Pathways Sample Client Presentation 4Q12 by PFP

4Q12 Stuart and Susan

Preston

Agenda

Global Market Review Your WealthPath Quarterly Portfolio Review

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Global Market Review

Quarterly Market Review Fourth Quarter 2012

And the Market Climbed a Wall of Worry… The Good Ship Lollipop is well out to sea, as a nation we have gone over the “Fiscal Cliff” largely unscathed, all the while markets around the globe climbed the proverbial wall of worry delivering returns well above the norm. As we have often stated: “ you’ve got to be in the water to catch a wave” and 2012 was a year where many investors remained on the beach while others caught a nice wave indeed. The total market value of global equities, as measured by the MSCI All‐Country World Index, increased by an astonishing $6.5 trillion in 2012! Despite the steady diet of bad news, most markets around the world delivered strong returns and our diversified portfolios participated nicely. Major stock market indices around the globe delivered double‐digit total returns. US Stocks advanced 16% (S&P 500) while International Developed Markets gained 16.4% (MSCI World Index )and the MSCI Emerging Markets Index returned an amazing 18.2%. All in all it was a very good and quite unexpected year for global investors. Suffice it to say that the financial press provided abundant reasons to avoid financial markets on a daily basis. Beware: CNBC, Bloomberg and most financial new stations are dangerous to your long term financial plans! Talking heads and newspaper headlines provided daily gloom to feed our doubts and investors who acted on impulse likely missed a great opportunity to participate in strong returns across the global markets. Once again the closest we will ever get to a free lunch in the markets is “Diversification” and last year it served all of our investors quite well.

Quarterly Market Review Fourth Quarter 2012

This report features world capital market performance and a timeline of events for the last quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets. The report also illustrates the performance of globally diversified portfolios and features a topic of the quarter.

Overview: Market Summary Timeline of Events World Asset Classes US Stocks International Developed Stocks Emerging Markets Stocks Select Country Performance Real Estate Investment Trusts (REITs) Commodities Fixed Income Global Diversification Quarterly Topic: The Top Ten Money Excuses

Market Summary

Fourth Quarter 2012 Index Returns

US Stock Market

International Developed Stocks

Emerging Markets Stocks

+0.25%

+5.93%

+5.58%

STOCKS

Global Real Estate

US Bond Market

+3.82%

+0.22%

Global Bond Market

+0.89%

BONDS

Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio. Market segment (index representation) as follows: US Stock Market (Russell 3000 Index), International Developed Stocks (MSCI World ex USA Index [net div.]), Emerging Markets (MSCI Emerging Markets Index [net div.]), Global Real Estate (S&P Global REIT Index), US Bond Market (Barclays US Aggregate Bond Index), and Global Bond Market (Barclays Global Aggregate Bond Index [Hedged to USD]). The S&P data are provided by Standard & Poor's Index Services Group. Russell data copyright © Russell Investment Group 1995–2012, all rights reserved. MSCI data copyright MSCI 2012, all rights reserved. Barclays data provided by Barclays Bank PLC. US long‐ term bonds, bills, and inflation data © Stocks, Bonds, Bills, and Inflation Yearbook™, Ibbotson Associates, Chicago (annually updated work by Roger G. Ibbotson and Rex A. Sinquefield).

Timeline of Events: A Quarter in Review Fourth Quarter 2012 Euro zone unemployment continues to rise, reaching new high of 11.6% in September.

Hurricane Sandy devastates portions of Caribbean and Mid‐Atlantic coast of US.

Growth in China’s economy continues to slow for seventh straight quarter.

1,444 09/30/2012

Euro zone officially falls back into recession, marking its second downturn in four years.

Consumer debt in Canada reaches record 166% of disposable income.

Swiss bank UBS agrees to pay $1.5 billion in fines to international regulators in connection with LIBOR scandal. US Congress struggles to come to deal Japan launches to avert additional “fiscal cliff.” stimulus to help boost country’s declining GDP.

