Skybox Financial Group Financial Consultants

Bradenton, FL

Frank and Joanna Example June 3, 2016

Prepared by: Cameron Parsons

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Welcome! Included is your personal, unified and consolidated summary that tells your entire financial story and gives you the clarity and confidence you need to successfully control your financial future.

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Your Plan for Success

My story

At age 8, my grandfather opened my first investment account. I experienced many ups and downs but received valuable lessons in return. We held the fort when it got rough and understood that short term changes in value were irrelevant to my long-term goals. I will always cherish those moments with 'Pap-Pap' and the life lessons learned. My grandfather fueled a love in me as a youngster and showed the value of helping and teaching others the importance of wealth accumulation and preservation. It's with this mindset I dedicate myself to clients, only taking on those who I can make a difference for.

Financial consulting and wealth management isn't just my job - it's my passion

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Your Plan for Success

My Approach

My client-first approach to financial coaching and advising is forged from a genuine passion of helping others. My lifelong ambition to serve was procured over time as a tutor, mentor, coach, and a charity board member. I promise to act as your fiduciary with your best interest in mind, be there for every step, coach you in every facet of your financial life, and provide you with the best chance of living a life in financial independence.

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Overview: Our Gameplan

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Week 1: Monthly Cash Flow Plan

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SAVING Budgeted Actual Spent

Emergency Fund -$ -$

Retirement Fund -$ -$

College Fund -$ $ -

-$ -$

HOUSING Budgeted Actual Spent

Mortgage/Rent -$ -$

Real Estate Taxes -$ $ -

Repairs/Maintenance -$ $ -

Association Dues -$ -$

-$ -$

UTILITIES Budgeted Actual Spent

Electricity -$ -$

Gas -$ -$

Water -$ $ -

Trash -$ -$

Phone/Internet/Cable -$ -$

-$ -$

INSURANCE Budgeted Actual Spent

Life Insurance -$ -$

Health Insurance -$ -$

Homeowner/Renter -$ $ -

Auto Insurance -$ -$

Disability Insurance -$ -$

-$ -$

PERSONAL Budgeted Actual Spent

Child Care/Sitter -$ -$

Toiletries -$ -$

Cosmetics -$ $ -

Education/Tuition -$ -$

Subscriptions/Dues -$ $ -

Gifts -$ -$

-$ -$

MEDICAL/HEALTH Budgeted Actual Spent

Medication/Supplements -$ -$ Doctor Bills -$ -$

-$ -$

TRANSPORTATION Budgeted Actual Spent

Car Payment -$ -$ Gas -$ -$

-$ -$

FOOD Budgeted Actual Spent

Groceries -$ -$ Restaurants -$ -$

-$ -$

RECREATION Budgeted Actual Spent

Entertainment -$ -$ Vacation -$ -$

-$ -$

AMOUNT BUDGETEDAMOUNT SPENT

REMAINING

-$

-$ -$

Week 2: What Matters to You

Frank’s Priorities Notes Date:

Joanna’s Priorities

Planning for retirement

Managing a budget

Maximizing Investments

Creating retirement income

Saving for major purchases

Saving for children’s college

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Frank’s goal is to retire at age 66 Frank wants to tighten discretionary spending as retirement approaches Frank’s goal is 4-6% annual returns in their accounts

Joanna wants to live comfortably by creating income from their investments Joanna’s goal is to buy a vacation home in North Carolina Joanna wants to ensure all three children’s education will be taken care of

Snapshot: Goals & Assumptions

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Retirement Income Pension $12,000 Survivor Pension $8,000 Social Security $26,000 Social Security $15,000 Annuity $14,000 IRA Distributions $34,000 Rental Property $18,000

Portfolio Allocation 60/40 Stock

Legacy To Heirs $ 750,000 To Charity $ 25,000

Week 3: Investment portfolio review

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Investment Recommendations: 1. Rollover Frank’s 401k under Skybox Financial custody. Invest in ETF Moderate

Model Portfolio 2. Reallocate Joanna’s Roth IRA to match long-term goals. - Recommendation: Income Model (20 companies with 3% or higher dividends) 3. Invest joint account in ETF Growth Model for long-term growth

Week 3: Portfolio review

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Week 3: New Strategy

Priority Actions Status Life Insurance Life insurance needs are met through Frank’s career if any unexpected

circumstances arise.

Disability/LTC Care

Health Care Health care options will be discussed prior retirement. Supplemental insurance needed.

Family Health Concerns Family health is good as of today.

Financial Document Filing

Dependent Support Supported by life insurance and 529 education plans.

Emergency Fund $25,000 kept in account for emergencies

Retirement Accounts Rollover Frank’s 401(k) at retirement. Verify strategy at that time.

