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

75 Long-Term Care Analysis 75 of 127 Raymond James Financial Services, Inc

76 Mr Raymond and Mrs Bridget James Long-Term Care The purpose of long-term care planning is to help identify the actions you will need to take to ensure that quality care will be provided if a long-term care need arises for you or a dependent Long-term care planning can also help determine the potential financial impact on your retirement situation of such a need Long-term care insurance can provide financial protection against the costs of potential long-term care needs Long-term care is extended assistance with many of the basic activities of daily living Longer life spans are resulting in more of the elderly becoming incapacitated by chronic health conditions About one in five Americans over the age of 65, and almost half of those over age 85, need assistance with everyday activities* Your Long-Term Care When an individual becomes dependent on others to perform the activities of daily living, the resulting financial costs may deplete retirement funds This report analyzes the impact of a long-term care need on your retirement finances It also illustrates the contribution long-term care insurance may make toward funding a long-term care need Benefits of Long-Term Care Regularly reviewing your retirement situation, including plans for a potential long-term care need, will help increase the likelihood that your retirement spending goals will be met Acquiring long-term care insurance may help protect you against the potential costs of a long-term care need * American Council of Life Insurers Long-Term Care Insurance - Protection for Your Future 2001 Page 2 76 of 127 Raymond James Financial Services, Inc

77 Mr Raymond and Mrs Bridget James FYI Activities of daily living include: - Bathing - Dressing - Eating - Toileting - Continence - Transferring Medicaid is a program designed to cover the health care costs of the poor Medicare is a part of the Social Security system that pays for general health care for retired persons It typically only pays for relatively shortrecuperative stays in skilled nursing facilities Understanding Tax Qualified Long-Term Care Insurance Long-term care insurance provides financial benefits for a broad range of medical, personal, and social services for individuals who require assistance due to: The inability to perform two or more of the activities of daily living (ADLs) Cognitive impairment (ie, Alzheimer's disease) Why long-term care insurance? You should consider the following when deciding if long-term care insurance is right for you: About 19% of Americans ages 65 and over, and 55% of those ages 85 and over, experience some degree of chronic impairment** In the year 2020, some 12 million older Americans are expected to need long-term care** People age 65 face at least a 40 percent lifetime risk of entering a nursing home sometime during their lifetime About 10 percent will stay there five years or longer** Who will pay the cost of long-term care? Nationally, the average annual cost of nursing home care is $72,270 for a semi-private room and $79,935 for a private room* The chart below illustrates the major sources of long-term care funding from this study *** Private Health Insurance generally is designed for medical care (doctors, hospitals, etc), not long-term care expenses Out of Pocket/Family funding usually comes from the individual's resources or those of relatives Medicaid Out-of-Pocket Medicare Private Insurance Other Public Other Private 47% - $847 billion 21% - $372 billion 17% - $307 billion 10% - $182 billion 2% - $42 billion 3% - $46 billion * The MetLife Market Survey of Nursing Home and Home Care Costs, 2009 ** America's Health Insurance Plans; A Guide to Long-Term Care Insurance; 2004; page 3 *** Georgetown University, Long-Term Care Financing Project; Fact Sheet: Who Pays for Long-Term Care?; July 2004

78 Mr Raymond and Mrs Bridget James FYI Basic LTC Insurance Components Daily benefit - The maximum amount the policy will pay every day care is received Nationally, nursing home costs average $151 per day Source: Scanlon, William J United States General Accounting Office Long-Term Care Insurance Better Information Critical to Prospective Purchasers September 13th, 2000 Page 2 Waiting period/ Elimination period - How long do you have to wait from the onset of LTC expenses until benefits begin? Benefit period - How long will you receive benefits when needed? Long-Term Care Expenses Raymond Bridget Recipient's current age Recipient's age when LTC expenses begin Number of years LTC expenses last Estimated daily cost of LTC expenses $0 $0 Estimated annual cost of LTC expenses $0 $0 Proposed Long-Term Care Insurance Raymond Bridget Current daily benefit $0 $0 Waiting period (days) 0 0 Length of benefit (years) 7 7 COLA method Simple Simple Estimated annual premium $0 $0 Replace or augment existing insurance Augment Augment Cost of living adjustment/inflation protection method (referred to as COLA in this report) - Compound - daily benefit grows at a specified rate compounded annually (the amount increases each year) Simple - daily benefit grows at a specified rate, a percentage of the original amount, annually (the amount is the same each year) 78 of 127 Raymond James Financial Services, Inc

79 Mr Raymond and Mrs Bridget James FYI Ways to finance your long-term care expenses 1 - Do nothing: This means that you are willing to fund the long-term care costs from your current assets even if that meant liquidating those assets If your assets are not sufficient to cover costs, then other sources of funding would be needed such as calling on family to provide the financing 2 - Qualify for Medicaid: Medicaid was enacted to provide health care services for the impoverished Recent legislation has made it extremely difficult for a person of even modest means to qualify for Medicaid benefits 3 - Obtain Long-Term Care Insurance: This option if you qualify for coverage, may allow you to keep your assets with the insurance providing funding for your long-term care Summary It is expected that you could qualify for long-term care insurance today, but this may not always be the case This analysis illustrates the economic impact of: Raymond requiring long-term care in 0 years (age 80) lasting for 70 years Bridget requiring long-term care in 0 years (age 80) lasting for 70 years Long-Term Care Expense Coverage 000% LTC Insurance 10000% Shortfall Today's Dollars Raymond's long-term care insurance benefits $0 Bridget's long-term care insurance benefits $0 Total long-term care insurance benefits (+) $0 Raymond's long-term care expenses $0 Bridget's long-term care expenses $0 Total long-term care expenses (-) $0 (Shortfall)/Surplus (=) $0 Long-Term Care Insurance may help: - Provide for choice of services - You to maintain your financial independence - You to preserve your personal assets 79 of 127 Raymond James Financial Services, Inc

80 Action Summary 80 of 127 Raymond James Financial Services, Inc

81 Mr Raymond and Mrs Bridget James Recommended Actions The planning alternatives that have been selected for each aspect of this financial plan are as follows: 81 of 127 Raymond James Financial Services, Inc

82 Mr Raymond and Mrs Bridget James Asset Holdings Cash Assets Annual Contribution Description Owner Current Value Contribution Begin Year Checking JTWROS $7,500 $ Money Market Raymond $20,000 $ Investment Assets Annual Contribution Description Owner Current Value Contribution Begin Year 12 month CD Raymond $100,000 $ month CD Raymond $100,000 $ ATT INC Raymond $260,000 $ Cloumbia Strategic Income A Raymond $400,000 $ FORD MOTOR CO CDO Raymond $39,000 $ MERCK Raymond $39,000 $ US BANCORP DEL Raymond $30,670 $ WALGREEN CO Raymond $40,000 $ MICROSOFT CORP Raymond $29,000 $ COCA COLA CO Raymond $108,000 $ PROGRSSENERGY INC Raymond $38,000 $ EXXON Raymond $143,000 $ Large Cap Value Raymond $100,000 $ Retirement Assets Personal Annual Contribution Description Owner Current Value Contribution Begin Year Large Cap Value Raymond $100,000 $ Mid-Cap Growth Raymond $50,000 $ Small Cap Growth Raymond $50,000 $ Domestic Fixed Income Raymond $200,000 $ Money Market Raymond $200,000 $ Large Cap Growth Raymond $100,000 $ International Fixed Raymond $75,000 $ Columbia Strategic Income A Raymond $29,000 $ Money Market Raymond $95,000 $ Bridget $0 $ Business/Real Estate Assets Annual Contribution Description Owner Current Value Contribution Begin Year 40 Acres Raymond $550,000 $ Personal Assets Description Owner Current Value Residence Bridget $1,500, of 127 Raymond James Financial Services, Inc

83 Data and Assumptions 83 of 127 Raymond James Financial Services, Inc

84 Mr Raymond and Mrs Bridget James Personal Information Client Information First name Raymond Bridget Middle name Last name James James Birth date 01/01/ /01/1952 Gender Male Female Marital status Married Married Contact Information Address line 1 Address line 2 City, State, Zip Phone number address Dependent Information First Name Middle Name Last Name Birth Date Gender 84 of 127 Raymond James Financial Services, Inc

85 Mr Raymond and Mrs Bridget James Assumptions General Assumptions Scenario Main Scenario Plan date 08/04/2010 Raymond Bridget Earned income growth rate 300% 300% Desired retirement age Life expectancy Pre-Retirement Post-Retirement General inflation rate 450% 300% Effective income tax rate (state and federal) 2500% 2500% Average capital gains/dividends tax rate 1500% 1500% Discount rate 800% Allocated assets grow at the rate of return from the Present Allocation Allocated assets management fee 000% Post-Retirement Assumptions Rate of Return Order to Liquidate Taxable accounts 600% 1 Tax-free accounts 600% 2 Tax-deferred accounts 600% 3 Percent of non-retired working partner's income available for retirement 10000% Employer Matching Information - Raymond 000% match on Raymond's first 000% of pay 000% match on Raymond's next 000% of pay Employer Matching Information - Bridget 000% match on Bridget's first 000% of pay 000% match on Bridget's next 000% of pay 85 of 127 Raymond James Financial Services, Inc