Barack Obama re‐elected president of United States.

1,426 12/31/2012

The graph illustrates the S&P 500 Index price changes over the quarter. The return of the price‐only index is generally lower than the total return of the index that also includes the dividend returns. Source: The S&P data are provided by Standard & Poor's Index Services Group. The events highlighted are not intended to explain market movements.

World Asset Classes

Fourth Quarter 2012 Index Returns Global equity markets followed a strong third quarter with positive returns in the fourth quarter, as most major global indices ended the year with gains. Developed markets outside the US led equity returns, followed by global REITs.

MSCI World ex USA…

6.96

S&P Global ex US REIT…

6.19

MSCI World ex USA…

5.93

MSCI Emerging…

5.58

MSCI Emerging…

5.10

MSCI World ex USA…

4.84

MSCI Emerging…

4.70

Dow Jones US…

2.31

Russell 2000 Index

1.85

Russell 1000 Value… Barclays US Aggregate…

1.52 0.22

One‐Month US… 0.02 S&P 500 Index ‐0.38

Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio. Market segment (index representation) as follows: US Large Cap (S&P 500 Index), US Small Cap (Russell 2000 Index), US Value (Russell 1000 Value Index), US Real Estate (Dow Jones US Select REIT Index), Global Real Estate (S&P Global ex US REIT Index), International Developed Large, Small, and Value (MSCI World ex USA, ex USA Small, and ex USA Value Indexes [net div.]), Emerging Markets Large, Small, and Value (MSCI Emerging Markets, Emerging Markets Small, and Emerging Markets Value Indexes), US Bond Market (Barclays US Aggregate Bond Index), and Treasury (One‐Month US Treasury Bills). The S&P data are provided by Standard & Poor's Index Services Group. Russell data copyright © Russell Investment Group 1995–2012, all rights reserved. MSCI data copyright MSCI 2012, all rights reserved. Dow Jones data (formerly Dow Jones Wilshire) provided by Dow Jones Indexes. Barclays data provided by Barclays Bank PLC. US long‐term bonds, bills, and inflation data © Stocks, Bonds, Bills, and Inflation Yearbook™, Ibbotson Associates, Chicago (annually updated work by Roger G. Ibbotson and Rex A. Sinquefield).

US Stocks

Fourth Quarter 2012 Index Returns

US small cap stocks and US value stocks experienced positive performance in the fourth quarter, which contributed to slightly positive broad market returns of 0.25%. Large cap and large cap growth stocks had negative returns of ‐ 0.38% and ‐1.32%, respectively. Small cap value stocks enjoyed the best performance, up 3.22% for the quarter. US stocks across the board were positive for the year ended December 31, 2012.

Large Cap Large Cap Growth

Period Returns (%) Asset Class Marketwide Large Cap Large Cap Value Large Cap Growth Small Cap Small Cap Value Small Cap Growth

* Annualized 1 Year 16.42 16.00 17.51 15.26 16.35 18.05 14.59

3 Years** 11.20 10.87 10.86 11.35 12.25 11.57 12.82

5 Years** 10 Years** 2.04 7.68 1.66 7.10 0.59 7.38 3.12 7.52 3.56 9.72 3.55 9.50 3.49 9.80

International Developed Stocks Fourth Quarter 2012 Index Returns

International developed equities posted strong performance, with all major asset classes showing gains for the quarter.

Ranked Returns for the Quarter (%)

US Currency

6.96

Value

7.87

The US dollar appreciated relative to most major foreign developed currencies.

5.93

Large Cap Across the size and style spectrum, large caps outperformed small caps and value outperformed growth.

6.90 4.90

Growth

5.95 4.84

Small Cap

6.68

Period Returns (%) Asset Class Large Cap Small Cap Value Growth

Local Currency

* Annualized 1 Year 16.41 17.48 17.29 15.48

3 Years** 3.65 7.19 2.78 4.46

5 Years** 10 Years** ‐3.43 8.60 ‐0.70 12.04 ‐3.72 9.06 ‐3.18 8.05

Emerging Markets Stocks Fourth Quarter 2012 Index Returns Emerging markets returned 5.58%, with all other major equity sub‐classes posting positive returns. The growth effect was mixed across the size spectrum. Value outperformed growth in mid cap and small cap stocks but underperformed in large caps. The US dollar depreciated against most of the main emerging markets currencies.

