810
29 %
$2,981,252
Probability of being out of the Target Zone
23 %
55 %
66 %
Probability of being in the Target Zone
77 %
45 %
34 %
Probability of being above the Target Zone
Investment Value greater than
Probability of being below the Target Zone
Investment Value less than
Envision allows you to track the value of your portfolio over time as it relates to the Target Zone. As markets change, and as your personal goals and objectives change, you may see your portfolio value move out of the Target Zone. This Sensitivity
Analysis shows the probability of being both below and above the Target Zone over a one, three and five year period.
If your portfolio value happens to move out of the Target Zone, this is an opportunity to discuss what changes may have occurred in the market, or what has changed in your life based on the recommendations in the plan. As part of the Envision
review process, you and your Financial Advisor may want to make adjustments to move you back into the Target Zone and give you reasonable confidence in achieving your goals.
05/01/2013
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Current vs Strategic Allocation - Plan Results
Current Allocation Plan Result: 47
Strategic Allocation Plan Result: 81
Current
Conservative Growth
Large Cap (21.11%)
Large Cap (28.00%)
Mid Cap (10.89%)
Mid Cap (10.00%)
International Equity (8.89%)
Small Cap (8.00%)
Short Term Fixed Income (8.89%)
International Equity (9.00%)
Intermediate Fixed Inc (1.33%)
Emerging Market Equity (9.00%)
Cash Alternative (48.89%)
Short Term Fixed Income (8.00%)
Intermediate Fixed Inc (14.00%)
Long Term Fixed Income (4.00%)
High Yield Fixed Income (2.00%)
REIT (2.00%)
Commodities (4.00%)
Cash Alternative (2.00%)
Average Return:
Downside Risk:
5.9%
-4.3%
Average Return:
Downside Risk:
7.8%
-10.6%
Important Information: This page illustrates how your plan result may differ if you do not adopt the recommended strategic allocation. The current allocation plan
result assumes that your current allocation will remain unchanged over the duration of the plan. The strategic allocation plan result assumes that you implement the
recommended allocation and any future age-based allocations if they were included in the plan. There is no assurance that the recommended portfolio's objectives
will be obtained.
Current Allocation indicates how an investor's portfolio is allocated based on Wells Fargo Advisors asset classifications and current market value
Strategic Allocation illustrates how much of an investor's portfolio should be allocated to the various asset classes based on the recommended investment plan.
The information shown is based on the Strategic Capital Market Assumptions data through 08/2012. Risk and return figures are based on forward looking asset class assumptions. For risk and return information, please see the Strategic Capital
Market Assumptions table in the disclosure section of this report. Downside risk represents the potential loss the allocation could experience in a severe market downturn. The portfolio faces approximately a 5% chance each year of experiencing a
loss this large or larger. They are for illustrative purposes and are not designed to predict actual performance. Past performance is not a guarantee of future results.
The downside risk and average return for the current allocation are calculated based on a classification of the underlying holdings for funds, ETFs, UITs and annuity sub-accounts. For funds in alternative investment strategies and where underlying
holdings are not available for classification, the asset class assigned to that security is used. Underlying classification data is updated periodically and the frequency of updates will vary by fund.
Totals may not equal calculated amounts due to rounding differences.
The Disclosures include definitions of the terms on this page and other detailed information.
05/01/2013
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Monitoring Your Recommended Investment Plan
Recommended
05/01/2013
Jim's Retirement Age
60
Susan's Retirement Age
60
Annual Retirement Spending
$140,000
Estate Goal
$1,000,000
Conservative
Growth
Strategic Allocation
+
Current Year Savings
$75,000
Contributions - Susan 401K-Susan
$15,000
Contributions - Jim 401K-Jim
$40,000
Contributions - Joint Savings-Jim
$20,000
Income Sources - Dental Practice
Payout - Jim
Income Sources - Whole Life Policy
- Jim
$75,000
$100,000
Social Security - Jim
$21,782
Social Security - Susan
$15,341
Social Security - Survivor Benefits Susan
Investment Value
$2,250,000
Other Goal - Post Retirement Travel
- Jim
Other Goal - Purchase RV - Jim
Education Goals - Brown University John Taylor
Education Goals - University of
Virginia - Sara Taylor
Investment Plan Result
$6,441
$15,000
$250,000
$42,808
$9,622
81
* Cash flows are inflated once per year on the anniversary of the investment plan’s creation date. The inflating of cash flows is necessary to keep goals, savings, income sources, etc. up to date with their specified inflation rates.
+ This total does not include savings cash flows that start in the future. If future savings cash flows exist, they are included in the Envision analysis.
05/01/2013
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The table above indicates your Recommended Investment Plan and how changes to your goals and Investment Value have affected the Investment Plan Result over time. Investment Value includes assets currently held in accounts with our firm as
well as assets held at other firms. Values of assets held at other firms are based on information provided by you, and may not reflect current market value.
The Recommended Investment Plan assumes you implement the Strategic or Custom Allocation and includes expectations about savings and spending patterns that you provided. Please be sure to inform us of any changes to your goals, savings
and spending patterns and changes in the market value of assets held at other firms.
Your Recommended Investment Plan Result was calculated based on all of the information contained within your recommended plan as of the date in the column header.
05/01/2013
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Sources of Funding
Age 55 (Jim)
Spending Needs at Age 55
Investment Portfolio Need*
(100.00%)
Sources of Funding
John's Education
$ 50,267
None Specified
Total
$ 50,267
Total
+
$0
Investment Portfolio Need* = $ 50,267
+
All or part of this education goal may be funded with existing 529 accounts which are not displayed in the "Sources of Funding" table.
Age 60 (Jim)
Spending Needs at Age 60
Investment Portfolio Need*
(100.00%)
Age 70 (Jim)
Sources of Funding
Retirement Spending
Post Retirement Travel
Purchase RV
$ 177,348
$ 19,002
$ 250,000
Total
$ 446,350
Spending Needs at Age 70
Social Security - Jim (12.77%)
Social Security - Susan (8.99%)
Investment Portfolio Need* (78.24%)
None Specified
Total
$0
Investment Portfolio Need* = $ 446,350
Sources of Funding
Retirement Spending
Post Retirement Travel
$ 238,341
$ 25,536
Social Security - Jim
Social Security - Susan
$ 33,700
$ 23,735
Total
$ 263,877
Total
$ 57,435
Investment Portfolio Need* = $ 206,442
*The Investment Portfolio Need is the net amount required from the investment portfolio after all other income sources have been applied to the spending need. It does not represent income provided by
the investment portfolio nor should it be assumed that the spending need can be met with portfolio withdrawals.
05/01/2013
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The sources of funding cash flows are hypothetical in nature and should be used only as a guideline. This report may display spending needs and the corresponding sources of funding for up to five
different years as determined by your financial advisor. The other income sources are based upon assumptions that you have provided. To determine how much the investment portfolio must provide in
order to meet spending needs, first, all available other income sources are matched against the spending need. If, all other income sources are not sufficient to meet the spending need, then the analysis
assumes the remainder will be made up with the investment portfolio.
05/01/2013
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Goal Funding Summary - Recommended Investment Plan
Results shown in Actual dollars
Social Security
Portfolio Withdrawal
Income Sources
Estimated Minimum Variable Annuity Income
Estimated Taxable Portfolio Income
Net Goal Funding Need
$550,000
$500,000
$450,000
$400,000
Spending Need
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
60/60
64/64
68/68
72/72
76/76
80/80
84/84
88/88
92/92
Age (Jim / Susan)
Total Investment Income Needed:
-Estimated Portfolio Income:
-Other Income Sources:
Estimated Portfolio Withdrawals:
05/01/2013
$12,922,062
$75,690
$2,977,884
$9,868,488
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Goal Funding Summary reflects any Social Security and Income Sources during retirement as well as estimated portfolio yield based off of the previous year's estimated taxable ending value. Estimated
Portfolio Taxable Income is based on yield assumptions and there is no assurance that they will be obtained. In addition, the portfolio withdrawals necessary to meet your Goal Funding Needs for your
Recommended Investment Plan are reflected. This is based upon information you provided. Because this information is likely to change over time, your actual cash flow experience will differ. You should
periodically review this information with your Financial Advisor and discuss any changes to your goals and personal situation in order to keep your Recommended Investment Plan up-to-date.
05/01/2013
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Scenario Comparison
Below Target
<50
Target Zone
Above Target
75
90
100
79
81
Investment Plan Result
Retirement Age
Jim
Susan
Annual Retirement Spending
Other Goals
Gift to Northwestern
Purchase RV
Post Retirement Travel
Annual Education Goals
John - Brown University
Sara - University of Virginia
Annual Savings
Jim 401K
Joint Savings
Susan 401K
Income Sources (Annual)
Dental Practice Payout
Whole Life Policy
05/01/2013
Recommended
81
Scenario #1 - Gift to Northwestern
79
60
60
$140,000
60
60
$140,000
N/A
$250,000 (Age Ret. - Ret.)
$15,000 (Age Ret. - End)
$100,000 (Age 60 - 60)
$250,000 (Age Ret. - Ret.)
$15,000 (Age Ret. - End)
$42,808 (Age 18-21)
$9,622 (Age 18-21)
$42,808 (Age 18-21)
$9,622 (Age 18-21)
$40,000 (Age 52 - Ret.)
$20,000 (Age 52 - Ret.)
$15,000 (Age 52 - Ret.)
$40,000 (Age 52 - Ret.)
$20,000 (Age 52 - Ret.)
$15,000 (Age 52 - Ret.)
$75,000 (Age 62 - 66)
$100,000 (Age Death - Death)
$75,000 (Age 62 - 66)
$100,000 (Age Death - Death)
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Below Target
<50
Target Zone
Above Target
75
90
100
79
81
Annual Social Security
Jim
Susan
Susan
Estate Goal
Strategic Allocation
Percent in Equities
Downside Risk
Investment Plan Result
Recommended
Scenario #1 - Gift to Northwestern
$21,782 (Age 62 - Death)
$15,341 (Age 62 - Death)
$6,441 (Age 93 - End)
$1,000,000
Conservative Growth (Age Now-End)
66.0%
- 10.6%
81
$21,782 (Age 62 - Death)
$15,341 (Age 62 - Death)
$6,441 (Age 93 - End)
$1,000,000
Conservative Growth (Age Now-End)
66.0%
- 10.6%
79
* Cash flows are inflated once per year on the anniversary of the investment plan’s creation date. The inflating of cash flows is necessary to keep goals, savings, income sources, etc. up to date with their specified inflation rates.
The Scenario Comparison is hypothetical and not your Recommended Investment Plan. It is designed to illustrate "what-if" scenarios. The information shown is based on the Strategic Capital Market Assumptions data through 08/2012. Risk and
return figures are derived from standard investment industry statistical calculations. For risk and return information, please see the Strategic Capital Market Assumptions table in the disclosure section of this report. Downside risk represents the
potential loss the allocation could experience in a severe market downturn. The portfolio faces approximately a 5% chance each year of experiencing a loss this large or larger. They are for illustrative purposes and are not designed to predict actual
performance. Past performance is not a guarantee of future results.
05/01/2013
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Survivor Goals - Jim Survives
Liabilities to be Paid Immediately
Mortgage
$200,000.00
Final Expenses
$10,000
Decedent's Annual Income Replacement
$0 (Age Now-Ret.)
Survivor Goals
Retirement Age
Annual Retirement Spending
Estate Goal
60
$120,000
$1,000,000
Education Goals
Brown University - John
University of Virginia - Sara
$42,808 (Age 18-21)
$9,622 (Age 18-21)
Other Goals
Post Retirement Travel
$15,000 (Age Ret.-End)
Savings
Jim 401K
$40,000 (Age 52-Ret.)
Income Sources
Dental Practice Payout
Whole Life Policy
$75,000 (Age 62-66)
$100,000 (Age Death-Death)
Social Security
Social Security Survivor Benefits
Jim's Retirement Benefit
Strategic Allocation
+
$23,062
$21,782 (Age 62-Death)
Conservative Growth
66.0%
- 10.6%
Percent in Equities
Downside Risk
Total Value of Investments
Plan Result
$2,250,000
81
Survivor Needs Result
05/01/2013
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Estimated Total Coverage Needed
Existing Insurance Policies on Susan's Life
Estimated Additional Insurance Needed
$100,000
$100,000
$0
* Cash flows are inflated once per year on the anniversary of the investment plan’s creation date. The inflating of cash flows is necessary to keep goals, savings, Income Sources, etc. up to date with their specified inflation rates.
+
The Survivor Benefit amount shown here is for the first year only. Future benefits may be more or less.
Important Information
Estimated Total Coverage Needed: Indicates the total of your existing insurance plus your additional insurance need.
Existing Insurance Policies: Represents insurance coverage you identified as already having purchased.
Estimated Additional Insurance Needed: Represents the additional death benefit needed to meet the specific Survivor Goals stated in this survivor section.
You may have additional estate or business planning needs which are beyond the scope of this analysis. Please consult with your Financial Advisor for additional
analysis related to these issues.
The Survivor Needs page may include modified plan assumptions that anticipate the different needs you may have after the death of your spouse; your actual
situation may differ.
In anticipation of your survivor need, this analysis may exclude certain accounts identified in your Recommended Investment Plan.
05/01/2013
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Survivor Goals - Susan Survives
Liabilities to be Paid Immediately
Mortgage
$200,000.00
Final Expenses
$10,000
Decedent's Annual Income Replacement
$175,000 (Age Now-Ret.)
Survivor Goals
Retirement Age
Annual Retirement Spending
Estate Goal
60
$120,000
$1,000,000
Education Goals
Brown University - John
University of Virginia - Sara
$42,808 (Age 18-21)
$9,622 (Age 18-21)
Income Sources
Dental Practice Payout
$75,000 (Age 62-66)
Social Security
Social Security Survivor Benefits
Susan's Retirement Benefit
Strategic Allocation
+
$35,746
$20,426 (Age 62-Death)
Conservative Growth
66.0%
- 10.6%
Percent in Equities
Downside Risk
Total Value of Investments
Plan Result
$2,250,000
81
Survivor Needs Result
Estimated Total Coverage Needed
Existing Insurance Policies on Jim's Life
$1,710,000
$700,000
Estimated Additional Insurance Needed
$1,010,000
05/01/2013
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* Cash flows are inflated once per year on the anniversary of the investment plan’s creation date. The inflating of cash flows is necessary to keep goals, savings, Income Sources, etc. up to date with their specified inflation rates.
+
The Survivor Benefit amount shown here is for the first year only. Future benefits may be more or less.
Important Information
Estimated Total Coverage Needed: Indicates the total of your existing insurance plus your additional insurance need.
Existing Insurance Policies: Represents insurance coverage you identified as already having purchased.
Estimated Additional Insurance Needed: Represents the additional death benefit needed to meet the specific Survivor Goals stated in this survivor section.
You may have additional estate or business planning needs which are beyond the scope of this analysis. Please consult with your Financial Advisor for additional
analysis related to these issues.
The Survivor Needs page may include modified plan assumptions that anticipate the different needs you may have after the death of your spouse; your actual
situation may differ.
In anticipation of your survivor need, this analysis may exclude certain accounts identified in your Recommended Investment Plan.
05/01/2013
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Jim Taylor & Susan Taylor
Long-Term Care Comparison - Jim
LTC Event assumes death at the end of the long-term care event - age 73
Investment Plan Results
Long-Term Care Costs
Out of Pocket Cost
LTC Premium
Purchase RV - Jim
Post Retirement Travel Jim
Savings Contribution
DEFERRED - Jim
TAXABLE - Joint
DEFERRED - Susan
Income Sources
Dental Practice Payout Jim
#
Whole Life Policy - Jim
05/01/2013
Recommended With
Coverage
Long-Term Care Event
Without Coverage
Long-Term Care Event
With Coverage
81
79
73
81
N/A
N/A
$2,659 (Age Now Death)
$85,958 (Age 70 - 73)
N/A
N/A
$2,659 (Age Now - 70)
60
60
$140,000 (Age 60 - End)
60
60
$140,000 (Age 60 - End)
60
60
$140,000 (Age 60 - End)
60
60
$140,000 (Age 60 - End)
$42,808 (Age 18-21)
$42,808 (Age 18-21)
$42,808 (Age 18-21)
$42,808 (Age 18-21)
$9,622 (Age 18-21)
$9,622 (Age 18-21)
$9,622 (Age 18-21)
$9,622 (Age 18-21)
$250,000 (Age Ret. Ret.)
$250,000 (Age Ret. Ret.)
$250,000 (Age Ret. Ret.)
$250,000 (Age Ret. Ret.)
$15,000 (Age Ret. - End)
$15,000 (Age Ret. - End)
$15,000 (Age Ret. - 70)
$15,000 (Age Ret. - 70)
$40,000 (Age 52 - Ret.)
$20,000 (Age 52 - Ret.)
$15,000 (Age 52 - Ret.)
$40,000 (Age 52 - Ret.)
$20,000 (Age 52 - Ret.)
$15,000 (Age 52 - Ret.)
$40,000 (Age 52 - Ret.)
$20,000 (Age 52 - Ret.)
$15,000 (Age 52 - Ret.)
$40,000 (Age 52 - Ret.)
$20,000 (Age 52 - Ret.)
$15,000 (Age 52 - Ret.)
$75,000 (Age 62 - 66)
$75,000 (Age 62 - 66)
$75,000 (Age 62 - 66)
$75,000 (Age 62 - 66)
$100,000 (Age Death Death)
$100,000 (Age Death Death)
$100,000 (Age Death Death)
$100,000 (Age Death Death)
$21,782 (Age 62 - Death)
$15,341 (Age 62 - Death)
$6,441 (Age 93 - End)
$21,782 (Age 62 - Death)
$15,341 (Age 62 - Death)
$6,441 (Age 93 - End)
$21,782 (Age 62 - Death)
$15,341 (Age 62 - Death)
$6,441 (Age 74 - End)
$21,782 (Age 62 - Death)
$15,341 (Age 62 - Death)
$6,441 (Age 74 - End)
N/A
Retirement Goals
Jim's Retirement Age
Susan's Retirement Age
Retirement Spending
Education Goals
Brown University - John
University of Virginia Sara
Other Goals
Social Security
Jim
Susan
Susan
Recommended
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LTC Event assumes death at the end of the long-term care event - age 73
$1,000,000
Conservative
Growth (Age Now-End)
66.0%
-10.6%
Recommended With
Coverage
$1,000,000
Conservative
Growth (Age Now-End)
66.0%
-10.6%
Long-Term Care Event
Without Coverage
$1,000,000
Conservative
Growth (Age Now-End)
66.0%
-10.6%
Long-Term Care Event
With Coverage
$1,000,000
Conservative
Growth (Age Now-End)
66.0%
-10.6%
$2,250,000
$2,250,000
$2,250,000
$2,250,000
81
79
73
81
Recommended
Estate Goal
Strategic Allocation
Percent in Equities
Downside Risk
Total Value of Investments
Investment Plan Results
#
This cash flow was selected to continue after the LTC event.
Estimated annual cost for long-term care is based on the Delaware average semi-private room nursing home costs. Room rates were obtained from nursing homes that are licensed, provide both skilled and custodial care, and have a semi-private
pay rate for custodial care, not the Medicare or Medicaid reimbursed rate.
