GuideBook Sam and Mary Sample | January 2022
Doug Kinsey, CFP®, CIMA® | Partner
This is a summary of the work we've done together, and is based on the information you provided. This is designed to provide practical and useful information on the subject matter covered and is provided in conjunction with the financial plan provided by your financial advisor. You can work with your financial advisor to identify and take action on appropriate next steps. ©2022 | United Capital Financial Advisers, LLC, a Goldman Sachs Company (“United Capital”) d/b/a Goldman Sachs Personal Financial Management (“GS PFM”). All Rights Reserved. | FinLife Partners is a d/b/a of United Capital Financial Advisers, LLC Investment advisory services offered through United Capital Financial Advisers, LLC d/b/a Goldman Sachs Personal Financial Management (“GS PFM”), a registered investment adviser. United Capital Financial Advisers, LLC, United Capital Risk Management, PFE Advisors, Inc., and United Capital Financial Partners (together the “United Capital Affiliates”) are affiliates of Goldman Sachs & Co. LLC and subsidiaries of The Goldman Sachs Group, Inc., a worldwide, full-service investment banking, broker-dealer, asset management, and financial services organization. The Goldman Sachs Group, Inc. and its subsidiaries and employees (collectively, “Goldman Sachs”) are engaged in businesses and have interests other than the services provided by the United Capital Affiliates. All names, logos, and slogans identifying GS PFM or GS PFM’s products and services (including, without limitation, HonestConversations®, MoneyMind®, FinLife®, Financial Control Scorecard®, Live Richly℠, We Help You Live Richly℠, Helping People Live Richly®, One Best Financial Life®, Ideal Life Index®, GuideCenter®, InvestmentViewfinder℠, United Capital Financial Life Management®, and Financial Years of Freedom℠) are trademarks and service marks or registered trademarks and service marks of GS PFM or its affiliates in the United States and/or other countries. The information contained on this site is intended for informational purposes only and is not a recommendation to buy or sell any securities, and should not be considered investment advice. This web site does not represent an offer of or a solicitation for advisory services in any state/jurisdiction of the United States or any country where the firm is not registered, notice filed, or exempt. GS PFM does not provide legal, tax, or accounting advice. Clients should obtain their own independent legal, tax, or accounting advice based on their particular circumstances
Table of Contents 1. How do I think/feel about money?
4
1.1
Your MoneyMind®
5
1.2
Sam's MoneyMind®
6
1.3
Mary's MoneyMind®
8
2. What matters to me? 2.1
HonestConversations®
3. Where am I today?
10 11 20
3.1
Net Worth
21
3.1
Investments
27
3.1
Financial Plan
33
3.1
Insurance
39
4. How do I get where I need to go? 4.1
Goals
5. Am I on course? 5.1
Tasks
Sam and Mary Sample, January 2022
42 43 46 47
1
2
Sam and Mary Sample, January 2022
How We Plan Your Success
Sam and Mary Sample, January 2022
3
1
6
How do we think/feel about money?
Brandon & Kate Sample, July 2019
Your MoneyMind
®
Your
MoneyMind We get to know and understand your way of thinking about money, discover what is important to you, exchange ideas and make course corrections. We partner with you to make intentional financial decisions as we put your unique plan into action.