Period Returns (%)

* Annualized

Asset Class

1 Year

3 Years**

5 Years**

10 Years**

Large Cap Small Cap Value Growth

18.22 22.22 15.87 20.56

4.66 4.21 4.06 5.24

‐0.92 0.21 0.07 ‐1.95

16.52 17.27 18.17 14.84

Select Country Performance Fourth Quarter 2012 Index Returns

Europe led developed markets returns, as the IMF, ECB, and EU provided additional aid to Greece. Egypt, the worst‐performing emerging markets country, recently ratified a new Islamist‐backed constitution, which has resulted in violent uprisings from opposition forces. The best‐performing emerging market was Turkey, which experienced its first investment‐grade rating in almost two decades.

Developed Markets (% Returns) Greece Austria Portugal Finland France Spain Netherlands Italy Germany Ireland Switzerland Australia Belgium Hong Kong Japan Sweden UK New Zealand Singapore Denmark Norway Israel US Canada

Emerging Markets (% Returns) Turkey China Colombia Poland Philippines Thailand Peru Mexico South Africa Korea Brazil Malaysia Russia Morocco Taiwan India Indonesia Chile ‐1.41 ‐2.70

17.87 16.79 12.68 11.93 10.89 9.77 9.59 9.56 8.66 8.05 7.90 6.60 6.45 5.96 5.13 4.94 4.47 4.28 3.65 3.14 1.63 0.38 0.25 0.21

‐10.88

17.66 13.65 12.25 11.88 11.48 6.67 6.39 6.06 5.82 4.12 3.63 3.28 2.44 1.84 1.02 0.88 0.87 0.05 Hungary Czech Republic Egypt

Country performance based on respective indices in the MSCI All Country World IMI Index (for developed markets), Russell 3000 Index (for US), and MSCI Emerging Markets IMI Index. All returns in USD and net of withholding tax on dividends. MSCI data copyright MSCI 2012, all rights reserved. Russell data copyright © Russell Investment Group 1995– 2012, all rights reserved.

Real Estate Investment Trusts (REITs) Fourth Quarter 2012 Index Returns

International REITs continued to outperform US REITs in the fourth quarter, posting a positive return of 6.19% vs. 2.31%. US REITs rebounded from four consecutive months of negative returns, while international REITs posted their fifth straight positive quarter.

Period Returns (%) Asset Class US REITs Global REITs (ex US)

* Annualized 1 Year 17.12 31.92

3 Years** 17.94 12.12

5 Years** 10 Years** 5.08 11.48 ‐1.28 10.43

Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio. Number of REIT stocks and total value based on the two indices. All index returns are net of withholding tax on dividends. Dow Jones US Select REIT Index data provided by Dow Jones ©. S&P Global ex US REIT Index data provided by Standard and Poor’s © 2012.

Commodities

Fourth Quarter 2012 Index Returns

Commodities sold off in the fourth quarter, erasing much of the ground gained in the prior period. Concerns about the pace of global economic growth generally drove values lower. Hard commodities fell. Values for petroleum‐based commodities also generally fell, reflecting slower global consumption patterns and recessionary economic conditions in various markets. Soft commodities offered a mixed experience for investors. Lean hogs, cotton, and cattle advanced, while coffee, wheat, and soybeans suffered large declines.

Unleaded Gas WTI Crude Oil Zinc Heating Oil Copper Aluminum Sugar Gold Soybean Oil Corn Nickel Natural Gas Soybean Silver Wheat Coffee

Past performance is not a guarantee of future results. Index is not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio. All index returns are net of withholding tax on dividends. Dow Jones‐UBS Commodity Index Total Return data provided by Dow Jones ©.