Estimated long-term care insurance premiums assume a healthy, non-smoker with no pre-existing conditions. The premium assumption is based on a four year benefit for semi-private room care with a 90 day elimination period. The number
provided is only an estimate and your actual premium costs will be different based on: product, underwriting risk classification, policy features, and benefits selected. The benefit may not cover the entire cost of long-term care. Long-term care
insurance may not be suitable for everyone.
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An Introduction to Estate Planning
Many investors need an estate plan.
An estate plan is designed to provide security, define your legacy, and give a voice to your intentions and dreams.
During your lifetime, a well-considered estate plan helps protect your financial security. It can help you to:
•
Designate a trusted person to manage your finances, if you become incapacitated - either temporarily, or for an extended time.
•
Clarify your wishes regarding medical treatment, if you are unable to express them yourself.
•
Appoint someone to make medical decisions for you, if you cannot.
•
Help avoid the strictures of a court-supervised guardianship or conservatorship, if you become incapacitated.
•
Delegate financial tasks to a trusted person, if you are traveling, ill, or simply want to "retire" from routine or burdensome matters.
In the event of your death, your estate plan may be vitally important to the people you care about most. A thoughtful estate plan does more than dispose of
possessions - it builds a foundation and structure for your legacy, and articulates your values. Your estate plan allows you to:
•
Appoint a guardian for minor children, and a trustee who can manage assets for them until a time that you select.
•
Create a distribution plan that reflects your life goals and values. What do you believe would have the most meaningful and beneficial impact on your heirs: an
outright distribution, all at once; a gradual distribution, in several stages; or a plan that provides a lifetime of income, with access to principal as a safety net?
•
Balance the interests and needs of your spouse, and children from a prior marriage, as you think best.
•
Protect assets for the benefit of a child with special needs.
•
Address the special issues that arise when you own a family business, farm, or unique real estate.
•
Utilize trusts to give a beneficiary's assets a significant measure of protection from creditors, divorce, the effects of substance abuse, or bad decision-making.
Building blocks of your estate plan
Estate planning encompasses much more than a will. In order to control where assets go and how they are distributed, it is important to understand the interaction
between legal forms of ownership, the five basic estate planning documents, and beneficiary designations.
Legal forms of ownership can affect your estate plan, and estate taxes. Here are some basic concepts:
•
Individual ownership exists when an account, or property, is simply titled in your own name, for example "John Smith." Property titled in this way usually passes
under the terms of your will, or if you do not have a will, to "default" heirs designated by state law.
•
Joint tenancy with right of survivorship (JTWROS) is a form of ownership in which two or more persons own an undivided interest in property. A deceased
owner's share automatically passes to the surviving owner(s), and is not affected by the terms in your will or trust.
•
Tenancy in common is also a form of ownership in which two or more persons own an undivided interest in property, but a deceased owner's share does not
automatically pass to the surviving owner(s); instead, the deceased owner's will or trust will be controlling.
•
Tenancy by the entirety is a variation of joint tenancy with right of survivorship, which can exist only between a husband and wife. This form of ownership is
recognized in fewer than half of the states. In some states, it can be used for all types of property; in others, it can only be used for real estate. Property held in
tenancy by the entirety is regarded as belonging to the husband and wife indivisibly, and generally is not subject to claims of either spouse's individual creditors.
•
Community property is a form of ownership applicable in 9 states (AZ, CA, ID, LA, NV, NM, TX, WA and WI). In addition, Alaska allows married couples to elect
community property treatment. In these states, the law generally provides that all property acquired by either spouse during marriage is held as community
property, with each spouse having a one-half interest. Property acquired before the marriage, or property acquired by gift or inheritance, is referred to as
separate property. A deceased spouse can transfer one-half of the community property, plus his or her own separate property, under his or her will.
Five basic estate planning documents are frequently recommended.
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A will provides instructions for distributing property that you own, upon your death, utilizing the probate process. Some wills are very simple; others include
complex planning provisions. Your attorney can help design a will that fits your needs and objectives.
A durable power of attorney allows you to name a trusted person to manage your financial and personal affairs if you are incapacitated. This document is
important for lifetime planning. The authority of the agent (or "attorney in fact") ends when you die.
A durable power of attorney for health care is another lifetime planning document; it allows you to name a trusted person to make a wide variety of medical
decisions if you cannot, including decisions about end-of-life care. It is very important to name a person who shares your views and values. This document
may also be referred to as a health care directive or health care proxy.
A living will expresses your intentions with regard to the use of life-sustaining measures in the event of a terminal illness. It expresses what you want but does
not give anyone the authority to speak for you. Sometimes, this document or statement is combined with a durable power of attorney for health care.
The revocable living trust is often used in states where the probate process is lengthy or expensive. By transferring assets into a revocable living trust, you
can provide for continued management of financial affairs during your lifetime and upon your death. Assets held in a revocable trust avoid the probate process.
This may help to simplify the settlement process, and reduce the amount of personal information that becomes part of a public record. During your lifetime, you
typically act as your own trustee. You name a successor trustee to manage trust assets after your death. Some revocable trusts provide for a simple outright
distribution of assets; others call for the creation of continuing trusts after death. Your attorney can help you determine whether or not a revocable trust is
appropriate for your situation, and if it is, can customize a trust to fit your situation.
Beneficiary designations also have an important effect on your estate plan.
•
Assets such as IRAs, qualified retirement plans and life insurance policies pass according to a beneficiary designation. Ordinarily, these assets are not governed
by your will or trust, and are not subject to probate. If you fail to name a beneficiary, these assets typically must be paid to your estate (making a normally
non-probate asset subject to probate). Accordingly, it is very important to be sure you name both primary and contingent beneficiaries, and that you keep your
beneficiary designations up to date. Many types of employee benefit plans also have beneficiary designations, including nonqualified deferred compensation
(NQDC) plans, non-qualified stock options (NSOs), incentive stock options (ISOs), employee stock purchase plans (ESPPs), and restricted stock awards.
•
Transfer on Death (TOD) designations are permitted for securities accounts in all states except Louisiana. Some states also permit TOD designations on other
types of property. For bank accounts, the term Pay on Death (POD) designation is used. A TOD designation is another way to avoid the probate process.
To make a TOD designation, you complete a simple account form. You can name one or more beneficiaries to receive an outright distribution of a particular
account upon your death. During your lifetime, you retain sole ownership of the account, and you can revoke or change a TOD designation at any time. While
this can be a good way to make simple transfers, it is much more limiting than a will or living trust, because it is not comprehensive and does not allow you
to provide for contingencies, or handle complex planning provisions.
Your estate planning team
Your attorney is your primary estate planning advisor. In addition to preparing your estate planning documents, your attorney can guide you in selecting tools and
strategies to fit your specific situation, and personal objectives. Your CPA is familiar with your income tax situation, and adds another valuable perspective to your
estate planning team. Your financial advisor can help you organize your financial information, define your goals, and provide information about estate planning
concepts. Your Envision plan is a good starting point for the estate planning process, and we encourage you to share it with your attorney.
Evaluate strategies in light of your values and life goals
As you evaluate any advanced planning strategy, ask:
•
Does it reflect my values?
•
How does it affect my income and financial security?
•
Is it consistent with my time horizon, risk tolerance, and financial situation?
•
Will it help to accomplish my goals and dreams?
•
Does it build the type of legacy I want to create?
•
How does it affect the people I care about most?
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We encourage you to begin a conversation with your financial advisor about your values and goals, and extend that conversation to your attorney and CPA, and
your family as well.
05/01/2013
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Understanding the Federal Estate Tax
Who is affected by the federal estate tax?
Your estate may be subject to federal estate tax if your "taxable estate" exceeds your "applicable exclusion." The tax is imposed at a flat 40% rate on the amount
above the exclusion. This tax is paid by your estate, before distributions to beneficiaries. The federal estate tax return and full payment of the tax are due nine
months after the date of death.
Your applicable exclusion has two components:
•
The first part is your "basic exclusion." In 2013, this amount is $5,250,000. (This amount is adjusted annually for inflation.)
•
Some individuals will have additional exclusion "carried over" from a deceased spouse. (This is called the "Deceased Spousal Unused Exclusion Amount" or
"DSUE Amount". We'll explain more about this below when we discuss the concept of "portability.")
More than 20 states impose their own estate or inheritance taxes, in addition to the federal tax. The state thresholds for imposing tax are often lower than the federal
applicable exclusion. The rules vary considerably from state to state.
Don't put off estate planning just because tax laws may change. Tax laws change frequently, so attorneys are experienced at building flexibility into estate planning
documents.
What is included in my taxable estate?
In federal tax law, the definition of the "taxable estate" is very broad - it basically encompasses the value of everything you own or control. For example, your taxable
estate includes:
•
Cash, checking, savings, and money market accounts.
•
Investment securities, real estate and closely-held business interests, at fair market value.
•
Retirement plans and employee benefits, including IRAs and Roth IRAs, qualified retirement plans, incentive and non-qualified stock options, restricted stock,
employee stock purchase plans, and non-qualified deferred compensation.
•
Personal property, including autos, boats, household furnishings, jewelry, artwork, and collectibles.
•
All property held in revocable trusts.
•
The death benefit on life insurance policies that you own or control.
•
Property that you transferred to others, subject to a retained income interest or life estate.
•
Property over which you have a "general powers of appointment" (the unlimited power to transfer to another).
It's important to understand that assets which pass outside of probate (such as revocable trusts, TOD accounts, IRAs and retirement plans, and life insurance) are
generally still part of your taxable estate.
Special considerations for married couples
Federal estate tax law allows an unlimited marital deduction - a married person can pass unlimited amounts to a surviving spouse who is a U.S. citizen, with no estate
tax. But this may actually compound the estate tax problem, because a surviving spouse does not automatically get "double" the applicable exclusion available to a
single person. At the second death, if no additional steps are taken, the surviving spouse would have only his or her own exclusion.
There are two basic planning approaches that a married couple can use in order to get the full benefit of two estate tax exclusions. One approach involves planning
in advance to create a Credit Shelter Trust upon the death of the first spouse. An alternative approach involves making a "portability" election after the death of
the first spouse.
Credit shelter trust planning
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By using a "credit shelter" or "bypass" trust strategy, married couples can take advantage of the "applicable exclusion" for both spouses.
Here's how it works: A provision in your will or living trust directs that, if you are the first spouse to die, an amount up to your applicable exclusion will be allocated
to a credit shelter trust. Typically, this trust will pay income, and principal as needed, to the surviving spouse. (If you wish, your trust could permit distributions of
income and principal to other beneficiaries as well.) The trust directs how any remaining principal will be distributed when the surviving spouse dies. Typically, the
trust assets are distributed to children at the second death, either outright or in a continuing trust. The assets in a credit shelter trust are not part of the surviving
spouse's taxable estate. In effect, the original principal, and any future growth, is "sheltered" from tax by the applicable exclusion of the first spouse to die. And the
surviving spouse still has his or her own exclusion to apply at the time of the second death.
In order for a credit shelter trust to work, there must be assets to fund it. Asset titling, and beneficiary designations, should be arranged so that each spouse will
have assets available to fund a credit shelter trust, regardless of who dies first.
Using the portability election
A special tax election, commonly referred to as a "portability" election, allows the transfer any "unused" estate tax exclusion from a deceased spouse to a surviving
spouse. This potentially allows the surviving spouse to protect a much greater amount from estate tax at the second death.
Here's how portability works:
•
The deceased spouse leaves property to the surviving spouse. You could make an outright transfer with no restrictions, or use a trust that would qualify for
the marital deduction.
•
The deceased spouse's executor must file an estate tax return (even if no estate tax is owed or a return would not otherwise be required) to make the portability
election. The estate tax return is due nine months after death.
•
Giving property to the surviving spouse will, of course, increase the survivor's taxable estate - but if the portability election is made, the surviving spouse will
also have a larger estate tax "applicable exclusion."
•
Making the portability election provides an opportunity to get a second "step-up" in cost basis when the surviving spouse dies.
Portability seems easy - but carries significant drawbacks and risks. For example:
•
•
•
•
•
The deceased spouse's executor must file a timely estate tax return and make the election. If the election is not made, the planning opportunity will be lost,
resulting in a larger estate tax at the second death.
The surviving spouse can only use the additional exclusion from his or her "most recently deceased" spouse. If the survivor remarries and outlives another
spouse, the transferred exclusion will be lost.
The value of the transferred exclusion is fixed. Any growth in value of the transferred assets will be part of the surviving spouse's taxable estate.
While the basic estate tax exclusion is transferable, the generation-skipping tax ("GST") exemption is not.
Portability only applies to federal estate taxes. State exclusions cannot be transferred.
Portability has both advantages and disadvantages. It may work well for some couples, but not others. It's important to work with your attorney and tax adviser to
create an overall estate plan that is both tailored to your personal situation and flexible enough for changing tax laws.
Advanced estate planning strategies
For single individuals with estates greater than the applicable exclusion or married couples with estates more than double the applicable exclusion, additional tax
planning strategies are available. These include annual exclusion gifts, irrevocable life insurance trusts, charitable trusts, and many more. Your financial advisor,
attorney, and CPA can work together to help you put strategies in place that fit your financial situation and your personal values and goals.
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Strategic Allocation Investment Objectives
Conservative Income
Income investors seek a maximum amount of income given their risk tolerance,
and are willing to forgo capital appreciation and growth of income. Conservative
Income investors seek the maximum amount of income consistent with a
modest degree of risk. They are willing to accept a lower level of income in
exchange for lower risk. Higher risk investments, such as high yield bonds and
some equities, are typically not a large percentage of the account.
Conservative Growth & Income
Moderate Growth
Growth investors do not seek account income and their primary objective is
capital appreciation. Moderate Growth investors seek to balance potential risk
of capital loss with their goal of higher potential growth. Equities may be the
primary asset in the account.
Long Term Income
Growth and Income investors seek current income, but also seek income and
capital growth over time. These investors are willing to forgo a portion of
current income in order to seek potential future growth. Conservative Growth
and Income investors seek the maximum growth and income consistent with
a relatively modest degree of risk. They are willing to accept lower potential
returns in exchange for lower risk. Equities, generally dividend paying equities,
may be some percentage of the account.
Income investors seek a maximum amount of income given their risk tolerance,
and are willing to forgo capital appreciation and growth of income. Long Term
Income investors seek a significant level of income, are financially able and
willing to risk losing a substantial portion of investment capital, and, due to their
long term horizon or other factors, they employ higher risk, more aggressive
strategies that may offer higher potential income. Higher risk investments, such
as high yield bonds and some equities, may be a significant percentage of the
account.
Conservative Growth
Long Term Growth & Income
Growth investors do not seek account income and their primary objective is
capital appreciation. Conservative Growth investors seek maximum growth
consistent with a relatively modest degree of risk. They are willing to accept
lower potential returns in exchange for lower risk. Equities may be a significant
percentage of the account.
Growth and Income investors seek current income, but also seek income and
capital growth over time. These investors are willing to forgo a portion of current
income in order to seek potential future growth. Long Term Growth and Income
investors seek a significant level of growth and income, are financially able
and willing to risk losing a substantial portion of investment capital, and due to
their long term horizon or other factors they pursue high risk, more aggressive
strategies that may offer higher potential returns. High yield bonds and equities,
generally dividend paying equities, may be the primary assets in the account.
Moderate Income
Income investors seek a maximum amount of income given their risk tolerance,
and are willing to forgo capital appreciation and growth of income. Moderate
Income investors seek to balance the potential risk of capital loss with
increased income potential. Higher risk investments, such as high yield bonds
and some equities, may be some percentage of the account.
Moderate Growth & Income
Growth and Income investors seek current income, but also seek income and
capital growth over time. These investors are willing to forgo a portion of current
income in order to seek potential future growth. Moderate Growth and Income
investors seek to balance the risk of capital loss with higher potential growth
and income. High yield bonds and equities, generally dividend paying equities,
may be a significant percentage of the account.
05/01/2013
Long Term Growth
Growth investors do not seek account income and their primary objective is
capital appreciation. Long Term Growth investors seek a significant level of
growth, are financially able and willing to risk losing a substantial portion of
investment capital, and due to their long term horizon or other factors, they
employ higher risk, more aggressive strategies that may offer higher potential
returns. Higher risk investments such as equities may be as much as 100%
of the account.
Your actual asset allocation may vary from the Strategic or Custom Allocation, based upon your individual circumstances.
There can be no guarantee that your investment goals will be reached by following a prescribed asset allocation model.
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The Strategic Allocations
Conservative Income
Conservative Growth
Average Return:
5.0%
Average Return:
Downside Risk:
-1.4%
Downside Risk:
7.8%
-10.6%
Large Cap (2.00%)
Large Cap (28.00%)
Mid Cap (2.00%)
Mid Cap (10.00%)
International Equity (2.00%)
Small Cap (8.00%)
Short Term Fixed Income (25.00%)
International Equity (9.00%)
Intermediate Fixed Inc (45.00%)
Emerging Market Equity (9.00%)
Long Term Fixed Income (4.00%)
Short Term Fixed Income (8.00%)
Intl Fixed Income (4.00%)
Intermediate Fixed Inc (14.00%)
Emerging Market Debt (4.00%)
Long Term Fixed Income (4.00%)
High Yield Fixed Income (4.00%)
High Yield Fixed Income (2.00%)
REIT (3.00%)
REIT (2.00%)
Cash Alternative (5.00%)
Commodities (4.00%)
Cash Alternative (2.00%)
Conservative Growth & Income
Average Return:
6.4%
Downside Risk:
-4.4%
Moderate Income
Average Return:
5.9%
Downside Risk:
-2.8%
Large Cap (10.00%)
Mid Cap (4.00%)
Large Cap (10.00%)
Small Cap (4.00%)
Mid Cap (2.00%)
International Equity (5.00%)
Small Cap (2.00%)
Emerging Market Equity (5.00%)
International Equity (4.00%)
Short Term Fixed Income (10.00%)
Short Term Fixed Income (18.00%)
Intermediate Fixed Inc (28.00%)
Intermediate Fixed Inc (31.00%)
Long Term Fixed Income (15.00%)
Long Term Fixed Income (7.00%)
Intl Fixed Income (2.00%)
Intl Fixed Income (4.00%)
Emerging Market Debt (5.00%)
Emerging Market Debt (9.00%)
High Yield Fixed Income (4.00%)
High Yield Fixed Income (7.00%)
REIT (3.00%)
REIT (3.00%)
Commodities (2.00%)
Cash Alternative (3.00%)
Cash Alternative (3.00%)
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Moderate Growth & Income
Long Term Income
Average Return:
7.3%
Average Return:
6.5%
Downside Risk:
-8.2%
Downside Risk:
-4.5%
Large Cap (19.00%)
Large Cap (12.00%)
Mid Cap (8.00%)
Mid Cap (4.00%)
Small Cap (6.00%)
Small Cap (4.00%)
International Equity (6.00%)
International Equity (6.00%)
Emerging Market Equity (7.00%)
Short Term Fixed Income (6.00%)
Short Term Fixed Income (5.00%)
Intermediate Fixed Inc (25.00%)
Intermediate Fixed Inc (19.00%)
Long Term Fixed Income (10.00%)
Long Term Fixed Income (7.00%)
Intl Fixed Income (6.00%)
Intl Fixed Income (3.00%)
Emerging Market Debt (12.00%)
Emerging Market Debt (6.00%)
High Yield Fixed Income (9.00%)
High Yield Fixed Income (6.00%)
REIT (3.00%)
REIT (3.00%)
Cash Alternative (3.00%)
Commodities (2.00%)
Cash Alternative (3.00%)
Long Term Growth & Income
Average Return:
Moderate Growth
Average Return:
Downside Risk:
8.4%
-14.2%
Downside Risk:
8.0%
-11.7%
Large Cap (24.00%)
Mid Cap (12.00%)
Large Cap (28.00%)
Small Cap (10.00%)
Mid Cap (14.00%)
International Equity (7.00%)
Small Cap (14.00%)
Emerging Market Equity (8.00%)
International Equity (12.00%)
Intermediate Fixed Inc (10.00%)
Emerging Market Equity (12.00%)
Long Term Fixed Income (3.00%)
Short Term Fixed Income (3.00%)
Intl Fixed Income (3.00%)
Intermediate Fixed Inc (5.00%)
Emerging Market Debt (7.00%)
Long Term Fixed Income (2.00%)
High Yield Fixed Income (8.00%)
High Yield Fixed Income (2.00%)
REIT (3.00%)
REIT (2.00%)
Commodities (2.00%)
Commodities (4.00%)
Cash Alternative (3.00%)
Cash Alternative (2.00%)
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Long Term Growth
Average Return:
Downside Risk:
8.8%
-16.5%
The information shown is based on the Strategic Capital Market Assumptions data through 08/2012. Risk and return
figures are based on forward looking asset class assumptions. For risk and return information, please see the Strategic
Capital Market Assumptions table in the disclosure section of this report. Downside risk represents the potential loss
the allocation could experience in a severe market downturn. The portfolio faces approximately a 5% chance each
year of experiencing a loss this large or larger. They are for illustrative purposes and are not designed to predict actual
performance. Past performance is not a guarantee of future results.
