Comprehensive Financial Plan

Transcription

1 Prepared for Mr Raymond and Mrs Bridget James (Main Scenario) August 04, 2010 John Planner Raymond James Financial Services, Inc 880 Carillon Parkway St Petersburg, FL

2 Mr Raymond and Mrs Bridget James Table of Contents Title Page 1 Table of Contents 2 Financial Overview 4 Executive Summary - Title Page 5 Executive Summary - Financial Position 6 Financial Statements - Title Page 7 Financial Statements - Overview 8 Financial Statements - Current Net Worth 9 Financial Statements - Current Net Worth Detail 10 Financial Statements - Current Cash Flow 12 Financial Statements - Current Cash Flow Detail 13 Financial Statements - Income Tax Estimate 14 Financial Statements - Income Tax Capital Gains 15 Financial Statements - Income Tax Itemized Deductions 16 Financial Statements - Income Tax Exemptions 17 Financial Statements - Income Tax AMT 18 Financial Statements - Insurance Schedule 19 Financial Statements - Projected Net Worth Hypothetical 20 Financial Statements - Projected Cash Flow Hypothetical 22 Financial Statements - Projected Income Detail Hypothetical 24 Financial Statements - Projected Outflow Detail Hypothetical 25 Asset Allocation - Title Page 26 Asset Allocation - Overview 27 Asset Allocation - Risk Tolerance 28 Asset Allocation - EF Proposed 33 Asset Allocation - Comparison Composite 34 Asset Allocation - Comparison Non-Qualified 35 Asset Allocation - Backtest Annual Actual 36 Asset Allocation - Backtest Compound Actual 37 Asset Allocation - Histories Annual Actual 38 Asset Allocation - Histories Compound Actual 39 Asset Allocation - Histories Risk 40 Asset Allocation - Scenario Assumptions 41 Goal Planning - Title Page 43 Goal Planning - Overview 44 Goal Planning - Itemized Goals 45 Goal Planning - Goal Funding Chart 46 Goal Planning - Goal Funding Table 47 Retirement Standard - Title Page 48 Retirement Standard - Overview 49 Retirement Standard - Asset and Income Summary 50 Retirement Standard - Retirement Spending Goal 52 Retirement Standard - Projected Assets Graph 53 Retirement Standard - Projected Assets Table 54 Retirement Standard - Projected Income Graph 55 Retirement Standard - Projected Income Table 56 Estate - Title Page 57 Estate - Overview 58 2 of 127 Raymond James Financial Services, Inc

3 Mr Raymond and Mrs Bridget James Estate - Estate Assumptions 59 Estate - Current Estate Flowchart 60 Estate - Current Gross Estate 61 Estate - Current Estate Tax & Settlement Costs 62 Estate - Current Estate Distribution 63 Estate - Projected Estate Growth Chart 64 Estate - Projected Estate Growth Table 65 Estate - Projected Estate Flowchart 66 Estate - Projected Gross Estate 67 Estate - Projected Estate Tax & Settlement Costs 68 Estate - Projected Estate Distribution 69 Estate - Appendix 70 Estate - Settlement Costs Concept 71 Estate - Wills Concept 72 Estate - Credit Shelter Trust Concept 74 Long-Term Care - Title Page 75 Long-Term Care - Overview 76 Long-Term Care - Concept Page 77 Long-Term Care - Expenses and Insurance 78 Long-Term Care - Summary 79 Action Summary - Title Page 80 Action Summary - Recommended Actions 81 Asset Holdings 82 Data and Assumptions - Title Page 83 Data and Assumptions 84 Glossary - Title Page 98 Glossary - Asset Allocation 99 Glossary - Index Proxies 101 Glossary - Accumulation 104 Glossary - Financial Statements 106 Glossary - Retirement 108 Glossary - Estate 110 Investment Policy Statement 112 Long-Term Care - Referral 120 Risk and Return 121 Disclosure 122 Notes of 127 Raymond James Financial Services, Inc

4 Mr Raymond and Mrs Bridget James Your Personal Comprehensive Financial Plan This comprehensive financial plan has been prepared specifically for you using your current financial data Its purpose is to help you establish and prioritize your financial goals and to help plan for future financial security This plan compares your current financial situation to your projected needs in the following areas: Financial statements Personal goal planning Retirement planning Portfolio analysis Estate preservation planning You can use this plan in several ways First, you can use it to get an overall view of your present financial situation: where you stand now For example, this plan will show your estimated current income taxes and cash flows, and clearly state your balance sheet and estate positions Second, you can use the illustrated financial projections to gain an idea of how well your future financial needs will be covered For example, this plan will project your retirement income based on your current preparations and your future assumptions Third, you can explore and choose to implement the actions suggested in this plan to help improve your present financial situation and your future financial situation Recommended Actions This plan will introduce specific actions that could improve your financial situation However, the actions that may help you now may not be the same actions that you should take a year from now Changes in your life situation may change recommended actions, particularly if changes are experienced in any of the following areas: Your family Your level of income or wealth Your objectives Tax laws and rulings The economy If changes are experienced in any of these areas, you should re-evaluate your financial plan Implementing your recommended plan of action can help you on the path to financial security 4 of 127 Raymond James Financial Services, Inc

5 Executive Summary 5 of 127 Raymond James Financial Services, Inc

6 Mr Raymond and Mrs Bridget James Current Financial Position Your net worth as of 08/04/2010 is $3,703,170 Your projected net cash flow for the year 2010 is $71,230 Your estimated total income tax liability for the year 2010 is $56,887 Asset Allocation The proposed asset mix provides a hypothetical pre-tax return of 828% per year with a standard deviation of 922% With this asset mix, your return in most years could be as high as 2717% or as low as -968% Pre-Retirement Goals Your projected assets provide sufficient resources to fully fund all your pre-retirement goals Retirement Goals The resources you have available could provide 9404% of your retirement spending goals Estate Preservation Prior to implementing the selected estate planning alternatives, the estimated amount you may pay in total estate settlement costs is $2,413,664 This is based upon leaving $3,268,697 to your beneficiaries *Returns are not guaranteed and do not reflect the performance of any particular investment product Individual investor results will vary Hypothetical return and risk are based on client assumptions and calculated using statistical analysis and may not reflect actual market data Historical performance is no indication of future results Note: See data and assumptions, disclosures and methodology explanations for important information about this report 6 of 127 Raymond James Financial Services, Inc

7 Financial Statements 7 of 127 Raymond James Financial Services, Inc

8 Mr Raymond and Mrs Bridget James Financial Statements Introduction A financial statement deals with cash management Your access to cash influences your level of financial comfort and the range of investment decisions that you can make Personal financial statements help you carefully manage your cash by providing a cash flow statement, and your assets and liabilities by providing a net worth statement How you manage your cash, assets, and liabilities can largely determine whether you reach your financial objectives Monitoring your financial statements can help you achieve your financial goals This section of the report includes the following financial statements: Net worth statement Insurance schedule Current year cash flow statement Income tax estimate with supporting statements Pro forma financial statements Financial Statements Defined Net worth statement- A statement of net worth, which is sometimes called a balance sheet, provides an overview of an individual's current financial situation In this report, the Assets section represents what you currently own, stated at market values The Liabilities section illustrates your current debt balances The Net Worth section shows the approximate amount that would be left if you sold all your assets and paid off your debts Your Net Worth Statement is an estimate of your current wealth One of the main objectives of financial planning is to increase your net worth Cash flow statement- A cash flow statement, which is sometimes called an income statement, summarizes an individual's financial activity over a given period of time The cash flow statement in this report tracks your income (cash inflows) and uses of cash (cash outflows) during the current year The difference between the income you receive and the cash you use is your net cash flow Income tax estimate- The income tax estimate included in this report is not a substitute for the advice of a qualified tax consultant It is provided to give you a general idea of the portion of your income that goes to income taxes This report also includes schedules that will help you gain a general understanding of how income taxes are estimated The schedules include: Schedule of capital gains and losses Schedule of itemized deductions Schedule of personal exemptions Pro forma financial statements- Pro forma financial statements project an individual's current financial situation for many years into the future The statements in this report can help you estimate and then monitor the changes in your wealth over your lifetime Benefits of Regular Review Regular review of your personal financial statements can help you confirm that you are on track to achieve your financial goals Your cash flow statement will help you monitor your spending so you can make any needed adjustments in the future The balance sheet helps you see how well you are working toward achieving your objectives 8 of 127 Raymond James Financial Services, Inc

9 Mr Raymond and Mrs Bridget James Current Net Worth (as of 08/04/2010) Total Assets $4,403,170 Total Liabilities $700,000 Net Worth $3,703,170 Joint/ Assets Raymond Bridget Community Total Percent Cash Assets $20,000 $0 $7,500 $27, % Investment Assets $1,426,670 $0 $0 $1,426, % Business Assets $550,000 $0 $0 $550, % Personal Assets $0 $1,500,000 $0 $1,500, % DBPs, Notes & Annuities $0 $0 $0 $0 000% Retirement Assets $899,000 $0 N/A $899, % Cash Value Life Insurance $0 $0 $0 $0 000% Stock Options $0 $0 $0 $0 000% Deferred Comp & Annuities $0 $0 N/A $0 000% Total Assets $2,895,670 $1,500,000 $7,500 $4,403, % Liabilities $700,000 $0 $0 $700, % Net Worth $2,195,670 $1,500,000 $7,500 $3,703, % Key Ratios Debt to equity ratio (Liabilities / Assets) 016 Debt to cash ratio (Liabilities / Cash Assets) of 127 Raymond James Financial Services, Inc

10 Comprehensive Financial Plan Mr Raymond and Mrs Bridget James Current Net Worth Detail (as of 08/04/2010) Cash Assets Description Value Basis Owner Checking $7,500 $7,500 JTWROS Money Market $20,000 $20,000 Raymond Total $27,500 $27,500 Investment Assets Description Value Basis Owner 12 month CD $100,000 $100,000 Raymond 6 month CD $100,000 $1,000,000 Raymond ATT INC $260,000 $260,000 Raymond Cloumbia Strategic Income A $400,000 $420,000 Raymond FORD MOTOR CO CDO $39,000 $39,000 Raymond MERCK $39,000 $30,670 Raymond US BANCORP DEL $30,670 $30,670 Raymond WALGREEN CO $40,000 $40,000 Raymond MICROSOFT CORP $29,000 $29,000 Raymond COCA COLA CO $108,000 $75,000 Raymond PROGRSSENERGY INC $38,000 $38,000 Raymond EXXON $143,000 $143,000 Raymond Large Cap Value $100,000 $100,000 Raymond Total $1,426,670 $2,305,340 Business Assets Description Value Basis Owner 40 Acres $550,000 $575,000 Raymond Total $550,000 $575,000 Personal Assets Description Value Basis Owner Residence $1,500,000 $1,600,000 Bridget Total $1,500,000 $1,600, of 127 Raymond James Financial Services, Inc

11 Mr Raymond and Mrs Bridget James Retirement Assets Description Value Basis Owner Large Cap Value $100,000 $0 Raymond Mid-Cap Growth $50,000 $0 Raymond Small Cap Growth $50,000 $0 Raymond Domestic Fixed Income $200,000 $0 Raymond Money Market $200,000 $0 Raymond Large Cap Growth $100,000 $0 Raymond International Fixed $75,000 $0 Raymond Columbia Strategic Income A $29,000 $0 Raymond Money Market $95,000 $0 Raymond $0 $0 Bridget Total $899,000 $0 Liabilities Description Value Owner Auto $50,000 Raymond Residence $650,000 Raymond Total $700, of 127 Raymond James Financial Services, Inc