Fixed Income

Fourth Quarter 2012 Index Returns

Global bonds outperformed the US bond market in the fourth quarter, and investors’ hunger for yield remained strong.

12/30/11 12/30/12 9/30/12

Non‐US government bonds significantly outperformed US Treasuries, as European political and economic conditions appeared to stabilize. Low credit quality corporate bonds outperformed in both the US and developed markets, as market participants sought yield in a global environment of low rates. The US TIPS Index generated a positive return. US TIPS have outpaced nominal US Treasury returns over both short‐ and long‐term horizons.

Period Returns (%) Asset Class One‐Month US Treasury Bills (SBBI) Bank of America Merrill Lynch Three‐Month T‐Bills Bank of America Merrill Lynch One‐Year US Treasury Note Citigroup World Government Bond 1‐5 Years (hedged) US Long‐Term Government Bonds (SBBI) Barclays Corporate High Yield Barclays Municipal Bonds Barclays US TIPS Index

* Annualized 1 Year 0.06 0.11 0.24 2.10 3.31 15.81 6.78 6.98

3 Years** 5 Years**10 Years** 0.07 0.40 1.65 0.11 0.52 1.78 0.55 1.42 2.19 2.13 3.04 3.32 13.42 9.33 7.50 11.86 10.34 10.62 6.57 5.91 5.10 8.90 7.04 6.66

Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio. Yield curve data from Federal Reserve. State and local bonds are from the Bond Buyer Index, general obligation, 20 years to maturity, mixed quality. AAA‐AA Corporates represent the Bank of America Merrill Lynch US Corporates, AA‐AAA rated. A‐BBB Corporates represent the Bank of America Merrill Lynch US Corporates, BBB‐A rated. Barclays data provided by Barclays Bank PLC. US long‐term bonds, bills, inflation, and fixed income factor data © Stocks, Bonds, Bills, and Inflation (SBBI) Yearbook™, Ibbotson Associates, Chicago (annually updated work by Roger G. Ibbotson and Rex A. Sinquefield). Citigroup bond indices copyright 2012 by Citigroup. The Merrill Lynch Indices are used with permission; copyright 2012 Merrill Lynch, Pierce, Fenner & Smith Incorporated; all rights reserved.

Global Diversification

Fourth Quarter 2012 Index Returns

These portfolios illustrate the performance of different global stock/bond mixes and highlight the benefits of diversification. Mixes with larger allocations to stocks are considered riskier but also have higher expected returns over time.

Period Returns (%) Asset Class 1 Year 100% Stocks 16.80 75/25 12.57 50/50 8.37 25/75 4.19 100% Treasury Bi 0.06

* Annualized 3 Years** 5 Years** 10 Years* 7.19 ‐0.61 8.66 5.66 0.10 7.16 3.95 0.50 5.48 2.09 0.59 3.64 0.07 0.40 1.65

Stock/Bond Mix 100% Stocks 75/25 50/50 25/75 100% Treasury Bills

Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect expenses associated with the management an actual portfolio. Asset allocations and the hypothetical index portfolio returns are for illustrative purposes only and do not represent actual performance. Global Stocks represented by MSCI All Country World Index (gross div.) and Treasury Bills represented by US One‐Month Treasury Bills. Globally diversified portfolios rebalanced monthly. Data copyright MSCI 2012, all rights reserved. Treasury bills © Stocks, Bonds, Bills, and Inflation Yearbook™, Ibbotson Associates, Chicago (annually updated work by Roger G. Ibbotson and Rex A. Sinquefield).

