Financial Strategies Scenario Comparison Sample

Financial Strategies

A lifestyle report prepared for Dr. Anthony Rush and Mary Rush Proposed Strategy (Scenario Comparison) Presented by: Ross Mackereth For Evaluation Purposes Only ABC Financial Services Old Grammar School House School Gardens Shrewsbury, Shropshire SY1 2AJ Phone: 01743 248515 Fax: 01743 236214 Email: [email protected]

PLEASE READ CAREFULLY

Important Notes This report illustrates your financial lifestyle, or your hypothetical cash flow and its effects on your net worth. This analysis provides only broad, general guidelines, which may be helpful in shaping your thinking about your planning needs. It can serve as a guide for discussions with your professional advisers. The quality of this analysis is dependent upon the accuracy of data provided by you. Calculations contained in this analysis are estimates only. Actual results may vary substantially from the figures shown. All rates of return are hypothetical and are not a guarantee of future performance of any asset, including insurance or other financial products. All inflation rates are estimates provided by you. This analysis contains very specific computations concerning the value of your assets today. These computations are based on assumptions you provided concerning the value of your assets today and the rate at which the assets will appreciate. These assumptions must be carefully reviewed for their reasonableness. These assumptions are only a "best guess". The actual values, rates of growth, and tax rates may be significantly different from those illustrated. The actual taxes due may be significantly greater or smaller than those illustrated. No guarantee can be made regarding values and taxes when actual appreciation rates and tax rates cannot be known at this time. For illustrative purposes, many assumptions must be made concerning the sale of properties or the change of property ownership. These are for illustrative purposes and not to be considered as legal advice; only your solicitor should provide such advice. No legal or accounting advice is being rendered either by this report or through any other oral or written communications. Please discuss legal and accounting matters directly with your advisers in each of those areas. Because your planning concerns and goals may change in the future, periodically monitoring actual results and making appropriate adjustments are essential components of your program. Annual updating allows a year of estimated values to be replaced with actual results and can be very helpful in your determining whether your plans are on your desired course. Strategies may be proposed during the course of planning, including the acquisition of insurance and other financial products. When this occurs, additional information about the specific product (including a key features document, if required) will be provided for your review.

Presented by: Ross Mackereth For Evaluation Purposes Only

Version 2.0.0 c. 6.0.0.0 30 June, 2009 2 of 41

1 Scenario Comparison Comparing scenarios leads to proper planning. Is your plan on track, or should you change directions? Comparing different planning scenarios can help you decide which planning strategies and techniques work best for you. By comparing strategies, you can get the perspective you need in order to make better financial decisions. Scenario 1:

Proposed Strategy (Scenario Comparison)

Scenario 2:

Current Situation

Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 3 of 41

SCENARIO COMPARISON

Comparing Scenarios This comparison shows the key differences and similarities between the following two scenarios: Scenario 1: Scenario 2:

Proposed Strategy (Scenario Comparison) Current Situation

Major Scenario Differences The complete analyses of scenarios being compared should be reviewed for differences. The chart below shows the differences in these two scenarios: Scenario Name

Current Situation

Proposed Strategy (Scenario Comparison)

65

68

65

68

£250,000.00 Jun. 5, 2009 115

£400,000.00 Jun. 30, 2009 155

Dr. Anthony;Mary

Mary;Dr. Anthony

Not included Not included

Exists Exists

£200.00 0% No Jonathan's age 21

£700.00 3% Yes Jonathan's age 22

£150.00 Not included Not included

£650.00 Exists Exists

Incomes

Govt Benefits Income State Pension Info Start Age Govt Benefits Income State Pension Info Start Age Life Insurance

Life Insurance Policy - ABC Term Face Amount As Of Date Premium Life Insurance Policy - ABC Endowment Insureds Disability Insurance

Disability Insurance Policy - Personal PHI - Anthony Disability Insurance Policy - Personal PHI - Mary Transactions

Transaction - School Fees Contribution From Transfers Transfer Transfer Value Increase Percent Inflate From Today End Transaction - Retirement Plan Transaction From Transfers Salary Reduction From Transfer Employee Transfer Transaction - Cash In Share Portfolio Transaction - Save Surplus Income

The Planning Assumptions and the Confirmation of Facts pages can provide more details for the items included within a scenario.

Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 4 of 41

SCENARIO COMPARISON

Education Funding Compared Other planning needs may have a direct effect on your goals for education funding. Scenario 1: Proposed Strategy (Scenario Comparison) Education Funding

Provided by Other Sources Provided by Education Assets Shortage

0% 87% 13%

£90,000 60,000 30,000 0

2014

Education Assets Education Shortfall

2019

Other Sources

Consideration: The present value of the additional amounts needed for this scenario is £56,839 Scenario 2: Current Situation Education Funding

Provided by Other Sources Provided by Education Assets Shortage

0% 70% 30%

£90,000 60,000 30,000 0

2014

Education Assets Education Shortfall

2019

Other Sources

Consideration: The present value of the additional amounts needed for this scenario is £134,103

Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 5 of 41

SCENARIO COMPARISON

Education Funding Summary Scenario 1: Proposed Strategy (Scenario Comparison) Year

Annual Education Cost

Paid from Other Sources

Paid from Education Assets

2009 2010 2011 2012 2013

£29,750 54,060 57,304 60,742 64,386

£0 0 0 0 0

£29,750 54,060 57,304 60,742 64,386

£205,905 178,270 146,009 108,633 65,559

£0 0 0 0 0

2014 2015 2016 2017 2018

73,547 85,820 80,319 53,527 44,771

0 0 0 0 0

73,547 85,820 69,676 18,241 18,789

10,966 50,858 0 0 0

0 0 10,643 35,285 25,982

2019 2020 2021 2022 2023

34,772 18,034 19,116 20,263 12,529

0 0 0 0 0

18,378 18,034 19,116 20,263 9,480

983 2,984 4,597 2,051 0

16,395 0 0 0 3,049

Year

Annual Education Cost

Paid from Other Sources

Paid from Education Assets

2009 2010 2011 2012 2013

£29,750 54,060 57,304 60,742 64,386

£0 0 0 0 0

£29,750 54,060 57,304 60,742 64,386

£202,358 168,122 128,631 83,357 31,670

£0 0 0 0 0

2014 2015 2016 2017 2018

73,547 85,820 80,319 53,527 44,771

0 0 0 0 0

41,563 85,820 41,662 10,001 10,229

0 31,472 0 0 0

31,984 0 38,656 43,526 34,543

2019 2020 2021 2022 2023

34,772 18,034 19,116 20,263 12,529

0 0 0 0 0

10,463 10,705 10,955 6,540 0

0 0 0 0 0

24,309 7,328 8,161 13,723 12,529

1

Balance of Assets for2 Education

Education Shortage for Year

Scenario 2: Current Situation 1

1

2

Balance of Assets for2 Education

Education Shortage for Year

Assets designated for education are applied to the first education need. Based on the information provided, total education needs are £708,939. If you wish to pre-fund education costs in the event of death today, insurance death proceeds of £56,839 accumulating at 5% annually may fully fund the education needs illustrated above. Includes any planned deposits to Education Assets.

Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 6 of 41

SCENARIO COMPARISON

Lifestyle Living—Maintaining Your Lifestyle Cash Flow Objective • Pay all lifestyle expenses • After applying any education funds, pay any remaining education cost • Be able to fund specific needs and future puchases • Under no circumstances use assets designated "Do Not Use" for cash flow Scenario 1: Proposed Strategy (Scenario Comparison) Your Financial Lifestyle Italian Villa Jonathan Ed. Clara Ed. David Ed. David Ed. Jonathan Ed. Clara Ed. Lifestyle Expenses Today

Retirement

2043

Successfully funded through cash flow Cash flow was not sufficient without using assets designated as "Do Not Use"

Consideration: Scenario 1: Proposed Strategy (Scenario Comparison) had successful cash flow. Scenario 2: Current Situation Your Financial Lifestyle Italian Villa Jonathan Ed. Clara Ed. David Ed. David Ed. Jonathan Ed. Clara Ed. Lifestyle Expenses Today

Retirement

2043

Successfully funded through cash flow Cash flow was not sufficient without using assets designated as "Do Not Use"

Consideration: Scenario 2: Current Situation failed in October of 2014 The value of the shortfall today invested at 5%: Presented by: Ross Mackereth For Evaluation Purposes Only

£182,189 30 June, 2009 7 of 41

SCENARIO COMPARISON

Expected Income Scenario 1: Proposed Strategy (Scenario Comparison) Other1 Income

State Benefits

Earnings (Cash, Dividends)

Retirement Plan Distributions

Total Expected Income

Year

Salary

2009 2010 2011 2012 2013

£74,725 131,943 135,901 139,978 144,178

£4,881 8,609 8,858 9,114 9,171

£0 0 0 0 0

£0 0 0 0 0

£0 0 0 0 0

£79,606 140,552 144,759 149,093 153,349

2014 2015 2016 2017 2018

148,503 152,958 157,547 162,273 167,141

8,801 9,060 8,923 8,980 9,246

0 0 0 0 0

0 24,375 0 0 0

0 0 0 0 0

157,304 186,393 166,470 171,253 176,388

2019 2020 2021 2022 2023

172,156 177,320 182,640 188,119 193,763

9,249 9,136 9,410 9,692 9,983

0 0 0 0 0

26 0 0 0 0

0 0 0 0 0

181,431 186,456 192,050 197,811 203,746

R 2024 2025 2026 2027 2028

156,848 0 0 0 0

9,426 0 0 0 0

0 0 0 0 0

0 0 0 0 0

179,846 55,171 57,060 59,044 61,127

346,121 55,171 57,060 59,044 61,127

2029 2030 2031 2032 2033

0 0 0 0 0

0 0 0 0 0

0 0 0 1,955 12,082

0 0 0 0 0

63,315 65,611 68,023 70,555 73,213

63,315 65,611 68,023 72,510 85,296

2034 2035 2036 2037 2038

0 0 0 0 0

0 0 0 0 0

12,445 24,568 26,405 27,197 28,013

0 0 0 0 0

76,005 78,936 82,014 85,246 88,639

88,450 103,504 108,419 112,443 116,652

2039 2040 2041 2042 2043

0 0 0 0 0

0 0 0 0 0

28,853 29,719 30,611 31,529 32,475

0 0 0 0 0

92,202 95,943 99,871 103,995 108,326

121,055 125,662 130,481 135,524 140,801

1

Other Income includes any estimated tax refunds for the prior year. R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 8 of 41

