Financial Needs Analysis

Ben and Jen Woodmen 123 Sunset Blvd Rock Island, IL 61201

Presented by:

Mr. Ryan L. Phillips, FIC 12/09/2013

Table of Contents
Introduction Personal Information Summary Financial Needs - Client A Dies Survivor Needs Analysis Detail - Client A Dies Financial Needs - Client B Dies Survivor Needs Analysis Detail - Client B Dies College Needs Analysis College Needs Analysis Detail Retirement Analysis Retirement Needs Analysis Details Your Retirement Timeline 1 3 5 6 8 9 11 12 13 14 15

Profiles Forecaster

Ben and Jen Woodmen

Introduction
When thinking about your future financial security, it is important to set goals, initiate action, and periodically review your progress. Remember...a sound financial strategy can be more important than a lifetime of work! This analysis uses the information you have shared about your current financial situation and your goals for the future. The following pages analyze your needs: In the event of death For college funding For your retirement years

Understanding your needs

...can help reach your goals.

Important Note...
This illustration is based on the information you provided with regard to your financial needs and objectives. It is intended to provide only broad, general guidelines which may be helpful in assessing and making decisions about financial products (such as securities or insurance) and services available to you that may help meet those needs and objectives. This material may also contain general educational topics about investing and financial matters. It is most important that you understand that your actual experience will differ from this illustration. That is why you should reassess your situation with updated data and assumptions on a periodic basis. This illustration estimates future asset values based on rates of return provided by you. It is not intended to be investment advice or a projection of future investment performance. No one can foresee the future and, it is not a projection of the potential return of any investment, nor is it a projection of future inflation rates or the state of the world or domestic economy. You should seek the guidance of a financial or investment professional before proceeding with an investment decision. Although this illustration may contain income tax calculations and legal concepts, it does not constitute tax or legal advice. The application of some concepts may be considered practicing law and should, therefore, be handled by an attorney, while other concepts may require the guidance of a tax or accounting advisor.

Continued...

Page 1 of 15 Modern Woodmen of America

Presented by: Mr. Ryan L. Phillips, FIC December 9, 2013

Profiles Forecaster

Ben and Jen Woodmen

In creating the illustration certain assumptions were made with respect to investment returns, the economy, and your situation. The reports and graphics included are directly dependent on the quality and the accuracy of the data and assumptions (including rates of return) furnished by you.

Where future rates of return are assumed, these returns do not reflect the fees and charges associated with investments, which would reduce the results. You are encouraged to review and consider performance information, which you can request from your investment professional, for the mutual funds and other securities that may be referenced in this material when assuming any future rates of return. Keep in mind that past performance is not a guarantee of future results. A current prospectus must be read carefully when considering any investment in securities. No liability is assumed resulting from the use of the information contained in this financial illustration. Responsibilities for financial decisions are assumed by you.

Page 2 of 15 Modern Woodmen of America

Presented by: Mr. Ryan L. Phillips, FIC December 9, 2013

Profiles Forecaster

Ben and Jen Woodmen

Personal Information Summary

This financial needs analysis report is based on the information and assumptions you provided.
Personal Data
Name Ben Woodmen Jen Woodmen Married: Yes Date of Birth 01/20/1982 02/16/1984 Contributing to Social Security Yes Yes Annual Employment Income $76,000 $25,000

Address 123 Sunset Blvd Rock Island, IL 61201 E-Mail benandjen@abc.com

Phone:

(309) 109-8765

Occupation
Ben: Buildings Plus, Inc. Engineer (309) 109-8765 Jen: Sunnyside School Dist. Teacher (309) 567-8910

Children
Name Ricky Lucy Date of Birth 02/04/2006 12/25/2008

Bank Accounts and Investments

Owner Ben Total Monthly Savings... Average Rate of Return.. Asset Name Bank Savings $7,000 $0 1.50% Amount $7,000 Rate of Return 1.50% Monthly Savings $0 Savings Increase 0.00%

Retirement Funds
Owner Ben Jen Total Monthly Savings... Average Rate of Return.. $43,500 $484 6.91% Asset Name 401K TSA Amount $36,000 $7,500 Rate of Return 7.00% 6.50% Monthly Savings $380 $104 Savings Increase 3.00% 3.00% Company Match $190 $0