86 Mr Raymond and Mrs Bridget James Assets Cash Assets Held in Current Exclude From Yield I Description Asset Class Owner Revocable Trust Value Hold Asset Allocation Rate Checking Cash equivalent JTWROS No $7,500 No Yes 225% Money Market Cash equivalent Raymond No $20,000 No Yes 225% Percent Liquidate This Annual Contributions Contributions Contribution Available To Portion To Asset's Available II Description Contribution Begin End Increase Rate Fund Goals Preserve Principal Checking $ % 10000% 000% Whenever needed Money Market $ % 10000% 000% Whenever needed Investment Account - Raymond James Institution: Raymond James Account number: Description: JT Account Current value: $1,326,670 I Symbol Description Asset Class # of shares Owner Current Value Cost Basis Tax Treatment 12 month CD - Not Assigned - 00 Raymond $100,000 $100,000 Taxed 6 month CD - Not Assigned - 00 Raymond $100,000 $1,000,000 Taxed T ATT INC - Not Assigned - 00 Raymond $260,000 $260,000 Taxed COSIX Cloumbia Strategic Income A F PA FORD MOTOR CO CDO - Not Assigned - 00 Raymond $400,000 $420,000 Taxed - Not Assigned - 00 Raymond $39,000 $39,000 Taxed MRK MERCK - Not Assigned - 00 Raymond $39,000 $30,670 Taxed USB US BANCORP DEL - Not Assigned - 00 Raymond $30,670 $30,670 Taxed WAG WALGREEN CO - Not Assigned - 00 Raymond $40,000 $40,000 Taxed MSFT MICROSOFT CORP - Not Assigned - 00 Raymond $29,000 $29,000 Taxed KO COCA COLA CO - Not Assigned - 00 Raymond $108,000 $75,000 Taxed PGN PROGRSSENERGY INC - Not Assigned - 00 Raymond $38,000 $38,000 Taxed XOM EXXON - Not Assigned - 00 Raymond $143,000 $143,000 Taxed Dividend Income Year Growth Yield Yield Reinvest Taxation Annual Contributions II Description Rate Rate Rate Yield Frequency Contribution Begin 12 month CD 000% 000% 250% Yes 2 $ month CD 000% 000% 250% Yes 2 $ ATT INC 800% 175% 000% Yes 2 $ Cloumbia Strategic Income A 000% 000% 525% Yes 2 $ FORD MOTOR CO CDO 000% 790% 215% Yes 2 $ MERCK 855% 175% 000% Yes 2 $ US BANCORP DEL 855% 175% 000% Yes 2 $ WALGREEN CO 855% 175% 000% Yes 2 $ MICROSOFT CORP 855% 175% 000% Yes 2 $ COCA COLA CO 855% 175% 000% Yes 2 $ PROGRSSENERGY INC 855% 775% 000% Yes 2 $ of 127 Raymond James Financial Services, Inc

87 Mr Raymond and Mrs Bridget James EXXON 855% 175% 000% Yes 2 $ Contributions Contribution Held in Percent Available Portion to Liquidate III Description Continue Increase Rate Revocable Trust to Fund Goals Preserve Available Principal 12 month CD % No 10000% 000% Whenever needed 6 month CD % No 10000% 000% Whenever needed ATT INC % No 10000% 000% Whenever needed Cloumbia Strategic Income A % No 10000% 000% Whenever needed FORD MOTOR CO CDO % No 10000% 000% Whenever needed MERCK % No 10000% 000% Whenever needed US BANCORP DEL % No 10000% 000% Whenever needed WALGREEN CO % No 10000% 000% Whenever needed MICROSOFT CORP % No 10000% 000% Whenever needed COCA COLA CO % No 10000% 000% Whenever needed PROGRSSENERGY INC % No 10000% 000% Whenever needed EXXON % No 10000% 000% Whenever needed Investment Account - Sun Life Institution: Sun Life Account number: Description: Nonquaified Annuity Current value: $100,000 I Symbol Description Asset Class # of shares Owner Current Value Cost Basis Tax Treatment Large Cap Value - Not Assigned - 00 Raymond $100,000 $100,000 Taxed Dividend Income Year Growth Yield Yield Reinvest Taxation Annual Contributions II Description Rate Rate Rate Yield Frequency Contribution Begin Large Cap Value 705% 250% 000% Yes 2 $ Contributions Contribution Held in Percent Available Portion to Liquidate III Description Continue Increase Rate Revocable Trust to Fund Goals Preserve Available Principal Large Cap Value % No 10000% 000% Whenever needed Retirement Account - Employer 401K Institution: Employer 401K Account number: Employer 401K Description: 401K Current value: $775,000 I Symbol Description Asset Class # of shares Type Owner Current Value Cost Basis Large Cap Value - Not Assigned (k) Raymond $100,000 $0 Mid-Cap Growth - Not Assigned (k) Raymond $50,000 $0 Small Cap Growth - Not Assigned (k) Raymond $50,000 $0 Domestic Fixed Income - Not Assigned (k) Raymond $200,000 $0 Money Market - Not Assigned (k) Raymond $200,000 $0 Large Cap Growth - Not Assigned (k) Raymond $100,000 $0 International Fixed - Not Assigned (k) Raymond $75,000 $0 - Not Assigned (k) Bridget $0 $0 87 of 127 Raymond James Financial Services, Inc

88 Mr Raymond and Mrs Bridget James II Description Tax Treatment Rate of Return Personal Annual Contribution Employer Match Large Cap Value Deferred (Pre-Tax) 955% $0 No Mid-Cap Growth Deferred (Pre-Tax) 1055% $0 No Small Cap Growth Deferred (Pre-Tax) 1150% $0 No Domestic Fixed Income Deferred (Pre-Tax) 525% $0 No Money Market Deferred (Pre-Tax) 250% $0 No Large Cap Growth Deferred (Pre-Tax) 1030% $0 No International Fixed Deferred (Pre-Tax) 600% $0 No Deferred (Pre-Tax) 000% $0 No Employer-Only Annual Year Contributions Contributions Contribution Increase III Description Contribution Begin Continue Rate Large Cap Value $ % Mid-Cap Growth $ % Small Cap Growth $ % Domestic Fixed Income $ % Money Market $ % Large Cap Growth $ % International Fixed $ % $ % Retirement Account - Raymond James Institution: Raymond James Account number: Description: IRA Current value: $124,000 I Symbol Description Asset Class # of shares Type Owner Current Value Cost Basis COSIX Columbia Strategic Income A - Not Assigned (k) Raymond $29,000 $0 Money Market - Not Assigned (k) Raymond $95,000 $0 II Description Tax Treatment Rate of Return Personal Annual Contribution Employer Match Columbia Strategic Income A Deferred (Pre-Tax) 250% $0 No Money Market Deferred (Pre-Tax) 250% $0 No Employer-Only Annual Year Contributions Contributions Contribution Increase III Description Contribution Begin Continue Rate Columbia Strategic Income A $ % Money Market $ % Business/Real Estate Assets Held In Growth I Description Asset Class Type Owner Revocable Trust Current Value Cost Basis Rate 40 Acres - Not Assigned - Other Raymond No $550,000 $575, % 88 of 127 Raymond James Financial Services, Inc

89 Mr Raymond and Mrs Bridget James Year Number of Years Contribution Percent Liquidate Annual Contributions Contributions Increase Available Portion Available II Description Contribution Begin Continue Rate To Fund Goals To Preserve Principal 40 Acres $ % 000% 000% Whenever needed Personal Assets Held in Current Growth Percent Available Liquidate Description Asset Class Type Owner Revocable Trust Value Cost Basis Rate To Fund Goals Available Principal Residence - Not AssignedPrimary Residence Bridget No $1,500,000 $1,600, % 000% Whenever needed - Stock Options No stock options entered Deferred Compensation and Deferred Annuities No deferred compensation or deferred annuities entered 89 of 127 Raymond James Financial Services, Inc

90 Mr Raymond and Mrs Bridget James Liabilities Liabilities Tax Responsible Current Periodic Payment Interest Year of Description Type Deductible Party Balance Payment Frequency Rate Maturity Auto Automobile No Raymond $50,000 $950 Monthly 500% 2099 Residence Primary Residence No Raymond $650,000 $4,200 Monthly 600% of 127 Raymond James Financial Services, Inc

91 Mr Raymond and Mrs Bridget James Insurance Life Insurance Percent of Year Year Current Estimated Cash Value Insured Annual Face Premiums Coverage Cash Cash Value at Available to I Description Type Party Owner Beneficiary Premium Amount Stop Expires Value Retirement Fund Goals Term Raymond Raymond Bridget $0 $ $0 $0 000% Term Bridget Raymond Bridget $0 $ $0 $0 000% Disability Insurance Waiting Length of Cost of Annual Monthly Period Benefit Living I Description Type Insured Party Premium Benefit (days) (years) Adjustment Group Raymond $0 $ % Group Bridget $0 $ % Long-Term Care Insurance No long-term care policies entered 91 of 127 Raymond James Financial Services, Inc

92 Mr Raymond and Mrs Bridget James Income Sources Annual Earned Income Raymond Bridget Salary $175,000 $25,000 Self-employment earnings $0 $0 Earnings not subject to FICA $0 $0 Social Security Raymond Bridget Covered by Social Security Yes Yes Percent Social Security COLA keeps pace with inflation 10000% Benefit begin age Annual benefit amount $31,412 $19,739 Portion subject to tax 8500% Business / Real Estate Income No business / real estate income entered Miscellaneous Income Annual I Description Type Cash/Non Cash Active/Passive amount Year payment begin Ordinary Cash Active $ Ordinary Cash Active $ Number of years Increase rate before Increase rate after II Description income continues income begins income begins Portion subject to tax 0 000% 000% 10000% 0 000% 000% 10000% Income from DBPs, Notes and Annuities No income from notes and annuities entered Government Programs No government programs entered Earnings During Retirement No earnings during retirement entered 92 of 127 Raymond James Financial Services, Inc

93 Mr Raymond and Mrs Bridget James Lifestyle Expenses Lifestyle Expenses No lifestyle expenses entered Other Expenses and Charitable Gifts No other expenses entered 93 of 127 Raymond James Financial Services, Inc

94 Mr Raymond and Mrs Bridget James Income Tax General Filing status Joint Number of personal exemptions 0 State/local tax rate 000% Taxable refunds $0 Education credits $0 Other credits $0 Capital Gains Short-Term Long-Term Current year capital gain (loss) $0 $0 Capital loss carry forward $0 $0 Adjustments and Itemized Deductions Adjustments to income for AGI $0 Casualty and theft losses $0 Real estate, personal property tax $0 Alternative Minimum Tax Interest on a home mortgage not used for your home $0 Post-1986 depreciation $0 Other adjustments & preference items $0 AMT net passive income (loss) $0 Net operating loss adjustment $0 94 of 127 Raymond James Financial Services, Inc

