USF-NORTHWESTERN MUTUAL
FINANCIAL PLANNING
FEB 2021
BUILDING YOUR FINANCIAL PLAN
TEAMS
Group
1
Group
2
Group
3
Group
4
Group
5
Group
6
Group
7
Cook
Bordes
Reuther
Davenport
Johnson-Cruz
Sizemore
Chen
Toy
Longsworth
D'Aurora
Ryan
Zambrano
Watson
Cherradi
Steward
Martinez
Lewis
Callahan
Wadley
Everton
Kimble
Badolato
Lamaida
Merrill
Gornbein
Martin
Batat
Green
Dusseault
Villegas
Whitaker
Rizwan
Baptista
Davis
K Martinez
Roc
Roth
Al Busaidi
Sattori
Corkrean
• Office Hours (3 sessions ): My Financial Planning Team will be
available the following dates and times. The sessions are not
required, they are simply an opportunity for you to Zoom in
with questions that you and your team have once you have
had a chance to get together to discuss the case as a group .
DATES
• Session 1 of 3 (Wednesday, Feb 24th from 1-2PM):
https ://zoom.us/j/ 93553311758
• Session 2 of 3 (Thursday, March 4 th from 9 -10AM):
https ://zoom.us/j/ 98881897709
• Session 3 of 3 (Monday, March 15 th from 2 -3PM):
https ://zoom.us/j/ 97832115529
• Upload your Group Video Presentation to YouTube by Friday,
March 19 th (instructions on slide #6 )
• 3 Group Finalists announced week of March 22
nd
• 3 Group Finalists will be asked questions by Northwestern
Mutual’s leadership team and Dr. Tiller on Wednesday, March
24 th to determine a winning team!
1. Review th e ru b ric (slid e # 5) o n wh a t yo u will b e gra d e d o n .
PRESENTATION
GUIDELINES
2. Re fin e a n d p ra ctice yo u r p re se n ta tio n to d e live r a fin a n cia l p la n with
specific product recommendations to the clients in the form of a role
play (speaking to the clients as if they were in front of you). The
solidified
presentation should be creative, and entertaining, with
recommendations (using the template on slide #8) at the conclusion
of the presentation. ( e.g. what are you recommending the clients take
action on/implement )
3. Use the PX plan (emailed to you), FactFinder (emailed to you),
Buckets presentation - found here:
https://www.youtube.com/watch?v=whLFKd2MFeo , and NM Savings
Beliefs (slide #7) to draft your recommendations/create your video.
4. Prepare your materials and resources. Students may use laptop
computers, iPads, calculators, and other technology for the client
facing presentation.
5. Your client’s time is valuable, so all presentations will be timed.
Presentations are not to exceed 10 minutes in length.
JUDGING /
RUBRIC
1. Sign in to Yo u Tu b e . If yo u d o n o t h a ve a n a cco u n t, it ca n b e
cre a te d th ro u gh Go o gle .
UPLOADING
VIDEOS TO
YOUTUBE
2. At th e to p o f th e p a ge , click Up lo a d .
3. Se le ct Up lo a d Vid e o .
4. Se le ct th e vid e o yo u 'd like to u p lo a d fro m yo u r co m p u te r. Yo u
ca n a lso im p o rt a vid e o fro m Go o gle Ph o to s.
5. Se t th e vid e o p riva cy se ttin g to Pu b lic.
6. Se n d th e vid e o lin k to (d yla n .h a b e e b @n m .co m ) – (Su b je ct: USF
PX Ch a lle n ge – Te a m (e n te r te a m # )) by MARCH 19TH
Build emergency savings fund (3
-6 months of living expenses)
Take advantage of employer provided health insurance
Maximize personally owned disability insurance (to supplement employer provided coverage)
Maximize life insurance need via an appropriate mixture of term and permanent coverage
Protect the insurability of children by applying for permanent life insurance at a young age
NM-GTB
Savings
Beliefs
Protect
Meet with an attorney to create wills, health & financial POA, medical directives, & guardianships
Purchase long term care insurance in your 40’s/50’s
Meet with P&C agent to ensure current coverage is adequate (homeowner’s, auto, umbrella)
Review & update insurance and investment beneficiaries as needed
Pay extra each month on high interest credit cards
Optimize
Save a minimum of 20% of your income (60/20/20)
Create a detailed monthly budget that you follow
Take advantage of the full 401k match at work (or
other employer sponsored plan)
Request a free annual credit reports at www.annualcreditreport.com
Utilize www.nm.com to aggregate all outside accounts into one safe location
Dollar cost average & rebalance assets annually
Allocate assets according to your risk tolerance & diversify the tax treatment of your assets
Save for short -term goals in a safe/liquid account (bank account, conservative mutual funds)
Maximize Roth IRA contributions (if eligible)
Grow
Pre p a re d fo r
Ste p h e n & Mich e lle Do u gla s
Your Financial Plan Summary
Disability Insurance
Use these policies to protect a portion of your
income.
Life Insurance
Use these policies to offset your coverage
gap.
Investing, Saving, & Asset Allocation
Emergency Fund
Save x months of expenses ($x).
1.
1.
1.
1.
2.
2.
2.
2.
3.
3.
3.
3.
4.
4.
4.
4.
5.
5.
5.
5.
Debt Reduction
Create a paydown schedule.
Vincent & Gloria’s Education
Save $x in x account.
Estate Planning
Speak with an attorney to establish the
following.
Other Recommendations
1.
1.
1.
1.
2.
2.
2.
2.
3.
3.
3.
3.
4.
4.
4.
4.
5.
5.
5.
5.
Note: If more space is needed
use multiple copies
QUESTIONS?
Financial Planning Questions :
Trina Sessions (Financial Advisor)
Trina.b.sessions@nm.com
Logistical Questions :
Dylan Habeeb, CLU, ChFC, CFP (Financial Planning Dir.)
Dylan.habeeb@nm.com
Confidential Personal Questionnaire
Name: Stephen and Michelle Douglas
Date: 08/01/2020
Referred by:
Your Life Goals
When you think about your personal, professional and financial goals...
What would you like to accomplish in the next 3 years?
Stephen - become VP @ KPS
Michelle -- become director at Kays Marketing
Financial - Save for kid's college
In the next 4 - 10 years?
Pay for kids' college
Would like to pay off student loans if we could, especially before our kids start college.
In the next 10+ years?
Would love to have a lake home and boat someday
On a scale of 1 to 10, how important are the following goals to you and your family?
(10 being very important and 1 being not important)
NOTES
10
/10
Funding your child’s or your own education (p. 4)
10
/10
Funding a comfortable retirement (p. 5)
4
/10
Saving for personal goals (wedding, house, baby, business, etc.) (p. 6)
7
/10
Paying down debt (credit cards, student loans and mortgage) (p. 7)
6
/10
Providing for you and your family in the event of a disability (p. 10)
keep standard of living the same
8
/10
Providing for your family in the event of your death (p. 11)
keep standard of living the same
3
/10
Planning for long-term care needs (p. 12)
3
/10
Ensuring your estate settlement needs are addressed (p. 12)
7
/10
Evaluating your investment portfolio (p. 14)
same opportunity we had
Are there any other goals that are important to you?
Do we have enough insurance?
Your Life Goals
1
The Basics
Let’s get some basic information about you and your family.
INDIVIDUAL
PARTNER
M
F
Stephen R Douglas
Date of birth
March 26, Age 35
May 30, Age 35
Wisconsin
Wisconsin
Place of birth
Home Address
720 E Indianapolis Rd, Milwaukee, WI 53227
Do you currently own or rent your home?
OWN
RENT
sdouglas@gmail.com
Email
Phone
Relationship Status
M
F
Michelle K Douglas
Name
mdouglas@gmail.com
414-867-5309
SINGLE
MARRIED
Do you have or are you expecting any children?
CHILD’S NAME
Vincent
Are you planning to have more children?
ENGAGED
YES
LIVING TOGETHER
IN A RELATIONSHIP
WIDOW(ER)
NO
DOB
CHILD’S NAME
DOB
Feb 1, Age 5
Gloria
March 9, Age 2
YES
NO
How many?
Are there any special needs or considerations that relate to your children?
Tell me about your extended family (parents, grandparents, brothers, sisters). Their names, ages, living, working, married, etc.
INDIVIDUAL
PARTNER
Mother
Mary (62)
Betty (62)
Father
Peter (61)
James (64)
Siblings
Michael (31)
Kathy (38)
David (33)
Is there anyone you are supporting now, or will be in the future, who may affect your financial situation?
Who?
2
The Basics
YES
NO
Employment
Name of Employer
INDIVIDUAL
PARTNER
KPS Inc.
Kays Management
Manufacturing
Describe the nature of the business
Job title
How long have you worked there?
Project director
Marketing consultant
7 years
5 years
What are your specific job responsibilities?
Are you an owner?
YES
NO
YES
%
move up to VP
What are your future career plans?
NO
%
director of marketing
How do you spend your time away from
work? (clubs, hobbies, organizations...)
What other activities do you enjoy?
(rock climing, hang gliding, sky diving)
Now that we’ve covered some of your personal and professional information, let’s talk about your financial situation.
Savings Philosophy
What’s the most important lesson you’ve learned about money (from your family, your own experience, school, etc.)?
"Save as much as you can" - We could use help saving more consistently
What are you most proud of when it
comes to your money?
Do you consider yourself a disciplined saver?
How do you approach savings today?
INDIVIDUAL
PARTNER
Paying down loans quickly
Starting 529 plans for kids
YES
NO
YES
SPEND FIRST, SAVE
WHAT’S LEFTOVER
SAVE FIRST, SPEND
WHAT’S LEFTOVER
NO
OTHER: He saves, She spends
What would help you save more money? a plan to stick to
Who manages the finances and makes the financial decisions for your family?
INDIVIDUAL
PARTNER
JOINT
Emergency Savings
Having emergency savings means being able to handle a job loss or a medical bill without having to rely on a credit card. Think of it as
your insurance policy against future credit card debt.
Do you have any money set aside for emergencies?
YES
NO
45,000
If yes, how much? $
In what type of account? savings and CDs
How much do you contribute?
$ What's left over
How often?
nothing regularly
*We typically recommend 3 to 9 months of household expenses. We can get into the specifics for you when we build your plan.
Employment / Savings
3
Education
Tell me about your educational background? (schools, major/minor) both BS degrees from Purdue
Are you an active alumni?
YES
How did you fund your own education? S-scholarships and loans M-parents
NO
Are you and your partner currently in school? no
Do you or your partner have plans to go back to school?
YES
NO
If Yes, what type of school?
% TO COVER
COLLEGE
FULL-TIME
POST GRAD
INDIVIDUAL
PUBLIC
PRIVATE
LAW
MBA
MED
OTHER
YES
NO
PARTNER
PUBLIC
PRIVATE
LAW
MBA
MED
OTHER
YES
NO
%
%
*If client has started saving, add these accounts to the table below.
Children’s Education Goals
Do you have any specific plans regarding your child(ren)’s future education?
we want to cover $15,000/year
Are your children enrolled or do you plan to enroll your children in private school (K-12)?
YES
NO
If yes, what is the annual cost per child?
What type of college or university do you want to send them to?
CHILD’S NAME
COLLEGE
Vincent
Gloria
POST GRAD
% TO COVER
PUBLIC
PRIVATE
PUBLIC
PRIVATE
PUBLIC
PRIVATE
% TO COVER
100
%
LAW
MBA
MED
OTHER
100
%
LAW
MBA
MED
OTHER
%
LAW
MBA
MED
OTHER
100
%
100
%
%
When you think of the cost of education, what do you want your plan to include? (tuition, room and board, cost of living, books)
Tuition and books - we want to help them as much as we can but not sure we'd be able to afford a private school
Have you started saving for education?
ACCOUNT TYPE
YES
NO
BENEFICIARY
CURRENT VALUE
MONTHLY CONTRIBUTION
OWNER
529 Plan
Vincent
$ 4,000
$ 200
IND
PARTNER
JOINT
529 Plan
Gloria
$ 4,000
$ 200
IND
PARTNER
JOINT
$
$
IND
PARTNER
JOINT
$
$
IND
PARTNER
JOINT
Are there any special considerations that might have an impact on the circumstances of your child(ren)’s education? (Additional
skills or talents? Special needs or disabilities? Prior marriages?)