12 Mr Raymond and Mrs Bridget James Current Year Cash Flow (as of 08/04/2010) Total Cash Inflows $200,000 Total Cash Outflows $128,770 Net Cash Flow $71,230 Cash Inflows Annual Monthly Percent Raymond's earnings $175,000 $14, % Bridget's earnings $25,000 $2, % Miscellaneous income (loss) $0 $0 000% Business/real estate income (loss) $0 $0 000% Yield from assets (not reinvested) $0 $0 000% Income from DBPs, notes & annuities $0 $0 000% Social Security benefit $0 $0 000% Other government benefits $0 $0 000% Assets withdrawn (or liabilities incurred) $0 $0 000% Total Cash Inflows $200,000 $16, % Cash Outflows Lifestyle expenses $0 $0 000% Other expenses and charitable gifts $0 $0 000% Liability payments $61,800 $5, % Insurance premiums $0 $0 000% Total taxes $66,970 $5, % Contributions to assets $0 $0 000% Spending goals $0 $0 000% Total Cash Outflows $128,770 $10, % Net Cash Flow $71,230 $5, % Key Ratios Debt to income ratio (Liability Payments / Income) 031 Contributions to income ratio (Contributions / Income) 000 Months of cash on hand (Cash Assets / Living Expenses) of 127 Raymond James Financial Services, Inc

13 Comprehensive Financial Plan Mr Raymond and Mrs Bridget James Current Year Cash Flow Detail (as of 08/04/2010) Raymond's Earnings Current Year Pre-Retirement Earnings Amount Earned income $175,000 Self employed earnings $0 Earnings not subject to FICA $0 Raymond's Total Earnings $175,000 Bridget's Earnings Current Year Pre-Retirement Earnings Amount Earned income $25,000 Self employed earnings $0 Earnings not subject to FICA $0 Bridget's Total Earnings $25,000 Liability Payments Current Year Tax Liabilities Amount Type Deductible Auto $11,400 Automobile No Residence $50,400 Primary Residence No Total Liability Payments $61,800 Total Taxes Current Year Income Tax Amount Federal income tax $56,887 State/local income tax $0 Other Tax Payroll taxes $10,083 Real estate, personal property taxes $0 Total Taxes $66, of 127 Raymond James Financial Services, Inc

14 Mr Raymond and Mrs Bridget James FYI Federal income taxes are calculated using graduated tax rates This means that the percent of your income you pay in taxes goes up as your income increases Your marginal tax rate is the highest tax rate at which your income is taxed Capital gains and dividends are taxed differently than income The rate at which your capital gains and dividends are taxed is determined by your marginal federal income tax rate State taxes are calculated using the state tax rate entered into the system Your effective income tax rate is the portion of your income that is paid in taxes Your effective capital gains tax rate is the portion of your capital gains that is paid in taxes Income Tax Estimate (for the year 2010) Income Wages, salaries $200,000 Taxable interest $27,457 Taxable dividends $19,895 Taxable refunds $0 Business income (loss) $0 Capital gain (loss) $0 Taxable DBPs, notes & annuities $0 Rental real estate, partnerships, etc $0 Farm income (loss) $0 Social security benefits $0 Other income $0 Total Income $247,352 Self employment tax adjustment $0 Pre-tax contributions $0 Other adjustments $0 Adjusted Gross Income $247,352 Standard deduction $11,400 Personal exemptions $0 Total deductions $11,400 Taxable Income $235,952 Income Tax Federal income tax $52,065 Alternative minimum tax $4,822 Total Tax Before Credits $56,887 Tax credits $0 Federal income tax $56,887 State/Local income tax $0 Total Income Tax Liability $56,887 Rates Marginal federal income tax rate 3300% Marginal federal capital gains/dividends tax rate 1500% State tax rate 000% Effective income tax rate 2300% Effective capital gains tax rate 1500% Tax laws are complex with many specific rules and exceptions that are beyond the scope of this report 14 of 127 Raymond James Financial Services, Inc

15 Mr Raymond and Mrs Bridget James FYI Short-term gains and losses apply to assets with a holding period of 1 year or less Long-term gains and losses apply to assets with a holding period of more than 1 year To figure the holding period, begin counting on the day after you received the property and include the day you disposed of it If you dispose of property that you acquired by inheritance, report the disposition as a long-term gain or loss, regardless of how long you held the property Examples of property generally not considered capital assets include: Income Tax Estimate - Capital Gain/Loss Short-Term Gains and Losses Short-term gains and losses $0 Short-term capital loss carryover $0 Net short-term capital gain (loss) $0 Long-Term Gains and Losses Long-term gains and losses $0 Long-term capital loss carryover $0 Net long-term capital gain (loss) $0 Taxable Gain or Deductible Loss Total gain (loss) $0 Deductible loss $0 Tax Computation Using Maximum Capital Gains Rates Amount Tax Ordinary income $216,057 $49,080 Dividend income subject to 5% rate $0 $0 Dividend income subject to 15% rate $19,895 $2,984 Capital gain subject to short-term rate $0 $0 Capital gain subject to 5% long-term rate $0 $0 Capital gain subject to 15% long-term rate $0 $0 Total $216,057 $52,065 - Inventory or supplies held or used in your trade or business - Depreciable property used in your trade or business - Copyrights or other intellectual property 15 of 127 Raymond James Financial Services, Inc

16 Mr Raymond and Mrs Bridget James FYI This analysis automatically uses the larger of the standard deduction or your itemized deductions The standard deduction for the year 2010 is $11,400 Income Tax Estimate - Itemized Deductions Deductible Expenses and Charitable Gifts Non- Amount Deductible Deductible Fully deductible $0 NA $0 Deductible over 75% of AGI* $0 $0 $0 Deductible over 2% of AGI* $0 $0 $0 Total expense and gift deductions $0 To be deductible, charitable gifts of $250 or more must have a statement from the charitable organization showing: 1 The amount of any money contributed and a description of any property donated AND 2 The organization did not give you any goods or services in return for your contribution Medical and dental expenses in excess of 75% of AGI can be deductible Unreimbursed employee expenses and tax preparation fees in excess of 2% of AGI can be deductible Your itemized deductions may be limited if medical expenses comprise a substantial portion of your total deductions, or if your AGI exceeds $99,999,999 State/Local income tax $0 Real estate, personal property taxes $0 Deductible interest (excluding investment interest) $0 Deductible investment interest $0 Casualty and theft losses $0 Total itemized deductions $0 Phase Out of Itemized Deductions 80% Rule** 3% Rule** Total itemized $0 AGI $247,352 deductions Itemized deduction $99,999,999 Medical, inv interest $0 AGI limit casualty and theft Amount over AGI $0 Difference multiplied by $0 limit 80% 30% of amount over $0 AGI limit Smaller of 80% or 3% limitation $0 Adjustment for limitation phase-out $0 Itemized deduction limitation $0 Allowable itemized deductions $0 * Adjusted Gross Income (AGI) = $247,352 ** See listing in glossary for limits on itemized deductions 16 of 127 Raymond James Financial Services, Inc

17 Mr Raymond and Mrs Bridget James FYI You receive one personal exemption for yourself, one for your spouse (if you are married), and one for each dependent you claim on your return You can claim $3,650 for each personal exemption This amount typically changes each year The deduction for exemptions can be taken regardless of whether you itemize deductions or take the standard deduction Income Tax Estimate - Personal Exemptions Deduction for Exemptions Worksheet Exemption amount $3,650 Number of exemptions x 0 Personal exemption $0 Adjusted Gross Income (AGI) $247,352 AGI limitation for personal exemptions $99,999,999,999 Amount over limit $0 divided by $2, multiplied by 2% 00 multiplied by personal exemption $0 divided by phase out factor $0 Deduction for exemptions $0 If your AGI is above an established limit, the amount you are allowed to deduct for personal exemptions could be reduced 17 of 127 Raymond James Financial Services, Inc

18 Mr Raymond and Mrs Bridget James FYI Alternative Minimum Tax (AMT) is an alternative method for figuring federal income tax liability It is designed to ensure that everyone pays at least a minimum level of tax AMT excludes some of the deductions allowed under the ordinary income tax method and uses tax rates that are different from the ordinary federal tax brackets Your federal income tax liability is the greater of the amount calculated using the ordinary federal income tax method or the AMT method Some tax reduction strategies may lower your tax as calculated by the ordinary tax method, but not when calculated using the AMT method These strategies include: - Accelerated Depreciation - Incentive Stock Options - Tax-Free interest from private bonds Income Tax Estimate - Alternative Minimum Tax Alternative Minimum Taxable Income AGI less standard deduction + $235,952 Standard deduction $11,400 Interest on a home mortgage not used for your home $0 Refund of taxes $0 Post-1986 depreciation $0 Incentive stock options $0 Passive activities $0 Other adjustments and preference items $0 Total adjustments and preference items + $11,400 Alternative tax net operating loss deduction - $0 Alternative minimum taxable income $247,352 Alternative Minimum Tax Exemption amount $20,662 Taxable income less exemption amount $226,691 Tentative minimum tax $56,887 Ordinary income tax $52,065 Alternative minimum tax $4,822 Alternative Minimum Tax Exemption Worksheet 1 AMT exemption amount $45,000 2 Alternative minimum taxable income $247,352 3 Income limit before phase-out $150,000 4 Subtract line 3 from line 2 $97,352 5 Multiply line 4 by 25% $24,338 6 Subtract line 5 from line 1 $20,662 * Adjusted Gross Income (AGI) = $247,352 - Income (loss) from passive activities - Net operating loss 18 of 127 Raymond James Financial Services, Inc

19 Mr Raymond and Mrs Bridget James Insurance Schedule (as of 08/04/2010) Life Insurance Description Owner Insured Party Beneficiary Face Amount Cash Value Raymond Raymond Bridget $0 $0 Raymond Bridget Bridget $0 $0 Disability Insurance Elimination Description Insured Party Annual Premium Monthly Benefit Period (days) Raymond $0 $0 0 Bridget $0 $ of 127 Raymond James Financial Services, Inc