The Top Ten Money Excuses Fourth Quarter 2012

Human beings have an astounding facility for self‐deception when it comes to our own money. We tend to rationalize our own fears. So instead of just recognizing how we feel and reflecting on the thoughts that creates, we cut out the middle man and construct the façade of a logical‐sounding argument over a vague feeling. These arguments are often elaborate, short‐ term excuses that we use to justify behavior that runs counter to our own long‐term interests. Here are ten of these excuses: 1) "I JUST WANT TO WAIT TILL THINGS BECOME CLEARER.” It's understandable to feel unnerved by volatile markets. But waiting for volatility to "clear" before investing often results in missing the return that can accompany the risk. 2) "I JUST CAN'T TAKE THE RISK ANYMORE.” By focusing exclusively on the risk of losing money and paying a premium for safety, we can end up with insufficient funds for retirement. Avoiding risk can also mean missing an upside.

3) "I WANT TO LIVE TODAY. TOMORROW CAN LOOK AFTER ITSELF.” Often used to justify a reckless purchase, it's not either/or. You can live today and mind your savings. You just need to keep to your budget.

8) "THE GUY AT THE BAR/MY UNCLE/MY BOSS TOLD ME…” The world is full of experts; many recycle stuff they've heard elsewhere. But even if their tips are right, this kind of advice rarely takes your circumstances into account.

4) "I DON'T CARE ABOUT CAPITAL GAIN. I JUST NEED THE INCOME.” Income is fine. But making income your sole focus can lead you down a dangerous road. Just ask anyone who recently invested in collateralized debt obligations.

9) "I JUST WANT CERTAINTY.” Wanting confidence in your investments is fine. But certainty? You can spend a lot of money trying to insure yourself against every possible outcome. While it cannot guard against every risk, it's cheaper to diversify your investments.

5) "I WANT TO GET SOME OF THOSE LOSSES BACK.” It's human nature to be emotionally attached to past bets, even losing ones. But, as the song says, you have to know when to fold 'em. 6) "BUT THIS STOCK/ FUND/ STRATEGY HAS BEEN GOOD TO ME.” We all have a tendency to hold on to winners too long. But without disciplined rebalancing, your portfolio can end up carrying much more risk than you bargained for. 7) "BUT THE NEWSPAPER SAID…” Investing by the headlines is like dressing based on yesterday's weather report. The market has usually reacted already and moved on to worrying about something else.

10) "I'M TOO BUSY TO THINK ABOUT THIS.” We often try to control things we can't change—like market and media noise—and neglect areas where our actions can make a difference—like the costs of investments. That's worth the effort. Given how easy it is to pull the wool over our own eyes, it can pay to seek independent advice from someone who understands your needs and circumstances and who holds you to the promises you made to yourself in your most lucid moments. Call it the "no more excuses" strategy.

Your WealthPath

WealthPath Process X Discovery Meeting

Complete discovery process

[

Regular Progress Meetings

Progress & implementation of your Wealthpath

Investment Planning Meeting

Presentation of investment plan

Z Initial Follow-up Meeting Risk Management Review

Your WealthPath

Stuart and Susan Preston

Prepared by: Brian Murphy President

February 07, 2013

Table Of Contents Personal Information and Summary of Financial Goals Current Financial Goals Graph Resources Summary Net Worth Summary - All Resources Net Worth Detail - All Resources What If Worksheet Life Expectancy Table and Graph Insurance Inventory Tax and Inflation Assumptions

1 2 3-6 7 8 9 - 14 15 16 17

Personal Information and Summary of Financial Goals Stuart and Susan Preston Needs 10

Retirement - Living Expense Stuart Susan Both Retired (2014-2045) Susan Alone Retired (2046-2049)

61 / 2014 60 / 2014 $360,000 $288,000 Base Inflation Rate (3.10%)

Wants 7

College - Steven 4 years starting in 2012

$18,000 Base Inflation Rate plus 2.90% (6.00%)

College - Sean 4 years starting in 2013

$18,000 Base Inflation Rate plus 2.90% (6.00%)

Personal Information Stuart Male - born 12/25/1953, age 59 Employed - $350,000 Susan Female - born 01/25/1954, age 59 Homemaker Married, US Citizens living in AZ â&#x20AC;˘ This section lists the Personal and Financial Goal information you provided, which will be used to create your Report. It is important that it is accurate and complete.

