Financial Life Plan Questionnairestatic.contentres.com/media/documents/6aebb486-d4bb-4989...3.5% investment tax? Do you know what your Taxable Income is, how it is calculated, how

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Financial Life Plan Questionnaire

RECIPE FOR LIFETIME PERSONAL WEALTH MANAGEMENT SUCCESS It takes certain ingredients and the right mix to grow and protect your personal wealth so you can achieve and maintain lifelong financial well-being. In other words, you need a good recipe. That recipe is your Personal Financial Plan (“PFP”).

BASIC INGREDIENTS are the staple of all good recipes and in a well thought out PFP they include the following and how well they mix together to achieve your personal and financial goals: income sources; expenses; financial accounts; real and business assets; liabilities; tax situation; employer benefit package; insurance policies; and estate plan documents.

SPECIAL INGREDIENTS are added to the mix. They include: your age, what stage of life you are in; whether you are in a state of transition; whether you own a small business; and any number of other unique situations you find yourself in.

WHAT IS YOUR RECIPE?

1) What is your current financial status taking your income sources, expenses, financial accounts, real property and business assets, liabilities,tax situation, employer benefit package, insurance policies, and estate plan documents into account?

2) What dishes (personal and financial goals) are you making?3) To help you determine if your basic and special ingredients will create the dishes of your choice for a lifetime of financial well-being we

invite you to assess various areas of your personal wealth management.



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1) In each section below rank how concerned you are about each question that applies to you. If a question in a section does not apply to you, type N/A. If a section does not

apply to you, skip it. 1 = Not concerned 2 = Somewhat concerned 3 = Very concerned

2) For each section determine your average rank. Determine your overall rank by adding the average ranks of all sections and divide by the number of sections you ranked. 3) On the last page, see what your results might imply.

1 - FINANCIAL LIFE MANAGEMENT – THE BIG PICTURE HOW CONCERNED ARE YOU? RANK 1 – 3

Do you have a clear process in place where you evaluate your financial life goals and regularly track your progress towards them? Are you afraid you might have blind spots or gaps or things you have overlooked that could lead to a financial household crash? Do you currently have financial peace of mind? As financial decisions become more complex do you sometimes think you could use some guidance or a professional second opinion? If you were asked right now what your living net worth, estate net worth, and tax brackets are could you immediately answer? Economic conditions and tax laws are in continual flux. Do you keep up-to-date on how these variables affect your financial strategies? Are you confident in your current sources of financial advice? AVERAGE RANK: Add your rankings and divide by the number of questions your ranked. There are 7 possible rankings without any “N/As”

2 - TAX MANAGEMENT HOW CONCERNED ARE YOU? RANK 1 – 3

Do you, or your CPA, estimate your tax liability each year and plan your tax strategies out well in advance? Do you know what your Modified Adjusted Gross Income is, how it is calculated, and how it determines whether you will be subject to an additional 3.5% investment tax?

Do you know what your Taxable Income is, how it is calculated, how it determines what marginal tax bracket you are in, and therefore also determines if and at what rate your investment income will be taxed?

Do you know what tax vehicles you can use to reduce your Modified Adjusted Gross Income? Do you know that if your wages or self-employment income exceeds certain thresholds you will pay an additional Medicare tax of 0.9%? Do you know if a Roth Conversion should be considered for your situation? Are you taking deductions in the right year? The Alternative Minimum Tax (“AMT”). Do you know what it is and what triggers could cause you to pay it? Do you know if you need to pay estimated taxes and how often? If you own rental income property, do you understand the tax issues of owning and eventually selling that property? Do you know what tax credits are versus tax deductions? If you are above age 70.5, do you know what tax vehicle exists to avoid the inclusion of your required minimum distribution on your tax return? TOTAL SCORE: Add your rankings and divide by the number of questions your ranked. There are 12 possible rankings without any “N/As”



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3 - LIABILITY AND PROTECTION MANAGEMENT HOW CONCERNED ARE YOU? RANK 1 – 3

