Social Security Analysis And Recommendation. Prepared for:

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1 Social Security Analysis And Recommendation Prepared for:

2 Social Security Analysis Summary John s Social Security Benefits Based on statement dated June 2012 At age 62: $1,660 per month At full retirement age (66 years): $2,256 per month At age 70: $3,032 per month Jane s Social Security Benefits Based on statement dated July 2010 At age 62: $664 per month At full retirement age (66 years): $971 per month At age 70: $1,392 per month Social Security Maximization Strategy: John files and suspends benefits based on his earnings record in October 2019 at age 68 and 1 mos, which makes Jane eligible for spousal benefits at age 66. Jane files a restricted application for spousal benefits only in October 2019 at age 66. John begins benefits based on his earnings record in September 2021 at age 70. Jane switches to benefits based on her earnings record in October 2023 at age 70. In September 2040 Jane switches to survivor benefits. Early Strategy: John begins benefits based on his earnings record in October 2013 at age 62 and 1 mos. Jane files for benefits in November 2015 at age 62 and 1 mos. In September 2040 Jane begins survivor benefits. Full Retirement Age Strategy: John begins benefits based on his earnings record in September 2017 at age 66. Jane files for benefits in October 2019 at age 66. In September 2040 Jane begins survivor benefits. Take Benefits at age 65: John begins benefits based on his earnings record in September 2016 at age 65. Jane files for benefits in October 2018 at age 65. In September 2040 Jane begins survivor benefits. The Social Security Analysis uses a cost of living adjustment (COLA) of 2% and a discount rate of 3%. The life expectancy for John is age 89 and for Jane is age 94. The analysis assumes that 85% of the Social Security benefits are taxable at a tax rate of 20%.

3 Analysis completed by Ryan Monette at Savant Capital Management 2 Executive Summary For most Americans, Social Security is a significant retirement asset. Making the best possible selections related to your Social Security options can mean a material difference in the income it provides to you over the course of your retirement years. Our firm uses software created by the industry leader in Social Security claiming strategies. The purpose of this Social Security Strategy Snapshot Report is to: Offer a high-level introduction to and education about your Social Security retirement benefit options. Help you determine when to begin benefits. As you review your Social Security Report, please keep in mind that: 1. This report is designed to illustrate the importance of your decision on when to begin Social Security benefits and to help you decide the best strategy for your situation. Detailed analysis is needed to compare different strategies side by side, especially if you are married and spousal benefits are considered. 2. This report is provided for informational purposes only. The information and data should not be acted upon or taken as advice. The purpose of the report is to educate and give general guidance to help you craft a personalized approach in taking Social Security. 3. All the information provided is based on current Social Security rules, benefits calculations, and payout promises on existing funding levels. The "recommended" or "primary" strategy illustrated in this analysis shows the scenario that achieves the highest cumulative Social Security benefits based on your life expectancy. This "recommended" strategy is an illustration and may not be the best scenario depending on your actual circumstances. Some of the information given in this presentation has been produced by unaffiliated third parties and, while it is deemed reliable, Savant does not guarantee its timeliness, sequence, accuracy, adequacy, or completeness. Savant Capital Management is a Registered Investment Advisor. This report has been prepared using information provided by you and is intended for informational/illustrative purposes only. It should not be construed as investment or tax advice, but should be used as a basis for discussion with your accounting, investment, and/or tax professionals.

4 Analysis completed by Ryan Monette at Savant Capital Management 3 Key Terms You may find some of these key terms throughout your report. Children's (or Family) Benefits: Benefits received by dependent children that supplement family income. Cumulative Benefits: Lifetime payout of Social Security benefits. Delayed Retirement Credits: Increases in monthly Social Security benefits if you delay taking benefits. Delayed Strategy: Claiming benefits after Full Retirement Age (FRA) in order to receive increased benefits. Divorced Benefits: Benefits paid to the divorced spouse of an eligible worker to whom you were married at least 10 years. Early Strategy: Claiming benefits at any time before Full Retirement Age (FRA). Earnings Record: The history of your earnings for the years you have worked in your lifetime. Earnings Test: The reduction in benefits taken if you continue to work while receiving benefits before you reach Full Retirement Age (FRA). Once you reach FRA, the earnings test does not apply to your income, and there is no limit on your earnings. Full Retirement Age: The age at which you are eligible for your full monthly benefit. Inflation: A decrease in the value and purchasing power of money. Longevity Risk: The risk of running out of resources in your lifetime. Monthly Benefit Amount: Also known as your Primary Insurance Amount (PIA), this is the benefit you will receive at your Full Retirement Age (FRA). Spousal Benefits: Benefits paid to the spouse of an eligible worker. You must be at least age 62 to claim spousal benefits. Survivor Benefits: Benefits paid to the surviving spouse of a deceased eligible worker.