20 Mr Raymond and Mrs Bridget James Projected Net Worth Hypothetical Taxable Assets Tax-Free Assets Liabilities Tax-Deferred Assets Taxable Tax-Deferred Tax-Free Year Assets Assets Assets Total Assets Liabilities Net Worth 2011 $3,685,636 $952,975 $0 $4,638,611 $679,700 $3,958, $3,990,448 $1,011,164 $0 $5,001,612 $658,271 $4,343, $4,196,538 $1,073,950 $0 $5,270,488 $635,650 $4,634, $4,236,457 $1,138,387 $0 $5,374,844 $611,769 $4,763, $4,253,395 $1,206,690 $0 $5,460,085 $586,559 $4,873, $4,278,826 $1,279,091 $0 $5,557,917 $570,481 $4,987, $4,302,857 $1,355,837 $0 $5,658,693 $554,310 $5,104, $4,340,734 $1,437,187 $0 $5,777,921 $537,169 $5,240, $4,418,435 $1,467,819 $0 $5,886,254 $518,999 $5,367, $4,498,648 $1,497,175 $0 $5,995,823 $499,739 $5,496, $4,296,214 $1,525,013 $0 $5,821,228 $479,323 $5,341, $4,337,274 $1,551,068 $0 $5,888,342 $457,683 $5,430, $4,343,100 $1,575,051 $0 $5,918,151 $434,744 $5,483, $4,342,868 $1,596,648 $0 $5,939,516 $410,428 $5,529, $4,375,857 $1,615,517 $0 $5,991,374 $384,654 $5,606, $4,406,070 $1,631,673 $0 $6,037,743 $357,333 $5,680, $4,479,146 $1,644,372 $0 $6,123,519 $328,373 $5,795, $4,554,373 $1,653,648 $0 $6,208,021 $297,676 $5,910, $4,631,833 $1,659,131 $0 $6,290,964 $265,136 $6,025, $4,711,608 $1,660,429 $0 $6,372,036 $230,644 $6,141, $4,793,778 $1,657,127 $0 $6,450,905 $194,083 $6,256, $4,878,420 $1,648,791 $0 $6,527,210 $155,328 $6,371, $5,052,667 $1,517,520 $0 $6,570,187 $114,248 $6,455, $5,254,774 $1,344,440 $0 $6,599,214 $70,702 $6,528, $5,464,964 $1,155,188 $0 $6,620,153 $24,545 $6,595, $5,683,563 $983,082 $0 $6,666,645 $0 $6,666, $5,910,906 $831,280 $0 $6,742,186 $0 $6,742, $6,147,342 $664,047 $0 $6,811,389 $0 $6,811, of 127 Raymond James Financial Services, Inc

21 Mr Raymond and Mrs Bridget James 2039 $6,393,235 $506,936 $0 $6,900,172 $0 $6,900, $6,648,965 $334,490 $0 $6,983,455 $0 $6,983, $6,914,923 $145,611 $0 $7,060,534 $0 $7,060,534 For additional details see the Data and Assumptions report pages 21 of 127 Raymond James Financial Services, Inc

22 Comprehensive Financial Plan Mr Raymond and Mrs Bridget James Projected Cash Flow Hypothetical Year Total Cash Inflows $206,000 $212,180 $190,209 $187,102 $180,216 $183,174 $191,230 $208,341 $213,387 $491,604 $254,363 $294,532 $305,477 $278,793 $287,851 $253,697 $260,156 $266,819 $273,691 $280,777 $288,080 $323,088 $337,589 $345,701 $321,546 $295,462 $304,326 $251,575 $259,123 $266,896 Total Cash Outflows $113,300 $114,845 $190,209 $187,102 $180,216 $183,174 $191,230 $208,341 $213,387 $491,604 $254,363 $294,532 $305,477 $278,793 $287,851 $253,697 $260,156 $266,819 $273,691 $280,777 $288,080 $323,088 $337,589 $345,701 $321,546 $295,462 $304,326 $251,575 $259,123 $266, of 127 Net Cash Flow $92,700 $97,335 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Raymond James Financial Services, Inc

23 Mr Raymond and Mrs Bridget James 2041 $217,479 $1,260,547 ($1,043,068) 23 of 127 Raymond James Financial Services, Inc

24 Mr Raymond and Mrs Bridget James Projected Cash Flow - Income Detail Hypothetical DBPs, Asset Notes & Government Withdrawals/ Total Cash Year Earnings Annuities Programs Other Income Loan Proceeds Inflows 2011 $206,000 $0 $0 $0 $0 $206, $212,180 $0 $0 $0 $0 $212, $27,318 $0 $31,412 $0 $131,478 $190, $0 $0 $32,354 $0 $154,748 $187, $0 $0 $33,325 $0 $146,891 $180, $0 $0 $34,325 $0 $148,849 $183, $0 $0 $55,093 $0 $136,137 $191, $0 $0 $56,746 $0 $151,594 $208, $0 $0 $58,449 $0 $154,938 $213, $0 $0 $60,202 $0 $431,402 $491, $0 $0 $62,008 $0 $192,355 $254, $0 $0 $63,868 $0 $230,664 $294, $0 $0 $65,784 $0 $239,693 $305, $0 $0 $67,758 $0 $211,035 $278, $0 $0 $69,791 $0 $218,061 $287, $0 $0 $71,884 $0 $181,812 $253, $0 $0 $74,041 $0 $186,115 $260, $0 $0 $76,262 $0 $190,557 $266, $0 $0 $78,550 $0 $195,141 $273, $0 $0 $80,907 $0 $199,870 $280, $0 $0 $83,334 $0 $204,746 $288, $0 $0 $85,834 $0 $237,254 $323, $0 $0 $88,409 $0 $249,180 $337, $0 $0 $91,061 $0 $254,640 $345, $0 $0 $93,793 $0 $227,753 $321, $0 $0 $96,607 $0 $198,855 $295, $0 $0 $99,505 $0 $204,821 $304, $0 $0 $65,770 $0 $185,806 $251, $0 $0 $67,743 $0 $191,380 $259, $0 $0 $69,775 $0 $197,121 $266, $0 $0 $71,868 $0 $145,611 $217, of 127 Raymond James Financial Services, Inc

25 Mr Raymond and Mrs Bridget James Projected Cash Flow - Outflow Detail Hypothetical Living Liability Insurance Contributions Spending Total Total Cash Year Expenses Payments Premiums to Assets Goals Taxes Outflows 2011 $0 $61,800 $0 $0 $0 $51,500 $113, $0 $61,800 $0 $0 $0 $53,045 $114, $114,117 $61,800 $0 $0 $0 $14,292 $190, $117,540 $61,800 $0 $0 $0 $7,762 $187, $121,066 $51,263 $0 $0 $0 $7,887 $180, $124,698 $50,400 $0 $0 $0 $8,075 $183, $128,439 $50,400 $0 $0 $0 $12,391 $191, $132,292 $50,400 $0 $0 $0 $25,648 $208, $136,261 $50,400 $0 $0 $0 $26,726 $213, $140,349 $50,400 $0 $0 $271,800 $29,055 $491, $144,560 $50,400 $0 $0 $30,241 $29,162 $254, $148,896 $50,400 $0 $0 $64,704 $30,532 $294, $153,363 $50,400 $0 $0 $69,881 $31,833 $305, $157,964 $50,400 $0 $0 $37,376 $33,053 $278, $162,703 $50,400 $0 $0 $40,366 $34,382 $287, $167,584 $50,400 $0 $0 $0 $35,713 $253, $172,612 $50,400 $0 $0 $0 $37,145 $260, $177,790 $50,400 $0 $0 $0 $38,629 $266, $183,124 $50,400 $0 $0 $0 $40,168 $273, $188,617 $50,400 $0 $0 $0 $41,759 $280, $194,276 $50,400 $0 $0 $0 $43,404 $288, $200,104 $50,400 $0 $0 $0 $72,584 $323, $206,107 $50,400 $0 $0 $0 $81,082 $337, $212,291 $50,400 $0 $0 $0 $83,010 $345, $218,659 $26,017 $0 $0 $0 $76,869 $321, $225,219 $0 $0 $0 $0 $70,243 $295, $231,976 $0 $0 $0 $0 $72,350 $304, $191,148 $0 $0 $0 $0 $60,427 $251, $196,882 $0 $0 $0 $0 $62,240 $259, $202,789 $0 $0 $0 $0 $64,108 $266, $208,872 $0 $0 $0 $1,000,000 $51,675 $1,260, of 127 Raymond James Financial Services, Inc

26 Asset Allocation Analysis 26 of 127 Raymond James Financial Services, Inc

27 Mr Raymond and Mrs Bridget James Allocating Your Portfolio This report has been prepared to help you create an asset allocation plan specific to your situation It can guide you through the allocation process from defining your personal investment objectives to helping determine a suitable portfolio Your Recommended Allocation The asset allocation plan presented in this report is based on the Nobel-prize winning concepts of Modern Portfolio Theory This theory holds that you can minimize the effects of investment risk through intelligent diversification In a properly diversified portfolio, gains in one investment class may help offset losses in another Remember that this asset allocation plan is designed to help you meet long-term investment objectives, which are generally assumed to be five or more years in the future Investing over extended periods of time allows you to assume a reasonable amount of risk with the expectation of higher returns and take advantage of the moderating effect of time on investment risk In general, the longer an investment's time horizon, the more likely the investment has the potential to earn a positive return Adherence to this asset allocation plan can play a key role in helping you achieve your financial objectives Like any financial plan, it should be reviewed periodically 27 of 127 Raymond James Financial Services, Inc

28 Mr Raymond and Mrs Bridget James Risk Tolerance Analysis 1 Risk Factor: Before you make a decision on any investment, you need to consider how you feel about the prospect of potential loss of principal This is a basic principle of investing: the higher return you seek, the more risk you face Based on your feelings about risk and potential returns, your goal is to: A Potentially increase my portfolio's value as quickly as possible while accepting higher levels of risk B Potentially increase my portfolio's value at a moderate pace while accepting moderate to high levels of risk C Income is of primary concern while capital appreciation is a secondary goal D Take as little risk as possible with my investment principal 2 Investment Approach: Which of the following statements best describes your overall approach to investing as a means of achieving your goals? A Having a relative level of stability in my overall investment portfolio B Moderately increasing my investment value while reducing the potential for loss of principal C Pursue investment growth, accepting moderate to high levels of risk and principal fluctuation D Seek maximum long-term returns while accepting maximum risk with maximum principal fluctuation 3 Volatility: The value of most investments fluctuates from year to year as well as over the short term How would you feel if an investment you had committed to for ten years lost 20% of its value during the first year? A I would be extremely concerned and would sell my investment B I would be concerned and may consider selling my investment C I would be concerned, but I would not consider selling my investment D I would not be overly concerned given my long-term investment philosophy 28 of 127 Raymond James Financial Services, Inc

29 Comprehensive Financial Plan 4 Mr Raymond and Mrs Bridget James Variation: Realizing that any market-based investments may move up or down in value over time, with which of the hypothetical portfolios and volatility of hypothetical returns below would you feel most comfortable? A Portfolio A B Portfolio B C Portfolio C D Portfolio D E Portfolio E 5 Investment Experience: What is your overall knowledge of investments? A LOW: I have very little investment experience outside of bank savings accounts, money market funds and certificates of deposit (CDs) B MEDIUM: I have some experience investing in mutual funds or individual stocks and bonds C HIGH: I have been an active participant in the stock market and understand that all investments, including international markets, can be volatile and unpredictable 29 of 127 Raymond James Financial Services, Inc

30 Comprehensive Financial Plan 6 Mr Raymond and Mrs Bridget James Time Horizon: An important consideration when making investment decisions is where you are in your financial life cycle and how long you have before you will need to start withdrawing the assets Through consultation with your Financial Advisor, please indicate your portfolio's appropriate time horizon A multi-stage time horizon would indicate that you have several goals in the future that may require withdrawals at different times that your investment portfolio needs to address A Short (1-4 Years) B Long (5-10+ Years) C Multi-stage 7 Primary Goal: Please indicate approximately how many years from today until you reach your primary goal A Within 1 to 4 years B Within 5 to 10 years C Within 11 to 20 years D More than 20 years 8 Secondary Goal: Some investors have a multi-stage time horizon with several goals for their portfolio Please indicate approximately how many years from today until you reach your secondary goal A Not applicable, I only have a single stage time horizon B Within 1 to 4 years C Within 5 to 10 years D More than 10 years 30 of 127 Raymond James Financial Services, Inc