How will you replace your monthly income that your family depends on if you die tomorrow? Do you have adequate life insurance on everyone in your household? How do you know? Do you understand the differences between the various types of life insurance policies? How will you pay your mortgage payment, utility bills, food, and other basic expenses if you are disabled for 1 or more months due to injury or sickness? Do you have long-term disability insurance coverage? Do you understand the terms of your long-term disability insurance coverage? If you or your spouse gets dementia or Alzheimer’s and you need 24-hour supervision, how will that affect your nest egg and the unafflicted spouse? Do you have health insurance? Do you have adequate vehicle & liability insurance coverage? How do you know? Do you have adequate homeowner’s insurance coverage? How do you know? Do you need an umbrella policy or specialty coverage like earthquake insurance? Do you know how to properly title your assets? When did you last inventory how all your assets are titled? TOTAL SCORE: Add your rankings and divide by the number of questions your ranked. There are 13 possible rankings without any “N/As”

4 - CASH FLOW, BUDGETING, AND DEBT MANAGEMENT HOW CONCERNED ARE YOU? RANK 1 – 3

Do you have a financial record-keeping system that you review monthly? Do you know where you are spending your money? Are you paying down your debts in the best ways possible? Do you need a safe place to learn about money management and all financial questions? Do you know how much you should have in cash reserves? TOTAL SCORE: Add your rankings and divide by the number of questions your ranked. There are 5 possible rankings without any “N/As”



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5 - ESTATE & INCAPACITY MANAGEMENT HOW CONCERNED ARE YOU? RANK 1 – 3

In the event of your death, does your spouse, partner, or other family member have access to all your records and can they pick up from where you left off?

When did you last read through all your estate plan documents to include your will, trust(s), powers of attorney, and health care directive? Will your estate have probate costs? Do you know what probate is? Do you know how the cost is determined? Do you need a revocable living trust, an irrevocable trust, or any other estate planning instruments? Would a corporate trustee be wise? Which one do you choose? Do you regularly review your beneficiary designations on all insurance contracts and retirement plan accounts? Do you have a survivor guide for your loved ones? Have you made provisions in your will for your pets? Have you named a successor custodian for UTMA/UGMA accounts? Have you made provisions in your will for access to your digital assets? (electronic bill paying, Facebook and all other login credentials) If your estate is projected to owe estate taxes do you have strategies in place to help reduce them and have you provided for liquidity to pay the estate taxes?

What happens to your assets when you die and your child who inherits gets divorced? Does your estate plan address this issue? Are you charitably inclined? Do you have a charitable giving plan in place for your heirs or for causes you want to support? As a grandparent, would you like to provide for all or a portion of your grandchildren’s college education? TOTAL SCORE: Add your rankings and divide by the number of questions your ranked. There are 14 possible rankings without any “N/As”

DO YOU HAVE AN INVESTING MANAGEMENT PLAN? Just as two of the key goals in your personal financial plan are to build wealth and to preserve wealth, the same goals apply to any investment management plan you have, or should have. First, you require a well thought out investing process; second, you need to allow time for that investing process to work. The hardest part is having the discipline to follow the investment process and allowing it to work. To grow capital over time it is important to minimize loss. Avoiding big losses in bad times can be more important to long-term growth than racking up big gains in good times. Good markets can camouflage not having an investing process in place, but bad markets will expose the risks of not having one in place. You may have most of your eggs in only one sub-asset class (i.e. mutual funds invested in large company stocks through your 401(k) plan). An index can give you an idea of how the market has done over a span of years, but it won’t tell you how bumpy the ride has been. If you don’t adhere to an investing process, you may not have the discipline to stick it out when the markets go sharply down, up, and down again in a short time frame. The end result could be that you pull out and derail the long-term growth potential of your investment account.



