Russell Advisory & Management (RAM) of Raymond James A Wealth Management Practice - Serving as a Central Point of Contact to a Select Group of Business Owners, Professionals and Retirees Russ A. Johnson, WMS, AAMS First Vice President, Investments 561-997-9100 / 800-327-1055 E-mail: Russ.Johnson@RaymondJames.com www.ramadvisory.com 10/4/2012 1
Biography Russell Johnson First Vice President, Investments Russ Johnson has been helping clients plan financially since 1992. Russ is a licensed financial advisor whose base of knowledge is centered in the areas of financial planning. Professional designations held by Mr. Johnson include Wealth Management Specialist (WMS), Accredited Asset Management Specialist (AAMS), Certificate from the American Society of Pension Professionals and Actuaries (ASPPA), Chartered Mutual Fund Counselor (CMFC), and B.S. from Kansas State University. In addition, Russ has successfully completed the Raymond James Institute of Finance courses: Financial Planner Series for Business Owners, Financial Planner Series for Individuals, Investment Management Consultant - Level I and II, as well as the Raymond James Advanced Trust Institute. Licenses held include Series 7, 8, 24, 63, 65, annuity, life and health insurance. Having lived primarily in Kansas City and Chicago through his formative years, Russ brings a strong foundation of Midwestern values to his financial planning practice and the community. Russ community involvement includes serving as a Director for the Special Needs Children s Ministry of Ascension Catholic Church in Boca Raton, FL, serves on the boards Oakstone Academy Palm Beach and of Elder Quality of Life of Palm Beach respectively, and is a former Instructor with the State of Kansas Department of Wildlife and Parks, all Not-for-Profit Organizations. Russ business experience includes having served as First Vice President of Investments with Janney Montgomery Scott LLC and as Assistant Branch Manager with JWGenesis Securities, now part of Wells Fargo Securities. Russ, and his wife Anamaria, live in south Florida with their three children. Russ Johnson, WMS Raymond James & Associates Boca Raton, FL 1-800-327-1055 or russ.johnson@raymondjames.com www.ramadvisory.com 10/4/2012 2
Russell Johnson Personal Background Education American Society of Pension Professionals and Actuaries (ASPPA) 2008 - Certificate Kaplan University 2006 - Wealth Management Specialist College for Financial Planning 1998 Accredited Asset Management Specialist College for Financial Planning 1997 Chartered Mutual Fund Counselor Kansas State University 1992 - Bachelor of Science Licenses held Series 7, 8, 24, 63, 65, Life, Health and Annuity Raymond James Institute of Finance Internal Designations: Retirement Plan Consultant -Financial Planning Series for Business Owners Financial Planning Series for Individuals -Advanced Trust Institute: Trust Specialist Investment Management Consultant Level I and II Experience 2005-Present Raymond James & Associates First Vice President, Investments 2000-2005 Janney Montgomery Scott LLC, First Vice President, Investments Insurance, Annuity and Mutual Fund Co-Coordinator 1994-2000 - JWGenesis Securities/CSG - Vice President of Investments - Assistant Manager 1992-1994 Hibbard Brown, Inc. Private Client Consultant 10/4/2012 3
OVERVIEW The RAM Advisory Advantage Extensive Resources to Help Meet Our Clients Objectives Client and Family Attorney Tax Professional RAM Advisory Wealth Management Financial Planning Investment Planning Trust Services Raymond James Resources and Specialists Business Solutions Retirement Plan Consulting Advisory Solutions Legacy Planning 10/4/2012 4 Contact for a Select Group of Business Owners, Professionals and Retirees
Overview Russell Advisory & Management (RAM) Our Mission To help our clients achieve their own unique goals by managing their assets, protecting their wealth and building their financial legacies. Our Approach We serve our clients with a consultative, team-based approach that examines all aspects of their financial lives. We put our clients interests above our own or those of our firm. Our Objective To educate our clients and increase their comfort and satisfaction by demonstrating our expertise and providing success in reaching their objectives. Russell Advisory & Management (RAM) of Raymond James & Associates Serving as a Central Point of 10/4/2012 5