SCENARIO COMPARISON

Expected Income (Continued) Scenario 2: Current Situation Other1 Income

State Benefits

Earnings (Cash, Dividends)

Retirement Plan Distributions

Total Expected Income

Year

Salary

2009 2010 2011 2012 2013

£74,725 131,943 135,901 139,978 144,178

£4,881 8,609 8,858 9,114 9,171

£0 0 0 0 0

£0 0 0 0 0

£0 0 0 0 0

£79,606 140,552 144,759 149,093 153,349

2014 2015 2016 2017 2018

148,503 152,958 157,547 162,273 167,141

8,801 9,060 8,923 8,980 9,246

0 0 0 0 0

0 24,375 0 0 0

0 0 0 0 0

157,304 186,393 166,470 171,253 176,388

2019 2020 2021 2022 2023

172,156 177,320 182,640 188,119 193,763

9,249 9,136 9,410 9,692 9,983

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

181,405 186,456 192,050 197,811 203,746

R 2024 2025 2026 2027 2028

156,848 0 0 0 0

9,426 0 0 0 0

0 0 0 0 0

0 0 0 0 489

122,253 45,677 47,566 49,550 51,633

288,527 45,677 47,566 49,550 52,122

2029 2030 2031 2032 2033

0 0 0 0 0

0 0 0 0 0

0 1,536 9,490 9,775 19,298

297 18 0 0 0

53,821 56,117 58,529 61,061 63,720

54,118 57,671 68,019 70,836 83,017

2034 2035 2036 2037 2038

0 0 0 0 0

0 0 0 0 0

20,741 21,363 22,004 22,664 23,344

0 0 0 0 0

66,511 69,442 72,520 75,752 79,145

87,252 90,806 94,524 98,416 102,489

2039 2040 2041 2042 2043

0 0 0 0 0

0 0 0 0 0

24,044 24,766 25,509 26,274 27,062

0 0 0 0 0

82,708 86,449 90,377 94,501 98,832

106,752 111,215 115,886 120,775 125,894

Note: Scenario 2: Current Situation failed in October of 2014

1

Other Income includes any estimated tax refunds for the prior year. R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 9 of 41

SCENARIO COMPARISON

Outgoing Payments Scenario 1: Proposed Strategy (Scenario Comparison)

Year

Education & Basic Specific Expenses Needs

Retirement Loan Plan Payments Contributions

Tax DiscrePayments tionary and1 Spending Withholdings

Total Outgoing Payments

2009 2010 2011 2012 2013

£27,790 48,936 50,271 51,511 52,522

£29,750 54,060 57,304 60,742 64,386

£6,535 10,966 10,602 10,602 11,330

£8,986 15,867 16,343 16,833 17,338

£0 0 0 0 0

£22,694 40,912 49,919 51,517 53,248

£95,755 170,741 184,439 191,205 198,825

2014 2015 2016 2017 2018

53,981 55,483 57,031 58,624 60,266

73,547 85,820 80,319 53,527 44,771

12,364 12,449 12,470 12,522 12,522

17,859 18,394 18,946 19,515 20,100

0 0 0 0 0

55,169 56,790 84,770 60,019 61,270

212,919 228,937 253,536 204,207 198,930

2019 2020 2021 2022 2023

61,957 63,699 65,493 67,341 69,244

34,772 18,034 19,116 20,263 12,529

12,511 12,455 12,449 12,449 12,449

20,703 21,324 21,964 22,623 23,301

0 0 0 0 0

62,681 64,622 66,591 68,695 70,888

192,624 180,134 185,612 191,370 188,411

R 2024 2025 2026 2027 2028

70,840 74,393 76,569 78,810 80,033

0 0 0 0 0

11,576 1,920 1,920 1,920 1,920

19,527 0 0 0 0

0 0 0 0 0

62,380 86,486 10,087 10,080 10,149

164,323 162,798 88,576 90,810 92,102

2029 2030 2031 2032 2033

81,636 84,085 86,608 89,206 91,882

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

10,221 10,311 10,405 10,501 10,991

93,777 96,316 98,933 101,627 104,794

2034 2035 2036 2037 2038

94,639 97,478 100,402 103,414 106,517

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

13,205 13,510 16,240 17,004 17,584

109,763 112,908 118,562 122,339 126,020

2039 2040 2041 2042 2043

109,712 113,004 116,394 119,886 123,482

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

18,197 18,848 19,539 20,272 21,052

129,830 133,772 137,853 142,078 146,454

1

All payroll withholding taxes plus additional tax payments (income and capital gains tax). Refunds are shown as other income in the year received. R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 10 of 41

SCENARIO COMPARISON

Outgoing Payments (Continued) Scenario 2: Current Situation

Year

Education & Basic Specific Expenses Needs

Retirement Loan Plan Payments Contributions

Tax DiscrePayments tionary and1 Spending Withholdings

Total Outgoing Payments

2009 2010 2011 2012 2013

£26,320 46,416 47,751 48,991 50,002

£29,750 54,060 57,304 60,742 64,386

£6,535 10,966 10,602 10,602 10,614

£5,486 9,687 9,978 10,277 10,585

£12,671 23,140 23,191 30,152 25,757

£22,694 41,763 51,298 52,765 54,316

£103,456 186,032 200,124 213,529 215,660

2014 2015 2016 2017 2018

51,461 52,963 54,511 56,104 57,746

73,547 85,820 80,319 53,527 44,771

12,250 12,461 12,499 12,522 12,522

10,903 11,230 11,567 11,914 12,271

10,927 25,906 7,226 0 0

55,946 57,399 85,210 60,843 62,615

215,034 245,780 251,332 194,911 189,927

2019 2020 2021 2022 2023

59,437 61,179 62,973 64,821 66,724

34,772 18,034 19,116 20,263 12,529

12,511 12,455 12,449 12,449 12,449

12,640 13,019 13,409 13,812 14,226

10,316 24,592 25,244 25,886 35,465

64,496 66,432 68,427 70,482 72,599

194,171 195,711 201,618 207,712 213,992

R 2024 2025 2026 2027 2028

68,840 73,913 76,089 78,330 79,833

0 0 0 0 0

11,576 1,920 1,920 1,920 1,920

11,737 0 0 0 0

30,877 0 0 0 0

63,892 86,531 6,412 6,225 6,109

186,922 162,364 84,421 86,475 87,862

2029 2030 2031 2032 2033

81,636 84,085 86,608 89,206 91,882

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

5,988 6,116 6,714 8,641 9,056

89,545 92,121 95,242 99,767 102,858

2034 2035 2036 2037 2038

94,639 97,478 100,402 103,414 106,517

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

11,339 12,028 12,576 13,152 13,757

107,897 111,425 114,898 118,486 122,194

2039 2040 2041 2042 2043

109,712 113,004 116,394 119,886 123,482

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

14,394 15,066 15,775 16,521 17,305

126,027 129,990 134,089 138,326 142,707

Note: Scenario 2: Current Situation failed in October of 2014

1

All payroll withholding taxes plus additional tax payments (income and capital gains tax). Refunds are shown as other income in the year received. R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 11 of 41

SCENARIO COMPARISON

Comparison of Maintaining Your Lifestyle Scenario 2: Proposed Strategy (Scenario Comparison)

Scenario 2: Current Situation

Year

Expected Income

Total Outgoing Payments

Year

Expected Income

Total Outgoing Payments

2009 2010 2011 2012 2013

£79,606 140,552 144,759 149,093 153,349

£95,755 170,741 184,439 191,205 198,825

2009 2010 2011 2012 2013

£79,606 140,552 144,759 149,093 153,349

£103,456 186,032 200,124 213,529 215,660

2014 2015 2016 2017 2018

157,304 186,393 166,470 171,253 176,388

212,919 228,937 253,536 204,207 198,930

2014 2015 2016 2017 2018

157,304 186,393 166,470 171,253 176,388

215,034 245,780 251,332 194,911 189,927

2019 2020 2021 2022 2023

181,431 186,456 192,050 197,811 203,746

192,624 180,134 185,612 191,370 188,411

2019 2020 2021 2022 2023

181,405 186,456 192,050 197,811 203,746

194,171 195,711 201,618 207,712 213,992

R 2024 2025 2026 2027 2028

346,121 55,171 57,060 59,044 61,127

164,323 162,798 88,576 90,810 92,102

R 2024 2025 2026 2027 2028

288,527 45,677 47,566 49,550 52,122

186,922 162,364 84,421 86,475 87,862

2029 2030 2031 2032 2033

63,315 65,611 68,023 72,510 85,296

93,777 96,316 98,933 101,627 104,794

2029 2030 2031 2032 2033

54,118 57,671 68,019 70,836 83,017

89,545 92,121 95,242 99,767 102,858

2034 2035 2036 2037 2038

88,450 103,504 108,419 112,443 116,652

109,763 112,908 118,562 122,339 126,020

2034 2035 2036 2037 2038

87,252 90,806 94,524 98,416 102,489

107,897 111,425 114,898 118,486 122,194

2039 2040 2041 2042 2043

121,055 125,662 130,481 135,524 140,801

129,830 133,772 137,853 142,078 146,454

2039 2040 2041 2042 2043

106,752 111,215 115,886 120,775 125,894

126,027 129,990 134,089 138,326 142,707

Note: Scenario 2: Current Situation failed in October of 2014

R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 12 of 41

SCENARIO COMPARISON

Lifestyle Living—Putting Retirement First Cash Flow Objective • Pay all lifestyle expenses • Use only assets designated for education, to fund education needs • Under no circumstances use assets designated "Do Not Use" for cash flow Scenario 1: Proposed Strategy (Scenario Comparison) Would there be Sufficient Cash Flow for Your Retirement? Italian Villa Jonathan Ed. Clara Ed. David Ed. David Ed. Jonathan Ed. Clara Ed. Lifestyle Expenses Today

Retirement

2043

Successfully funded through cash flow or using funds designated for this purpose Cash flow was not sufficient without using assets designated as "Do Not Use"