See Important Disclosure Information section in this Report for explanations of assumptions, limitations, methodologies, and a glossary. Prepared for : Stuart and Susan Preston 02/07/2013

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 1 of 17

Current Financial Goals Graph This graph shows the annual costs for your Financial Goals, as you have specified. Because these costs will be used to create your Plan, it is important that they are accurate and complete. All amounts are in after-tax, future dollars.

See Important Disclosure Information section in this Report for explanations of assumptions, limitations, methodologies, and a glossary. Prepared for : Stuart and Susan Preston 02/07/2013

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 2 of 17

Resources Summary Investment Assets Description

Owner

Preston PSP

Stuart

Current Value $465,566

Account Total Preston, Sean

Custodial

Stuart

College - Steven

$20,474

College - Steven

$2,919,221

Fund All Goals

$154,099

Fund All Goals

$140,171 $102,019 $121,882 $345,758 $483,338 $317,837 $130,385 $129,208 $1,021,546 $27,217 $23,618

PROSHARES ULTRASHORT S&P 500

$27,525

SPDR GOLD TR GOLD SHS ETF

$48,717

Account Total

$20,474

DFA 1 YEAR FIXED INCOME PORTFOLIO DFA COMMODITY STRATEGY PORTFOLIO DFA EMERGING MARKETS CORE EQUITY FUND DFA FIVE YEAR GLOBAL FIXED INCOME PORTFOLIO DFA INTERNATIONAL CORE EQUITY PORTFOLIO DFA INVESTMENT GRADE PORTFOLIO I DFA REAL ESTATE SECURITIES PORTFOLIO DFA SHORT TERM EXTENDED QUALITY PORTFOLIO DFA U.S. CORE EQUITY 2 PORTFOLIO FDIC INSURED DEPOSIT ACCOUNT IDA12 NOT COVERED BY SIPC PROSHARES ULTRASHORT LEHMAN 20YR TREAS

Preston, Stuart 401(k)

Fund All Goals

$20,474

FDIC INSURED DEPOSIT ACCOUNT IDA12 NOT COVERED BY SIPC Preston, Stuart

Assign to Goal

$465,566

FDIC INSURED DEPOSIT ACCOUNT IDA12 NOT COVERED BY SIPC Preston, Steven

Additions

Stuart $154,099

See Important Disclosure Information section in this Report for explanations of assumptions, limitations, methodologies, and a glossary. Prepared for : Stuart and Susan Preston 02/07/2013

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 3 of 17

Resources Summary Investment Assets Description

Owner

Preston, Stuart and Susan

Joint Survivorship

DFA 1 YEAR FIXED INCOME PORTFOLIO DFA COMMODITY STRATEGY PORTFOLIO DFA EMERGING MARKETS CORE EQUITY FUND DFA FIVE YEAR GLOBAL FIXED INCOME PORTFOLIO DFA INTERNATIONAL CORE EQUITY PORTFOLIO DFA INVESTMENT GRADE PORTFOLIO I DFA REAL ESTATE SECURITIES PORTFOLIO DFA SHORT TERM EXTENDED QUALITY PORTFOLIO DFA U.S. CORE EQUITY 2 PORTFOLIO DFA U.S. SMALL CAP VALUE PORTFOLIO FDIC INSURED DEPOSIT ACCOUNT IDA12 NOT COVERED BY SIPC

Current Value

$3,132 $109,142 $14,495 $30,863 $3,651 $29,480 $40,800 $15,246 $5,109

PROSHARES ULTRASHORT S&P 500

$23,935 Stuart

Account Total Stuart

$35,000

Fund All Goals

$88,602

Fund All Goals

$128,740

Fund All Goals

$20,015

Fund All Goals

$87,336 $1,266 Susan

Account Total Preston, Susan IRA

$337,104 $337,104

DFA GLOBAL EQUITY PORTFOLIO INSTITUTIONAL FDIC INSURED DEPOSIT ACCOUNT IDA12 NOT COVERED BY SIPC Preston, Susan 401(k)

