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3rd Party Variable Annuity

Guiding You In The Right Direction

ce Sin 82 19

VASK 02-2014

O pportunities
Planning for Your Financial Future Starts Today!
Creative Financial Designs, Inc. is a firm believer that you should always have a clear and defined plan for your hard earned money and investments. We develop your portfolio(s) plan after you have discussed your complete financial situation and investment goals with your adviser. We then select the investments for your portfolio based on your specific goals, risk tolerance, and time horizon. Using a diversified portfolio of investments, we strive to minimize your market risk while maximizing your investment returns. After the initial investments are selected, our team monitors your portfolio daily, maintaining the proper diversification and balance while attempting to keep your money in the best investment choices within the various asset classes.

You Gotta Have a Plan!!

As we say,

Freedom
Is Professional Money Management Right for You?
What are your financial goals and how will you reach these goals? Do you have a personal investment plan? These are serious questions that often bring to light shortcomings in planning for the future. You need to determine which plan youre going to implement and utilize to accomplish your financial goals. If you enjoy spending hours of time researching, reading prospectuses, looking over financial ratios, determining overall market conditions and economic trends, you may not need us. If you would rather spend your spare time pursuing your passions, then our program may give you that freedom. You may rest assured that your investments are strategically allocated based on your goals and objectives and are monitored daily by our professional investment management team.

Get to Know Us Before Investing with Us!


Like your familys history, our history should be important to you as well. Creative Financial Designs, Inc. is a Registered Investment Adviser, as defined under the Investment Adviser Act of 1940, and governed under the rules of the Securities and Exchange Commission. Creative Financial Designs, Inc. was founded in 1982 in Kokomo, Indiana and has been servicing thousands of clients in the development of comprehensive financial plans and the management of their investment portfolios ever since. Check us out at www.creativefinancialdesigns.com or look us up on the SEC website www.adviserinfo.sec.gov.

Basics
The Basics of Asset Allocation
In the simplest terms, asset allocation is the process of investing in different types of investments. Youve heard the motto: Dont put all your eggs in one basket. The proper mix of investments depends on your risk tolerance, your investment goals, and your time horizon for each objective. Again, everybody is different! Your portfolio and investments should be treated differently also!

For illustration purposes only - does not represent the allocation of any particular model.

The power of diversification can be explained by the chart to the side. If a person would have invested $10,000 in a fixed investment over 25 years returning 7%, annually they would have accumulated $54,274. If a 2nd person would have invested $2,000 in each of 5 investments that annually returned 12%, 10%, 6%, 0% and one investment that lost all $2,000, who would be better off at the end of 25 years? The diversified account would have accumulated $66,254. nearly $12,000 more!
This hypothetical is used for illustration purposes, and assumes a straight-line return over the defined period. Actual results would vary. Results are not guaranteed and an investor could lose a portion or all of their money.

Thats

Enhanced diversification comes with using investments that are non-correlated to one another. In other words, using investments that work differently in different types of market conditions. This may give you a better chance to make money in rising or declining markets and potentially protect assets during market declines. Think of it this way, if you were heading outside for the day, you would check the weather forecast. Do you need sunblock or an umbrella? If you do not know what the day will hold, you may bring both with you. Investing can be the same way. Some markets rise while other fall. An enhanced diversification model gives you both sunblock and an umbrella.

Taking it to the Next Level

Emotions
Its Time In The Market - Not Market Timing
Disciplined Investing
Human emotions have the ability to affect clients investing. Its common for investors confidence to grow as your investments grow. Conversely, as markets lose value, confidence decreases. Clients tend to go to the sidelines at the wrong time. Disciplined investing does not adhere to the emotions of investing such as greed, fear, or chasing returns. Along with keeping your account diversified, using a disciplined long-term investment approach is key to obtaining consistent and sound results.