4
Education
Retirement
How do you feel about your current plans for retirement?
CONFIDENT
At what age do you want to retire? INDIVIDUAL: 65
PARTNER:
NEUTRAL
OVERWHELMED
65
Many of my clients would like to at least maintain their current lifestyle in retirement, is this important to you?
YES
NO
If no, what do you expect will change?
8,000
How much monthly after-tax income is needed to support that lifestyle?
What do you see yourself doing in retirement? (Volunteering, Traveling, Part-Time Work?) travel, coaching, time with grandkids
If planning to work: IND INCOME $
Have you started saving for retirement?
OWNER
PTR INCOME $
YEARS:
YES
YEARS:
NO
ACCOUNT TYPE
CURRENT
VALUE
EMPLOYEE
CONTRIBUTION
4
EMPLOYER
CONTRIBUTION
$
%
$
ROTH
$
%
Y
N
%
$
%
Y
N
$
%
$
%
Y
N
$
$
%
$
%
Y
N
PARTNER
$
$
%
$
%
Y
N
IND
PARTNER
$
$
%
$
%
Y
N
IND
PARTNER
$
$
%
$
%
Y
N
IND
PARTNER
$
$
%
$
%
Y
N
IND
PARTNER
$
$
%
$
%
Y
N
IND
PARTNER
$
$
%
$
%
Y
N
IND
PARTNER
401(k)
$ 70,000
IND
PARTNER
IRA
$ 45,000
IND
PARTNER
401k
$ 50,000
IND
PARTNER
401k
IND
Tell me about all the retirement options
your employer has available to you (Roth,
Traditional, Simple, Profit Sharing, etc)
Maximum company match
offered by employer:
4
2
INDIVIDUAL
PARTNER
traditional 401k
traditional 401k
50
4
% of
contributions
up to
0
% of
your salary
% of
your salary
% of
contributions
up to
Defined Benefit Pensions
Does your employer provide a defined benefit plan/pension?
YES
NO
PAYOUT AT RETIREMENT
DESCRIPTION
PAYMENT
BEGIN AGE
% OF FINAL
SALARY
COST OF
LIVING
$ AMOUNT
PAYOUT TO
SURVIVOR
INDIVIDUAL
%
$
MO.
ANN.
LS.
%
%
Y
N
PARTNER
%
$
MO.
ANN.
LS.
%
%
Y
N
Note: Obtain the employee benefits booklet
How would these benefits change if you were unable to work or died prematurely? (no payout, different payout amount, etc)
not sure
How would you fund your retirement if you were disabled or chronically ill?
we probably couldn't save like we do now
Retirement
5
Personal Savings Goals and Assets
Now that we’ve covered retirement and education savings, let’s look at the other goals we talked about earlier and discuss
how you’re putting money toward them.
GOAL NAME
TARGET YEAR
TARGET AMOUNT
Before Ret?
Not sure
AMOUNT SAVED
ANY HELP EXPECTED?
Buy a Home
Custom Savings
Grow Your Family
Save for a Wedding
Start a Business
Buy a lake home and boat
Let’s capture all the other accounts you’re using right now.
CONTRIBUTION
FREQUENCY
CURRENT VALUE
AMOUNT
Checking
$
$
= to current value
IND
PARTNER
JOINT
Savings
$ 20,000
$
= to current value
IND
PARTNER
JOINT
Brokerage
$ 30,000
$
$
IND
PARTNER
JOINT retirement
CDs
$ 25,000
$
$
IND
PARTNER
JOINT emergency fund
Mutual Fd
$ 60,000
$ 500
$
IND
PARTNER
JOINT retirement
$
$
$
IND
PARTNER
JOINT
$
$
$
IND
PARTNER
JOINT
$
$
$
IND
PARTNER
JOINT
month
COST BASIS
EARMARK TO GOAL/AMOUNT
or % ALLOCATED TO GOAL
TYPE
OWNER
Do you have a broker or someone to whom you turn for financial advice? no, just credit union staff
What have you liked most about your previous investment experience? personal and friendly
What have you liked least about your previous investment experience? no real relationship
Personal / Business
Tell me about any other assets you own.
CURRENT
VALUE
PURCHASE
PRICE
Residence
$ 475,000
$
IND
PARTNER
JOINT
Y
N
Y
N
%
Auto
$ 30,000
$
IND
PARTNER
JOINT
Y
N
Y
N
%
Personal Property
$
$
IND
PARTNER
JOINT
Y
N
Y
N
%
Business Interest
$
$
IND
PARTNER
JOINT
Y
N
Y
N
%
$
$
IND
PARTNER
JOINT
Y
N
Y
N
%
6
Personal Savings Goals and Assets
OWNER
SELL AT
DEATH?
SELL AT
RETIREMENT?
DESCRIPTION
GROWTH
RATE?
Liabilities
If you can share the details about your current debts, we can determine how best to pay them down.
Do you happen to know your credit score?
YES
Score:
NO
If no, would you describe it as:
GOOD
BAD
Credit Cards with a Running Balance*
INSTITUTION
BALANCE
INTEREST RATE
APPROXIMATE PAYMENT
OWNER
$
$
%
IND
PARTNER
JOINT
$
$
%
IND
PARTNER
JOINT
$
$
%
IND
PARTNER
JOINT
$
$
%
IND
PARTNER
JOINT
*Only provide credit cards that are not paid in full each month.
How concerned are you about paying down this debt?
NOT AT ALL
MODERATELY
VERY
Target Year for Paydown:
Home Loans and Mortgages
BALANCE
MIN. PAYMENT
$ 335,000
$ 1,800
$
$
INTEREST RATE
4 %
PROPERTY NAME
OWNER
Indianapolis Rd
IND
PARTNER
JOINT
IND
PARTNER
JOINT
%
Does your mortgage payment include escrow for taxes and insurance?
Annual Property Tax $
7,200
YES
Annual Homeowners Insurance $
How concerned are you about paying down this debt?
NOT AT ALL
NO
1,200
MODERATELY
VERY
Target Year for Paydown:
Student Loans
BALANCE
MIN. PAYMENT
$ 15,000
$ 200
$
INSTITUTION
REPAYMENT
PLAN
OWNER
INTEREST
RATE
TYPE
5 %
FED
PRIVATE
STD
IBR
IND
PARTNER
JOINT
$
%
FED
PRIVATE
STD
IBR
IND
PARTNER
JOINT
$
$
%
FED
PRIVATE
STD
IBR
IND
PARTNER
JOINT
$
$
%
FED
PRIVATE
STD
IBR
IND
PARTNER
JOINT
Student loan type (federal or private) will determine loan forgiveness at death and may offer different repayment plans. (Standard, Income Based Repayment)
How concerned are you about paying down this debt?
NOT AT ALL
MODERATELY
VERY
Target Year for Paydown:
2025?
Other Loans (Auto, Personal, Medical)
TYPE
INTEREST RATE
BALANCE
MIN. PAYMENT
$
$
%
IND
PARTNER
JOINT
$
$
%
IND
PARTNER
JOINT
$
$
%
IND
PARTNER
JOINT
$
$
%
IND
PARTNER
JOINT
How concerned are you about paying down this debt?
ORIGINATION DATE
NOT AT ALL
MODERATELY
OWNER
VERY
Target Year for Paydown:
Liabilities
7
Income
PARTNER
INDIVIDUAL
Now let’s discuss how you are compensated and how that income supports the lifestyle you live today.
TYPE
ANNUAL
GROSS
PAYCHECK
FREQUENCY*
TAKE-HOME PAY
SALARY
$ 100,000
BONUS
$
$
$
$
$
2x month
6000/mo
$
SALARY
$ 75,000
BONUS
$
$
$
$
2x month
DATE LAST
RECEIVED
4500/mo
*Frequency Options: Twice per month (24x a year), Every other week (26x), Weekly (52x), Monthly (12x), Annually, Semiannually, Quarterly, Daily, Once
ADDITIONAL INCOME
TYPE*
EARNER
ANNUAL GROSS
FREQUENCY
IND
PARTNER
JOINT
$
$
IND
PARTNER
JOINT
$
$
IND
PARTNER
JOINT
$
$
IND
PARTNER
JOINT
$
$
*Income Types: Gifts, Rental Income, Child Support, Alimony,
Scholarship, Severance, Social Security, DI, LTC
TOTAL MONTHLY TAKE-HOME PAY
ANTICIPATED END DATE
TAKE HOME PAY
$
10,500.00
Do you anticipate any significant changes in your total income in the future? Any specific plans for that income?
no
Are you working with an accountant or CPA?
Do you normally receive a tax refund?
How do you file your taxes?
YES
YES
SINGLE
Name of Person / Firm:
NO
How much? $
NO
MARRIED FILING JOINTLY
Inheritance
MARRIED FILING SEPARATELY
INDIVIDUAL
Are you or your partner anticipating any inheritance?
HEAD OF HOUSEHOLD
PARTNER
YES
NO
YES
NO
YES
NO
YES
NO
If yes, how much and when is it expected?
Social Security
Are you currently paying into the Social Security system?
Some of my clients who are more than 10 years away from retirement prefer to use a more conservative estimate of Social Security
benefits in their plan.
What percentage of currently calculated benefits would you feel comfortable using in your plan?
100%
When do you anticipate taking Social Security?
LATE -70
8
Income
EARLY -62
FULL RETIREMENT AGE (FRA)
75%
50%
Monthly Expenses
We’ve talked about your current savings contributions & debt payments, so let’s talk about where else your money is going.
$ 8,500.00
What is your total monthly spending?
How would that break down between fixed expenses $ 5000
and discretionary spending $ 3500
?
Not sure? Would you find it helpful to itemize how you spend your income each month throughout the year?
Housing
Monthly Amount
Transportation
Mortgage/Rent
$ 1,800
Auto Payment
Homeowner’s/Renter’s Insurance (p.7)
Property Taxes (p.7)
Home Maintenance
$ 100
$ 600
$ 100
Utilities
$ 250
Cable/Internet
$ 100
$ 150
$ 500
Phone
Groceries
Auto Insurance
Car Maintenance
Parking/Tolls
Bus/Train
Gas
Monthly Amount
$
$ 150
$ 50
$ 100
$
$ 100
$
$
Personal
Monthly Amount
Health Care/Insurance
Monthly Amount
Domestic Help
$ 50
Health Insurance
$
Dependent/Child Care
Tuition
Charitable Donations
Gym
Subscriptions
Student Loans
$ 600
$
$
$ 100
Co-pays/Prescriptions
Disability Income Insurance
Long-term Care Insurance
$
$ 50
$
$
$
$
$ 200
$
Discretionary
Monthly Amount
Restaurants/Dining
$ 1000
Groceries
Gas
Clothing
Entertainment
Travel
Gifts
Fun Money
$
$
$
$
$
$ 250
$
$
Fixed Expenses
9
Disability Income Insurance
At the end of the day, your most valuable asset is your ability to earn an income. Disability income insurance replaces a
portion of your income if an illness or injury prevents you from working.
Tell me about your existing disability income insurance coverage (employer provided and/or personally owned.)
PREMIUM
PROVIDED MONTHLY
BY
BENEFIT
PARTNER
INDIVIDUAL
(% OR $)
Employer
BEGIN
DATE
BENEFIT
PERIOD
(DAYS/WEEKS/
YEARS)
(WEEKS/YEARS)
60%
to age 65
Personal
Employer
none
Personal
EMPLOYER AMOUNT
PAID
FREQ
COMPANY
MAX.
MONTHLY
BENEFIT
INCLUDES
BONUS/
COMMISSIONS
$
Y
N
$
$
Y
N
Y
N
$
$
Y
N
Y
N
$
$
Y
N
Y
N
$
Y
N
ABC Life
Note: Obtain the employee benefits booklet (Many plans cover less than 70 percent of salary, may exclude bonus and commission, may be taxable, do
not protect against inflation, and can be restrictive.)
How do you feel about your existing disability income insurance coverage?
CONFIDENT
Is it reasonable to assume that if you were sick or injured and unable to work, your
family would want to maintain the same lifestyle as you have today?
YES
NEUTRAL
NO
Health
How is your health?
Have you used tobacco or any form of
nicotine in the past three years?
Do you have any health concerns that
might impact your plan?
How do you feel about your current
health insurance coverage?
