Life Goals Sample

Bob Sanders
and
Meredith Sanders
Presented by:
John Q. Advisor, CLU, ChFC
For Evaluation Purposes Only
10735 David Taylor Drive
Suite 350
Charlotte, North Carolina 28262
Phone: 1-800-438-6017
Mobile Phone: (704) 549-1100
Fax: (704) 549-5700
E-mail: john.q.advisor@impact-tech.com
Disclosure
This analysis provides only broad, general guidelines, which may be helpful in shaping your thinking
about your financial needs. It can serve as a guide for discussions with your professional advisors. The
quality of this analysis is dependent upon the accuracy of data provided by you. Calculations contained
in this analysis are estimates only.
Actual results may vary substantially from the figures shown. All rates of return are hypothetical and
are not a guarantee of future performance of any asset, including insurance or other financial products.
All inflation rates are estimates provided by you.
This analysis contains very specific computations concerning the value of your assets today. These
computations are based on assumptions you provided concerning the value of your assets today and the
rate at which the assets will appreciate. These assumptions must be carefully reviewed for their
reasonableness. These assumptions are only a "best guess". The actual values and rates of growth may
be significantly different from those illustrated. No guarantee can be made regarding values and taxes
when actual appreciation rates and tax rates cannot be known at this time.
Any assumptions are for illustrative purposes and not to be considered as legal advice; only your legal
counsel should provide such advice. No legal or accounting advice is being rendered either by this
report or through any other oral or written communications. Please discuss legal and accounting matters
directly with your counselors in each of those areas. Because your financial concerns and goals may
change in the future, periodically monitoring actual results and making appropriate adjustments are
essential components of your program. Annual updating allows a year of estimated values to be
replaced with actual results and can be very helpful in your determining whether your analyses are on
your desired course. Strategies may be proposed, including the acquisition of insurance and other
financial products. When this occurs, additional information about the specific product (including a
prospectus, if required) will be provided for your review.
IMPORTANT: The projections or other information generated by this investment analysis tool (Life
Goals) regarding the likelihood of various investment outcomes are hypothetical in nature, do not
reflect actual investment results and are not guarantees of future results.
IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, this
notice is to inform you that any U.S. federal tax advice contained in this presentation is not intended or
written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal
Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter
addressed in this presentation.
Version 1.00.00 c. 1.0.0.0

Presented by: John Q. Advisor, CLU, ChFC August 30, 2007
For Evaluation Purposes Only 2 of 32
Defining Your Financial Goals
There are many potential financial goals in your life. This presentation considers the information you
have shared—your assets, your wishes, and your thoughts about the future—to determine your progress
toward the following fundamental financial goals:
Survivor Needs Goal

If something were to happen to you or your spouse, would your family have
enough to live comfortably?
Monthly Savings Goal for Retirement

Will your current annual savings be enough for a financially secure retirement?
Monthly Savings Goal for Education

Are you saving enough each year to ensure a quality education for your children?
Disability Income Needs Goal

If you or your spouse loses the ability to earn an income as a result of an accident
or illness, how would you maintain your lifestyle?
Getting Started
1. Confirm your information to ensure an accurate presentation specific to your situation.
2. Analyze your current progress towards each of your goals.
3. Prioritize which goals require immediate action and consider solutions.

Confirmation of Facts
Personal Information
Bob Sanders, Male Born: Feb. 10, 1967 1612 Windy Gap Drive
Meredith Sanders, Female Born: Apr. 15, 1967 Charlotte, North Carolina 28232
• Bob and Meredith are married. Home Phone: 704 545-8754
• Include Social Security in analysis. Business Phone: 704 330-7550
Email Address:
bobsanders@impact-tech.com
Dependents: Robbie Born: Feb. 01, 1997
Sarah Born: Aug. 12, 2001
Earnings
Bob's Current Salary: $75,000
Meredith's Current Salary: $62,000
Assets
Total Assets: $15,000
Total Monthly Savings: $200
Average Growth Rate: 6%
Debts
Total Mortgage Balance: $180,000
Total Other Debts: $0
Retirement Assets
Total Retirement Assets: $28,500
Total Monthly Contributions: $600
Growth Rate: 5.77%
Current Monthly Company Growth
Description Owner Amount Savings Match Rate
401k Bob $15,000 $200 $100 6.00%
401k Meredith $10,000 $200 $100 5.00%
IRA Meredith $3,500 $0 $0 7.00%
Survivor Goal
Survivor Income Needs: 70% of current household income while the children are at home.
Survivor Income Needs: 60% of current household income for remaining years.
Current Life Insurance Policies:
Description Insured Death Benefit Premium
Group Policy Meredith $50,000 $0
Retirement Goal
Bob retires at 65, Meredith retires at 65.
Bob starts Social Security benefits at 67, Meredith starts Social Security benefits at 67.
Retirement Income Needs: 80% of current household income for life.

Confirmation of Facts
Education Goal
Robbie: Provide 100% of the total cost of Clemson University ($27,014 this year) for 4 years
Sarah: Provide 100% of the total cost of The University of North Carolina at Chapel Hill ($27,527
this year) for 4 years
Current Savings Amount: $0
Current Monthly Savings: $0
Growth Rate: 5.00%
Disability Income Goal

Replace 60% of Bob's salary.
Replace 60% of Meredith's salary.