Design Team - Russell Advisory & Management (RAM) We serve our clients with a consultative, team-based approach that examines all aspects of their financial lives. We put our clients interests above our own or those of our firm. The following professionals, located at the Corporate Headquarters in St. Petersburg, FL, as well as Boca Raton, FL, assist Russ Johnson with the design and implementation of solutions based recommendations for the clientele of RAM Advisory. James Swink, CLU, ChFC Vice President / Advanced Planning Raymond James Insurance Group John R. Gunnarson Senior Vice President Raymond James Trust, N.A. Daryl Benjamin, CFP, CLU Financial Planning Consultant Financial Planning Group Daniel Kraus Senior Vice President Complex Manager / Boca Raton Glenn Baker, LUTCF, CRPS Insurance Planning Specialist Raymond James Insurance Group Neal DeBonte Municipal Trading Specialist Fixed Income Desk Russell Advisory & Management (RAM) of Raymond James & Associates Serving as a Central Point of 10/4/2012 6
Our Client Advisory Process Russell Advisory & Management (RAM) Our practice employs a disciplined process to craft solutions to meet the needs of our clients. Individuals and families typically go through three very distinct stages over the course of life; accumulation, distribution and transfer. As they move through life, their goals, objectives, and risk tolerances change accordingly. Discover As professionals, it is our job to enable you to make informed financial decisions using the full complement of resources at our disposal. Manage Design Our process provides a framework for making decisions collaboratively and monitoring the outcome of those decisions over time. Implement Each step involves interaction between you, our team, and your outside professionals. 10/4/2012 7
Our Client Advisory Process Russell Advisory & Management (RAM) This process is a dynamic, teambased endeavor. To be most effective it should include the client, relevant members of his or her family, our team, select Raymond James specialists and outside professionals where appropriate. Discover We use a variety of tools including questionnaires and interviews to understand your personal goals, current financial situation, investment experience and risk tolerance. In this step, we make you fully aware of our capabilities and provide educational support to assist our clients in understanding the scope of services we offer to help you meet your objectives. Design Our team analyzes the information you share with us and designs solutions intended to help you reach your objectives. This step may involve collaboration with other specialists or your existing professionals. We present our recommendations to you, answer your questions, consider alternatives and outline the steps we need to take to implement your plan. Implement In this step, we execute your customized strategy using the extensive tools available to us through Raymond James. This involves the selection of specific account types, investment products and optional services; we then complete the necessary paperwork in a coordinated approach. Manage Once implemented, we continually monitor the progress of our recommendations relative to your defined objectives and suggest changes where needed. A key to this step is your involvement in the process and communication of any significant changes in your life. We accomplish this by providing ongoing reporting of your account activity and by conducting periodic reviews. 10/4/2012 8
Commitment to Our Clients The RAM Advisory Advantage We make these commitments to our clients: Confidentiality A Sophisticated Planning and Design Process Russell Advisory & Management (RAM) of Raymond James & Associates A Disciplined Investment Process Objective Recommendations Regular and Effective Communication 10/4/2012 9 Russell Advisory & Management (RAM) of Raymond James & Associates Serving as a Central Point of
ADVISORY SOLUTIONS Objective Scalable Consistent Raymond James is a firm that was founded on the principles of financial planning. While our investment resources are extensive, our Client Advisory Process extends beyond the management of portfolios. It encompasses our clients lifetime financial needs. Discover Our team has access to a variety of specialists employed by Raymond James that provide meaningful insight into our process. Planning for Retirement Manage Design Protecting Your Wealth Implement Building Your Legacy Wealth Management Solutions 10/4/2012 10
A Level of Service Tailored to Our Clients Needs RAM Advisory Objective Scalable Consistent Financial Planning Comprehensive Wealth Management Conservation of Wealth Gifting Special Needs Planning Trust Integration Charitable Giving Tax Strategies Executive Compensation Deferred Compensation Stock Options Concentrated Equity Positions Business Planning Core Investment Management Goals and Objectives Net-Worth Analysis Cash-Flow Analysis Asset Allocation Portfolio Performance Retirement Needs Distribution Strategies Education Funding Strategies Survivor Needs Disability Coverage Long-Term Care Estate Planning Goals and Objectives Net-Worth Analysis Cash-Flow Analysis Asset Allocation Portfolio Performance Retirement Needs Distribution Strategies Education Funding Strategies Survivor Needs Disability Coverage Long-Term Care Estate Planning Goals and Objectives Net-Worth Analysis Cash-Flow Analysis Asset Allocation Portfolio Performance Russell Advisory & Management (RAM) of Raymond James & Associates Serving as a Central Point of