Tell me about your coverage?
(Group, individual)
How would this coverage change in the
event of disability or death?
10
Disability Income / Health
INDIVIDUAL
PARTNER
good
good
YES
NO
YES
NO
OVERWHELMED
Life Insurance
Another type of insurance that is essential to your family’s financial security is life insurance. Life insurance helps cover final expenses,
paying off large debts, and making sure your loved ones can live the life you’ve planned for in the event of your passing.
What are your thoughts about life insurance in general?
Important to have
Tell me about your existing life insurance coverage (employer provided and/or personally owned):
PARTNER
INDIVIDUAL
PREMIUM
PROVIDED
BY
DEATH
BENEFIT
TYPE
Employer
$ 200,000
term
$
$
Personal
$ 500000
term
$
$ 300
Employer
$
$
$
Personal
$ 500000
$
$ 260
$
$
$
$
$
$
(PERM/TERM)
*CASH VALUE
AMOUNT
FREQ INCREASING? PAYOR
COVERAGE
CEASES
BENEFICIARY
retirement
Michelle
(DATE)
Term
KPS
yr
Michelle
/yr
Stephen
*Only applicable to perm policies.
How did you determine your current amount of coverage?
To cover the mortgage on our house, plus a little extra
The amount of life insurance you own isn’t neccessarily right or wrong unitl you compare it to what you would want to happen if you
didn’t make it home today.
What would you want to have happen if:
Final Expenses
YOU DIE
YOUR PARTNER DIES
$ 50,000.00
$ 50,000.00
$ 350,000.00
$ 350,000.00
$ 400,000.00
$ 400,000.00
$ 120,000.00
$ 120,000.00
What amount would you need to cover final
expenses like: (Funeral Expenses, Readjustment,
Emergency Fund)?
Plus Debt
Total Final Expenses:
Education
(annual cost X # of years X # of children)
Lifestyle
If you passed, is it fair to assume that your family would want to maintain your current lifestyle?
Present Value of Survivor’s Income (from grid)
Total Need for Capital (A+B+C-D)
NO
$ 6,500.00
$ 6,500.00
$ 2,790,035.00
$ 2,790,035.00
$ 1,274,348.00
$ 1,699,131.00
$ 2,035,687.00
$ 1,610,904.00
Monthly Income Need
Present Value of Income Need (from grid)
YES
How do you feel about this number? it's a big number but it's important to address
You may have existing insurance, assets, or income to offset this need. The plan we create will help determine the exact amount of life
insurance you need.
Do you agree you probably will need more life insurance?
YES
NO
Life Insurance
11
Long-term Care
Tell me about your current long-term care insurance coverage (employer provided and/or personally owned):
PARTNER
INDIVIDUAL
BENEFIT
PREMIUM
FREQ WAITING
PERIOD
PROVIDED
BY
AMOUNT
Employer
$ none
$
%
%
Personal
$
$
%
%
Employer
$ none
$
%
%
Personal
$
$
%
%
(DAYS/WEEKS/YEARS)
BENEFIT
PERIOD
COMPANY
AMOUNT
BENEFIT INDEX
FREQ PRE LTC
(DAYS/WEEKS/YEARS)
DURING
LTC
When you hear or think about long-term care risk, what is your feeling or opinion about it?
not sure
Have you ever known someone who needed long-term care? How did it affect their family and finances?
Stephen's grandparent had alzheimers. it was a lot of work for the family.
How would a long-term care event impact your plans for retirement?
would really effect us, cost could drain us.
If you or a loved one becomes ill or injured and needs long term care, who might be able to care for you? (Children, sibling) Who
might you have to care for during retirement? (Parent, sibling, child, person with special needs?)
Estate Planning Considerations
Have you done any planning regarding your incapacitation or death?
YES
NO
Which of these tool or strategies are you currently using? Select all that apply.
HEALTHCARE POA
TRUST
LAST WILL AND TESTAMENT
LIVING WILL
BENEFICIARY DESIGNATIONS
TRANSFER ON DEATH / PAYABLE ON DEATH
Who did you complete this planning with? (Attorney / Firm)
Who is the guardian of your children?
Why?
Who did you designate as the
executor of your estate?
Why?
12
Michelle's cousin
Long-Term Care / Estate Planning
Discovery Agreement
To achieve your goals, you need to decide how much you’re willing to spend vs. save each month.
$
10,500.00
MONTHLY TAKE-HOME PAY (P.8)
$ 8,500.00
2,000.00
$
MONTHLY EXPENSES (P.9)
AVAILABLE DOLLARS FOR GOAL COMMITMENT
*This is an estimate of the money you have to spend or save towards your goals each month, including your current contributions.
My goal is to recommend some solutions that will help you accomplish the goals most important to you and that make sense
within your budget.
2000 -incl. what we're already doing
What amount of money would you be willing to commit to your goals on a monthly basis?
$
Based on the discussions we’ve had today, have any of your goals changed in importance? (Go back to p. 1)
Next Appointment
Phone:
Date: same day next week
Preferred Email:
Time: same time
What are your expectations of me? highest level of trust
Place: my office
Here are my expectations of you: trust, communications
Favorable Introductions
How did you feel when I first called you to set this appointment?
Now that you’ve seen the process to this point, how do you feel about it? Why?
Who do you know that might benefit from going through this process?
REFERRALS
CONTACT INFO (CELL PHONE OR EMAIL)
RELATIONSHIP
1.
Tom Smith
317-555-8211
went to school with
2.
Jim Davidson
317-555-3690
son's school
3. Harley Michaels
317-555-8485
neighbor
Paul Richardson
317-555-3899
golf buddy
4.
OCCUPATION
RE Agent
5.
6.
Who do you know that is looking for a new career opportunity?
Discovery Agreement / Next Appointment / Favorable Introductions
13
Investor Profile
How comfortable are you with the topic of investing?
Tell me about the best financial decision you’ve ever made.
Tell me about the worst financial decision you’ve ever made.
1.
What is your primary goal for these invested assets?
-14
PRESERVATION
OF PRINCIPAL
2.
9
GROWTH WITH
SOME INCOME
11
CAPITAL APPRECIATION
AND GROWTH
3
3 TO 5 YEARS
6
5 TO 10 YEARS
9
10 TO 20 YEARS
11
MORE THAN 20 YEARS
Once you have reached that point where you would like to take withdrawals from these assets, how long will
you be making withdrawals from this investment?
1
ONE-TIME LUMP
SUM DISTRIBUTION
4.
6
INCOME WITH
SOME GROWTH
How many years do you plan to invest these assets before you anticipate making withdrawals?
-14
LESS THAN 3 YEARS
3.
3
GENERATE
INCOME
3
3 TO 5 YEARS
6
5 TO 10 YEARS
9
10 TO 20 YEARS
11
MORE THAN 20 YEARS
At times, extremely conservative investments may earn less than the rate of inflation. This may result in the
loss of purchasing power. Which of the following statements best aligns with your goals and objectives?
1 1 This is a long-term investment and my goal is to significantly exceed the rate of inflation. I am
willing to accept considerable risk and substantial market volatility to achieve this goal.
9 Over time, I can ignore fluctuations in investment value to achieve my
goal of meaningful growth and exceeding the rate of inflation.
6 It is important that these investments match or exceed the rate of inflation. I am
comfortable with moderate fluctuations in the value of these investments.
3 I am willing to tolerate small fluctuations in principal value to allow for the
opportunity of my investments to grow at the same rate of inflation.
-14 These assets should be safe, even if it means the returns do not keep pace with the rate of inflation.
14
Investor Profile
5.
Carefully consider the following hypothetical portfolios. Which portfolio would you be comfortable owning despite the
potential of short-term volatility and decrease in value?
HYPOTHETICAL PORTFOLIOS
WORST 3-MONTH RETURN
WORST 12-MONTH RETURN
AVERAGE ANNUAL RETURN
1
PORTFOLIO A
-7%
-7%
5.0%
3
PORTFOLIO B
-14%
-18%
5.5%
6
PORTFOLIO C
-19%
-25%
6.0%
9
PORTFOLIO D
-24%
-33%
6.5%
11
PORTFOLIO E
-35%
-47%
7.5%
These are hypothetical portfolios and are not meant to be representative of any investment or investment strategy.
6.
The degree in which the value of an investment increases and decreases is one measure of risk. More volatile
investments generally offer greater long-term growth potential than less volatile investments; however, they may
produce greater losses. With how much volatility are you comfortable?
-14 I’M NOT COMFORTABLE WITH ANY VOLATILITY.
3 I PREFER TO MINIMIZE VOLATILITY AND FOCUS ON STABILITY.
6 I DON’T MIND MODEST VOLATILITY TO CREATE A POTENTIAL FOR GROWTH.
9 I’M COMFORTABLE WITH MODERATE VOLATILITY TO INCREASE POTENTIAL RETURNS.
11 I EXPECT SUBSTANTIAL VOLATILITY IN PURSUIT OF HIGHER RETURNS.
7.
Other secure assets that I own, such as permanent cash value life insurance, personal savings accounts, pension,
and fixed income assets, form a substantial portion of my net worth and should be taken into consideration when
determining my asset allocation.
1
STRONGLY DISAGREE
8.
6
NEUTRAL
9
AGREE
11
STRONGLY AGREE
I believe the stability of my current and future income sources (not including these investments) is:
11
VERY STABLE
9.
3
DISAGREE
9
STABLE
6
SOMEWHAT STABLE
3
UNSTABLE
1
VERY UNSTABLE
If you could increase the opportunity to improve your returns by investing in riskier assets, would you be willing to take:
-4 A small amount of risk with some of your money
3 A small amount of risk with most of your money
6 A moderate amount of risk with some of your money
9 A moderate amount of risk with most of your money
11 Substantial risk with all of your money
Only Registered Representatives of Northwestern Mutual Investment Services,
LLC are authorized to collect information on the Risk Tolerance.
Investor Profile
15
10. Carefully consider the following hypothetical returns of a three year investment.
With which portfolio are you most comfortabe?
$100,000 INVESTMENT
WORST CASE IN THREE YEARS
BEST CASE IN THREE YEARS
1
Portfolio A
$110,000
$165,000
3
Portfolio B
$105,000
$170,000
6
Portfolio C
$100,000
$175,000
9
Portfolio D
$85,000
$185,000
11
Portfolio E
$70,000
$200,000
These are hypothetical portfolios and are not meant to be representative of any investment or investment strategy.
11. What best describes your philosophy and strategy towards investing?
1 1 I am unaffected by short-term market movements and stay focused on my long-term
strategy of capital appreciation and growth
9 Although I may have some concerns, I am typically a very patient investor with a
wait and see attitude in regards to my long-term growth strategy
6 I can get anxious during market swings and at times may change my strategies because of this
-4 I am uncomfortable with market volatility, which is why I typically focus on
preservation of capital and current income
3 I have never invested
SCORE
1 6
TOTAL SCORE:
81
2 11
3 11
Compare your total score to the risk profile ranges.
4 11
5 6
RANGE OF SCORES
RISK PROFILE
6 6
-59 to 22
Conservative
7 3
23 to 54
Moderately Conservative
8 9
55 to 84
Balanced
9 6
85 to 109
Aggressive
10 3
110 to 121
Very Aggressive
11 9
TOTAL 81
RISK PROFILE:
Are there any investments you would like to know more about?
mid-term saving for college
16
Investor Profile
Notes
Notes
17
Your Income as an Asset
(Based on 6% Investment Return and 20% Effective Tax Rate)
ANNUAL NET INCOME
(AFTER TAX, IN TODAY’S TODAYS, ASSUMING 3% INFLATION)
YEARS OF INCOME
18
MO.
ANN.