Summary of Your Financial Goals
Financial goals are best achieved through preparation that starts today. This presentation charts your
current progress toward each of your financial goals and what is needed to achieve 100% of those
goals.
Bob's Survivor Needs Goal

3% Additional Amount Needed
to Meet 100% of Goal $1,460,121
Goal: Provide immediate cash and continuing income
0% 100%
needs for your survivors in the event of your death
You currently have 3% of the amount today.
needed to meet your goal. Considers: Total available assets of $43,500
Meredith's Survivor Needs Goal

7% Additional Amount Needed
to Meet 100% of Goal $1,197,176
Goal: Provide immediate cash and continuing income
0% 100%
needs for your survivors in the event of your death
You currently have 7% of the amount today.
needed to meet your goal. Considers: Total available assets of $93,500
Retirement Savings Goal

48% Additional Monthly Savings Needed
to Meet 100% of Goal $3,497
Goal: Provide 80% of your current lifestyle, adjusted
0% 100%
for inflation, for 23 years of retirement starting when
You are currently saving 48% of the monthly Bob retires at age 65.
savings amount needed to meet your goal. Considers: Existing retirement income. Assets and
savings assume your average rate of return of 5.85%
Education Savings Goal

0% Additional Monthly Savings Needed
Goal: Provide funds needed to meet estimated expenses
0% 100%
of education objectives.
You currently have no funds Considers: Current balance of $0 and monthly savings
available for this goal. of $0.00 assume a 5.00% rate of return
Bob's Disability Needs Goal

0% Additional Disability Income Needed
Goal: Provide 60% of current salary in the event you
0% 100%
become disabled today.
You currently have no funds
available for this goal.

Summary of Your Financial Goals
Meredith's Disability Needs Goal
0% Additional Disability Income Needed
Goal: Provide 60% of current salary in the event you
0% 100%
become disabled today.
You currently have no funds
available for this goal.

Survivor Needs Goal
Assumes Bob Dies Today
Objective
In the event of Bob's death today, provide funds for:
• Immediate Cash Needs—to fund final expenses, debts, or emergency funds
• Continuing Income Needs—to help support your family’s ongoing lifestyle
Immediate Cash Needs Due at Bob's Death

1%
Final Expenses $5,000
39% Present Debts $180,000
53% Emergency Fund $34,250
Education Needs $243,390
Total Immediate Cash Needs $462,640
7%
Continuing Income Needs for Meredith

$360,000
270,000
180,000
90,000
Total Survivor Income Needed $2,749,249
0
50 60 70 80 Total Survivor Income Sources $1,708,268
Social Security Salary & Other Income Total Continuing Income Needs $1,040,981
Add'l Income Needed
Total Survivor Needs $1,503,621

Assets Available to Fund Survivor Needs
34% 35% Bob's Retirement Assets $15,000

Meredith's Retirement Assets $13,500
Bob's Life Insurance $0
Other Assets $15,000
31% Total Available Assets $43,500
Remaining Survivor Needs1,2 $1,460,121

3%
Survivor Needs Goal Progress

0% 100%
1
Remaining Survivor Needs equals ‘Total Survivor Needs’ (Immediate Cash Needs + Continuing Income Needs) minus
2
‘Assets Available to Fund Survivor Needs’.
Additional amount needed to fund Total Immediate Cash Needs Portion ONLY = $419,140 assuming Total Available Assets
are only used for these needs.
Survivor Needs Goal Details
Immediate Cash Needs Due at Bob's Death $462,640

Final Expenses—Money to pay doctor bills, hospital stays, and funeral arrangements $5,000
Present Debts—Pay off the existing debts listed below to protect the family from creditors $180,000
• Mortgage Balance $180,000
Emergency Fund—3 months household income to protect against a family emergency $34,250
Education Needs— A college fund to protect your children's future $243,390
• Robbie: Providing $27,014 a year starting at age 18 for 4 years would require $118,244 today.
• Sarah: Providing $27,527 a year starting at age 18 for 4 years would require $125,146 today.
Continuing Income Needs for Meredith $1,040,981

Survivor Income Needed
Current Percent of Annual Annual Lump Sum
Period Based on Household Household Need Amount at Value
Meredith's Age Income Income Today Start of Period Today
40 - 51 $137,000 70% $95,900 $95,900 $1,037,576
52 - 88 $137,000 60% $82,200 $117,198 $1,711,673
Total Amount Needed Today to Fund Survivor Income Needs $2,749,249
Survivor Income Sources

Annual Amount
when Income Annual Lump Sum
1
Income Source Source Begins Increase Value Today
Employment $62,000 3% $1,242,439
Social Security2 $27,665 3% $465,829
Total Amount Today of All Survivor Income Sources $1,708,268
Assumptions & Notes

Assumed Years of Death
• This presentation assumes Bob dies immediately and Meredith dies at age 88.
Income Needs Assumption
• Meredith will require 70% of current household income while the children are at home. When the
youngest child turns 18, Meredith will require 60% of current household income.
Interest Rate Assumptions
• Education costs are assumed to increase at a 6% annual inflation rate.
• All other living expenses are assumed to increase at a 3% annual inflation rate.
• All lump sum values in today's dollars are assumed to grow at 5% annually.
Social Security Assumptions
• Bob and Meredith's Social Security benefit amounts based on their current salaries. Social
Security survivor benefit ends when youngest child turns 16, however children's benefits are paid
until age 18. Social Security retirement benefit begins at Meredith's age 67. No Social Security
benefits will be paid if there are years after the youngest child turns 18, but before Meredith's age
67.
1
2
See Confirmation of Facts for income details.
See Assumptions & Notes section for details.
Income Assets
Annual Salary Estimated

Meredith's Income & Other Social Withdrawals Annual Asset Cumulative
Year Age Needed Income Security From Assets Shortfall Balance Shortfall
2008 40 $95,900 $62,000 $27,665 $0 $6,235 $0 $6,235

2009 41 98,777 63,860 28,495 0 6,422 0 12,658
2010 42 101,740 65,776 29,349 0 6,615 0 19,273
2011 43 104,793 67,749 30,230 0 6,814 0 26,087
2012 44 107,936 69,782 31,137 0 7,018 0 33,105
2013 45 111,174 71,875 32,071 0 7,229 0 40,333

2014 46 114,510 74,031 33,033 0 7,445 0 47,778
2015 47 117,945 76,252 34,024 0 7,669 0 55,447
2016 48 121,483 78,540 17,522 0 25,421 0 80,868
2017 49 125,128 80,896 18,048 0 26,184 0 107,052
2018 50 128,882 83,323 18,589 0 26,969 0 134,021