31 Mr Raymond and Mrs Bridget James 9 Age: What is your current age? A Under 35 B Between 36 to 45 C Between 46 to 55 D Between 56 to 70 E Over Investment Earnings: Based on your current and estimated future income needs, what percentage of your investment earnings do you think you would be able to reinvest? A Reinvest 100 percent of my investment earnings B Reinvest 20 to 80 percent of my investment earnings C Reinvest 0% (receive all investment earnings for cash flow) D My investment earnings will not be sufficient and I will need to withdrawal principal 11 Investment Value: What is the current value of your total investment portfolio? Please include the value of all your investments, including CDs, 401(k)s, 403(b)s, IRAs, annuities, etc *NOTE: Alternative investments may be recommended in your portfolio A More than $1,000,000* B $500,001 to $1,000,000 C $300,001 to $500,000 D $100,000 to $300,000 E Less than $100, Living Expense: Emergencies such as accidents, illnesses, hospitalizations, job loss, etc can occur In the event you faced an emergency, how many months of your total annual living expenses could be covered by your current liquid investments (such as savings/checking accounts, CDs with maturities less than six months, etc)? A More than 12 months, or not a concern B Between 4 and 12 months C Less than 4 months, or already withdrawing 13 Household Income: Total earnings, which includes earned and investment income, is a requirement when assessing your risk tolerance and determining allocation of assets What is your total annual household income (including interest and tax deferred income)? A More than $200,000 B $150,000 to $199,999 C $100,000 to $149,999 D $50,000 to $99,999 E Less than $49, Income Saving: The percentage of your total income that you currently save is approximately: A I do not currently save any income B Between 2% - 7% C Between 7% - 12% D Greater than 12% 31 of 127 Raymond James Financial Services, Inc

32 Mr Raymond and Mrs Bridget James 15 Future Earnings: In the next five years, you expect that your earned income will probably: A Decrease B Stay about the same C Increase modestly D Increase significantly 16 What portion of the investment assets that pertain to this Investment Policy Statement are located at RJ? All/Majority of Assets Your Risk Profile: Balanced Use of risk tolerance analysis is one approach for helping you select a suitable portfolio Your risk profile has been determined based on your responses to the risk questionnaire This information was used to identify a range of portfolios on the Efficient Frontier that may be appropriate for your risk profile 32 of 127 Raymond James Financial Services, Inc

33 Comprehensive Financial Plan Mr Raymond and Mrs Bridget James Efficient Frontier - Proposed Mix Efficient Frontier Income Equity Income Balanced Balanced with Growth Growth Aggressive Growth Proposed Mix Suggested Mix Proposed Asset Allocation - Balanced Total 100% Before-Tax Annual Return After-Tax Annual Return Standard Deviation (Risk) Sharpe Ratio After-Tax Yield Present Mix Proposed Mix 000% 000% 000% % 828% 756% 922% % 33 of 127 Raymond James Financial Services, Inc

34 Mr Raymond and Mrs Bridget James Proposed Asset Mix Proposed Asset Mix Cash Equivalents 200% Domestic Fixed 2100% High Yield 700% International Fixed 500% Large Cap Value 650% Large Cap Blend 1600% Large Cap Growth 650% Mid Cap Value 425% Mid Cap Growth 425% Small Cap Blend 550% International Equity 1200% Real Estate and Tangibles 1000% Total 10000% Before-Tax Annual Return 828% After-Tax Annual Return 756% Standard Deviation (Risk) 922% Sharpe Ratio 05 After-Tax Yield 309% 34 of 127 Raymond James Financial Services, Inc

35 Mr Raymond and Mrs Bridget James Proposed Asset Mix Proposed Asset Mix Cash Equivalents 200% Domestic Fixed 2100% High Yield 700% International Fixed 500% Large Cap Value 650% Large Cap Blend 1600% Large Cap Growth 650% Mid Cap Value 425% Mid Cap Growth 425% Small Cap Blend 550% International Equity 1200% Real Estate and Tangibles 1000% Total 10000% Before-Tax Annual Return 828% After-Tax Annual Return 685% Standard Deviation (Risk) 849% Sharpe Ratio 045 After-Tax Yield 272% 35 of 127 Raymond James Financial Services, Inc

36 Mr Raymond and Mrs Bridget James Asset Mix Backtest - Periodic Returns - Actual Returns Return Risk Proposed Asset Mix 777% 1370% Backtested performance cannot represent actual account performance and should not be interpreted as an indication of such performance The asset mix that the backtested results are based upon can be changed at any time and would likely have produced different real performance results Backtested performance also cannot represent the impact that material economic and market factors might have on investment decision-making, including security selection, timing or the impact of personal and /or portfolio constraints While there is no indication that these backtested results could, or would, have been achieved had this asset mix been used during the years presented, this is meant as a general picture produced by a weighted average based on the asset classes proposed In Backtesting for the Present Asset mix, results are calculated using benchmark proxies, instead of specific asset returns, in a weighted average portfolio blend The risks, returns and other relevant characteristics of these benchmark proxies are detailed in the Scenario Assumptions portion of this report Additionally, the results portrayed reflect the reinvestment of dividends and other earnings The deduction of fees, commissions, and other expenses that would have been paid are not reflected If fees, commissions, and other expenses were reflected in the Present or Proposed Asset Mixes the investment results would be lower Results may vary over time and with each use due to variables such as asset mixes, benchmarks associated to each asset class and common time period The results portrayed above represent returns generated using Benchmark Proxies for each of the Asset Classes shown All dividends, capital gains, interest income are reinvested As a particular security may have widely divergent results from that of its asset class, this represents only a modeled portfolio and your own investment results might have been very different from those portrayed 36 of 127 Raymond James Financial Services, Inc

37 Mr Raymond and Mrs Bridget James Asset Mix Backtest - Compound Returns - Actual Returns Return Risk Proposed Asset Mix 777% 1370% Backtested performance cannot represent actual account performance and should not be interpreted as an indication of such performance The asset mix that the backtested results are based upon can be changed at any time and would likely have produced different real performance results Backtested performance also cannot represent the impact that material economic and market factors might have on investment decision-making, including security selection, timing or the impact of personal and /or portfolio constraints While there is no indication that these backtested results could, or would, have been achieved had this asset mix been used during the years presented, this is meant as a general picture produced by a weighted average based on the asset classes proposed In Backtesting for the Present Asset mix, results are calculated using benchmark proxies, instead of specific asset returns, in a weighted average portfolio blend The risks, returns and other relevant characteristics of these benchmark proxies are detailed in the Scenario Assumptions portion of this report Additionally, the results portrayed reflect the reinvestment of dividends and other earnings The deduction of fees, commissions, and other expenses that would have been paid are not reflected If fees, commissions, and other expenses were reflected in the Present or Proposed Asset Mixes the investment results would be lower Results may vary over time and with each use due to variables such as asset mixes, benchmarks associated to each asset class and common time period The results portrayed above represent returns generated using Benchmark Proxies for each of the Asset Classes shown All dividends, capital gains, interest income are reinvested As a particular security may have widely divergent results from that of its asset class, this represents only a modeled portfolio and your own investment results might have been very different from those portrayed 37 of 127 Raymond James Financial Services, Inc

38 Mr Raymond and Mrs Bridget James Selected Indices - Periodic Returns - Actual Returns Return Risk S&P 500 Composite 1106% 1730% BarCapAggregateBnd 837% 710% FED 3-Mo T-Bill (S) 557% 313% CPI-U All Items 408% 293% The annual returns for several market indices are shown over a past time period The total returns include income and appreciation, but do not consider inflation and taxes Past performance may not be a good indicator of the future performance, the volatility and the degree of association between asset classes 38 of 127 Raymond James Financial Services, Inc

39 Mr Raymond and Mrs Bridget James Selected Indices - Compound Returns - Actual Returns Return Risk S&P 500 Composite 1106% 1730% BarCapAggregateBnd 837% 710% FED 3-Mo T-Bill (S) 557% 313% CPI-U All Items 408% 293% The compound growth of one dollar invested in each of several market indices is shown for the past several years Compound growth is the accumulated dollar value assuming the reinvestment of returns The past total returns shown include both interest and appreciation They do not reflect taxes and inflation effects In general, relatively risky asset classes exhibit higher compound growth potential than more conservative asset classes 39 of 127 Raymond James Financial Services, Inc

40 Comprehensive Financial Plan Mr Raymond and Mrs Bridget James Selected Indices - Scatter Plot Return Risk 1106% 1730% 837% 710% 557% 313% 408% 293% S&P 500 Composite BarCapAggregateBnd FED 3-Mo T-Bill (S) CPI-U All Items The Risk vs Return scatter plot shows the historical average annual return and risk for several market indices This graph makes it easy to compare the relative return and risk between different types of investments The past total returns shown include both current income and capital gains The returns do not reflect tax and inflation effects 40 of 127 Raymond James Financial Services, Inc

41 Mr Raymond and Mrs Bridget James Scenario Assumptions Scenario Assumptions Asset Class Index Proxy Return Risk Yield Dividend Turnover Cash Equivalents FED 3-Mo T-Bill (S) 225% 200% 225% 000% 10000% Domestic Fixed BarCap IntGovt/Crdt 500% 600% 500% 000% 4000% Tax-Free Fixed BarCap MunicipalBond 385% 800% 385% 000% 4000% High Yield BarCap High Yield 825% 1500% 850% 000% 4000% International Fixed CITI NonUS WGBI-All$ 575% 1325% 575% 000% 4000% Large Cap Value RUSS 1000 Value 950% 1325% 000% 250% 4000% Large Cap Blend RUSS 1000 Index 970% 1450% 000% 225% 4000% Large Cap Growth RUSS 1000 Growth 1015% 1525% 000% 175% 4000% Mid Cap Value RUSS Midcap Value 980% 1675% 000% 215% 4000% Mid Cap Blend RUSS MidCap Index 1000% 1800% 000% 200% 4000% Mid Cap Growth RUSS MidCap Growth 1030% 1900% 000% 190% 4000% Small Cap Value RUSS 2000 Value 1065% 1850% 000% 225% 4000% Small Cap Blend RUSS 2000 Index 1085% 2000% 000% 200% 4000% Small Cap Growth RUSS 2000 Growth 1125% 2200% 000% 150% 4000% All Cap RUSS 3000 Index 930% 1500% 000% 225% 4000% Balanced LIPR Balanced Fund 690% 1100% 265% 050% 6000% International Equity MSCI EAFE Index-$ 1065% 2225% 000% 175% 4000% Real Estate and Tangibles Wilshire RESI 765% 1350% 365% 000% 1000% Alternative Investments Alternative Investment 740% 1350% 000% 000% 4000% Concentrated Large Cap NASDAQ 100 Index 1015% 4575% 000% 165% 500% Concentrated Small Cap SURZ Small Growth 1125% 6600% 000% 150% 500% Inflation Rate: 300% Holding Limits Non-Qualified Assets Qualified Assets Non-Qualified Tax-Deferred Assets Asset Class Min % Max % Min % Max % Min % Max % Cash Equivalents 000% 10000% 000% 10000% 000% 10000% Domestic Fixed 000% 10000% 000% 10000% 000% 10000% Tax-Free Fixed 000% 10000% 000% 000% 000% 000% High Yield 000% 10000% 000% 10000% 000% 10000% International Fixed 000% 10000% 000% 10000% 000% 10000% Large Cap Value 000% 10000% 000% 10000% 000% 10000% Large Cap Blend 000% 000% 000% 000% 000% 000% Large Cap Growth 000% 10000% 000% 10000% 000% 10000% Mid Cap Value 000% 10000% 000% 10000% 000% 10000% Mid Cap Blend 000% 000% 000% 000% 000% 000% Mid Cap Growth 000% 10000% 000% 10000% 000% 10000% Small Cap Value 000% 10000% 000% 10000% 000% 10000% Small Cap Blend 000% 000% 000% 000% 000% 000% Small Cap Growth 000% 10000% 000% 10000% 000% 10000% All Cap 000% 000% 000% 000% 000% 000% Balanced 000% 000% 000% 000% 000% 000% International Equity 000% 10000% 000% 10000% 000% 10000% Real Estate and Tangibles 000% 10000% 000% 10000% 000% 10000% Alternative Investments 000% 1500% 000% 1500% 000% 1500% 41 of 127 Raymond James Financial Services, Inc