95 Mr Raymond and Mrs Bridget James Financial Goals Education Goals Annual amount Inflation Portion to Included education goal in I Student Start Age Years of need (today's dollars) rate fund advisor analysis Paris 18 4 $12, % 10000% Yes Thad 18 4 $12, % 10000% Yes Other Accumulation Goals (Pre-Retirement) Years of Annual amount Inflation Portion Included accumulation goal I Description Years until need Years of need (today's dollars) rate to fund in advisor analysis World Cruise 10 1 $200, % 10000% Yes Planned Asset Withdrawals No planned asset withdrawals entered Other assets available to fund pre-retirement goals $0 Retirement Annual Spending Goal Annual retirement spending goal $100,000 Portion of annual retirement spending goal to fund for surviving partner 8000% Amount to leave as a legacy $1,000,000 Other Retirement Spending Goals I Description Begin year Years of need Annual amount Inflation rate before goal Inflation rate during goal Colege-Grandchildren $30, % 500% 95 of 127 Raymond James Financial Services, Inc

96 Mr Raymond and Mrs Bridget James Long-Term Care Expenses Long-Term Care Expenses No long-term care expenses entered 96 of 127 Raymond James Financial Services, Inc

97 Mr Raymond and Mrs Bridget James Estate Planning 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 Estate Tax and State Death Tax Assumptions Raymond Bridget Federal estate tax law applied Sunset Sunset State death 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 97 of 127 Raymond James Financial Services, Inc

98 Glossary of Key Terms 98 of 127 Raymond James Financial Services, Inc

99 Mr Raymond and Mrs Bridget James Asset Allocation Glossary Aggressive investment mix - Asset mixes that have more risk relative to other mixes are referred to as aggressive Aggressive mixes will often provide higher potential returns, but with a greater degree of uncertainty Aggressive mixes do not always produce higher actual returns than more conservative asset mixes Annuity assets - Amounts invested in an annuity contract with an insurance company Annuity assets accumulate tax-deferred IRS minimum withdrawal calculations are not applied to annuity assets When withdrawn, the deferred income is taxed as ordinary income Asset allocation - The process of determining the proportions of your portfolio that will be invested in the available asset classes Asset class - A standard term used to broadly define a category of potential investments Asset mix - The percentage weightings (or mix) of different asset classes held in the portfolio A portfolio may have separate asset mixes for taxable and tax-deferred holdings The composite asset mix represents the combination of taxable and tax-deferred holdings Back test - Shows how the present asset mix and a proposed asset mix might have performed historically if invested among the same available asset classes Actual historical returns are used to represent the performance of each asset class over a common time period Book value - The cost basis of an investment For non-qualified investments this is generally the amount that was paid for the investment when it was originally acquired If yield is reinvested in the non-qualified investment, the basis is adjusted upwards to reflect the amount reinvested Conservative investment mix - Asset mixes that have low risk relative to other mixes are referred to as conservative Conservative mixes will often provide lower long-term returns than more aggressive asset mixes, but with a greater degree of certainty Current dollars - The value of an asset stated in terms of the actual dollars held, not in terms of purchasing power Efficient frontier - A line developed by plotting asset mixes, ranging from conservative to aggressive, that provide the best tradeoff between risk and return These efficient asset mixes provide (1) the maximum possible assumed return for a given level of risk and (2) the minimum possible level of risk for a given level of assumed return Index proxy - Each asset class is assigned a proxy market index (see market index) that is most representative of that particular asset class This index proxy should exhibit underlying financial characteristics similar to those of the asset class The historical data from the proxy is used to simulate the returns for the asset class Indices - See market index Inflated dollars - A forecast of asset value measured in terms of purchasing power Because of inflation, investment dollars will probably not be able to buy as much in the future as they can today Market index - Any recognized economic or financial indicator used to evaluate and measure changes in value over the short-term and the long-term Non-qualified assets - Assets that are currently subject to federal, state, and local taxes Qualified assets - Assets that allow investment earnings to accumulate with tax advantage Qualified assets are normally invested in a 401(k), 403(b), SEP, Keogh, or IRA 99 of 127 Raymond James Financial Services, Inc

100 Mr Raymond and Mrs Bridget James Asset Allocation Glossary Return - The increase or decrease in value of an investment expressed as a percentage of the total amount invested The return or rate of return is the sum of two components: the yield and appreciation Yield is the income received from the investment Appreciation is the growth in value of the investment Actual return - The historical return earned by an investment for a given year Annual return - The return earned by an investment during a one-year period Annualized return - The total return earned by an investment over a multiple year period and reported as the average annual return that would need to be earned each year of the period to attain the total performance of the investment Assumed return - See hypothetical return Compound return - The total, non-annualized return earned by an investment over a multiple-year period See also total return Hypothetical return - The return that an investment is hypothetical to earn in the next year The hypothetical return is generally reported as the average historical return over a multiple year period Historical return - See actual return Inflation adjusted returns - Returns that are adjusted for inflation The adjustment is made by calculating the difference between the actual returns and the inflation rate Range of returns - The range of historical annual returns for an investment over a multiple year period reported as a high and a low return The reported high is the highest annual return realized during the period The reported low is the lowest Total return - The total return measured by combining the total income received (yield) and all capital appreciation from an investment over the entire holding period of that investment Yield - The current cash income received from an investment in an asset class Bonds provide yield in the form of interest payments Stocks provide yield through dividends Risk - The unpredictability of investment returns The chance that the actual return from investment in an asset class will be different from its assumed return Risk is measured statistically using standard deviation Risk tolerance analysis - An analysis that attempts to determine the risk tolerance of a client by scoring the client's answers to questions on a risk profile The client's risk tolerance is translated to an associated risk region on the efficient frontier, and the portfolio that matches the client's risk tolerance is recommended from the efficient frontier Sharpe ratio - A measure of the incremental assumed return (in inflated dollars) provided by an asset class or asset mix for taking additional risk Higher Sharpe Ratio values are desirable Standard deviation - An estimate of the possible future dispersion (or divergence) of the actual returns from an asset class around its hypothetical return The standard deviation for an asset class represents its estimated average annual investment risk Investment risk is based on the notion of uncertainty The less certain it is that the asset class will generate its hypothetical return, the higher the risk of that asset class Time horizon - The amount of time an investment is held Asset allocation planning focuses on the long-term financial objectives of an investor A growth-oriented asset allocation plan will produce years with losses In the past, however, the acceptance of short-term risks has been rewarded with high long-term returns Turnover Rate - The estimated average portion of the holdings in an Asset Class that are expected to be bought and sold each year The turnover rate is used to calculate the realized capital growth and capital gains taxes in financial forecasts Yield - The current cash income received from investment in an asset class Bonds provide yield in the form of interest payments Stocks provide yield through dividends 100 of 127 Raymond James Financial Services, Inc

101 Mr Raymond and Mrs Bridget James Glossary of Index Proxies FED 3-Mo T-Bill (S) (Cash Equivalents) The Federal Reserve 3-Month Treasury Bill (Secondary Market) is based on the active resale or secondary market in Treasury bills that centers around dealers, both commercial banks and non-bank dealers, that report daily activity to the Federal Reserve Bank of New York ( present) BarCap IntGovt/Crdt (Domestic Fixed) The Barclays Capital Intermediate Gov't/Credit Index (BarCap IntGovt/Crdt) is an unmanaged index composed of debt securities with maturities from one to ten years issued or guaranteed by the US Treasury, US Government agencies and quasi-federal corporations and fixed rate dollar denominated SEC-registered corporate debt that are rated investment grade or higher by Moody's Investors Service, Standard and Poor's Corporation of Fitch Investor's Service, in that order Issues must have an outstanding par value of at least $100 million for US Government issues and $50 million for all others ( present) BarCap MunicipalBond (Tax-Free Fixed) The Barclays Capital US Municipal Bond Index (BarCap MunicipalBond) Index is a benchmark index that covers the USD-denominated long term tax exempt bond market The index has four main sectors: state and local general obligation bonds, revenue bonds, insured bonds, and pre-refunded bonds ( present) BarCap High Yield (High Yield) The Barclays Capital High Yield Bond index (BarCap High Yield) is composed of fixed-rate, publicly issued, non-investment grade debt, some of which may be considered 'junk bonds' ( present) CITI NonUS WGBI-All$ (International Fixed) The Citigroup World Government Bond Index (WGBI) non-us is a market-capitalization-weighted benchmark that tracks the performance of the 21 government bond markets of Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, the Netherlands, Norway, Poland, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom ( present) RUSS 1000 Value (Large Cap Value) Measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values ( present) RUSS 1000 Index (Large Cap Blend) A comprehensive large-cap index measuring the performance of the largest 1,000 US incorporated companies, the Russell 1000 Index is reconstituted completely on an annual basis to ensure the index measures the large cap segment consistently and objectively over time Each security in the Russell 1000 is float-adjusted market capitalization-weighted to ensure investable positions The Russell 1000 measures the performance of the 1,000 largest companies in the Russell 3000 Index, and represents approximately 92% of the total market capitalization of the Russell 3000 Index ( present) RUSS 1000 Growth (Large Cap Growth) Measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values ( present) RUSS Midcap Value (Mid Cap Value) The Russell Mid Cap Value Index measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values ( present) RUSS MidCap Index (Mid Cap Blend) The Russell Midcap Index measures the performance of the 800 smallest companies in the Russell 1000 index, which represent approximately 26% of the total market capitalization of the Russell 1000 Index As of the latest reconstitution, the average market capitalization was 101 of 127 Raymond James Financial Services, Inc