Consideration: Scenario 1: Proposed Strategy (Scenario Comparison) had successful cash flow. Scenario 2: Current Situation Would there be Sufficient Cash Flow for Your Retirement? Italian Villa Jonathan Ed. Clara Ed. David Ed. David Ed. Jonathan Ed. Clara Ed. Lifestyle Expenses Today

Retirement

2043

Successfully funded through cash flow or using funds designated for this purpose Cash flow was not sufficient without using assets designated as "Do Not Use"

Consideration: Scenario 2: Current Situation failed in January of 2016 The value of the shortfall today invested at 5%:

Presented by: Ross Mackereth For Evaluation Purposes Only

£135,937

30 June, 2009 13 of 41

SCENARIO COMPARISON

Lifestyle Living—Putting Retirement First (Continued) Scenario 2: Proposed Strategy (Scenario Comparison)

Scenario 2: Current Situation

Year

Expected Income

Total Outgoing Payments

Year

Expected Income

Total Outgoing Payments

2009 2010 2011 2012 2013

£79,606 140,552 144,759 149,093 153,349

£95,755 170,741 184,439 191,205 198,825

2009 2010 2011 2012 2013

£79,606 140,552 144,759 149,093 153,349

£103,456 186,032 200,124 213,529 215,660

2014 2015 2016 2017 2018

157,304 186,393 166,470 171,253 176,388

212,919 228,937 253,514 204,146 199,405

2014 2015 2016 2017 2018

157,304 186,393 166,470 171,253 176,388

228,851 245,789 270,845 222,712 219,035

2019 2020 2021 2022 2023

181,431 186,456 192,050 197,811 203,746

193,650 181,729 187,391 193,227 190,348

2019 2020 2021 2022 2023

181,405 186,456 192,050 197,811 203,746

214,053 202,422 209,099 220,681 224,731

R 2024 2025 2026 2027 2028

346,121 55,171 57,060 59,044 61,127

166,375 164,964 90,083 92,390 93,761

R 2024 2025 2026 2027 2028

288,527 45,677 47,566 49,550 52,122

186,922 162,364 84,421 86,475 87,862

2029 2030 2031 2032 2033

63,315 65,611 68,023 72,510 85,296

95,518 98,142 100,849 103,638 106,904

2029 2030 2031 2032 2033

54,118 57,671 68,019 70,836 83,017

89,545 92,121 95,242 99,767 102,858

2034 2035 2036 2037 2038

88,450 103,504 108,419 112,443 116,652

111,978 115,232 121,001 124,898 128,706

2034 2035 2036 2037 2038

87,252 90,806 94,524 98,416 102,489

107,897 111,425 114,898 118,486 122,194

2039 2040 2041 2042 2043

121,055 125,662 130,481 135,524 140,801

132,648 136,729 140,956 145,434 150,087

2039 2040 2041 2042 2043

106,752 111,215 115,886 120,775 125,894

126,027 129,990 134,089 138,326 142,707

Note: Scenario 2: Current Situation failed in January of 2016

R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 14 of 41

SCENARIO COMPARISON

Lifestyle Living—Effects on Net Worth Scenario 1: Proposed Strategy (Scenario Comparison) Your future net worth is based on your cash flow. It assumes that everything goes as planned and you both live until 0, the first year cash flow failure is experienced. Net Worth £2,400,000 2,100,000 1,800,000 1,500,000 1,200,000 900,000 600,000 300,000 0

2014

2019

2024

2029

2034

2039

Net Worth

Scenario 2: Current Situation Your future net worth is based on your cash flow. It assumes that everything goes as planned and you both live until 2014, the first year cash flow failure is experienced. Net Worth £1,800,000 1,500,000 1,200,000 900,000 600,000 300,000 0

2014

2019

2024

2029

2034

2039

Net Worth

Scenario 2: Current Situation failed in October of 2014

Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 15 of 41

SCENARIO COMPARISON

Lifestyle Living—Effects on Net Worth (Continued) Scenario 1: Proposed Strategy (Scenario Comparison) Year

End of Year1 Assets

Scenario 2: Current Situation

End of Year Liabilities

Net Worth

Year

End of Year1 Assets

2009 £1,233,413 2010 1,238,090 2011 1,232,150 2012 1,228,712 2013 1,213,960

End of Year Liabilities

Net Worth

2009 2010 2011 2012 2013

£1,245,696 1,274,774 1,295,294 1,326,865 1,347,420

£193,117 192,773 192,773 192,773 195,938

£1,052,579 1,082,002 1,102,521 1,134,092 1,151,482

£193,117 £1,040,296 192,773 1,045,317 192,773 1,039,377 192,773 1,035,940 192,773 1,021,187

2014 2015 2016 2017 2018

1,359,811 1,356,792 1,332,645 1,362,284 1,404,036

200,164 200,164 200,773 200,773 200,773

1,159,646 1,156,628 1,131,873 1,161,512 1,203,263

2014 2015 2016 2017 2018

1,219,431 1,189,904 1,201,380 1,247,224 1,295,049

200,773 200,164 200,773 200,773 200,773

1,010,398 973,031 933,208 956,082 991,056

2019 2020 2021 2022 2023

1,459,195 1,535,264 1,615,763 1,700,482 1,798,659

200,490 200,164 200,164 200,164 200,164

1,258,705 1,335,099 1,415,599 1,500,318 1,598,495

2019 2020 2021 2022 2023

1,345,946 1,398,009 1,452,339 1,509,038 1,568,217

200,490 200,164 200,164 200,164 200,164

1,028,871 1,072,344 1,117,767 1,165,227 1,214,821

R 2024 2025 2026 2027 2028

1,475,683 1,420,037 1,440,403 1,460,767 1,482,151

8,000 8,000 8,000 8,000 8,000

1,467,683 1,412,037 1,432,403 1,452,767 1,474,151

R 2024 2025 2026 2027 2028

1,373,921 1,302,200 1,309,405 1,315,961 1,323,062

8,000 8,000 8,000 8,000 8,000

1,204,643 1,132,921 1,140,126 1,146,683 1,153,784

2029 2030 2031 2032 2033

1,504,323 1,526,507 1,548,706 1,572,885 1,607,261

8,000 8,000 8,000 8,000 8,000

1,496,323 1,518,507 1,540,706 1,564,885 1,599,261

2029 2030 2031 2032 2033

1,330,099 1,358,698 1,401,821 1,446,423 1,492,555

8,000 8,000 8,000 8,000 8,000

1,160,821 1,168,842 1,185,431 1,201,790 1,228,769

2034 2035 2036 2037 2038

1,640,570 1,686,834 1,733,801 1,782,507 1,833,307

8,000 8,000 8,000 8,000 8,000

1,632,570 1,678,834 1,725,801 1,774,507 1,825,307

2034 2035 2036 2037 2038

1,540,271 1,589,626 1,640,677 1,693,484 1,748,108

8,000 8,000 8,000 8,000 8,000

1,256,527 1,285,950 1,317,315 1,350,740 1,386,348

2039 2040 2041 2042 2043

1,886,349 1,941,792 1,999,810 2,060,587 2,124,322

8,000 8,000 8,000 8,000 8,000

1,878,349 1,933,792 1,991,810 2,052,587 2,116,322

2039 2040 2041 2042 2043

1,804,670 1,863,234 1,923,823 1,986,510 2,051,569

8,000 8,000 8,000 8,000 8,000

1,424,281 1,464,685 1,507,706 1,553,496 1,602,220

2

Note: Scenario 2: Current Situation failed in October of 2014

Your change in net worth each year is the direct effect of your total cash flow. This illustration of your total net worth over time effectively compares the success of your cash flow planning. 1

Assets equal total income less outgoing payments plus net effects of cash flow plus existing assets. 2 Cash Flow Failure-Incoming cash flow plus any available assets remaining were insufficient to pay outgoing payments. Any assets remaining are those assets that you marked "Do Not Use." R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 16 of 41

SCENARIO COMPARISON

Survivor's Lifestyle If Dr. Anthony Dies Cash Flow Objective if Dr. Anthony Died Today • Pay all lifestyle expenses • Use only assets designated for education, to fund education needs • Calculate separately any additional needs for education, specific needs, or future purchases • Under no circumstances use assets designated "Do Not Use" for cash flow Scenario 1: Proposed Strategy (Scenario Comparison) Mary's Financial Lifestyle if Dr. Anthony Dies Italian Villa Jonathan Ed. Clara Ed. David Ed. David Ed. Jonathan Ed. Clara Ed. Lifestyle Expenses Today

Retirement

2044

Successfully funded through cash flow or using funds designated for this purpose Cash flow was not sufficient without using assets designated as "Do Not Use"

Consideration: Scenario 1: Proposed Strategy (Scenario Comparison) had successful cash flow. Scenario 2: Current Situation Mary's Financial Lifestyle if Dr. Anthony Dies Italian Villa Jonathan Ed. Clara Ed. David Ed. David Ed. Jonathan Ed. Clara Ed. Lifestyle Expenses Today

Retirement

2044

Successfully funded through cash flow or using funds designated for this purpose Cash flow was not sufficient without using assets designated as "Do Not Use"

Consideration: Scenario 2: Current Situation failed in August of 2022 The value of the shortfall today invested at 5%: Presented by: Ross Mackereth For Evaluation Purposes Only

£130,254 30 June, 2009 17 of 41

SCENARIO COMPARISON

Expected Income if Dr. Anthony Dies Scenario 1: Proposed Strategy (Scenario Comparison) Other1 Income

State Benefits

Earnings (Cash, Dividends)