Wall Street Journal, Control Yourself , June 8, 2009 RBC Correspondent Services, The Cycle of Market Emotions, 6/09

Options
Choices
We recognize every clients investment comfort or risk level may be different, thats why we offer so many options within our platform. Do not be overwhelmed, your trusted adviser will help lead the way. Each investment account will have the option of selecting within the following categories:

Portfolio Models
Your portfolio model is the overall risk tolerance of your account. Each of your investment portfolios will fall within one of the six model portfolios. (Information is detailed on the Discipline page for the portfolio models.) Conservative Income Income Conservative Growth Growth Aggressive Growth Technical

Participating Companies
We know not every client is the same and we also know we all love having choices. Thats why Creative Financial Designs has partnered with multiple variable annuity companies to allow you and your adviser to select the company that fits your needs the best. Each of these companies have gone through our requirements to make the list, so rest assured these approved variable annuity companies, as-well-as Creative Financial Designs, have your best interest in hand.

*Prudential only available within their no load variable annuity. Companies are subject to change at any time without notice. cfd is not affiliated with any of the listed companies.

Discipline
Portfolio Returns 1994-2013
Shown below are the five model portfolios along with their historical average rates of return, the highest one year return, the lowest one year return, the number of years the respective portfolio had a loss, and a brief description of each portfolio.

Conservative Income Less Volatile

Income

Conservative Growth

Growth

Aggressive Growth More Volatile

General Allocation Breakdown

10% Cash 70% Bonds 15% Domestic Equities 5% International Equities

10% Cash 45% Bonds 35% Domestic Equities 10% International Equities

5% Cash 35% Bonds 50% Domestic Equities 10% International Equities

0% Cash 25% Bonds 60% Domestic Equities 15% International Equities

0% Cash 10% Bonds 70% Domestic Equities 20% International Equities

Average Returns 1994 - 2013 Highest 1 Year Return Lowest 1 Year Return Years With A Loss

5.00% 18.20% 1995 -11.15% 2008 3


Relatively stable portfolio keeping pace with inflation.

5.65% 20.87% 1995 -20.53% 2008 4


Attempting to build assets with below average risk.

6.17% 25.23% 1991 -27.95% 2008 6


Opportunity for long term portfolio growth with average risk.

7.61% 35.63% 1999 -35.22% 2008 6


Long-term growth potential with above average risk.

6.50% 33.22% 2009 -40.85% 2008 6


Aggressive investor with tolerance for large market movements.

Investor Profile

The returns identified above are based on actual and hypothetical portfolio returns achieved by Creative Financial Designs on its Brokerage Managed accounts platform. The quoted returns may not reflect the actual returns inside variable annuity accounts. Please see the disclosure sheet for additional relevant information regarding the calculation of these portfolio returns.

Principles
Understanding Your Needs
You meet with your trusted adviser to discuss your current and desired financial picture. Your adviser helps you determine what products and services are needed to help you meet your long-term financial goals. Your adviser helps you access your goals, needs, and risk tolerance and behavior. CFD believes no matter how big your portfolio is, it needs to be continuously monitored based on your goals and the economic conditions.

Services For Your Needs

Building Your Portfolio


Our dedicated team believes in the following when building your investment portfolio: Diversification Client Risk Tolerance Strategic Investing Long-Term Investing Quality Investments Quality Independent Research Risk Assessment Investment Philosophy Cost Comparison Manager Tenure Fundamental Analysis Technical Analysis Market Conditions

CFD offers several different management platforms to help fit your needs: Brokerage Investment Management Variable Annuity Investment Management Company Self-Directed Retirement Investment Management

Within the three management platforms, CFD offers several strategies and five distinct portfolios for each of your investment goals, needs, and risk.

Approach
Monitoring Your Portfolio Reviewing Your Progress

The CFD Investment Advisory Board meets to discuss overall market and economic conditions and determines proper diversification models. The CFD team runs programs daily to check for any portfolio abnormalities. The CFD team monitors and researches your investments inside your respective portfolio and makes changes as necessary. The CFD team rebalances your portfolio as necessary.

You and your trusted adviser meet as needed to discuss your current financial situation, needs, goals, risk, and progress. You and your trusted adviser meet to determine if any changes are needed to your products and services to make sure your needs are served. Your trusted adviser can discuss with you the CFD management teams thoughts on portfolio risk levels and market conditions.