2019 51 132,748 85,822 19,147 0 27,778 0 161,800
2020 52 117,198 88,397 0 0 28,800 0 190,600
2021 53 120,713 91,049 0 0 29,664 0 220,265
2022 54 124,335 93,781 0 0 30,554 0 250,819
2023 55 128,065 96,594 0 0 31,471 0 282,290

2024 56 131,907 99,492 0 0 32,415 0 314,705
2025 57 135,864 102,477 0 0 33,388 0 348,092
2026 58 139,940 105,551 0 0 34,389 0 382,481
2027 59 144,138 108,717 0 0 35,421 0 417,902
2028 60 148,462 111,979 0 0 36,483 0 454,386

2029 61 152,916 115,338 0 0 37,578 0 491,964
2030 62 157,504 118,798 0 0 38,705 0 530,669
2031 63 162,229 122,362 0 0 39,866 0 570,535
2032 64 167,096 126,033 0 0 41,062 0 611,598
2033 65 172,109 0 35,471 0 136,637 0 748,235

2034 66 177,272 0 38,155 0 139,117 0 887,352
2035 67 182,590 0 40,967 0 141,623 0 1,028,975
2036 68 188,068 0 42,196 0 145,871 0 1,174,846
2037 69 193,710 0 43,462 0 150,247 0 1,325,093
2038 70 199,521 0 44,766 0 154,755 0 1,479,848

2039 71 205,507 0 46,109 0 159,397 0 1,639,246
2040 72 211,672 0 47,492 0 164,179 0 1,803,425
2041 73 218,022 0 48,917 0 169,105 0 1,972,530
2042 74 224,563 0 50,385 0 174,178 0 2,146,707
2043 75 231,299 0 51,896 0 179,403 0 2,326,111

2044 76 238,238 0 53,453 0 184,785 0 2,510,896
2045 77 245,386 0 55,057 0 190,329 0 2,701,225
2046 78 252,747 0 56,708 0 196,039 0 2,897,264
2047 79 260,330 0 58,410 0 201,920 0 3,099,184

Income Assets
Annual Salary Estimated

Year Age Needed Income Security From Assets Shortfall Balance Shortfall
2048 80 268,140 0 60,162 0 207,977 0 3,307,161

2049 81 276,184 0 61,967 0 214,217 0 3,521,378
2050 82 284,469 0 63,826 0 220,643 0 3,742,021
2051 83 293,003 0 65,741 0 227,263 0 3,969,284
2052 84 301,793 0 67,713 0 234,081 0 4,203,364
2053 85 310,847 0 69,744 0 241,103 0 4,444,467

2054 86 320,173 0 71,837 0 248,336 0 4,692,803
2055 87 329,778 0 73,992 0 255,786 0 4,948,589

Survivor Needs Recommendation
Objective
In the event of your death today, provide funds for:
• Immediate Cash Needs—to fund final expenses, debts, or education expenses
Proposed New Life Insurance $1,500,0001
Remaining Survivor Needs Remaining Survivor Needs

With No New Life Insurance With New Life Insurance
$360,000 $360,000
270,000 270,000
180,000 180,000
90,000 90,000
0 0
45 50 55 60 65 70 75 80 85 45 50 55 60 65 70 75 80 85
Withdrawals from Assets and Life Insurance Salary & Other Income
Social Security Additional Survivor Need
Summary of Survivor Needs

Remaining Survivor Needs $1,460,121
less Proposed New Life Insurance Proceeds $1,500,000
Your survivor needs appear to be funded.
100%

0% 100%
1
Life insurance policy premiums are not illustrated in this presentation.
Survivor Needs Goal
Assumes Meredith Dies Today
Objective
In the event of Meredith's death today, provide funds for:
• Immediate Cash Needs—to fund final expenses, debts, or emergency funds
Immediate Cash Needs Due at Meredith's Death

1%
Final Expenses $5,000
39% Present Debts $180,000
53% Emergency Fund $34,250
Education Needs $243,390
Total Immediate Cash Needs $462,640
7%
Continuing Income Needs for Bob

$360,000
270,000
180,000
90,000
Total Survivor Income Needed $2,749,249
0
50 60 70 80 Total Survivor Income Sources $1,921,213
Social Security Salary & Other Income Total Continuing Income Needs $828,036
Add'l Income Needed
Total Survivor Needs $1,290,676

Assets Available to Fund Survivor Needs
16% 16%
Bob's Retirement Assets $15,000
14% Meredith's Retirement Assets $13,500
Meredith's Life Insurance $50,000
Other Assets $15,000
54% Total Available Assets $93,500
Remaining Survivor Needs1,2 $1,197,176

7%

0% 100%
1
Remaining Survivor Needs equals ‘Total Survivor Needs’ (Immediate Cash Needs + Continuing Income Needs) minus
2
‘Assets Available to Fund Survivor Needs’.
Additional amount needed to fund Total Immediate Cash Needs Portion ONLY = $369,140 assuming Total Available Assets
are only used for these needs.
Survivor Needs Recommendation
Assumes Meredith Dies Today
Objective
In the event of your death today, provide funds for:
• Immediate Cash Needs—to fund final expenses, debts, or education expenses
Proposed New Life Insurance $800,0001
Remaining Survivor Needs Remaining Survivor Needs

With No New Life Insurance With New Life Insurance
$360,000 $360,000
270,000 270,000
180,000 180,000
90,000 90,000
0 0
45 50 55 60 65 70 75 80 85 45 50 55 60 65 70 75 80 85
Withdrawals from Assets and Life Insurance Salary & Other Income
Social Security Additional Survivor Need
Summary of Survivor Needs

Remaining Survivor Needs $1,197,176
less Proposed New Life Insurance Proceeds $800,000
Survivor Needs Left Unfunded $397,176
69%