Large Cap (28.00%)
Mid Cap (16.00%)
Small Cap (16.00%)
International Equity (17.00%)
Emerging Market Equity (15.00%)
REIT (2.00%)
Commodities (4.00%)
Cash Alternative (2.00%)
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
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Jim Taylor & Susan Taylor
Current vs Strategic Allocation - Asset Class
Current
Conservative Growth
Equity (40.89%)
Equity (66.00%)
Fixed Income (10.22%)
Fixed Income (28.00%)
Cash Alternative (48.89%)
Alternative Investment (4.00%)
Cash Alternative (2.00%)
Average Return:
Downside Risk:
5.9%
-4.3%
Average Return:
7.8%
Downside Risk: -10.6%
Long Positions
Asset Class
Equity
Fixed Income
Alternative Investment
Cash Alternative
Total:
$ 920,000.00
$ 230,000.00
$ 0.00
$ 1,100,000.00
$ 2,250,000.00
Current
40.89%
10.22%
0.00%
48.89%
100.00%
$ 1,485,000.00
$ 630,000.00
$ 90,000.00
$ 45,000.00
$ 2,250,000.00
Strategic
66.00%
28.00%
4.00%
2.00%
100.00%
Difference
$ 565,000.00
25.11%
$ 400,000.00
17.78%
$ 90,000.00
4.00%
$ - 1,055,000.00
- 46.89%
$ 0.00
0.00%
Current Allocation indicates how an investor's portfolio is allocated based on Wells Fargo Advisors asset classifications and current market value
Strategic Allocation illustrates how much of an investor's portfolio should be allocated to the various asset classes based on the recommended investment plan.
The information shown is based on the Strategic Capital Market Assumptions data through 08/2012. Risk and return figures are based on forward looking asset class assumptions. For risk and return information, please see the Strategic Capital
Market Assumptions table in the disclosure section of this report. Downside risk represents the potential loss the allocation could experience in a severe market downturn. The portfolio faces approximately a 5% chance each year of experiencing a
loss this large or larger. They are for illustrative purposes and are not designed to predict actual performance. Past performance is not a guarantee of future results.
The downside risk and average return for the current allocation are calculated based on a classification of the underlying holdings for funds, ETFs, UITs and annuity sub-accounts. For funds in alternative investment strategies and where underlying
holdings are not available for classification, the asset class assigned to that security is used. Underlying classification data is updated periodically and the frequency of updates will vary by fund.
Totals may not equal calculated amounts due to rounding differences.
The Disclosures include definitions of the terms on this page and other detailed information.
Market Values are based on closing prices and positions as of 3/2/2012 for security level holdings.
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
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Jim Taylor & Susan Taylor
Current vs Strategic Allocation - Asset Class Type
Current
Conservative Growth
Domestic Equity (32.00%)
Domestic Equity (46.00%)
International Equity (8.89%)
International Equity (18.00%)
Domestic Fixed Income (10.22%)
Domestic Fixed Income (26.00%)
Cash Alternative (48.89%)
Alternative Income (4.00%)
Alternative Investment (4.00%)
Cash Alternative (2.00%)
Average Return:
Downside Risk:
5.9%
-4.3%
Average Return:
7.8%
Downside Risk: -10.6%
Long Positions
Asset Class Type
Domestic Equity
International Equity
Domestic Fixed Income
Alternative Income
Alternative Investment
Cash Alternative
Total:
$ 720,000.00
$ 200,000.00
$ 230,000.00
$ 0.00
$ 0.00
$ 1,100,000.00
$ 2,250,000.00
Current
32.00%
8.89%
10.22%
0.00%
0.00%
48.89%
100.00%
$ 1,035,000.00
$ 405,000.00
$ 585,000.00
$ 90,000.00
$ 90,000.00
$ 45,000.00
$ 2,250,000.00
Strategic
46.00%
18.00%
26.00%
4.00%
4.00%
2.00%
100.00%
Difference
$ 315,000.00
14.00%
$ 205,000.00
9.11%
$ 355,000.00
15.78%
$ 90,000.00
4.00%
$ 90,000.00
4.00%
$ - 1,055,000.00
- 46.89%
$ 0.00
0.00%
Current Allocation indicates how an investor's portfolio is allocated based on Wells Fargo Advisors asset classifications and current market value
Strategic Allocation illustrates how much of an investor's portfolio should be allocated to the various asset classes based on the recommended investment plan.
The information shown is based on the Strategic Capital Market Assumptions data through 08/2012. Risk and return figures are based on forward looking asset class assumptions. For risk and return information, please see the Strategic Capital
Market Assumptions table in the disclosure section of this report. Downside risk represents the potential loss the allocation could experience in a severe market downturn. The portfolio faces approximately a 5% chance each year of experiencing a
loss this large or larger. They are for illustrative purposes and are not designed to predict actual performance. Past performance is not a guarantee of future results.
The downside risk and average return for the current allocation are calculated based on a classification of the underlying holdings for funds, ETFs, UITs and annuity sub-accounts. For funds in alternative investment strategies and where underlying
holdings are not available for classification, the asset class assigned to that security is used. Underlying classification data is updated periodically and the frequency of updates will vary by fund.
Totals may not equal calculated amounts due to rounding differences.
The Disclosures include definitions of the terms on this page and other detailed information.
Market Values are based on closing prices and positions as of 3/2/2012 for security level holdings.
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
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Jim Taylor & Susan Taylor
Current vs Strategic Allocation - Asset Class Sub Type
Current
Conservative Growth
Large Cap (21.11%)
Large Cap (28.00%)
Mid Cap (10.89%)
Mid Cap (10.00%)
International Equity (8.89%)
Small Cap (8.00%)
Short Term Fixed Income (8.89%)
International Equity (9.00%)
Intermediate Fixed Inc (1.33%)
Emerging Market Equity (9.00%)
Cash Alternative (48.89%)
Short Term Fixed Income (8.00%)
Intermediate Fixed Inc (14.00%)
Long Term Fixed Income (4.00%)
High Yield Fixed Income (2.00%)
REIT (2.00%)
Commodities (4.00%)
Cash Alternative (2.00%)
Average Return:
Downside Risk:
5.9%
-4.3%
Average Return:
7.8%
Downside Risk: -10.6%
Long Positions
Asset Class Sub Type
Large Cap
Mid Cap
Small Cap
International Equity
Emerging Market Equity
Short Term Fixed Income
Intermediate Fixed Inc
Long Term Fixed Income
High Yield Fixed Income
REIT
Commodities
Cash Alternative
Total:
05/01/2013
$ 475,000.00
$ 245,000.00
$ 0.00
$ 200,000.00
$ 0.00
$ 200,000.00
$ 30,000.00
$ 0.00
$ 0.00
$ 0.00
$ 0.00
$ 1,100,000.00
$ 2,250,000.00
Current
21.11%
10.89%
0.00%
8.89%
0.00%
8.89%
1.33%
0.00%
0.00%
0.00%
0.00%
48.89%
100.00%
$ 630,000.00
$ 225,000.00
$ 180,000.00
$ 202,500.00
$ 202,500.00
$ 180,000.00
$ 315,000.00
$ 90,000.00
$ 45,000.00
$ 45,000.00
$ 90,000.00
$ 45,000.00
$ 2,250,000.00
Strategic
28.00%
10.00%
8.00%
9.00%
9.00%
8.00%
14.00%
4.00%
2.00%
2.00%
4.00%
2.00%
100.00%
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Difference
$ 155,000.00
6.89%
$ - 20,000.00
- 0.89%
$ 180,000.00
8.00%
$ 2,500.00
0.11%
$ 202,500.00
9.00%
$ - 20,000.00
- 0.89%
$ 285,000.00
12.67%
$ 90,000.00
4.00%
$ 45,000.00
2.00%
$ 45,000.00
2.00%
$ 90,000.00
4.00%
$ - 1,055,000.00
- 46.89%
$ 0.00
0.00%
Page 54 of 108
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Jim Taylor & Susan Taylor
Current Allocation indicates how an investor's portfolio is allocated based on Wells Fargo Advisors asset classifications and current market value
Strategic Allocation illustrates how much of an investor's portfolio should be allocated to the various asset classes based on the recommended investment plan.
The information shown is based on the Strategic Capital Market Assumptions data through 08/2012. Risk and return figures are based on forward looking asset class assumptions. For risk and return information, please see the Strategic Capital
Market Assumptions table in the disclosure section of this report. Downside risk represents the potential loss the allocation could experience in a severe market downturn. The portfolio faces approximately a 5% chance each year of experiencing a
loss this large or larger. They are for illustrative purposes and are not designed to predict actual performance. Past performance is not a guarantee of future results.
The downside risk and average return for the current allocation are calculated based on a classification of the underlying holdings for funds, ETFs, UITs and annuity sub-accounts. For funds in alternative investment strategies and where underlying
holdings are not available for classification, the asset class assigned to that security is used. Underlying classification data is updated periodically and the frequency of updates will vary by fund.
Totals may not equal calculated amounts due to rounding differences.
The Disclosures include definitions of the terms on this page and other detailed information.
Market Values are based on closing prices and positions as of 3/2/2012 for security level holdings.
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
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Current vs Strategic Allocation - Asset Class Detail
Current
Conservative Growth
Large Cap Growth (21.11%)
Large Cap Growth (14.00%)
Mid Cap Growth (2.00%)
Large Cap Value (14.00%)
Mid Cap Blend (8.89%)
Mid Cap Growth (5.00%)
International Equity (8.89%)
Mid Cap Value (5.00%)
Short Term Taxable Fixed Income (8.89%)
Small Cap Growth (4.00%)
Intermediate Taxable Fixed Income (1.33%)
Small Cap Value (4.00%)
Cash Alternative (48.89%)
International Equity (9.00%)
Emerging Market Equity (9.00%)
Short Term Taxable Fixed Income (8.00%)
Intermediate Taxable Fixed Income (14.00%)
Long Term Taxable Fixed Income (4.00%)
High Yield Fixed Income (2.00%)
REIT Equity (2.00%)
Commodities (4.00%)
Cash Alternative (2.00%)
Average Return:
Downside Risk:
5.9%
-4.3%
Average Return:
7.8%
Downside Risk: -10.6%
Long Positions
Asset Class Detail
Large Cap Growth
Large Cap Value
Mid Cap Growth
Mid Cap Value
Mid Cap Blend
Small Cap Growth
Small Cap Value
International Equity
Emerging Market Equity
Short Term Taxable Fixed Income
Intermediate Taxable Fixed Income
Long Term Taxable Fixed Income
05/01/2013
$ 475,000.00
$ 0.00
$ 45,000.00
$ 0.00
$ 200,000.00
$ 0.00
$ 0.00
$ 200,000.00
$ 0.00
$ 200,000.00
$ 30,000.00
$ 0.00
Current
21.11%
0.00%
2.00%
0.00%
8.89%
0.00%
0.00%
8.89%
0.00%
8.89%
1.33%
0.00%
$ 315,000.00
$ 315,000.00
$ 112,500.00
$ 112,500.00
$ 0.00
$ 90,000.00
$ 90,000.00
$ 202,500.00
$ 202,500.00
$ 180,000.00
$ 315,000.00
$ 90,000.00
Strategic
14.00%
14.00%
5.00%
5.00%
0.00%
4.00%
4.00%
9.00%
9.00%
8.00%
14.00%
4.00%
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Difference
$ - 160,000.00
- 7.11%
$ 315,000.00
14.00%
$ 67,500.00
3.00%
$ 112,500.00
5.00%
$ - 200,000.00
- 8.89%
$ 90,000.00
4.00%
$ 90,000.00
4.00%
$ 2,500.00
0.11%
$ 202,500.00
9.00%
$ - 20,000.00
- 0.89%
$ 285,000.00
12.67%
$ 90,000.00
4.00%
Page 56 of 108
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Jim Taylor & Susan Taylor
Long Positions
Asset Class Detail
High Yield Fixed Income
REIT Equity
Commodities
Cash Alternative
Total:
$ 0.00
$ 0.00
$ 0.00
$ 1,100,000.00
$ 2,250,000.00
Current
0.00%
0.00%
0.00%
48.89%
100.00%
$ 45,000.00
$ 45,000.00
$ 90,000.00
$ 45,000.00
$ 2,250,000.00
Strategic
2.00%
2.00%
4.00%
2.00%
100.00%
Difference
$ 45,000.00
2.00%
$ 45,000.00
2.00%
$ 90,000.00
4.00%
$ - 1,055,000.00
- 46.89%
$ 0.00
0.00%
Current Allocation indicates how an investor's portfolio is allocated based on Wells Fargo Advisors asset classifications and current market value
Strategic Allocation illustrates how much of an investor's portfolio should be allocated to the various asset classes based on the recommended investment plan.
The information shown is based on the Strategic Capital Market Assumptions data through 08/2012. Risk and return figures are based on forward looking asset class assumptions. For risk and return information, please see the Strategic Capital
Market Assumptions table in the disclosure section of this report. Downside risk represents the potential loss the allocation could experience in a severe market downturn. The portfolio faces approximately a 5% chance each year of experiencing a
loss this large or larger. They are for illustrative purposes and are not designed to predict actual performance. Past performance is not a guarantee of future results.
The downside risk and average return for the current allocation are calculated based on a classification of the underlying holdings for funds, ETFs, UITs and annuity sub-accounts. For funds in alternative investment strategies and where underlying
holdings are not available for classification, the asset class assigned to that security is used. Underlying classification data is updated periodically and the frequency of updates will vary by fund.
Totals may not equal calculated amounts due to rounding differences.
The Disclosures include definitions of the terms on this page and other detailed information.
Market Values are based on closing prices and positions as of 3/2/2012 for security level holdings.
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
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Current vs Strategic - Efficient Frontier
9
Long Term Growth
Average Return (%)
Moderate Growth
8
Long Term Growth & Income
Conservative Growth
7
Moderate Growth & Income
Long Term Income
Conservative Growth & Income
6
Moderate Income
Conservative Income
5
4
1
5
9
13
17
Downside Risk (%)
Average Return:
Downside Risk:
Current Allocation
5.9%
-4.3%
Conservative Growth
7.8%
-10.6%
Your Recommended Investment Plan Result was calculated assuming that you will modify your strategic asset allocations, if applicable, throughout the life of the plan. The recommended strategic asset allocation reflected on this page illustrates the
current recommended strategic allocation. Future allocations are illustrated on the Age Based Asset Allocation page.
Each Strategic Allocation has an average return and level of Downside Risk. An "efficient" portfolio allocation is designed to seek the maximum rate of return for the amount of risk assumed. The Efficient Frontier is created to represent the optimal
rate of return attainable for any determined level of risk. In theory, the closer your portfolio allocation came to the efficient frontier, the more return you received for the amount of risk you assumed.
The information shown is based on the Strategic Capital Market Assumptions data through 08/2012. Risk and return figures are based on forward looking asset class assumptions. For risk and return information, please see the Strategic Capital
Market Assumptions table in the disclosure section of this report. Downside risk represents the potential loss the allocation could experience in a severe market downturn. The portfolio faces approximately a 5% chance each year of experiencing a
loss this large or larger. They are for illustrative purposes and are not designed to predict actual performance. Past performance is not a guarantee of future results.
The downside risk and average return for the current allocation are calculated based on a classification of the underlying holdings for funds, ETFs, UITs and annuity sub-accounts. For funds in alternative investment strategies and where underlying
holdings are not available for classification, the asset class assigned to that security is used. Underlying classification data is updated periodically and the frequency of updates will vary by fund.
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
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Account Summary
XXXX888 (Susan's IRA) (EXTERNAL)
Asset Allocation
Cash Alternative (100.00%)
Security Level - Long Positions
Name
Amount
Long Mkt Value:
Short Mkt Value:
Cash Alternative Balance:
Account Value:
%
$ 0.00
$ 0.00
$ 250,000.00
$ 250,000.00
XXXX8888 (Joint Account) (EXTERNAL)
Asset Allocation
Large Cap Growth (30.00%)
Mid Cap Growth (18.00%)
Intermediate Taxable Fixed Income (12.00%)
Cash Alternative (40.00%)
Asset Class and Security Level - Long Positions
Name
Intermediate Taxable Fixed Income
Large Cap Growth
Mid Cap Growth
Long Mkt Value:
Short Mkt Value:
Cash Alternative Balance:
Account Value:
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Amount
%
$ 30,000.00
$ 75,000.00
$ 45,000.00
12.00
30.00
18.00
$ 150,000.00
$ 0.00
$ 100,000.00
$ 250,000.00
Page 59 of 108
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Jim Taylor & Susan Taylor
XXXX8888 (Jim's PSP Deferred) (EXTERNAL)
Asset Allocation
Large Cap Growth (26.67%)
Mid Cap Blend (13.33%)
International Equity (13.33%)
Short Term Taxable Fixed Income (13.33%)
Cash Alternative (33.33%)
Asset Class and Security Level - Long Positions
Name
International Equity
Large Cap Growth
Mid Cap Blend
Short Term Taxable Fixed Income
Long Mkt Value:
Short Mkt Value:
Cash Alternative Balance:
Account Value:
Amount
%
$ 200,000.00
$ 400,000.00
$ 200,000.00
$ 200,000.00
13.33
26.67
13.33
13.33
$ 1,000,000.00
$ 0.00
$ 500,000.00
$ 1,500,000.00
XXXX8888 (John's 529) (EXTERNAL)
Asset Allocation
Cash Alternative (100.00%)
Security Level - Long Positions
Name
Long Mkt Value:
Short Mkt Value:
Cash Alternative Balance:
Account Value:
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Amount
%
$ 0.00
$ 0.00
$ 130,000.00
$ 130,000.00
Page 60 of 108
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Jim Taylor & Susan Taylor
XXXX8888 (Sara's 529) (EXTERNAL)
Asset Allocation
Cash Alternative (100.00%)
Security Level - Long Positions
Name
Long Mkt Value:
Short Mkt Value:
Cash Alternative Balance:
Account Value:
Security-Level Holdings:
Asset Class-Level Holdings:
Asset Class and Security Level Holdings:
Total Holdings:
Amount
%
$ 0.00
$ 0.00
$ 120,000.00
$ 120,000.00
$500,000.00
$0.00
$1,750,000.00
$2,250,000.00
As an accommodation to you, we have included assets held away from our firm in external accounts. We assume no responsibility for the accuracy or completeness of the information you have
provided with respect to these assets. We make no representation that we have performed due diligence on these assets. In some cases, we may update the pricing of securities. However, in some
cases, the prices may not be updated. In addition, any transactions involving these assets will not be reflected unless you provide updated information. We rely on you to provide information in order
to update the values of your external accounts. The accuracy and completeness of the information you provide may materially affect the results and any recommendations contained in this report.