ADVISORY SOLUTIONS Retirement Planning Retirees Face Numerous Risks Withdrawals What rate is sustainable? Sequencing by tax bucket Managing RMDs Longevity Long retirement horizons a couple aged 65 has 25% chance of a survivor living to age 96 Retiree Spending Replacement ratio Essential versus lifestyle expenses Medical expenses Market Volatility Uncertain returns and income Impact of point in time Asset allocation and location Retirement Income Inflation Erodes the value of savings and reduces returns Healthcare inflation 6%+ Solvency Pension plans and retiree benefits a thing of the past Social Security and Medicare Savings Underfunded defined contribution accounts Most Americans have an enormous savings gap. Past performance is no guarantee of future results. An investment cannot be made directly in an index. This art is for illustrative purposes only and not indicative of any investment. Source: Created by Raymond James using Ibbotson Presentation Materials 2008 Morningstar, Inc. All rights reserved. Used with permission. 10/4/2012 12
ADVISORY SOLUTIONS Retirement Planning Some Key Questions We Can Help You Resolve Do I have enough assets to retire? How much income will I need in retirement? Am I saving enough today? Is my portfolio set up to address longevity risk? How can I most efficiently withdraw assets from my IRAs and qualified plans? Am I taking enough risk in my portfolio given the effects of inflation? Should I leave my retirement plan at my employer or roll it over to an IRA? 10/4/2012 13
Russell Advisory & Management (RAM) Our Institutional Approach to Investment Consulting and Asset Management 10/4/2012 14
INVESTMENT SOLUTIONS Portfolio Construction Process We implement our investment process through the use of a variety of tools depending on your objectives, risk tolerance, time horizon, tax situation and investment experience. Discover Manage Implement Design Raymond James Capabilities Capital Markets Access and Research Professional Asset Management Flexible Account Types Alternative Investment Opportunities 10/4/2012 15
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Volatility of Portfolio Returns Asset allocation decisions are among the most important factors affecting total portfolio volatility. Factors in Portfolio Volatility Asset Allocation Decisions 91.5% Market Timing 1.8% Stock Selection 4.6% Other 2.1% 8.5% Source: Brinson, Singer and Beebower (1991) Fiftieth percentile mutual fund returns can be attributed to its investment discipline. Asset Allocation does not guarantee a profit nor protect against loss 10/4/2012 18
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Expected Return Managed Portfolios and the Efficient Frontier Balanced w/growth Growth Agg. Growth Balanced Equity Income Lower risk portfolios Higher risk portfolios Risk (Standard Deviation of Return) An efficient frontier represents every possible combination of assets that maximizes return at each level of portfolio risk and minimizes risk at each level of portfolio return. The above illustration depicts the typical relationship between risk and return. Generally, investors are expected to be compensated in returns for assuming higher levels of risk. 10/4/2012 20
Additional Chart Disclosures The fact that buy-and-hold has been a successful strategy in the past does not guarantee that it will continue to be successful in the future. The average (equity and fixed income) investor refers to the universe of all (equity or fixed income) mutual fund investors whose actions and financial results are restated to represent a single investor. Average (equity and fixed) investor returns are represented by a change in assets, excluding sales charges, redemptions and exchanges. This method of calculation captures realized and unrealized capital gains, dividends, interest, trading costs, sales charges, fees, expenses, and any other costs. Equity performance is represented by the Standard & Poor's 500 Composite Index (an unmanaged index of 500 widely held stocks). Fixed Income performance is represented by the Barclays Capital Aggregate Bond Index (an index which measures changes in the fixed-rate debt issues rated investment grade or higher. The aggregate index is comprised of the government/corporate, the mortgage-backed securities and the asset-backed securities indices). Inflation rate represents the monthly value of the consumer price index and is converted to a monthly rate. The monthly rates are used to compound a "return" for the period under consideration. An investor cannot invest directly in an index. Index returns do not reflect the deduction of fees, trading costs or other expenses.