0% 100%
1
Life insurance policy premiums are not illustrated in this presentation.
Social Security Benefits
Social Security provides benefits when you die, become disabled, or retire. Most
workers are covered by Social Security, exceptions include railroad employees,
some state and local government employees, and federal workers hired prior to
1984. Benefits are based on earnings and the length of time employed. Spouses
and children of eligible workers may also receive benefits based on the worker's
record.
Qualifications differ for each kind of benefit, as does the size of the benefit payable. Monthly benefits
increase each January based on changes in the cost of living during the preceding year. You and your
employer each contribute 6.2% of earnings up to the maximum taxable amount for Social Security and
1.45% of all earnings for Medicare. Self-employed workers pay both employee and employer amounts.
Calculations of benefits are based on the Primary Insurance Amount (PIA) which is based on your
Average Indexed Monthly Earnings (AIME) over your employment history. Both the PIA and the
AIME are calculated by formulas published each year by the Social Security Administration. You may
get an estimate of your benefits by filling out a Request for Earnings and Benefit Estimate Statement
from the Social Security Administration. In return you receive a report which shows your earnings
history, AIME and estimated retirement, disability and survivor benefits.
Survivor Benefits
Family members of an eligible worker may receive monthly benefits based on the earnings record of
the deceased individual. Benefits are paid to children under 18 and spouses who are retired, disabled or
caring for children under 16. In addition, a one-time death benefit of $255 is payable.
Monthly survivor benefits are limited to a Maximum Family Benefit, approximately 150%-188% of the
calculated PIA. Each child's benefit is equal to 75% of the PIA; a spouse caring for a child under age 16
receives an equal benefit. If there are no children under age 16, the spouse can receive a monthly
benefit if disabled and over age 50 or retired and age 60 or more. The benefit is adjusted if the spouse is
less than the normal retirement age.
Disability Benefits
If you become fully disabled, you and your family may qualify for disability benefits. To be eligible,
you must be disabled for more than 6 months and unable to perform any meaningful employment.
Benefits start after a five-month waiting period and continue as long as you are fully disabled. Family
members of an eligible worker may also receive monthly benefits. Benefits are paid to children under
18 and spouses who are retired, disabled or caring for children under 16. The maximum family benefit
is 150% of the disabled individual's benefit.
Retirement Benefits
Retired workers who are age 62 or older receive retirement benefits based on earnings history. In
addition, spouse is eligible for retirement benefits based on the workers record, if that benefit exceeds
the spouse's own retirement benefit. Normal retirement age (NRA) is based on the year of birth. For
persons born before 1938, NRA is age 65; NRA gradually increases to 67 for individuals born after
1960. If you retire before your normal retirement age, your benefits will be reduced by a percentage for
each month prior to NRA. If you retire later than your normal retirement age, benefits will be increased
by a percentage up to 8% of the PIA per year.

Types of Life Insurance Policies
Life insurance is an important part of your wealth management strategy. The main purpose of buying a
life insurance policy is to protect your loved ones after your death. With appropriate life insurance
coverage, your beneficiaries may not have to worry about expenses associated with your death, and you
increase the possibility for them to maintain their lifestyle.
The market offers a wide variety of life insurance products designed to provide solutions for different
needs. Given the different characteristics of each one of the policies available, it is very important for
you to spend some time understanding the type of protection offered by each policy and their costs.
The most widely used policy types are:

• Term Life Insurance—Term insurance is used to provide death benefit protection for a set
period of time at an affordable premium.
• Whole Life Insurance—Whole life insurance policies provide permanent death benefit
protection for a fixed premium and remain in force as long as premium payments are made.
Whole life policies accumulate guaranteed cash values and often pay dividends as well. These
policies are better suited for protecting your long-term goals.
• Universal Life Insurance—Universal Life policies are also known as “Flexible Premium”
policies. These flexible policies have an adjustable benefit and accumulate account value.
Universal life insurance is used to provide death benefit protection with flexibility to adjust to
your future insurance needs.
In addition to the different types of insurance policies, there is also two different policy
categories—Fixed and Variable.
• Fixed policies—offer a predetermined death benefit and rate of return on policy values that are
guaranteed through the policy contract.
• Variable policies—are designed to provide death benefit protection but may NOT offer the
guarantees that fixed policies do. The rate of return on your policy values, as well as the death
benefit, may fluctuate up and down depending on your investment choices and performance.
Variable policies are subject to market risk and therefore require the delivery of a prospectus.
Keep in mind that in order to obtain more detailed information on how a specific life insurance policy
works, the premiums associated and any additional information, you must carefully review the policy
details and prospectus.

Life Insurance Uses
Life insurance is a fundamental tool designed to provide liquidity after your death. The proceeds
generated from a life insurance policy can be used to pay for many of the expenses associated with your
death, so that your heirs and your business partners (if applicable) are more equipped to handle
financial burdens during that difficult time.
Common Uses for Life Insurance

Protect Your Family
• Income Replacement—Life insurance can replace your income in the event of your untimely
death. Upon your death, your beneficiary would receive the death benefit proceeds and could help
your surviving spouse and children maintain the lifestyle you created for them.
• Education Funding—In the event of your premature death, life insurance can help supplement
your children’s education funds through the death proceeds of the policy and provide for them at
your death what you would have provided during your lifetime.
Final Expenses
• Funeral Expenses— There are many costs associated with funerals. These costs may include but
are not limited to cemetery plots, caskets, funeral home facilities, limousines, transportation, and
grave markers. Through life insurance, you may be able to take care of these expenses before your
death and avoid placing financial burdens on your family members.
• Medical Expenses—Illness or accidents often result in large medical bills that need to be paid
after your death. Use life insurance to help protect your family from unnecessary financial strains.
Debts
• Mortgage Protection—A mortgage is often the largest debt and largest monthly payment for the
surviving heirs, but a necessary one. Most people are not willing to give up their home, but
sometimes they are forced to for financial reasons. Insurance can help pay remaining mortgages.
• Other Loans—All individual loans must be settled at death, often using cash assets intended for
other purposes. Life insurance can help provide cash to eliminate these debts at your death.
• Consumer Debt—The balances of all individual credit cards are due at the time of death and any
jointly owned cards can no longer be used. Life insurance can help provide cash to eliminate these
debts at your death.
Charitable Contributions
• Charitable Institutions—Life insurance proceeds can be donated to a designated charity upon
death. To some, this gives the lifetime satisfaction of knowing that you are helping others and
allows you to enjoy potential tax benefits.
Estate Expenses
• Probate Fees—Probate is the legal process of ensuring that all assets are transferred to the proper
heirs and in accordance with all legal documents. Probate fees are the expenses required to handle
the legal concerns associated with death, and they can be expensive. Life insurance can help
offset these expenses and keep them from eroding away your estate and your heirs’ inheritance.
• Administrative Fees—These are usually the fees for various professional services that may be
required to settle the estate, such as legal and accounting services. Administrative fees are often
combined with probate fees.