Retirement Plan Distributions

Total Expected Income

Year

Salary

2009 2010 2011 2012 2013

£14,725 8,343 8,593 8,851 9,117

£4,881 8,609 8,858 9,114 9,171

£0 0 0 0 0

£0 0 0 0 0

£221,700 11,970 12,568 13,197 13,857

£241,306 28,922 30,020 31,162 32,145

2014 2015 2016 2017 2018

9,390 9,672 9,962 10,261 10,569

8,801 9,060 8,923 8,980 9,246

0 0 0 0 0

0 24,375 0 0 0

14,550 15,277 16,041 16,843 17,685

32,741 58,384 34,926 36,084 37,500

2019 2020 2021 2022 2023

10,886 11,212 11,549 11,895 12,252

9,249 9,136 9,410 9,692 9,983

0 0 0 0 0

26 0 0 0 0

18,569 19,498 20,473 21,496 22,571

38,730 39,846 41,431 43,084 44,806

R 2024 2025 2026 2027 2028

1,052 0 0 0 0

9,426 0 0 0 0

0 0 0 0 0

0 0 0 0 0

41,689 37,999 39,899 41,894 43,989

52,166 37,999 39,899 41,894 43,989

2029 2030 2031 2032 2033

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

46,188 48,498 50,923 53,469 56,142

46,188 48,498 50,923 53,469 56,142

2034 2035 2036 2037 2038

0 0 0 0 0

0 0 0 0 0

0 11,750 13,202 13,599 14,006

0 0 0 0 0

58,949 61,897 64,992 68,241 71,653

58,949 73,647 78,194 81,840 85,660

2039 2040 2041 2042 2043

0 0 0 0 0

0 0 0 0 0

14,427 14,859 15,305 15,764 16,237

0 0 0 0 0

75,236 78,998 82,948 87,095 91,450

89,663 93,857 98,253 102,859 107,687

2044

0

0

16,724

0

96,022

112,747

1

Other Income includes any estimated tax refunds for the prior year. R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 18 of 41

SCENARIO COMPARISON

Expected Income if Dr. Anthony Dies (Continued) Scenario 2: Current Situation Other1 Income

State Benefits

Earnings (Cash, Dividends)

Retirement Plan Distributions

Total Expected Income

Year

Salary

2009 2010 2011 2012 2013

£14,725 8,343 8,593 8,851 9,117

£4,881 8,609 8,858 9,114 9,171

£0 0 0 0 0

£0 0 0 0 0

£221,700 11,970 12,568 13,197 13,857

£241,306 28,922 30,020 31,162 32,145

2014 2015 2016 2017 2018

9,390 9,672 9,962 10,261 10,569

8,801 9,060 8,923 8,980 9,246

0 0 0 0 0

0 24,375 0 0 0

14,550 15,277 16,041 16,843 17,685

32,741 58,384 34,926 36,084 37,500

2019 2020 2021 2022 2023

10,886 11,212 11,549 11,895 12,252

9,249 9,136 9,410 9,692 9,983

0 0 0 0 0

0 0 0 0 0

18,569 19,498 20,473 21,496 22,571

38,705 39,846 41,431 43,084 44,806

R 2024 2025 2026 2027 2028

1,052 0 0 0 0

9,426 0 0 0 0

0 0 0 0 0

294 238 84 0 0

41,689 37,999 39,899 41,894 43,989

52,460 38,237 39,984 41,894 43,989

2029 2030 2031 2032 2033

0 0 0 0 0

0 0 0 0 0

0 0 0 0 9,229

0 0 0 0 0

46,188 48,498 50,923 53,469 56,142

46,188 48,498 50,923 53,469 65,372

2034 2035 2036 2037 2038

0 0 0 0 0

0 0 0 0 0

10,370 10,682 11,002 11,332 11,672

0 0 0 0 0

58,949 61,897 64,992 68,241 71,653

69,320 72,578 75,994 79,573 83,325

2039 2040 2041 2042 2043

0 0 0 0 0

0 0 0 0 0

12,022 12,383 12,754 13,137 13,531

0 0 0 0 0

75,236 78,998 82,948 87,095 91,450

87,258 91,381 95,702 100,232 104,981

2044

0

0

13,937

0

96,022

109,959

Note: Scenario 2: Current Situation failed in August of 2022

1

Other Income includes any estimated tax refunds for the prior year. R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 19 of 41

SCENARIO COMPARISON

Outgoing Payments if Dr. Anthony Dies Scenario 1: Proposed Strategy (Scenario Comparison)

Year

Education & Basic Specific Expenses Needs

Retirement Loan Plan Payments Contributions

Tax DiscrePayments tionary and1 Spending Withholdings

Total Outgoing Payments

2009 2010 2011 2012 2013

£25,690 44,736 46,071 47,446 48,862

£29,750 54,060 57,304 60,742 64,386

£6,535 12,412 12,522 12,522 12,522

£1,486 417 430 443 456

£0 0 0 0 0

£3,578 5,113 20,416 20,538 20,633

£67,039 116,739 136,742 141,690 146,860

2014 2015 2016 2017 2018

50,321 51,823 53,371 54,964 56,606

73,547 85,820 80,319 53,527 44,771

12,522 12,522 12,522 12,522 12,522

470 484 498 513 528

0 0 0 0 0

20,520 19,430 22,142 17,833 16,078

157,379 170,079 168,852 139,360 130,506

2019 2020 2021 2022 2023

58,297 60,039 61,833 63,681 65,584

34,772 18,034 19,116 20,263 12,529

12,522 12,522 12,522 12,522 12,522

544 561 577 595 613

0 0 0 0 0

14,786 14,107 13,338 12,597 11,795

120,922 105,263 107,387 109,658 103,043

R 2024 2025 2026 2027 2028

64,676 55,202 56,858 58,564 60,321

0 0 0 0 0

11,639 1,920 1,920 1,920 1,920

53 0 0 0 0

0 0 0 0 0

10,004 76,683 8,400 8,494 8,665

86,371 133,805 67,178 68,978 70,906

2029 2030 2031 2032 2033

62,130 63,994 65,914 67,891 69,928

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

8,847 9,039 9,242 9,458 9,689

72,897 74,953 77,076 79,270 81,537

2034 2035 2036 2037 2038

72,026 74,187 76,412 78,705 81,066

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

9,934 10,196 12,886 13,612 14,159

83,880 86,303 91,218 94,236 97,144

2039 2040 2041 2042 2043

83,498 86,003 88,583 91,240 93,978

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

14,893 15,690 16,555 17,492 18,508

100,311 103,613 107,058 110,653 114,405

2044

96,797

0

1,920

0

0

19,606

118,323

1

All payroll withholding taxes plus additional tax payments (income and capital gains tax). Refunds are shown as other income in the year received. R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 20 of 41

SCENARIO COMPARISON

Outgoing Payments if Dr. Anthony Dies (Continued) Scenario 2: Current Situation

Year

Education & Basic Specific Expenses Needs

Retirement Loan Plan Payments Contributions

Tax DiscrePayments tionary and1 Spending Withholdings

Total Outgoing Payments

2009 2010 2011 2012 2013

£25,360 44,496 45,831 47,206 48,622

£29,750 54,060 57,304 60,742 64,386

£6,535 12,369 12,522 12,522 12,522

£986 417 430 443 456

£8,000 0 0 0 0

£3,578 3,983 16,439 16,420 16,369

£74,209 115,325 132,525 137,333 142,355

2014 2015 2016 2017 2018

50,081 51,583 53,131 54,724 56,366

73,547 85,820 80,319 53,527 44,771

12,522 12,522 12,522 12,522 12,522

470 484 498 513 528

0 0 0 0 0

16,101 14,840 17,388 12,908 10,977

152,720 165,250 163,858 134,195 125,165

2019 2020 2021 2022 2023

58,057 59,799 61,593 63,441 65,344

34,772 18,034 19,116 20,263 12,529

12,522 12,522 12,522 12,522 12,522

544 561 577 595 613

0 0 0 0 0

9,502 8,395 7,998 7,635 7,267

115,398 99,311 101,807 104,456 98,275

R 2024 2025 2026 2027 2028

64,656 55,202 56,858 58,564 60,321

0 0 0 0 0

11,639 1,920 1,920 1,920 1,920

53 0 0 0 0

0 0 0 0 0

6,455 75,217 5,700 5,848 6,174

82,802 132,339 64,478 66,332 68,415

2029 2030 2031 2032 2033

62,130 63,994 65,914 67,891 69,928

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

6,527 6,899 7,290 7,703 8,138

70,577 72,813 75,124 77,515 79,986

2034 2035 2036 2037 2038

72,026 74,187 76,412 78,705 81,066

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

10,442 11,153 11,729 12,333 12,968

84,388 87,260 90,061 92,958 95,954

2039 2040 2041 2042 2043

83,498 86,003 88,583 91,240 93,978

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

13,636 14,338 15,078 15,855 16,940

99,053 102,261 105,581 109,016 112,837

2044

96,797

0

1,920

0

0

18,165

116,881

Note: Scenario 2: Current Situation failed in August of 2022

1

All payroll withholding taxes plus additional tax payments (income and capital gains tax). Refunds are shown as other income in the year received. R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 21 of 41

SCENARIO COMPARISON

Comparison if Dr. Anthony Dies Scenario 1: Proposed Strategy (Scenario Comparison)

Scenario 2: Current Situation

Year

Expected Income

Total Outgoing Payments

Year

Expected Income

Total Outgoing Payments

2009 2010 2011 2012 2013

£241,306 28,922 30,020 31,162 32,145

£67,039 116,739 136,742 141,690 146,860

2009 2010 2011 2012 2013

£241,306 28,922 30,020 31,162 32,145

£74,209 115,325 132,525 137,333 142,355

2014 2015 2016 2017 2018

32,741 58,384 34,926 36,084 37,500

157,379 170,079 168,852 139,360 130,506

2014 2015 2016 2017 2018

32,741 58,384 34,926 36,084 37,500

152,720 165,250 163,858 134,195 125,165

2019 2020 2021 2022 2023

38,730 39,846 41,431 43,084 44,806

120,922 105,263 107,387 109,658 103,043

2019 2020 2021 2022 2023

38,705 39,846 41,431 43,084 44,806

115,398 99,311 101,807 104,456 98,275

R 2024 2025 2026 2027 2028

52,166 37,999 39,899 41,894 43,989

86,371 133,805 67,178 68,978 70,906

R 2024 2025 2026 2027 2028

52,460 38,237 39,984 41,894 43,989

82,802 132,339 64,478 66,332 68,415

2029 2030 2031 2032 2033

46,188 48,498 50,923 53,469 56,142

72,897 74,953 77,076 79,270 81,537

2029 2030 2031 2032 2033

46,188 48,498 50,923 53,469 65,372

70,577 72,813 75,124 77,515 79,986

2034 2035 2036 2037 2038

58,949 73,647 78,194 81,840 85,660

83,880 86,303 91,218 94,236 97,144

2034 2035 2036 2037 2038

69,320 72,578 75,994 79,573 83,325

84,388 87,260 90,061 92,958 95,954

2039 2040 2041 2042 2043

89,663 93,857 98,253 102,859 107,687

100,311 103,613 107,058 110,653 114,405

2039 2040 2041 2042 2043

87,258 91,381 95,702 100,232 104,981

99,053 102,261 105,581 109,016 112,837

2044

112,747

118,323

2044

109,959

116,881

Note: Scenario 2: Current Situation failed in August of 2022

R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 22 of 41

SCENARIO COMPARISON

Survivor's Lifestyle If Mary Dies Cash Flow Objective if Mary Died Today • Pay all lifestyle expenses • Use only assets designated for education, to fund education needs • Calculate separately any additional needs for education, specific needs, or future purchases • Under no circumstances use assets designated "Do Not Use" for cash flow Scenario 1: Proposed Strategy (Scenario Comparison) Dr. Anthony's Financial Lifestyle if Mary Dies Italian Villa Jonathan Ed. Clara Ed. David Ed. David Ed. Jonathan Ed. Clara Ed. Lifestyle Expenses Today