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
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Range of Simulation Possible Outcomes
Results shown in Actual dollars
Percentile
Year 5
Year 10
Year 15
Year 20
Year 25
At Death
Recommended
Best
$5,074,691
$8,261,688
$13,880,371
$22,522,281
$34,366,141
$129,921,160
25th
$3,969,147
$5,728,136
$8,671,991
$12,372,475
$17,968,879
$49,634,501
50th
$3,359,848
$4,469,743
$6,239,301
$8,121,567
$10,459,730
$24,164,535
75th
$2,912,447
$3,517,467
$4,296,090
$4,915,549
$5,463,728
$6,025,405
Target 81
$2,783,784
$3,261,156
$3,819,185
$4,038,279
$4,254,472
$1,001,078
Worst
$2,323,264
$2,353,761
$2,409,988
$1,917,044
$828,280
$0
+
The range of results are based upon the assumption that you implement the
Strategic or Custom Allocation and continue with the savings and/or spending
patterns you have indicated. These potential outcomes are also based upon
the forward looking Strategic Capital Market Assumptions and the Historical
Based Planning Assumptions discussed in the Disclosures. These results are
intended to provide you with an opportunity to evaluate your Recommended
Investment Plan, including your asset allocation.
Envision stress tests your Recommended Investment Plan with 1,000
simulations. The above table represents various scenarios from the Best to the
Worst case for this investment plan.
+Target Percentile represents the last trial that simulates the achievement of
the plan's stated goals.
05/01/2013
•
The Best case scenario indicates that in 5% of the simulations the
investment plan achieved at least the corresponding Ending Plan
Wealth.
•
The Median case scenario indicates that in 50% of the simulations
the investment plan achieved at least the corresponding Ending
Plan Wealth.
•
The Worst case scenario indicates that in 95% of the simulations
the investment plan achieved at least the corresponding Ending
Plan Wealth.
•
The Target case scenario indicates that in 81% of the simulations
the investment plan achieved at least the corresponding Ending
Plan Wealth.
+
There is no guarantee these results will be achieved. The At Death column
is based on either your life expectancy using standard mortality tables, or an
alternative age you have indicated. Please be sure to inform us of changes to
your goals, savings and spending patterns so we can incorporate changes into
your Recommended Investment Plan.
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
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Growth Detail Graph
Results shown in Actual dollars
$138,000,000
$115,000,000
Investments
$92,000,000
$69,000,000
$46,000,000
$23,000,000
$0
52
55
58
61
64
67
70
73
76
79
82
85
88
91
94
97
Age (Susan Taylor)
Using Monte Carlo simulation, Envision simulates one thousand different potential outcomes over a lifetime of investing. This graph reflects the range of results of
the simulated trials based on your Recommended Investment Plan. It graphically displays every tenth trial, (from the 5th through the 95th), and also identifies which
"target" trial simulated the minimum ending value needed for the plan to achieve its stated goals. While this diagram depicts a wide range of possible outcomes,
there is no assurance that your actual investment plan will fall within this range using the Strategic Capital Market Assumptions for 10 years (representative of a one
to two business cycle time period) and Historical Based Planning Assumptions for additional years within the plan.
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
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Growth Detail Percentile Rankings
Results shown in Actual dollars
05/01/2013
Percentile
Ending Value
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
$463,252,566
$195,340,141
$166,029,778
$150,530,659
$139,520,775
$129,921,160
$115,610,486
$108,669,955
$102,509,048
$93,532,746
$88,465,512
$84,777,815
$80,686,374
$77,471,362
$75,178,865
$72,671,514
$70,677,274
$66,267,638
$64,339,918
$62,469,709
$60,449,317
$58,290,685
$55,561,034
$53,321,629
$51,253,535
$49,634,501
$48,165,916
$46,687,331
$45,316,701
$44,500,538
$43,614,058
$41,861,276
$40,047,939
$38,911,687
Age (Susan)
Investment Assets
are Depleted
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Average Annual
Simulated Return
15.48%
13.46%
13.09%
12.50%
12.11%
12.77%
11.93%
11.90%
11.57%
11.70%
11.61%
10.98%
10.71%
10.76%
10.57%
10.59%
11.97%
10.28%
10.96%
10.17%
10.27%
10.21%
9.98%
10.33%
10.33%
9.95%
9.72%
9.57%
9.87%
10.44%
9.86%
10.72%
9.44%
9.45%
Page 64 of 108
This is a Preliminary Report
Envision
®
05/01/2013
Jim Taylor & Susan Taylor
Percentile
Ending Value
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
$38,169,005
$37,741,705
$36,816,306
$35,673,713
$34,892,961
$34,173,111
$33,368,204
$32,722,299
$32,014,407
$31,305,591
$29,765,211
$29,009,697
$27,591,129
$26,864,386
$25,679,120
$25,039,670
$24,164,535
$23,690,639
$22,945,035
$22,046,715
$21,102,378
$20,556,840
$19,958,457
$19,582,597
$18,782,647
$17,832,847
$17,264,188
$16,545,643
$15,829,990
$15,367,930
$14,607,421
$13,547,268
$13,062,951
$12,456,845
$11,498,087
$10,930,062
$10,477,064
Age (Susan)
Investment Assets
are Depleted
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Average Annual
Simulated Return
9.26%
9.15%
11.81%
9.57%
9.10%
9.06%
10.72%
9.16%
9.24%
9.47%
8.77%
8.38%
9.23%
10.88%
8.83%
8.59%
8.93%
8.09%
8.27%
7.97%
8.45%
8.44%
9.38%
8.94%
9.13%
8.22%
8.07%
8.63%
7.73%
8.87%
9.10%
8.20%
8.28%
8.40%
7.79%
8.06%
7.32%
Page 65 of 108
This is a Preliminary Report
Envision
®
Jim Taylor & Susan Taylor
Average Annual
Simulated Return
Ending Value
71
72
73
74
75
76
77
78
79
80
$9,553,092
$8,965,702
$8,310,405
$6,870,298
$6,025,405
$5,256,050
$4,617,690
$3,868,992
$2,690,408
$1,824,345
7.24%
7.63%
7.36%
7.90%
6.09%
7.69%
6.77%
8.09%
7.63%
6.06%
$1,001,078
8.74%
Target
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
+
Age (Susan)
Investment Assets
are Depleted
Percentile
+
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
95
94
92
90
89
88
87
86
85
84
82
81
80
79
78
77
76
74
70
6.39%
7.39%
7.74%
8.27%
7.58%
5.10%
8.13%
9.21%
7.55%
6.50%
5.31%
6.68%
6.24%
6.70%
5.39%
4.85%
9.14%
5.51%
5.91%
Target Percentile represents the last trial that simulates the achievement of the plan's stated goals.
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Page 66 of 108
This is a Preliminary Report
Envision
®
Jim Taylor & Susan Taylor
The Percentile Rankings is a table representation of the Growth Detail Chart. It displays one hundred and one of the one thousand Monte Carlo simulations.
Percentile column displays every tenth trial from the highest ending value to the lowest ending value.
Ending Value for each Percentile is the corresponding ending investment value.
Age Investment Assets are Depleted is the age of the longest surviving client when the assets first drop below zero and never return to a positive balance.
Average Annual Simulated Return is based on the simulations associated with a specific Percentile, and represents the average return the simulation displayed
for that trial.
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Page 67 of 108
This is a Preliminary Report
Envision
®
Jim Taylor & Susan Taylor
Total Investment Plan Target Values - Recommended Investment Plan
Results shown in Actual Dollars
Year
Jim's Age
Susan's Age
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
05/01/2013
Net Need/
Surplus($)
75,000
31,488
30,703
29,833
16,951
71,185
72,406
73,646
- 356,677
- 202,240
- 86,316
- 88,905
- 91,572
- 94,320
- 97,149
- 188,924
- 194,592
- 200,429
- 206,442
- 212,636
- 219,015
- 225,585
- 232,353
- 239,323
- 246,503
- 253,898
- 261,515
- 269,360
- 277,441
- 285,764
- 294,337
Gain/
Loss($)
201,303
382,845
349,956
- 348,982
50,723
36,902
- 368,043
- 67,313
145,967
- 241,004
525,673
384,253
790,778
363,278
- 30,511
321,293
95,248
461,880
- 276,015
128,970
- 42,295
663,048
719,659
817,521
- 218,606
1,603,464
655,336
70,806
199,775
74,178
721,559
Taxes($)
- 53,910
- 11,872
- 11,203
- 3,303
- 3,117
- 3,342
- 3,551
- 5,711
- 12,993
- 68,830
- 42,202
- 43,468
- 44,772
- 46,115
- 47,499
- 76,911
- 79,218
- 81,595
- 84,042
- 86,564
- 89,161
- 91,835
- 94,590
- 97,428
- 100,351
- 103,362
- 106,462
- 109,656
- 112,946
- 116,334
- 119,824
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Ending Goal
Value($)
2,472,393
2,874,853
3,244,309
2,921,857
2,986,415
3,091,160
2,791,971
2,792,593
2,568,890
2,056,817
2,453,973
2,705,853
3,360,287
3,583,130
3,407,972
3,463,430
3,284,868
3,464,724
2,898,224
2,727,995
2,377,525
2,723,152
3,115,869
3,596,639
3,031,179
4,277,383
4,564,742
4,256,531
4,065,919
3,737,998
4,045,395
Page 68 of 108
This is a Preliminary Report
Envision
®
Jim Taylor & Susan Taylor
Year
Jim's Age
Susan's Age
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
83
84
85
86
87
88
89
90
91
92
93
94
95
83
84
85
86
87
88
89
90
91
92
93
94
95
Net Need/
Surplus($)
- 303,168
- 312,263
- 321,630
- 331,279
- 341,218
- 351,454
- 361,998
- 372,858
- 384,044
- 295,565
- 454,839
- 468,484
- 482,539
Gain/
Loss($)
177,130
- 38,565
732,249
103,014
- 27,227
575,275
470,117
639,938
76,710
894,925
- 90,821
135,507
99,009
Taxes($)
- 123,419
- 127,122
- 130,935
- 134,863
- 138,909
- 143,077
- 147,369
- 151,790
- 156,344
- 109,544
- 209,282
- 215,560
- 222,027
Ending Goal
Value($)
3,795,939
3,317,989
3,597,672
3,234,544
2,727,189
2,807,934
2,768,684
2,883,974
2,420,297
2,910,113
2,155,172
1,606,634
1,001,078
Total Investment Plan Target Values reflect the possible cash flow elements of your Recommended Investment Plan. This is based upon information you provided, tax assumptions, and the simulation results. Because this information is subject to change,
your actual cash flows and results will differ. You should periodically review this information with your Financial Advisor and discuss any changes to your goals and personal situation in order to keep your Recommended Investment Plan up-to-date.
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Page 69 of 108
This is a Preliminary Report
Envision
®
Jim Taylor & Susan Taylor
Target Investment Plan Tax Treatment - Recommended Investment Plan
Results shown in Actual Dollars
Year
Jim's Age
Susan's
Age
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
05/01/2013
Ending
Goal
Value($)
2,472,393
2,874,853
3,244,309
2,921,857
2,986,415
3,091,160
2,791,971
2,792,593
2,568,890
2,056,817
2,453,973
2,705,853
3,360,287
3,583,130
3,407,972
3,463,430
3,284,868
3,464,724
2,898,224
2,727,995
2,377,525
2,723,152
3,115,869
3,596,639
3,031,179
4,277,383
4,564,742
4,256,531
4,065,919
3,737,998
4,045,395
Taxable
Assets($)
238,457
283,509
326,818
308,359
330,595
351,339
325,956
394,717
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Tax
Tax Advantaged
Advantaged
Education($)
Assets($)*
2,233,936
272,367
2,591,344
269,380
2,917,491
254,525
2,613,498
176,880
2,655,819
114,999
2,739,821
103,844
2,466,015
78,213
2,397,876
0
2,568,890
0
2,056,817
0
2,453,973
0
2,705,853
0
3,360,287
0
3,583,130
0
3,407,972
0
3,463,430
0
3,284,868
0
3,464,724
0
2,898,225
0
2,727,995
0
2,377,525
0
2,723,152
0
3,115,868
0
3,596,639
0
3,031,179
0
4,277,384
0
4,564,741
0
4,256,531
0
4,065,919
0
3,737,998
0
4,045,395
0
Net RMD($)
96,259
84,898
83,292
75,899
89,297
104,406
123,466
109,830
156,422
172,757
168,733
168,810
163,388
Gain/
Loss($)
Taxes($)
Effective
Tax Rate%
201,303
382,845
349,956
- 348,982
50,723
36,902
- 368,043
- 67,313
145,967
- 241,004
525,673
384,253
790,778
363,278
- 30,511
321,293
95,248
461,880
- 276,015
128,970
- 42,295
663,048
719,659
817,521
- 218,606
1,603,464
655,336
70,806
199,775
74,178
721,559
- 53,910
- 11,872
- 11,203
- 3,303
- 3,117
- 3,342
- 3,551
- 5,711
- 12,993
- 68,830
- 42,202
- 43,468
- 44,772
- 46,115
- 47,499
- 76,911
- 79,218
- 81,595
- 84,042
- 86,564
- 89,161
- 91,835
- 94,590
- 97,428
- 100,351
- 103,362
- 106,462
- 109,656
- 112,946
- 116,334
- 119,824
25.41
23.19
23.13
22.54
22.51
22.53
22.54
22.74
23.40
25.39
25.39
25.39
25.39
25.39
25.39
25.39
25.39
25.39
25.39
25.39
25.39
25.39
25.39
25.39
25.39
25.39
25.39
25.39
25.39
25.39
25.39
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Net Cash
Flow($)
75,000
31,488
30,703
29,833
16,951
71,185
72,406
73,646
- 356,677
- 202,240
- 86,316
- 88,905
- 91,572
- 94,320
- 97,149
- 188,924
- 194,592
- 200,429
- 206,442
- 212,636
- 219,015
- 225,585
- 232,353
- 239,323
- 246,503
- 253,898
- 261,515
- 269,360
- 277,441
- 285,764
- 294,337
Page 70 of 108
This is a Preliminary Report
Envision
®
Jim Taylor & Susan Taylor
Year
Jim's Age
Susan's
Age
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
83
84
85
86
87
88
89
90
91
92
93
94
95
83
84
85
86
87
88
89
90
91
92
93
94
95
Ending
Goal
Value($)
3,795,939
3,317,989
3,597,672
3,234,544
2,727,189
2,807,934
2,768,684
2,883,974
2,420,297
2,910,113
2,155,172
1,606,634
1,001,078
Taxable
Assets($)
0
0
0
0
0
0
0
0
0
0
0
0
0
Tax
Tax Advantaged
Advantaged
Education($)
Assets($)*
3,795,939
0
3,317,989
0
3,597,672
0
3,234,544
0
2,727,189
0
2,807,933
0
2,768,684
0
2,883,975
0
2,420,297
0
2,910,114
0
2,155,172
0
1,606,634
0
1,001,078
0
Net RMD($)
Gain/
Loss($)
Taxes($)
Effective
Tax Rate%
184,007
182,204
168,521
190,120
181,202
163,510
177,161
183,740
200,774
181,025
215,597
171,732
137,900
177,130
- 38,565
732,249
103,014
- 27,227
575,275
470,117
639,938
76,710
894,925
- 90,821
135,507
99,009
- 123,419
- 127,122
- 130,935
- 134,863
- 138,909
- 143,077
- 147,369
- 151,790
- 156,344
- 109,544
- 209,282
- 215,560
- 222,027
25.39
25.39
25.39
25.39
25.39
25.39
25.39
25.39
25.39
22.92
29.37
29.37
29.37
Net Cash
Flow($)
- 303,168
- 312,263
- 321,630
- 331,279
- 341,218
- 351,454
- 361,998
- 372,858
- 384,044
- 295,565
- 454,839
- 468,484
- 482,539
*Tax Advantaged Assets are a sum of tax deferred, tax exempt and tax advantaged education assets.
Target Investment Plan Tax Treatment details cash flows and Ending Goal Values for your Recommended Investment Plan. This is based upon information you provided, tax assumptions, and the simulation results. Because this information is subject
to change, your actual cash flows and results will differ. Please note that these calculations are hypothetical and do not replace actual required minimum distribution calculations which should be made each year on an individualized basis. You should
periodically review this information with your Financial Advisor and discuss any changes to your goals and personal situation in order to keep your Recommended Investment Plan up-to-date.
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Page 71 of 108
This is a Preliminary Report
Envision
®
Jim Taylor & Susan Taylor
Target Taxable Investment Plan Value - Recommended Investment Plan
Results shown in Actual Dollars
Year
Jim's Age
Susan's Age
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
05/01/2013
Taxable
Assets($)
238,457
283,509
326,818
308,359
330,595
351,339
325,956
394,717
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
Non-Qualified
Assets($)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Portfolio
Income($)
6,734
6,424
7,637
8,804
8,307
8,906
9,464
8,781
10,633
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
Appreciation($)
Taxes($)
15,633
30,501
26,874
- 43,959
- 2,954
- 4,820
- 51,296
- 16,639
9,999
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
- 53,910
- 11,872
- 11,203
- 3,303
- 3,117
- 3,342
- 3,551
- 3,295
- 3,990
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
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Net Cash
Flow($)
20,000
20,000
20,000
20,000
20,000
20,000
20,000
79,914
- 411,359
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Page 72 of 108
This is a Preliminary Report
Envision
®
Jim Taylor & Susan Taylor
Year
Jim's Age
Susan's Age
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
86
87
88
89
90
91
92
93
94
95
86
87
88
89
90
91
92
93
94
95
Taxable
Assets($)
0
0
0
0
0
0
0
0
0
0
Non-Qualified
Assets($)
0
0
0
0
0
0
0
0
0
0
Portfolio
Income($)
0
0
0
0
0
0
0
0
0
0
Appreciation($)
Taxes($)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Net Cash
Flow($)
0
0
0
0
0
0
0
0
0
0
Taxable Investment Plan Values details the gain/loss components (yield and appreciation) of your taxable assets, as well as, assumed income taxes for your Recommended Investment Plan. This is based upon information you provided, tax assumptions,
and the simulation results. Because this information is subject to change, your actual cash flows and results will differ. You should periodically review this information with your Financial Advisor and discuss any changes to your goals and personal
situation in order to keep your Recommended Investment Plan up-to-date.