5 Analysis completed by Ryan Monette at Savant Capital Management 4 Let's Start with the Basics... When you elect to begin receiving Social Security payments is important. You may retire from a career at age 62, but beginning benefits at age 62 may not be the best choice. The age at which you begin will impact your benefits for the rest of your life -- and potentially benefits available to your spouse if you are married. There are several factors that should be considered before selecting the optimal date to begin benefits. Your health status, life expectancy, need for income, whether or not you plan to continue working, and how concerned you are about running out of money in your lifetime should all be considerations in determining your date to begin benefits. In addition, if you are married, other factors that may influence your decision including your spouse's life expectancy, which of you is the higher wage earner, and how concerned you are about the risk of running out of money in your joint lifetimes. The factors and considerations become complex. Analysis requires careful consideration of the inputs, assumptions and other factors that will impact your Social Security benefits including the taxation of those benefits. While having a strategy for when to begin Social Security benefits is important, it is critical to consider Social Security benefits in conjunction with all of your retirement assets for an optimal strategy. Incorporating your benefits into an overall retirement income plan may make a material difference in the amount of income available to you in retirement. How Your Benefit Eligibility is Determined Your benefit eligibility will depend on: How much you earned over your working career The age at which you apply for benefits Spousal benefits - extra money allocated to married couples Survivor benefits - reassessment of benefits to help the surviving spouse Social Security benefits are based on average earnings over your highest 35 years of income, with earnings through age 60 indexed to reflect increases in U.S. workers' average wage level. For example, if the wage level in the U.S. is twice as high when you turn 60 as when you were 40, the formula doubles your age 40 earnings. If you worked less than 35 years, the "missing" years are calculated as zero. The maximum income in any year is equal to that year's maximum income subject to Social Security taxes. If you claim benefits earlier than your Full Retirement Age (FRA) and continue to have more than a modest amount of earned income (e.g., wages and salary), you may lose some or all of your Social Security benefits. In addition, if you had wages from work not covered by Social Security, then the Social Security Administration's estimates of your benefits may be substantially too high.

6 Analysis completed by Ryan Monette at Savant Capital Management 5 How Your Primary Strategy Makes a Difference Your primary strategy for claiming Social Security benefits is customized to your specific situation. To create your primary strategy, our firm analyzed all the possible claiming strategies available to you and the overall benefit each would render. We weighed many factors in recommending this strategy for you, including monthly benefit amount, your life expectancy, your marital status and others. 1,000, ,000 0 Cumulative Total Benefits Age Primary Early FRA We have recommended a claiming strategy that would pay about $1,246,410 over the course of your lifetime. The details of this strategy and why it works are discussed in this report. Your primary strategy was created using the expected lifetimes of 89 for John and 94 for Jane. Given these factors, you need to maximize benefits for a potentially long joint life. Your primary strategy also provides the highest monthly benefit amount to a surviving spouse, reducing the chance of running out of money in his or her lifetime. Lifetime Income By Starting Dates The graph on the right represents the cumulative lifetime benefits you could expect to receive over your life expectancy if you took benefits early (represented by the red bar), at Full Retirement Age (represented by the blue bar), or according to the primary strategy we have created for you (represented by the green bar). Early Dates Primary Dates Full Retirement Dates

7 Analysis completed by Ryan Monette at Savant Capital Management 6 Protection Against Longevity Risk The best strategy for you balances your cumulative lifetime benefits with income protection should you live longer than the ages you provided, 89 years for John and 94 years for Jane. This concept is known as "longevity risk," or the risk that you will run out of money in your lifetime. The reason this is an important part of your Social Security decision is that, the longer your life, the longer your retirement savings must last. Getting more from your Social Security benefits means that you will need to withdraw less from your portfolio over the years, giving your savings time for continued growth. 1,750,000 1,500,000 1,250,000 1,000, , , ,000 0 Early Primary FRA Projected Life Span Long Life Span The green bar in the graph on the left illustrates the cumulative lifetime benefit you could expect to receive should you live to the exact life expectancy you provided. The yellow bar represents the comparative value of the cumulative lifetime benefits should you live 10 years longer than expected. The Difference a Long Life Makes The table below shows the approximate value of your lifetime cumulative benefits over your life expectancy if you choose to take benefits early, at Full Retirement Age or according to our primary strategy. The Short Life Span row illustrates the amount if each of you lives 10 years less than you plan. The Normal Life Span row illustrates the amount if each of you live to the exact age you provided. The Long Life Span row is the amount you could expect if each of you lives 10 years longer than expected. Early Age Primary Age Full Retirement Age Short Life Span $653,586 $735,259 $691,464 Projected Life Span $958,878 $1,246,411 $1,097,544 Long Life Span $1,264,170 $1,757,563 $1,503,624