Fund All Goals

$93,320

$65,280

Preston, Stuart IRA

$489,761

Assign to Goal

$55,308

ISHARES GOLD TRUST COM Preston, Stuart INDIV

Additions

$128,740 Susan

See Important Disclosure Information section in this Report for explanations of assumptions, limitations, methodologies, and a glossary. Prepared for : Stuart and Susan Preston 02/07/2013

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 4 of 17

Resources Summary Investment Assets Description

Owner

DFA GLOBAL EQUITY PORTFOLIO INSTITUTIONAL FDIC INSURED DEPOSIT ACCOUNT IDA12 NOT COVERED BY SIPC

Current Value

Additions

Assign to Goal

Future Value

Assign to Goal

$19,718 $297

Total Investment Assets :

$4,644,056

Other Assets Description

Owner

Current Value

Primary Home

Joint

$800,000

$2,631,349 in 2049

Leave To Estate

Realestate 3

Stuart

$200,000

$638,057 in 2049

Leave To Estate

Realestate 1

Joint

$200,000

$400,000 in 2027

Fund All Goals

Realestate 2

Stuart

$400,000

$632,324 in 2025

Fund All Goals

Insurance

Stuart

$110,644

Not Funding Goals

Universal Life Insurance

Stuart

$112,927

Not Funding Goals

Total of Other Assets :

$1,823,571

Insurance Policies Description

Owner

Insured

Cash Value Life Insurance Policies Summary (included in Assets) Insurance Stuart Stuart Other Asset Universal Life Insurance Other Asset

Stuart

Insurance Policies Summary (not included in Assets) Group Disability Group Disability Income Personal Term Life Term Life

Stuart

Beneficiary

Annual Premium

Co-Client of Insured - 100%

$15,412

Co-Client of Insured - 100%

Stuart

$1,806

Stuart

$2,944

Stuart

Cash Value

Death Benefit Premium Paid

$110,644

$600,644 Until insured dies

$112,927

$363,000

Co-Client of Insured - 100%

$1,000,000

See Important Disclosure Information section in this Report for explanations of assumptions, limitations, methodologies, and a glossary. Prepared for : Stuart and Susan Preston 02/07/2013

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 5 of 17

Resources Summary Insurance Policies Description

Owner

Insured

Beneficiary

Annual Premium

Cash Value

Death Benefit Premium Paid

Total Death Benefit of All Policies :

$1,963,644

If the assets include a Variable Life Investment Asset, the value shown for this policy in the Premium column reflects only the assumed annual increase in the cash value of the insurance policy and not the total premium. Social Security Description

Owner

Value

Social Security

Stuart

$29,874 starting At Stuart's Normal Full Retirement Age

File Status

Assign to Goal Fund All Goals

Social Security

Susan

$14,937 starting At Susan's Normal Full Retirement Age

Fund All Goals

Description

Owner

Value

Assign to Goal

Real Estate Investment

Stuart

$10,000 from 2013 to 2027 No

Retirement Income Increase Rate

Fund All Goals

Liabilities Type

Description

Owner

1st Mortgage

Mortgage and LOC

Joint Total Outstanding Balance :

Outstanding Balance Interest Rate Monthly Payment $300,000 $300,000

See Important Disclosure Information section in this Report for explanations of assumptions, limitations, methodologies, and a glossary. Prepared for : Stuart and Susan Preston 02/07/2013

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 6 of 17

Net Worth Summary - All Resources This is your Net Worth Summary as of 02/07/2013. Your Net Worth is the difference between what you own (your Assets) and what you owe (your Liabilities). To get an accurate Net Worth statement, make certain you have entered all of your Assets and Liabilities.