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6 - INVESTMENT MANAGEMENT AND SAVINGS STRATEGIES FOR ACCOUNTS YOU NEED TO FUND YOUR SHORT-TERM, MID-TERM, AND LONG-TERM FINANCIAL GOALS: ACCOUNTS THAT WILL SOURCE YOUR RETIREMENT INCOME STREAM, ACCOUNTS THAT WILL FUND COLLEGE EXPENSES, ACCOUNTS THAT WILL HELP YOU BUY YOUR FIRST HOME, A NEW VEHICLE, YOUR DREAM TRAVEL GOALS, AND ANYTHING ELSE ON YOUR BUCKET LIST.

HOW CONCERNED ARE YOU? RANK 1 – 3

Do you know how much you need to save and invest monthly, as a lump sum, or a combination of the two to reach your future needs and bucket list items? For example, your future retirement cash flow needs, funding a child’s college education, buying your first home, buying a new vehicle, etc.

Do you know what type of accounts to establish for your various goals that are at least 5 years in the future? Each account type has tax outcomes, whether it’s funded from before-tax or after-tax contributions, if and how the earnings on the account are taxed, and if and how distributions are taxed.

Are you comfortable managing a large (6 or 7 digit figure) account, or would you be? Do you have an investment policy statement that you annually review for each investment account? An investment policy statement is a business plan that details how the account will be managed and takes many factors into account. It defines your investment strategy.

How comfortable are you with your current investment strategy in your accounts? Is professional management of your accounts important to you? It’s a complex investing environment. You face choices, confusion, and volatility. Do you have a strategic investment plan for your life goals? Do you have or want to spend the time to manage your accounts and do all the research, monitoring, rebalancing, trading, and tax management that goes with that important task?

How are your accounts performing? Do you know? What average annual internal rates of return have you achieved over the past 10-15 years or since you opened them?

Are you the only one managing your 401(k) or other employer retirement plan accounts? Does this concern you? Do you own a tax-deferred variable annuity? Do you understand how it works? Is it an appropriate investment vehicle for your situation and goals? Do you have a succession plan for your portfolio – a clear roadmap for what should happen to your portfolio if you become incapacitated or predecease your partner or family?

According to one financial expert, based on the past, every 5 out of 6 years will produce a return sequence that either triggers anxiety or smacks your portfolio so hard that you wonder why you ever trusted the market to begin with. We know this is normal. How will you behave?

Is you money safe in your accounts? Do you know where your accounts are held? TOTAL SCORE: Add your rankings and divide by the number of questions your ranked. There are 13 possible rankings without any “N/As”



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7 -EMPLOYER BENEFITS MANAGEMENT TO PROTECT YOUR PERSONAL WEALTH HOW CONCERNED ARE YOU? RANK 1 – 3

Which medical insurance plan is best for your financial situation? Does your employer offer a high-deductible plan paired with a Health Savings Account (“HSA”) option? Do you understand what an HSA does? Do you understand the taxation and definitions of your disability plan? Do you understand the difference between group AD&D and group term life insurance in terms of what they cover? Are you benefits portable? Does your employer offer group long-term care insurance? Is it portable? Does your employer offer a medical reimbursement or cafeteria plan? Do you understand how it works?

7 - EMPLOYER BENEFITS MANAGEMENT TO GROW YOUR PERSONAL WEALTH – RETIREMENT PLANS HOW CONCERNED ARE YOU? RANK 1 – 3

Do you understand what type of retirement plans are available to you and how they work? Have you reviewed the Summary Plan Description that describes each plan? Depending on the employer, plans include: 401(k), 403(b), 457, SEP, Simple IRA, Defined Benefit Plan, Profit-Sharing, Money Purchase

Do you participate in these plans? Do you understand all the investment options available in these plans and do you have an investment strategy in place to select among these options?