102 Mr Raymond and Mrs Bridget James approximately $33 billion; the median market capitalization was approximately $25 billion The index had a total market capitalization range of approximately $98 billion to $12 billion ( present) RUSS MidCap Growth (Mid Cap Growth) The Russell Midcap Growth Index measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values ( present) RUSS 2000 Value (Small Cap Value) Measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values ( present) RUSS 2000 Index (Small Cap Blend) Measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index ( present) RUSS 2000 Growth (Small Cap Growth) Measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values ( present) RUSS 3000 Index (All Cap) The Russell 3000 Index measures the performance of the 3,000 largest US companies based on total market capitalization, which represents approximately 98% of the investable US equity market ( present) LIPR Balanced Fund (Balanced) The Lipper Balanced Fund Index is a portfolio whose primary objective is to conserve principal by maintaining at all times a balanced portfolio of both stocks and bonds ( present) MSCI EAFE Index-$ (International Equity) The MSCI EAFE (R) Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the US & Canada As of April 2002 the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom ( present) Wilshire RESI (Real Estate and Tangibles) The Wilshire Real Estate Securities Index measures the performance of publicly traded real estate securities without some of the limitations of other appraisal based indexes ( present) Alternative Investment (Alternative Investments) Alternative Investments are represented by a composite index of real estate, managed futures, hedge funds and commodities This composite index is calculated using 25% NCREIF Property Index, 25% CISDM Trade Advisor Universe, 25% Goldman Sachs Commodity Index and 25% Hedge Fund Research Fund Weighted Index NASDAQ 100 Index (Concentrated Large Cap) The NASDAQ-100 Index includes 100 of the largest domestic and international non-financial companies listed on The NASDAQ Stock Market based on market capitalization The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology It does not contain financial companies including investment companies ( present) SURZ Small Growth (Concentrated Small Cap) The SURZ Small Cap Growth Index is derived from taking the bottom 10% of the Compustat database products and then defining the group as growth by establishing an 102 of 127 Raymond James Financial Services, Inc

103 Mr Raymond and Mrs Bridget James aggressiveness measure This amounts to roughly 5000 securities based upon market capitalization, calculated by multiplying shares outstanding by price per share Aggressiveness is a proprietary measure that combines dividend yield and the price/earnings ratio The top 40% (by count) of stocks in aggressiveness are designated as growth ( present) S&P 500 Composite - The S&P 500 Composite Index is widely regarded as the best single-gauge of the US equities market, this world-renowned index includes 500 leading companies in leading industries of the US economy Although the S&P 500 Composite Index focuses on the large cap segment of the market, with approximately 75% coverage of US equities, it is also and ideal proxy for the total market The S&P 500 Composite is part of a series of S&P US indices that can be used as building blocks for portfolio construction ( present) BarCapAggregateBnd - The Barclays Capital Aggregate Bond Index represents the entire bond universe and is composed of securities from the Barclays Capital Government / Corporate Bond Index and the Barclays Capital Mortgage-Backed Securities Index The inception date of the index is December 31, 1975 This index measures the total return of all major sectors of domestic, taxable bond market ( present) CPI-U All Items - The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services The CPI reflects spending patterns for each of two population groups: all urban consumers and urban wage earners and clerical workers The all urban consumers group represents about 87 percent of the total US population It is based on the expenditures of almost all residents of urban or metropolitan areas, including professionals, the self-employed, the poor, the unemployed and retired persons as well as urban wage earners and clerical workers ( present) 103 of 127 Raymond James Financial Services, Inc

104 Mr Raymond and Mrs Bridget James Accumulation Glossary Accumulation goal - A goal that will require the use of your savings or investments The purpose of the goal planning analysis is to determine if you have accumulated sufficient funds to meet your goals If you do not have sufficient funds already set aside, the system will determine the necessary monthly amount that will need to be invested to meet the goal Asset returns - The combined current income and capital appreciation from an investment Generally, income tax is levied on current income in the year it is received and on capital appreciation when the asset is sold, unless the asset is held in a tax-deferred investment vehicle such as an IRA or other qualified plan College Tuition Deduction -Taxpayers may deduct $4,000 per year for qualified higher education expenses The deduction is phased out when adjusted gross income is between certain amounts, depending on tax filing status ($65,000 - $80,000 if single, and $130,000 - $160,000 if married filing jointly), and is not available in the same year a Hope or Lifetime Learning credit is claimed for the same student It is not necessary to itemize your tax return to claim this deduction (sometimes called an 'above-the-line deduction') Depending on your tax situation and the amount of college expenses, it may be more advantageous to claim the education expense deduction than to claim a Hope or Lifetime Credit in a tax year Consult your tax advisor to determine your best course of action Under current law, the education expense deduction will no longer be available after the year 2009 Coverdell education savings account -Formerly called Education IRAs, Coverdell ESAs provide tax benefits to save for education goals Up to $2,000 per year (phased out at higher income levels) may be contributed for each student, until the student turns 18 Any individual, corporation, or tax-exempt organization may contribute to a Coverdell ESA Contributions are not tax deductible, but earnings grow tax-deferred, and distributions are exempt from federal taxation if they are used to pay for qualified higher education expenses (state tax treatment varies) Taxes and tax penalties may apply if these funds are used for any other purposes Qualified expenses include tuition and books, tutoring, computer equipment, and room and board Education funding goal - A goal to accumulate sufficient funds to pay for the costs of educating a student Education IRAs - See Coverdell education savings account Funding period - The time horizon during which funding for education or other goals continues For this analysis, the period is assumed to begin today and continue until either 1) withdrawals to meet the need begin or 2) the period of need ends The analysis will determine the necessary monthly savings amount required to meet the need based on the type of funding period you choose Hope Credit -For students in the first two years of college, a Hope tax credit may be available A Hope Credit may reduce your tax liability by as much as $1,800 per year (in 2010, adjusted annually for inflation) by allowing 100% of the first $1,200 of qualified expenses and 50% of the next $1,200 to be claimed as a credit The credit is non-refundable: it cannot reduce your tax liability below zero This credit is phased out when adjusted gross income is above a certain amount, depending on tax filing status (currently $50,000 - $60,000 if single and $100,000 - $120,000 if married filing jointly in 2010) One Hope Credit may be claimed per year for each student who meets all the qualificationsto qualify, the student must be within his/her first two years of higher education and registered at least half-time at an accredited school The credit covers only qualified education expenses, which are generally limited to tuition and fees required for enrollment Income tax - Annual tax levied by the federal government, most states, and some local governments, on an individual's earnings and capital appreciation Inflation - The overall upward price movement of goods and services in an economy, usually measured by the Consumer Price Index and stated as a rate of increase IRAs -A tax-deferred retirement account for an individual that permits individuals to set aside up to $5,000 per year, with earnings tax-deferred until withdrawals begin at age 59 1/2 or later (or earlier, with a 10% penalty) Only those who do not participate in any qualified plan at work, or who do participate and meet certain income guidelines, can make deductible contributions to an IRA All others can make contributions to an IRA on a non-deductible basis Such contributions qualify as a deduction against income earned in that year and interest accumulates tax-deferred until the funds are withdrawn Withdrawals from a Traditional IRA or Roth IRA that are used to pay for qualified education expenses are not subject to the 10% early withdrawal penalty Expenses may include such items as tuition, books, fees, room and board, supplies, and equipment 104 of 127 Raymond James Financial Services, Inc

105 Mr Raymond and Mrs Bridget James Accumulation Glossary Lifetime Learning Credit -For students beyond the first two years of college, or enrolled part-time or to improve job skills, a separate (more limited) tax credit may be available A Lifetime Learning Credit may reduce your tax liability by as much as $2,000 per year by allowing 20% of qualified expenses incurred to be claimed as a credit The credit is non-refundable: it cannot reduce your tax liability below zero The tax credit is phased out when adjusted gross income is between certain amounts, depending on tax filing status (currently $50,000 - $60,000 if single and $100,000 - $120,000 if married filing jointly in 2009) One tax payer may claim a Lifetime Learning Credit for multiple students in the same year, up to the credit limit, as only one credit can be claimed per year The credit covers only qualified education expenses, which are generally limited to tuition and fees required for enrollment Limits on Itemized Deductions -If your adjusted gross income is too high, the total value of what you're allowed to deduct is itself reduced If your adjusted gross income exceeds $166,800 in 2010, the deductions must be reduced by 1% of your income that exceeds the $166,800 threshold Under this same provision however, no more than 80% of your deductions can be phased out Return - The increase or decrease in value of a return on an investment expressed as a percentage of the total amount invested The return or rate of return is the sum of two components: the yield and appreciation Generally, hypothetical return increases as the level of risk in the investment increases Risk - The unpredictability of investment returns The chance that the actual return from investment in an asset class will be different from its assumed return Risk is measured statistically using standard deviation Section 529 plans - A qualified tuition program administered by a state and named after Section 529 of the IRS code in which special tax benefits are available Plans differ from state to state and are normally either prepaid tuition plans or special college savings plan accounts Earnings grow federal income tax-deferred When assets are withdrawn for qualified expenses such as tuition, room and board, books, and required supplies, they are federal income tax free State tax treatment varies There are no participation restrictions based on income Parents, other relatives, and even family friends can open accounts on behalf of the same beneficiary However, there may be a limit on the total amount in each account Assets can be used to pay for qualified higher education expenses at any accredited post-secondary institution in the United States that is eligible to participate in federal student aid programs The contributor retains control of assets until withdrawals are made You can change the beneficiary to be another family member of the original beneficiary without paying a penalty, and money can be withdrawn at any time If your beneficiary receives a scholarship for higher education expenses, you may withdraw an amount equal to the value of the scholarship without paying a penalty You may also make penalty-free withdrawals in the event of the death or disability of the beneficiary Non-qualified withdrawals of earnings will be taxed as ordinary income at your rate, and a federally mandated penalty equal to 10% of the gain will apply There are fees and charges associated with a 529 college savings plan and the underlying investment options are subject to market risk Student Loan Interest Deductibility -Individuals with qualified education loans used to pay higher education expenses for the taxpayer, a spouse, or a dependent may claim an 'above-the-line' deduction for interest paid during the first 60 months in which interest payments are required Up to $2,500 of interest may be deducted, and the deduction is phased out when adjusted gross income is between certain amounts, depending on tax filing status ($60,000 - $75,000 if single and $120,000 - $150,000 if married filing jointly in 2010) 105 of 127 Raymond James Financial Services, Inc