Retirement

2044

Successfully funded through cash flow or using funds designated for this purpose Cash flow was not sufficient without using assets designated as "Do Not Use"

Consideration: Scenario 1: Proposed Strategy (Scenario Comparison) had successful cash flow. Scenario 2: Current Situation Dr. Anthony's Financial Lifestyle if Mary Dies Italian Villa Jonathan Ed. Clara Ed. David Ed. David Ed. Jonathan Ed. Clara Ed. Lifestyle Expenses Today

Retirement

2044

Successfully funded through cash flow or using funds designated for this purpose Cash flow was not sufficient without using assets designated as "Do Not Use"

Consideration: Scenario 2: Current Situation had successful cash flow. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 23 of 41

SCENARIO COMPARISON

Expected Income if Mary Dies Scenario 1: Proposed Strategy (Scenario Comparison) Other1 Income

State Benefits

Earnings (Cash, Dividends)

Retirement Plan Distributions

Total Expected Income

Year

Salary

2009 2010 2011 2012 2013

£70,675 123,600 127,308 131,127 135,061

£3,997 6,798 7,002 7,212 7,428

£0 0 0 0 0

£0 0 0 0 0

£24,032 3,636 3,818 4,009 4,209

£98,704 134,034 138,128 142,348 146,699

2014 2015 2016 2017 2018

139,113 143,286 147,585 152,012 156,573

7,651 7,881 8,117 8,361 8,612

0 0 0 0 0

0 24,375 0 0 0

4,420 4,641 4,873 5,116 5,372

151,184 180,183 160,575 165,490 170,557

2019 2020 2021 2022 2023

161,270 166,108 171,091 176,224 181,511

8,870 9,136 9,410 9,692 9,983

0 0 0 0 0

26 0 0 0 0

5,641 5,923 6,219 6,530 6,857

175,806 181,167 186,720 192,446 198,350

R 2024 2025 2026 2027 2028

155,797 0 0 0 0

9,426 0 0 0 0

0 0 0 0 0

0 0 0 0 0

169,057 49,615 51,227 52,919 54,696

334,279 49,615 51,227 52,919 54,696

2029 2030 2031 2032 2033

0 0 0 0 0

0 0 0 0 0

0 0 0 1,955 12,082

0 0 0 0 0

56,562 58,521 60,578 62,738 65,006

56,562 58,521 60,578 64,693 77,088

2034 2035 2036 2037 2038

0 0 0 0 0

0 0 0 0 0

12,445 12,818 13,202 13,599 14,006

0 0 0 0 0

67,387 69,887 72,513 75,269 78,164

79,832 82,705 85,715 88,868 92,170

2039 2040 2041 2042 2043

0 0 0 0 0

0 0 0 0 0

14,427 14,859 15,305 15,764 16,237

0 0 0 0 0

81,203 84,394 87,745 91,263 94,957

95,630 99,253 103,050 107,027 111,194

2044

0

0

16,724

0

98,836

115,560

1

Other Income includes any estimated tax refunds for the prior year. R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 24 of 41

SCENARIO COMPARISON

Expected Income if Mary Dies (Continued) Scenario 2: Current Situation Other1 Income

State Benefits

Earnings (Cash, Dividends)

Retirement Plan Distributions

Total Expected Income

Year

Salary

2009 2010 2011 2012 2013

£70,675 123,600 127,308 131,127 135,061

£3,997 6,798 7,002 7,212 7,428

£0 0 0 0 0

£0 0 0 0 0

£24,032 3,636 3,818 4,009 4,209

£98,704 134,034 138,128 142,348 146,699

2014 2015 2016 2017 2018

139,113 143,286 147,585 152,012 156,573

7,651 7,881 8,117 8,361 8,612

0 0 0 0 0

0 24,375 0 0 0

4,420 4,641 4,873 5,116 5,372

151,184 180,183 160,575 165,490 170,557

2019 2020 2021 2022 2023

161,270 166,108 171,091 176,224 181,511

8,870 9,136 9,410 9,692 9,983

0 0 0 0 0

0 0 0 0 0

5,641 5,923 6,219 6,530 6,857

175,781 181,167 186,720 192,446 198,350

R 2024 2025 2026 2027 2028

155,797 0 0 0 0

9,426 0 0 0 0

0 0 0 0 0

0 0 0 0 0

111,463 40,122 41,733 43,426 45,202

276,685 40,122 41,733 43,426 45,202

2029 2030 2031 2032 2033

0 0 0 0 0

0 0 0 0 0

0 1,536 9,490 9,775 10,068

0 0 0 0 0

47,068 49,027 51,084 53,244 55,512

47,068 50,563 60,575 63,019 65,580

2034 2035 2036 2037 2038

0 0 0 0 0

0 0 0 0 0

10,370 10,682 11,002 11,332 11,672

0 0 0 0 0

57,893 60,393 63,019 65,775 68,670

68,264 71,075 74,021 77,107 80,342

2039 2040 2041 2042 2043

0 0 0 0 0

0 0 0 0 0

12,022 12,383 12,754 13,137 13,531

0 0 0 0 0

71,709 74,900 78,251 81,769 85,463

83,731 87,283 91,005 94,906 98,994

2044

0

0

13,937

0

89,342

103,279

1

Other Income includes any estimated tax refunds for the prior year. R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 25 of 41

SCENARIO COMPARISON

Outgoing Payments if Mary Dies Scenario 1: Proposed Strategy (Scenario Comparison)

Year

Education & Basic Specific Expenses Needs

Retirement Loan Plan Payments Contributions

Tax DiscrePayments tionary and1 Spending Withholdings

Total Outgoing Payments

2009 2010 2011 2012 2013

£26,470 46,296 47,631 49,006 50,422

£29,750 54,060 57,304 60,742 64,386

£6,535 10,966 12,159 12,436 12,449

£8,784 15,450 15,913 16,391 16,883

£0 0 0 0 0

£22,357 46,610 61,408 63,684 65,738

£93,896 173,382 194,415 202,258 209,878

2014 2015 2016 2017 2018

51,881 53,383 54,931 56,524 58,166

73,547 85,820 80,319 53,527 44,771

12,449 12,449 12,470 12,522 12,522

17,389 17,911 18,448 19,002 19,572

0 0 0 0 0

67,758 69,716 98,430 73,720 75,256

223,023 239,279 264,598 215,295 210,287

2019 2020 2021 2022 2023

59,857 61,599 63,393 65,241 67,144

34,772 18,034 19,116 20,263 12,529

12,511 12,455 12,449 12,449 12,449

20,159 20,764 21,386 22,028 22,689

0 0 0 0 0

77,009 79,505 82,022 84,720 87,537

204,308 192,356 198,366 204,700 202,347

R 2024 2025 2026 2027 2028

66,156 55,202 56,858 58,564 60,321

0 0 0 0 0

11,576 1,920 1,920 1,920 1,920

19,475 0 0 0 0

0 0 0 0 0

80,676 103,478 30,571 31,248 32,109

177,882 160,600 89,349 91,731 94,350

2029 2030 2031 2032 2033

62,130 63,994 65,914 67,891 69,928

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

33,009 33,950 34,932 35,961 37,821

97,060 99,864 102,766 105,772 109,669

2034 2035 2036 2037 2038

72,026 74,187 76,412 78,705 81,066

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

43,162 44,686 46,276 47,945 49,696

117,108 120,793 124,609 128,570 132,682

2039 2040 2041 2042 2043

83,498 86,003 88,583 91,240 93,978

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

51,536 53,468 55,499 57,633 59,877

136,954 141,391 146,001 150,793 155,775

2044

96,797

0

1,920

0

0

62,238

160,955

1

All payroll withholding taxes plus additional tax payments (income and capital gains tax). Refunds are shown as other income in the year received. R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 26 of 41

SCENARIO COMPARISON

Outgoing Payments if Mary Dies (Continued) Scenario 2: Current Situation

Year

Education & Basic Specific Expenses Needs

Retirement Loan Plan Payments Contributions

Tax DiscrePayments tionary and1 Spending Withholdings

Total Outgoing Payments

2009 2010 2011 2012 2013

£25,360 44,496 45,831 47,206 48,622

£29,750 54,060 57,304 60,742 64,386

£6,535 10,966 10,602 12,301 12,449

£5,284 9,270 9,548 9,835 10,130

£16,283 15,253 16,420 15,602 16,509

£22,357 45,561 58,919 60,878 62,929

£105,569 179,605 198,624 206,564 215,024

2014 2015 2016 2017 2018

50,081 51,583 53,131 54,724 56,366

73,547 85,820 80,319 53,527 44,771

12,487 12,461 12,499 12,522 12,522

10,433 10,746 11,069 11,401 11,743

7,366 18,404 4,549 0 0

64,793 66,483 94,524 69,426 70,618

218,706 245,498 256,090 201,601 196,021

2019 2020 2021 2022 2023

58,057 59,799 61,593 63,441 65,344

34,772 18,034 19,116 20,263 12,529

12,511 12,455 12,449 12,449 12,449

12,095 12,458 12,832 13,217 13,613

6,958 16,946 17,331 17,698 26,994

72,373 74,239 76,401 78,695 81,060

196,767 193,931 199,721 205,762 211,988

R 2024 2025 2026 2027 2028

64,656 55,202 56,858 58,564 60,321

0 0 0 0 0

11,576 1,920 1,920 1,920 1,920

11,685 0 0 0 0

31,912 0 0 0 0

73,569 94,323 14,185 14,238 14,468

193,397 151,445 72,963 74,722 76,708

2029 2030 2031 2032 2033

62,130 63,994 65,914 67,891 69,928

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

14,712 14,971 15,864 19,471 20,057

78,762 80,886 83,698 89,283 91,905

2034 2035 2036 2037 2038

72,026 74,187 76,412 78,705 81,066

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

20,673 21,328 22,023 22,764 23,552

94,619 97,434 100,356 103,388 106,537

2039 2040 2041 2042 2043

83,498 86,003 88,583 91,240 93,978

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

24,391 25,284 26,237 27,252 28,335

109,808 113,207 116,740 120,413 124,232

2044

96,797

0

1,920

0

0

29,490

128,207

1

All payroll withholding taxes plus additional tax payments (income and capital gains tax). Refunds are shown as other income in the year received. R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 27 of 41