5
10
15
20
25
30
$1,500
$18,000
$86,961
$166,706
$239,834
$306,894
$368,389
$424,782
$2,000
$24,000
$115,948
$222,274
$319,779
$409,192
$491,186
$566,376
$2,500
$30,000
$144,935
$277,843
$399,723
$511,490
$613,983
$707,971
$3,000
$36,000
$173,922
$333,412
$479,668
$613,788
$736,779
$849,565
$3,500
$42,000
$202,909
$388,981
$559,613
$716,086
$859,576
$991,159
$4,000
$48,000
$231,896
$444,549
$639,558
$818,385
$982,373
$1,132,754
$4,500
$54,000
$260,883
$500,119
$719,503
$920,683
$1,105,170
$1,274,348
$5,000
$60,000
$289,870
$555,687
$799,448
$1,022,981
$1,227,966
$1,415,942
$5,500
$66,000
$318,857
$611,256
$879,392
$1,125,279
$1,350,763
$1,557,536
$6,000
$72,000
$347,844
$666,825
$959,337
$1,227,577
$1,473,560
$1,699,131
$6,500
$78,000
$376,831
$722,394
$1,039,282
$1,329,876
$1,596.356
$1,840,725
$7,000
$84,000
$405,818
$777,962
$1,119,227
$1,432,174
$1,719,153
$1,982,319
$7,500
$90,000
$434,805
$833,531
$1,199,172
$1,534,472
$1,841,949
$2,123,913
$8,000
$96,000
$463,792
$889,100
$1,279,116
$1,636,770
$1,964,746
$2,265,507
$8,500
$102,000
$492,779
$944,669
$1,359,061
$1,739,068
$2,087,543
$2,407,102
$9,000
$108,000
$521,766
$1,000,237
$1,439,006
$1,841,366
$2,210,339
$2,548,696
$9,500
$114,000
$550,753
$1,055,806
$1,518,951
$1,943,664
$2,333,136
$2,690,290
$10,000
$120,000
$579,740
$1,111,375
$1,598,895
$2,045,962
$2,455,933
$2,831,884
$11,000
$132,000
$637,714
$1,222,512
$1,758,785
$2,250,559
$2,701,526
$3,115,073
$12,000
$144,000
$695,688
$1,333,650
$1,918,674
$2,455,155
$2,947,119
$3,398,261
$13,000
$156,000
$753,662
$1,444,787
$2,078,564
$2,659,751
$3,192,712
$3,681,450
$14,000
$168,000
$811,636
$1,555,925
$2,238,453
$2,864,347
$3,438,306
$3,964,638
$15,000
$180,000
$869,610
$1,667,062
$2,398,343
$3,068,944
$3,683,899
$4,247,826
$16,000
$192,000
$927,584
$1,778,200
$2,558,233
$3,273,540
$3,929,492
$4,531,015
$17,000
$204,000
$985,558
$1,889,337
$2,718,122
$3,478,136
$4,175,085
$4,814,203
$18,000
$216,000
$1,043,533
$2,000,475
$2,878,012
$3,682,732
$4,420,679
$5,097,392
$19,000
$228,000
$1,101,507
$2,111,612
$3,037,901
$3,887,328
$4,666,272
$5,380,580
$20,000
$240,000
$1,159,481
$2,222,750
$3,197,791
$4,091,925
$4,911,865
$5,663,768
Your Income as an Asset
40
45
50
55
60
65
70
$476,496
$523,918
$567,405
$607,284
$643,854
$677,389
$708,141
$736,342
$635,328
$698,557
$756,540
$809,712
$858,472
$903,185
$944,189
$981,790
$794,160
$873,197
$945,676
$1,012,140
$1,073,090
$1,128,982
$1,180,236
$1,227,237
$952,992
$1,047,836
$1,134,811
$1,214,568
$1,287,708
$1,354,778
$1,416,283
$1,472,685
$1,111,824
$1,222,476
$1,323,946
$1,416,997
$1,502,326
$1,580,575
$1,652,331
$1,718,133
$1,270,656
$1,397,116
$1,513,082
$1,619,425
$1,716,944
$1,806,372
$1,888,379
$1,963,581
$1,429,488
$1,571,755
$1,702,217
$1,821,853
$1,931,563
$2,032,168
$2,124,426
$2,209,028
$1,588,320
$1,746,394
$1,891,352
$2,024,281
$2,146,181
$2,257,965
$2,360,473
$2,454,476
$1,747,152
$1,921,034
$2,080,487
$2,226,710
$2,360,799
$2,483,761
$2,596,521
$2,699,923
$1,905,984
$2,095,673
$2,269,623
$2,429,138
$2,575,417
$2,709,558
$2,832,568
$2,945,371
$2,064,816
$2,270,313
$2,458,758
$2,631,566
$2,790,035
$2,935,354
$3,068,615
$3,190,819
$2,223,648
$2,444,952
$2,647,893
$2,833,994
$3,004,653
$3,161,151
$3,304,663
$3,436,266
$2,382,480
$2,619,592
$2,837,028
$3,036,422
$3,219,271
$3,386,947
$3,540,710
$3,681,714
$2,541,312
$2,794,231
$3,026,163
$3,238,850
$3,433,889
$3,612,744
$3,776,757
$3,927,161
$2,700,144
$2,968,871
$3,215,299
$3,441,278
$3,648,507
$3,838,540
$4,012,805
$4,172,609
$2,858,976
$3,143,510
$3,404,434
$3,643,707
$3,863,125
$4,064,337
$4,248,852
$4,418,057
$3,017,808
$3,318,149
$3,593,569
$3,846,135
$4,077,743
$4,290,133
$4,484,899
$4,663,504
$3,176,640
$3,492,789
$3,782,704
$4,048,563
$4,292,361
$4,515,930
$4,720,947
$4,908,952
$3,494,304
$3,842,068
$4,160,975
$4,453,419
$4,721,597
$4,967,522
$5,193,041
$5,399,847
$3,811,968
$4,191,347
$4,539,245
$4,858,276
$5,150,833
$5,419,115
$5,665,136
$5,890,742
$4,129,632
$4,540,626
$4,917,515
$5,263,132
$5,580,070
$5,870,708
$6,137,231
$6,381,637
$4,447,296
$4,889,904
$5,295,786
$5,667,988
$6,009,306
$6,322,301
$6,609,325
$6,872,532
$4,764,960
$5,239,183
$5,674,056
$6,072,844
$6,438,542
$6,773,894
$7,081,420
$7,363,428
$5,082,624
$5,588,462
$6,052,327
$6,477,701
$6,867,778
$7,225,487
$7,553,515
$7,854,323
$5,400,288
$5,937,741
$6,430,597
$6,882,557
$7,297,014
$7,677,080
$8,025,609
$8,345,218
$5,717,952
$6,287,020
$6,808,868
$7,287,413
$7,726,250
$8,128,673
$8,497,704
$8,836,113
$6,035,616
$6,636,299
$7,187,138
$7,692,270
$8,155,486
$8,580,266
$8,969,798
$9,327,008
$6,353,280
$6,985,578
$7,565,408
$8,097,126
$8,584,722
$9,031,859
$9,441,893
$9,817,903
The Northwestern Mutual Life Insurance Company, Milwaukee, WI
35
Your Income as an Asset
19
Copyright © 2019 The Northwestern Mutual Life
Insurance Company. All Rights Reserved.
This document is for internal use only, not for general
distribution. This document is designed to gather
information and assess a client’s financial background,
not to solicit the sale of any specific financial product.
Northwestern Mutual is the marketing name for The
Northwestern Mutual Life Insurance Company (NM),
Milwaukee, WI (life and disability insurance, annuities,
and life insurance with long-term care benefits) and
its subsidiaries.
Securities are offered through Northwestern Mutual
Investment Services, LLC, (NMIS) a subsidiary of NM,
broker-dealer, registered investment adviser, member
FINRA and SIPC.
Fiduciary and fee-based financial planning services
are offered through Northwestern Mutual Wealth
Management Company® (NMWMC), Milwaukee, WI, a
subsidiary of NM and federal savings bank.
The products and services referenced are offered and
sold only by appropriately appointed and licensed
entities and representatives of such entities. Each
Financial Representative represents one or more, but
not necessarily all of the entities shown.
The Northwestern Mutual Life Insurance Company
is neither a registered investment adviser nor a
registered broker-dealer.
The Northwestern Mutual Life Insurance Company •
Milwaukee, WI www.northwesternmutual.com
24-3832-08
Rev (0619)
The Northwestern Mutual Life Insurance Company (Northwestern Mutual)
Your Financial Plan
Stephen & Michelle Douglas
Young Family Sample Plan
August 6, 2020
George Acord
© 2020 Northwestern Mutual. All rights reserved.
This plan is not complete without the Disclosure pages appearing at the end.
23 0410 01 (05/20)
Douglas Sample 8-20 v1
Prepared for
2
Stephen & Michelle Douglas
Your Representative
Together, we'll create an
actionable, realistic plan that
gives you financial security
while helping you build the
life you want.
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
Prepared for
3
Stephen & Michelle Douglas
Table of Contents
Summary of Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Retirement Scenario Comparison . . . . . . . . . . . . . . . . . . . . . . . . .31
A Recap of the Facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Retirement Income Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . .32
Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Retirement Income Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Your 2020 Cash Flow Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Retirement Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Our Planning Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Retirement Strategy Breakdown (Current Path) . . . . . . . . . . . .36
Goals Timeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Supplement Retirement Income in Down Markets . . . . . . . . . . 37
Your Financial Plan Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
How We Approach Asset Allocation . . . . . . . . . . . . . . . . . . . . . . 38
Protect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
Asset Class Annual Performance . . . . . . . . . . . . . . . . . . . . . . . . . 39
Understanding Your Earning Potential . . . . . . . . . . . . . . . . . . . . .12
Focus on the Long Term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
The Financial Impact of a Disability . . . . . . . . . . . . . . . . . . . . . . . 13
Asset Allocation for Retirement Portfolio . . . . . . . . . . . . . . . . . . 41
Financial Impact of Stephen's Disability . . . . . . . . . . . . . . . . . . . 14
Investment Risk for Retirement Portfolio . . . . . . . . . . . . . . . . . .42
Financial Impact of Michelle's Disability . . . . . . . . . . . . . . . . . . . 15
Income Objectives for Vincent Education . . . . . . . . . . . . . . . . . 43
Income Objectives At Stephen's Death . . . . . . . . . . . . . . . . . . . . 16
Available Resources for Vincent Education . . . . . . . . . . . . . . . . 44
Available Resources at Stephen's Death . . . . . . . . . . . . . . . . . . . 17
Education Planning for Vincent . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Income Needs if Stephen Dies . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Income Objectives for Gloria Education . . . . . . . . . . . . . . . . . . .46
Income Objectives At Michelle's Death . . . . . . . . . . . . . . . . . . . . 19
Available Resources for Gloria Education . . . . . . . . . . . . . . . . . . 47
Available Resources at Michelle's Death . . . . . . . . . . . . . . . . . . 20
Education Planning for Gloria . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Income Needs if Michelle Dies . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Action Steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Household Emergency Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Track Your 2020 Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Optimize . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Purchase Disability Income Insurance . . . . . . . . . . . . . . . . . . . . . 51
Student Loan Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
Life Insurance Recommendations . . . . . . . . . . . . . . . . . . . . . . . . 52
Grow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
5 Year Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53
Retirement Income Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Goal Calendar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Retirement Income Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Understanding Term and Permanent Life Insurance . . . . . . . . 56
Retirement Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Power of the Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Retirement Strategy Breakdown (Scenario) . . . . . . . . . . . . . . . 29
Understanding Stephen's Life Insurance Recommendation. . . 58
Retirement Planning Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Stephen's Permanent Life Insurance: Benefits . . . . . . . . . . . . . 59
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Table of Contents
Understanding Michelle's Life Insurance Recommendatio . . . 60
Michelle's Permanent Life Insurance: Benefits . . . . . . . . . . . . . .61
Estate Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Ensure Your Plan's Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63
Plan Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
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Stephen & Michelle Douglas
Summary of Objectives
Save $121,911 by 2033 for Education Planning for Vincent
Save $141,127 by 2036 for Education Planning for Gloria
Pay down $15,000 Student loans by 2025 12 31
Retirement income of $96,000/yr in today's dollars by 2050
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Recap of the Facts
Client
Co-Client
Household Gross Income
Stephen, 35
Michelle, 35
Kays Marketing - Paystub - Miche. . . . . .$75,000
March 26, 1985
May 30, 1985
KPS Inc - Paystub - Stephen. . . . . . . . $100,000
Child
Child
Vincent, 5
Gloria, 2
February 1, 2015
March 9, 2018
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$175,000
Douglas Sample 8-20 v1
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Balance Sheet
Stephen & Michelle Douglas
$463,000
Total Net Worth
Total Assets
Cash/Cash Equivalents
$813,000
5.54%
$45,000
CD - Joint . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000
Total Liabilities
Home Loans
$350,000
95.71%
$335,000
Mortgage - Joint . . . . . . . . . . . . . . . . . . . 335,000
Savings - Joint . . . . . . . . . . . . . . . . . . . . . .20,000
Student Loans
Non-Qualified Assets
12.05%
$98,000
4.29%
$15,000
Stephen's Student Loans . . . . . . . . . . . . . 15,000
Brokerage - Stephen . . . . . . . . . . . . . . . . 30,000
529 Plan - Gloria . . . . . . . . . . . . . . . . . . . . . 4,000
529 Plan - Vincent . . . . . . . . . . . . . . . . . . . 4,000
Mutual Funds . . . . . . . . . . . . . . . . . . . . . . 60,000
Qualified Assets
20.29%
$165,000
401(k) - Stephen . . . . . . . . . . . . . . . . . . . .70,000
IRA - Stephen . . . . . . . . . . . . . . . . . . . . . . 45,000
401(k) - Michelle . . . . . . . . . . . . . . . . . . . 50,000
Personal Property
3.69%
$30,000
Car - Joint . . . . . . . . . . . . . . . . . . . . . . . . . 30,000
Real Estate
58.43%
$475,000
Primary Residence . . . . . . . . . . . . . . . . . 475,000
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Your 2020 Cash Flow
Overview
We calculate your cash flow by looking at your current income
and expenses, as well as your target savings. Based on these
factors, here's how we think your annual budget, from January 1
to December 31, 2020 should look.