Sam and Mary Sample, January 2022
5
Your MoneyMind
®
Sam Sam, your money mind is
COMMITMENT
42%
Commitment
36%
Protection
22%
Happiness
PRIMARY INFLUENCE: COMMITMENT The Commitment MoneyMind tends to derive joy from giving, and may fear letting others down. The Commitment MoneyMind type's instinctive responses to making financial decisions are: SPENDING:
Tend to prioritize supporting the people and causes they care about
SAVING:
Can run short on funds for their own needs as they support others
PLANNING:
Usually consider the other's opinions and how their actions can impact them
SAFETY NET:
May focus on helping others regardless of their resources
RISK-TAKING:
Often leave important decisions to others rather than taking control
TIMING:
Frequently put off their own financial needs to help others
6
Sam and Mary Sample, January 2022
Your MoneyMind
®
SECONDARY INFLUENCE: PROTECTION In situations where your secondary MoneyMind drives your decisions, you tend to value security and peace of mind. The Protection MoneyMind type's instinctive responses to making financial decisions are: SPENDING:
Often focus on cost, delay gratification, and live well within their means
SAVING:
Tend to focus on saving and can be critical of those who spend money freely
PLANNING:
Careful, meticulous, and motivated to protect themselves and loved ones
SAFETY NET:
Seldom feel that their safety net is large enough
RISK-TAKING:
Usually prepared for bad outcomes, can be apprehensive about risk and dislike losing
TIMING:
May require a high degree of certainty, potentially missing opportunities
SECONDARY INFLUENCE: HAPPINESS In situations where your secondary MoneyMind drives your decisions, you tend to prioritize enjoyment, and may fear missing out. The Happiness MoneyMind type's instinctive responses to making financial decisions are: SPENDING:
Usually thrive on living life to the fullest, sometimes beyond their means
SAVING:
Can feel frustrated and impatient at the thought of having to save
PLANNING:
May value near-term rewards over planning for the future
SAFETY NET:
Can have blind spots that result in an underfunded safety net
RISK-TAKING:
Tend to be overly optimistic and underprepared for negative outcome
TIMING:
Often quick to make important decisions and seize opportunities presented
Sam and Mary Sample, January 2022
7
Your MoneyMind
®
Mary Mary, your money mind is
HAPPINESS
35%
Commitment
20%
Protection
45%
Happiness
PRIMARY INFLUENCE: HAPPINESS The Happiness MoneyMind tends to prioritize enjoyment, and may fear missing out. The Happiness MoneyMind type's instinctive responses to making financial decisions are: SPENDING:
Usually thrive on living life to the fullest, sometimes beyond their means
SAVING:
Can feel frustrated and impatient at the thought of having to save
PLANNING:
May value near-term rewards over planning for the future
SAFETY NET:
Can have blind spots that result in an underfunded safety net
RISK-TAKING:
Tend to be overly optimistic and underprepared for negative outcome
TIMING:
Often quick to make important decisions and seize opportunities presented
8
Sam and Mary Sample, January 2022
Your MoneyMind
®
SECONDARY INFLUENCE: COMMITMENT In situations where your secondary MoneyMind drives your decisions, you tend to derive joy from giving, and may fear letting others down. The Commitment MoneyMind type's instinctive responses to making financial decisions are: SPENDING:
Tend to prioritize supporting the people and causes they care about
SAVING:
Can run short on funds for their own needs as they support others
PLANNING:
Usually consider the other's opinions and how their actions can impact them
SAFETY NET:
May focus on helping others regardless of their resources
RISK-TAKING:
Often leave important decisions to others rather than taking control
TIMING:
Frequently put off their own financial needs to help others
SECONDARY INFLUENCE: PROTECTION In situations where your secondary MoneyMind drives your decisions, you tend to value security and peace of mind. The Protection MoneyMind type's instinctive responses to making financial decisions are: SPENDING:
Often focus on cost, delay gratification, and live well within their means
SAVING:
Tend to focus on saving and can be critical of those who spend money freely
PLANNING:
Careful, meticulous, and motivated to protect themselves and loved ones
SAFETY NET:
Seldom feel that their safety net is large enough
RISK-TAKING:
Usually prepared for bad outcomes, can be apprehensive about risk and dislike losing
TIMING:
May require a high degree of certainty, potentially missing opportunities
Sam and Mary Sample, January 2022
9
2
What matters to us most?
HonestConversations
®
HonestConversations The majority of financial issues for both individuals and couples stem from the inability to recognize the ROLE THEIR EMOTIONS play in their decision making. We will walk you through a series of cards based on fears, commitments and happiness. Once you prioritize them, we will discuss why you chose them and how you feel about them. IT’S OFTEN STIMULATING, ALWAYS THOUGHT-PROVOKING AND NEVER BORING. It will get you thinking about money in a different light and help teach you to avoid emotions that lead you to bad financial decision making.
Sam and Mary Sample, January 2022
11
HonestConversations
®
Sam's Personal Priorities
Make work optional / retirement
I've worked hard to build my business and I want to develop a succession strategy that encourages the younger generation to assume control, while investigating opportunities for an outside sale. I'd like to be able to step away from the business to some degree (or totally) within 5 years.
Protect my lifestyle
Considering retirement, I want to feel confident that our lifestyle is protected so that we can continue living as we have.