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Page 73 of 108
This is a Preliminary Report
Envision
®
Jim Taylor & Susan Taylor
Target Tax Advantaged Investment Plan Values - Recommended Investment Plan
Results shown in Actual Dollars
Year
Jim's Age
Susan's Tax Advantaged Tax Deferred
Age
Assets($)*
Assets($)
Tax Exempt Tax Advantaged
Assets($)
Education($)
Gross Portfolio
Appreciation ($)
RMD($) Income($)
Taxes($)
2013
2014
2015
2016
2017
2018
2019
2020
2021
52
53
54
55
56
57
58
59
60
52
53
54
55
56
57
58
59
60
2,233,936
2,591,344
2,917,491
2,613,498
2,655,819
2,739,821
2,466,015
2,397,876
2,568,890
1,961,569
2,321,964
2,662,966
2,436,618
2,540,820
2,635,977
2,387,802
2,397,876
2,568,890
0
0
0
0
0
0
0
0
0
272,367
269,380
254,525
176,880
114,999
103,844
78,213
0
0
53,875
60,178
69,806
78,591
70,403
71,543
73,805
66,429
64,594
125,061
285,742
245,639
- 392,418
- 25,032
- 38,726
- 400,016
- 125,884
60,741
0
0
0
0
0
0
0
- 2,416
- 9,003
2022
61
61
2,056,817
2,056,817
0
0
69,201
- 310,204
- 68,830
2023
2024
2025
2026
2027
62
63
64
65
66
62
63
64
65
66
2,453,973
2,705,853
3,360,287
3,583,130
3,407,972
2,453,973
2,705,853
3,360,287
3,583,130
3,407,972
0
0
0
0
0
0
0
0
0
0
70,117
83,656
92,243
114,552
122,149
455,556
300,597
698,536
248,725
- 152,660
- 42,202
- 43,468
- 44,772
- 46,115
- 47,499
2028
67
67
3,463,430
3,463,430
0
0
116,178
205,115
- 76,911
2029
68
68
3,284,868
3,284,868
0
0
118,068
- 22,820
- 79,218
2030
69
69
3,464,724
3,464,724
0
0
111,981
349,899
- 81,595
2031
70
70
2,898,225
2,898,225
0
0
- 126,450
118,113
- 394,127
- 84,042
2032
71
71
2,727,995
2,727,995
0
0
- 109,367
98,801
30,169
- 86,563
2033
72
72
2,377,525
2,377,525
0
0
- 106,562
92,997
- 135,292
- 89,160
2034
73
73
2,723,152
2,723,152
0
0
- 96,256
81,049
581,998
- 91,835
2035
74
74
3,115,868
3,115,868
0
0
- 114,418
92,832
626,828
- 94,590
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Net
Cash
Flow($)
55,000
11,488
10,704
9,833
- 3,049
51,184
52,406
- 6,268
54,682
202,240
- 86,316
- 88,906
- 91,572
- 94,319
- 97,150
188,924
194,592
200,429
206,442
212,636
219,014
225,585
232,353
Page 74 of 108
This is a Preliminary Report
Envision
Year
®
Jim Taylor & Susan Taylor
Jim's Age
Susan's Tax Advantaged Tax Deferred
Age
Assets($)*
Assets($)
Tax Exempt Tax Advantaged
Assets($)
Education($)
Gross Portfolio
Appreciation ($)
RMD($) Income($)
Taxes($)
2036
75
75
3,596,639
3,596,639
0
0
- 136,064
106,220
711,301
- 97,428
2037
76
76
3,031,179
3,031,179
0
0
- 163,484
122,610
- 341,215
- 100,351
2038
77
77
4,277,384
4,277,384
0
0
- 142,980
103,333
1,500,131
- 103,362
2039
78
78
4,564,741
4,564,741
0
0
- 210,709
145,816
509,520
- 106,462
2040
79
79
4,256,531
4,256,531
0
0
- 234,089
155,612
- 84,806
- 109,657
2041
80
80
4,065,919
4,065,919
0
0
- 227,622
145,105
54,670
- 112,946
2042
81
81
3,737,998
3,737,998
0
0
- 227,146
138,607
- 64,430
- 116,335
2043
82
82
4,045,395
4,045,395
0
0
- 218,596
127,429
594,130
- 119,825
2044
83
83
3,795,939
3,795,939
0
0
- 248,184
137,907
39,223
- 123,419
2045
84
84
3,317,989
3,317,989
0
0
- 244,899
129,404
- 167,969
- 127,121
2046
85
85
3,597,672
3,597,672
0
0
- 224,188
113,111
619,139
- 130,935
2047
86
86
3,234,544
3,234,544
0
0
- 255,154
122,645
- 19,631
- 134,864
2048
87
87
2,727,189
2,727,189
0
0
- 241,384
110,266
- 137,493
- 138,909
2049
88
88
2,807,933
2,807,933
0
0
- 214,739
92,970
482,305
- 143,077
2050
89
89
2,768,684
2,768,684
0
0
- 233,994
95,722
374,395
- 147,369
2051
90
90
2,883,975
2,883,975
0
0
- 242,867
94,385
545,554
- 151,790
2052
91
91
2,420,297
2,420,297
0
0
- 267,035
98,315
- 21,604
- 156,344
2053
92
92
2,910,114
2,910,114
0
0
- 237,284
82,508
812,417
- 109,543
2054
93
93
2,155,172
2,155,172
0
0
- 303,137
99,206
- 190,027
- 209,282
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Net
Cash
Flow($)
239,323
246,503
253,898
261,515
269,361
277,441
285,764
294,338
303,167
312,263
321,631
331,280
341,218
351,455
361,998
372,857
384,043
295,565
454,839
Page 75 of 108
This is a Preliminary Report
Envision
Year
®
Jim Taylor & Susan Taylor
Jim's Age
Susan's Tax Advantaged Tax Deferred
Age
Assets($)*
Assets($)
Tax Exempt Tax Advantaged
Assets($)
Education($)
Gross Portfolio
Appreciation ($)
RMD($) Income($)
Taxes($)
2055
94
94
1,606,634
1,606,634
0
0
- 236,832
73,470
62,037
- 215,560
2056
95
95
1,001,078
1,001,078
0
0
- 186,818
54,770
44,240
- 222,027
Net
Cash
Flow($)
468,484
482,539
*Tax Advantaged Assets are a sum of tax deferred, tax exempt and tax advantaged education assets.
Tax Advantaged Investment Plan Values details the gain/loss components (yield and appreciation) of your tax advantaged assets, as well as, assumed income taxes from your Recommended Investment Plan. This is based upon information you
provided, tax assumptions, and the simulation results. Because this information is subject to change, your actual cash flows and results will differ. Please note that these calculations are hypothetical and do not replace actual required minimum
distribution calculations which should be made each year on an individualized basis. You should periodically review this information with your Financial Advisor and discuss any changes to your goals and personal situation in order to keep your
Recommended Investment Plan up-to-date.
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Page 76 of 108
This is a Preliminary Report
Envision
®
Jim Taylor & Susan Taylor
Summary of Cash Flows - Chart - Recommended Investment Plan
Results shown in Actual Dollars
$400,000
$300,000
$200,000
$100,000
$0
($100,000)
($200,000)
($300,000)
($400,000)
($500,000)
($600,000)
52/52
57/57
62/62
67/67
72/72
77/77
82/82
87/87
92/92
Age (Jim / Susan)
Contributions and Income Sources
05/01/2013
Withdrawals and Ret. Income Need
Net Surplus/Need
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Page 77 of 108
This is a Preliminary Report
Envision
®
Jim Taylor & Susan Taylor
Summary of Cash Flows - Table - Recommended Investment Plan
Results shown in Actual Dollars
The following table displays the detail of all planned contributions, withdrawals and income used in calculating the Investment Plan Result within Envision. The Total
Need or Surplus is displayed in the last column. Need is reflected as a negative amount signifying necessary withdrawals from your investment assets. Surplus is
reflected as a positive value signifying excess funds that would be added to your investment assets.
2013
Jim's
Age
52
Susan's
Age
52
75,000
0
75,000
Withdrawals & Ret.
Income Need($)
0
2014
53
53
76,650
0
76,650
45,162
31,488
2015
54
54
78,350
0
78,350
47,646
30,704
2016
55
55
80,100
0
80,100
50,267
29,833
2017
56
56
81,903
0
81,903
64,952
16,951
2018
57
57
83,760
0
83,760
12,576
71,184
2019
58
58
85,673
0
85,673
13,267
72,406
2020
59
59
87,643
0
87,643
13,997
73,646
2021
60
60
89,673
0
89,673
446,350
- 356,677
2022
61
61
0
0
0
202,240
- 202,240
2023
62
62
0
121,991
121,991
208,307
- 86,316
2024
63
63
0
125,651
125,651
214,557
- 88,906
2025
64
64
0
129,420
129,420
220,993
- 91,573
2026
65
65
0
133,304
133,304
227,623
- 94,319
2027
66
66
0
137,302
137,302
234,452
- 97,150
2028
67
67
0
52,561
52,561
241,485
- 188,924
2029
68
68
0
54,137
54,137
248,730
- 194,593
2030
69
69
0
55,762
55,762
256,192
- 200,430
2031
70
70
0
57,435
57,435
263,877
- 206,442
2032
71
71
0
59,158
59,158
271,794
- 212,636
2033
72
72
0
60,932
60,932
279,948
- 219,016
2034
73
73
0
62,761
62,761
288,345
- 225,584
2035
74
74
0
64,643
64,643
296,996
- 232,353
Year
05/01/2013
Contributions($) Income Sources($)
Total($)
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Net($)
75,000
Page 78 of 108
This is a Preliminary Report
Envision
®
Jim Taylor & Susan Taylor
2036
Jim's
Age
75
Susan's
Age
75
0
66,582
66,582
Withdrawals & Ret.
Income Need($)
305,906
2037
76
76
0
68,580
68,580
315,083
- 246,503
2038
77
77
0
70,638
70,638
324,536
- 253,898
2039
78
78
0
72,757
72,757
334,272
- 261,515
2040
79
79
0
74,940
74,940
344,299
- 269,359
2041
80
80
0
77,188
77,188
354,629
- 277,441
2042
81
81
0
79,503
79,503
365,267
- 285,764
2043
82
82
0
81,888
81,888
376,226
- 294,338
2044
83
83
0
84,345
84,345
387,512
- 303,167
2045
84
84
0
86,875
86,875
399,138
- 312,263
2046
85
85
0
89,481
89,481
411,112
- 321,631
2047
86
86
0
92,166
92,166
423,446
- 331,280
2048
87
87
0
94,931
94,931
436,149
- 341,218
2049
88
88
0
97,779
97,779
449,233
- 351,454
2050
89
89
0
100,712
100,712
462,710
- 361,998
2051
90
90
0
103,734
103,734
476,592
- 372,858
2052
91
91
0
106,846
106,846
490,889
- 384,043
2053
92
92
0
210,051
210,051
505,616
- 295,565
2054
93
93
0
65,946
65,946
520,784
- 454,838
2055
94
94
0
67,924
67,924
536,407
- 468,483
2056
95
95
0
69,961
69,961
552,500
- 482,539
Year
Contributions($) Income Sources($)
Total($)
Net($)
- 239,324
Summary of Cash Flows reflects the contributions and withdrawals (expected inflows and outflows of funds) assumed for your Recommended Investment Plan. This is based upon information you provided. Because this information is likely to change over
time, your actual cash flow experience will differ. You should periodically review this information with your Financial Advisor and discuss any changes to your goals and personal situation in order to keep your Recommended Investment Plan up-to-date.
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Page 79 of 108
This is a Preliminary Report
Envision
®
Jim Taylor & Susan Taylor
Cash Flow Detail - Contributions - Recommended Investment Plan
Results shown in Actual Dollars
2013
Jim's
Age
52
Susan's
Age
52
2014
53
53
Jim 401K (Jim):41,200 Joint Savings (Joint):20,000 Susan 401K (Susan):15,450
2015
54
54
Jim 401K (Jim):42,436 Joint Savings (Joint):20,000 Susan 401K (Susan):15,914
2016
55
55
Jim 401K (Jim):43,709 Joint Savings (Joint):20,000 Susan 401K (Susan):16,391
2017
56
56
Jim 401K (Jim):45,020 Joint Savings (Joint):20,000 Susan 401K (Susan):16,883
2018
57
57
Jim 401K (Jim):46,371 Joint Savings (Joint):20,000 Susan 401K (Susan):17,389
2019
58
58
Jim 401K (Jim):47,762 Joint Savings (Joint):20,000 Susan 401K (Susan):17,911
2020
59
59
Jim 401K (Jim):49,195 Joint Savings (Joint):20,000 Susan 401K (Susan):18,448
2021
60
60
Jim 401K (Jim):50,671 Joint Savings (Joint):20,000 Susan 401K (Susan):19,002
2022
61
61
--
2023
62
62
--
2024
63
63
--
2025
64
64
--
2026
65
65
--
2027
66
66
--
2028
67
67
--
2029
68
68
--
2030
69
69
--
2031
70
70
--
2032
71
71
--
2033
72
72
--
2034
73
73
--
2035
74
74
--
2036
75
75
--
2037
76
76
--
Year
05/01/2013
Cash Flow Detail($)
Jim 401K (Jim):40,000 Joint Savings (Joint):20,000 Susan 401K (Susan):15,000
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Page 80 of 108
This is a Preliminary Report
Envision
®
Jim Taylor & Susan Taylor
Year
Jim's
Age
Susan's
Age
2038
77
77
--
2039
78
78
--
2040
79
79
--
2041
80
80
--
2042
81
81
--
2043
82
82
--
2044
83
83
--
2045
84
84
--
2046
85
85
--
2047
86
86
--
2048
87
87
--
2049
88
88
--
2050
89
89
--
2051
90
90
--
2052
91
91
--
2053
92
92
--
2054
93
93
--
2055
94
94
--
2056
95
95
--
Cash Flow Detail($)
Cash Flow Detail - Schedule of Contributions reflects cash flow elements of your Recommended Investment Plan. This is based upon information you provided. Because this information is likely to change over time, your actual cash flows will differ.
You should periodically review this information with your Financial Advisor and discuss any changes to your goals and personal situation in order to keep your Recommended Investment Plan up-to-date.
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Page 81 of 108
This is a Preliminary Report
Envision
®
Jim Taylor & Susan Taylor
Cash Flow Detail - Income from Other Sources - Recommended Investment Plan
Results shown in Actual Dollars
2013
Jim's
Age
52
Susan's
Age
52
2014
53
53
--
2015
54
54
--
2016
55
55
--
2017
56
56
--
2018
57
57
--
2019
58
58
--
2020
59
59
--
2021
60
60
--
2022
61
61
2023
62
62
2024
63
63
2025
64
64
2026
65
65
2027
66
66
2028
67
67
-Dental Practice Payout (Jim):81,601 Social Security (Jim):23,699
691
Dental Practice Payout (Jim):84,049 Social Security (Jim):24,410
192
Dental Practice Payout (Jim):86,570 Social Security (Jim):25,142
708
Dental Practice Payout (Jim):89,168 Social Security (Jim):25,897
239
Dental Practice Payout (Jim):91,843 Social Security (Jim):26,673
786
Social Security (Jim):30,840 Social Security (Susan):21,721
2029
68
68
Social Security (Jim):31,765 Social Security (Susan):22,372
2030
69
69
Social Security (Jim):32,718 Social Security (Susan):23,044
2031
70
70
Social Security (Jim):33,700 Social Security (Susan):23,735
2032
71
71
Social Security (Jim):34,711 Social Security (Susan):24,447
2033
72
72
Social Security (Jim):35,752 Social Security (Susan):25,180
2034
73
73
Social Security (Jim):36,825 Social Security (Susan):25,936
2035
74
74
Social Security (Jim):37,929 Social Security (Susan):26,714
Year
05/01/2013
Cash Flow Detail($)
--
Social Security (Susan):16,
Social Security (Susan):17,
Social Security (Susan):17,
Social Security (Susan):18,
Social Security (Susan):18,
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Page 82 of 108
This is a Preliminary Report
Envision
®
Jim Taylor & Susan Taylor
Year
Jim's
Age
Susan's
Age
2036
75
75
Social Security (Jim):39,067 Social Security (Susan):27,515
2037
76
76
Social Security (Jim):40,239 Social Security (Susan):28,341
2038
77
77
Social Security (Jim):41,447 Social Security (Susan):29,191
2039
78
78
Social Security (Jim):42,690 Social Security (Susan):30,067
2040
79
79
Social Security (Jim):43,971 Social Security (Susan):30,969
2041
80
80
Social Security (Jim):45,290 Social Security (Susan):31,898
2042
81
81
Social Security (Jim):46,648 Social Security (Susan):32,855
2043
82
82
Social Security (Jim):48,048 Social Security (Susan):33,840
2044
83
83
Social Security (Jim):49,489 Social Security (Susan):34,856
2045
84
84
Social Security (Jim):50,974 Social Security (Susan):35,901
2046
85
85
Social Security (Jim):52,503 Social Security (Susan):36,978
2047
86
86
Social Security (Jim):54,078 Social Security (Susan):38,088
2048
87
87
Social Security (Jim):55,701 Social Security (Susan):39,230
2049
88
88
Social Security (Jim):57,372 Social Security (Susan):40,407
2050
89
89
Social Security (Jim):59,093 Social Security (Susan):41,619
2051
90
90
Social Security (Jim):60,866 Social Security (Susan):42,868
2052
91
91
2053
92
92
Social Security (Jim):62,692 Social Security (Susan):44,154
Whole Life Policy (Jim):100,000 Social Security (Jim):64,572 Social Security (Susan):45,479
2054
93
93
Social Security (Susan):46,446 Social Security (Susan):19,500
2055
94
94
Social Security (Susan):47,839 Social Security (Susan):20,085
2056
95
95
Social Security (Susan):49,274 Social Security (Susan):20,687
Cash Flow Detail($)
Cash Flow Detail - Schedule of Income from Other Sources reflects cash flow elements of your Recommended Investment Plan. This is based upon information you provided and in some cases, estimates for Social Security. Because this information
is likely to change over time, your actual cash flows will differ. You should periodically review this information with your Financial Advisor and discuss any changes to your goals and personal situation in order to keep your Recommended Investment
Plan up-to-date.