Assets and Liabilities

Type Residence Personal Property Personal Property Personal Property Credit Cards & Personal Loans Credit Cards & Personal Loans Credit Cards & Personal Loans Name US Bank Camper Check Account Vehicle Credit Card Student Loan Vehicle Market Value $135,000 $4,000 $2,500 $8,000 $0 $0 $0 Current Liability $110,000 $0 $0 $0 $2,000 $7,000 $6,000 Monthly Payment $750 $0 $0 $0 $50 $290 $250 Interest Rate 5.00% 0.00% 0.00% 0.00% 10.50% 6.00% 7.00%

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Presented by: Mr. Ryan L. Phillips, FIC December 9, 2013

Profiles Forecaster

Ben and Jen Woodmen

Other Income Sources

Name Ben Description Pension Plan Amount $2,216 Monthly/ Lump Sum Monthly Begins at Age 65 Ends at Age 65 Annual Increase 3.00% Today's Value/ Future Value Today's Available for Survivors Yes

Needs In The Event Of Death

Income Needs Objective With children at home: No children at home: Age to begin Survivor's Social Security Retirement Benefits Provide Income for Fund Children's Education $6,313 per month (75.00% ) $6,313 per month (75.00% ) 67

15 years Yes

Life Insurance Policies

Name Ben Ben Jen Jen Company Group Prudential Group Prudential Insurance Benefit $76,000 $100,000 $20,000 $10,000 Annual Premium $0 $240 $0 $0 Type Group Term Group Whole Life

College Funding
Child's Name Ricky Lucy Total Funds Presently Available $14,000 Monthly Savings $100 School Unknown Unknown Rate of Return 4.00% Annual Amount (in Today's Dollars) $10,000 $10,000 Years Needed 4 4 Percent Want To Provide 60% 60%

Retirement Needs
Desired Retirement Age Social Security Retirement Benefits Begin Age Employer Offers Retirement Plans Maximum amount being contributed Percentage of pre-retirement income during retirement Ben 65 67 Yes No 75.00% Jen 63 67 Yes No

Assumptions Used In This Analysis

Rate of Return on Assets During Retirement.... In the Event of Death... For College Needs....... Number of month's income to set aside for emergency reserves.... Long-term inflation rate. Social Security inflation rate. Long-term inflation rate for College Costs... Life expectancy age. Final Expenses.... 6.00% 6.00% 4.00% 3 4.00% 4.00% 6.00% 90 $10,000

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Presented by: Mr. Ryan L. Phillips, FIC December 9, 2013

Profiles Forecaster

Ben and Jen Woodmen

Financial Needs in the Event of Ben's Death

This survivor needs analysis shows the impact Ben's death can have on your family. Funds need to be available for both Cash Needs and a family's continuing Income Needs. Ben and Jen, you need $222,959 for your immediate cash needs. Cash Needs include: A Final Expenses fund for medical, legal, funeral, and other expenses A Debt Payment Fund to pay off your debts, including your mortgage An Emergency Reserve Fund for unexpected bills not readily payable from current income An Education Fund to provide for your children's education

Total Immediate Cash Needs: $222,959

Final Expenses Fund Debt Payment Fund Emergency Fund Education Fund

$10,000 $125,000 $25,250 $62,709

After a death, income generally comes from four different sources: Social Security Savings and Investments Life Insurance Proceeds Survivor's Earnings

Total Income Needs: $163,831

Annual Income Desired
$140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 29 31 33 35 37 39 41 43

You indicated that 75% of total household income will be needed after the death of a wage earner while there are children at home, and 75% thereafter. Based on the above assumptions, this survivor needs analysis suggests that you may not meet your goals. Your current household income is $101,000. If Ben were to die today, it is estimated that your assets would be sufficient to meet your family's Immediate Cash Needs. However, your family's Income Needs will only be 85% satisfied. To provide for your family's needs in the event of death for 15 years you will need approximately $146,291 of additional capital.