Russell Advisory & Management (RAM) The Raymond James Advantage 10/4/2012 22
The Raymond James Advantage The decision to hire a professional financial advisory team should take into account the quality and professionalism of the firm that stands behind them. In choosing to do business with our team, you are also doing business with Raymond James. It is important that you understand how our affiliation with Raymond James benefits you by providing us with the tools and resources to execute our mission to serve clients to the best of our abilities.
RAYMOND JAMES AT A GLANCE Despite the financial turmoil of the past few years, Raymond James has delivered 98 consecutive quarters of profitability, reinforcing its reputation as a pillar of stability for our advisors and their clients. We believe that success has a lot to do with the firm s unwavering commitment to its founding core values of putting clients first, conservatism, independence and integrity. BY THE NUMBERS More than 10,000 associates worldwide Over 6,000 financial advisors Over 2,500 locations (United States, Canada and abroad) 2 million client accounts Approximately $375 billion in client assets Approximately $40 billion managed by our subsidiary asset managers STRENGTH AND STABILITY Earnings Per Share Trailing 10 Years 98 consecutive quarters of profitability 2011 Total Revenue By Business Unit HONORS AND ACCOLADES In March 2012, Fortune magazine ranked Raymond James Financial the fourth most admired securities company in the world for the second year in a row. The survey involved 698 companies from 32 countries. Judging was based on attributes such as quality of management, products, services and social responsibility. In May 2011, SmartMoney named Raymond James the best full-service broker in its 2011 Annual Broker Survey for the third time in four years. In fact, Raymond James was one of only two full-service brokers in the survey whose model portfolios beat the S&P 500. In April 2011, The Wall Street Journal ranked seven Raymond James analysts as Master Stock Pickers for 2010 as part of its 19 th annual Best on the Street survey. Updated 7/26/2012. The data provided is for informational purposes only and is not a solicitation to buy or sell Raymond James Financial stock. Past performance may not be indicative of future results. Please note that fees and charges will reduce an investor s return. Investing involves risk including the potential loss of capital. SmartMoney does not endorse any product or service of Raymond James. The survey criteria included performance of recommended stocks, customer satisfaction, and user-friendliness of account statements and websites. The S&P 500 is an unmanaged index of 500 widely held securities. An investment cannot be made directly in the index. Fortune magazine does not endorse any product or service of Raymond James. The Wall Street Journal does not endorse, sponsor or approve the investment programs of Raymond James. The Wall Street Journal survey identifies the top five analysts across various industry categories, basing the awards on stock-picking skill.
The Raymond James Advantage Raymond James: A Firm With Substantial Size Member of the Fortune 1000 Total client assets under administration over $375 billion* Asset management subsidiaries manage in excess of $40 billion* of financial assets for individuals, pension plans and municipalities. 3,500 support associates located in corporate locations Raymond James has more than 2,500 branch locations throughout the United States, Canada and overseas. The firm also maintains an array of affiliated international offices including Paris, Nice, Cannes, Brussels, Buenos Aires, Dusseldorf, Stuttgart, Luxembourg, Geneva, Lausanne, Istanbul and Montevideo. *As of 07/26/2012
The Raymond James Advantage Russell Advisory & Management (RAM) Account Protection Assets held within a Raymond James account are protected in three ways. The financial strength of Raymond James. Raymond James & Associates is a member of the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $100,000 for claims for cash). An explanatory brochure is available upon request, at sipc.org or by calling 202-371-8300. Raymond James has purchased excess SIPC coverage through various syndicates of Lloyd s, a London-based firm. Excess SIPC is fully protected by the Lloyd s trust funds and Lloyd s Central Fund. The additional protection currently provided has an aggregate firm limit of $750 million, including a sublimit of $1.9 million per customer for cash above basic SIPC for the wrongful abstraction of customer funds. Account protection applies when an SIPCmember firm fails financially and is unable to meet obligations to securities clients, but it does not protect against market fluctuations. 10/4/2012 26
Russell Johnson Russell Advisory & Management (RAM) Contact Information: First Vice President, Investments 561-997-9100 Toll-Free: 800-327-1055 russ.johnson@raymondjames.com www.ramadvisory.com Francesca Thorn Registered Client Services Associate Lead (561) 981-3680 Toll-Free: 800-327-1055 Francesca.thorn@raymondjames.com Tammy SanFilippo Registered Client Services Associate Gail Butler Registered Client Service Associate www.ramadvisory.com 10/4/2012 27