Income security / safety net
Spend guilt free
Educate those I care about
12
Similar to protect my lifestyle, I need to feel secure and have adequate liquidity so that if there is a significant change in the markets or economy, we'll be ok.
We don't necessarily live on a budget, and just purchase what we need when we need it. I like living this way, and don't want to have to "penny-pinch."
I had a lot of student loans to get through my MBA program at Stanford. It was a challenge getting this paid off. That said, we firmly believe that education is of utmost value, and want to make sure our kids get the best education we can afford. They should pay part of it, but we don't want to saddle them with too much student debt.
Sam and Mary Sample, January 2022
HonestConversations
®
Mary's Personal Priorities
Protect my lifestyle
We've worked hard to get where we are, and I want to make sure that we can continue doing the things that make us and our family happy. I grew up in a household where things were very cyclical. Dad had a business and the inevitable peaks and valleys he encountered had an effect on our family.
Income security / safety net
Somewhat similar to my last response, I want to make sure that we always have enough liquid funds to weather the peaks and valleys of the economy without having to make big changes in our spending - especially in retirement.
Spend time with the people I care about
Family is very important. We've always worked to make sure that we can go on trips together and go to the lake frequently to unwind. Covid has disrupted this to a great extent and demonstrated to me how important this is.
Grow as a person and expand my passions
I really consider myself a lifelong learner and feel that exploring different hobbies and becoming good at them is a big part of life. Cooking, golf, hiking, and travel are a big part of my life.
Support my charitable causes
We are blessed with having enough to consider giving to our community and those organizations that we have a strong connection with. Our religious community and education are two big focuses for us.
Sam and Mary Sample, January 2022
13
HonestConversations
®
Make work optional / retirement
Score History
Mary
Sam
MS Mary Sample
7
SS Sam Sample
6
1/14/22
1/14/22
Goals
14
Consider retirement in 10 years.
Improvement Needed
Due 8/05/22
MS
Develop a succession plan for Sam's business 5 year target.
Improvement Needed
Due 8/05/22
SS
Sam and Mary Sample, January 2022
HonestConversations
®
Protect my lifestyle
Score History
Mary
Sam
MS Mary Sample 1/14/22
SS
Sam Sample 1/14/22
6
8
Goals Make sure our financial plan meets our goals with some stress-testing.
Sam and Mary Sample, January 2022
Optimal Position
MS SS
15
HonestConversations
®
Income security / safety net
Score History
Mary
Sam
MS Mary Sample
8
SS Sam Sample
7
1/14/22
1/14/22
Goals
16
Evaluate existing life insurance.
Immediate Action Needed Due 2/04/22
SS
Adequate emergency and liquidity funds.
Optimal Position
Due 8/05/22
MS SS
Sam and Mary Sample, January 2022
HonestConversations
®
Spend time with the people I care about
Score History
Mary
Sam
MS Mary Sample
8
SS Sam Sample
7
1/14/22
1/14/22
Goals Get back on track with family trips postpandemic.
Improvement Needed
Due 5/06/22
MS SS
Educate those I care about
Score History
Mary
Sam
MS Mary Sample
5
SS Sam Sample
5
1/14/22
1/14/22
Goals More aggressively fund 529 accounts for our children
Sam and Mary Sample, January 2022
Optimal Position
MS SS
17
HonestConversations
18
®
Sam and Mary Sample, January 2022
Sam and Mary Sample, January 2022
19
3
Where are we today?
Net Worth
Net Worth Making good decisions requires complete information. Our next step involves us working together to match your financial aspirations with your current resources. We’ll help you make objective and smart trade-offs to help maximize the financial life you can lead.