8 Analysis completed by Ryan Monette at Savant Capital Management 7 Important Filing Dates In order for you to take advantage of our primary strategy and maximize your benefits, you should pay close attention to these filing dates: John files and suspends benefits based on his earnings record in October 2019 at age 68 and 1 mos, which makes Jane eligible for spousal benefits at age 66. Jane files a restricted application for spousal benefits only in October 2019 at age 66. John begins benefits based on his earnings record in September 2021 at age 70. Jane switches to benefits based on her earnings record in October 2023 at age 70. In September 2040 Jane switches to survivor benefits. Be sure to file for benefits about three months before you expect to receive your first payment. Annual Benefits You Can Expect by Age with Primary Strategy The graph below illustrates the annual total income you would receive by using our primary strategy. Annual Benefits 50,000 40,000 30,000 20,000 10, Expenses and Your Annual Benefits Coverage Gap You've estimated your annual after-tax expenses to be approximately $40,000. Your monthly benefit of $4,260 will cover about 128% of your expenses. Annual Benefits

9 Analysis completed by Ryan Monette at Savant Capital Management 8 Your Primary Social Security Strategy Details We've constructed this primary strategy based on the information you provided. Your primary strategy was created to balance two equally important yet separate goals: get the most lifetime income and offer income protection if you live longer than expected. While getting the highest cumulative lifetime benefit may initially seem most important, taking both criteria into account is prudent in the event you live longer than expected. Our tools allow you to compare your primary strategy against other strategies to ensure that the primary strategy is best for your situation. John files and suspends benefits based on his earnings record in October 2019 at age 68 and 1 mos, which makes Jane eligible for spousal benefits at age 66. Jane files a restricted application for spousal benefits only in October 2019 at age 66. John begins benefits based on his earnings record in September 2021 at age 70. Jane switches to benefits based on her earnings record in October 2023 at age 70. In September 2040 Jane switches to survivor benefits. Here's why your Primary Strategy was selected: The Primary Solution reflects a specific strategy for claiming your Social Security benefits in line with two goals shared by most retirees: maximizing expected lifetime benefits and minimizing longevity risk. It also has incorporated any complicated strategies around spousal benefits that will result in more money for you. Our Primary Solution is based on your life expectancy inputs and is the strategy that will likely provide the greatest cumulative lifetime benefit. However, because you are married, you should also consider survivor benefits in your claiming strategy. A surviving spouse can receive the larger of the two benefit amounts, but not both. If at least the higher earner waits to begin benefits on his or her earnings record until age 70, survivor income will be greatest. But if you live a short life, waiting may increase survivor benefits, but it may not provide the greatest cumulative lifetime payout over your joint lifetimes. You should carefully consider these factors as you determine your best starting age. Furthermore, because waiting to claim benefits increases your benefit with delayed retirement credits, it decreases the amount of money that must be withdrawn from savings each month and reduces the chance that a surviving spouse will run out of money in his or her lifetime. If your Primary Solution states that one of you should "file and suspend" or "file a restricted application," be certain that you are clear about this to the agent taking your application. It is not uncommon for an agent to be unfamiliar with a claiming strategy. If the agent is hesitant, ask to speak with a "technical expert" or an office manager.

10 Analysis completed by Ryan Monette at Savant Capital Management 9 Here's when it might not work: Your primary solution may not be your best choice if either of you live significantly longer or shorter than projected, or if you continue to work and are younger than Full Retirement Age. If you continue to work and are younger than Full Retirement Age: Social Security benefits based on your earnings record (including your spouse's spousal benefits) will be subject to an earnings test, which could reduce those benefits. The earnings test does not apply after you reach Full Retirement Age. If the earnings test will result in the loss of most or all of these benefits, you should consider waiting until Full Retirement Age (or until you stop working, whichever is sooner) to file for benefits. *This primary strategy assumes you do not have a child(ren) who could receive Social Security benefits based on your earnings records and neither spouse will receive a pension from work not covered by Social Security. If these assumptions do not apply to you, the primary strategy may not be your best strategy for claiming Social Security benefits.