106 Mr Raymond and Mrs Bridget James Financial Statements Glossary Cash flow statement - A summary of an individual's cash flow over a given period of time Inflows - Money earned through employment and investments, or payments received from others such as the government or insurance companies Includes amounts received by incurring new debt Outflows - Use of the money received as inflows Includes expenditures and amounts invested during the period of the cash flow statement Net cash flow - The difference between your sources/inflows and your uses/outflows Disability insurance - An insurance policy that pays benefits in the event that the policyholder becomes incapable of working These policies have no cash value and technically are not assets that are normally included in a net worth statement However, the coverage provided by these policies is extremely valuable to a family or individual in the case of a disability Therefore, all disability policies are listed in the insurance section of the net worth statement of this report Income tax estimate - An estimate of the amount you will pay in income taxes to federal, state and local governments This amount is an estimate only For an exact tax statement see a tax professional An estimate is sufficient to learn of appropriate planning devices that can be implemented to help your net worth grow Alternative minimum tax - An alternative tax calculation created by congress to ensure that high-income individuals pay at least some minimum amount of tax, regardless of deductions, credits or exemptions It operates by adding certain tax-preference items back into adjusted gross income and recalculating taxes If the calculated AMT is greater than the calculated income tax, the individual will pay the AMT amount Marginal income tax rate - The highest rate of tax that an individual pays on income This rate is measured by the tax paid on the final dollar of taxable income This rate is also called the marginal tax bracket, the tax bracket, or tax rate of an individual For purposes of this analysis, an individual's marginal tax rate is a total of the marginal rates for federal, state, and local taxes Effective income tax rate - The average rate of tax that an individual pays on all income This rate is measured by dividing total taxes paid by total income This rate is different than the marginal rate The marginal rate measures the highest rate of tax on the final dollar of income This rate measures the average tax rate on all income Life insurance - Insurance that is paid to a beneficiary when an insured individual dies The most common life insurance policies are whole life policies and term policies While life policies generally have a cash value, term policies have no cash value Normally, only life insurance policies with cash value are listed on a net worth statement However, in this analysis all life insurance policies are listed Net worth statement - Provides a quantitative summary of an individual's financial condition at a specific point in time It lists assets, liabilities, and net worth The net worth statement is sometimes called a balance sheet or statement of financial condition Assets - Any item of economic value which you own especially that which could be converted to cash Examples are cash, securities, a house, a car, and other property Liabilities - A financial obligation, or debt Net worth - The approximate amount that would be left if you sold all your assets and paid off all your debt Pro forma statements - Projections of an individual's net worth and cash flow statements based on a set of assumptions Pro forma statements are projected for 1, 5, 10, or many years into the future Ratio analysis - Financial ratios are used to analyze an individual's liquidity, solvency, level of debt, and other key financial measures Ratios can provide early warning of financial problems, or they can be used to track your progress toward financial goals The following key ratios are included with your net worth statement, your cash flow statement, and your income tax estimate Debt to equity ratio - Total liabilities divided by total assets A measure of an individual's leverage, which means the percentage of assets that are funded by debt A lower ratio indicates greater financial health Current ratio - Cash divided by liabilities A measure of an individual's ability to meet debt obligations; the higher the ratio, the more liquid the individual is 106 of 127 Raymond James Financial Services, Inc

107 Mr Raymond and Mrs Bridget James Financial Statements Glossary Debt to income ratio - Total debt payments divided by income A measure of an individual's ability to meet debt service requirements This ratio is used by lenders to indicate the borrower's ability to repay loans A lower ratio indicates greater financial health Many financial institutions will not lend to an individual whose ratio is greater than 30-40% Contributions to income ratio - Total contributions to assets divided by total income A measure of an individual's current level of savings The higher the number, the higher the savings Months of cash flow on hand - Income divided by living expenses A measure of an individual's ability to meet required expenses in the case of an emergency (such as the loss of a job) The number of months of cash should not be too high (returns earned on cash investments are generally very low), but should be high enough to meet emergency expenses A good rule of thumb is to have an amount equivalent to 6 months worth of expenses held in liquid assets 107 of 127 Raymond James Financial Services, Inc

108 Mr Raymond and Mrs Bridget James Retirement Glossary Alternatives - Your retirement situation is projected based on your desired spending and current pattern of investing Alternatives are planning tools that require implementation and that, may provide additional retirement resources A new retirement situation is projected based on the alternative pattern (the suggested pattern) of investing and desired spending Annuity - Life insurance annuity contracts are useful planning tools that have two phases: the accumulation phase and the annuitization phase During the accumulation phase, you make a lump-sum payment or periodic payments to an insurance company, which invests the funds in a portfolio that earns a return The portfolio value fluctuates with that of the underlying securities within the portfolio, and the portfolio grows tax-deferred During the annuitization period, you receive regular payments from the annuity Generally, the payments continue until you die or until your spouse dies, if later Asset returns - The combined return stated as an annual percentage consisting of current income and capital appreciation from an investment Defined benefit pensions - Traditional pensions plans that promise workers a specific monthly benefit at retirement The amount of the benefit is known or can be determined in advance and is usually based on factors that include earnings, age at retirement, and length of service The benefit is usually stated as a percentage of final salary and years of service, or as a specific amount and years of service For example, a benefit might be stated as two percent of final salary for every year worked at the company, or as $100 per month for every year worked at the company Payments generally continue for the longer of the life of the worker of the life of the worker's spouse, but may be reduced when paid to a surviving spouse Payments may be guaranteed by the Pension Benefit Guarantee Corporation, a federal agency Full benefit retirement age - The age at which a qualifying individual can begin receiving full Social Security benefits without reduction for early retirement For individuals born before 1938, full benefit retirement age is 65 This age is gradually increased for individuals born after 1937 until it reaches age 67 for individuals born in 1960 or later Inflation - The overall upward price movement of goods and services in an economy, usually measured by the Consumer Price Index and stated as a rate of increase Investment assets - Assets that are currently subject to federal, state, and local taxes Be sure to indicate the appropriate percentage available to fund retirement Life expectancy - The age to which you are expected to live In this retirement analysis, funding will be provided until the age that you indicate as your life expectancy Because, individual health and longevity circumstances vary, and no one knows the exact time of death, an age should be selected that is appropriate for your individual circumstances Longevity - Living longer than expected can be a problem if you are using assets to fund retirement If your assets run out before you die, you may not be able to support yourself Longevity planning should include an evaluation of how long your family members before you have lived If you have a history of longevity in your family, you should plan for a long life expectancy Annuities provide a good planning strategy for longevity concerns A life annuity guarantees a periodic income throughout your (and potentially your spouse's) entire life Long-term care needs - If you reach a point in life where you are not physically or mentally able to care for yourself, you will likely incur long-term care expenses Generally, the best provision for long-term care expenses is a long-term care insurance policy Net assets withdrawn - In this analysis, retirement spending goals are first met by any contractual income that the retiree is expected to receive If the spending goal cannot be completely funded by contractual income during any month in retirement, assets are withdrawn to provide for the need Since taxes may be due upon withdrawal of an asset, the system withdraws an amount sufficient to provide for the need and to pay any taxes due The net asset withdrawal is the amount available after taxes to meet retirement spending needs Other government benefits - Benefits that are paid by any government entity to an individual in place of, or in addition to Social Security retirement benefits Benefits may include state retirement benefits, railroad retirement benefits, federal retirement benefits, or any other payments made by a government entity 108 of 127 Raymond James Financial Services, Inc

109 Mr Raymond and Mrs Bridget James Retirement Glossary Percentage of assets available - You are able to indicate the percentage of your assets that are available to help meet your retirement spending goals Generally, this will be 100%, unless you do not have access to part of an asset or you would like that asset to be preserved and passed to heirs Retirement needs - In this analysis, retirement needs consist of your basic spending goal and any additional spending goals that you have defined The basic spending goal is assumed to continue until death For married couples, the basic spending goal continues beyond the first to die until the surviving partner's death, but is adjusted at the first death by the percentage you input should be available for the surviving spouse You are able to indicate the beginning and ending period for any additional goals Please note that all goals are spending goals which means they are amounts you wish to spend and should not include any income taxes you may be required to pay The system will estimate any income taxes due based on the rates input in the assumptions screen Retirement period - The period that begins when and individual quits working (retires) and continues until death In this analysis, a married couple's retirement period is assumed to begin when the first partner retires and continues until the longer of the partners' life expectancies Retirement plans - Accounts that are used to accumulate funds for retirement Generally, retirement plans are tax deferred which means taxes are not paid on earnings until withdrawals from the account begin Contributions to retirement plans may also be tax-deductible which means taxes are not paid on the amounts contributed to the plan until withdrawals begin Tax deductible contributions are called qualified contributions Non-qualified contributions are made to a retirement plan after taxes are paid on the contribution amount These accounts include 401(k), 403(b), SEP, Keogh, and IRAs Roth accounts - Include Roth IRAs and Roth 401(k)s Contributions to Roth accounts are not tax deductible, but withdrawals from Roth accounts are tax-free, as long as certain requirements are met You can make tax-free withdrawals as long as you have had the IRA for 5 years, or you begin withdrawals after the owner reaches age 59 1/2 Social Security - Social Security retirement benefits are paid to a qualifying individual every month after the benefits begin, until that person dies Benefits may begin any time after a qualifying individual reaches age 62 However, benefits will be reduced if they begin before the individual reaches full benefit age Social Security statement - A statement that the Social Security Administration sends to all wage earners each year on or around the wage earner's birthday The statement estimates the wage earner's expected benefit assuming the person continues to work until the full benefit retirement age Spending goal - The amount that you desire to spend annually during retirement This amount should be an after-tax amount The analysis will inflate this amount each year during retirement Before the amount is provided, the analysis will estimate taxes on income and taxes that may be due as assets are consumed Amounts remaining after-taxes are available to provide for the spending goal Survivor - For married individuals, retirement funding is provided until the last life expectancy is reached If there is a period between the life expectancies of the partners, funding is provided after the first death at an adjusted level based on the inflated original spending goal and the percentage provided for the survivor Tax deferral - Money accumulates inside of qualified plans tax deferred, which means that taxes are not paid on the earnings within the plan until withdrawals from the plan are made Work during retirement - Employment after the date one retires from one's career, sometimes necessary to meet financial needs Generally, post-retirement employment will provide a lower income or involve fewer hours Working spouse's pre-retirement income - Marriage partners may not retire at the same time Since this analysis assumes that the retirement period begins when the first partner retires, there may be a time during the retirement funding period in which one of the partners is working The after-tax adjusted income from this partner can be made to be available to meet retirement needs If you indicate that this income is available, it is reduced by income taxes, Social Security taxes, and any contributions made to retirement plans during the period in which one partner is working and the other is retired 109 of 127 Raymond James Financial Services, Inc