Committed: Fixed Expenses
Committed: Goal Funding
Discretionary Spending
Gross Income
$175,000
Avg $14,583 /mo
$60,000
$42,207
Average: $5,000 /mo
Average: $2,619 /mo
Average: $3,517 /mo
Your non-negotiable, most
inflexible expenses that keep
your life running.
The savings target that we
recommend you allocate for
financial security, debt paydown,
retirement, and other personal
goals.
These remaining dollars have not
been allocated to any specific
purpose and are free to use for
whatever you would like.
Stephen's Gross Income . . . . . . $100,000
House Loans . . . . . . . . . . . . . . . . $21,600
Michelle's Gross Income . . . . . . . $75,000
Property Taxes . . . . . . . . . . . . . . . $7,200
Child / Dependent Care . . . . . . . . $7,200
Includes $41,368 taxes & withholdings.
$31,425
Groceries . . . . . . . . . . . . . . . . . . . $6,000
Utilities . . . . . . . . . . . . . . . . . . . . . $3,000
We've included your annual prepaycheck retirement
contributions of $4,000.
Phones . . . . . . . . . . . . . . . . . . . . . . $1,800
Car insurance . . . . . . . . . . . . . . . . .$1,800
Parking/tolls . . . . . . . . . . . . . . . . . $1,200
Cable / Internet . . . . . . . . . . . . . . .$1,200
Gas . . . . . . . . . . . . . . . . . . . . . . . . . $1,200
Home Maintenance . . . . . . . . . . . $1,200
Gym . . . . . . . . . . . . . . . . . . . . . . . . .$1,200
Co-pays/Rx . . . . . . . . . . . . . . . . . . . $600
Car maintenance . . . . . . . . . . . . . . .$600
Domestic Help / Housekeeper . . . $600
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Our Planning Strategy
Your plan is designed to help you
balance your current and future
priorities. It is important to look at
your whole financial picture to
understand how one financial
decision affects another.
To help simplify the planning process,
we’ve organized your goals into three
types: Protect, Optimize, and Grow.
This framework helps us coordinate
your plan’s many moving parts to help
tell the story of the life you want to
live.
Protect
Your financial security comes first.
Life is full of ups and downs, and we'll
make sure you have everything you
need to be prepared for both.
Optimize
We’ll help you find the best ways to
pay down any debts, freeing your
money up for other goals.
Grow
Retirement and big-ticket items, like buying
a home or starting a family, require saving
strategies. We'll address each of your goals
in detail and show you how to achieve them.
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Goals Funding Timeline
Make Minimum Payments
Prioritize Funding
Fully Funded
Partially Funded
Disability Income Insurance
Life Insurance
Student Loan Paydown
Retirement
Education Planning for Vincent
Education Planning for Gloria
2020
2021
2022
2023
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2024
2025
2026
2027
2028
2029
Douglas Sample 8-20 v1
Protect
Your Financial Security
Comes First
Protecting Your Income
Protecting Your Household
Establishing an Emergency Fund
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Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Understanding Your
Earning Potential
Your ability to earn an income is
often your most valuable asset.
Stephen could earn $4,268,261
from now to retirement.
You may think your most valuable
possession is a tangible thing, like a
home or bank account. But when
you look at the numbers, the income
you could earn over the course of a
lifetime is most likely greater than
anything else you own.
Starting with your current salary of $100,000,
we've added up the total of every working year
until retirement. Each consecutive year is adjusted
upwards for inflation by 2.25%
Michelle could earn $3,225,563
from now to retirement.
Starting with your current salary of $75,000,
we've added up the total of every working year
until retirement. Each consecutive year is adjusted
upwards for inflation by 2.25%
Protect the value of your
lifetime earning potential
Disability Income Insurance
Life Insurance
Emergency Fund
This plan is not complete without the Disclosure pages appearing at the end.
If Stephen stopped working today, you
would need to invest $1,973,555
at an average annual rate of return
of 5.56% in order to replace this
income until retirement.
If Michelle stopped working today, you
would need to invest $1,484,980
at an average annual rate of return
of 5.56% in order to replace this
income until retirement.
Minimize a variety of risks
to your income
Getting Injured
Passing Away
Losing Your Job
Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
The Financial
Impact of a
Disability
Disability Income Insurance covers a
Becoming disabled is more common than you might think.
range of circumstances, from long-
We ran a simulation of how your financial plan could be affected if you had to stop working today1.
term illness to temporary injury.
Stephen's Outlook
Any disability that prevents you from
working could lower your income, and
even a short-term change in income
can affect your finances in a number
of different ways.
30%
Chance you will experience
a disability between now
and retirement.
Michelle's Outlook
2.1 yrs
Average amount of time
you could be out of work,
and without an income.
37%
2.2 yrs
Chance you will experience
a disability between now
and retirement.
Average amount of time
you could be out of work,
and without an income.
What happens when you get disabled?
Illness or
Injury Occurs
Life Without
a Paycheck
Assets Take
Time to Recover
Lost Growth
Opportunity
Even a short-term
disability event can create
a long-term financial
impact.
As your income goes
down, there’s a good
chance that your
medical costs will rise.
It can take years to
rebuild your
assets, even if you
can go back to
work.
Not only are you spending
to cover expenses, you
could also lose the
potential growth on those
funds had you saved
them instead.
1. Based on 2013 IDI [Individual Disability Insurance] valuation tables from the American Academy of Actuaries.
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Impact of Stephen's
Disability
A temporary disability can have immediate and lasting impacts
on your finances
Impact of a 2.1 Year Disability to Your Net Worth
$463,000
There’s a 50% chance that a
$730k
temporary disability could become
Current net worth
permanent.
$663,123
Your projected
net worth in 2024
It could take 3 years to rebuild
your current net worth.
$663k
$596k
$557,909
Net worth in 2024
after a 2.1 year disability
$530k
$105,213
Difference in net worth in 2024
This near-term difference can have
a lasting impact. A $105,213
investment in 2024 could create
$356,807 in additional net worth
at your retirement in 2050.
$463k
$396k
2020
2021
2022
2023
2024
Includes any income your partner earns during your disability.
Assumed average growth rate of 4.81% for your liquid assets including cash, qualified and non-qualified accounts.
Based on the most recent IDI (Individual Disability Insurance) valuation tables from the American Academy of Actuaries.
You currently maintain a $4,174 monthly disability benefit
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Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Impact of Michelle's
Disability
A temporary disability can have immediate and lasting impacts
on your finances
Impact of a 2.2 Year Disability to Your Net Worth
$463,000
There’s a 49% chance that a
$730k
temporary disability could become
Current net worth
permanent.
$663,123
$663k
Your projected
net worth in 2024
It could take 4 years to rebuild
your current net worth.
$497,807
Net worth in 2024
after a 2.2 year disability
$165,315
$596k
$530k
$463k
Difference in net worth in 2024
This near-term difference can have
a lasting impact. A $165,315
investment in 2024 could create
$560,629 in additional net worth
at your retirement in 2050.
$396k
$330k
2020
2021
2022
2023
2024
We assume you do not currently have disability coverage.
Includes any income your partner earns during your disability.
Assumed average growth rate of 4.81% for your liquid assets including cash, qualified and non-qualified accounts.
Based on the most recent IDI (Individual Disability Insurance) valuation tables from the American Academy of Actuaries.
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Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Income Objectives at
Stephen's Death
Here's the immediate cash and ongoing income Michelle would
need in the event of Stephen's death.
Immediate Cash Needs
Amount in Today's Dollars
Final Expenses
Emergency Fund
Readjustment Fund
Your Home's Mortgage
Student Loan Debt
$25,000
$25,974
$25,974
$335,000
$15,000
Immediate Cash Total
$426,948
Ongoing Annual Income Needs
Date Range
Pre-retirement Income Need
Retirement Lifestyle Income Need
Education Planning for Vincent
Education Planning for Gloria
2020–2049 Michelle, age 35–64
2050–2080 Michelle, age 65–95
2033–2037 Vincent, age 18–22
2036–2040 Gloria, age 18–22
Need in Today's Dollars
Increase Rate
Need in Future Dollars
$88,701
$96,000
$15,000
$15,000
0.00%/yr
–
5.00%/yr
5.00%/yr
$88,701
$191,352
$28,285
$32,743
2020 after-tax income need: $88,701
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Available Resources at
Stephen's Death
Here's what Stephen can expect to leave behind in addition to
the sources of income Michelle would have available.
Sources of Immediate Cash
Amount in Today's Dollars
Term Life
Savings - Joint
CD - Joint
$200,000
$20,000
$25,000
Immediate Cash Total
$245,000
Sources of Annual Income
Date Range
Kays Marketing - Paystub - Michelle
Social Security Dependent Benefit - Gloria
Social Security Survivor Benefit - Michelle
Social Security Dependent Benefit - Vincent
2020–2050
2020–2036
2052–2080
2020–2033
Assets Available for Education
Amount in Today's Dollars
Increase Rate
Amount in Future Dollars
$75,000
$12,556
$16,742
$12,556
2.25%/yr
2.25%/yr
2.25%/yr
2.25%/yr
$75,000
$12,839
$34,889
$12,839
Current Balance in Today's
Dollars
Assumed Rate of Return
Balance at Education in
Future Dollars
$4,000
$4,000
5.56%/yr
5.56%/yr
$7,983
$9,389
529 Plan - Vincent
529 Plan - Gloria
Life insurance can help protect your family during the Social Security ‘blackout period’ that occurs when a surviving spouse is not eligible to receive survivor benefits because their child has reached age 16,
but is not yet eligible for retirement benefits.
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Available Resources at
Stephen's Death
Continued
Assets Available for Retirement
Current Balance in Today's
Dollars
Assumed Rate of Return
Balance at Retirement in
Future Dollars
$70,000
$50,000
$45,000
$30,000
$60,000
5.56%/yr
5.56%/yr
5.56%/yr
5.56%/yr
5.56%/yr
$351,846
$532,767
$225,159
$0
$0
401(k) - Stephen
401(k) - Michelle
IRA - Stephen
Brokerage - Stephen
Mutual Funds
Annual Contributions to Assets
Date Range
401(k) - Stephen
401(k) - Michelle
Mutual Funds
Jan 2020–Dec 2020
Jan 2020–Dec 2050
Jan 2020–Dec 2050
Initial Contribution Amount
0.33% of Salary
4.00% of Salary
$6,000
Life insurance can help protect your family during the Social Security ‘blackout period’ that occurs when a surviving spouse is not eligible to receive survivor benefits because their child has reached age 16,
but is not yet eligible for retirement benefits.
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Income Needs if Stephen
Dies
The chart below indicates how sufficiently your current assets
and expected income streams will fund your annual household
expenses.