Life Insurance Uses
Common Uses for Life Insurance
Taxes
• Property Taxes—All property taxes must be paid for the year of death.
• Income Taxes—State and federal income taxes must be paid for a portion of the year in which
death occurred. Also, income taxes are due on earnings from assets between death and the
distribution of those assets.
• Estate Taxes—For larger estates, estate taxes are due in cash within nine months of death and
can be as high as 55%. Unless Congress changes the present law, estate taxes are reduced each
year through 2009, are not in effect in 2010, and return to the 2001 rates in 2011 and thereafter.
Business
• Protecting Business Interests—Business partners or co-owners that are concerned about the
continuation of their business in the event of their partner’s premature death can use life
insurance to help protect their interests in the business. Typically, each business partner or the
business itself, purchases life insurance and upon death, the proceeds are used to buy the business
and continue operation.

Emergency Funds
Occasionally, unexpected and unplanned situations requiring cash may occur. Therefore, it is important
that you are financially prepared for these small emergencies. Keep in mind that a small emergency can
have a big effect on your cash flow. Therefore, it is important to get advice to put in place a strategy for
the unexpected.
The goal of an Emergency Fund is to have enough cash reserves to cover an unexpected need. When
the amount of cash reserves is not sufficient, assets must be sold or funds will need to be borrowed.
Emergency funds can often protect financial strategies put in place, and assist in reaching long-term
financial objectives. Emergency funds should be kept in cash or any other form of liquid assets that can
quickly provide the resources needed after a short-term financial crisis.
The standard recommendations by financial advisors are:

• Married couples: three months of combined salary PLUS 5% of total investments
• Single individuals: six months salary PLUS 5% of total investments.
The example below for married couples, illustrates an annual income of $96,000 and investments that
total $80,000. In this example, you will need approximately $24,000 (3 months of $96,000 annually) to
cover the salary portion and $4,000 (5% of $80,000) to cover the investments portion, totaling $28,000
for emergency funds.
Emergency Funds
Annual salary $96,000

Investments $80,000
Emergency funds needed $28,000
Emergency Funds Required

$30,000.00
$25,000.00
$20,000.00
$15,000.00
$10,000.00
$5,000.00
$0.00
3 months salary 5% of investments Emergency funds

Retirement Savings Goal
Objective
• Bob retires at age 65, Meredith retires at age 65
• Retirement lasts for 23 years
• Provide retirement lifestyle (80% of $137,000 current household income, adjusted for inflation)
Retirement Results
$600,000
400,000
200,000
0
70 75 80 85
Withdrawals from Assets Other Income
Social Security Additional Retirement Need
Shortfall Occurs at Bob's Age 69

Total Value of Shortfall at Retirement $2,254,019
Additional Monthly Savings Required Until Retirement

…assuming 4% $4,510 per month
assuming your average rate of return of 5.85% $3,497 per month
An Alternative Savings Strategy

Consider thinking of your savings requirement as a percentage of your current salary. This may
allow you to have a more affordable savings requirement today, but still achieve your long-term
retirement savings goal since your monthly savings amount will increase as your salary increases.
Assumed Monthly Savings This Year’s Additional
Rate of Return (as a Percent of Salary) Monthly Savings Amount
4% 27.65% $3,157
5.85% 21.62% $2,469
6% 21.18% $2,419
8% 16.02% $1,829
48%
Retirement Savings Goal Progress

0% 100%

Retirement Savings Goal Details
Amount Needed to Fund Retirement Lifestyle at Retirement $4,306,497
Retirement Period Household % of Household Annual Need Lump Sum
Based on Income Income Needed Starting at Needed at
Bob's Age Today During Retirement Retirement Retirement
65 - 87 $137,000 80% $229,478 $4,306,497
Less the Value of Retirement Income Sources at Retirement $1,184,018

Retirement Income Sources
Income Source Age When Annual Amount Lump Sum Value
During Income Annual Income When Income at Retirement of
Retirement Recipient Increase Received Source Begins Income Source
Social Security1 Bob 3% 67 $74,834 $1,184,018
Meredith 3% 67
Total Value of Assets Needed at Retirement $3,122,479

Less the Value of Existing Retirement Assets at Retirement $868,458
Monthly Value at
Retirement Plan Current Value Contributions Rate of Return Retirement
Bob $15,000 $300 5.77% $317,165
Meredith $13,500 $300 5.77% $311,068
Total Value of Retirement Plans at Retirement $628,233
Monthly Value at
Current Value Savings Rate of Return Retirement
Other Assets $15,000 $200 6.00% $240,225
Total Value of Other Assets at Retirement $240,225
Retirement Asset Shortfall at Retirement $2,254,019

Assumptions & Notes
Years Illustrated
• This presentation continues until Bob reaches age 88.
• Bob and Meredith require 80% of current household income during retirement.
1
See Assumptions & Notes section for details.
Assumptions & Notes (Continued)
• All income needs are assumed to increase at a 3% annual general inflation rate.
• Income sources and asset balances increase annually based on the rate listed on the Confirmation
of Facts page.
• All lump sum values at retirement are assumed to grow at 5% annually.
• All interest rates compounded annually with all monthly contributions for the year added at the
end of the year.
• Percent of Salary based on total household income of $137,000 this year and a 3% annual
inflation rate. This Year's Inflation Adjusted Monthly Savings Amount assumes future year
contribution amounts will increase at 3%.
• Bob's and Meredith's Social Security benefit amounts based on their current salaries and their age
when the benefit begins.