110 Mr Raymond and Mrs Bridget James Estate Glossary Assets - All property with any incidence of ownership by the estate Ownership of assets determines the estate tax treatment applied to the asset upon death Assets can be owned directly, JTWROS, as community property, or as tenants in common Directly held assets - Any property owned solely by an individual The individual generally has the right to direct the disposal of the asset upon death JTWROS assets - Ownership of property by two or more people in which the surviving owner(s) automatically gain ownership of a decedent's interest Community property assets - Any property that a married couple has acquired during their marriage In certain states (community property states), ownership, and thus the right to dispose of the property, is divided equally between partners Tenants in common assets - Ownership of property by two people in which the first-to-die's portion of the asset can be used to fund a credit shelter trust Life insurance - Insurance to be paid to a beneficiary when the insured dies If the insured is also the owner of the policy, the proceeds are included in the decedent's estate Beneficiary - An entity, usually an individual or an estate, that receives benefits under a will, retirement plan, or insurance policy Credit shelter trust - A trust that utilizes the unified gift and estate tax credit to reduce estate taxes at the surviving spouse's death At the grantor's death, an amount equal to the federal unified credit is transferred to the trust In this way, this amount is sheltered from estate tax calculations Current net estate - An individual's net estate assuming immediate death See net estate Current gross estate - An individual's gross estate assuming immediate death See gross estate Distributions - Distributions refer to all payments made by the estate Distributions include payments to creditors, beneficiaries, and governments for estate taxes Estate planning generally tries to maximize the final distribution to beneficiaries Estate preservation - Actions taken to reduce the burden of estate taxes and settlement costs and thus maximize the final distribution to beneficiaries Estate taxes - When you die, the federal government will assess the value of your estate by adding the value of your assets less any liabilities plus the death benefits of any life insurance policies that you own Your estate tax will be based on this assessed value and is generally paid by the estate before any distribution of estate assets are made Funding options - Funding refers to paying estate taxes Even after all preservation options are exhausted, some estate taxes may still be due upon death Gross estate - All property owned by an individual prior to any distribution of that property under the terms of a will or trust The gross estate includes the value of proceeds from life insurance that the decedent owned, and 50% of assets owned in joint tenancy, 50% of community property assets (if in a community property state) Liabilities - A financial obligation, claim, or debt that needs to be paid by the estate before estate taxes are calculated A joint liability may not need to be paid by the estate Life insurance - Insurance to be paid to a beneficiary when the insured dies Life insurance proceeds are included in an individual's estate if that individual retained any incidence of ownership in the policy Marital deduction - An estate tax provision that allows an individual to transfer an unlimited amount of property to his/her spouse without incurring any estate tax 110 of 127 Raymond James Financial Services, Inc

111 Mr Raymond and Mrs Bridget James Estate Glossary Marital distribution - Represents the actual value of assets that pass to the surviving spouse This amount may be different than the marital deduction because joint liabilities are not assumed to be paid off at the first death Net estate - The net estate is the gross estate reduced by any liabilities Used in calculating estate taxes Probate - Probate is the legal process of determining who gets what from the estate of passing legal title from the estate to the heir Upon your death, any property that you own directly must pass through probate Property help in joint tenancy does not need to pass through probate because survivors automatically gain ownership Property - Property is described as either real or personal Real property is real estate Personal property is everything else Personal property includes physical assets such as automobiles, equipment, and household items, as well as financial assets, such as securities, notes or loans receivable, bank accounts, cash, and insurance policies Settlement costs - All expenses necessary to settle or finalize the distributions from the estate Settlement costs include funeral expenses, estate administration costs, and probate expenses Will - A legally enforceable document that allows you to direct the transfer of assets after your death, to designate a personal representative, and to nominate a guardian for your minor children A will is also called a testament 111 of 127 Raymond James Financial Services, Inc

112 Investment Policy Statement 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

113 Mr Raymond and Mrs Bridget James Part 1 - Summary This Investment Policy Statement (IPS) considers the information you have provided about your financial circumstances and is an attempt to ensure the long-term adherence to an investment discipline Primary Goal: Retirement Secondary Goal: Long-term Wealth Accumulation Investment Assets: More than $1,000,000* Investment Strategy: Balanced with all or the majority of the investment assets being held at Raymond James Risk Tolerance: Moderate Time Horizon: Long (5-10+ Years) Investment Experience: Stocks - Moderate with 5+ years Bonds - Moderate with 5+ years Options/Futures - None Mutual Funds - Moderate with 5+ years Annuities - Moderate with 2 to 5 years Separately Managed Accounts - None Alternative Investments - None 113 of 127 Raymond James Financial Services, Inc

114 Mr Raymond and Mrs Bridget James Part 2 - Purpose The purpose of this Investment Policy Statement (IPS) is to assist you and your financial advisor in constructing, monitoring, and evaluating the investment portfolio contained within this IPS Its purpose is to describe how your investment decisions are related to your goals and objectives while simultaneously adhering to your constraints This exercise should produce realistic investment goals and, equally important, a common understanding of the risk/return tradeoff Additionally, this IPS should detail an investment structure for managing your portfolio This structure may include various asset classes that are expected to produce an appropriate level of overall diversification and provide for the possibility of an appropriate risk adjusted return over your investment time horizon Part 3 - Roles and Responsibilities Financial Advisor: You have selected John Planner to assist in the managing and implementation of your investment portfolio The primary responsibilities of your financial advisor are: 1 Prepare and maintain this Investment Policy Statement (IPS) 2 Provide you with a risk/return profile 3 Prudently recommend investment alternatives 4 Avoid conflicts of interest and prohibited transactions 5 Monitor and review your portfolio in accordance with this IPS 6 Communicate fees and investment expenses Client(s): Any successful relationship depends upon personal commitment, regular and open communication and informed decision making Your primary responsibilities are: 1 Be forthcoming about your current financial situation, as well as needs and objectives 2 Read and carefully review all trade confirmations and account statements for accuracy and promptly report any errors 3 Understand the total of all fees & commissions given the specific investment services provided 4 Read carefully any investment literature, prospectuses and/or other offering documents, when applicable, prior to making investment decisions and purchases 5 Report changes in your financial and personal circumstances in a timely manner to assure recommendations reflect all relevant factors 6 Understand all investments have some degree of risk and it is possible to lose money on any investment Investment Managers Investment managers are responsible for making investment decisions based upon their predetermined process and philosophy The specific duties and responsibilities of each manager are: 114 of 127 Raymond James Financial Services, Inc

115 Mr Raymond and Mrs Bridget James 1 Manage the assets in accordance with the guidelines and objectives set forth within the individual manager's marketing materials and/or RJCS Due Diligence research reports 2 Vote promptly all proxies and related actions in a manner consistent with the long-term interest and objectives of the Client Each investment manager shall keep detailed records of the voting of proxies and related actions and will comply with all applicable regulatory obligations 3 Use the same care, skill, prudence and diligence under the prevailing circumstances that experienced investment professionals, acting in like capacity, and fully familiar with such matters, would use in like activities for like portfolios, with like aims, in accordance and compliance with the Prudent Investor Rule and all applicable laws, rules, and regulations Part 4 - Client Objectives There is generally a direct tradeoff between the risk you are willing to assume and the potential for investment return The process of identifying an appropriate investment strategy should take place concurrently with the discussion of your personal financial circumstances, risk tolerance and applicable portfolio constraints Risk Tolerance: When investing, you must recognize and acknowledge that risk must be assumed in order to attempt to achieve long-term investment objectives and there are uncertainties and complexities associated with all investments Some of the main factors that can influence your risk tolerance assessment are your age, financial circumstances, income and expenses, investment experience, along with several other factors Based on the information you have made known to us, it is indicated that you are comfortable with a moderate degree of risk Investment Strategy: Through consultation with your financial advisor, it has been determined that a Balanced may be most appropriate This objective is designed to offer the potential for both capital appreciation and current income through an allocation to equities and fixed income investments Part 5 - Constraints Time Horizon: The minimum expected investment period should be at least five years for any portfolio containing equities For any portfolio with less than a five-year time horizon, the portfolio should be comprised predominately of fixed income investments Multi-stage time horizons can also be considered and properly addressed You have stated that your time horizon is long (5-10+ years) Liquidity Requirements: With liquidity defined as either income needs, funding requirements, or as cash reserves, your liquidity 115 of 127 Raymond James Financial Services, Inc