2020
Readjustment Fund
Final Expenses
Debts Paid Off
Michelle's Income Need: Current Resources
Ongoing Lifestyle
(After Taxes)
$558.5k
Shortage
Stephen's Existing Policy
$418.9k
Liquid Assets, Property & Other
Michelle's Income
Michelle's Social Security
2050
Michelle retires, age 65
$279.3k
$1,413,333
Minimum life insurance required
to cover shortage
$139.6k
$0
2080
This amount of coverage assumes
Stephen's death benefit proceeds are
invested into a brokerage account with
a 4.77% rate of return. Existing assets
are expected to grow over time at their
respective rate of return.
2020
2080
Michelle, age 95
We’ve taken into account:
Insurance proceeds are invested into a brokerage account with a rate of return of 4.77%.
Your existing assets are expected to grow over time.
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Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Income Objectives at
Michelle's Death
Here's the immediate cash and ongoing income Stephen would
need in the event of Michelle's death.
Immediate Cash Needs
Amount in Today's Dollars
Final Expenses
Emergency Fund
Readjustment Fund
Your Home's Mortgage
Student Loan Debt
$25,000
$25,974
$25,974
$335,000
$15,000
Immediate Cash Total
$426,948
Ongoing Annual Income Needs
Date Range
Pre-retirement Income Need
Retirement Lifestyle Income Need
Education Planning for Vincent
Education Planning for Gloria
2020–2049 Stephen, age 35–64
2050–2077 Stephen, age 65–92
2033–2037 Vincent, age 18–22
2036–2040 Gloria, age 18–22
Need in Today's Dollars
Increase Rate
Need in Future Dollars
$88,778
$96,000
$15,000
$15,000
0.00%/yr
–
5.00%/yr
5.00%/yr
$88,778
$191,352
$28,285
$32,743
2020 after-tax income need: $88,778
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Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Available Resources at
Michelle's Death
Here's what Michelle can expect to leave behind in addition to
the sources of income Stephen would have available.
Sources of Immediate Cash
Amount in Today's Dollars
Term Life
Savings - Joint
CD - Joint
$150,000
$20,000
$25,000
Immediate Cash Total
$195,000
Sources of Annual Income
Date Range
KPS Inc - Paystub - Stephen
Client Social Security
Social Security Dependent Benefit - Gloria
Social Security Dependent Benefit - Vincent
2020–2050
2052–2077
2020–2036
2020–2033
Assets Available for Education
Amount in Today's Dollars
Increase Rate
Amount in Future Dollars
$100,000
$16,742
$11,150
$11,150
2.25%/yr
2.25%/yr
2.25%/yr
2.25%/yr
$100,000
$34,889
$11,401
$11,401
Current Balance in Today's
Dollars
Assumed Rate of Return
Balance at Education in
Future Dollars
$4,000
$4,000
5.56%/yr
5.56%/yr
$7,983
$9,389
529 Plan - Vincent
529 Plan - Gloria
Life insurance can help protect your family during the Social Security ‘blackout period’ that occurs when a surviving spouse is not eligible to receive survivor benefits because their child has reached age 16,
but is not yet eligible for retirement benefits.
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Available Resources at
Michelle's Death
Continued
Assets Available for Retirement
Current Balance in Today's
Dollars
Assumed Rate of Return
Balance at Retirement in
Future Dollars
$70,000
$50,000
$45,000
$30,000
$60,000
5.56%/yr
5.56%/yr
5.56%/yr
5.56%/yr
5.56%/yr
$915,427
$251,376
$225,159
$0
$0
401(k) - Stephen
401(k) - Michelle
IRA - Stephen
Brokerage - Stephen
Mutual Funds
Annual Contributions to Assets
Date Range
401(k) - Stephen
401(k) - Michelle
Mutual Funds
Jan 2020–Dec 2050
Jan 2020–Dec 2020
Jan 2020–Dec 2050
Initial Contribution Amount
4.00% of Salary
0.33% of Salary
$6,000
Life insurance can help protect your family during the Social Security ‘blackout period’ that occurs when a surviving spouse is not eligible to receive survivor benefits because their child has reached age 16,
but is not yet eligible for retirement benefits.
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Income Needs if Michelle
Dies
The chart below indicates how sufficiently your current assets
and expected income streams will fund your annual household
expenses.
2020
Readjustment Fund
Final Expenses
Debts Paid Off
Stephen's Income Need: Current Resources
Ongoing Lifestyle
(After Taxes)
$566k
Shortage
Michelle's Existing Policy
$424.5k
Liquid Assets, Property & Other
Stephen's Income
Stephen's Social Security
2050
Stephen retires, age 65
$283k
$918,601
Minimum life insurance required
to cover shortage
$141.5k
$0
2077
This amount of coverage assumes
Michelle's death benefit proceeds are
invested into a brokerage account with
a 4.77% rate of return. Existing assets
are expected to grow over time at their
respective rate of return.
2020
2077
Stephen, age 92
We’ve taken into account:
Insurance proceeds are invested into a brokerage account with a rate of return of 4.77%.
Your existing assets are expected to grow over time.
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
Grow
Plan for the Future
Retirement Strategies
Education
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
Prepared for
26
Stephen & Michelle Douglas
Retirement Income
Objectives
Current Path
Target Retirement Years
Stephen
Age 65-92
Mar 2050-Mar 2077
Michelle
Age 65-95
May 2050-May 2080
Annual Income Needs
Type
Date Range
Current Lifestyle
Fixed
Current Lifestyle
Discretionary
Total Annualized Income Need
Income in Today's Dollars
Increase Rate
Income at Retirement
Mar 2050 - May 2080
$54,000
2.25%
$107,636
Mar 2050 - May 2080
$42,000
2.25%
$83,717
Starting Mar 2050
$96,000
–
$191,352
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
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27
Stephen & Michelle Douglas
Retirement Income
Sources
Current Path
Owner
Date Range
Income (Today's Dollars)
Increase Rate
Income (at Retirement)
Michelle
Mar 2050 - May 2050
$75,000
2.25%
–
Stephen's Benefit
Stephen
Mar 2052 - Mar 2077
$16,742 2
2.25%
–
Michelle's Benefit
Michelle
Apr 2077 - May 2080
$16,742 2
2.25%
–
Michelle's Benefit
Michelle
May 2052 - May 2080
$14,867 2
2.25%
–
–
–
–
Income Source
Earned Income
Kays Marketing - Paystub - Michelle
Social Security
Annualized Before-Tax Income
Available
Starting Mar 2050
1 Benefit amount may change upon the death of the primary owner.
2 50.00% of projected Social Security benefit in today's dollars.
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
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28
Stephen & Michelle Douglas
Retirement Assets
Based on your current resources, below is a breakdown of all
your retirement assets.
Current Path
Retirement Assets
Owner
Type
Current Balance: 2020
Assumed Return
Expected Balance: 2050
401(k) - Stephen
Stephen
Plan 401k
$70,000
5.56%
$915,427
401(k) - Michelle
Michelle
Plan 401k
$50,000
5.56%
$532,767
IRA - Stephen
Stephen
Non Deductible Trad
IRA
$45,000
5.56%
$225,159
Brokerage - Stephen
Stephen
Brokerage
$30,000
5.56%
$127,978
Mutual Funds
Joint
Brokerage
$60,000
5.56%
$255,955
Amount/yr
(Today's
Dollars)
Employer
Contributions
Date Range
Annual Contributions to Assets
401(k) - Stephen
Jan 2020 - Dec 2050
4.00%
2.00%
401(k) - Michelle
Jan 2020 - Dec 2050
4.00%
0.00%
This plan is not complete without the Disclosure pages appearing at the end.
23 0410 13 (05/20)
Douglas Sample 8-20 v1
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29
Stephen & Michelle Douglas
Retirement Strategy
Breakdown
This projection shows how well your retirement resources and
expected income streams cover your after-tax income needs.
Current Path
Income need
After-tax income need
Shortage
Retirement Withdrawals
Non-Qualified
Qualified
Roth
HSA†
INCOME
$394k
$296k
Life Insurance
Accumulated Value1
Death Benefit
Income Sources
Earned income
Other income
Annuity Income Plan2
Pension
Social Security
$197k
$99k
2050: Stephen retires, age 65
2050: Michelle retires, age 65
2077: Stephen passes, age 92
2080: Michelle passes, age 95
$0
2050
2055
Stephen / Michelle
65, 65
70, 70
2060
2065
2070
2075
2080
75, 75
80, 80
85, 85
90, 90
-, 95
Contributions start at 4.00% of income annually to a target of 4.00% in 2050. We assume your investments grow at a constant annual rate of 5.56% pre-retirement and 4.77% during retirement. We
assume an inflation rate of 2.25% and annual growth of your income at that rate.
† HSA liquidations are assumed to be for qualified medical expenses only, otherwise additional taxes and/or penalties may apply. 1. This page includes a life insurance illustration of accumulated value
and depicts non-guaranteed elements, such as dividends and other non-guaranteed benefits or values. The assumptions upon which such non-guaranteed elements are based are subject to change by
Northwestern Mutual. Actual results may be more or less favorable than those depicted. See the accompanying basic illustration for guaranteed elements and other important information. 2. If you have
a variable income plan, the amounts represented may fluctuate.
This plan is not complete without the Disclosure pages appearing at the end.
23 0410 04 (05/20)
Douglas Sample 8-20 v1
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30
Stephen & Michelle Douglas
Retirement Planning
Strategy
Having a variety of income sources in retirement lets you
strategically manage your taxes and reduce market risk.
Variable Sources: Plan for when, and how much, you withdraw.
Deferred
Annuities
Annuity
Income Plan
Social
Security
Pension
Investments
401(k)/
IRA
Roth
Builds value you can use
strategically.
Life Insurance
Accumulated Value
1
Other
Income
Cash Reserve
Base Incomes: Generally, you’ll receive
these on a regular schedule.
Retirement Income
Legacy Planning
Have a plan for how your estate will
continue to support loved ones and
donate to charitable causes.
Legacy Planning
1. The primary purpose for life insurance is to provide a death benefit. Using accumulated value to supplement your retirement
income may reduce death benefits and may affect other aspects of your plan.
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
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43
Stephen & Michelle Douglas
Income Objectives for
Vincent's Education
Description
Age at End of 2020
Age in First Year
Education Planning for Vincent
5
18
Date Range
2033
2034
2035
2036
Total Resources Needed
Estimated Annual
Room and Board
Estimated
Annual Tuition
–
$15,000
Annual Amount
(Today's dollars)
Inflation
Rate
Annual Amount
(Future Dollars)
$15,000
$15,000
$15,000
$15,000
5.00%
5.00%
5.00%
5.00%
$28,285
$29,699
$31,184
$32,743
$121,911
Assumptions
You want to save 100% of the total cost
Saving before and during education years
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
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44
Stephen & Michelle Douglas
Available Resources for
Vincent's Education
Assets Available
529 Plan - Vincent
Annual Contributions to Assets
Date Range
529 Plan - Vincent
Jan 2020 – Dec 2033
Achievable Savings Total
Annual Return (%)
Current Balance
5.56%
$4,000
Annual Increase Rate
Annual Amount
(Today's Dollars)
–
$3,203
$95,133
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
Prepared for
45
Stephen & Michelle Douglas
Education Planning for
Vincent
Here's a projection of your education goal funding by your target
date.
Total Cost
$121,911
$98.5k
Achievable
$95,133
2020 Starting Balance
. . . . . . $4,000
2020 Funding
. . . . . . . . . . . . . . $3,203
2021 Funding
. . . . . . . . . . . . . . .$2,432
2022 Funding
. . . . . . . . . . . . . . $2,664
2023 Funding
. . . . . . . . . . . . . . $2,864
2024 Funding
. . . . . . . . . . . . . . $3,048
Total Growth (5.56%/yr)
Gap in Savings
$73.9k
. . . . $31,786
. . . . . . . . . . . . .$26,778
$49.3k
$24.6k
$0
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Assumptions:
You want to save 100% of the total cost
Saving before and during education years
Projection of cost is adjusted for future dollars
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
2036
Prepared for
46
Stephen & Michelle Douglas
Income Objectives for
Gloria's Education
Description
Age at End of 2020
Age in First Year
Education Planning for Gloria
2
18
Date Range
2036
2037
2038
2039
Total Resources Needed
Estimated Annual
Room and Board
Estimated
Annual Tuition
–
$15,000
Annual Amount
(Today's dollars)
Inflation
Rate
Annual Amount
(Future Dollars)
$15,000
$15,000
$15,000
$15,000
5.00%
5.00%
5.00%
5.00%
$32,743
$34,380
$36,099
$37,904
$141,127
Assumptions
You want to save 100% of the total cost
Saving before and during education years
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
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47
Stephen & Michelle Douglas
Available Resources for
Gloria's Education
Assets Available
Annual Return (%)
Current Balance
529 Plan - Gloria
5.56%
$4,000
Annual Increase Rate
Annual Amount
(Today's Dollars)
–
$2,897
Annual Contributions to Assets
Date Range
529 Plan - Gloria
Jan 2020 – Dec 2036
Achievable Savings Total
$141,076
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
Prepared for
48
Stephen & Michelle Douglas
Education Planning for
Gloria
Here's a projection of your education goal funding by your target
date.