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Page 83 of 108
This is a Preliminary Report
Envision
®
Jim Taylor & Susan Taylor
Cash Flow Detail - Withdrawals - Recommended Investment Plan
Results shown in Actual Dollars
Year
Jim's
Age
Susan's
Age
2013
52
52
--
2014
53
53
Education (John): 45,162
2015
54
54
Education (John): 47,646
2016
55
55
Education (John): 50,267
2017
56
56
Education (John): 53,032
2018
57
57
Education (Sara): 12,576
2019
58
58
Education (Sara): 13,267
2020
59
59
Education (Sara): 13,997
2021
60
60
Purchase RV (Jim): 250,000
2022
61
61
Post Retirement Travel (Jim): 19,572
Retirement Goal (Joint): 182,668
2023
62
62
Post Retirement Travel (Jim): 20,159
Retirement Goal (Joint): 188,148
2024
63
63
Post Retirement Travel (Jim): 20,764
Retirement Goal (Joint): 193,793
2025
64
64
Post Retirement Travel (Jim): 21,386
Retirement Goal (Joint): 199,607
2026
65
65
Post Retirement Travel (Jim): 22,028
Retirement Goal (Joint): 205,595
2027
66
66
Post Retirement Travel (Jim): 22,689
Retirement Goal (Joint): 211,763
2028
67
67
Post Retirement Travel (Jim): 23,370
Retirement Goal (Joint): 218,115
2029
68
68
Post Retirement Travel (Jim): 24,071
Retirement Goal (Joint): 224,659
2030
69
69
Post Retirement Travel (Jim): 24,793
Retirement Goal (Joint): 231,399
2031
70
70
Post Retirement Travel (Jim): 25,536
Retirement Goal (Joint): 238,341
2032
71
71
Post Retirement Travel (Jim): 26,303
Retirement Goal (Joint): 245,491
05/01/2013
Cash Flow Detail($)
Education (Sara): 11,920
Post Retirement Travel (Jim): 19,002
Retirement Goal (Joint): 177,348
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Jim Taylor & Susan Taylor
Year
Jim's
Age
Susan's
Age
2033
72
72
Post Retirement Travel (Jim): 27,092
Retirement Goal (Joint): 252,856
2034
73
73
Post Retirement Travel (Jim): 27,904
Retirement Goal (Joint): 260,441
2035
74
74
Post Retirement Travel (Jim): 28,742
Retirement Goal (Joint): 268,254
2036
75
75
Post Retirement Travel (Jim): 29,604
Retirement Goal (Joint): 276,302
2037
76
76
Post Retirement Travel (Jim): 30,492
Retirement Goal (Joint): 284,591
2038
77
77
Post Retirement Travel (Jim): 31,407
Retirement Goal (Joint): 293,129
2039
78
78
Post Retirement Travel (Jim): 32,349
Retirement Goal (Joint): 301,923
2040
79
79
Post Retirement Travel (Jim): 33,319
Retirement Goal (Joint): 310,980
2041
80
80
Post Retirement Travel (Jim): 34,319
Retirement Goal (Joint): 320,310
2042
81
81
Post Retirement Travel (Jim): 35,348
Retirement Goal (Joint): 329,919
2043
82
82
Post Retirement Travel (Jim): 36,409
Retirement Goal (Joint): 339,817
2044
83
83
Post Retirement Travel (Jim): 37,501
Retirement Goal (Joint): 350,011
2045
84
84
Post Retirement Travel (Jim): 38,626
Retirement Goal (Joint): 360,512
2046
85
85
Post Retirement Travel (Jim): 39,785
Retirement Goal (Joint): 371,327
2047
86
86
Post Retirement Travel (Jim): 40,979
Retirement Goal (Joint): 382,467
2048
87
87
Post Retirement Travel (Jim): 42,208
Retirement Goal (Joint): 393,941
2049
88
88
Post Retirement Travel (Jim): 43,474
Retirement Goal (Joint): 405,759
2050
89
89
Post Retirement Travel (Jim): 44,778
Retirement Goal (Joint): 417,932
2051
90
90
Post Retirement Travel (Jim): 46,122
Retirement Goal (Joint): 430,470
2052
91
91
Post Retirement Travel (Jim): 47,505
Retirement Goal (Joint): 443,384
2053
92
92
Post Retirement Travel (Jim): 48,931
Retirement Goal (Joint): 456,685
2054
93
93
Post Retirement Travel (Jim): 50,398
Retirement Goal (Joint): 470,386
05/01/2013
Cash Flow Detail($)
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Jim Taylor & Susan Taylor
Year
Jim's
Age
Susan's
Age
2055
94
94
Post Retirement Travel (Jim): 51,910
Retirement Goal (Joint): 484,497
2056
95
95
Post Retirement Travel (Jim): 53,468
Retirement Goal (Joint): 499,032
Cash Flow Detail($)
Cash Flow Detail - Schedule of Withdrawals reflects cash flow elements of your Recommended Investment Plan. This is based upon information you provided. Because this information is likely to change over time, your actual cash flows will differ. You
should periodically review this information with your Financial Advisor and discuss any changes to your goals and personal situation in order to keep your Recommended Investment Plan up-to-date.
05/01/2013
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Jim Taylor & Susan Taylor
Investment Plan Assumptions
Tax Assumptions
Description
Filing State
Filing Status
Pre-Retirement Tax Rates Post-Retirement Tax Rates
Delaware
Delaware
Joint
Joint
Investment Assumptions
Description
Percentage of Capital Gains Long Term
Yearly Asset Turnover Rate
Rates
50.00%
100.00%
Life Expectancy Assumptions
Description
Life Expectancy - Jim Taylor
Life Expectancy - Susan Taylor
Age
92
95
Other Assumptions
Description
General Default Inflation Rate
Estate Inflation Rate
Rates
3.00%
0.00%
Prior to the start of retirement, all Income Sources and Social Security will be used toward normal living expenses and will be used for tax purposes only.
Tax rates for each year in the plan are estimated using the federal and state tax schedules as of January 2013, less estimated standard tax deductions. This plan assumes a 20% rate for long
term capital gains. Additionally, federal or state tax deductions for dependents have not been applied. For estimated tax calculations, unused capital losses are offset against future capital
gains. Each year in each simulation may have a unique tax rate associated with it due to the variability of returns and cash flows. Break points for the tax schedules are inflated at 3% per year.
Due to the complicated nature of planning and calculating federal and state income tax rates, the rates and assumptions are estimates. Your actual situation will differ from these assumptions.
This analysis does not constitute tax or legal advice. Please consult with your tax professional and attorney for legal and tax advice.
* Cash flows are inflated once per year on the anniversary of the investment plan’s creation date. The inflating of cash flows is necessary to keep goals, savings, income sources, etc. up to date with their specified inflation rates.
05/01/2013
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Jim Taylor & Susan Taylor
Disclosures
IMPORTANT: The projections or other information generated by Envision
regarding the likelihood of various investment outcomes are hypothetical in
nature, do not reflect actual investment results and are not guarantees of future
results. Results may vary with each use and over time.
suggests that your investment plan had a reasonable chance of success in the simulations. In
fact, at the 75th percentile level, in 250 of the 1,000 simulations, you would have failed to achieve
your financial goals. In some instances, simulations for your Acceptable Investment Plan may not
provide a Investment Plan Result in the Target Zone.
Envision Methodology
Based on accepted statistical methods, Envision uses a simulation model
to test your Ideal, Acceptable and Recommended Investment Plans. The
simulation model uses assumptions about inflation and financial market
returns. Envision uses two sets of data, Strategic Capital Market Assumptions
for 10 years (representative of a one to two business cycle time period) and
Historical Based Planning Assumptions for additional years within the plan
(see Strategic Capital Market Assumptions and Historical Based Planning
Assumptions disclosures for more information). Using Monte Carlo simulation
Envision simulates 1,000 different potential outcomes over a lifetime of
investing varying historical risk, return, and correlation amongst the assets.
Some of these scenarios will assume strong financial market returns, similar
to the best periods of history for investors. Others will be similar to the worst
periods in investing history. Most scenarios will fall somewhere in between.
Securities are grouped in classes based on shared characteristics, such as maturity for bonds and
size of the corporation for stocks. The mix of classes best suited for an investor will depend on
his or her individual investment goals and tolerance for risk. It is generally understood that as an
investor takes more risk, he or she can seek a higher rate of return over time.
THE ENVISION PROCESS IS NOT FINANCIAL PLANNING
The Envision process helps you and your Financial Advisor clearly
understand your personal values and goals. You and your Financial
Advisor can then design a unique investment strategy suited to
your goals and financial situation. Unlike financial planning, however,
Envision does not include advanced wealth planning strategies such as
estate and tax planning. It also does not include detailed cash flow, real
estate or business analyses.
Envision Investment Plan Result Interpretation and Assumptions
The simulated investment returns are combined with your unique financial inflows (savings) and
outflows (spending goals). The end result is a statistical assessment expressed as a number
referred to as the Investment Plan Result. An Investment Plan Result of 83, for example, means
that in 830 of the 1,000 scenarios you would have successfully achieved all of your goals. It
is important to note that the Investment Plan Result reflects the assumption that your
assets are invested according to your Strategic (or Custom) allocation. It also reflects the
assumption that you continue with the savings and spending patterns you have indicated
and which are incorporated into your Recommended Investment Plan. However, there is
no guarantee that these results will be achieved.
You should not base your retirement or spending decisions solely on Envision investment
plan results.
Envision Analysis - The Target Zone
Your Envision analysis may suggest that your investment plan may have had a relatively high
likelihood of meeting your goals. This concept of having a relatively high likelihood is referred to
as the Target Zone. The Target Zone is the range between the 75th and 90th percentile results.
This means that between 750 and 900 of the 1,000 simulations resulted in successfully achieving
the goals of the investment plan. An Investment Plan Result that falls within this Target Zone
05/01/2013
Asset Class Assumptions
Asset Classification for mutual funds, variable annuities and exchange-traded funds are derived
from Morningstar Categories. Underlying holdings classification provided by Morningstar. ©2013
Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to
Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not
warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are
responsible for any damages or losses arising from any use of this information.
Asset Class Assumptions - Risk
Risk calculations are used to estimate how asset classes and combinations of classes may
respond during negative market environments. The downside risk calculation represents a loss
that is unlikely to be exceeded in 19 out of 20 years. However, there is a 1 in 20 risk (5% probability)
that the loss over a one-year period could be greater than the downside risk calculation. Risk and
return figures are derived from standard investment industry statistical calculations. These are for
comparative purposes and not designed to predict actual performance. This is not the maximum
loss your portfolio could experience.
Asset Class Assumptions - Portfolio Implementation
As outlined above, it is assumed that the implemented portfolio matches the recommended
allocation model. In actuality, the implemented portfolio may or may not match the risk and return
characteristics of the recommended model over time due to security selection, inability to invest
in the indices, and other factors. Also, there is no guarantee that portfolios will not exceed the risk
tolerance range or that historically derived results will be achieved in the future. Returns have not
been reduced by sales charges or expenses typically associated with various types of investments.
Your actual investment performance may be higher or lower than that of the asset class to which it
was assigned. Our assumptions about risks and returns for individual asset classes are combined
with assumptions about the relationships between these returns (their correlation). Asset allocation
cannot eliminate the risk of fluctuating prices and uncertain returns. We use our best efforts to
correctly classify investments. However, no warranty of accuracy is made.
Equity Investments:
Equity investments refer to buying stocks of United States companies.
The investment return to the owner of stock (shareholder) is in the form of dividends and/or capital
appreciation. The market capitalization of companies is used to group large, medium (Mid), and
small companies. Shareholders share in both the upside potential and the downside risk.
Capitalization:
Market capitalization definitions differ but one example of capitalization
methodology is that of Morningstar, which defines "large-capitalization" stocks as those stocks that
form the top 70% of the market capitalization of the stocks eligible to be included in the Morningstar
US Market Index (a diversified broad market index that represents approximately 97% of the
market capitalization of publicly traded U.S. Stocks). The Morningstar index methodology defines
"mid-capitalization" stocks as those stocks that form the 20% of market capitalization between
the 70th and 90th percentile of the market capitalization and "small-capitalization" stocks as those
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
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Jim Taylor & Susan Taylor
stocks that form the 7% of market capitalization between the 90th and 97th percentile of the market
capitalization of the stocks eligible to be included in the Morningstar US Market Index.
Style: Blend (sometimes referred to as Core) investing is generally characterized as a strategy
that seeks to balance the portfolio of stocks between the Growth and Value styles as market
conditions fluctuate. Stocks in the underlying index are designated as "growth" as they are issued
by companies that typically have higher than average historical and forecasted earnings, sales,
equity and cash flow growth. Stocks in the underlying index are weighted according to the total
number of shares that are publicly owned and available for trading. Stocks in the underlying
index are designated as "value" as they are issued by companies that typically have relatively low
valuations based on price-to-earnings, price-to book value, price-to-sales, price-to-cash flow and
dividend yields. The stocks in the underlying index are weighted according to the total number of
shares that are publicly owned and available for trading.
Fixed Income Securities (Bonds) :
Bonds are promissory notes of a United States
corporation or federal government entity (taxable bonds) or a state or local government entity
(tax-exempt or municipal bonds). Bonds usually make a series of interest payments followed by
a return of principal at maturity. If sold prior to maturity, the price that can be obtained for a bond
may be more or less than face value, depending on interest rates at the time the bond is sold and
the remaining term of the bond.
Fixed income securities include Treasuries (i.e., public obligations of the U.S. Treasury that have
remaining maturities of more than one year), Government-Related issues (i.e., agency, sovereign,
supranational, and local authority debt), and Corporate Bonds.
Term: Short-term Bonds have effective maturities of six years or less, intermediate bonds have
effective maturities between six and twelve years; and long-term bonds have maturities of twelve
years or longer.
Income from tax exempt bonds is generally free from federal and state taxes for residents of the
issuing state. While the interest income is tax-free, capital gains if any are subject to taxes. Income
of certain tax-exempt bonds may be subject to the Federal Alternative Minimum Tax (AMT).
Alternative Income:
Distinct from traditional Fixed Income is the Alternative Income
category, which includes Hi-Yield Debt, Emerging Markets Debt, and REITs. Such investments
offer greater income potential, but also higher levels of risk than traditional forms of debt.
High Yield Debt: High Yield Bonds are promissory notes of a corporation or government entity
that are considered to be below investment grade by bond rating services. The characterization
of a high yield bond reflects the creditworthiness of the issuer and potential concerns that interest
payments and return of principal may not be made as promised. High yield bonds may have
maturities of various lengths.
Emerging Markets Debt: Emerging Markets Debt is comprised of external debt instruments
in the developing markets. These instruments may be denominated in United States dollars
or in external currencies. A large portion of the emerging market debt is issued by Argentina,
Brazil, Bulgaria, Columbia, Ecuador, Egypt, Mexico, Morocco, Nigeria, Panama, Peru, Philippines,
Poland, Russia, South Africa, Turkey, Ukraine and Venezuela.
Real Estate Investment Trust (REIT):
A REIT combines the capital of many investors
to either acquire or provide financing for real estate.
REIT Equity:
An equity REIT usually assumes ownership status in the property in which
it invests, enabling its investors to earn dividends on rental income from the property and
appreciation in property sale. Equity REITs are characterized as equities or alternative income,
due to their unique qualities.
REIT Mortgage: A mortgage REIT usually invests in loans and mortgages secured by real
estate and derives its income from mortgage interest and fees. Some mortgage REITs also borrow
money from the banks and re-lend it at higher interest rates.
There are special risks associated with an investment in real estate, including credit risk, interest
rate fluctuations and the impact of changing economic conditions.
Cash Alternatives:
amount of both equity and fixed income investments, or some other combination of classes.
Cash Alternatives include liquid, short term and interest bearing
investments. Examples are money market funds, Treasury bills and commercial paper. It is
possible to lose money by investing in cash alternatives.
International Investments: International investments include any type of investment made
Alternative Investments:
Multi-Class: This category is primarily used to classify investments that include a substantial
in financially established markets outside of the United States. Various securities can be used
to invest in international markets, including but not limited to fixed income securities, American
Depository Receipts (ADRs), equities and funds.
Alternative Investments encompass a range of processes to
provide the investor with access to markets or investment strategies that are generally not easily
accessible by individuals or smaller institutional investors. These often involve potentially higher
risk strategies, such as employing leverage and / or short sales.
As of June 2007 the MSCI Europe, Australasia, Far East Index (EAFE) consisted of the following
21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France,
Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway,
Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.
Hedge funds are complex, speculative investment vehicles and are not suitable for all investors.
They are generally open to qualified investors only and carry high costs, substantial risks, and may
be highly volatile. There is often limited (or even non-existent) liquidity and a lack of transparency
regarding the underlying assets.
Investing in foreign securities such as International Investments, Emerging Markets Equity, and
Emerging Markets Debt, presents certain and unique risks traditionally not associated with
domestic investment, such as currency fluctuation and political and economic changes. These
types of investments may focus on certain geographical regions, thereby increasing vulnerability
to adverse developments in that region. This may result in greater price volatility.
Managed Futures:
Emerging Markets Equity:
Emerging Markets Equity consists of stocks issued by publicly
traded companies of the major developing countries around the world. Examples of these countries
would include: Argentina, Brazil, China, Russia, and South Africa.
05/01/2013
Managed futures funds combine the capital of many investors in
order to invest in the global futures and forward markets. This may include currencies, stock
indices, financial instruments, energy products, metals, and agricultural products. Global futures
exchanges allow managers to diversify portfolios by geography and by product. Managed futures
are speculative investments that are subject to a significant amount of risk.
Fund of Hedge Fund (Fund of Funds):
Currently three types of fund of funds are
classified in the Capital Markets Assumptions:
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
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Jim Taylor & Susan Taylor
Hedge Funds - Aggressive: Hedge Funds Aggressive strategies maintain positions both
long and short in primarily equity and equity derivative securities. A wide variety of investment
processes can be employed to arrive at an investment decision, including both quantitative and
fundamental techniques; strategies can be broadly diversified or narrowly focused on specific
sectors and can range broadly in terms of levels of net exposure, leverage employed, holding
period, concentrations of market capitalizations and valuation ranges of typical portfolios. Hedge
Funds Aggressive managers would typically maintain at least 50% and may, in some cases, be
substantially invested in equities, both long and short. Aggressive Hedge funds generally seek to
make profits by buying a group of under-priced stocks/bonds and shorting a related group of overpriced stocks/bonds or indices.
Hedge Funds - Conservative:
Investment Managers who maintain positions in which
the investment thesis is predicated on realization of a valuation discrepancy in the relationship
between multiple securities. Managers employ a variety of fundamental and quantitative
techniques to establish investment theses, and security types range broadly across equity, fixed
income, derivative or other security types. Fixed income strategies are typically quantitatively
driven to measure the existing relationship between instruments and in some cases, identify
attractive positions in which the risk adjusted spread between these instruments represents an
attractive opportunity for the investment manager. Hedge Funds Conservative positions may also
be involved in corporate transactions.
Hedge Funds - Diversified: A Fund of Hedge Funds that falls under this category usually
invests with hedge funds that fall under relative value and hedged equities categories.
Hedge funds are complex investment vehicles and are not suitable for all investors. Hedge funds
often engage in the use of leverage and other speculative investment practices, such as short
sales, options, derivatives, futures and illiquid investments that may increase the risk of investment
loss.
Commodities: These assets are usually agricultural products such as corn, livestock, coffee
and cocoa or metals such as gold, copper and silver, or energy products such as oil and natural
gas. Each commodity generally has a common price internationally. For example, corn generally
trades at one price on commodity markets worldwide. Commodities can either be sold on the
spot market for immediate delivery or on the commodities exchanges for later delivery. Trade on
commodities exchanges is usually in the form of future contracts.
impact that your actual savings and spending patterns, investment returns and portfolio values
have had on your Investment Plan result.
Report Disclosures
The indexes mentioned in this report, such as the S&P 500 and MSCI EAFE are unmanaged
indexes of common stock or fixed-income. Unmanaged indexes are for illustrative purposes only.
An investor cannot invest directly in an index.
The material has been prepared or is distributed solely for information purposes and does not
supersede the proper use of your account statements and/or trade confirmations, which are
considered to be the official and accurate records of your account activity. Any market prices are
only indications of market values, are subject to change, and may not reflect the value at which
securities could be sold. Additionally, the report is prepared as of trade date, rather than settlement
date, and may be prepared on a different date than your statement. The information contained in
this report may not reflect all holdings or transactions, their costs, or proceeds in your account.