Sam and Mary Sample, January 2022
21
Net Worth
$7,709,538 Total
Assets Liabilities
ASSETS Cash & Equivalents
$7,944,538 $235,000
$7,944,538 $375,000
Taxable Investments
$4,006,248
Tax-Deferred Investments
$1,550,000
Tax-Exempt Investments
$1,003,290
Real Estate
$1,010,000
LIABILITIES
($235,000)
Long-Term Liabilities
22
($235,000)
Sam and Mary Sample, January 2022
Net Worth
CASH AND EQUIVALENTS NAME
Bank Savings & Checking (0001)
TAXABLE INVESTMENTS NAME
$375,000 AMOUNT
$375,000
$4,006,248 AMOUNT
Business Loan (0001)
$350,000
Charles Sample UTMA (0001)
$140,000
Grace Sample UTMA (0001)
$141,000
Sam & Mary Sample Joint Account (0001)
$575,248
Sample Family Trust (0001)
TAX-DEFERRED INVESTMENTS NAME
$2,800,000
$1,550,000 AMOUNT
Mary Sample IRA (0001)
$300,000
Sam Sample IRA (0001)
$1,250,000
TAX-EXEMPT INVESTMENTS NAME
Charles 529 (0001)
Sam and Mary Sample, January 2022
$1,003,290 AMOUNT
$120,000
23
Net Worth
Donor Advised Fund (0001)
$167,000
Grace 529 (0001)
$120,000
Mary Sample Roth IRA (0001)
$283,540
Sam Sample Roth IRA (0001)
$312,750
REAL ESTATE NAME
$1,010,000 AMOUNT
Lake House (0001)
$575,000
Residence (0001)
$435,000
LONG-TERM LIABILITIES NAME
Primary Residence Mortgage (0001)
($235,000) AMOUNT
($235,000)
The information contained in this material is for general informational purposes only and does not constitute an offer, solicitation, invitation or recommendation to buy or sell any financial instruments or to provide any investment advice or service of any kind. See the back of the book for more important information
24
Sam and Mary Sample, January 2022
Sam and Mary Sample, January 2022
25
26
Sam and Mary Sample, January 2022
Investments
Investments Making good decisions requires complete information. Our next step involves us working together to match your financial aspirations with your current resources. We’ll help you make objective and smart trade-offs to help maximize the financial life you can lead.
Sam and Mary Sample, January 2022
27
Investments
Your Investing Priorities Preference
Performance
Protection
Costs
Taxes
$6,934,538 Your Asset Allocation
ASSET TYPE
60/20/5/15
56/23/10/10/0
TARGET ALLOCATION
CURRENT PORTFOLIO
CURRENT ALLOCATION
Equity
AMOUNT
56%
Fixed income
23%
$3,895,927 $1,624,468
Cash & Equivalents
10%
$712,525
Alternatives
10%
$701,618
Unclassified
28
0%
$0
Sam and Mary Sample, January 2022
Investments
ACCOUNTS ACCOUNT NAME
CLASSIFICATION
Sam Sample IRA
Tax-Deferred Investments
$1,250,000
Taxable Investments
$2,800,000
Tax-Deferred Investments
$300,000
Tax-Exempt Investments
$312,750
Tax-Exempt Investments
$283,540
Taxable Investments
$575,248
Tax-Exempt Investments
$167,000
Taxable Investments
$140,000
Taxable Investments
$141,000
Tax-Exempt Investments
$120,000
IRA
Sample Family Trust RLT
Mary Sample IRA IRA
Sam Sample Roth IRA Roth IRA
Mary Sample Roth IRA Roth IRA
Sam & Mary Sample Joint Account
STRATEGY
ALLOCATION
AMOUNT
JTWROS
Donor Advised Fund DAF
Charles Sample UTMA UTMA
Grace Sample UTMA UTMA
Charles 529 529
Sam and Mary Sample, January 2022
29
Investments
Grace 529 529
Bank Savings & Checking
Tax-Exempt Investments
$120,000
Cash & Equivalents
$375,000
Taxable Investments
$350,000
JTWROS
Business Loan JTWROS
The information contained in this material is for general informational purposes only and does not constitute an offer, solicitation, invitation or recommendation to buy or sell any financial instruments or to provide any investment advice or service of any kind. See the back of the book for more important information
30
Sam and Mary Sample, January 2022
Sam and Mary Sample, January 2022
31
32
Sam and Mary Sample, January 2022
Financial Plan
Financial Plan Just as endowments and pensions can be “underfunded” and “overfunded”, so too can individuals. Our process is meant to help provide you with clarity about your ability to meet your goals based on the inflows and resources available, measured against your outflows and goals over time. We offer you insights into how you are funded to achieve your specific goals over time. We work together with you to assess various trade-offs based on factors that you can control. Once we have determined the best strategy based on your input, we can then move to design the plan of action to meet your specific desires.