11 Analysis completed by Ryan Monette at Savant Capital Management 10 Schedule 1 Breakeven Analysis comparing two strategies: John Doe Jane Doe John Doe Jane Doe (PIA=2256.0) (PIA=971.0) Early Annual Benefits Cumulative Benefits John Doe Jane Doe (PIA=2256.0) (PIA=971.0) Primary Annual Benefits Cumulative Benefits Difference $1,701 $0 $5,104 $5,104 $0 $0 $0 $0 ($5,104) $1,701 $0 $20,417 $25,521 $0 $0 $0 $0 ($25,521) $1,701 $843 $22,102 $47,623 $0 $0 $0 $0 ($47,623) $1,701 $843 $30,529 $78,152 $0 $0 $0 $0 ($78,152) $1,701 $843 $30,529 $108,682 $0 $0 $0 $0 ($108,682) $1,701 $843 $30,529 $139,211 $0 $0 $0 $0 ($139,211) $1,701 $843 $30,529 $169,740 $0 $1,128 $3,384 $3,384 ($166,356) $1,701 $843 $30,529 $200,269 $0 $1,128 $13,536 $16,920 ($183,349) $1,701 $843 $30,529 $230,798 $2,978 $1,128 $25,448 $42,368 ($188,430) $1,701 $843 $30,529 $261,328 $2,978 $1,128 $49,271 $91,638 ($169,690) $1,701 $843 $30,529 $291,857 $2,978 $1,282 $49,732 $141,370 ($150,487) $1,701 $843 $30,529 $322,386 $2,978 $1,282 $51,115 $192,485 ($129,901) $1,701 $843 $30,529 $352,915 $2,978 $1,282 $51,115 $243,600 ($109,315) $1,701 $843 $30,529 $383,444 $2,978 $1,282 $51,115 $294,716 ($88,728) $1,701 $843 $30,529 $413,973 $2,978 $1,282 $51,115 $345,831 ($68,142) $1,701 $843 $30,529 $444,503 $2,978 $1,282 $51,115 $396,946 ($47,557) $1,701 $843 $30,529 $475,032 $2,978 $1,282 $51,115 $448,061 ($26,971) $1,701 $843 $30,529 $505,561 $2,978 $1,282 $51,115 $499,176 ($6,385) Break Even Point $1,701 $843 $30,529 $536,090 $2,978 $1,282 $51,115 $550,291 $14, $1,701 $843 $30,529 $566,619 $2,978 $1,282 $51,115 $601,407 $34, $1,701 $843 $30,529 $597,148 $2,978 $1,282 $51,115 $652,522 $55, $1,701 $843 $30,529 $627,677 $2,978 $1,282 $51,115 $703,637 $75, $1,701 $843 $30,529 $658,207 $2,978 $1,282 $51,115 $754,752 $96, $1,701 $843 $30,529 $688,736 $2,978 $1,282 $51,115 $805,867 $117, $1,701 $843 $30,529 $719,265 $2,978 $1,282 $51,115 $856,982 $137, $1,701 $843 $30,529 $749,794 $2,978 $1,282 $51,115 $908,098 $158, $1,701 $843 $30,529 $780,323 $2,978 $1,282 $51,115 $959,213 $178, $1,701 $1,861 $27,798 $808,121 $2,978 $2,978 $45,988 $1,005,201 $197, $0 $1,861 $22,334 $830,455 $0 $2,978 $35,735 $1,040,936 $210, $0 $1,861 $22,334 $852,790 $0 $2,978 $35,735 $1,076,671 $223, $0 $1,861 $22,334 $875,124 $0 $2,978 $35,735 $1,112,406 $237, $0 $1,861 $22,334 $897,458 $0 $2,978 $35,735 $1,148,140 $250, $0 $1,861 $22,334 $919,793 $0 $2,978 $35,735 $1,183,875 $264, $0 $1,861 $22,334 $942,127 $0 $2,978 $35,735 $1,219,610 $277, $0 $1,861 $16,751 $958,878 $0 $2,978 $26,801 $1,246,411 $287,533