Contact your Financial Advisor for further information. The report may also include information you
provided about assets held at other firms. Information on assets held away from First Clearing,
LLC was provided by you and may not be covered by SIPC. We have relied solely on information
from you regarding those assets. We do not verify or confirm those assets held with other firms
or affiliates and you are responsible for notifying your Financial Advisor of any changes in your
externally held investments including cost basis. Incomplete or inaccurate cost basis will affect
your plan results because the tax assumptions are incorrect. Before making any decisions please
validate your account information with your Financial Advisor.
The tax assumptions in the Envision tool are based on US federal and state tax rates.
Inflation assumptions are based on historical and expected US inflation assumptions. Therefore,
investment plan results for non-US residents may not be accurate as the actual tax and inflation
rates for countries outside of the US may vary significantly from these assumptions. The Envision
technology does not account for any currency fluctuations which may affect the relative value of
cash flows outside of the United States. These currency fluctuations could significantly impact
one's ability to meet financial goals.
This report is not a substitute for your own records and the year-end 1099 form. Cost data and
acquisition dates provided by you are not verified by our firm. Our firm does not render legal,
accounting or tax advice. Please consult your legal tax advisors before taking any action that may
have tax consequences.
Trading in futures of commodities and options is not appropriate for all persons, as the risk of loss
is substantial. Therefore, except for those considered to be bona fide hedgers, only risk capital
should be used in futures.
© 2013 First Clearing, LLC. All rights reserved. First Clearing, LLC is a registered broker-dealer
®
and a separate non-bank affiliate of Wells Fargo & Company. Envision is a registered service
mark of Wells Fargo & Company and used under license.
Other: This classification represents securities which could not be definitively classified because
Important:
there is insufficient similarity between the security and the defined asset classes. There may
be inconsistencies in one or more of the following factors: historical performance, investment
objective or asset composition. This analysis assigns relatively high downside risk and relatively
low returns to assets classified as 'Other' in order to conservatively assess their impact on the
portfolio.
Envision methodology:
Envision Implemented
Envision allows you to identify unrealistic expectations and create an investment plan of action.
If this is the result, we will help you re-evaluate your goals, make adjustments, and create a
Recommended Investment Plan that you feel is right for you. Whether you are already retired,
planning for future retirement, or planning for other goals, the Envision process enables you to
monitor and test your Recommended Investment Plan throughout your lifetime. You can change
existing goals or add new goals in future years. Through periodic monitoring, you can assess the
05/01/2013
The projections or other information generated by Envision regarding the likelihood of various
investment outcomes are hypothetical in nature, do not reflect actual investment results and are
not guarantees of future results. Results may vary with each use and over time.
Based on accepted statistical methods, the Envision tool uses a simulation model to test your Ideal,
Acceptable and Recommended Investment Plans. The simulation model uses assumptions about
inflation, financial market returns and the relationships among these variables. These assumptions
were derived from analysis of historical data. Using Monte Carlo simulation the Envision tool
simulates 1,000 different potential outcomes over a lifetime of investing varying historical risk,
return, and correlation amongst the assets. Some of these scenarios will assume strong financial
market returns, similar to the best periods of history for investors. Others will be similar to the
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Page 90 of 108
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Envision
®
Jim Taylor & Susan Taylor
worst periods in investing history. Most scenarios will fall somewhere in between. Elements of
the Envision presentations and simulation results are under license from Wealthcare Capital
Management, Inc. & Wealthcare Capital Management IP, LLC. © 2003-2013 Wealthcare Capital
Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved. Wealthcare
Capital Management, Inc. & Wealthcare Capital Management IP, LLC are separate entities and
are not directly affiliated with First Clearing, LLC., LLC are separate entities and are not directly
affiliated with First Clearing, LLC.
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Page 91 of 108
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Jim Taylor & Susan Taylor
Strategic Allocations (Standard)
Additional firm-sponsored strategic allocation models may be selected for your Investment Plan that may include updated asset allocation assumptions or may
vary slightly from these standard strategic allocation models. Please refer to your Current vs. Strategic Allocation page for an illustration of the allocation mix for
these models.
Large Cap Growth
Conservative
Conservative
Growth &
Growth
Income
0.00%
5.00%
14.00%
5.00%
Moderate
Growth &
Income
9.00%
14.00%
6.00%
Long Term
Growth &
Income
12.00%
Large Cap Value
2.00%
5.00%
14.00%
5.00%
10.00%
14.00%
6.00%
12.00%
14.00%
Mid Cap Growth
0.00%
Mid Cap Value
0.00%
2.00%
5.00%
2.00%
5.00%
0.00%
4.00%
7.00%
0.00%
6.00%
8.00%
0.00%
4.00%
7.00%
0.00%
6.00%
8.00%
Mid Cap Blend
2.00%
0.00%
0.00%
2.00%
0.00%
0.00%
4.00%
0.00%
0.00%
Small Cap Growth
0.00%
2.00%
4.00%
0.00%
3.00%
7.00%
0.00%
5.00%
8.00%
Small Cap Value
Small Cap Blend
0.00%
2.00%
4.00%
0.00%
3.00%
7.00%
0.00%
5.00%
8.00%
0.00%
0.00%
0.00%
2.00%
0.00%
0.00%
4.00%
0.00%
0.00%
International Equity
2.00%
5.00%
9.00%
4.00%
6.00%
12.00%
6.00%
7.00%
17.00%
Emerging Market
Equity
Short Term Taxable
Fixed Income
Intermediate
Taxable Fixed
Income
Long Term Taxable
Fixed Income
International Fixed
Income
Emerging Market
Debt
High Yield Fixed
Income
REIT Equity
0.00%
5.00%
9.00%
0.00%
7.00%
12.00%
0.00%
8.00%
15.00%
25.00%
10.00%
8.00%
18.00%
5.00%
3.00%
6.00%
0.00%
0.00%
45.00%
28.00%
14.00%
31.00%
19.00%
5.00%
25.00%
10.00%
0.00%
4.00%
15.00%
4.00%
7.00%
7.00%
2.00%
10.00%
3.00%
0.00%
4.00%
2.00%
0.00%
4.00%
3.00%
0.00%
6.00%
3.00%
0.00%
4.00%
5.00%
0.00%
9.00%
6.00%
0.00%
12.00%
7.00%
0.00%
4.00%
4.00%
2.00%
7.00%
6.00%
2.00%
9.00%
8.00%
0.00%
3.00%
3.00%
2.00%
3.00%
3.00%
2.00%
3.00%
3.00%
2.00%
Commodities
0.00%
2.00%
4.00%
0.00%
2.00%
4.00%
0.00%
2.00%
4.00%
Cash Alternative
5.00%
3.00%
2.00%
3.00%
3.00%
2.00%
3.00%
3.00%
2.00%
Name
05/01/2013
Conservative
Income
Moderate
Income
Moderate
Growth
Long Term
Income
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
Long Term
Growth
14.00%
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Strategic Capital Market Assumptions
Capital Market Assumptions (CMAs) for all asset classes assume a broadly diversified portfolio generally representative of the risks and opportunities of the asset
class. To the extent that the investor's portfolio is not as diversified as the assumptions made for the asset class, the return and risk potential for the portfolio may
vary significantly from the assumed CMAs.
The Strategic CMAs used within this illustration are forward looking and based on a building-block approach of risk premiums and Sharpe Ratio Equivalency.
The returns for each asset class reflect the premium above the short-term risk-free rate of return that investors are likely to demand in order to compensate
for the risk of holding those assets. Sharpe ratio equivalency provides a consistent comparison of long term risk premium across various asset classes for 10
years (representative of a one to two business cycle time period). All portfolio return and downside risk calculations are based on the Strategic CMAs. These
assumptions may differ greatly from the short-term performance and volatility experienced by your actual investment holdings. There are no assurances that the
estimates will be achieved. They have been provided as a guide to help you with your investment planning.
Representative Index is provided to clients as an example of a public index that generally reflects the associated asset class. Strategic CMAs are not based on the
Representative Index. You cannot invest directly in an index.
Asset Class
Downside Risk
1
Average Annual Return Representative Index
Large Cap Growth
-16.28%
8.22%
Morningstar Large Cap Growth©
Large Cap Value
-15.41%
7.87%
Morningstar Large Cap Value©
Large Cap Blend
-15.62%
8.02%
S & P 500
Mid Cap Growth
-19.02%
8.78%
Morningstar Mid Cap Growth©
Mid Cap Value
-18.19%
8.45%
Morningstar Mid Cap Value©
-18.66%
8.56%
Morningstar Mid Cap Blend©
-20.97%
9.09%
Morningstar Small Cap Growth©
3
-20.08%
8.86%
Morningstar Small Cap Value©
3
-20.52%
8.97%
Morningstar Small Cap Blend©
-17.49%
8.26%
MSCI EAFE Index
-23.84%
9.97%
MSCI Emerging Market Index
Short Term Taxable Fixed Income
0.34%
3.98%
BarCap Govt/Credit 1-3 Yr TR USD (%Total Return)
Intermediate Taxable Fixed Income
-3.51%
4.38%
BarCap US Govt/Credit Interm. TR USD (%Total Return)
Long Term Taxable Fixed Income
-9.86%
4.57%
BarCap US Govt/Credit Long TR USD (%Total Return)
Short Term Tax Exempt Fixed Income
-0.91%
2.73%
BarCap 2-4 Year Municipal Bond Index
Intermediate Tax Exempt Fixed Income
-3.98%
3.15%
BarCap 8-12 Year Municipal Bond Index
-10.95%
3.47%
BarCap 22+ year Municipal Bond Index
-7.62%
4.70%
ML Global Sovereign Bond Index
-12.93%
6.91%
J.P. Morgan Emerging Markets Bond Index Plus
High Yield Fixed Income
-14.54%
7.23%
ML US High Yield Cash Pay
REIT Equity
-15.67%
7.34%
NAREIT Equity REIT Index
Mid Cap Blend
3
Small Cap Growth
Small Cap Value
Small Cap Blend
International Equity
4
Emerging Market Equity
Long Term Tax Exempt Fixed Income
4
International Fixed Income
Emerging Market Debt
2
05/01/2013
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1
Average Annual Return Representative Index
Asset Class
Downside Risk
REIT Mortgage
-14.35%
8.38%
NAREIT Mortgage REIT Index
Multi Class
-13.08%
6.76%
Blend 60% S&P 500/40% Barcap Govt./Credit Interm.
Managed Futures
-13.23%
6.93%
CISDM Fund / Pool Qualified Universe Index
-7.13%
6.62%
Hedge Fund Research Incorporated (HFRI)*
Hedge Funds - Diversified
-10.05%
7.84%
Hedge Fund Research Incorporated (HFRI)*
Hedge Funds - Aggressive
-14.20%
8.85%
Hedge Fund Research Incorporated (HFRI)*
Commodities
-18.13%
7.29%
Goldman Sachs Commodity Total Return Index
Gold
-13.94%
5.21%
London PM Fixing
Other
-32.59%
0.49%
None
1.05%
3.49%
U.S. 3 Month T-Bill
Hedge Funds - Conservative
Cash Alternative
Additional Disclosures
1
The Average Annual Return is time-weighted. It is a measure of the compound rate of growth of the asset class.
2
Various rating services, such as Standard and Poor's and Moody's Investor Service rate the creditworthiness of bonds. Investing in lower-rated debt securities or funds that invest in such securities involves
additional risk because of the lower credit quality of the security or fund portfolio. These securities or funds are subject to a higher level of volatility and increased risk of default, or loss of principal.
3
Investing in small companies or mutual funds that invest in small companies involves additional risk. Smaller companies typically have a higher risk of failure and are not as well established as larger blue
chip companies. Historically, smaller-company stocks have experienced a greater degree of price volatility than the overall market average.
4
International investing may involve special risks such as currency fluctuation, political instability, and different methods of accounting and reporting requirements.
* Hedge Fund Research, Inc. ©2013, www.hedgefundresearch.com
Alternative investments carry specific investor qualifications which can include high income and net-worth requirements as well as relatively high investment minimums. They are complex investment vehicles
which generally have high costs and substantial risks. They tend to be more volatile than other types of investments and present an increased risk of investment loss. There may also be a lack of transparency
as to the underlying assets. Alternative investments are subject to fewer regulatory requirements than mutual funds and other registered investment company products and thus may offer investors fewer legal
protections than they would have with more traditional investments. Additionally, there may be no secondary market for alternative investment interests and transferability may be limited or even prohibited.
05/01/2013
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Historical Based Planning Assumptions
Assumptions for all asset classes assume a broadly diversified portfolio generally representative of the risks and opportunities of the asset class. To the extent that
the investor's portfolio is not as diversified as the assumptions made for the asset class, the return and risk potential for the portfolio may vary significantly from
those assumptions.
The Historical Based Planning Assumptions used within this illustration are based on a range of historical market returns. Based upon the inception of data for
various asset classes the actual range varies with several asset classes data ranging from 1926 to current. For asset classes where sufficient data is unavailable,
Sharpe Ratio equivalency is used to apply a risk premium for those asset classes. The Historical-Based Planning Assumptions also use the average 10-year
rolling standard deviation to represent the volatility of the longer-term holding period rather than the yearly standard deviation. The risk and return assumptions are
a best estimate to simulate historical market experiences for each asset class.
Asset Class
Downside Risk
Average Annual Return
Large Cap Growth
-14.90%
10.00%
Large Cap Value
-16.50%
10.60%
Large Cap Blend
-15.70%
10.30%
Mid Cap Growth
-17.70%
10.90%
Mid Cap Value
-19.30%
11.40%
-18.50%
11.20%
-21.20%
11.70%
3
-22.70%
12.10%
3
-22.00%
11.90%
-18.60%
10.70%
-24.40%
11.50%
Short Term Taxable Fixed Income
0.20%
4.60%
Intermediate Taxable Fixed Income
-2.20%
5.30%
Long Term Taxable Fixed Income
-5.40%
5.90%
Short Term Tax Exempt Fixed Income
-0.10%
3.70%
Intermediate Tax Exempt Fixed Income
-2.70%
4.00%
Long Term Tax Exempt Fixed Income
-6.00%
4.20%
-7.90%
6.00%
-10.60%
7.20%
Mid Cap Blend
3
Small Cap Growth
Small Cap Value
Small Cap Blend
International Equity
4
Emerging Market Equity
4
International Fixed Income
Emerging Market Debt
-9.60%
6.90%
REIT Equity
-13.30%
7.50%
REIT Mortgage
-15.20%
7.80%
Multi Class
-10.90%
8.60%
2
High Yield Fixed Income
05/01/2013
1
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
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Jim Taylor & Susan Taylor
Asset Class
Downside Risk
Average Annual Return
Managed Futures
-14.90%
4.90%
Hedge Funds - Conservative
-18.70%
7.80%
Hedge Funds - Diversified
-20.50%
8.20%
Hedge Funds - Aggressive
-22.20%
8.70%
Commodities
-19.90%
5.50%
Gold
-15.60%
5.00%
Other
-34.80%
0.20%
1.70%
3.70%
Cash Alternative
1
Additional Disclosures
1
The Average Annual Return is time-weighted. It is a measure of the compound rate of growth of the asset class.
2
Various rating services, such as Standard and Poor's and Moody's Investor Service rate the creditworthiness of bonds. Investing in lower-rated debt securities or funds that invest in such securities involves
additional risk because of the lower credit quality of the security or fund portfolio. These securities or funds are subject to a higher level of volatility and increased risk of default, or loss of principal.
3
Investing in small companies or mutual funds that invest in small companies involves additional risk. Smaller companies typically have a higher risk of failure and are not as well established as larger blue
chip companies. Historically, smaller-company stocks have experienced a greater degree of price volatility than the overall market average.
4
International investing may involve special risks such as currency fluctuation, political instability, and different methods of accounting and reporting requirements.
* Hedge Fund Research, Inc. ©2013, www.hedgefundresearch.com
Alternative investments carry specific investor qualifications which can include high income and net-worth requirements as well as relatively high investment minimums. They are complex investment vehicles
which generally have high costs and substantial risks. They tend to be more volatile than other types of investments and present an increased risk of investment loss. There may also be a lack of transparency
as to the underlying assets. Alternative investments are subject to fewer regulatory requirements than mutual funds and other registered investment company products and thus may offer investors fewer legal
protections than they would have with more traditional investments. Additionally, there may be no secondary market for alternative investment interests and transferability may be limited or even prohibited.
05/01/2013
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
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Jim Taylor & Susan Taylor
Portfolio Insight
05/01/2013
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Jim Taylor & Susan Taylor
Portfolio Summary
By: Security Sub Type
Cash Alternative (48.9%)
NotAvailable (51.1%)
Total
$
%
Cash Alternative
Joint Account (XXXX8888)
Susan's IRA (XXXX888)
1,100,000
850,000
250,000
48.9%
37.8%
11.1%
NotAvailable
Jim's PSP Deferred (XXXX8888)
Joint Account (XXXX8888)
1,150,000
1,000,000
150,000
51.1%
44.4%
6.7%
Portfolio Summary Total
2,250,000
100.0%
Total Portfolio Value as of 04/18/13:__$ 2,250,000
This report is not complete without the Understanding Your Portfolio report which contains important terms and definitions.
05/01/2013
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Jim Taylor & Susan Taylor
Portfolio Diversification
By: Asset Class, Security Sub Type
Equity
NotAvailable
920,000
920,000
Estimated
Income
Annualzd($)
-
Fixed Income
NotAvailable
230,000
230,000
-
-
10.2%
10.2%
-
-
48.9%
48.9%
-
-
100.0%
Cost($)
Cash Alternative
Cash Alternative
Portfolio Diversification Total
1,100,000
1,100,000
Market
Value($)
1,100,000
1,100,000
2,250,000
Unrealized
G/L($)
0
0
Estimated
Yield
Annualzd(%)
-
% of Portfolio
40.9%
40.9%
Total Portfolio Value as of 04/18/13:__$ 2,250,000
This report is not a substitute for your own records and the year-end 1099 form. Cost data and acquisition dates provided by you are not verified by our firm. Our firm does not render legal, accounting or
tax advice. Transactions requiring tax considerations should be reviewed carefully with your accountant or tax advisor.
Unless indicated otherwise, the Price and Cost are adjusted on certain fixed income securities for amortization (if purchased at a premium), accretion (if purchased at a discount) and/or commission and fees.
This report is not complete without the Understanding Your Portfolio report which contains important terms and definitions.
Estimated Income Annualized (EIA) takes your current income, based on the current dividends or interest paid by your securities and multiplies it to create an annualized hypothetical figure. It does not reflect
actual or future performance and should not be relied upon when making financial decisions. Estimated Yield Annualized (EYA) is the EIA divided by the current market value. It does not reflect changes in
price, which may fluctuate. All annualizations are based upon current positions using a simple mathematical calculation and assumes all figures remain constant for a year; any subsequent position changes
will affect these calculations. Calculations for certain types of securities could include a return of principal or capital gain, in which case the figures would be overstated. Past performance is not a guarantee of
future results. As these hypothetical calculations are solely based on mathematical principles, no consideration is given for premium or discount at purchase for bonds, which will affect the yield the investor
will realize on the bond if held to redemption date, called or sold prior to maturity. Dividend payments are made solely at the discretion of the issuer and are subject to be changed or eliminated at any
time. Estimated Income and Estimated Yield are estimates and the actual income and yield might be lower or higher than the estimated amounts. Estimated Yield reflects only the income generated by an
investment. It does not reflect changes in price, which may fluctuate. Please note, EIA and EYA are only available on client reports.