Income Assets
Bob/ Annual Salary Estimated

Year Ages Needed Income Security From Assets Shortfall Balance Shortfall
2008 40/40 $109,600 $137,000 $0 $0 $0 $43,500 $0

2009 41/41 112,888 141,110 0 0 0 55,644 0
2010 42/42 116,275 145,343 0 0 0 68,785 0
2011 43/43 119,763 149,704 0 0 0 82,989 0
2012 44/44 123,356 154,195 0 0 0 98,327 0
2013 45/45 127,056 158,821 0 0 0 114,874 0

2014 46/46 130,868 163,585 0 0 0 132,710 0
2015 47/47 134,794 168,493 0 0 0 151,921 0
2016 48/48 138,838 173,548 0 0 0 172,596 0
2017 49/49 143,003 178,754 0 0 0 194,831 0
2018 50/50 147,293 184,117 0 0 0 218,727 0

2019 51/51 151,712 189,640 0 0 0 244,394 0
2020 52/52 156,263 195,329 0 0 0 271,944 0
2021 53/53 160,951 201,189 0 0 0 301,500 0
2022 54/54 165,780 207,225 0 0 0 333,190 0
2023 55/55 170,753 213,442 0 0 0 367,151 0

2024 56/56 175,876 219,845 0 0 0 403,530 0
2025 57/57 181,152 226,440 0 0 0 442,478 0
2026 58/58 186,587 233,233 0 0 0 484,161 0
2027 59/59 192,184 240,230 0 0 0 528,751 0
2028 60/60 197,950 247,437 0 0 0 576,432 0

2029 61/61 203,888 254,860 0 0 0 627,399 0
2030 62/62 210,005 262,506 0 0 0 681,859 0
2031 63/63 216,305 270,381 0 0 0 740,032 0
2032 64/64 222,794 278,493 0 0 0 802,149 0
2033 65/65 229,478 0 0 229,478 0 670,930 0

2034 66/66 236,362 0 0 236,362 0 456,296 0
2035 67/67 243,453 0 74,834 168,619 0 302,060 0
2036 68/68 250,757 0 77,079 173,678 0 134,801 0
2037 69/69 258,280 0 79,391 134,801 44,087 0 44,087
2038 70/70 266,028 0 81,773 0 184,255 0 228,342

2039 71/71 274,009 0 84,226 0 189,783 0 418,125
2040 72/72 282,229 0 86,753 0 195,476 0 613,601
2041 73/73 290,696 0 89,355 0 201,340 0 814,942
2042 74/74 299,417 0 92,036 0 207,381 0 1,022,322
2043 75/75 308,399 0 94,797 0 213,602 0 1,235,924

2044 76/76 317,651 0 97,641 0 220,010 0 1,455,935
2045 77/77 327,181 0 100,570 0 226,610 0 1,682,545
2046 78/78 336,996 0 103,587 0 233,409 0 1,915,954
2047 79/79 347,106 0 106,695 0 240,411 0 2,156,365

Income Assets
Bob/ Annual Salary Estimated

Year Ages Needed Income Security From Assets Shortfall Balance Shortfall
2048 80/80 357,519 0 109,896 0 247,623 0 2,403,988

2049 81/81 368,245 0 113,193 0 255,052 0 2,659,040
2050 82/82 379,292 0 116,589 0 262,704 0 2,921,744
2051 83/83 390,671 0 120,086 0 270,585 0 3,192,329
2052 84/84 402,391 0 123,689 0 278,702 0 3,471,031
2053 85/85 414,463 0 127,400 0 287,063 0 3,758,095

2054 86/86 426,897 0 131,222 0 295,675 0 4,053,770
2055 87/87 439,704 0 135,158 0 304,546 0 4,358,315

Education Savings Goal
Objective
Robbie: Provide 100% of the total cost of Clemson University ($27,014 this year) for 4 years
Sarah: Provide 100% of the total cost of The University of North Carolina at Chapel Hill ($27,527
this year) for 4 years
Annual Funds
Annual Funding Funding Current Start Number Needed
Name Amount Goal Amount Age at Age of Years Today
Robbie $27,014 100% $27,014 10 18 4 $118,244
Sarah $27,527 100% $27,527 6 18 4 $125,146
Your Current Education Savings

Current Amount: $0 assuming a 5.00% rate of return
Monthly Contributions: $0.00
Education Funding Details

$90,000
60,000
30,000
2016 2021
Education Assets Education Shortfall

Total Value Today of Education Funding Needs $243,390
Education Funds Needed Today $243,390

Monthly Education Savings Required $1,954
An Alternative Savings Strategy

Consider thinking of your savings requirement as a percentage of your current salary. This may
allow you to have a more affordable savings requirement today, but still achieve your long-term
education savings goal since your monthly savings amount will increase as your salary increases.
Monthly Savings Required (as a Percent of Salary) 13.5%

This Year’s Additional Monthly Savings Amount $1,542
0%
Education Savings Goal Progress

0% 100%

Disability Needs Goal
Assumes Bob Becomes Disabled Today
Objective
• Provide for 60% of your current salary ($75,000) if you become disabled today.
Your Disability Statistics

Bob, before your age 65, a long-term disability is 2.82 times more likely to occur than death!1
Assuming your Cost of Disability (in Terms of Lost Salary)

salary increases at… 2 Year 3 Year 5 Year 15 Year To Age 67
0% $150,000 $225,000 $375,000 $1,125,000 $2,025,000
2% $151,500 $229,500 $390,300 $1,296,975 $2,650,800
4% $153,000 $234,150 $406,200 $1,501,800 $3,531,300
If You Become Disabled Today