Guaranteed Income Frank’s Pension is the only guaranteed income. A fixed annuity may be viable for the Example’s to provide safety and guaranteed income.

Budget Review Budget has been prepared. Review goals quarterly.

Asset Consolidation For efficient planning, assets should be consolidated under our firm with TD Ameritrade custody.

Major Purchases Vacation home in North Carolina.

Tax Guidance We have aligned with your CPA and will review in January.

Will/Trust A trust has been suggested.

Charitable Giving

Education Savings 529 plans are set up and invested appropriately.

Personal Interests Funding

Estate Planning All documents are titled correctly, a trust has been suggested to avoid probate.

Balance Sheet In good order.

Cash Flow Cash flow is positive. Will need to review at retirement.

What-If Scenarios What if scenarios have been conducted as today. With investment and planning agreement, these scenarios will be handled by our team as they arise in your lives.

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A successful retirement is the highest financial priority for many people. Because of the long-term nature of retirement and all of the variables that go into determining potential success or failure, it is often the most difficult financial goal for which to plan. Items to consider when creating a retirement plan:

Longevity Retirement is roughly 15 years away. At age 65, we anticipate retirement lasting another 20-25 years.

Expenses and Inflation Inflation is always a powerful enemy in any retirement plan, especially when it’s expected to last as long as yours. Your living expenses could increase multiple times over a long retirement. We will keep in mind that certain expenses (medical) could outpace inflation.

Income Frank’s pension will be the substantial retirement income. When elected, your social security income will be an additional layer of protection. Another goal of ours is to draw income from your investment portfolios to supplement your major income.

Withdrawals Frank’s pension will limit the amount we need to withdrawal, allowing us to build up the accounts. A generally accepted withdrawal rate is 4%, but we will look to limit that in the early years. At age 70 ½, RMD withdrawals will need to be taken on the IRA’s.

Asset Allocation We will set you up with a reasonably balanced asset allocation to match your risk tolerance and goals. It’s especially important near retirement to ensure that nest egg is correctly invested. Your proper allocation at retirement will be on that that balances income and growth.

Other Goals Other financial goals (purchasing a vacation home or subsidizing your parents’ care for example) will impact your retirement. This analysis will take into account any other goals you have defined.

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Week 4: How we reach your goals

Week 4: Retirement Options

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Week 4: Life Insurance

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As previously mentioned, your family is well protected against an early loss of income to both Frank and Joanna. For both spouses, the surviving spouse is set as the beneficiary. We have ensured your policies are titled correctly that if anything were to happen to the both of you, the money would be split between your children. It is recommended that a trust is formed by your lawyer that will spell out directions and wishes at that time.

Week 4: Projecting Income

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Week 5: Preparing for the unexpected

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The only concern with your family would be if Long Term Care was needed for an extended period of time. This is not a very common experience in retirement and your family is still well positioned if it were to occur. This event would cause 10 years of your family paying $50,000 annually in today’s dollars for the care. Options would be leaving your insurance as is and self-funding if/when the time comes or adding LTC insurance. LTC insurance could be added soon or down the road. Depending on your comfort and needs, we will discuss in full any and all options.

Week 5: Estate Planning

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Below is your current estate flow chart. We will work together to ensure all of your wants are met when that time comes. We will discuss all options and make this difficult and uncomfortable time in your lives as seamless as possible.

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Financial Consultation Workshop: Findings and

Suggestions

Congratulations! You’ve worked hard to get yourselves in a great position. With the goals you have in place, assuming average projections , you will be financially independent when your time comes to retire. Below is a report of our findings. Thank you for entering this 6 week workshop and we look forward to growing our relationship in the future.

• A consolidation of your various accounts will bring simplicity and comfort to you, as

well as provide a clearer view of your entire portfolio. Using eMoney Advisor as a tool to be your central hub of information will provide you with access to your retirement cash flow and expenses, adjusting and making changes as needed. This process has begun with the initial aggregation of your accounts during week 1.

• Frank’s 401k account will be rolled over to an IRA under our management at

retirement. We will reallocate Joanna’s Roth IRA and the joint account to match your long-term goals

• These accounts under our management will reflect your risk tolerance and will be a

vehicle to create growth and a steady investment income stream throughout retirement. The details of the account’s holdings will be discussed in our next meeting to ensure the portfolio is within the bounds of your risk tolerance, using the information you provided in the Riskalyze questionnaire.

In conclusion, the financial wealth plan provided will be a moving target as different situations occur in your retirement. As the changes come, we will work together to

update the plan to ensure we stay on course. We will also have the ability to see how these various scenarios impact your financial future and be able to make the decisions

that benefit your family the most. Thank you for your trust, Cameron Parsons

Week 6: Consultation Review