Sam and Mary Sample, January 2022
33
Financial Plan
FUNDED SCORE Last Updated on 1/14/22
80 Underfunded
Ideal
Overfunded
See Disclaimers section in the back of this Guidebook to see how your funding score was determined.
34
Sam and Mary Sample, January 2022
Financial Plan
Plan Inputs
Sam and Mary Sample, January 2022
35
Financial Plan
SPENDING NAME
36
PRIORITY
PERIOD
AMOUNT
Charitable Gifting
Wish
2022 - End of Plan
$20,000
College - Charles
Want
2025
$54,880
College - Grace
Want
2028
$54,880
Gifts to kids and Grandkids
Wish
2022 - End of Plan
0
Health Care - Both Medicare
Need
$9,491
Health Care - Both Retired Before Medicare
Need
$25,942
Health Care - Mary Alone Medicare
Need
$5,988
Health Care - Sam Medicare / Mary Retired Before Medicare
Need
$17,697
Lake House Renovations
Want
2025
$250,000
New Car for Mary
Want
2025 - End of Mary's Plan
$50,000
New Car for Sam
Want
2023 - End of Sam's Plan
$50,000
New Sailboat
Want
2022
$200,000
Retirement - Basic Living Expense - Both Retired
Need
$269,531
Sam and Mary Sample, January 2022
Financial Plan
Retirement - Basic Living Expense - Mary Alone Retired
$269,531
Need
RETIREMENT/OTHER INCOME NAME
PERIOD
AMOUNT
Mary - First Year Benefit
$39,395
Sam - First Year Benefit
$40,831
SAVINGS NAME
PERIOD
AMOUNT
Savings - Total Savings This Year
$25,200
Savings_Details - Taxable
$25,200
TIMING CONTROL NAME
PERIOD
AMOUNT
Retirement Age - Mary
59 in 2031
0
Retirement Age - Sam
63 in 2031
0
Investing involves risk and investments may lose value. Please consider your objectives before investing. Investments are not FDIC insured. Past performance does not guarantee future results. Investment outcomes and projections are forward-looking statements and hypothetical in nature. All information and recommendations provided “as is” based on information provided by clients. We have treated the information provided as reliable, have not independently verified any information and make no warranty or guaranty as to the accuracy or completeness of the information provided. See the back of the book for more important information regarding how your score was calculated
Sam and Mary Sample, January 2022
37
38
Sam and Mary Sample, January 2022
Insurance
Insurance
Sam and Mary Sample, January 2022
39
Insurance
LIFE INSURANCE POLICIES POLICY NUMBER
DEATH BENEFIT
ANNUAL PREMIUM
Sam
$1,000,000
$2,400
Mary
Sam
$500,000
$7,200
Mary
Sam
Mary
$1,000,000
$4,140
INSURED
DURATION
MONTHLY BENEFIT
ELIMINATION PERIOD
ANNUAL PREMIUM
Sam
5 years
$8,000
90
$4,800
OWNER
BENEFICIARY
INSURED
Sam
Mary
Sam
COMPANY NAME
DISABILITY POLICY NUMBER
40
COMPANY NAME
Sam and Mary Sample, January 2022
Sam and Mary Sample, January 2022
41
4
How do we get where we need to go?
4.
How do I get where I need to go? 42
Brandon & Kate Sample, July 2019
Goals
Goals TO PUT YOUR DECISIONS INTO GOALS requires a clear set of specific steps. Your personalized plan is the product of HonestConversations® and objective analysis about where you are headed financially. It’s a document that lays out assumptions about your future and helps you focus on the factors that you can control. Once established, our team can then begin to tactically implement a unique strategy based on the specific circumstances and desires of your plan.
Sam and Mary Sample, January 2022
43
Goals
YOUR TOP 5 CARDS Make work optional / retirement
Protect my lifestyle
1
Income security / safety net
2
3
Spend time with the
Educate those
people I care
I care about
about
4
5
STATUS LEGEND Optimal Position
Improvement Needed
Immediate Action Needed
N/A | Pending Review
YOUR GOALS TYPE
44
NAME
NOTES
STATUS
PRIORITIES
CHECK IN DATE
Evaluate existing life insurance.
3
2/04/22
Get back on track with family trips post-pandemic.