100%
Current Annual Salary $75,000

75%
Percent of Salary Needed During Disability 60%
50%
Annual Income Needed $45,000
less Annual Disability Income Benefit $0
25%
Additional Annual Income Needed $45,000
0%
Not Everyone Qualifies for Social Security Disability Benefits

Just being eligible for Social Security benefits is not enough. In order to qualify for Social Security
disability benefits, you must NOT be able to perform ANY substantial employment. If you qualify,
benefits begin after a full five-month waiting period and continue as long as you remain disabled. You
should carefully consider the likelihood of receiving Social Security disability benefits when
determining your disability needs.
Additional Annual Income Needed $17,340

(Assuming potential annual Social Security Disability Benefits of $27,660)
0%
Disability Needs Goal Progress

0% 100%
1
Based on a disability expected to last more than 2 years following a 60 day elimination period (see “Assumptions & Notes”
section).
Disability Needs Goal Details
Your First Year of Disability

Beginning of Monthly Monthly Disability Potential Social Additional
Month Income Need Policy Benefit Security Benefit Income Needed
1 $3,750 $0 $0 $3,750
2 3,750 0 0 3,750
3 3,750 0 0 3,750
4 3,750 0 0 3,750
5 3,750 0 0 3,750
6 3,750 0 2,305 1,445
7 3,750 0 2,305 1,445
8 3,750 0 2,305 1,445
9 3,750 0 2,305 1,445
10 3,750 0 2,305 1,445
11 3,750 0 2,305 1,445
12 3,750 0 2,305 1,445
Additional Income Needs in Year 1 (With Social Security) $28,862

Additional Income Needs in Year 1 (With NO Social Security) $45,000
Assumptions & Notes

Assumed Disability
• This presentation assumes Bob becomes disabled immediately.
• Bob will require 60% of current household income during disability.
Disability versus Death Probability
• The probabilities of dying before age 65 are based on the 1990-1995 U.S. Basic Male and Female
Tables (Age Nearest Birthday) developed by the Society of Actuaries. The probabilities of
becoming disabled before age 65 are based on the 1985 Commissioner's Individual Disability A
Tables for occupation class 1 (white collar) and a 60-day elimination period. Disability is
assumed to last at least two years or longer.
• Bob's Social Security benefit amount is based on his current salary.

Disability Needs Goal Details
Income Shortfall
Annual Estimated Disability Annual

Bob's Income Social Policy Annual Shortfall Shortfall
Year Age Needed Security Benefit Shortfall No SS (% of Salary)
2008 40 $45,000 $16,138 $0 $28,862 $45,000 60

2009 41 46,350 28,495 0 17,855 46,350 60
2010 42 47,740 29,349 0 18,391 47,740 60
2011 43 49,173 30,230 0 18,943 49,173 60
2012 44 50,648 31,137 0 19,511 50,648 60
2013 45 52,167 32,071 0 20,096 52,167 60

2014 46 53,732 33,033 0 20,699 53,732 60
2015 47 55,344 34,024 0 21,320 55,344 60
2016 48 57,005 35,045 0 21,960 57,005 60
2017 49 58,715 36,096 0 22,619 58,715 60
2018 50 60,476 37,179 0 23,297 60,476 60

2019 51 62,291 38,294 0 23,996 62,291 60
2020 52 64,159 26,295 0 37,864 64,159 60
2021 53 66,084 27,084 0 39,000 66,084 60
2022 54 68,067 27,897 0 40,170 68,067 60
2023 55 70,109 28,734 0 41,375 70,109 60

2024 56 72,212 29,596 0 42,616 72,212 60
2025 57 74,378 30,484 0 43,895 74,378 60
2026 58 76,609 31,398 0 45,211 76,609 60
2027 59 78,908 32,340 0 46,568 78,908 60
2028 60 81,275 33,310 0 47,965 81,275 60

2029 61 83,713 34,310 0 49,404 83,713 60
2030 62 86,225 35,339 0 50,886 86,225 60
2031 63 88,811 36,399 0 52,412 88,811 60
2032 64 91,476 37,491 0 53,985 91,476 60
2033 65 94,220 38,616 0 55,604 94,220 60

2034 66 97,047 39,774 0 57,272 97,047 60

Disability Needs Recommendation
Objective
• Provide for 60% of your current salary ($75,000) if you become disabled today.
Proposed New Disability Policies

Monthly Monthly Elimination Benefit
Description Type Premium Benefit Period Period COLA
Proposed DI Policy Individual $500.00 $3,000 90 Days Age 65 0%
Annual Disability Income Annual Disability Income

With No New Disability Insurance With New Disability Insurance
100% 100%
75% 75%
50% 50%
25% 25%
0% 0%
Disability Income Shortfall Current Salary
Summary of Disability Income Needs

Additional Annual Income Needed $0
less Proposed New Annual Disability Income $36,000
Annual Disability Income Needs Left Unfunded $9,000
80%
Disability Needs Goal Progress

0% 100%

Important Information
This is a "blank slate" page advisors can use to customize the presentation for their clients.

Action Items
Procrastination and inaction are two of the biggest reasons why goals are never achieved. Start
achieving your goals today! And don't forget to review your progress each year.
Achieve Your Survivor Needs Goals

1. Get a Complete Illustration or Sales Information
Before purchasing any new insurance or making any other investment, review a complete,
company-provided illustration, prospectus, or other sales materials.
2. It’s Not All About Money!
Your survivors need to know your wishes and thoughts for their future. An easy to understand
document stating your wishes should accompany any legal documents you keep safe for your
loved ones. In fact, a copy of this presentation may serve this purpose when stored with your
important papers.
3. Review Your Will
At your death, will your remaining property be distributed according to your desired plans? If you
don't have a will, the state will make many of these decisions for you. Will your executor still be
able to serve? Have you named the trustees and/or guardians to look after your dependents and
their assets? Is your will consistent with your other plans, especially your estate planning?
Achieve Your Retirement Goals