116 Mr Raymond and Mrs Bridget James requirement is average There will be a need for the investment earnings of this portfolio to meet some or all of your annual expenses Anticipated future liquidity events are not a consideration at this point and should not be taken into account when constructing your portfolio Taxes: The impact of taxes can influence recommendations and thus should be taken into account when constructing your portfolio Consideration should be given as to the appropriateness of both taxable and tax exempt investments You have indicated that taxes are an issue, and should be taken into consideration when constructing your portfolio The tax constraints are described below Comments: Mr James wants to reduce his tax liability Legal and Regulatory Issues: External factors imposed by governmental, regulatory or oversight authorities, for example, may constrain the investment decision making process You have indicated that there are no legal and/or regulatory issues to be considered in the construction of your portfolio Unique Circumstances: Unique circumstances may include guidelines for social or special purpose investing, assets legally restricted from sale, directed brokerage arrangements, and privacy concerns You have indicated that there are unique circumstances that should be taken into consideration when constructing your portfolio The unique circumstances are described below Comments: No sin stocks 116 of 127 Raymond James Financial Services, Inc

117 Comprehensive Financial Plan Mr Raymond and Mrs Bridget James Part 6 - Asset Allocation The Balanced allocation may be best suited to your objectives, risk tolerance and constraints As with any investment strategy, there is no guarantee that this asset allocation will perform as expected It is an attempt to balance the potential for return with the risk of loss to your principal It is understood that over time, the amounts actually invested in the various asset classes will vary from the suggested asset allocation The following chart illustrates the suggested asset allocation: Part 7 - Portfolio Monitoring and Client Communication Investment performance must be periodically evaluated Rebalancing should also be addressed because the weighting to each asset class will vary over time More importantly, as your objectives and constraints materially change, a review of this investment policy statement is recommended You have indicated your desire to meet personally on a semi-annual basis and communicate, either via phone or in writing, quarterly Comments: 117 of 127 Raymond James Financial Services, Inc

118 Mr Raymond and Mrs Bridget James Acceptance and Adoption: You agree to notify your financial advisor in a timely manner of any material changes to your personal and/or financial circumstances that would alter the objectives or construction of your portfolio Meeting with your financial advisor to review this IPS on at least an annual basis is recommended to determine whether your stated investment objectives are still relevant If your financial advisor is not notified of material changes or the IPS has not been updated as recommended, then this IPS shall become invalid I (We) have reviewed, approve of and will adopt this Investment Policy Statement Approved: Prepared: Client Financial Advisor Date: Date: Client Date: 118 of 127 Raymond James Financial Services, Inc

119 Mr Raymond and Mrs Bridget James Disclosure IMPORTANT: International and emerging market investments involve additional risks including but not limited to currency fluctuations, differing financial accounting standards and possible political and economic instability These risks are magnified in emerging markets Small-cap and mid-cap stocks generally involve greater risks than larger, more established companies High yield bonds involve greater risks and are not appropriate for all investors Futures/Commodities and Venture Capital/L P (Limited Partnerships) also involve greater risks and are not appropriate for all investors 119 of 127 Raymond James Financial Services, Inc

120 Mr Raymond and Mrs Bridget James Do You Know Someone Else Who Could Benefit From This Service? Name Relationship Phone 120 of 127 Raymond James Financial Services, Inc

121 Mr Raymond and Mrs Bridget James Risk and Return The rates of return that are used to project your assets will have a significant impact on your planning results Remember loss of principal is a risk with any investment and that historical return rates are not a guarantee of future performance The chart to the right illustrates the range of return rates for four different investment types (T-Bills, Bonds, Hybrid and Large Cap Stocks) over the last 20 years Actual Return Rates for Last 20 Years ( ) Above average Below average Risk of Loss of Principal The greater the potential return on an investment, the greater the risk of loss of principal US government obligations, which are backed by the full faith and credit of the US government as to the timely payment of principal and interest, are generally the safest investment because the purchaser should receive the entire principal plus interest when the bonds are bought at issue and held to maturity Therefore, US government obligations are a benchmark for investment risk Examples of US government obligations are: Treasury Notes, T-bonds, T-bills, and US Savings Bonds While US government obligations offer credit safety, higher returns have historically been realized from other investments, including corporate bonds and equities, which also have been more volatile than US government obligations The above information illustrates this point Keep in mind, past performance is not a guarantee of future results Historical Returns: Unpredictability of Future Performance Risk of loss of principal must be considered along with other risks such as: inflationary risk (loss of purchasing power due to an investment's return being lower than the rate of inflation), timing risk (selling at the wrong time), market risk (price fluctuations due to price volatility in overall market), credit risk (risk of default of bond issue), liquidity risk (inability to liquidate or readily sell a security), etc An investor should evaluate the level of risk of each investment and his/her level of comfort with such risks Definitions and Sources Treasury Bills: performance data is based on the average yield of a one year T-Bill as published in the Federal Reserve Bulletin, years , and in Frontier Analytics' FactMaster, CITI 1 yr Treasury Benchmark, Long-Term Corporate Bonds: performance is calculated from the yield and price index from bonds with maturities of ten years or more as published in the Federal Reserve Bulletin, years , and in Frontier Analytics' FactMaster, CITI Corp 10+ yr, Hybrid is composed of 50 percent Long-Term Corporate Bond and 50 percent Large Company Stock Large Company Stocks: performance is calculated based on the S&P 500 Stock Index and yield as published in the Federal Reserve Bulletin, years , and in Frontier Analytics' FactMaster, S&P 500 Composite, The S&P 500 is an unmanaged index generally considered representative of the large-cap US stock market The example illustrated is hypothetical and does not represent a specific investment An investment cannot be made directly into an index The performance of any index is not indicative of the performance of a particular investment and does not take into account the effects of inflation, taxes or the fees and expenses associated with investing This example reflects reinvestment of all dividends and income Actual investor results will vary 121 of 127 Raymond James Financial Services, Inc

122 Mr Raymond and Mrs Bridget James Disclosure IMPORTANT: The projections module or other information generated by Sungard PlanningStation regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results Furthermore, they do not guarantee or imply success in the actual attainment of any goal This report is strictly a hypothetical illustration that was prepared by your financial advisor based on information you have provided, including but not necessarily limited to your personal goals, risk tolerance, your personal financial information and data from sources we believe but cannot guarantee to be accurate and reliable No guarantees, either expressed or implied can be made regarding the accuracy or completeness of this information The inflation rate, tax rates and rates of return included in this analysis are for financial analysis purposes only The actual rates you experience may vary significantly from these illustrated rates based on future economic conditions and personal circumstances This analysis does not guarantee the future performance of your assets The results of this analysis and any hypothetical rate of return assigned and illustrated in this document to any account, asset or asset class may vary with each use and over time, particularly for long-term investments Past performance of any investment, investment strategy and/or asset class does not in any way guarantee or imply future performance of that investment, investment strategy and/or asset class Any investment offering or illustrating the potential (no guarantee) for higher rates of return also involves a higher degree of risk to your principal A higher degree of risk to your principal will result in a greater probability of loss to your principal The present mix noted in this report represents the asset allocation based on the current investments you have in your portfolio The proposed mix noted in this report represents the recommended asset allocation for your portfolio Key Assumption: This illustration may be based in part, on the concepts of Modern Portfolio Theory A key assumption of Modern Portfolio Theory (MPT) is that through diversification, you may be able to minimize the effects of investment risks and that potential gains in one investment class may help offset losses in another Limitations: A major limitation is that there is no guarantee that the diversification strategy resulting from Modern Portfolio Theory, security and/or asset class selection and/or portfolio optimization will ever occur Diversification will not imply, predict or guarantee any gains or prevent any losses to your portfolio All analyses in this report are dependent upon various assumptions A change in one assumption may have a significant impact, either positive or negative on the results of this hypothetical analysis Criteria & Methodology Used: Asset mixes that may be presented throughout this analysis are derived using available historical information (risk and return statistics) for each asset class based on the selected index for that class They are meant only to illustrate the relative experience between asset classes and portfolios Other asset classes and indices may have characteristics similar or superior to those being analyzed here Your actual investment results may vary significantly with each use and over time Past performance of any individual security, asset class, financial index, index proxy or any investment strategy does not imply or guarantee future performance The Sharpe Ratio is a measure of incremental assumed return (in inflation dollars) provided by an asset class or asset mix for taking on additional risk Higher values of the Sharpe Ratio are desirable Measured as excess return (expected return less the risk-free return) divided by risk (standard deviation) Standard deviation is a risk statistic used to measure the amount of volatility of the return observations around the portfolio's average return Any specific security recommendations that may be contained in this report were not determined by the software used to produce this report Specific securities recommendations are made by your financial advisor The universe of securities from which any specific securities recommendations may be made includes all publicly traded debt and equity securities Certain securities such as mutual funds, unit investment trusts, etc are sold by prospectus only Investors should consider the investment objectives, risks, and charges and expenses of these investment companies carefully before investing The prospectus contains this and other information about these investment companies The prospectus is available from your financial advisor and should be read carefully before investing There may be material differences among the recommended investment products that may be included in this report including, but not limited to objectives, risks and expenses Please discuss these material differences very carefully with your financial advisor before deciding to make any investment 122 of 127 Raymond James Financial Services, Inc