SCENARIO COMPARISON

Comparison if Mary Dies Scenario 2: Proposed Strategy (Scenario Comparison)

Scenario 2: Current Situation

Year

Expected Income

Total Outgoing Payments

Year

Expected Income

Total Outgoing Payments

2009 2010 2011 2012 2013

£98,704 134,034 138,128 142,348 146,699

£93,896 173,382 194,415 202,258 209,878

2009 2010 2011 2012 2013

£98,704 134,034 138,128 142,348 146,699

£105,569 179,605 198,624 206,564 215,024

2014 2015 2016 2017 2018

151,184 180,183 160,575 165,490 170,557

223,023 239,279 264,598 215,295 210,287

2014 2015 2016 2017 2018

151,184 180,183 160,575 165,490 170,557

218,706 245,498 256,090 201,601 196,021

2019 2020 2021 2022 2023

175,806 181,167 186,720 192,446 198,350

204,308 192,356 198,366 204,700 202,347

2019 2020 2021 2022 2023

175,781 181,167 186,720 192,446 198,350

196,767 193,931 199,721 205,762 211,988

R 2024 2025 2026 2027 2028

334,279 49,615 51,227 52,919 54,696

177,882 160,600 89,349 91,731 94,350

R 2024 2025 2026 2027 2028

276,685 40,122 41,733 43,426 45,202

193,397 151,445 72,963 74,722 76,708

2029 2030 2031 2032 2033

56,562 58,521 60,578 64,693 77,088

97,060 99,864 102,766 105,772 109,669

2029 2030 2031 2032 2033

47,068 50,563 60,575 63,019 65,580

78,762 80,886 83,698 89,283 91,905

2034 2035 2036 2037 2038

79,832 82,705 85,715 88,868 92,170

117,108 120,793 124,609 128,570 132,682

2034 2035 2036 2037 2038

68,264 71,075 74,021 77,107 80,342

94,619 97,434 100,356 103,388 106,537

2039 2040 2041 2042 2043

95,630 99,253 103,050 107,027 111,194

136,954 141,391 146,001 150,793 155,775

2039 2040 2041 2042 2043

83,731 87,283 91,005 94,906 98,994

109,808 113,207 116,740 120,413 124,232

2044

115,560

160,955

2044

103,279

128,207

R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 28 of 41

SCENARIO COMPARISON

Lifestyle if Dr. Anthony Becomes Disabled Cash Flow Objective if Dr. Anthony Becomes Disabled • Pay all lifestyle expenses • Use only assets designated for education, to fund education needs • Calculate separately any additional needs for education, specific needs, or future purchases • Under no circumstances use assets designated "Do Not Use" for cash flow Scenario 1: Proposed Strategy (Scenario Comparison) Effects if Dr. Anthony Becomes Disabled Italian Villa Jonathan Ed. Clara Ed. David Ed. David Ed. Jonathan Ed. Clara Ed. Lifestyle Expenses Today

Retirement

2043

Successfully funded through cash flow or using funds designated for this purpose Cash flow was not sufficient without using assets designated as "Do Not Use"

Consideration: Scenario 1: Proposed Strategy (Scenario Comparison) had successful cash flow. Scenario 2: Current Situation Effects if Dr. Anthony Becomes Disabled Italian Villa Jonathan Ed. Clara Ed. David Ed. David Ed. Jonathan Ed. Clara Ed. Lifestyle Expenses Today

Retirement

2043

Successfully funded through cash flow or using funds designated for this purpose Cash flow was not sufficient without using assets designated as "Do Not Use"

Consideration: Scenario 2: Current Situation failed in January of 2012 The value of the shortfall today invested at 5%: Presented by: Ross Mackereth For Evaluation Purposes Only

£566,097 30 June, 2009 29 of 41

SCENARIO COMPARISON

Expected Income if Dr. Anthony Becomes Disabled Scenario 1: Proposed Strategy (Scenario Comparison) Other1 Income

State Benefits

Earnings (Cash, Dividends)

Retirement Plan Distributions

Total Expected Income

Year

Salary

2009 2010 2011 2012 2013

£4,725 8,343 8,593 8,851 9,117

£58,381 88,949 95,743 73,549 75,539

£0 0 0 0 0

£0 0 0 0 0

£0 0 0 0 0

£63,106 97,292 104,336 82,400 84,656

2014 2015 2016 2017 2018

9,390 9,672 9,962 10,261 10,569

77,160 79,469 81,444 83,677 86,185

0 0 0 0 0

0 24,375 0 0 0

0 0 0 0 0

86,550 113,516 91,406 93,938 96,753

2019 2020 2021 2022 2023

10,886 11,212 11,549 11,895 12,252

88,496 90,760 93,482 96,287 99,176

0 0 0 0 0

26 0 0 0 0

0 0 0 0 0

99,407 101,972 105,031 108,182 111,428

R 2024 2025 2026 2027 2028

1,052 0 0 0 0

101,294 94,624 97,463 100,387 103,399

0 0 0 0 0

0 0 0 0 0

104,975 42,829 44,718 46,702 48,785

207,320 137,453 142,181 147,089 152,184

2029 2030 2031 2032 2033

0 0 0 0 0

88,750 0 0 0 0

0 0 0 1,955 12,082

0 0 0 0 0

50,972 53,269 55,681 58,213 60,871

139,723 53,269 55,681 60,168 72,953

2034 2035 2036 2037 2038

0 0 0 0 0

0 0 0 0 0

12,445 24,568 26,405 27,197 28,013

0 0 0 0 0

63,663 66,594 69,672 72,904 76,297

76,108 91,162 96,077 100,101 104,310

2039 2040 2041 2042 2043

0 0 0 0 0

0 0 0 0 0

28,853 29,719 30,611 31,529 32,475

0 0 0 0 0

79,860 83,601 87,529 91,653 95,984

108,713 113,320 118,139 123,182 128,459

1

Other Income includes any estimated tax refunds for the prior year. R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 30 of 41

SCENARIO COMPARISON

Expected Income if Dr. Anthony Becomes Disabled (Continued) Scenario 2: Current Situation Other1 Income

State Benefits

Earnings (Cash, Dividends)

Retirement Plan Distributions

Total Expected Income

Year

Salary

2009 2010 2011 2012 2013

£4,725 8,343 8,593 8,851 9,117

£40,881 45,689 51,185 27,654 28,268

£0 0 0 0 0

£0 0 0 0 0

£0 0 0 0 0

£45,606 54,032 59,778 36,506 37,384

2014 2015 2016 2017 2018

9,390 9,672 9,962 10,261 10,569

28,471 29,319 29,790 30,473 31,384

0 0 0 0 0

0 24,375 0 0 0

0 0 0 0 0

37,861 63,366 39,752 40,734 41,953

2019 2020 2021 2022 2023

10,886 11,212 11,549 11,895 12,252

32,051 32,622 33,601 34,609 35,647

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

42,937 43,834 45,149 46,504 47,899

R 2024 2025 2026 2027 2028

1,052 0 0 0 0

35,859 27,227 28,043 28,885 29,751

0 0 0 0 0

297 0 0 0 0

104,975 42,829 44,718 46,702 48,785

142,182 70,055 72,761 75,587 78,536

2029 2030 2031 2032 2033

0 0 0 0 0

25,536 0 0 0 0

0 1,536 9,490 9,775 19,298

0 0 237 10 0

50,972 53,269 55,681 58,213 60,871

76,509 54,805 65,408 67,998 80,169

2034 2035 2036 2037 2038

0 0 0 0 0

0 0 0 0 0

20,741 21,363 22,004 22,664 23,344

0 0 0 0 0

63,663 66,594 69,672 72,904 76,297

84,404 87,957 91,676 95,568 99,641

2039 2040 2041 2042 2043

0 0 0 0 0

0 0 0 0 0

24,044 24,766 25,509 26,274 27,062

0 0 0 0 0

79,860 83,601 87,529 91,653 95,984

103,904 108,366 113,038 117,927 123,046

Note: Scenario 2: Current Situation failed in January of 2012

1

Other Income includes any estimated tax refunds for the prior year. R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 31 of 41

SCENARIO COMPARISON

Outgoing Payments if Dr. Anthony Becomes Disabled Scenario 1: Proposed Strategy (Scenario Comparison)

Year

Education & Basic Specific Expenses Needs

Retirement Loan Plan Payments Contributions

Tax DiscrePayments tionary and1 Spending Withholdings

Total Outgoing Payments

2009 2010 2011 2012 2013

£26,740 47,136 48,471 49,711 50,722

£29,750 54,060 57,304 60,742 64,386

£6,535 10,966 10,602 10,602 10,751

£236 417 430 443 456

£0 0 0 0 0

£392 7,057 8,740 11,330 5,910

£63,653 119,635 125,547 132,828 132,225

2014 2015 2016 2017 2018

52,181 53,683 55,231 56,824 58,466

73,547 85,820 80,319 53,527 44,771

12,522 12,461 12,507 12,522 12,522

470 484 498 513 528

0 0 0 0 0

6,922 6,352 17,771 6,381 5,997

145,641 158,799 166,326 129,768 122,285

2019 2020 2021 2022 2023

60,157 61,899 63,693 65,541 67,444

34,772 18,034 19,116 20,263 12,529

12,511 12,455 12,449 12,449 12,449

544 561 577 595 613

0 0 0 0 0

5,878 6,114 6,323 6,586 6,859

113,863 99,062 102,158 105,433 99,893

R 2024 2025 2026 2027 2028

69,340 74,393 76,569 78,810 80,033

0 0 0 0 0

11,576 1,868 1,868 1,868 1,868

53 0 0 0 0

0 0 0 0 0

6,199 81,593 14,786 16,382 18,201

87,168 157,854 93,223 97,060 100,103

2029 2030 2031 2032 2033

81,636 84,085 86,608 89,206 91,882

0 0 0 0 0

1,868 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

20,152 20,207 13,474 13,714 14,364

103,656 106,212 102,002 104,840 108,166

2034 2035 2036 2037 2038

94,639 97,478 100,402 103,414 106,517

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

16,743 17,224 20,137 21,094 21,875

113,302 116,622 122,459 126,428 130,312

2039 2040 2041 2042 2043

109,712 113,004 116,394 119,886 123,482

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

22,701 23,574 24,498 25,477 26,518

134,333 138,498 142,812 147,282 151,921

1

All payroll withholding taxes plus additional tax payments (income and capital gains tax). Refunds are shown as other income in the year received. R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 32 of 41