7 -EMPLOYER BENEFITS MANAGEMENT TO GROW YOUR PERSONAL WEALTH – EQUITY COMPENSATION & DEFERRED COMPENSATION PLANS HOW CONCERNED ARE YOU? RANK 1 – 3

Do you understand the difference between NQSOs, ESPPs, ISOs, Restricted Stock, and RSUs? Does your employer offer one or more of the above? Have your read through the documents regarding these plans? Do you have a written plan on how to monitor these plans and how they integrate into your personal financial goals? Does your employer offer a deferred compensation plan and do you understand it? TOTAL SCORE: Add your rankings and divide by the number of questions your ranked. There are 13 possible rankings without any “N/As”



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HOW CONCERNED ARE YOU ABOUT UNIQUE SITUATIONS THAT MAY BE APPLICABLE TO YOU?

• What stage of life are you in? 20s-30? 30s-40s? 40s-50s? 50s-60s? 60s-70s? 70s plus? • Are you on the cusp of a big financial change or in a state of transition? • Are you a small business owner?

8 - LIFE STAGE & ON THE CUSP OF A BIG FINANCIAL CHANGE (Example: Exiting work life and entering retirement. Retirement is a process, not an event) HOW CONCERNED ARE YOU? RANK 1 – 3

Do you have a vision and plan for what you will do in retirement on a daily basis and do you have a bucket list? Do you know how to replace your paycheck and create an income stream for the rest of your life? Have you developed a retirement income distribution plan? Do you understand it? Are you confident in it? Have you accounted for annual inflation, longevity, rising health care expenses, and long-term care expenses? Are your asset levels too low? Do you have separate funds for emergencies and unplanned withdrawals?

If you have one, is your current retirement portfolio positioned to be diversified so it can help stabilize the sequence of returns, while also producing a level of return that can sustain that portfolio for several decades?

Have you analyzed the impact that inflation can have on your spending needs in retirement? Have you analyzed from a complete personal financial plan perspective what Social Security claiming strategy is best for you and your spouse, if married, over the course of your life expectancy? Social Security is a government insured, inflation adjusted annuity.

If your employer gives you the option of a monthly pension benefit, whereby you commit to an annuity provided by a third-party insurance company, versus taking a lump sum and rolling it over into an IRA account, have you analyzed which options are best for you and your spouse, if married, over the course of your life expectancy?

Should you keep your 401(k) or other employer-sponsored retirement accounts with your employer after you retire or roll them into an IRA account? Do you know how employer stock is treated in your 401(k) when you decide to roll it to your IRA? Do you perform annual tax projections to determine the best way to take distributions from various accounts for maximum tax-efficiency? Have you wondered if a Roth Conversion would benefit your retirement income stream in the long-run? Once you are eligible for Medicare do you know it is important to plan carefully for what your Modified Adjusted Gross Income (“MAGI”) will be since MAGI determines what your Medicare premiums will be in the year following the year your file taxes for the prior year?

If you decide to marry later in life have you analyzed the effects your marriage will have on your financial situation? Do you know how to transform an inheritance into a second income? Have you considered a retirement community for some point in your life and do you know what to look for? Do you have a Guide to Caring for Aging Parents for your parents and for yourself? TOTAL SCORE: Add your rankings and divide by the number of questions your ranked. There are 15 possible rankings without any “N/As”



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9 - ON THE CUSP OF BIG FINANCIAL CHANGE OR IN A STATE OF TRANSITION HOW CONCERNED ARE YOU? RANK 1 – 3

You became a successor trustee. How will you manage the assets held in the trust? How will you advice the beneficiaries, or will you? What qualifications do you have to manage the trust assets for the beneficiaries? Are you aware that you are now a fiduciary and what that legally means? Do you need help with trust administration?

Are you considering a job change or are you just entering the work force and deciding on which employer to go with? An employer benefit package can be of great value and should be taken into consideration along with the salary you are offered. Paying for benefits pre-tax or after-tax can make a big difference. If you terminate employment, and your 401(k) has employer stock, are you aware of the tax treatment options if you roll it over into an IRA?

Did you recently get an inheritance? Do you have a plan for how you will manage it and for what goals you will apply it to in your life? Should you adjust your own estate plan as a result?