Total Cost
$141,127
Achievable
$141,076
$143k
2020 Starting Balance
. . . . . . $4,000
2020 Funding
. . . . . . . . . . . . . . $2,897
2021 Funding
. . . . . . . . . . . . . . . $2,138
2022 Funding
. . . . . . . . . . . . . . .$2,331
2023 Funding
. . . . . . . . . . . . . . $2,495
2024 Funding
. . . . . . . . . . . . . . $2,640
Total Growth (5.56%/yr)
Gap in Savings
$107.3k
. . . $50,084
. . . . . . . . . . . . . . . . . $51
$71.5k
$35.8k
$0
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
Assumptions:
You want to save 100% of the total cost
Saving before and during education years
Projection of cost is adjusted for future dollars
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
2039
Prepared for
57
Stephen & Michelle Douglas
Power of the Portfolio
Northwestern Mutual's
General Account
Smart Investing: Allocation of Managed Assets
Our General Account investment
portfolio backs our insurance
policies and contributes to the
dividends paid to policyowners.
We manage the company's $272 billion portfolio to maximize total
return by sourcing public and private investment opportunities.
Active portfolio management,
diversification and long-term
perspective are behind our
investment portfolio's track record
of consistently strong
performance.
83%
Lower Risk Assets
For a stable foundation
and current income
Our dividend compared to other financial products:
7% High-yield bonds
5% Real estate equities
17%
Policyholders are expected to receive over
$5.6 billion in 2019 dividend payouts.
HIgher Risk Assets
For g rea ter return p otential
and incremental diversifcation
3% Private equities
2% Public common stock
1% Collateralized loan obligations
2% Foreign government securities
2% Commercial mortgage-backed securities
41%
44%
Investment-grade
Investment-grade
corporate
bonds
corporate bonds
2% Asset-backed securities
3% U.S. government securities
16%
Residential
mortgagebacked
17%
securities Commercial
mortgage
loans
Interest Component of
Northwestern Mutuals’ 2019 Dividend
Other Fixed Income Rates
5.00%
Current Yield
Source:The Wall Street Journal , October 2018
Money Market
0.43%
Five Year CD
1.86%
US Municipal Bonds (ICE 7–12 year)
2.89%
10 Year Treasury Bond
3.15%
US Corporate Bonds (Barclays AA Rated)
3.60%
Our dividend rate is not a return on a policy, and is only
one of several factors used to determine the permanent
life insurance dividend.
As of March 31, 2019. Does not add to 100% due to rounding.
"Lower Risk" and "Higher Risk" are general indications of the relative risk of loss of a particular type of investment
compared to other investments. Generally, in investing, higher-risk investments offer greater potential return. All
investments carry some risk of loss. The vast majority of the company's managed assets back most of its life, disability
income and Portfolio Income Annuity liabilities. The investment strategies described in this update apply to the
investment of those assets. A portion of managed assets backs the remaining liabilities (primarily fixed deferred
annuities, income plans and long-term care insurance), which have different investment exposures. When purchasing
the company's life insurance and annuity products, clients are not investing in the company's General Account
portfolio but purchasing products backed by the financial strength of Northwestern Mutual. Long-term care insurance
is issued by Northwestern Long Term Care Insurance Company, Milwaukee, WI, a subsidiary of Northwestern Mutual.
This plan is not complete without the Disclosure pages appearing at the end.
Dividends are not guaranteed on any policy in any given year. The dividend
scale is review annually by the Company's Board of Trustees and is subject to
change. The interest component of the dividend is not the rate of return on a
policy and is only one factor for determining the permanent life insurance
dividend. The majority of our life insurance dividend payout is a result of
persistency, favorable mortality costs and diligent expense management. It is
not possible to invest directly in the company's general investment portfolio
and its yield is not the same as the interest component of the dividend
associated with participating insurance policies or annuity contracts.
Douglas Sample 8-20 v1
Prepared for
37
Stephen & Michelle Douglas
Supplement Retirement
Income in Down Markets
During a down market, investments can lose value. Using other
cash assets to supplement retirement income, such as
accumulated value from a permanent life insurance policy or
bank savings, can give those investments time to recover.
Investment Portfolio Scenarios
$1,500,000
$264,187
$2.5M
Assets at retirement in 1996
Assets in 2016
$2M
if cash assets were used
A total of $192,460 in assets
were withdrawn following
Use of cash assets
minimizes withdrawals from
investment portfolio.
$1.75M
down market years.
$1.5M
$0
$1.25M
Assets in 2016
$1M
if cash assets weren't used
Regular withdrawals were
made. No cash assets were
used.
$750K
$500K
$250K
$0
Assumptions:
• 50/50 mix of stocks and bonds
• $120,000 withdrawn, inflated at 3% per
year until assets are depleted. In down years,
only required minimum distributions are
withdrawn from portfolio with cash assets.
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Stocks are represented by the S&P 500® Index, which is an unmanaged group of securities considered to be representative of the U.S. stock market in general. Bonds are represented by the Barclays U.S.
Aggregate Bond Index, which is an unmanaged, broad-based flagship benchmark that measures the investment grade, U.S. denominated, fixed-rate taxable bond market. An investment cannot be made
directly in an index. Past performance is not a guarantee of future results. Data does not account for transaction costs. This is for illustrative purposes only and is not indicative of any specific investment.
The primary purpose of permanent life insurance is to provide a death benefit. Using accumulated values to supplement your retirement income will reduce the benefit and may affect other aspects of your
insurance plan. Accessing the accumulated values through policy loans, surrenders of dividend values, or cash withdrawals will or could: reduce the death benefit; necessitate greater outlay than
anticipated; or result in an unexpected taxable event.
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
Prepared for
38
Stephen & Michelle Douglas
How We Approach Asset
Allocation
Manage your risk through a diversified portfolio can help
maximize your return for how much risk you're willing to take.
Risk vs. Return:
Optimized Portfolios
All investments come with risk.
More risk usually means more
potential for greater return.
A strong portfolio has a diverse
asset class mix and investments
and lies along what’s called the
efficient frontier.
Very
Aggressive
Aggressive
Balanced
Moderately
Conservative
Conservative
Large Cap
Mid Cap
Small Cap
Int’l Developed Mkts
Int’l Emerging Mkts
Commodities
Fixed Income (w/ Cash Alternatives)
Return
Real Estate
Risk
No investment strategy can guarantee a profit or protect against loss.
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Asset Class Annual
Performance
It’s impossible to predict the performance of a single asset class
year over year. They all experience ups and downs. It’s more
strategic to diversify your portfolio to achieve consistent returns.
2005
2006
2007
2008
2009
2010
2011
Int'l
Emerging
34.0%
Real
Estate
36.0%
Int'l
Emerging
39.4%
Fixed
Income
5.2%
Int'l
Emerging
78.5%
Real
Estate
28.1%
Real
Estate
9.4%
Int'l
U.S. Small
Emerging
Cap
18.2%
41.3%
Commodities
21.4%
Int'l
Emerging
32.1%
Commodities
16.2%
Cash
Alt.
1.8%
U.S. Mid
Cap
37.4%
U.S. Mid
Cap
26.6%
Fixed
Income
7.8%
U.S. Mid
Cap
17.9%
Real
Estate
13.8%
2013
U.S. Mid
Cap
33.5%
Int'l
Int'l
Diversif'd
Int'l
U.S. Small U.S. Large
Int'l
U.S. Large
Developed Developed Portfolio Developed
Cap
Cap
Developed
Cap
26.3%
11.2%
-21.8%
31.8%
26.3%
2.1%
17.3%
32.4%
Int'l
U.S. Large Diversif'd U.S. Small
Developed
Cap
Portfolio
Cap
13.5%
15.8%
8.4%
-31.1%
U.S. Mid
Cap
12.6%
2012
Real
Estate
28.5%
Int'l
U.S. Small
Emerging
Cap
18.9%
1.0%
U.S. Small
Cap
15.1%
U.S. Mid
Cap
8.0%
Commo- U.S. Large Commodities
Cap
dities
-35.7%
26.5%
16.8%
Diversif'd Diversif'd
Portfolio Portfolio
8.5%
13.3%
Fixed
Income
7.0%
U.S. Mid
Cap
-36.2%
U.S. Small
Cap
7.7%
U.S. Mid
Cap
10.3%
U.S. Large
Cap
4.9%
Cash
Alt.
4.8%
Cash
Alt.
3.0%
Fixed
Income
4.3%
Fixed
Income
2.4%
Commodities
2.1%
U.S. Small U.S. Large
Cap
Cap
25.6%
15.1%
U.S. Large U.S. Large Diversif'd Diversif'd
Cap
Cap
Portfolio Portfolio
5.5%
-37.0%
22.3%
12.4%
Cash
Alt.
4.7%
Real
Estate
-39.2%
U.S. Small
Int'l
Cap
Developed
-0.3%
-43.4%
Real
Estate
-17.6%
Int'l
Emerging
-53.3%
Real
Estate
17.1%
Int'l
Developed
22.8%
2014
2015
Real
Estate
32.0%
Real
Estate
4.5%
U.S. Large U.S. Large
Cap
Cap
13.7%
1.4%
U.S. Mid
Cap
9.8%
Fixed
Income
0.6%
Fixed
Income
6.0%
Cash
Alt.
0.03%
2016
2017
Compounded
Risk2
Return1
2018
2019
Cash
Alt.
1.9%
U.S. Large
Cap
31.5%
U.S. Mid
Int'l
Cap
Developed
20.7%
25.0%
Fixed
Income
0.01%
U.S. Mid
Cap
26.2%
U.S. Small
Int'l
Cap
Emerging
9.2%
21.4%
U.S. Large U.S. Large
Cap
Cap
12.0%
21.8%
Real
Estate
-4.2%
Real
Estate
23.1%
U.S. Large U.S. Small
Cap
Cap
9.0%
18.1%
U.S. Small
Int'l
Cap
Emerging
26.6%
37.3%
Commodities
11.8%
U.S. Mid
Cap
16.2%
U.S. Large U.S. Small
Cap
Cap
-4.4%
22.8%
U.S. Mid
Cap
9.5%
Real
Estate
7.5%
High
Real
Estate
23.0%
U.S. Mid
Cap
16.5%
Diversif'd U.S. Small Diversif'd Diversif'd
Int'l
Int'l
Diversif'd Diversif'd
Int'l
Int'l
Int'l
Portfolio
Cap
Portfolio Portfolio Developed Emerging Portfolio Portfolio Developed Emerging Developed
0.4%
16.3%
12.3%
5.8%
-0.8%
11.2%
13.5%
-5.0%
22.0%
7.5%
16.4%
Cash
Alt.
0.1%
U.S. Large
Cap
16.0%
Real
Estate
1.2%
U.S. Mid
Cap
-1.7%
Diversif'd
Portfolio
10.8%
Cash
Alt.
0.1%
Cash
Alt.
0.03%
U.S. Small
Cap
-2.0%
Real
Estate
6.7%
Real
Estate
3.8%
U.S. Mid
Cap
-11.1%
Fixed
Income
4.2%
Fixed
Income
-2.0%
Int'l
Emerging
-2.2%
U.S. Mid
Cap
-2.2%
Fixed
Income
2.7%
Fixed
Income
3.5%
Commodities
-11.3%
CommoInt'l
Int'l
dities Developed Developed
18.9%
7.8%
-12.1%
Fixed
Income
5.9%
Fixed
Income
6.5%
Commodities
-13.3%
Cash
Alt.