42 Mr Raymond and Mrs Bridget James Concentrated Large Cap 000% 000% 000% 000% 000% 000% Concentrated Small Cap 000% 000% 000% 000% 000% 000% The long-term capital market assumptions were developed and reviewed by the SunGard Assumptions Committee The Committee relies on the input and expertise of a range of product managers and analysts and is based upon what they believe is appropriate The Committee's goal in asset allocation modeling work is to provide underlying assumptions that will help advisors guide their clients into a long-term investment strategy that is appropriate for that client's financial situation and tolerance for risk Key elements in SunGard's assessment of the capital market assumptions include: 1) Quarterly reviews of the markets, loosely based upon historical performance and expected future results; 2) Historical data contained in SunGard's Index Histories Database including contracts with vendors such as Morningstar, Barclay's Capital, Citigroup, The Conference Board, and the Commodities Research Board, etc The data goes back to 1960 or date of inception of the index and is supplemented with information from the annual Stocks, Bonds, Bills and Inflation Yearbook for data back to 1926 on major markets 42 of 127 Raymond James Financial Services, Inc

43 Goal Planning Analysis 43 of 127 Raymond James Financial Services, Inc

44 Mr Raymond and Mrs Bridget James Goal Planning The ultimate purpose of financial planning is to make your wealth grow so that you can reach your financial objectives Accumulation goals are financial objectives in addition to retirement planning, and may include funding a dependent's education or purchasing a boat or vacation home Funding Your Goals This report illustrates the amounts you will need to accumulate to meet your goals It also illustrates all taxable assets that you indicated are available to fund pre-retirement goals and any assets that you indicated are available separately (such as custodian accounts) to fund pre-retirement goals If your assets will not fully fund your goals, the analysis assumes that a loan is used to fund the goals and that the loan is repaid at retirement using retirement funds Important Information Before you make investment decisions, you need to understand the following important concepts: Risk and return are interrelated Seeking higher returns normally means accepting a higher level of risk Risk is a measurement of the probability that an investment's actual return may be different from what is expected The more likely it is that an investment's actual returns will vary from hypothetical returns, the riskier the investment Inflation can have a significant impact on your ability to accumulate enough resources to fund your goals For example, assuming an annual inflation rate of 500%, $1,000 worth of goods today could cost $1,276 in 5 years and $1,629 in 10 years Time horizon is the period over which you hold a specific investment In short time frames, investment returns typically vary widely, resulting in higher short-term risk As the time horizon lengthens, variations in returns become less noticeable Financial product The type of financial product that is right for you depends on your own personal situation In selecting a product, consider: How soon you need the money The level of risk you are willing to accept The taxes you pay The following suggestions, combined with appropriate investment products, could help you achieve your goals Start now Develop a plan Pay yourself first Eliminate debt Review your plan regularly 44 of 127 Raymond James Financial Services, Inc

45 Mr Raymond and Mrs Bridget James FYI Evaluating your goals in light of your complete investment plan will help you make better investment decisions The type of financial product that is right for you depends on your personal circumstances Consider: How soon you need the money Your level of acceptable investment risk You and your child's tax brackets Estate tax liability Itemized Goals Your pre-retirement itemized goals are listed below, classified as either Education Goals or as Other Accumulation Goals Education Goals Years Years of Annual Cost Inflation Portion Student Name Until Need Need Amount Rate to Fund Paris 10 4 $12, % 10000% Thad 12 4 $12, % 10000% Other Accumulation Goals Years Years of Annual Cost Inflation Portion Description Until Need Need Amount Rate to Fund World Cruise 10 1 $200, % 10000% Note that the analysis assumes taxable assets are used to pay for these goals In the event that taxable assets are insufficient, a loan is created to fund the goals The following suggestions, combined with proper investment products, can help you achieve your goals Start now Develop a plan Pay yourself first Eliminate debt Review your plan regularly 45 of 127 Raymond James Financial Services, Inc

46 Mr Raymond and Mrs Bridget James Goal Funding - Chart The pre-retirement goals and planned asset withdrawals you have defined and the assets available to fund them are projected in the following chart: Based on the information provided, your available taxable assets provide sufficient resources to fully fund all your pre-retirement goals and planned asset withdrawals Only taxable assets that are available for liquidation prior to retirement are used to fund pre-retirement goals At retirement, any taxable assets that were not available prior to retirement, as well as your tax-deferred and tax-free assets are used to pay off any loan incurred to fund pre-retirement objectives For additional details see the Data and Assumptions report pages 46 of 127 Raymond James Financial Services, Inc

47 Mr Raymond and Mrs Bridget James Goal Funding - Table The year-by-year cost of your pre-retirement goals and the balance of the assets available to fund them are illustrated in the following table Goals and Pre-Retirement General Total Year Withdrawals Goal Assets Assets Assets 2010 $0 $0 $1,454,170 $1,454, $0 $0 $1,553,636 $1,553, $0 $0 $1,773,168 $1,773, $0 $0 $1,890,567 $1,890,567 For additional details see the Data and Assumptions report pages 47 of 127 Raymond James Financial Services, Inc

48 Retirement Analysis 48 of 127 Raymond James Financial Services, Inc

49 Mr Raymond and Mrs Bridget James Planning For Your Retirement The purpose of retirement planning is to determine the level of funding needed to help meet your retirement goals and identify the actions you will need to take to achieve that level of funding A good retirement plan will answer the following questions about your current retirement preparations and objectives: What would my spendable income during retirement be if I maintain my current patterns of income, spending, and saving? How much would I have to save annually in order to achieve my annual retirement spending objective? How will varying the assumed rates of return on my assets affect the results of the analysis? What can I do to facilitate more rapid growth of wealth? Your Retirement Plan In this report, your retirement plan is analyzed in two different ways, as summarized below, using two sets of assumptions First, your current commitment to saving and investing is assumed to remain constant, and your current situation is projected into the future This illustrates the income you might have available during retirement if your current saving and investment patterns do not change Second, changes are made to your current level of saving and investing, as well as to your assumed returns and alternatives, that may enhance your projected retirement situation The results of these changes are compared to your desired retirement spending objective and to the original projection Benefits of Retirement Planning Among other benefits, a proper retirement plan can: Help you set attainable spending goals for retirement Help you understand where you are in relationship to your goals Illustrate the impact of changing your current spending and saving patterns Help you utilize planning concepts such as tax deferral, time horizons, and tax reduction 49 of 127 Raymond James Financial Services, Inc

50 Mr Raymond and Mrs Bridget James FYI Retirement Ages People are living longer and spending more time in retirement than a generation ago If you retire at age 65, you can expect to live an additional 20 years (male) to 23 years (female) Current Age Years to Retirement Retirement Age Years of Retirement Ending Retirement Age Raymond Bridget Some people will live beyond their life expectancy, perhaps even past age 100 You may want to consider a long life expectancy in your planning Source: Society of Actuaries Annuity 2000 Mortality Table Inflation and Taxes General Inflation Rate Effective Income Tax Rate Average Capital Gains/Dividends Tax Rate Pre-Retirement 450% 2500% 1500% Post-Retirement 300% 2500% 1500% Inflation rates have varied from year to year and will vary in the future The general inflation rate used for this analysis should be an average rate to compensate for annual variations Post-Retirement Asset Assumptions Taxable Tax-Free Tax-Deferred Rate of Return 600% 600% 600% Order to Liquidate The rate of return on your assets can have a significant impact on the balance of your accounts over time Be sure to monitor your actual returns regularly to see how closely they match your plan Surviving Spouse/Partner Retirement Goal Portion of Annual Retirement Spending Goal to Fund for Surviving Spouse/Partner 8000% 50 of 127 Raymond James Financial Services, Inc

51 Mr Raymond and Mrs Bridget James FYI Assets Cash assets may include cash, savings accounts, CDs, and short-term bonds Cash Assets Current Value $27,500 Current Year Contributions $0 Investment assets may include non-cash financial assets Investment Assets Business/Real Estate Assets $1,426,670 $550,000 $0 $0 Retirement assets include your current IRAs, 401(k)s, and other plans dedicated to retirement funding These funds may be in a variety of different investments, including cash Retirement Assets Personal Assets Stock Options Deferred Compensation and Annuities $899,000 $1,500,000 $0 $0 $0 Business assets may include real estate, business inventory, and other business interests Cash Value of Life Insurance $0 Personal assets may include a home, artwork, or collectibles Retirement Income Sources Raymond Bridget Government programs include Social Security, military service income, and civil service income To receive a personal estimate of benefits, contact the Social Security Administration at , or visit their website at wwwssagov Social Security (first-year amount) Other Government Programs Earnings During Retirement Miscellaneous Income Income from DBPs, Notes & Annuities Business/Real Estate Income $31,412 No No No No No $19,739 No No 51 of 127 Raymond James Financial Services, Inc

52 Mr Raymond and Mrs Bridget James FYI Setting financial goals is the first step to reaching them Knowing where you are in relation to your retirement goals may help you plan more effectively for retirement Retirement Spending Goal Your annual retirement spending goal has been established as $100,000 per year in today's dollars At 450% inflation, what $100,000 buys today will cost $114,117 at retirement and $261,091 by the end of your retirement Today's Year of Dollars Retirement Annual retirement spending goals $100,000 $114,117 Total resources needed to fund goals $2,872,905 $3,421,676 Approximate attainable annual retirement spending $89,391 $102,010 Your retirement spending goal is projected to look like this: Most people need 60% - 80% of their pre-retirement income to maintain their standard of living during retirement However, a fixed percentage may not be right for everyone The amount you will need depends on your vision of retirement, including a variety of options such as work, travel, hobbies, relocation, expenses, and more The financial resources needed to meet a major goal like retirement can be overwhelming Some people might prefer to ignore the issue Others face the issue and build a plan to reach their goals With a plan in place, even large obstacles and challenges can be overcome This graph reflects your Annual Retirement Spending Goal, Legacy, Other Retirement Objectives, Long-Term Care Needs, Insurance Premiums and any Liability Payments that occur during retirement It is projected that your current resources will fund about 9404% of your retirement spending goal Current Funding 9404% Shortfall 596% 52 of 127 Raymond James Financial Services, Inc