4
5/06/22
Consider retirement in 10 years.
1
8/05/22
Develop a succession plan for Sam's business 5 year target.
1
8/05/22
Adequate emergency and liquidity funds.
3
8/05/22
Make sure our financial plan meets our goals with some stress-testing.
2
More aggressively fund 529 accounts for our children
5
Sam and Mary Sample, January 2022
Sam and Mary Sample, January 2022
45
5
How do we stay on course?
5.
Am I on course? 46
Brandon & Kate Sample, July 2019
Tasks
Tasks TO PUT YOUR DECISIONS INTO ACTION requires a clear set of specific steps. Your personalized plan is the product of HonestConversations® and objective analysis about where you are headed financially. It’s a document that lays out assumptions about your future and helps you focus on the factors that you can control. Once established, our team can then begin to tactically implement a unique strategy based on the specific circumstances and desires of your plan.
Sam and Mary Sample, January 2022
47
Tasks
CLIENT TASKS DESCRIPTION
STATUS
DUE DATE
ASSIGNED
Enroll in cooking class
Completed
2/4/22
Mary Sample
Review life insurance coverage
Completed
2/28/22
Doug Kinsey, CFP®, CIMA®
Schedule family vacation
Completed
2/28/22
Sam and Mary
Succession Plan for Sam
Not Started
4/22/22
Doug Kinsey, CFP®, CIMA®
Get quotes on lake house remodel
Not Started
5/6/22
Sam and Mary
Research sailboats available for sale
Not Started
6/30/22
Sam Sample
48
Sam and Mary Sample, January 2022
Disclaimers
Disclaimers Accounts The information contained in this material is for general informational purposes only and does not constitute an offer, solicitation, invitation or recommendation to buy or sell any financial instruments or to provide any investment advice or service of any kind. This report is not to be used as an official books and records statement. Please contact the relevant product sponsor if you have any questions about the statements. Any information and balances included herein have been obtained from sources believed to be reliable but its accuracy and completeness are not guaranteed and have not been independently verified by United Capital Financial Advisers, LLC, d/b/a Goldman Sachs Personal Financial Management (“GS PFM”) or your financial advisor. In the event of a discrepancy, the sponsor's valuation shall prevail. This information is not meant to supersede your custodial account statement which should be reviewed regularly. If you have any questions about the accuracy of your investment holdings, investment allocation or the management fee displayed on this statement, please contact your advisor immediately. Data reflected within this report may reflect data held at various custodians and may not be covered under SIPC. SIPC coverage only applies to those assets held at a SIPC member firm. You should contact your financial representative, or the other entity, or refer to the other entity's statement, regarding SIPC coverage. Assets reflected on this table that are not managed by your investment advisor are not part of an official books and records statement. For feebased accounts only: The data may or may not reflect the deduction of investment advisory fees. If the investment is being managed through a fee-based account or agreement, the returns may be reduced by those applicable advisory fees. Any information and balances included herein have been obtained from sources believed to be reliable but its accuracy and completeness are not guaranteed and have not been independently verified by United Capital Financial Advisers, LLC, d/b/a Goldman Sachs Personal Financial Management (“GS PFM”) or your financial advisor. PLEASE REFER TO YOUR ACCOUNT CUSTODIAN CONFIRMATIONS AND STATEMENTS FOR THE MOST ACCURATE INFORMATION ABOUT YOUR ACCOUNT(S).
Investments The information contained in this material is for general informational purposes only and does not constitute an offer, solicitation, invitation or recommendation to buy or sell any financial instruments or to provide any investment advice or service of any kind. Investing involves risk and investments may lose value. Please consider your objectives before investing. Investments are not FDIC insured. Past performance does not guarantee future results. Investment outcomes and projections are forward-looking statements and hypothetical in nature. This report is not to be used as an official books and records statement. Information displayed is believed to be accurate, but has not been independently verified. Please refer to your custodian statement for the most accurate information about your assets. Fees are negotiated with each client individually. Fees noted generally do not include supplemental fees charged by sub-managers, or other fees (e.g., operational fees). Sub-manager fees may change as sub-manager changes are made. A client’s holdings, dollar amount invested, and allocation may vary based on actual investments. The percentage of fund assets, net of reimbursements, used to pay for operating expenses and management fees, including but not limited to, 12b-1 fees, administrative fees, and all other asset-based costs incurred by the fund, except brokerage costs. Fund expenses are reflected in the fund’s NAV. Sales charges are not included in the expense ratio. The expense ratio for fund of funds is the aggregate expense ratio as defined as the sum of the wrap or sponsor fees plus the estimated weighted average of the underlying fund fees. Net reimbursements, the Prospectus Net Expense Ratio is collected annually from a fund’s prospectus. The estimated expense ratio reflects the approximate internal expenses applicable to assets invested in GS PFM Personalized Portfolios.