1. Choose Funding Option
Determine which retirement funding option(s) are appropriate for you based on the available tax
incentives and the flexibility of each option.
2. Start Saving Now
Set up a systematic savings program to ensure your retirement funding goals are achieved.
3. Determine Your Investments
Work with your advisor to determine the most suitable investment options for you based on your
feelings regarding potential investment risk and returns.
Achieve Your Education Goals

1. Choose Funding Option
Determine which education funding option(s) are appropriate for you based on the available tax
incentives and the flexibility of each option.
2. Start Saving Now
Set up a systematic savings program to ensure your education funding goals are achieved.
3. Determine Your Investments
Work with your advisor to determine the most suitable investment options for you based on your
feelings regarding potential investment risk and returns.
Achieve Your Disability Needs Goals

1. Consider Your Options
Review all current government or employer funded disability income sources for potential
benefits, problems and tax implications.
2. Get a Complete Illustration or Sales Information
Before purchasing any new insurance or making any other investment, review a complete,
company-provided illustration, prospectus, or other sales materials.

Assumptions
Meredith Survivor Needs Goal Assumptions & Notes
Assumed Years of Death
• This presentation assumes Meredith dies immediately and Bob dies at age 88.
• Bob will require 70% of current household income while the children are at home. When the
youngest child turns 18, Bob will require 60% of current household income.
• Education costs are assumed to increase at a 6% annual inflation rate.
• All other living expenses are assumed to increase at a 3% annual inflation rate.
• All lump sum values in today's dollars are assumed to grow at 5% annually.
• Bob and Meredith's Social Security benefit amounts based on their current salaries. Social
Security survivor benefit ends when youngest child turns 16, however children's benefits are paid
until age 18. Social Security retirement benefit begins at Bob's age 67. No Social Security
benefits will be paid if there are years after the youngest child turns 18, but before Bob's age 67.
Education Savings Goal Assumptions & Notes

• Education costs inflation rate: 6%
• Education savings rate of return: 5.00%
• Current and additional savings begin today and continue until the start of the last dependent’s
final year of education.
• All interest rates compounded annually with all monthly contributions for the year added at the
end of the year.
• Percent of Salary based on total household income of $137,000 this year and a 3% annual
inflation rate. This Year's Additional Monthly Savings Amount assumes future year contribution
amounts will increase at 3%.
Meredith Disability Needs Goal Assumptions & Notes

Assumed Disability
• This presentation assumes Meredith becomes disabled immediately.
• Meredith will require 60% of current household income during disability.
Disability versus Death Probability
• The probabilities of dying before age 65 are based on the 1990-1995 U.S. Basic Male and Female
Tables (Age Nearest Birthday) developed by the Society of Actuaries. The probabilities of
becoming disabled before age 65 are based on the 1985 Commissioner's Individual Disability A
Tables for occupation class 1 (white collar) and a 60-day elimination period. Disability is
assumed to last at least two years or longer.
• Meredith's Social Security benefit amount is based on her current salary.


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Survivor Needs Goal

Monthly Savings Goal for Retirement

Monthly Savings Goal for Education

Disability Income Needs Goal

Presented by: John Q. Advisor, CLU, ChFC August 30, 2007

Presented by: John Q. Advisor, CLU, ChFC August 30, 2007

Disability Income Goal

Presented by: John Q. Advisor, CLU, ChFC August 30, 2007

Bob's Survivor Needs Goal

Meredith's Survivor Needs Goal

Retirement Savings Goal

Education Savings Goal

Bob's Disability Needs Goal

Presented by: John Q. Advisor, CLU, ChFC August 30, 2007

Presented by: John Q. Advisor, CLU, ChFC August 30, 2007

Immediate Cash Needs Due at Bob's Death

Continuing Income Needs for Meredith

Total Survivor Needs $1,503,621

34% 35% Bob's Retirement Assets $15,000

Remaining Survivor Needs1,2 $1,460,121

Survivor Needs Goal Progress

Immediate Cash Needs Due at Bob's Death $462,640

Continuing Income Needs for Meredith $1,040,981

Survivor Income Sources

Assumptions & Notes

Annual Salary Estimated

2008 40 $95,900 $62,000 $27,665 $0 $6,235 $0 $6,235

2013 45 111,174 71,875 32,071 0 7,229 0 40,333

2018 50 128,882 83,323 18,589 0 26,969 0 134,021

2023 55 128,065 96,594 0 0 31,471 0 282,290

2028 60 148,462 111,979 0 0 36,483 0 454,386

2033 65 172,109 0 35,471 0 136,637 0 748,235

2038 70 199,521 0 44,766 0 154,755 0 1,479,848

2043 75 231,299 0 51,896 0 179,403 0 2,326,111

Presented by: John Q. Advisor, CLU, ChFC August 30, 2007

Annual Salary Estimated

2048 80 268,140 0 60,162 0 207,977 0 3,307,161

2053 85 310,847 0 69,744 0 241,103 0 4,444,467

Presented by: John Q. Advisor, CLU, ChFC August 30, 2007

Proposed New Life Insurance $1,500,0001

Remaining Survivor Needs Remaining Survivor Needs

Summary of Survivor Needs

Survivor Needs Goal Progress

Immediate Cash Needs Due at Meredith's Death

Continuing Income Needs for Bob

Total Survivor Needs $1,290,676

Remaining Survivor Needs1,2 $1,197,176

Survivor Needs Goal Progress

Proposed New Life Insurance $800,0001

Remaining Survivor Needs Remaining Survivor Needs

Summary of Survivor Needs

Survivor Needs Left Unfunded $397,176

Survivor Needs Goal Progress

Presented by: John Q. Advisor, CLU, ChFC August 30, 2007

The most widely used policy types are:

Presented by: John Q. Advisor, CLU, ChFC August 30, 2007

Common Uses for Life Insurance

Presented by: John Q. Advisor, CLU, ChFC August 30, 2007

Presented by: John Q. Advisor, CLU, ChFC August 30, 2007

The standard recommendations by financial advisors are:

Annual salary $96,000

Emergency Funds Required