05/01/2013
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Jim Taylor & Susan Taylor
Realized Gain and Loss
By: Account Tax Status,Holding Term,Asset Class
Purch Cost
Adj Cost
Proceeds($)
Gain/Loss
Purch($)
Adj($)
Total Portfolio Value as of 04/18/13:__$ 2,250,000
This report is not a substitute for your own records and the year-end 1099 form. Cost data and acquisition dates provided by you are not verified by our firm. Our firm does not render legal, accounting or
tax advice. Transactions requiring tax considerations should be reviewed carefully with your accountant or tax advisor.
Long-term investment assets are defined as assets that have been held for at least 366 days (more than one year) and may be subject to tax treatment as long-term capital gains. Conversely, short-term
investment assets are those that have been held for one year or less and may be subject to tax treatment as short-term capital gains. Miscellaneous indicates insufficient data to determine holding term.
This report contains only positions that were closed since January 1 of the current year.
Adjusted Cost: Cost bases on certain fixed income securities have been adjusted for amortization, if purchased at a premium, or accretion, if purchased at a discount.
This report is not complete without the Understanding Your Portfolio report which contains important terms and definitions.
05/01/2013
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Jim Taylor & Susan Taylor
Unrealized Gain and Loss
By: Account Tax Status,Holding Term,Asset Class
Purch Cost
Taxable Accounts
100,000
Adj Cost
100,000
Short Term
Equity
Fixed Income
Term Not Available
Cash Alternative
Tax Deferred Accounts
Term Not Available
Equity
Fixed Income
Cash Alternative
Tax Advantaged Education Accounts
Term Not Available
Cash Alternative
Unrealized Gain and Loss Total
Mkt Value($)
250,000
Gain/Loss
Purch($)
Adj($)
0
0
150,000
120,000
30,000
100,000
100,000
100,000
100,000
100,000
100,000
0
0
0
0
750,000
750,000
1,750,000
0
0
750,000
750,000
0
0
750,000
750,000
1,750,000
800,000
200,000
750,000
0
0
250,000
250,000
250,000
0
0
250,000
250,000
250,000
250,000
250,000
250,000
0
0
0
0
1,100,000
1,100,000
2,250,000
0
0
Total Portfolio Value as of 04/18/13:__$ 2,250,000
This report is not a substitute for your own records and the year-end 1099 form. Cost data and acquisition dates provided by you are not verified by our firm. Our firm does not render legal, accounting or
tax advice. Transactions requiring tax considerations should be reviewed carefully with your accountant or tax advisor.
Long-term investment assets are defined as assets that have been held for at least 366 days (more than one year) and may be subject to tax treatment as long-term capital gains. Conversely, short-term
investment assets are those that have been held for one year or less and may be subject to tax treatment as short-term capital gains. Term Not Available indicates insufficient data to determine holding term.
Adjusted Cost: Cost bases on certain fixed income securities have been adjusted for amortization, if purchased at a premium, or accretion, if purchased at a discount.
This report is not complete without the Understanding Your Portfolio report which contains important terms and definitions.
05/01/2013
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Jim Taylor & Susan Taylor
Initial Investment (Gain/Loss)
By: Position Level
Initial Investment Gain/Loss does not include costs associated with reinvested shares from dividends and/or capital gains
ID
Description
Quantity Purch Date
Mkt Price($)
Initial Inv Cost($)
Jim's PSP Deferred (XXXX8888)
Mkt Value($) Initial Inv Gain/Loss($)
1,000,000
* International Equity
200,000.00
1.00
200,000
* Large Cap Growth
400,000.00
1.00
400,000
* Mid Cap Blend
200,000.00
1.00
200,000
* Short Term Taxable Fixed Income
200,000.00
1.00
200,000
Joint Account (XXXX8888)
850,000.00
1.00
850,000
1,000,000
150,000
850,000
850,000
0
* Intermediate Taxable Fixed Income
30,000.00
04/23/13
1.00
30,000
* Large Cap Growth
75,000.00
04/23/13
1.00
75,000
* Mid Cap Growth
45,000.00
04/23/13
1.00
45,000
Susan's IRA (XXXX888)
250,000.00
1.00
Initial Investment Total
250,000
250,000
250,000
250,000
0
2,250,000
1,150,000
1,100,000
Total Portfolio Value as of 04/18/13:__$ 2,250,000
*
Indicates that all or part of this position is not held at our firm and information associated with this position was provided by you. The information provided for assets not held at our firm has not been verified.
The actual value and/or performance of these assets may differ from that shown.
This report does NOT include all of your cost lot information. This is not an accurate representation of your gains or losses from an IRS perspective and should not be used for tax purposes. The purpose of
this report is to show how much your initial investments have changed including automatic reinvestments of dividends and capital gains and change in market value.
Purchase Date is the date you purchased the security. A (-) in the Purchase Date column indicated that you have multiple purchases of the security on multiple dates.
The Initial Inv Gain/Loss is the Mkt Value of the shares held minus the Initial Purchase Price of the purchases excluding the costs of the reinvestments as well as all fee charges and commissions.
If you purchased multiple lots of the security, the total of all Initial Investments is shown.
Mkt Price is the previous business day's closing price. Mkt Value is the value of the total number of shares currently held (shares purchased plus shares acquired via reinvestment) times the Mkt Price.
This report is not complete without the Understanding Your Portfolio report which contains important terms and definitions.
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Initial Investment (Gain/Loss)
By: Lot Level
Initial Investment Gain/Loss does not include costs associated with reinvested shares from dividends and/or capital gains
ID
Description
Quantity Purch Date
Mkt Price($)
Jim's PSP Deferred (XXXX8888)
Initial Inv Cost($)
Mkt Value($) Initial Inv Gain/Loss($)
500,000
1,500,000
1,000,000
500,000
500,000
0
500,000.00
1.00
* International Equity
200,000.00
1.00
200,000
* Large Cap Growth
400,000.00
1.00
400,000
* Mid Cap Blend
200,000.00
1.00
200,000
* Short Term Taxable Fixed Income
200,000.00
1.00
200,000
John's 529 (XXXX8888)
130,000.00
1.00
Joint Account (XXXX8888)
100,000.00
1.00
130,000
130,000
130,000
130,000
0
100,000
250,000
150,000
100,000
100,000
0
* Intermediate Taxable Fixed Income
30,000.00
04/23/13
1.00
30,000
* Large Cap Growth
75,000.00
04/23/13
1.00
75,000
* Mid Cap Growth
45,000.00
04/23/13
1.00
45,000
Sara's 529 (XXXX8888)
120,000.00
1.00
Susan's IRA (XXXX888)
250,000.00
Initial Investment Total
1.00
120,000
120,000
120,000
120,000
250,000
250,000
250,000
250,000
0
2,250,000
1,150,000
1,100,000
0
Total Portfolio Value as of 04/18/13:__$ 2,250,000
05/01/2013
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Jim Taylor & Susan Taylor
*
Indicates that the position is not held at our firm and information associated with this position was provided by you. The information provided for assets not held at our firm has not been verified. The actual
value and/or performance of these assets may differ from that shown.
This report does NOT include all of your cost lot information. This is not an accurate representation of your gains or losses from an IRS perspective and should not be used for tax purposes. The purpose of
this report is to show how much your initial investments have changed including automatic reinvestments of dividends and capital gains and change in market value.
Purchase Date is the date you purchased the security. A blank will indicate unknown Purchase Date.
Initial Investment will not include the effects of sales charges and commissions. The Initial Investment Cost of reinvested lots will be shown as zero.
Mkt Price is the previous business day's closing price. Mkt Value is the value of the total number of shares times the Mkt Price.
The Initial Inv Gain/Loss is the Mkt Value of the shares held minus the Initial Purchase Price. It does not include the effects of fees charged or commissions.
This report is not complete without the Understanding Your Portfolio report which contains important terms and definitions.
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Understanding Your Portfolio
General Information
Investing involves risk, including the possible loss of principal. This report is intended to provide
you with a descriptive overview of your current portfolio. The report may encompass one account
or multiple accounts as specified in the report. The material has been prepared or is distributed
solely for information purposes and does not supersede the proper use of your client statements
and/or trade confirmations, which are considered to be the official and accurate records of your
account activity. Any market prices are only indications of market values, are subject to change,
and may not reflect the value at which the securities could be sold. Reported prices should not
be considered actual bids. For these reports, in certain groupings, Corporate Bonds includes
Certificates of Deposit. Additionally, the report is prepared as of trade date, rather than settlement
date, and may be prepared on a different date than your statement. The information contained in
this report may not reflect all holdings or transactions, their costs, or proceeds in your account.
The report may also include information you provided about assets held at other firms. Information
on assets held away from First Clearing, LLC was provided by you and may not be covered by
SIPC. We have relied solely on information from you regarding those assets. We do not verify
or confirm those assets held with other firms or affiliates and you are responsible for notifying
your Financial Advisor of any changes in your externally held investments including cost basis.
Incomplete or inaccurate cost basis will affect your plan results because the tax assumptions
are incorrect. Before making any decisions please validate your account information with your
Financial Advisor. The financial data used to generate this report is provided by third party vendors.
While this information is believed to be reliable, it has not been verified.Security ID will be ticker
symbol, CUSIP number, Security Number or, if you have provided us with a market value of a
generic asset classification type, we will assign a dash. This report is not complete unless all pages
noted are included. For more detailed information, including current pricing, call your Financial
Advisor.
To the extent that this report includes fixed income securities, you should be aware that the
descriptions of fixed income securities are general in nature and do not reflect important information
that you should consider, such as but not limited to, yield, call features, credit quality, and various
tax implications. Before making any decisions regarding fixed income investments, contact your
advisor to obtain more detailed information regarding specific fixed income securities.
Asset Classes for mutual funds, variable annuities and exchange-traded funds are derived
from Morningstar Categories. Underlying holdings classification provided by Morningstar. ©2013
Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to
Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not
warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are
responsible for any damages or losses arising from any use of this information.
The asset class descriptions below are included solely to provide insight into how individual
securities are tied to specific asset classes. We use our best efforts to correctly classify
investments. However, no warranty of accuracy is made.
Equity Investments: Equity investments refer to buying stocks of United States companies.
The investment return to the owner of stock (shareholder) is in the form of dividends and/or capital
appreciation. The market capitalization of companies is used to group large, medium (Mid), and
small companies. Shareholders share in both the upside potential and the downside risk.
Capitalization:
Market capitalization definitions differ but one example of capitalization
methodology is that of Morningstar, which defines "large-capitalization" stocks as those stocks that
form the top 70% of the market capitalization of the stocks eligible to be included in the Morningstar
US Market Index (a diversified broad market index that represents approximately 97% of the
market capitalization of publicly traded U.S. Stocks). The Morningstar index methodology defines
"mid-capitalization" stocks as those stocks that form the 20% of market capitalization between
the 70th and 90th percentile of the market capitalization and "small-capitalization" stocks as those
stocks that form the 7% of market capitalization between the 90th and 97th percentile of the market
capitalization of the stocks eligible to be included in the Morningstar US Market Index.
Style: Blend (sometimes referred to as Core) investing is generally characterized as a strategy
that seeks to balance the portfolio of stocks between the Growth and Value styles as market
conditions fluctuate. Stocks in the underlying index are designated as "growth" as they are issued
by companies that typically have higher than average historical and forecasted earnings, sales,
equity and cash flow growth. Stocks in the underlying i ndex are weighted according to the total
number of shares that are publicly owned and available for trading. Stocks in the underlying
index are designated as "value" as they are issued by companies that typically have relatively low
valuations based on price-to-earnings, price-to book value, price-to-sales, price-to-cash flow and
dividend yields. The stocks in the underlying index are weighted according to the total number of
shares that are publicly owned and available for trading.
Fixed Income Securities (Bonds):
Bonds are promissory notes of a United States
corporation or federal government entity (taxable bonds) or a state or local government entity (taxexempt or municipal bonds). Bonds usually make a series of interest payments followed by a return
of principal at maturity. If sold prior to maturity, the price that can be obtained for a bond may be
more or less than face value, depending on interest rates at the time the bond is sold and the
remaining term of the bond.
Fixed income securities include Treasuries (i.e., public obligations of the U.S. Treasury that have
remaining maturities of more than one year), Government-Related issues (i.e., agency, sovereign,
supranational, and local authority debt), and Corporate Bonds.
Redemption date indicated is either maturity date (M), pre-refunded date (R), mandatory put or
tender date (T), Dutch auction date or optional tender date (D), display date on perpetual securities
(sixty years from report date) (P) or the date which would represent the average life of the maturity
when measured from the date of this report (A). Because perpetual securities do not have a stated
maturity date, we assign a date of sixty years from the date of the report to enable us to provide
approximate yields and durations.
Investing in fixed income securities involves certain risks such as market risk if sold prior to
maturity and credit risk especially if investing in high yield bonds, which have lower ratings and
are subject to greater volatility. All fixed income investments may be worth less than original cost
upon redemption or maturity.
Asset Class Descriptions
effective maturities between six and twelve years; and long-term bonds have maturities of twelve
years or longer.
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Income from tax exempt bonds is generally free from federal and state taxes for residents of the
issuing state. While the interest income is tax-free, capital gains if any are subject to taxes. Income
of certain tax-exempt bonds may be subject to the Federal Alternative Minimum Tax (AMT).
Cash Alternatives:
Cash Alternatives include liquid, short term and interest bearing
investments. Examples are money market funds, Treasury bills and commercial paper. It is
possible to lose money by investing in cash alternatives.
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Market Commentary
A publication of the Wells Fargo Advisors National Sales
Department
February 7, 2008
January saw Domestic Equity continue its downward trend from the October
peak. Concerns over disruptions in the US credit, housing and consumer
markets, as well as news of $7.14 billion in trading losses due to a ''rogue
trader'' at French bank Societe Generale sent markets lower. As the month
progressed it was shaping up to be one of the worst starts to a new year on
record. As fears of a recession grew, the Federal Reserve took action in the
form of an emergency 75 basis point cut on January 22nd, followed by an
additional reduction of 50 basis point at the January 30th FOMC meeting to
put the Fed Funds Rate at 3.00%. While markets responded positively to the
Fed's action, January ended in the red. The S&P 600 Small-Cap index couldn't
generate any positive momentum in January, continuing a four month slide,
and closed out the month down 4.96%. The S&P 400 Mid-Cap index was also
lower in January (down 6.24%), The broad market indices, particularly the Dow
Jones Industrial Average and Nasdaq Composite closed out the month with
more weakness, down 4.63% and 9.89% respectively. The S&P 500 was lower
as well, closing out January down 6.15%. On the fixed income front, flight to
safety moved the 10-year Treasury Yield down to 3.59% at the end of January.
Energy stocks experienced a pull back in January following a strong 2007.
The price of Oil, which rose to a peak of $99.29/barrel in mid-November,
closed at $91.75/barrel at month end. The Oil Service Companies fell in
sympathy with Oil and closed down 16.18% for January (as measured by the
Philadelphia Stock Exchange Oil Service Sector Index). Internationally, much
like their domestic counterparts, European markets witnessed a weak start to
the year. England (the FTSE 100), France (the CAC 40) and Germany (the
DAX 100) were down 8.93%, 13.25% and 15.06% respectively by the end of
January. In Asia, the performance for the month was not much better. In 2007,
the Japan's Nikkei index posted a multi-year high of 18,300 in late February
before retreating sharply over the remainder of the year. The trend continued
in January with the Nikkei settling at 13,592.47, translating into a year-todate performance of -11.20%. Investing in foreign securities presents certain
unique risks not associated with domestic investments, such as currency
fluctuation and political and economic changes. This may result in greater
share price volatility. Technology and Internet-related stocks, especially of
smaller, less-seasoned companies, tend to be more volatile than the overall
market. The prices of small and mid-cap company stocks are generally more
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volatile than large company stocks. They often involve higher risks because
small and mid-cap companies may lack the management expertise, financial
resources, product diversification and competitive strengths to endure adverse
economic conditions. Indices are shown for illustrative purposes only. Investors
cannot invest directly in an index.
In our opinion, investors may be best served by seeking to improve the quality
of their portfolios (pruning risk, planting quality as well as seeking dividend
income) and adding ply over the first weeks of March, recovering within 3
points of its February highs, before bottoming out and settling at 15,680 by
the end of November. Investing in foreign securities presents certain unique
risks not associated with domestic investments, such as currency fluctuation
and political and economic changes. This may result in greater share price
volatility. Technology and Internet-related stocks, especially of smaller, lessseasoned companies, tend to be more volatile than the overall market. The
prices of small and mid-cap company stocks are generally more volatile than
large company stocks. They often involve higher risks because small and
mid-cap companies may lack the management expertise, financial resources,
product diversification and competitive strengths to endure adverse economic
conditions. Indices are shown for illustrative purposes only. Investors cannot
invest directly in an index.
Interest rates saw a steady retreat after establishing multi-year highs in June.
The 10-year Treasury Yield reached a five-year high of 5.31% in June before
pulling all the way back to 3.94% at month end - pushing towards a two and
a half year low. The Fed paused on August 8th 2006 after raising rates onequarter point at each of its last 17 meetings, and remained paused through the
August 7th 2007 meeting. During this period, the Fed Funds Rate increased to
5.25% from 1%. At the conclusion of their October 31st 2007 meeting, the Fed
reduced the Fed Funds Rate to 4.50% in an effort to fight back the possibility
of a U.S. recession.
In our opinion, investors may be best served by seeking to improve the quality
of their portfolios (pruning risk, planting quality and adding dividend income)
and adding secular growers (companies that don't need economic tailwinds
to spur growth), especially as the economy shows signs of slowing. We are
currently overweight Industrials, Information Technology companies and the
Utilities Sector, and underweight Consumer Discretionary. Our Investment
Strategy Team has a slight bias to Growth vs. Value. Internationally, we believe
investors should look to diversify their holdings between Europe and Asia.
Like domestic equities, our international focus is on high quality. Overall,
our recommended asset allocations are roughly in-line with our long-term
benchmarks, with an overweight in Large-Caps and in International and an
© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
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underweight in Small and Mid-Caps. We continue to recommend that investors
underweight high yield corporates, emerging market debt and treasuries in their
bond allocations. Our overweight ratings are in the agencies and mortgage
markets. High-yield bonds, also known as junk bonds, are subject to greater
risk of loss of principal and interest, including default risk, than higher-rated
bonds.
This report is intended for informational purposes only and is not intended as a recommendation to buy or sell any
specific securities. Past performance is not indicative of future results and there is no assurance that any forecasts/
targets will be attained. The opinions expressed here reflect the judgment of the author as of the date of the report
and are subject to change without notice. Indices shown above are for illustrative purposes only. An investor cannot
invest directly in an index. Your investment objectives should be reviewed by your Financial Advisor before making
investment decisions.
Investments in securities and insurance products are: NOT FDICINSURED/NOT BANK-GUARANTEED/MAY LOSE VALUE
Wells Fargo Advisors is the trade name used by two separate, registered broker-dealers and nonbank affiliates of Wells
Fargo & Company providing certain retail securities brokerage services: Wells Fargo Advisors, LLC, Member NYSE/
SIPC, and Wells Fargo Advisors Financial Network, LLC, Member FINRA/SIPC. 12/07.
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© 2013 Wealthcare Capital Management, Inc. & Wealthcare Capital Management IP, LLC. All Rights Reserved.
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