Financial Planning Software Investing involves risk and investments may lose value. Please consider your objectives before investing. Investments are not FDIC insured. Past performance does not guarantee future results. Investment outcomes and projections are forward-looking statements and hypothetical in nature. All information and recommendations provided “as is” based on information provided by clients. We have treated the information provided as reliable, have not independently verified any information and make no warranty or guaranty as to the accuracy or completeness of the information provided.
Disclaimers
INFORMATION REGARDING THIRD PARTY SOFTWARE USED TO CALCULATE YOUR FUNDING SCORE MoneyGuidePro: The projections or other information generated by MoneyGuidePro regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. The return assumptions in MoneyGuidePro are not reflective of any specific product, and do not include any fees or expenses that may be incurred by investing in specific products. The actual returns of a specific product may be more or less than the returns used in MoneyGuidePro. It is not possible to directly invest in an index. Financial forecasts, rates of return, risk, inflation, and other assumptions may be used as the basis for illustrations. They should not be considered a guarantee of future performance or a guarantee of achieving overall financial objectives. Past performance is not a guarantee or a predictor of future results of either the indices or any particular investment. MoneyGuidePro results may vary with each use and over time. This report is a diagnostic tool intended to review your current financial situation and suggest potential planning ideas and concepts that may be of benefit. The purpose of the report is to illustrate how accepted financial and estate planning principles may improve your current situation. This report is based upon information and assumptions provided by you (the client). This report provides broad and general guidelines on the advantages of certain financial planning concepts and does not constitute a recommendation of any particular technique. The consolidated report is provided for informational purposes as a courtesy to you. We recommend that you review your plan annually, unless changes in your personal or financial circumstances require more frequent review. All reports should be reviewed in conjunction with your fact summary and this Disclaimer page. The term “plan” or “planning,” when used within this report, does not imply that a recommendation has been made to implement one or more financial plans or make a particular investment. Nor does the plan or report provide legal, accounting, financial, tax or other advice. Rather, the report and the illustrations therein provide a summary of certain potential financial strategies. The reports provide projections based on various assumptions and are therefore hypothetical in nature and not guarantees of investment returns. You should consult your tax and/or legal advisers before implementing any transactions and/or strategies concerning your finances. It is important to compare the information on this report with the statements you receive from the custodian(s) for your account(s). Please note that there may be minor variations due to calculation methodologies. If you have any questions, please contact your financial representative. Also, your account(s) may not be covered by FDIC or SIPC. FDIC and SIPC coverages apply only to certain assets and may be subject to limitations. Questions about coverage that may apply should be directed to the asset provider or sponsor. The information contained in this report is not written or intended as financial, tax or legal advice. The information provided herein may not be relied on for purposes of avoiding any federal tax penalties. You are encouraged to seek financial, tax and legal advice from your professional advisers.
MONEYGUIDEPRO ASSUMPTIONS AND LIMITATIONS INFORMATION PROVIDED BY YOU Information that you provided about your assets, financial goals, and personal situation are key assumptions for the calculations and projections in this Report. If any of the assumptions are incorrect, you should notify your financial adviser. Even small changes in assumptions can have a substantial impact on the results shown in this Report. The information provided by you should be reviewed periodically and updated when either the information or your circumstances change.
ASSUMPTIONS AND LIMITATIONS MoneyGuidePro offers several methods of calculating results, each of which provides one outcome from a wide range of possible outcomes. All results in this Report are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. All results use simplifying assumptions that do not completely or accurately reflect your specific circumstances. No Plan or Report has the ability to accurately predict the future. As investment returns, inflation, taxes, and other economic conditions vary from the MoneyGuidePro assumptions, your actual results will vary (perhaps significantly) from those presented in this Report.