53 Mr Raymond and Mrs Bridget James Projected Asset Balances - Graph The following graph illustrates the balance of your assets available to fund retirement, broken down by account type, between now and the end of your retirement Taxable Assets Tax-Free Assets Tax-Deferred Assets Projected Loan for Pre-Retirement Goals All numbers are approximate and are based on information you provided Past performance is no guarantee of future results Failure to review your situation in the future can result in an outcome dramatically different from that portrayed here 53 of 127 Raymond James Financial Services, Inc

54 Mr Raymond and Mrs Bridget James Projected Asset Balances - Table Taxable Assets Tax-Free Assets Tax-Deferred Assets Projected Loan for Pre- Beginning Beginning Beginning Itemized Goals Retirement Year Balance Withdrawal Balance Withdrawal Balance Withdrawal and Withdrawals Goals 2010 $1,454,170 $0 $899,000 $0 $ $1,553,636 $0 $952,975 $0 $ $1,773,168 $0 $1,011,164 $0 $ $1,890,567 $131,478 $0 $0 $1,073,950 $0 $0 $ $1,838,247 $154,748 $0 $0 $1,138,387 $0 $0 $ $1,759,257 $146,891 $0 $0 $1,206,690 $0 $0 $ $1,684,922 $148,849 $0 $0 $1,279,091 $0 $0 $ $1,605,196 $136,137 $0 $0 $1,355,837 $0 $0 $ $1,535,167 $99,142 $0 $0 $1,437,187 $52,452 $0 $ $1,500,646 $99,549 $0 $0 $1,467,819 $55,389 $0 $ $1,464,147 $372,919 $0 $0 $1,497,175 $58,483 $0 $ $1,140,334 $130,613 $0 $0 $1,525,013 $61,741 $0 $ $1,055,157 $165,493 $0 $0 $1,551,068 $65,171 $0 $ $929,699 $170,913 $0 $0 $1,575,051 $68,780 $0 $ $792,932 $138,460 $0 $0 $1,596,648 $72,575 $0 $ $683,923 $141,857 $0 $0 $1,615,517 $76,204 $0 $ $566,459 $101,434 $0 $0 $1,631,673 $80,378 $0 $ $485,950 $101,788 $0 $0 $1,644,372 $84,327 $0 $ $401,449 $102,127 $0 $0 $1,653,648 $88,430 $0 $ $312,792 $102,452 $0 $0 $1,659,131 $92,689 $0 $ $219,805 $102,769 $0 $0 $1,660,429 $97,101 $0 $ $122,303 $103,082 $0 $0 $1,657,127 $101,664 $0 $ $20,086 $20,086 $0 $0 $1,648,791 $217,168 $0 $ $0 $0 $0 $0 $1,517,520 $249,180 $0 $ $0 $0 $0 $0 $1,344,440 $254,640 $0 $ $0 $0 $0 $0 $1,155,188 $227,753 $0 $ $0 $0 $0 $0 $983,082 $198,855 $0 $ $0 $0 $0 $0 $831,280 $204,821 $0 $ $0 $0 $0 $0 $664,047 $185,806 $0 $ $0 $0 $0 $0 $506,936 $191,380 $0 $ $0 $0 $0 $0 $334,490 $197,121 $0 $ $0 $0 $0 $0 $145,611 $145,611 $0 $0 Table Notes 1 All numbers are approximate and are based on information you provided 2 Balances include only the portion of each asset available to fund goals 3 Failure to review your situation in the future can result in an outcome dramatically different from that portrayed here 4 Projected Loan for Pre-Retirement Goals has an assumed interest rate equal to the average return of all taxable assets 5 The analysis may assume a Projected Loan for Pre-Retirement Goals when pre-retirement goals exceed the available balance of taxable assets Pre-Retirement Goals are financial goals you may want to fund or achieve before retirement, as entered in the Financial Goals section of the analysis A planned asset withdrawal creates a positive cash inflow and reduces the balance of taxable assets by the amount of the withdrawal If insufficient taxable assets are available to fund the withdrawal, a debit balance (liability) will be incurred 6 Beginning Balance amounts reflect withdrawals needed to fund pre-retirement goals, which are funded first from taxable assets and second from loan proceeds 7 This analysis gives you an overall picture of your assets during this period, while the table provides a projected year-by-year breakdown of asset values there are no guarantees In addition, the analysis may show the projected year-by-year value of the Pre-Retirement Goals, including the balance of any liabilities incurred from funding pre-retirement goals/loans 54 of 127 Raymond James Financial Services, Inc

55 Mr Raymond and Mrs Bridget James Projected Income - Graph The following graph illustrates your expected spending goals during retirement It also illustrates your expected cash flows, earnings, and asset withdrawals that may be available to help fund your spending goals Social Security & Other Government Programs DBPs, Notes & Annuities Earnings & Other Income Net Assets Withdrawn Shortfall Significant Events * Raymond retires in 2013 * Bridget retires in 2014 * Raymond is in retirement for 25 years (until 2037) * Bridget is in retirement for 28 years (until 2041) All numbers are approximate and are based on information you provided Past performance is no guarantee of future results Failure to review your situation in the future can result in an outcome dramatically different from that portrayed here 55 of 127 Raymond James Financial Services, Inc

56 Mr Raymond and Mrs Bridget James Projected Income - Table Social Total Security & DBPs, Earnings Spending Other Govt Notes & & Other Net Assets Tax on Year Goal Programs Annuities Income Withdrawn Withdrawal Shortfall 2013 $175,917 $24,737 $0 $20,489 $130,691 $787 $ $179,340 $25,479 $0 $0 $153,861 $887 $ $172,329 $26,243 $0 $0 $146,086 $806 $ $175,098 $27,031 $0 $0 $148,068 $781 $ $178,839 $43,386 $0 $0 $135,453 $684 $ $182,692 $44,688 $0 $0 $138,005 $13,590 $ $186,661 $46,028 $0 $0 $140,633 $14,305 $ $462,549 $47,409 $0 $0 $415,140 $16,262 $ $225,201 $48,831 $0 $0 $176,369 $15,985 $ $264,001 $50,296 $0 $0 $213,704 $16,960 $ $273,644 $51,805 $0 $0 $221,839 $17,854 $ $245,740 $53,359 $0 $0 $192,380 $18,655 $ $253,469 $54,960 $0 $0 $198,509 $19,552 $ $217,984 $56,609 $0 $0 $161,375 $20,437 $ $223,012 $58,307 $0 $0 $164,704 $21,411 $ $228,190 $60,057 $0 $0 $168,133 $22,424 $ $233,524 $61,858 $0 $0 $171,665 $23,476 $ $239,017 $63,714 $0 $0 $175,303 $24,567 $ $244,676 $65,625 $0 $0 $179,050 $25,696 $ $250,504 $67,594 $0 $0 $182,910 $54,344 $ $256,507 $69,622 $0 $0 $186,885 $62,295 $ $262,691 $71,711 $0 $0 $190,980 $63,660 $ $244,676 $73,862 $0 $0 $170,815 $56,938 $ $225,219 $76,078 $0 $0 $149,141 $49,714 $ $231,976 $78,360 $0 $0 $153,615 $51,205 $ $191,148 $51,794 $0 $0 $139,354 $46,451 $ $196,882 $53,347 $0 $0 $143,535 $47,845 $ $202,789 $54,948 $0 $0 $147,841 $49,280 $ $1,208,872 $56,596 $0 $0 $109,208 $36,403 $1,043,068 Table Notes 1 All numbers are approximate and are based on information you provided 2 Past performance is no guarantee of future results 3 Failure to review your situation in the future can result in an outcome dramatically different from that portrayed here 56 of 127 Raymond James Financial Services, Inc

57 Estate Analysis 57 of 127 Raymond James Financial Services, Inc

58 Mr Raymond and Mrs Bridget James Overview Planning Your Estate Building your estate requires a lifetime of effort and careful planning Similar careful planning is required to achieve your estate planning goals If you do not make appropriate estate planning provisions during your life, your estate may be unduly diminished by taxes and suffer from poor management, administrative delays, and/or increased settlement costs If you plan your estate properly, you may increase your ability to achieve lifelong goals and provide for your family, charities, and others You may also reduce the transfer taxes and settlement costs that may be assessed at your death Estate and income tax laws change frequently, which means that you will need to review your plans on a regular basis in order to adjust to these changes Your Estate Plan In addition to providing information about general estate planning rules and concepts, this report does three things First, it illustrates your current estate situation Second, it projects your estate to a set point in time and illustrates your estate situation at that time Third, it discusses estate-planning alternatives that may benefit you and your beneficiaries Your estate plan should center on your financial situation and your future financial goals Because factors in both of these areas may change over time, you should periodically review your estate plan with your financial advisor, estate-planning attorney, and tax advisor Benefits of Estate Planning A proper estate plan may do the following: Reduce your estate tax liability Reduce your asset transfer costs Direct your financial resources to those you choose Ease your family's burden during a time of stress 58 of 127 Raymond James Financial Services, Inc

59 Mr Raymond and Mrs Bridget James Estate Assumptions Personal Information Mr Raymond and Mrs Bridget James General Assumptions Scenario name Main Scenario Plan date 08/04/2010 Current Estate Structure Raymond Bridget Will Yes Yes Bequests to non-skip persons (not including the surviving client) Dollar Amount $0 $0 Percent 000% 000% Bequests to skip persons (subject to Generation-skipping Transfer Tax) Dollar Amount $0 $0 Credit shelter trust Yes Yes Estate Planning Assumptions Raymond Bridget Death age (for estate plan) Funeral and final expenses (in today's dollars) $15,000 $15,000 Probate expenses Percent Percent Percent of the probate estate 1000% 1000% Administration expenses (as a percent of the gross estate) 500% 500% Growth Rates Growth/depletion of survivor's estate after first death Annual percent adjustment to value of estate 000% Annual dollar adjustment to value of estate $0 Index dollar adjustment with inflation? No Rate of return for assets held in trust 000% Federal and State Estate Tax Assumptions Raymond Bridget Federal estate tax law applied Sunset Sunset State estate tax law applied State Freeze State Freeze State freeze year Historical Gifting Information Raymond Bridget Cumulative total gifts in excess of annual exclusion $0 $0 Cumulative gift tax previously paid on above total $0 $0 Cumulative gift tax credit previously used $0 $0 Generation-skipping transfer tax exemption previously used $0 $0 59 of 127 Raymond James Financial Services, Inc