Jen's Age
Deficit Capital Withdrawals Social Security Other Income

Summary Cash Needs: Income Needs: Less Present Funds Additional Capital Needs $222,959 163,831 240,500 $146,291

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Presented by: Mr. Ryan L. Phillips, FIC December 9, 2013

Profiles Forecaster

Ben and Jen Woodmen

Survivor Needs Analysis Detail

In the Event of Ben's Death
Assumptions
Income Replacement % of Total Household Income with Dependents Income Replacement % of Total Household Income without Dependents Inflation Survivor Rate of Return Age to begin Jen's Social Security Retirement Benefits Number of years to provide income 75% 75% 4.00% 6.00% 67 15

Income Objective
Jen's Age 29 43 Income Need % 75% 75% Annual Need (Today's Dollars) $75,750 75,750 Annual Need (Future Dollars) $75,750 131,174 Capital Value $915,127 56,498

Total Capital Needed to Provide Income Objective Income Sources

Jen's Income Sources Employment Social Security Payment In Today's Dollars $25,000 44,291 From 29 29 To 44 43 COLA 4.00% 4.00% First Year's Payment $25,000 44,291

$971,624

Capital Value $320,668 487,125

Total Income Sources

$807,793

Capital Needed to Meet Income Goals

Immediate Cash Needs
Final Expenses Debt Payment Fund Mortgage Credit Card Student Loan Vehicle Emergency Reserve Fund Education Fund Ricky: Lump Sum needed today $6,000 needed for 4 years starting in 11 years. Lucy: Lump Sum needed today $6,000 needed for 4 years starting in 14 years.

$163,831
$10,000 $125,000 110,000 2,000 7,000 6,000 $25,250 $62,709 $30,459 $32,250

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Presented by: Mr. Ryan L. Phillips, FIC December 9, 2013

Profiles Forecaster

Ben and Jen Woodmen

Total Immediate Cash Needs

$222,959

Total Capital Needed to Meet Objectives

Capital Available
Asset Name Education Funds Bank Savings 401K TSA Life Insurance

$386,791

Market Value $14,000 7,000 36,000 7,500 176,000

Total Capital Available

$240,500

Additional Capital Needed to Meet Objectives

$146,291

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Presented by: Mr. Ryan L. Phillips, FIC December 9, 2013

Profiles Forecaster

Ben and Jen Woodmen

Financial Needs in the Event of Jen's Death

This survivor needs analysis shows the impact Jen's death can have on your family. Funds need to be available for both Cash Needs and a family's continuing Income Needs. Ben and Jen, you need $222,959 for your immediate cash needs. Cash Needs include: A Final Expenses fund for medical, legal, funeral, and other expenses A Debt Payment Fund to pay off your debts, including your mortgage An Emergency Reserve Fund for unexpected bills not readily payable from current income An Education Fund to provide for your children's education

Total Immediate Cash Needs: $222,959

Final Expenses Fund Debt Payment Fund Emergency Fund Education Fund

$10,000 $125,000 $25,250 $62,709

After a death, income generally comes from four different sources: Social Security Savings and Investments Life Insurance Proceeds Survivor's Earnings

Total Income Needs: $0

Annual Income Desired
$160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 31 33 35 37 39 41 43 45

You indicated that 75% of total household income will be needed after the death of a wage earner while there are children at home, and 75% thereafter. Based on the above assumptions, this survivor needs analysis suggests that you may not meet all of your goals. Your current household income is $101,000. If Jen were to die today, it is estimated that your assets would be insufficient to meet your family's Immediate Cash Needs. Your family's income needs will be satisfied for 15 years. To provide for your family's needs in the event of death you will need approximately $128,459 of additional capital.

Ben's Age
Social Security Other Income

Summary Cash Needs: Income Needs: Less Present Funds Additional Capital Needs $222,959 0 94,500 $128,459

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Presented by: Mr. Ryan L. Phillips, FIC December 9, 2013

Profiles Forecaster

Ben and Jen Woodmen

Survivor Needs Analysis Detail

In the Event of Jen's Death
Assumptions
Income Replacement % of Total Household Income with Dependents Income Replacement % of Total Household Income without Dependents Inflation Survivor Rate of Return Age to begin Ben's Social Security Retirement Benefits Number of years to provide income 75% 75% 4.00% 6.00% 67 15

Income Objective
Ben's Age 31 45 Income Need % 75% 75% Annual Need (Today's Dollars) $75,750 75,750 Annual Need (Future Dollars) $75,750 131,174 Capital Value $915,127 56,498

Total Capital Needed to Provide Income Objective Income Sources

Ben's Income Sources Employment Social Security Payment In Today's Dollars $76,000 19,095 From 31 31 To 46 45 COLA 4.00% 4.00% First Year's Payment $76,000 19,095

$971,624

Capital Value $974,831 208,491

Total Income Sources

$1,183,322

Capital Needed to Meet Income Goals

Immediate Cash Needs
Final Expenses Debt Payment Fund Mortgage Credit Card Student Loan Vehicle Emergency Reserve Fund Education Fund Ricky: Lump Sum needed today $6,000 needed for 4 years starting in 11 years. Lucy: Lump Sum needed today $6,000 needed for 4 years starting in 14 years.