Consistency
Average Investor Returns Compared 1994-2013
We believe successful investing takes not only research and knowledge, but also patience and a long-term strategy. According to the popular independent research company DALBAR, Inc., investors tend to chase hot investments and pull money out at the wrong time. Shown below are the average returns of our respective portfolios invested through a long-term and disciplined investment strategy compared to the average investors and inflation returns as reported by the DALBAR study.

7.61% 6.50% 6.17% 5.65% 5.00% 4.25% 2.29% 2.43% 0.98%


Aggressive Growth Growth Conservative Growth Income Conservative Income Equity Investor Fixed Income Investor Asset Allocation Investor Inflation

Creative Financial Designs


5 Portfolios Performances

DALBAR QAIB Study


Average Investor

*Average Investor Source: Dalbar, Inc. Quantitative Analysis of Investor Behavior 2013 - Represents average annually compounded return of the equity mutual fund investors based on the length of time shareholders actually remain invested in a fund. Does not represent same time period as comparison.

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Insight
Understanding Market Volatility
Dangers of Market Timing: As the following chart shows, last years winners can become this years losers.

The Callan Periodic Table of Investment Returns


Annual Returns for Key Indices Ranked in Order of Performance (19942013)
1994
MSCI EAFE 7.78% S&P 500 Growth 3.13% S&P 500

1995
S&P 500 Growth 38.13% S&P 500

1996
S&P 500 Growth 23.97% S&P 500

1997
S&P 500 Growth 36.52% S&P 500

1998
S&P 500 Growth 42.16% S&P 500

1999
MSCI Emerging Markets 66.42% Russell 2000 Growth 43.09% S&P 500 Growth 28.24% MSCI EAFE 26.96% Russell 2000 21.26% S&P 500

2000

2001

2002
Barclays Agg 10.26% Barclays Corp High Yield -1.41% MSCI Emerging Markets -6.00%

2003
MSCI Emerging Markets 56.28% Russell 2000 Growth 48.54% Russell 2000 47.25%

2004
MSCI Emerging Markets 25.95% Russell 2000 Value 22.25% MSCI EAFE 20.25% Russell 2000 18.33% S&P 500 Value 15.71% Russell 2000 Growth 14.31% Barclays Corp High Yield 11.13% S&P 500

2005
MSCI Emerging Markets 34.54% MSCI EAFE 13.54% S&P 500 Value 5.82% S&P 500

2006
MSCI Emerging Markets 32.59% MSCI EAFE 26.34% Russell 2000 Value 23.48% S&P 500 Value 20.81% Russell 2000 18.37% S&P 500

2007
MSCI Emerging Markets 39.78% MSCI EAFE 11.17% S&P 500 Growth 9.13% Russell 2000 Growth 7.05% Barclays Agg 6.97% S&P 500

2008
Barclays Agg 5.24% Barclays Corp High Yield -26.16% Russell 2000 Value -28.92% Russell 2000 -33.79% S&P 500 Growth -34.92% S&P 500

2009
MSCI Emerging Markets 79.02% Barclays Corp High Yield 58.21% Russell 2000 Growth 34.47% MSCI EAFE 31.78% S&P 500 Growth 31.57% Russell 2000 27.17% S&P 500

2010
Russell 2000 Growth 29.09% Russell 2000 26.85% Russell 2000 Value 24.50% MSCI Emerging Markets 19.20% Barclays Corp High Yield 15.12% S&P 500 Value 15.10% S&P 500

2011
Barclays Agg 7.84% Barclays Corp High Yield 4.98% S&P 500 Growth 4.65% S&P 500

2012
MSCI Emerging Markets 18.63% Russell 2000 Value 18.05% S&P 500 Value 17.68% MSCI EAFE 17.32% Russell 2000 16.35% S&P 500

2013
Russell 2000 Growth 43.30% Russell 2000 38.82% Russell 2000 Value 34.52% S&P 500 Growth 32.75% S&P 500

Russell Russell 2000 Value 2000 Value 22.83% Barclays Agg 11.63% S&P 500 Value 6.08% Russell 2000 -3.02% Barclays Corp High Yield -5.86% S&P 500 14.02% Barclays Agg 8.43% Barclays Corp High Yield 5.28% Russell 2000 2.49% MSCI Emerging Markets -2.37% Russell 2000 Growth -9.23% S&P 500 Value -11.71% S&P 500