123 Mr Raymond and Mrs Bridget James For any specific securities contained in this report, Raymond James Financial and/or any of its affiliates, subsidiaries or correspondents may make a market in, have an investment banking or other relationship with, provide research on (either through Raymond James or a firm with which Raymond James has a relationship) and/or engage in transactions for the purchase and/or sale of securities for its (Raymond James) own accounts The fact that these relationships might not currently exist regarding the securities listed in this report or that could have been listed in this report at the time of your receipt of this report does not imply that these relationships will not exist in the future Further information is available from your financial advisor International and emerging market investments involve additional risks including but not limited to currency fluctuations, differing financial accounting standards and possible political and economic instability These risks are magnified in emerging markets Small-cap and mid-cap stocks generally involve greater risks than larger, more established companies High yield bonds involve greater risks and are not appropriate for all investors Futures/Commodities and Venture Capital/L P (Limited Partnerships) also involve greater risks and are not appropriate for all investors Any hypothetical illustration of back tested performance is not indicative of the actual performance of a financial index, account, portfolio, individual security or strategy Back testing illustrations may not take into account the potential impacts of local, national and/or world economic and market events, the timing of investment purchases and sales or personal circumstances that might affect investment decisions No implication is made that the back tested results that may be illustrated in this report could have been achieved by any investor utilizing any illustrated/recommended asset mix or any financial index/index proxy The back tested results may be reflective of the reinvestment of dividends and other earnings and may not be reflective of transaction (advisory fees, commissions, etc) and any associated expenses Any illustration of past performance does not in any way imply or guarantee future performance This analysis is intended to be used as a presentation of some options and/or strategies that may be available for your consideration The estimated inflation rate, tax rates and any other information required by the software to produce its output are for illustrative purposes only Any depicted rates of return, whether illustrated at the asset class, account or specific security level, are hypothetical are for illustration purposes only, may vary with each use and over time and are not representative of the actual rate of return that you will experience with any particular insurance or financial product or asset class The actual rates you experience may vary significantly from these hypothetical rates based, in part, on future economic conditions, financial conditions specific to any individual company or investment product, your personal financial circumstances, etc This analysis does not in any way imply or guarantee the future performance of your assets Investments offering the potential for higher rates of return also involve a higher degree of risk to your principal Securities products are not insured by the FDIC are not deposits or other obligations of any financial institution are not guaranteed by any financial institution and are subject to investment risks, including possible loss of the principal invested Transactions that result from this analysis may be subject to commissions, fees or other charges that are not reflected within this material Transactions may also result in tax consequences Raymond James does not provide tax and/or legal advice and none is contained or implied in this report Any tax assumptions in this report are hypothetical estimates and may not be reflective of your actual and specific tax situation This report may not be based on any consideration of the possible effects of the Alternative Minimum Tax (AMT) or any current or future changes to existing local, state or federal tax law Please consult with a qualified tax and/or legal professional for advice in these areas There is no certainty that any investment or strategy will be profitable or successful in achieving your specific investment objectives or personal financial goals While this report may contain certain specific dollar amounts required to meet the estimated costs associated with your stated goals, these figures are strictly hypothetical in nature and are the result of mathematical calculations designed to solve for a given mathematical variable It is impossible to achieve a fixed and predictable return with any investment over any period of time with total certainty No such implication, suggestion or guarantee regarding your ability to attain any goal simply by investing the hypothetical amount at the hypothetical returns for the estimated time periods contained in this report is intended or implied The illustrations shown should not be considered as a prediction of any investment result Principal values of your investments will fluctuate and when redeemed, may 123 of 127 Raymond James Financial Services, Inc

124 Mr Raymond and Mrs Bridget James be worth more or less than your original investment Asset management, commission, transaction and other costs will also affect your overall investment results Asset allocation does not ensure a profit or protect against losses in a declining (or any type of) market Variable annuities are long-term investment alternatives designed for retirement purposes Withdrawals of taxable amounts are subject to income tax, and if made prior to age 59 1/2, may be subject to a 10% federal tax penalty Early withdrawals may be subject to withdrawal charges Partial withdrawals may also reduce benefits available under the contract as well as the amount available upon a full surrender An investment in variable annuities involves risk, including possible loss of principal The contracts, when redeemed, may be worth more or less than the original investment Investors should carefully consider the investment objectives, risks, charges and expenses of variable annuities before investing The prospectus contains this and other information about variable annuities The prospectus is available from your financial advisor and should be read carefully before investing The Projected Loan for Pre-Retirement Goals within this report represents borrowed funds for financial goals that you have identified The loan will reduce your total assets (taxable, tax-free and tax-deferred) You should meet periodically with your financial advisor to update this analysis Glossary of Index Proxies FED 3-Mo T-Bill (S) (Cash Equivalents) The Federal Reserve 3-Month Treasury Bill (Secondary Market) is based on the active resale or secondary market in Treasury bills that centers around dealers, both commercial banks and non-bank dealers, that report daily activity to the Federal Reserve Bank of New York ( present) CPI-U All Items - The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services The CPI reflects spending patterns for each of two population groups: all urban consumers and urban wage earners and clerical workers The all urban consumers group represents about 87 percent of the total US population It is based on the expenditures of almost all residents of urban or metropolitan areas, including professionals, the self-employed, the poor, the unemployed and retired persons as well as urban wage earners and clerical workers ( present) BarCap MunicipalBond (Tax-Free Fixed) The Barclays Capital US Municipal Bond Index (BarCap MunicipalBond) Index is a benchmark index that covers the USD-denominated long term tax exempt bond market The index has four main sectors: state and local general obligation bonds revenue bonds insured bonds and pre-refunded bonds (1967-present) BarCap High Yield (High Yield) The Barclays Capital High Yield Bond index (BarCap High Yield) is composed of fixed-rate publicly issued non-investment grade debt some of which may be considered junk bonds ( present) CITI NonUS WGBI-All$ (International Fixed) The Citigroup World Government Bond Index (WGBI) non-us is a market-capitalization-weighted benchmark that tracks the performance of the 21 government bond markets of Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, the Netherlands, Norway, Poland, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom ( present) RUSS 1000 Value (Large Cap Value) Measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values ( present) RUSS 1000 Index (Large Cap Blend) A comprehensive large-cap index measuring the performance of the largest 1,000 US incorporated companies, the Russell 1000 Index is reconstituted completely on an annual basis to ensure the index measures the large cap segment consistently and objectively over time Each security in the Russell 1000 is float-adjusted market capitalization-weighted to ensure investable positions The Russell 1000 measures the performance of the 1,000 largest companies in the Russell 3000 Index, and represents approximately 92% of the total market capitalization of the Russell 3000 Index ( present) 124 of 127 Raymond James Financial Services, Inc

125 Mr Raymond and Mrs Bridget James RUSS 1000 Growth (Large Cap Growth) Measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values ( present) RUSS Midcap Value (Mid Cap Value) The Russell Mid Cap Value Index measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values ( present) RUSS MidCap Index (Mid Cap Blend) The Russell Midcap Index measures the performance of the 800 smallest companies in the Russell 1000 index, which represent approximately 26% of the total market capitalization of the Russell 1000 Index As of the latest reconstitution, the average market capitalization was approximately $33 billion the median market capitalization was approximately $25 billion The index had a total market capitalization range of approximately $98 billion to $12 billion ( present) RUSS MidCap Growth (Mid Cap Growth) The Russell Midcap Growth Index measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values ( present) RUSS 2000 Value (Small Cap Value) Measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values ( present) RUSS 2000 Index (Small Cap Blend) Measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index ( present) RUSS 2000 Growth (Small Cap Growth) Measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values ( present) RUSS 3000 Index (All Cap) Measures the performance of the 3,000 largest US companies based on total market capitalization, which represents approximately 98% of the investable US equity market (1979 -present) LIPR Balanced Fund (Balanced) The Lipper Balanced Fund Index is a portfolio whose primary objective is to conserve principal by maintaining at all times a balanced portfolio of both stocks and bonds ( present) MSCI EAFE Index-$ (International Equity) The MSCI EAFE (R) Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the US & Canada As of April 2002 the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom ( present) DJ WILS Real Estate (Real Estate and Tangibles) The Dow Jones Wilshire Real Estate Securities Index measures the performance of publicly traded real estate securities without some of the limitations of other appraisal based indexes ( present) Alternative Invstmt (Alternative) Alternative Investments are represented by a composite index of real estate, managed futures, hedge funds and commodities This composite index is calculated using 25% NCREIF Property Index, 25% CISDM Trade Advisor Universe, 25% Goldman Sachs Commodity Index and 25% Hedge Fund Research Fund Weighted Index NASDAQ 100 Index (Concentrated Large Cap) The NASDAQ-100 Index includes 100 of the largest domestic and international non-financial companies listed on The NASDAQ Stock Market based on market capitalization The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology It does not contain financial companies including investment companies ( present) SURZ Small Growth (Concentrated Small Cap) The SURZ Small Cap Growth Index is derived from taking the bottom 10% of the Compustat database products and then defining the group as growth by establishing an aggressiveness measure This amounts to roughly 5000 securities based upon market capitalization, calculated by multiplying shares outstanding by price per share Aggressiveness is a proprietary measure that combines dividend yield and the price/earnings ratio The top 40% (by count) of stocks in aggressiveness are designated as growth ( present) 125 of 127 Raymond James Financial Services, Inc

126 Mr Raymond and Mrs Bridget James S&P 500 Composite - The S&P 500 Composite Index is widely regarded as the best single-gauge of the US equities market, this world-renowned index includes 500 leading companies in leading industries of the US economy Although the S&P 500 Composite Index focuses on the large cap segment of the market, with approximately 75% coverage of US equities, it is also and ideal proxy for the total market The S&P 500 Composite is part of a series of S&P US indices that can be used as building blocks for portfolio construction ( present) BarCapAggregateBnd - The Barclays Capital Aggregate Bond Index represents the entire bond universe and is composed of securities from the Barclays Capital Government / Corporate Bond Index and the Barclays Capital Mortgage-Backed Securities Index The inception date of the index is December This index measures the total return of all major sectors of domestic taxable bond market ( present) CPI-U All Items - The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services The CPI reflects spending patterns for each of two population groups: all urban consumers and urban wage earners and clerical workers The all urban consumers group represents about 87 percent of the total US population It is based on the expenditures of almost all residents of urban or metropolitan areas, including professionals, the self-employed, the poor, the unemployed and retired persons as well as urban wage earners and clerical workers ( present) 126 of 127 Raymond James Financial Services, Inc

127 Notes Comprehensive Financial Plan Mr Raymond and Mrs Bridget James 127 of 127 Raymond James Financial Services, Inc