1. The Financial Planning Process: YOUR HOUSEHOLD BALANCE SHEET Name of Advisor Date Website Address goalgamiPro Powered by: Advisor Software, Inc.

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3. What is the benefit of goal-driven investing?

4. How many of you make a list prior to going to the grocery store? Why we make a list: • Identify items we need • Avoid overspending • Prioritize what most necessary for feeding the household • Have direction and sense of purpose • Stay organized and productivity becomes more efficient

5. Same rules apply here Why we choose to be goal-driven when it comes to your household finances:

6. R.O.L. (Return on Life) What if the return on your investments was also a return on life?

7. Your HouseholdBalance sheet

8. Goal Achievement Report Snapshot of your household financial circumstances. Initial diagnosis of the affordability of your goal plan.

9. “What Is My Plan?” • Liabilities = Goals • Future cash flow needs of the household, such as goals, debt and expenses • Assets = Resources • Everything used to fund Commitments, such as investment accounts, social security and future savings (income) 9

10. Your Household Balance Sheet 10

11. Your Resources - “Can I Afford My Goals?” Liquidity Traps: If your resources consist primarily of future cash flows and/or restricted accounts, and you have large short-term commitments, consider borrowing but evaluate the impact of the payments on your Household Balance Sheet. Purchasing Power:The Household Balance Sheet reflects the purchasing power of your resources. Commitments are paid for with after-tax dollars. If your retirement assets are largely IRA and 401(k) assets, make sure you evaluate the impact of different tax rates on your ability to pay for living expenses in retirement. Consider a Roth conversion. Risks:If future savings make up the majority of your resources, consider life or disability insurance, particularly if commitments are unchanged with the loss of income. 11

12. Your Resources - “Can I Afford My Goals?” Goal Priority Classes:Goals are fuzzy concepts – your Household Balance Sheet should capture that fuzziness. Goals should have different priority levels – this allows for trade-offs of different funding levels across goals. Cash Flows:Goals are simply future cash flows. The discount rates for the present value of these cash flows should reflect expected investment returns and inflation assumptions – different rates should be modeled to understand the impact on the Household Balance Sheet. Risks:If your Resources barely cover your necessary goal level, your investment portfolio should be conservatively invested so as not to put funding your necessary goals at risk. Think asset-liability matching fixed income strategies with an inflation hedge. 12

13. “How Do I Pay for My Retirement?” 13

14. goalgamiPro - Notes, Disclosures, Action Plan

15. Parting Thoughts • Investment assets exist to fund goals • If the goals change, then the portfolio should be rebalanced • Goals should be managed like assets - managing your Household Balance Sheet is a lifetime challenge • Steps required later in life are dependent on what has occurred earlier • Success is related to goal attainment, not beating an index • The advisor as financial coach enables you to achieve your aspirations • You can’t manage what you don’t measure - a Household Balance Sheet is a great tool to evaluate whether your goal plan is affordable

16. “Our goals can only be reached through a vehicle of a plan, in which we must fervently believe, and upon which we must vigorously act. There is no other route to success.” Pablo Picasso Contact me for a free Household Balance Sheet report and 30 minute consultation. Advisor Advisor e-mail and phone

17. Thank You! Website address 17