$0
$10,000 $125,000 110,000 2,000 7,000 6,000 $25,250 $62,709 $30,459 $32,250

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Page 9 of 15 Modern Woodmen of America

Presented by: Mr. Ryan L. Phillips, FIC December 9, 2013

Profiles Forecaster

Ben and Jen Woodmen

Total Immediate Cash Needs

$222,959

Total Capital Needed to Meet Objectives

Capital Available
Asset Name Education Funds Bank Savings 401K TSA Life Insurance

$222,959

Market Value $14,000 7,000 36,000 7,500 30,000

Total Capital Available

$94,500

Additional Capital Needed to Meet Objectives

$128,459

Page 10 of 15 Modern Woodmen of America

Presented by: Mr. Ryan L. Phillips, FIC December 9, 2013

Profiles Forecaster

Ben and Jen Woodmen

College Needs Analysis

Will you have enough money when it is time to send your children to college? The earlier you begin setting money aside for college, the more likely you are to achieve your goals. You currently have $14,000 set aside and you are saving $100 a month at 4.00% for college expenses. This college needs analysis suggests that you may not meet your goals. In order to fully fund your children's college expenses, you will need to begin saving an additional $227 a month. Deficit Savings and Investments $30,000 Annual Need $25,000 $20,000 $15,000 $10,000 $5,000 $0 1 2 3 4 5 College Years 6 7

Projected College Costs Ricky Lucy Total $49,826 59,344 $109,169

Total College Cost in Today's Dollars

$30,459

$32,250

Why should you begin preparing for college needs now? If you wait until it's time for college to begin, you lose the advantage of spreading the costs over many years. If you have to borrow money to pay for college, the amount of the loan and interest will have to be repaid. If you start now, the interest earned on your savings will reduce the total amount that you need to save.

Ricky

Lucy

Monthly savings alternative Begin saving an additional $227 per month for the next 17 years.

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Presented by: Mr. Ryan L. Phillips, FIC December 9, 2013

Profiles Forecaster

Ben and Jen Woodmen

College Needs Analysis Detail

Goal Summary
Name/ School Ricky Unknown Lucy Unknown Annual Need (today's Dollars) $10,000 10,000 Years Until Needed 11 14 Number Years Needed 4 4 Present Value of Total Cost $50,765 53,751 Percentage To Be Funded 60% 60% Present Value of Total Cost To Be Funded $30,459 32,250

Age 7 4

Present Value of Total Need Savings Summary

Current Savings Monthly Savings $100 per month for 17 years at 4.00% grows to $29,049 In today's dollars that is:

$62,709
$14,000

$14,913

Present Value of Savings Single Sum Needed Today to Fund Shortage Additional Monthly Savings Required
Starting Age

$28,913 $33,796
Amount Needed

Ben's age 31 for 17 years Assumptions

College Cost Inflation Rate Average Rate of Return This analysis assumes that savings will continue until the start of the last year of college.

$227

6.00% 4.00%

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Profiles Forecaster

Ben and Jen Woodmen

71 79 83 67 75 77 81 65 73 69

Retirement Needs Analysis

Annual Income Desired

Will you have enough money when you retire? The earlier you begin setting money aside, the more likely you are to achieve your retirement goals. Retirement income generally comes from three different sources: Social Security Employer Sponsored Plans Savings and Investments This retirement analysis suggests that you might not have enough money to retire. It is estimated that your assets will be depleted by age 77. At that time, your remaining income sources will be limited to Social Security and only provide 52% of your income.