37.58% S&P 500 Value 36.99% Russell 2000 Growth 31.04% Russell 2000 28.45%

22.96% S&P 500 Value 22.00% Russell 2000 Value 21.37% Russell 2000 16.49% Barclays Corp High Yield 11.35% Russell 2000 Growth 11.26% MSCI EAFE 6.05% MSCI Emerging Markets 6.03% Barclays Agg 3.64%

33.36% Russell 2000 Value 31.78% S&P 500 Value 29.98% Russell 2000 22.36% Russell 2000 Growth 12.95% Barclays Corp High Yield 12.76% Barclays Agg 9.64% MSCI EAFE 1.78% MSCI Emerging Markets -11.59%

28.58% MSCI EAFE 20.00% S&P 500 Value 14.69% Barclays Agg 8.70% Barclays Corp High Yield 1.87% Russell 2000 Growth 1.23% Russell 2000 -2.55% Russell 2000 Value -6.45% MSCI Emerging Markets -25.34%

1.32% S&P 500 Value -0.64% Barclays Corp High Yield -1.03%

Russell Russell 2000 Value 2000 Value -11.43% MSCI EAFE -15.94% Russell 2000 -20.48% S&P 500 Value -20.85% S&P 500 46.03% MSCI EAFE 38.59% S&P 500 Value 31.79% Barclays Corp High Yield 28.97% S&P 500

4.91% Russell 2000 Value 4.71% Russell 2000 4.55% Russell 2000 Growth 4.15% S&P 500 Growth 4.00% Barclays Corp High Yield 2.74% Barclays Agg 2.43%

2.11% S&P 500 Value -0.48% Russell 2000 Growth -2.91% Russell 2000 -4.18% Russell 2000 Value -5.50% MSCI EAFE -12.14% MSCI Emerging Markets -18.17%

32.39% S&P 500 Value 31.99% MSCI EAFE 22.78% Barclays Corp High Yield 7.44% Barclays Agg -2.02% MSCI Emerging Markets -2.27%

Russell Russell 2000 Value 2000 Value -1.54% Russell 2000 -1.82% Russell 2000 Growth -2.43% Barclays Agg -2.92% MSCI Emerging Markets -7.32% 25.75% Barclays Corp High Yield 19.18% Barclays Agg 18.46% MSCI EAFE 11.21% MSCI Emerging Markets -5.21%

21.04% S&P 500 Value 12.73% Barclays Corp High Yield 2.39% Barclays Agg -0.82% Russell 2000 Value -1.49%

-9.11% MSCI EAFE -14.17% S&P 500 Growth -22.08% Russell 2000 Growth -22.43% MSCI Emerging Markets -30.61%

15.79% Russell 2000 Growth 13.35% Barclays Corp High Yield 11.85% S&P 500 Growth 11.01% Barclays Agg 4.33%

5.49% S&P 500 Value 1.99% Barclays Corp High Yield 1.87% Russell 2000 -1.57% Russell 2000 Value -9.78%

-37.00% Russell 2000 Growth -38.54% S&P 500 Value -39.22% MSCI EAFE -43.38% MSCI Emerging Markets -53.18%

16.00% Barclays Corp High Yield 15.81% S&P 500 Growth 14.61% Russell 2000 Growth 14.59% Barclays Agg 4.21%

26.47% S&P 500 Value 21.17% Russell 2000 Value 20.58% Barclays Agg 5.93%

15.06% S&P 500 Growth 15.05% MSCI EAFE 7.75% Barclays Agg 6.54%

-11.89% S&P 500 Growth -12.73% MSCI EAFE -21.44%

-22.10% S&P 500 Growth -23.59% Russell 2000 Growth -30.26%

28.68% S&P 500 Growth 25.66% Barclays Agg 4.10%

10.88% S&P 500 Growth 6.13% Barclays Agg 4.34%

The Callan Periodic Table of Investment Returns conveys the strong case for diversification across asset classes (stocks vs. bonds), investment styles (growth vs. value), capitalizations (large vs. small), and equity markets (U.S. vs. international). The Table highlights the uncertainty inherent in all capital markets. Rankings change every year. Also noteworthy is the difference between absolute and relative performance, as returns for the top-performing asset class span a wide range over the past 20 years.