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All MoneyGuidePro calculations use asset class returns, not returns of actual investments. The projected return assumptions used in this Report are estimates based on average annual returns for each asset class. The portfolio returns are calculated by weighting individual return assumptions for each asset class according to your portfolio allocation. The portfolio returns may have been modified by including adjustments to the total return and the inflation rate. The portfolio returns assume reinvestment of interest and dividends at net asset value without taxes, and also assume that the portfolio has been rebalanced to reflect the initial recommendation. No portfolio rebalancing costs, including taxes, if applicable, are deducted from the portfolio value. No portfolio allocation eliminates risk or guarantees investment results. MoneyGuidePro does not provide recommendations for any products or securities.
REPORT IS A SNAPSHOT AND DOES NOT PROVIDE LEGAL, TAX, OR ACCOUNTING ADVICE This Report provides a snapshot of your current financial position and can help you to focus on your financial resources and goals, and to create a plan of action. Because the results are calculated over many years, small changes can create large differences in future results. The information contained in this report is not written or intended as financial, tax or legal advice. The information provided herein may not be relied on for purposes of avoiding any federal tax penalties. Before making decisions with legal, tax, or accounting ramifications, you are encouraged to seek financial, tax and legal advice from your professional advisers.
MONEYGUIDEPRO METHODOLOGY The methodology used is Monte Carlo simulations using projected returns.
RESULTS USING MONTE CARLO SIMULATIONS The results referenced in this guide use Monte Carlo simulations. Tools such as the Monte Carlo simulation will yield different results depending on the variables inputted, and the assumptions underlying the calculation. For those reports that perform a Monte Carlo analysis, the term ‘Monte Carlo’ will be included in the report title. The assumptions with respect to the simulation include the assumed rates of return and standard deviations of the portfolio model associated with each asset. The assumed rates of return are based on the historical rates of returns and standard deviations, for certain periods of time, for the benchmark indices comprising the asset classes in the model portfolio. Since the market data used to generate these rates of return change over time your results will vary with each use over time. Monte Carlo simulations are used to show how variations in rates of return each year can affect your results. A Monte Carlo simulation calculates the results of your Plan by running it many times, each time using a different sequence of returns. Some sequences of returns will give you better results, and some will give you worse results. These multiple trials provide a range of possible results, some successful (you would have met all your goals) and some unsuccessful (you would not have met all your goals). The percentage of trials that were successful is the probability that your Plan, with all its underlying assumptions, could be successful. In MoneyGuidePro, this is the Probability of Success. Analogously, the percentage of trials that were unsuccessful is the Probability of Failure. The Results Using Monte Carlo Simulations indicate the likelihood that an event may occur as well as the likelihood that it may not occur. In analyzing this information, please note that the analysis does not take into account actual market conditions, which may severely affect the outcome of your goals over the long-term. Monte Carlo Analysis is a mathematical process used to implement complex statistical methods that chart the probability of certain financial outcomes at certain times in the future. This charting is accomplished by generating hundreds of possible economic scenarios that could affect the performance of your investments. The Monte Carlo simulation uses scenarios to determine the probability of outcomes resulting from the asset allocation choices and underlying assumptions regarding rates of return and volatility of certain asset classes. Some of these scenarios will assume very favorable financial market returns, consistent with some of the best periods in investing history for investors. Some scenarios will conform to the worst periods in investing history. Most scenarios will fall somewhere in between. The projections or other information generated by this Monte Carlo simulation regarding various investment outcomes are hypothetical in nature and do not reflect actual investment results and are not guarantees of future results. The outcomes presented using the Monte Carlo simulation represent only a few of the many possible outcomes. Since past performance and market conditions may not be repeated in the future, your investment goals may not be fulfilled by following advice that is based on the projections. MoneyGuidePro uses a specialized methodology called Beyond Monte Carlo™, a statistical analysis technique that provides results that are as accurate
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as traditional Monte Carlo simulations with 10,000 trials, but with fewer iterations and greater consistency. Beyond Monte Carlo™ is based on Sensitivity Simulations, which re-runs the Plan only 50 to 100 times using small changes in the return. This allows a sensitivity of the results to be calculated, which, when analyzed with the mean return and standard deviation of the portfolio, allows the Probability of Success for your Plan to be directly calculated.