$800,000 $600,000 $400,000 $200,000 $0 65 63 69 67 73 71 77 75 81 79 85 83 89 87

Ben's Age Jen's Age

Deficit

Capital Withdrawals

Social Security

To provide for your desired retirement income, you will need additional capital at retirement age 65. In order to meet this need, you should consider: Saving more money Earning a higher return on your assets If you are not able to accumulate this capital, you may need to consider: Postponing your retirement, or Reducing your standard of living

Save More or Earn More

Additional Monthly Savings

$1,000 $800 $600 $400 $200 $0

$894 $633 $398 $188 $0 6.79% 7.38% 7.96% 8.54% 9.12% Rate of Return on Savings and Investments

This chart shows various options in order for you to meet your objectives. Based on your current average rate of return of 6.79%, you would need to save an additional $894 a month. Alternatively, if you could increase your average rate of return to 9.12%, your objectives would be met. It is important to understand that in order to achieve an increased rate of return, it is likely you will face increased risk. If these options are not attainable, work towards doing a little bit of both; saving more money and earning a higher rate of return.

Assumptions: Income increases at 4.00% annually. Rate of return during retirement is 6.00%. Social Security benefits increase at 4.00%.

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Presented by: Mr. Ryan L. Phillips, FIC December 9, 2013

Profiles Forecaster

Ben and Jen Woodmen

Retirement Needs Analysis Detail

Income Objective
Current Household Income $101,000 Annual Need (Today's Dollars) $75,750 Annual Need (At Retirement) $287,419 Capital Value $5,964,429

At Ben's Age 65

Total Value of Income Objective Income Sources

Income Sources Ben's Social Security Jen's Social Security Payment In Today's Dollars $26,158 13,329 From 67 67 To 90 90 COLA 4.00% 4.00% First Year's Payment $107,349 59,163

$5,964,429

Capital Value $1,749,198 916,323

Total Income Sources

$2,665,520

Capital Needed to Meet Objectives

Capital Available
Asset Name TSA 401K Bank Savings Assumed Market Rate Value of Return $7,500 6.50% 36,000 7.00% 7,000 1.50% Total Annual Contribution $1,248 6,840 0

$3,298,909
Assumed Savings Increase 3.00% 3.00% 0.00%

Value At Retirement $277,002 1,644,811 11,613

Total Capital Available

$1,933,426

Additional Capital Needed to Meet Objectives

Assumptions
Income Replacement at Retirement in the year 2047 Inflation Rate of Return for Assets during Retirement Mortality assumed for Ben and Jen

$1,365,483
75% 4.00% 6.00% 90 / 90

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Presented by: Mr. Ryan L. Phillips, FIC December 9, 2013

Profiles Forecaster

Ben and Jen Woodmen

Your Retirement Timeline

Beginning Balance:
Annual Income Desired $287,419 298,916 310,873 323,308 336,240 349,690 363,677 378,224 393,353 409,088 425,451 442,469 460,168 478,575 497,718 517,626 538,331 559,865 582,259 605,549 629,771 654,962 681,161 708,407 736,744 766,213 796,862 Social Security $0 0 107,349 111,643 175,272 182,283 189,574 197,157 205,043 213,245 221,775 230,646 239,872 249,467 259,445 269,823 280,616 291,841 303,514 315,655 328,281 341,412 355,069 369,271 384,042 264,584 275,167 Other Income $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 Income Surplus/ (Shortage) ($287,419) (298,916) (203,524) (211,665) (160,968) (167,407) (174,103) (181,067) (188,310) (195,842) (203,676) (211,823) (220,296) (229,108) (238,272) (247,803) (257,715) (268,024) (278,745) (289,895) (301,490) (313,550) (326,092) (339,136) (352,701) (501,629) (521,694) Investment Growth $106,748 95,537 86,407 79,118 72,798 67,300 61,078 54,072 46,219 37,451 27,695 16,874 4,904 0 0 0 0 0 0 0 0 0 0 0 0 0 0

$1,933,426
Asset Balance $1,752,754 1,549,375 1,432,257 1,299,710 1,211,539 1,111,432 998,407 871,412 729,321 570,930 394,949 199,999 (15,393) (244,501) (482,773) (730,576) (988,291) (1,256,315) (1,535,060) (1,824,955) (2,126,445) (2,439,995) (2,766,087) (3,105,223) (3,457,924) (3,959,553) (4,481,248)

Ages 65/63 66/64 67/65 68/66 69/67 70/68 71/69 72/70 73/71 74/72 75/73 76/74 77/75 78/76 79/77 80/78 81/79 82/80 83/81 84/82 85/83 86/84 87/85 88/86 89/87 --/88 --/89

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Presented by: Mr. Ryan L. Phillips, FIC December 9, 2013