Are you recently widowed? Do you have a plan in place to help you manage your personal wealth and monthly expenses? Have you revisited what is important to you?

Are you contemplating divorce? Have you personally completed a personal financial analysis to show you the expected outcome of different scenarios? Have you just completed your divorce? Have you completed a personal financial analysis to show you if you are now, in your new life, on track for a life of financial wellness?

Are you about to get married? First time? Second or third time? How will you title your assets? Have you and your future spouse evaluated your personal wealth plan together and discussed how it will be managed to achieve both of your personal and financial goals? If either one of you or both of you have children from a prior marriage have you discussed how your estate plan will address each of your personal desires for your children and for each of you upon either of your deaths?

Are you going to have your first child soon? What do you need to be financially prepared for? TOTAL SCORE: Add your rankings and divide by the number of questions your ranked. There are 8 possible rankings without any “N/As”

10 - SMALL BUSINESS OWNER WEALTH MANAGEMENT DECISIONS HOW CONCERNED ARE YOU? RANK 1 – 3

What type of business entity do you have and do you know why? C-Corp, S-Corp, LLC, Partnership, Sole Proprietor? When did you last review important business agreements? Are they current? When did you last review the corporate minutes? Have you protected yourself against all liabilities? What happens to the business if key people like you, other active shareholder employees, or partners become disabled or die? Do you have written, attorney-reviewed buy-sell agreements in place? When were these agreements last reviewed? How do you plan to fund the buyout?

Does your estate plan address your business interest in the best way from a control and tax-efficiency perspective? What happens to the business when you decide to retire? Will you sell? Do you have a written succession plan in place? Have you calculated the taxation of a business sale? Should you do an installment sale or a one-time sale? Do you know how the Affordable Care Act affects your business? Do you want to offer benefits to your employees? Do you know what types of retirement plans are best for you and your employees? Do you understand your balance sheet, profit-loss, and cash flow statements? TOTAL SCORE: Add your rankings and divide by the number of questions your ranked. There are 11 possible rankings without any “N/As”



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RANK RESULTS FOR EACH SECTION AND IN TOTAL AVERAGE RANK

1) FINANCIAL LIFE MANAGEMENT – THE BIG PICTURE

2) TAX MANAGEMENT

3) LIABILITY AND PROTECTION MANAGEMENT

4) CASH FLOW, BUDGETING, AND DEBT MANAGEMENT

5) ESTATE & INCAPACITY MANAGEMENT

6) INVESTMENT MANAGEMENT AND SAVINGS STRATEGIES FOR ACCOUNTS YOU NEED TO FUND YOUR SHORT-TERM, MID-TERM, AND LONG-TERM FINANCIAL GOALS

7) EMPLOYER BENEFITS MANAGEMENT TO PROTECT YOUR PERSONAL WEALTH, RETIREMENT PLANS, AND EQUITY COMPENSATION & DEFERRED COMPENSATION PLANS

8) LIFE STAGE & ON THE CUSP OF A BIG FINANCIAL CHANGE

9) ON THE CUSP OF BIG FINANCIAL CHANGE OR IN A STATE OF TRANSITION

10) SMALL BUSINESS OWNER WEALTH MANAGEMENT DECISIONS

TOTAL AVERAGE RANK FOR ALL SECTIONS

• If you average a rank of 1 - 2, it appears that you have strategies in place for that particular personal wealth management section, and/or overall, and you regularly monitor them, which gives you confidence in planning and reaching your financial goals and protecting your personal wealth. For areas where your average rank was a 2 or 3, you might consider a second professional opinion.

• If you average a rank of 2 – 3, it appears that you lack strategies for certain personal wealth management sections, and overall, and you would benefit from developing and monitoring a personal financial plan tailored for you, which would give you confidence in planning and reaching your financial goals and protecting your personal wealth.



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Financial Life Plan Questionnairestatic.contentres.com/media/documents/6aebb486-d4bb-4989...3.5% investment tax? Do you know what your Taxable Income is, how it is calculated, how