12 Analysis completed by Ryan Monette at Savant Capital Management 11 Important Disclosure This report is for informational purposes only. All the information provided is based on Social Security rules, benefit calculations, and payout promises of existing Social Security policy at the time this report was printed. The purpose of the report is to educate and give general guidance to help craft a personalized approach to taking Social Security. The Social Security claiming strategy highlighted in this report was generated based on information you provided. That information included estimates of your and, when applicable, your spouse's Primary Insurance Amount, life expectancy(ies), and date(s) of birth. If this information you provided, including your life expectancy projection(s), should prove wrong after the fact, then the primary strategy may not be the best strategy after the fact. Before selecting this or any other claiming strategy, you should analyze and compare it with other scenarios generated by your financial professional. The optimal strategy for a specific client depends, in part, on that client's tradeoff between the goals of maximizing expected lifetime benefits and minimizing the risk of outliving his or her financial assets. As such, it is ultimately the responsibility of the client to carefully consider the primary strategy before adopting it as his, her or their own. This report should be used only as a general guideline and not as the ultimate source of information about Social Security claiming strategies. This report was created using software developed by Social Security Solutions, Inc. Social Security Solutions, Inc. shall have neither liability nor responsibility to any person or entity with respect to any loss or damage caused, or alleged to be caused, directly or indirectly, by information contained in this report.

13 Age Monthly Benefits Annual Benefits Cumulative Benefits Client Partner Client Partner 68 yrs and 3 mnths 66 yrs and 2 mnths 1,128 3,384 3, yrs and 3 mnths 67 yrs and 2 mnths 1,128 13,536 16, yrs and 3 mnths 68 yrs and 2 mnths 2,978 1,128 25,448 42, yrs and 3 mnths 69 yrs and 2 mnths 2,978 1,128 49,271 91, yrs and 3 mnths 70 yrs and 2 mnths 2,978 1,282 49, , yrs and 3 mnths 71 yrs and 2 mnths 2,978 1,282 51, , yrs and 3 mnths 72 yrs and 2 mnths 2,978 1,282 51, , yrs and 3 mnths 73 yrs and 2 mnths 2,978 1,282 51, , yrs and 3 mnths 74 yrs and 2 mnths 2,978 1,282 51, , yrs and 3 mnths 75 yrs and 2 mnths 2,978 1,282 51, , yrs and 3 mnths 76 yrs and 2 mnths 2,978 1,282 51, , yrs and 3 mnths 77 yrs and 2 mnths 2,978 1,282 51, , yrs and 3 mnths 78 yrs and 2 mnths 2,978 1,282 51, , yrs and 3 mnths 79 yrs and 2 mnths 2,978 1,282 51, , yrs and 3 mnths 80 yrs and 2 mnths 2,978 1,282 51, , yrs and 3 mnths 81 yrs and 2 mnths 2,978 1,282 51, , yrs and 3 mnths 82 yrs and 2 mnths 2,978 1,282 51, , yrs and 3 mnths 83 yrs and 2 mnths 2,978 1,282 51, , yrs and 3 mnths 84 yrs and 2 mnths 2,978 1,282 51, , yrs and 3 mnths 85 yrs and 2 mnths 2,978 1,282 51, , yrs and 3 mnths 86 yrs and 2 mnths 2,978 1,282 51, , yrs and 3 mnths 87 yrs and 2 mnths 2,978 2,978 45,988 1,005, yrs and 3 mnths 88 yrs and 2 mnths 2,978 35,735 1,040, yrs and 3 mnths 89 yrs and 2 mnths 2,978 35,735 1,076, yrs and 3 mnths 90 yrs and 2 mnths 2,978 35,735 1,112, yrs and 3 mnths 91 yrs and 2 mnths 2,978 35,735 1,148, yrs and 3 mnths 92 yrs and 2 mnths 2,978 35,735 1,183, yrs and 3 mnths 93 yrs and 2 mnths 2,978 35,735 1,219, yrs and 3 mnths 94 yrs and 2 mnths 2,978 26,801 1,246,411

14 $2,000,000 Total Benefits $1,800,000 $1,600,000 Take at 65 Primary $1,757,563 $1,440,248 $1,400,000 $1,246,411 $1,200,000 $1,061,565 $1,000,000 $800,000 $600,000 $400,000 $200,000 $ Normal Life Expectancy Long Life Expectancy

15 Cumulatve Benefits Take at age 65 Primary