A printable copy of The Callan Periodic Table of Investment Returns is available on our website at www.callan.com.

Knowledge. Experience. Integrity.

2014 Callan Associates Inc.

Past performance is no guarantee of future results. Investors cannot invest directly in an index.

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Structure
3rd-Party Variable Annuity
Operations & Fees
Investors should always carefully consider the investment objectives, risks, and charges of any investment or investment program. The following is the management fee expenses that Creative Financial Designs, Inc. charges for its 3rd Party Variable Annuity management platform. Additional fees within the individual investments and contracts may also exist.

Expenses & Fees


An annual management fee of up to 2.00% applies to your managed account. Your adviser will let you know the specific management fee. This fee is billed quarterly in advance to the place you desire. You can direct the fee to be taken from your managed account directly, to be billed directly to you, or possibly from other sources. For a complete description of management fees, please check out the SEC filed Investment Management Brochure available through your adviser.

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Committment
Its Our Pleasure To Serve You Through Your Trusted Adviser

Portfolio Building & Maintenance

We will initially build your personal investment portfolio based on your risk tolerance and available investment choices. We will then continue to monitor it making sure it is appropriately allocated.

Statements & Communications

Portfolio reports and quarterly statements are available via internet and mailed annually to clients. Your adviser has access to the management team and the appropriate materials 24/7. Access to your account via the internet is also available 24/7.

Investment Monitoring

Daily monitoring of your investments through our research and associated companies research will ensure your portfolio continues to work for you.

Adviser & Client Reviews

Your adviser will schedule appointments with you as necessary to answer any questions and to discuss your complete financial picture.

Monitoring Investment Choices

We continue to monitor any new investment choices as they arise, making sure your portfolio is invested within the best investments available.

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Relationship
Congratulations and thank you for your interest in the Creative Financial Designs (CFD) professional investment management platforms. Our team works hard to provide you a one stop firm for all your investment needs. We recognize that not every investor is the same and in-fact, an investor may have different investment goals for different investments and savings. Weve developed not only three investment management platforms, but also five investment portfolios and multiple strategies within each platform to make sure all your investment needs are covered. Investing is long-term, takes patience, and we believe is best served by looking at the investing fundamentals. We spend critical time researching, examining, & monitoring your portfolio and investments all to help your investments goals come true. We also believe your needs are best served by an independent financial adviser that you can trust and rely on to help guide you in the right direction. Without the proper guidance, you may find yourself wavering during times of unrest. Rely on your advisers wisdom to see you through these times. If you are not currently working with a CFD trusted adviser, let us know and well let you know who is in your area and ready to serve you. Please remember to discuss immediately any pertinent changes to your financial situation. Your adviser will discuss with you these changes and your investment goals, time horizon, and risk tolerance to make sure you are still best served in your current portfolio and investment strategy. Again, congratulations on making the pivotal decision in taking control of your investment future. Our team looks forward to serving your investment needs.

We believe that our expertise can make your investment goals come true, but remember, investing your money is only one piece of your financial puzzle. Talk with your adviser to determine and evaluate your entire current financial picture that includes these 7 keys to financial success: 1. Cash Management 2. Goal Setting 3. Tax Planning 4. Retirement Planning 5. Risk Management 6. Investment Planning 7. Estate Planning

In addition, your financial adviser will provide support and guidance through good and difficult times. Please see your adviser immediately if your goals, time horizon, or risk tolerance change.