60 Mr Raymond and Mrs Bridget James Current Estate Flowchart This flowchart illustrates estate distributions according to your existing estate plan, assuming Raymond dies before Bridget in 2010 Asset Values in 2010 Raymond's Assets $2,895,670 Bridget's Assets $1,500,000 Joint Assets $7,500 Community/TC $0 F i r s t Raymond's Gross Estate $2,899,420 Settlement Costs* $1,059,638 D e a t h To Survivor $1,839,782 CST $0 To Beneficiaries $0 To Charities $0 S e c o n d D e a t h Bridget's Gross Estate $3,343,532 Settlement Costs* $515,518 To Beneficiaries $2,828,014 To Charities $0 Legend Transfers of Assets Transfers of Income T o t a l s Settlement Costs* $1,575,156 To Beneficiaries $2,828,014 To Charities $0 1 Settlement Costs include funeral, probate, and administration costs, liabilities paid at death, and estate and generation-skipping transfer taxes See the Estate Tax & Settlement Costs page for details 2 Amounts to Beneficiaries include all beneficiaries that are not charities, including those subject to generation-skipping transfer tax 60 of 127 Raymond James Financial Services, Inc

61 Mr Raymond and Mrs Bridget James FYI You have worked hard to accumulate the financial resources to support your family today and leave a legacy for tomorrow Your gross estate includes the value of all assets that you own, and may include the value of rights to future income, or the value of assets over which you retain control The rules that define what is included in your gross estate are complex Your attorney and tax advisor can help you determine which assets will be included in your gross estate Current Assets by Owner Community/ T Common Assets Raymond Bridget Joint Assets Cash assets $20,000 $0 $7,500 $0 Investment assets $1,426,670 $0 $0 $0 Retirement assets $899,000 $0 N/A N/A Stock options $0 $0 N/A $0 DBPs and Annuities $0 $0 $0 $0 Deferred compensation $0 $0 N/A N/A Notes receivable $0 $0 $0 $0 Business assets $550,000 $0 $0 $0 Personal assets $0 $1,500,000 $0 $0 Total assets $2,895,670 $1,500,000 $7,500 $0 Current Gross Estate Raymond Bridget Individually owned assets $2,895,670 $1,500,000 50% of joint assets $3,750 $3,750 50% of community assets/tenancy in common assets $0 $0 Life insurance included in estate $0 $0 Assets received at Raymond's death N/A $1,839,782 Current gross estate $2,899,420 $3,343, of 127 Raymond James Financial Services, Inc

62 Mr Raymond and Mrs Bridget James FYI The numbers on this page show estimated settlement costs, assuming you were to die today Federal and state estate tax amounts are also estimated, based on the asset and liability information you provided Please consult your tax and legal advisors regarding these estimates The federal government allows you to deduct certain transfers from your gross estate when calculating your tentative tax base Funeral expenses, probate and administration expenses, and liabilities payable at your death may be deducted Additionally, amounts transferred to a surviving spouse or amounts transferred to charity serve to reduce your tentative tax base, thus reducing your estate taxes Current Estate Tax & Settlement Costs Raymond Bridget Dies in 2010 Dies in 2010 Current gross estate $2,899,420 $3,343,532 Settlement costs Funeral and final expenses $15,000 $15,000 Probate expenses $199,667 $150,375 Administration expenses $144,971 $167,177 Liabilities payable at death $700,000 $0 Adjusted gross estate $1,839,782 $3,010,980 Allowable tax-free transfers Transfers to surviving spouse (marital deduction) $1,839,782 N/A Transfers to charities (charitable deduction) $0 $0 State estate tax deduction $0 $182,966 Taxable Estate * $0 $2,828,014 Adjustments Adjusted taxable gifts $0 $0 Gift tax paid within three years of death $0 $0 Life insurance policies transferred within three years of death $0 $0 Tentative tax base $0 $2,828,014 Federal estate tax Federal estate tax law applied Sunset Sunset Tentative federal estate tax (before credits) $0 $0 Federal estate tax credits Credit for previously paid gift tax $0 $0 Applicable federal estate tax credit $0 $0 Federal estate tax amount $0 $0 Federal generation-skipping transfer tax amount $0 $0 State estate tax State estate tax law applied State Freeze State Freeze State freeze year State estate tax amount $0 $182,966 Total settlement costs (including estate & GST taxes) $1,059,638 $515,518 * Includes federal generation-skipping transfer tax payable due to bequests to skip persons at death Assumptions Data in the table above assume that Raymond dies first Raymond Bridget Probate expenses (as a percent of the probate estate) 1000% 1000% Administration expenses (as a percent of the gross estate) 500% 500% Other assumptions apply See the Data and Assumptions pages (if included) for a complete list 62 of 127 Raymond James Financial Services, Inc

63 Mr Raymond and Mrs Bridget James FYI Settlement Costs include funeral expenses, probate expenses, administration expenses, and liabilities paid at death Current Estate Distribution This chart illustrates estimated estate distributions when Raymond dies in 2010 Distribution Amount Settlement Costs $1,059,638 Estate Taxes $0 Survivor $1,839,782 Credit Shelter Trust $0 Beneficiaries $0 Estate Taxes include both federal and state estate taxes Federal estate taxes are calculated based on marginal tax rates established by the federal government, and are applied based on the option chosen for Federal estate tax law applied This chart illustrates estimated estate distributions when Bridget dies in 2010 Distribution Amount Settlement Costs $332,552 Estate Taxes $182,966 Beneficiaries (From Estate) $2,828,014 Total Amount to Beneficiaries* $2,828,014 Liability balances (if any) remaining at the last death are paid prior to payment of other settlement costs, taxes, or distributions to beneficiaries * Total Amount to Beneficiaries include transfers passing from the estate(s) and amounts passing outside the estate through trusts and other estate-planning tools Assumptions Data in the charts above assume that Raymond dies first Raymond Bridget Probate expenses (as a percent of the probate estate) 1000% 1000% Administration expenses (as a percent of the gross estate) 500% 500% Federal estate tax law applied Sunset Sunset Other assumptions apply See the Data and Assumptions pages (if included) for a complete list 63 of 127 Raymond James Financial Services, Inc

64 Mr Raymond and Mrs Bridget James Projected Estate Growth Chart This chart illustrates the projected growth of your estate For purposes of this illustration, Raymond dies in 2033 at age 85 Bridget dies thereafter in 2037 at age 85 Raymond's individually owned assets Bridget's individually owned assets Jointly owned assets Community/TIC assets Life insurance in estate Assumptions Data in the tables above assume that Raymond dies first After Raymond's death, Bridget's assets are assumed to grow at the following rates: Annual percent adjustment to value of estate (+/-): 000% Annual dollar adjustment to value of estate (+/-): $0 Index dollar amount with inflation? No At Raymond's death, any remaining joint liabilities are transferred to Bridget Balances remaining at Bridget's death are paid prior to any other distributions Raymond's residual estate (the remainder after all other transfers are made) is transferred to Bridget at Raymond's death Life insurance in estate includes policies where the decedent is the owner or beneficiary of the policy Other assumptions apply See the Data and Assumptions pages (if included) for a complete list 64 of 127 Raymond James Financial Services, Inc

65 Comprehensive Financial Plan Mr Raymond and Mrs Bridget James Projected Estate Growth Table This table illustrates the projected growth of your estate For purposes of this illustration, Raymond dies in 2033 at age 85 Bridget dies thereafter in 2037 at age 85 Year Raymond's Assets Bridget's Assets Joint Assets Community TIC Assets Life Insurance in Estate 2010 $2,895,670 $1,500,000 $7,500 $0 $ $3,071,111 $1,560,000 $7,500 $0 $ $3,371,712 $1,622,400 $7,500 $0 $ $3,575,692 $1,687,296 $7,500 $0 $ $3,606,577 $1,737,915 $7,292 $0 $ $3,615,320 $1,790,052 $6,979 $0 $ $3,633,372 $1,843,754 $6,684 $0 $ $3,650,990 $1,899,067 $6,368 $0 $ $3,683,478 $1,956,039 $6,090 $0 $ $3,701,242 $2,014,720 $5,953 $0 $ $3,716,406 $2,075,161 $5,808 $0 $ $3,444,542 $2,137,416 $4,524 $0 $ $3,409,271 $2,201,539 $4,186 $0 $ $3,332,510 $2,267,585 $3,688 $0 $ $3,242,825 $2,335,612 $3,146 $0 $ $3,178,810 $2,405,681 $2,713 $0 $ $3,104,429 $2,477,851 $2,247 $0 $ $3,064,197 $2,552,187 $1,928 $0 $ $3,017,381 $2,628,752 $1,593 $0 $ $2,963,474 $2,707,615 $1,241 $0 $ $2,901,938 $2,788,843 $872 $0 $ $2,832,198 $2,872,508 $485 $0 $ $2,753,648 $2,958,684 $80 $0 $ $2,634,916 $3,047,444 $0 $0 $ $0 $4,540,101 $0 $0 $ $0 $4,540,101 $0 $0 $ $0 $4,540,101 $0 $0 $ $0 $4,540,101 $0 $0 $0 Assumptions Data in the tables above assume that Raymond dies first After Raymond's death, Bridget's assets are assumed to grow at the following rates: Annual percent adjustment to value of estate (+/-): 000% Annual dollar adjustment to value of estate (+/-): $0 Index dollar amount with inflation? No At Raymond's death, any remaining joint liabilities are transferred to Bridget Balances remaining at Bridget's death are paid prior to any other distributions Raymond's residual estate (the remainder after all other transfers are made) is transferred to Bridget at Raymond's death Life insurance in estate includes policies where the decedent is the owner or beneficiary of the policy Other assumptions apply See the Data and Assumptions pages (if included) for a complete list 65 of 127 Raymond James Financial Services, Inc

66 Mr Raymond and Mrs Bridget James Projected Estate Flowchart This flowchart illustrates estate distributions according to your existing estate plan, assuming Raymond dies in 2033 at age 85 and Bridget dies thereafter in 2037 at age 85 Asset Values in 2010 Raymond's Assets $2,895,670 Bridget's Assets $1,500,000 Joint Assets $7,500 Community/TC $0 F i r s t Raymond's Gross Estate $2,634,916 Settlement Costs* $299,265 D e a t h To Survivor $1,492,656 CST $842,995 To Beneficiaries $0 To Charities $0 S e c o n d D e a t h Bridget's Gross Estate $4,540,101 Settlement Costs* $2,114,398 To Beneficiaries $2,425,702 To Charities $0 Legend Transfers of Assets Transfers of Income T o t a l s Settlement Costs* $2,413,664 To Beneficiaries $3,268,697 To Charities $0 1 Settlement Costs include funeral, probate, and administration costs, liabilities paid at death, and estate and generation-skipping transfer taxes See the Estate Tax & Settlement Costs page for details 2 Amounts to Beneficiaries include all beneficiaries that are not charities, including those subject to generation-skipping transfer tax 66 of 127 Raymond James Financial Services, Inc