SCENARIO COMPARISON

Outgoing Payments if Dr. Anthony Becomes Disabled (Continued) Scenario 2: Current Situation

Year

Education & Basic Specific Expenses Needs

Retirement Loan Plan Payments Contributions

Tax DiscrePayments tionary and1 Spending Withholdings

Total Outgoing Payments

2009 2010 2011 2012 2013

£26,320 46,416 47,751 48,991 50,002

£29,750 54,060 57,304 60,742 64,386

£6,535 10,966 10,652 12,412 12,522

£236 417 430 443 456

£11,944 0 4,895 8,000 0

£392 6,971 8,103 9,671 4,373

£75,178 118,830 129,135 140,258 131,740

2014 2015 2016 2017 2018

51,461 52,963 54,511 56,104 57,746

73,547 85,820 80,319 53,527 44,771

12,522 12,522 12,522 12,522 12,522

470 484 498 513 528

0 0 0 0 0

4,941 4,512 16,137 4,824 4,932

142,940 156,302 163,987 127,490 120,501

2019 2020 2021 2022 2023

59,437 61,179 62,973 64,821 66,724

34,772 18,034 19,116 20,263 12,529

12,522 12,522 12,522 12,522 12,522

544 561 577 595 613

0 0 0 0 0

5,081 5,234 5,392 5,554 5,721

112,357 97,530 100,580 103,755 98,110

R 2024 2025 2026 2027 2028

68,840 73,913 76,089 78,330 79,833

0 0 0 0 0

11,639 1,920 1,920 1,920 1,920

53 0 0 0 0

0 0 0 0 0

4,933 81,126 11,128 11,307 11,615

85,465 156,958 89,137 91,557 93,369

2029 2030 2031 2032 2033

81,636 84,085 86,608 89,206 91,882

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

11,943 11,278 6,450 8,100 8,487

95,499 97,283 94,978 99,227 102,289

2034 2035 2036 2037 2038

94,639 97,478 100,402 103,414 106,517

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

10,769 11,458 12,006 12,582 13,188

107,328 110,856 114,328 117,916 121,625

2039 2040 2041 2042 2043

109,712 113,004 116,394 119,886 123,482

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

13,825 14,494 15,198 15,940 16,724

125,457 129,418 133,512 137,746 142,126

Note: Scenario 2: Current Situation failed in January of 2012

1

All payroll withholding taxes plus additional tax payments (income and capital gains tax). Refunds are shown as other income in the year received. R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 33 of 41

SCENARIO COMPARISON

Comparison if Dr. Anthony Becomes Disabled Scenario 2: Proposed Strategy (Scenario Comparison)

Scenario 2: Current Situation

Year

Expected Income

Total Outgoing Payments

Year

Expected Income

Total Outgoing Payments

2009 2010 2011 2012 2013

£63,106 97,292 104,336 82,400 84,656

£63,653 119,635 125,547 132,828 132,225

2009 2010 2011 2012 2013

£45,606 54,032 59,778 36,506 37,384

£75,178 118,830 129,135 140,258 131,740

2014 2015 2016 2017 2018

86,550 113,516 91,406 93,938 96,753

145,641 158,799 166,326 129,768 122,285

2014 2015 2016 2017 2018

37,861 63,366 39,752 40,734 41,953

142,940 156,302 163,987 127,490 120,501

2019 2020 2021 2022 2023

99,407 101,972 105,031 108,182 111,428

113,863 99,062 102,158 105,433 99,893

2019 2020 2021 2022 2023

42,937 43,834 45,149 46,504 47,899

112,357 97,530 100,580 103,755 98,110

R 2024 2025 2026 2027 2028

207,320 137,453 142,181 147,089 152,184

87,168 157,854 93,223 97,060 100,103

R 2024 2025 2026 2027 2028

142,182 70,055 72,761 75,587 78,536

85,465 156,958 89,137 91,557 93,369

2029 2030 2031 2032 2033

139,723 53,269 55,681 60,168 72,953

103,656 106,212 102,002 104,840 108,166

2029 2030 2031 2032 2033

76,509 54,805 65,408 67,998 80,169

95,499 97,283 94,978 99,227 102,289

2034 2035 2036 2037 2038

76,108 91,162 96,077 100,101 104,310

113,302 116,622 122,459 126,428 130,312

2034 2035 2036 2037 2038

84,404 87,957 91,676 95,568 99,641

107,328 110,856 114,328 117,916 121,625

2039 2040 2041 2042 2043

108,713 113,320 118,139 123,182 128,459

134,333 138,498 142,812 147,282 151,921

2039 2040 2041 2042 2043

103,904 108,366 113,038 117,927 123,046

125,457 129,418 133,512 137,746 142,126

Note: Scenario 2: Current Situation failed in January of 2012

R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 34 of 41

SCENARIO COMPARISON

Lifestyle if Mary Becomes Disabled Cash Flow Objective if Mary Becomes Disabled • Pay all lifestyle expenses • Use only assets designated for education, to fund education needs • Calculate separately any additional needs for education, specific needs, or future purchases • Under no circumstances use assets designated "Do Not Use" for cash flow Scenario 1: Proposed Strategy (Scenario Comparison) Effects if Mary Becomes Disabled Italian Villa Jonathan Ed. Clara Ed. David Ed. David Ed. Jonathan Ed. Clara Ed. Lifestyle Expenses Today

Retirement

2043

Successfully funded through cash flow or using funds designated for this purpose Cash flow was not sufficient without using assets designated as "Do Not Use"

Consideration: Scenario 1: Proposed Strategy (Scenario Comparison) had successful cash flow. Scenario 2: Current Situation Effects if Mary Becomes Disabled Italian Villa Jonathan Ed. Clara Ed. David Ed. David Ed. Jonathan Ed. Clara Ed. Lifestyle Expenses Today

Retirement

2043

Successfully funded through cash flow or using funds designated for this purpose Cash flow was not sufficient without using assets designated as "Do Not Use"

Consideration: Scenario 2: Current Situation failed in October of 2014 The value of the shortfall today invested at 5%: Presented by: Ross Mackereth For Evaluation Purposes Only

£191,271 30 June, 2009 35 of 41

SCENARIO COMPARISON

Expected Income if Mary Becomes Disabled Scenario 1: Proposed Strategy (Scenario Comparison) Other1 Income

State Benefits

Earnings (Cash, Dividends)

Retirement Plan Distributions

Total Expected Income

Year

Salary

2009 2010 2011 2012 2013

£70,000 123,600 127,308 131,127 135,061

£11,471 22,607 23,458 23,046 23,521

£0 0 0 0 0

£0 0 0 0 0

£0 0 0 0 0

£81,471 146,207 150,766 154,173 158,582

2014 2015 2016 2017 2018

139,113 143,286 147,585 152,012 156,573

23,581 24,283 24,603 25,131 25,881

0 0 0 0 0

0 24,375 0 0 0

0 0 0 0 0

162,694 191,944 172,188 177,143 182,454

2019 2020 2021 2022 2023

161,270 166,108 171,091 176,224 181,511

26,383 26,784 27,588 28,415 29,268

0 0 0 0 0

26 0 0 0 0

0 0 0 0 0

187,679 192,892 198,679 204,639 210,778

R 2024 2025 2026 2027 2028

155,797 0 0 0 0

29,289 20,459 21,073 21,705 22,356

0 0 0 0 0

0 0 0 0 0

179,846 55,171 57,060 59,044 61,127

364,932 75,630 78,133 80,749 83,483

2029 2030 2031 2032 2033

0 0 0 0 0

23,027 23,718 24,429 2,097 0

0 0 0 1,955 12,082

0 0 0 0 0

63,315 65,611 68,023 70,555 73,213

86,341 89,329 92,452 74,607 85,296

2034 2035 2036 2037 2038

0 0 0 0 0

0 0 0 0 0

12,445 24,568 26,405 27,197 28,013

0 0 0 0 0

76,005 78,936 82,014 85,246 88,639

88,450 103,504 108,419 112,443 116,652

2039 2040 2041 2042 2043

0 0 0 0 0

0 0 0 0 0

28,853 29,719 30,611 31,529 32,475

0 0 0 0 0

92,202 95,943 99,871 103,995 108,326

121,055 125,662 130,481 135,524 140,801

1

Other Income includes any estimated tax refunds for the prior year. R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 36 of 41

SCENARIO COMPARISON

Expected Income if Mary Becomes Disabled (Continued) Scenario 2: Current Situation Other1 Income

State Benefits

Earnings (Cash, Dividends)