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Disclosures for Creative Financial Designs, Inc. Model Portfolios Portfolios are allocated pursuant to models determined by Creative Financial Designs, Inc., (Designs) which is solely responsible for the content of each model, and the selection of specific investments within the confines of each asset class and model. Designs has discretion to change the model at any time, and will make changes to the model based on current or anticipated market conditions, as deemed appropriate. Variances Among Accounts Each model is merely a guideline, and there may be some variance between investment holdings, and therefore returns, in any particular account versus the model allocation. Additionally, there may be some differing holdings among customers investing in the same investment model portfolio. Some of these differing holdings are the result of limited investment options, such as would be the case in self-directed company retirement accounts, and/or managed variable annuity accounts. Additional variances could arise due to such things as, without limitation: programmed reallocations by an issuer, pursuant to particular product terms and conditions, or based on special requests by the client, timing issues, i.e. investors purchase a fund that subsequently is no longer available for new purchasers, so later investors invest in a comparable (though not identical) investment, size of an investment account, and the fact that transactional charges may make a reallocation disadvantageous to a particular client, or due to the investment strategy which the client has selected. Reported Returns Actual and Hypothetical Investment returns reported for a model portfolio since 1999 are based on a sampling of actual client account returns. Investment returns reported for a model portfolio prior to 1999 are hypothetical, utilizing indices that represent the appropriate investment categories for diversification purposes. Any aggregate returns are calculated based on actual and hypothetical returns. Since the hypothetical returns are generated by using the diversified portfolio indices performance over the time period, it is believed that all material market and economic conditions are portrayed. Investors cannot invest directly in an index. The numbers reported as actual client returns for a given year are an average of actual returns, net of fees and expenses (Designs management fees and internal fund fees), for managed brokerage accounts, and only such accounts that have been retained throughout the given year (i.e. not opened or closed within the reporting year), and do not have any new deposits or withdrawals among the activity in the account. Certain anomalous accounts may also be omitted in the reported figures. The returns do not include managed selfdirected company retirement accounts or managed variable annuity contracts. The returns reflect the reinvestment of dividends and other earnings. Hypothetical returns are based, in part, on historical returns of certain indices for the applicable time periods. The indices chosen for each model portfolio, and the percentages of each index, were designed to reflect the particular model portfolio allocation based on comparable models created by Ibbotson Associates, Inc. a wholly owned subsidiary of Morningstar, Inc. Those returns do not reflect the results that would be expected based on this historical data and the current allocations in the model portfolios. These calculated returns reflect the historical figures, and not actual investment results, and are reduced by hypothetical fees and expenses of 1.5% annually. Certain investments managed by Designs have surrender charges that may be incurred upon withdrawal of funds, or fees which are not consistent with the fees and expenses in managed brokerage accounts. Actual returns for such accounts do not reflect those fees, expenses and charges, which would reduce the returns realized by persons making early withdrawals from such products. Returns do not take tax considerations into effect, which will affect the returns and the level of profitability of an account over time. Designs does not provide legal or tax advice. Reported returns are historical in nature, and past performance is not indicative or future results. Mutual funds, ETFs, and variable annuity products pay management fees to professional investment managers, which fees are separate and in addition to the management fees of Creative Financial Designs, Inc. The professional management fees paid by such investment vehicles are born by investors and reduce the net asset value, and therefore the returns, of the respective fund shares. Affiliation with CFD Investments Designs is owned and controlled by several persons who also have financial interests in cfd Investments, Inc. (CFD), a registered broker/ dealer, member FINRA and SIPC. Designs is also co-located with CFD, and several persons associated with CFD are also associated with Designs. When appropriate, assets of clients managed by Designs will be maintained in brokerage accounts established at CFD. Affiliations among CFC Companies The CFC companies are all co-located in the Creative Financial Center in Kokomo, Indiana. Many of the CFC companies have some correlation of ownership, and some may be considered affiliated entities. No CFC company is owned or controlled by another CFC company.

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Mission Statement
Our Mission is to provide unique and valuable investment services to all clients while honoring our Kingdom Values in guiding our work and lives.

PASSION

2704 South Goyer Road Kokomo, IN 46902 Phone 800.745.7776

www.creativefinancialdesigns.com email: questions@creativefinancialdesigns.com Building Quality Advisory & Client Relationships.


Advisory services are provided through Creative Financial Designs, Inc., Registered Investment Adviser. 2704 South Goyer Road, Kokomo, IN 46902 765.453.9600