67 Mr Raymond and Mrs Bridget James FYI This page shows estimated estate values, based on your existing estate plan and an assumed age at death Remember, these values are based on assumptions that may change If unforeseen events occur or if you modify your spending patterns, saving patterns, or rates of return, your actual results may be dramatically different than the numbers reflected in this analysis The value of one's estate can increase significantly in a short time period Assuming an eight percent annual growth rate (including contributions and investment returns), an estate can double in value in only nine years Raymond's Projected Gross Estate Values at Raymond's death in 2033 at age 85: Individually owned assets $2,634,916 50% of joint assets $0 50% of community/tenancy in common assets $0 Life insurance included in estate $0 Projected gross estate $2,634,916 Bridget's Projected Gross Estate Value of Bridget's estate after Raymond's estate is distributed: Individually owned assets $3,047,444 50% of joint assets $0 50% of community/tenancy in common assets $0 Assets received from Raymond's estate $1,492,656 Life insurance proceeds paid to Bridget at Raymond's death $0 Total $4,540,101 Values at Bridget's death in 2037 at age 85: Individually owned assets $4,540,101 Life insurance proceeds paid to Bridget's estate $0 Remainder value of future cash flows* $0 Projected gross estate $4,540,101 * Includes remainder value at second death of Defined Benefit Plans, Annuities, Notes, and Deferred Compensation See the Data and Assumptions page for growth and other assumptions Assumptions Data in the tables above assume that Raymond dies first After Raymond's death, Bridget's assets are assumed to grow at the following rates: Annual percent adjustment to value of estate (+/-): 000% Annual dollar adjustment to value of estate (+/-): $0 Index dollar amount with inflation? No 67 of 127 Raymond James Financial Services, Inc

68 Mr Raymond and Mrs Bridget James FYI The table to the right shows estimated settlement costs and estate taxes based on an assumed age at death Be aware that the federal estate tax laws are subject to change at any time by the US Congress, and any such changes may cause the projections in this report to be different from your actual situation at death Please consult your tax and legal advisors regarding these estimates A properly drafted and executed estate plan may help you reduce your estate taxes and fees, and allow you to leave a larger legacy to your chosen beneficiaries You should review your estate plan often to make certain that it correctly reflects your desires and the current legal environment Projected Estate Tax & Settlement Costs Raymond Bridget Dies in 2033 Dies in 2037 Projected gross estate $2,634,916 $4,540,101 Settlement costs Funeral and final expenses $30,916 $35,303 Probate expenses $111,740 $454,010 Administration expenses $131,746 $227,005 Liabilities payable at death $0 $0 Adjusted gross estate $2,360,515 $3,823,782 Allowable tax-free transfers Transfers to surviving spouse (marital deduction) $1,492,656 N/A Transfers to charities (charitable deduction) $0 $0 Taxable Estate * $842,995 $3,823,782 Adjustments Adjusted taxable gifts $0 $0 Gift tax paid within three years of death $0 $0 Life insurance policies transferred within three years of death $0 $0 Tentative tax base $842,995 $3,823,782 Federal estate tax Federal estate tax law applied Sunset Sunset Tentative federal estate tax (before credits) $284,568 $1,743,880 Federal estate tax credits Credit for previously paid gift tax $0 $0 Applicable federal estate tax credit $345,800 $345,800 State estate tax credit $24,864 $262,073 Federal estate tax amount $0 $1,136,007 Federal generation-skipping transfer tax amount $0 $0 State estate tax State estate tax law applied State Freeze State Freeze State freeze year State estate tax amount $24,864 $262,073 Total settlement costs (including estate & GST taxes) $299,265 $2,114,398 * Includes federal generation-skipping transfer tax payable due to bequests to skip persons at death Assumptions Data in the table above assume that Raymond dies first Raymond Bridget Probate expenses (as a percent of the probate estate) 1000% 1000% Administration expenses (as a percent of the gross estate) 500% 500% Other assumptions apply See the Data and Assumptions pages (if included) for a complete list 68 of 127 Raymond James Financial Services, Inc

69 Mr Raymond and Mrs Bridget James FYI Settlement Costs include funeral expenses, probate expenses, administration expenses, and liabilities paid at death Projected Estate Distribution This chart illustrates estimated estate distributions when Raymond dies in 2033 Distribution Amount Settlement Costs $274,402 Estate Taxes $24,864 Survivor $1,492,656 Credit Shelter Trust $842,995 Beneficiaries $0 Estate Taxes include both federal and state estate taxes Federal estate taxes are calculated based on marginal tax rates established by the federal government, and are applied based on the option chosen for Federal estate tax law applied This chart illustrates estimated estate distributions when Bridget dies in 2037 Distribution Amount Settlement Costs $716,318 Estate Taxes $1,398,080 Beneficiaries (From Estate) $2,425,702 Beneficiaries (From Outside Estate) $842,995 Total Amount to Beneficiaries* $3,268,697 Liability balances (if any) remaining at the last death are paid prior to payment of other settlement costs, taxes, or distributions to beneficiaries * Total Amount to Beneficiaries include transfers passing from the estate(s) and amounts passing outside the estate through trusts and other estate-planning tools Assumptions Data in the charts above assume that Raymond dies first Raymond Bridget Probate expenses (as a percent of the probate estate) 1000% 1000% Administration expenses (as a percent of the gross estate) 500% 500% Federal estate tax law applied Sunset Sunset Other assumptions apply See the Data and Assumptions pages (if included) for a complete list 69 of 127 Raymond James Financial Services, Inc

70 Mr Raymond and Mrs Bridget James Appendix 70 of 127 Raymond James Financial Services, Inc

71 Mr Raymond and Mrs Bridget James Notes For Settlement Costs Four kinds of expenses can affect settlement costs Funeral and Final Expenses The IRS allows a deduction for expenses incurred for the decedent's funeral While there are some limitations to the amount deductible, the basic rule is such expenses are deductible if actually paid by the estate before the due date of the estate tax return Please consult your tax and legal advisors for further information regarding deductibility of funeral expenses Probate Expenses There are usually expenses associated with probating a will and moving assets through the probate process Some assets - such as those that pass to another by contract, deed or trust - bypass probate For example, life insurance, annuities, and pension plans typically pass to a chosen beneficiary outside the will In some states, attorneys charge a percentage of the probate estate for handling the probate process Administrative Expenses In addition to probate expenses, administrative expenses may be incurred for the handling of the entire estate These expenses are deducted from the decedent's gross estate to determine his or her taxable estate The extent to which administrative expenses are deductible depends on their treatment under state law Liabilities Payable at Death The IRS also allows a deduction for valid debts the decedent owed at the time of death The rules associated with deductibility of debts are quite complex Given the interplay between deductibility of debts under federal estate tax law and federal income tax law, you should consult your tax and legal advisors to determine the deductibility of any debt 71 of 127 Raymond James Financial Services, Inc

72 Mr Raymond and Mrs Bridget James Wills A will is a document that allows you to direct the transfer of probate assets after your death, designate a personal representative, and nominate a guardian for your minor children A will should be an integral part of your estate plan for a variety of reasons If you have minor children or incapacitated dependents, the only way you may nominate a guardian for them is through a will In addition, even though you may be planning to avoid probate through the use of trusts, you may still need a will It is not always possible, or appropriate, to title all property in a revocable trust Your will governs the disposition of probatable assets not held in your revocable trust Some important elements of a will include: Naming a personal representative or executor Nominating a guardian for your minor children or incapacitated dependents Naming a presumed survivor Personal Representative (Executor): Your personal representative is legally responsible to guide your estate through probate This can be an individual or corporation Your personal representative will file for probate; take inventory of your assets; decide which assets should be sold to pay liabilities and claims against the estate; and file income, estate, and inheritance tax returns When choosing a personal representative, look for a person or institution with the following characteristics: A commitment to follow your directions A sensitivity to your beneficiaries A sense of integrity and availability Some individuals choose to have corporate executors appointed to reduce the stress on family members and to promote more timely and accurate handling of the many complex duties required of an executor Guardian: The guardian you nominate for your minor children or incapacitated dependents should be able to provide a loving and supportive atmosphere You should review your choice of a guardian as your needs and perceptions change In the event your chosen guardian becomes unable to serve, you should name a successor guardian in the will The person you nominate should possess the following characteristics: A willingness and ability to care for your dependents A compatibility with your beliefs and philosophies A compatibility with your dependents In addition, you need to decide who will manage any assets left to your children Remember, you may choose one person or entity to act as a guardian for the person and another to act as the guardian of the person's estate Presumed Survivor: If you are married, your will should name a survivor If you and your spouse were to die simultaneously, the presumed survivor clause would answer the question of who (you or your spouse) is deemed to survive the other This in turn determines the disposition of your and your spouse's probate property 72 of 127 Raymond James Financial Services, Inc

73 Mr Raymond and Mrs Bridget James Wills continued Trustee: Rather than leaving assets directly to beneficiaries, you may wish to leave them in a trust You might do this for a variety of reasons, including: Your beneficiaries may still be minors You may fear that sudden wealth may cause problems for young adults Your beneficiaries may lack financial management skills You may have a desire to provide some creditor protection for beneficiaries Trusts can be drafted to accomplish very specific goals and address concerns you may have Consult with an estate planning attorney as to the trust types and conditions that may be appropriate for your situation Trustees can be individuals or institutions such as corporate trust departments When considering a trustee, the following characteristics should be sought: An understanding of trust legal requirements A willingness and ability to accept long-term responsibility and potential liability Financial acumen A willingness to comply with the duty to follow trust documents even when beneficiaries do not like the terms of the trust and/or have competing interests The position of trustee can be a difficult one when there are complex issues or when beneficiaries have competing interests Because of possible family conflicts, some individuals choose corporate trustees over family members Others have family members willing and able to act as a trustee 73 of 127 Raymond James Financial Services, Inc

74 Mr Raymond and Mrs Bridget James Use a Credit Shelter Trust Credit shelter trusts (CSTs) are legal devices used by married persons to fully use a federal estate tax credit at the first spouse's death, and thereby reduce the taxable estate and associated federal estate taxes at the second spouse's death Federal estate tax law allows every US citizen a federal estate tax credit that eliminates estate taxes owed on estates less than a specified amount (the 'exemption equivalent') This amount is scheduled to change as illustrated: Top Estate Year Exemption Equivalent Tax Rate 2007 $2,000,000 45% 2008 $2,000,000 45% 2009 $3,500,000 45% 2010 Repealed N/A 2011** $1,000,000 55% **Sunset provision in effect The steps to create and use a CST are as follows: The grantor creates the will or revocable living trust requiring the formation and funding of the CST At the grantor's death, the assets are transferred to the CST Often, these asset transfers equal the exemption equivalent for the year of death The trustee may pay income from CST assets to the surviving spouse for life, and may also distribute trust principal for health, maintenance, education, and support (according to the trust terms) At the death of the surviving spouse, CST assets are not included in his/her estate The trustee then distributes the remaining trust assets to the residual beneficiaries Advantages of Credit Shelter Trusts The grantor removes CST assets from taxation in the surviving spouse's estate If the grantor appoints a professional trustee, he/she provides expert asset management to the surviving spouse The grantor's spouse may receive the trust income and limited access to principal for life The grantor's children may receive distributions of income and principal, based on the trust terms Some Cautions About Credit Shelter Trusts CSTs are complex legal devices and subject to change as federal estate tax laws change Consult your estate attorney regularly to make certain CST provisions are appropriate based on current law CSTs are effective only when funded, and some assets may not be available to fund a CST Assets held jointly and assets that pass by contract (retirement plans and life insurance proceeds) may not be readily available to fund the CST without additional work If the grantor's spouse serves as the trustee, and the trustee's powers under the trust are overly broad, the IRS may attempt to include the trust assets in the estate of the grantor's spouse Adverse income tax consequences can occur if a CST is the beneficiary of a qualified plan Consult your estate attorney prior to naming a CST as beneficiary of qualified plan benefits 74 of 127 Raymond James Financial Services, Inc