0.1%
Cash
Alt.
0.2%
Cash
Alt.
0.1%
Int'l
Emerging
-18.4%
Commodities
-1.1%
U.S. Small Diversif'd Diversif'd U.S. Small U.S. Small
Int'l
Cap
Portfolio Portfolio
Cap
Cap
Emerging
5.8%
-1.7%
7.5%
13.2%
-8.5%
18.4%
Commodities
-17.0%
Commodities
-24.7%
Cash
Alt.
0.3%
Cash
Alt.
0.8%
Int'l
Emerging
-14.6%
Commodities
16.2%
Diversif'd
Int'l
U.S. Large
Portfolio Developed
Cap
18.1%
4.8%
13.8%
Fixed
Income
8.7%
Int'l
Int'l
Int'l
Int'l
CommoInt'l
CommoEmerging Developed Emerging Developed dities Developed dities
-2.6%
-4.9%
-14.9%
1.0%
1.7%
-13.8%
7.7%
Commodities
-9.5%
Diversif'd
Portfolio
6.4%
Cash
Alt.
2.3%
Fixed
Income
4.2%
Diversif'd
Portfolio
8.9%
Cash
Alt.
1.3%
Fixed
Income
3.2%
Commodities
-2.6%
Cash
Alt.
0.5%
Low
Source: 2020 Morningstar. This chart is for illustrative purposes only and not indicative of any investment. The data assumes reinvestment of all income and does not account for taxes or transactions costs. This chart is based upon past index performance and is not
indicative of future results. Indexes are unmanaged and cannot be invested in directly. Diversification does not guarantee a profit or protect against a loss. Note that the diversified portfolio’s assets were rebalanced annually in order to maintain the designated allocations
throughout the period.
1. Compounded returns are measured by the geometric mean of a given portfolio, which takes into account the sequence of returns over a given period of time and more accurately shows the portfolio’s performance over that period of time, as compared to a simple average.
2. Risk is represented by Standard Deviation, which is the measure of total volatility in a portfolio. It shows how widely a portfolio’s returns have varied around the average over a period of time. Standard deviations on this chart were calculated using monthly returns.
This plan is not complete without the Disclosure pages appearing at the end.
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Focus on the Long Term
Historical trends between 1926 and 2019 show the risk of stock
market decline over time.
1-year returns have been
positive 73% of the time
Short-term volatility can shake investors'
nerves, but annual returns of stocks have
been mostly positive
60%
40%
20%
0%
-20%
-40%
-60%
5-year annualized returns
have been positive
87% of the time
Markets get less volatile when you start
looking at longer-term investments.
1926
1944
1959
1974
1989
2004
2019
1926
1944
1959
1974
1989
2004
2019
1926
1944
1959
1974
1989
2004
2019
60%
40%
20%
0%
-20%
15-year annualized returns
have been positive
100% of the time
While investing for the long-term cannot
guarantee the elimination of losses, over
fifteen-year rolling periods stocks have not
had a period of negative returns.
60%
50%
40%
30%
20%
10%
0%
*Source: 2020 Morningstar Direct SM. Stocks are represented by the IA SBBI US Large Stock TR Index. All returns are from 1926 to 2019.
The chart is for illustrative purposes only and not intended as a recommendation. Past performance is not a guarantee of future results. All investments carry risk including
potential loss of principal and no investment strategy can guarantee a profit or completely protect against loss. Indexes are unmanaged and cannot be invested in directly.
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Asset Allocation:
Breakdown
The chart below shows a percentage breakdown, by asset class,
of your current retirement portfolio and target asset allocation.
Your current portfolio is made up of the existing accounts in
your retirement savings.
Your target asset allocation
Balanced
Asset Allocation
A diverse portfolio is important for managing
risk. Here's how your target asset allocation
breaks down.
Average rate of return:
5.56% / yr
Standard deviation:
8.81%
U.S. Large Cap
23%
U.S. Mid Cap
6%
U.S. Small Cap
3%
Int’l Developed Mrkts
13%
Int’l Emerging Mrkts
6%
Real Estate
4%
Commodities
5%
Fixed Income
40%
See the Asset Allocation Projection chart on the next page to understand the risk/return trade-offs of your
Target Asset Allocation. No investment strategy can can guarantee a profit or protect against a loss.
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Investment Risk for a
Balanced Portfolio
Balancing investment risk with potential returns is essential to
securing your financial future. The graph below provides a range
of potential outcomes we can expect from this allocation.
Asset Allocation Projection
The range of potential
outcomes of a $1,000
investment into your
portfolio.
Probability of Return on Investment
Balanced
$12k
95% probability
this portfolio will have
returns within this range
$9k
80% probability
this portfolio will have
returns within this range
$6k
50% probability
this portfolio will have
returns within this range
Median
$3k
This project assumes:
This portfolio's average rate of
return is 5.56% per year.
The standard deviation of this
portfolio is 8.81%.
We assume inflation to be 2.25%.
$0
Today
Year 5
Year 10
Year 15
Year 20
Year 25
Year 30
IMPORTANT: The scenario or other information generated by this Asset Allocation Projection
regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect
actual investment results and are not guarantees of future results
This plan is not complete without the Disclosure pages appearing at the end.
Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Ensure Your Plan’s
Success
Track your progress online
Stay in touch with your
financial representatives
Use your Plan Tracker to watch your hard work pay off
in real time. Just log in to NorthwesternMutual.com
and find the Planning tab.
This is just the beginning—successful plans are carried out
over many years. Your plan is meant to evolve with you, so
let’s continue to work together as your life moves forward.
Rather not go digital? You can always refer to the "Track
Your Goals" page in your plan to stay on top of your
goal funding.
George Acord
(309) 673 3781
george.testacord@nm.com
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Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Assumptions and Rates
Used in This Plan
Assumptions
Income
Yearly Total
Amt. Taxable
Growth
Begin - End
$75,000
100%
2.25%
2020 - 2050
$100,000
100%
2.25%
2020 - 2050
Inflation
2.25%
Kays Marketing - Paystub - Michelle
Portfolio Growth to Retirement
5.56%
KPS Inc - Paystub - Stephen
Portfolio Growth in Retirement
4.77%
Client Social Security
$25,591
85%
2.25%
2052 - 2077
Retirement Date - Stephen
Mar. 26, 2050
Social Security Survivor Benefit - Michelle
$44,634
85%
2.25%
2077 - 2080
Retirement Date - Michelle
May. 30, 2050
Partner Social Security
$17,675
85%
2.25%
2052 - 2080
$289,918
0%
0.00%
2077 - 2077
Yearly Total
Type
Growth
Begin - End
Parking/tolls
$1,200
Other Expense
2.25%
2020 - 2050
Fixed Retirement
$87,723
Other Expense
2.25%
2050 - 2080
Fun Money
$42,207
Other Expense
2.25%
2020 - 2050
Gloria's Education
$32,743
Other Expense
2.25%
2036 - 2039
Cable / Internet
$1,200
Other Expense
2.25%
2020 - 2050
Co-pays/Rx
$600
Other Expense
2.25%
2020 - 2050
Groceries
$6,000
Other Expense
2.25%
2020 - 2050
Utilities
$3,000
Other Expense
2.25%
2020 - 2050
Taxes
$5,006
Taxes
2.25%
2021 - 2081
Gas
$1,200
Other Expense
2.25%
2020 - 2050
Social Security Collection Age - Stephen
67
Life Insurance - Michelle
Social Security Collection Age - Michelle
67
Expense
Sched. Social Security Benefits - Stephen
50%
Sched. Social Security Benefits - Michelle
100%
Credit Score - Stephen
850
Credit Score - Michelle
850
Mortality - Stephen
92
Mortality - Michelle
95
Primary Residence
Wisconsin
Anticipated Residence in 2050
Wisconsin
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Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
Assumptions and Rates
Used in This Plan
Expense
Yearly Total
Type
Growth
Begin - End
Property Taxes
$7,200
Other Expense
2.25%
2020 - 2050
Child / Dependent Care
$7,200
Other Expense
2.25%
2020 - 2050
Car maintenance
$600
Other Expense
2.25%
2020 - 2050
Phones
$1,800
Other Expense
2.25%
2020 - 2050
Home Maintenance
$1,200
Other Expense
2.25%
2020 - 2050
$68,229
Other Expense
2.25%
2050 - 2080
Car insurance
$1,800
Other Expense
2.25%
2020 - 2050
Domestic Help / Housekeeper
$600
Other Expense
2.25%
2020 - 2050
Vincent's Education
$28,285
Other Expense
2.25%
2033 - 2036
Gym
$1,200
Other Expense
2.25%
2020 - 2050
Discretionary Retirement
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Douglas Sample 8-20 v1
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Stephen & Michelle Douglas
WHO WE ARE
If your Representative has the title of Financial Advisor or Wealth Management
HOW YOUR REPRESENTATIVE GETS PAID:
“Northwestern Mutual” refers to The Northwestern Mutual Life Insurance Company
Advisor, then (s)he is a representative of NMWMC, a subsidiary of NM and a limited-
Your Representative is compensated only when you “take action,” by purchasing
(NM), Milwaukee, WI, and its subsidiaries. Life insurance (including life insurance
purpose federal savings bank. NMWMC representatives offer investment
insurance, investments or advisory services. Your Representative does not charge a
with long-term care benefits), disability insurance and annuities are issued by NM.
management and advisory services based on his or her qualifications, as well as
separate fee for financial planning and does not receive any compensation for
Long-term care insurance is issued by Northwestern Long Term Care Insurance
trust and private client services. Some Wealth Management Advisors offer clients
helping clients analyze where they stand compared to their financial goals (except
Company (NLTC), Milwaukee, WI, a subsidiary of NM. Investment products are
fee-based financial planning. NMWMC has disclosure brochures for the different
for certain Wealth Management Advisors who offer fee-based planning to some
offered through Northwestern Mutual Investment Services, LLC (NMIS), 1-
types of services it offers that you may request from your Representative.
clients—see above).
subsidiary of NM, member FINRA and SIPC. Variable annuities and variable
Your Representative may have letters after his or her name, which means that he or
As an insurance agent and registered representative, your Representative may be
insurance are underwritten by NMIS. Investment management, fee-based financial
she has obtained certain additional qualifications or designations. The Certified
compensated through commissions, which are typically calculated as a percentage
planning and trust and private client services are offered by Northwestern Mutual
Financial Planner Board of Standards, Inc. owns the certification marks CFP® and
of: (1) the insurance premium you pay; (2) the amount you pay for an investment or
Wealth Management Company (NMWMC), a limited purpose federal savings bank
Certified Financial Planner™, which it awards to individuals who successfully
annuity; or (3) the value assets held in your investment accounts. Some products
and a subsidiary of NM. Investment products and trust services are not insured by
complete initial and ongoing certification requirements. The Chartered Advisor for
pay more compensation than other products. This is usually because some
the FDIC and are not obligations of or guaranteed by NMWMC, NMIS or NM. All
Senior Living (CASL®) designation is conferred by The American College of Financial
products have more complex features and require more work from your
investments are subject to risk including the possible loss of principal invested.
Services.
Representative in the sales process and/or in the servicing of the product as
The person working with you may have the title of Financial Representative,
WHAT WE DO:
Financial Advisors or Wealth Management Advisors receive as compensation a
Financial Advisor or Wealth Management Advisor (referred to here as
Your Representative will help you define your financial needs, assess your current
percentage of the fees you pay as a client of an NMWMC advisory program, or a
“Representatives” or “Representative”). Representatives have different capabilities
circumstances, compare them with your goals, and chart a path to a more secure
percentage of the fees you pay to receive trust or private client services.
as explained below.
financial future. Your Representative has developed this plan with you to determine
866 664 7737, a dually registered broker-dealer and investment adviser and a
compared to products with lesser compensation. Representatives who are
whether, or how, your needs can be met using any of the products and services
Your Representative may also receive additional compensation in the form of cash
All Representatives are agents of NM. In this capacity, they are able to sell and
your Representative can offer you. You are under no obligation to purchase
bonuses, non-cash compensation (e.g., achievement recognition, conferences,
service various types of NM insurance products, such as life insurance, disability
anything. You are free to implement any part of this plan with any product provider,
prizes, awards, preferential servicing) and retirement benefits based on
income insurance and annuities, which can ...
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