Retirement Plan Distributions

Total Expected Income

Year

Salary

2009 2010 2011 2012 2013

£70,000 123,600 127,308 131,127 135,061

£6,471 10,247 10,727 9,933 10,015

£0 0 0 0 0

£0 0 0 0 0

£0 0 0 0 0

£76,471 133,847 138,035 141,061 145,076

2014 2015 2016 2017 2018

139,113 143,286 147,585 152,012 156,573

9,670 9,955 9,844 9,929 10,224

0 0 0 0 0

0 24,375 0 0 0

0 0 0 0 0

148,783 177,616 157,429 161,942 166,797

2019 2020 2021 2022 2023

161,270 166,108 171,091 176,224 181,511

10,257 10,173 10,478 10,793 11,117

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

171,526 176,281 181,570 187,017 192,627

R 2024 2025 2026 2027 2028

155,797 0 0 0 0

10,593 1,203 1,239 1,276 1,314

0 0 0 0 0

0 0 0 0 0

122,253 45,677 47,566 49,550 51,633

288,643 46,879 48,805 50,826 52,947

2029 2030 2031 2032 2033

0 0 0 0 0

1,353 1,394 1,436 123 0

0 1,536 9,490 9,775 19,298

346 44 0 0 0

53,821 56,117 58,529 61,061 63,720

55,520 59,091 69,455 70,959 83,017

2034 2035 2036 2037 2038

0 0 0 0 0

0 0 0 0 0

20,741 21,363 22,004 22,664 23,344

0 0 0 0 0

66,511 69,442 72,520 75,752 79,145

87,252 90,806 94,524 98,416 102,489

2039 2040 2041 2042 2043

0 0 0 0 0

0 0 0 0 0

24,044 24,766 25,509 26,274 27,062

0 0 0 0 0

82,708 86,449 90,377 94,501 98,832

106,752 111,215 115,886 120,775 125,894

Note: Scenario 2: Current Situation failed in October of 2014

1

Other Income includes any estimated tax refunds for the prior year. R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

30 June, 2009 37 of 41

SCENARIO COMPARISON

Outgoing Payments if Mary Becomes Disabled Scenario 1: Proposed Strategy (Scenario Comparison)

Year

Education & Basic Specific Expenses Needs

Retirement Loan Plan Payments Contributions

Tax DiscrePayments tionary and1 Spending Withholdings

Total Outgoing Payments

2009 2010 2011 2012 2013

£27,650 48,696 50,031 51,271 52,282

£29,750 54,060 57,304 60,742 64,386

£6,535 10,966 10,602 10,602 12,054

£8,750 15,450 15,913 16,391 16,883

£0 0 0 0 0

£22,301 40,787 50,769 52,545 54,207

£94,986 169,959 184,619 191,551 199,812

2014 2015 2016 2017 2018

53,741 55,243 56,791 58,384 60,026

73,547 85,820 80,319 53,527 44,771

12,427 12,449 12,470 12,522 12,522

17,389 17,911 18,448 19,002 19,572

0 0 0 0 0

56,287 57,989 86,110 61,512 62,927

213,391 229,412 254,137 204,948 199,819

2019 2020 2021 2022 2023

61,717 63,459 65,253 67,101 69,004

34,772 18,034 19,116 20,263 12,529

12,511 12,455 12,449 12,449 12,449

20,159 20,764 21,386 22,028 22,689

0 0 0 0 0

64,512 66,636 68,801 71,111 73,523

193,671 181,348 187,004 192,951 190,193

R 2024 2025 2026 2027 2028

70,820 74,393 76,569 78,810 80,033

0 0 0 0 0

11,576 1,920 1,920 1,920 1,920

19,475 0 0 0 0

0 0 0 0 0

66,207 92,600 15,988 16,398 16,909

168,077 168,913 94,477 97,128 98,863

2029 2030 2031 2032 2033

81,636 84,085 86,608 89,206 91,882

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

17,450 18,034 18,652 19,301 15,647

101,006 104,040 107,180 110,428 109,450

2034 2035 2036 2037 2038

94,639 97,478 100,402 103,414 106,517

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

18,546 19,062 22,048 23,124 24,039

115,105 118,460 124,370 128,459 132,476

2039 2040 2041 2042 2043

109,712 113,004 116,394 119,886 123,482

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

25,013 26,052 27,160 28,342 29,603

136,645 140,976 145,474 150,147 155,005

1

All payroll withholding taxes plus additional tax payments (income and capital gains tax). Refunds are shown as other income in the year received. R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

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SCENARIO COMPARISON

Outgoing Payments if Mary Becomes Disabled (Continued) Scenario 2: Current Situation

Year

Education & Basic Specific Expenses Needs

Retirement Loan Plan Payments Contributions

Tax DiscrePayments tionary and1 Spending Withholdings

Total Outgoing Payments

2009 2010 2011 2012 2013

£26,320 46,416 47,751 48,991 50,002

£29,750 54,060 57,304 60,742 64,386

£6,535 10,966 10,602 10,602 10,602

£5,250 9,270 9,548 9,835 10,130

£10,164 17,705 18,091 24,440 19,296

£22,301 40,910 49,579 51,035 52,315

£100,321 179,327 192,874 205,644 206,731

2014 2015 2016 2017 2018

51,461 52,963 54,511 56,104 57,746

73,547 85,820 80,319 53,527 44,771

11,930 12,461 12,499 12,522 12,522

10,433 10,746 11,069 11,401 11,743

7,927 19,040 4,736 0 0

53,867 55,262 83,016 58,582 60,287

209,165 236,293 246,149 192,137 187,070

2019 2020 2021 2022 2023

59,437 61,179 62,973 64,821 66,724

34,772 18,034 19,116 20,263 12,529

12,511 12,455 12,449 12,449 12,449

12,095 12,458 12,832 13,217 13,613

6,803 16,632 17,045 17,442 26,768

62,098 63,962 65,883 67,862 69,900

187,716 184,720 190,298 196,053 201,983

R 2024 2025 2026 2027 2028

68,840 73,913 76,089 78,330 79,833

0 0 0 0 0

11,576 1,920 1,920 1,920 1,920

11,685 0 0 0 0

31,752 0 0 0 0

62,072 86,597 6,661 6,493 6,398

185,925 162,429 84,670 86,743 88,152

2029 2030 2031 2032 2033

81,636 84,085 86,608 89,206 91,882

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

6,298 6,392 6,996 8,928 9,080

89,854 92,397 95,523 100,054 102,883

2034 2035 2036 2037 2038

94,639 97,478 100,402 103,414 106,517

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

11,339 12,028 12,576 13,152 13,757

107,897 111,425 114,898 118,486 122,194

2039 2040 2041 2042 2043

109,712 113,004 116,394 119,886 123,482

0 0 0 0 0

1,920 1,920 1,920 1,920 1,920

0 0 0 0 0

0 0 0 0 0

14,394 15,066 15,775 16,521 17,305

126,027 129,990 134,089 138,326 142,707

Note: Scenario 2: Current Situation failed in October of 2014

1

All payroll withholding taxes plus additional tax payments (income and capital gains tax). Refunds are shown as other income in the year received. R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

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SCENARIO COMPARISON

Comparison if Mary Becomes Disabled Scenario 2: Proposed Strategy (Scenario Comparison)

Scenario 2: Current Situation

Year

Expected Income

Total Outgoing Payments

Year

Expected Income

Total Outgoing Payments

2009 2010 2011 2012 2013

£81,471 146,207 150,766 154,173 158,582

£94,986 169,959 184,619 191,551 199,812

2009 2010 2011 2012 2013

£76,471 133,847 138,035 141,061 145,076

£100,321 179,327 192,874 205,644 206,731

2014 2015 2016 2017 2018

162,694 191,944 172,188 177,143 182,454

213,391 229,412 254,137 204,948 199,819

2014 2015 2016 2017 2018

148,783 177,616 157,429 161,942 166,797

209,165 236,293 246,149 192,137 187,070

2019 2020 2021 2022 2023

187,679 192,892 198,679 204,639 210,778

193,671 181,348 187,004 192,951 190,193

2019 2020 2021 2022 2023

171,526 176,281 181,570 187,017 192,627

187,716 184,720 190,298 196,053 201,983

R 2024 2025 2026 2027 2028

364,932 75,630 78,133 80,749 83,483

168,077 168,913 94,477 97,128 98,863

R 2024 2025 2026 2027 2028

288,643 46,879 48,805 50,826 52,947

185,925 162,429 84,670 86,743 88,152

2029 2030 2031 2032 2033

86,341 89,329 92,452 74,607 85,296

101,006 104,040 107,180 110,428 109,450

2029 2030 2031 2032 2033

55,520 59,091 69,455 70,959 83,017

89,854 92,397 95,523 100,054 102,883

2034 2035 2036 2037 2038

88,450 103,504 108,419 112,443 116,652

115,105 118,460 124,370 128,459 132,476

2034 2035 2036 2037 2038

87,252 90,806 94,524 98,416 102,489

107,897 111,425 114,898 118,486 122,194

2039 2040 2041 2042 2043

121,055 125,662 130,481 135,524 140,801

136,645 140,976 145,474 150,147 155,005

2039 2040 2041 2042 2043

106,752 111,215 115,886 120,775 125,894

126,027 129,990 134,089 138,326 142,707

Note: Scenario 2: Current Situation failed in October of 2014

R-Retirement assumed to begin in this year. Presented by: Ross Mackereth For Evaluation Purposes Only

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SCENARIO COMPARISON

Investment Profiles & Asset Allocation Investment Profiles Often it is helpful to compare your investment portfolio with the portfolios of people with similar risk tolerances, investment objectives, and time frames—these portfolios are referred to as profiles. The comparisons for these two scenarios appear below. Scenario 1: Proposed Strategy (Scenario Comparison)

Scenario 2: Current Situation

Investments By Investment Style Profile III is the typical investment style of people seeking a balanced portfolio between income and growth. Cash assets are maintained for emergencies. Equal emphasis is on growth and income.

Investments By Investment Style Profile III is the typical investment style of people seeking a balanced portfolio between income and growth. Cash assets are maintained for emergencies. Equal emphasis is on growth and income.

Profile III

Your Present Style

10%

Profile III

30% 20%

Your Present Style

10%

13%

13%

30%

35%

20%

35%

36% 16%

40% Cash

36%

Income

Growth & Income

Growth

Cash

Investments By Volatility Class People in Profile III are typically seeking a balanced program with limited ups and downs. Often, they have only a limited amount of time to reach their goals.

Growth & Income

Growth

Your Present Volatility

Profile III

5% 13%

15% 5%

Income

Investments By Volatility Class People in Profile III are typically seeking a balanced program with limited ups and downs. Often, they have only a limited amount of time to reach their goals.

Your Present Volatility

Profile III

16%

40%

5% 13%

15% 5%

20%

20% 18%

20%

48% 40%

18% 20%

16%

Very Conservative Moderate Aggressive Dynamic Conservative

48% 40%

16%

Very Conservative Moderate Aggressive Dynamic Conservative

Allocation of your assets should consider not just what you have (investment category), but its cash flow (investment style) and its risks and returns (volatility). Presented by: Ross Mackereth For Evaluation Purposes Only

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