Description

Total

Investment Assets Employer Retirement Plans

$3,384,787

Individual Retirement Accounts

$108,617

Annuities & Tax-Deferred Products

$282,839

Taxable and/or Tax-Free Accounts

$826,865

Total Investment Assets:

$4,603,108

Other Assets Personal Asset :

$800,000

Business and Property :

$800,000

Cash Value Life :

$223,571

Total Other Assets:

$1,823,571

Liabilities Investment Assets Other Assets

$4,603,108 +

Total Assets Total Liabilities Net Worth

$1,823,571 $6,426,679

Personal Real Estate Loan:

$300,000

Total Liabilities:

$300,000

Net Worth:

$6,126,679

$300,000 $6,126,679

See Important Disclosure Information section in this Report for explanations of assumptions, limitations, methodologies, and a glossary. Prepared for : Stuart and Susan Preston 02/07/2013

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 7 of 17

Net Worth Detail - All Resources This is your Net Worth Detail as of 02/07/2013. Your Net Worth is the difference between what you own (your Assets) and what you owe (your Liabilities). To get an accurate Net Worth statement, make certain you have entered all of your Assets and Liabilities.

Description

Stuart

Susan

Joint

Total

Investment Assets Preston PSP Preston, Stuart Preston, Stuart IRA

$465,566

$2,919,221

$88,602

Preston, Susan IRA Preston, Stuart 401(k)

$20,015 $154,099

Preston, Susan 401(k) Preston, Stuart INDIV

$154,099 $128,740

$128,740

$337,104

Preston, Stuart and Susan Total Investment Assets:

$20,015

$3,964,592

$148,755

$489,761

$4,603,108

$800,000

Other Assets Primary Home Realestate 3

$200,000

Realestate 1

$200,000

Realestate 2

$400,000

Insurance

$110,644

Universal Life Insurance

$112,927

Total Other Assets:

$823,571

$1,000,000

$1,823,571

$300,000

Liabilities Mortgage and LOC Total Liabilities:

Net Worth:

$6,126,679

See Important Disclosure Information section in this Report for explanations of assumptions, limitations, methodologies, and a glossary. Prepared for : Stuart and Susan Preston 02/07/2013

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 8 of 17

What If Worksheet This Worksheet allows you to analyze and compare the results of one or more scenarios that you created by varying the Plan assumptions. Estimated % of Goal Funded Goals

Ideal $360,000

Recommended $200,000

Acceptable $180,000

Average Return

Bad Timing

Average Return

Bad Timing

Average Return

Bad Timing

65%

50%

100%

33%

32%

100%

Current dollars (in thousands) :

$1,134

$10,253

$7,891

$11,738

$9,770

Future dollars (in thousands) :

$3,508

$31,726

$24,416

$36,322

$30,230

Needs 10 Retirement Wants 7

College - Steven

College - Sean

Safety Margin (Value at End of Plan)

Monte Carlo Results

Likelihood of Funding All Goals

Your Confidence Zone: 75% - 90%

Probability of Success: < 40%

Probability of Success: 91%

Probability of Success: 94%

Below Confidence Zone

Above Confidence Zone

Indicates different data between the Scenario in the first column and the Scenario in any other column. See Important Disclosure Information section in this Report for explanations of assumptions, limitations, methodologies, and a glossary. Prepared for : Stuart and Susan Preston 02/07/2013

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 9 of 17

What If Worksheet Key Assumptions

Ideal $360,000

Recommended $200,000

Acceptable $180,000

Stress Tests Method(s)

Bad Timing Program Estimate Years of bad returns: 2014: -14.64% 2015: -2.84%

Funding Order Assets - Ignore Earmark

Retirement Income - Ignore Earmark

Custom PFP 60

Total Return :

9.96%

Standard Deviation :

11.80%

Total Return Adjustment :

-1.00%

Adjusted Real Return :

5.86%

Custom PFP 60

Hypothetical Average Rate of Return Before Retirement :

After Retirement : Total Return :

9.96%

Standard Deviation :

11.80%

Total Return Adjustment :

-1.00%

Adjusted Real Return :

5.86%

3.10%

0.00%

Base inflation rate : Tax-Free Options Before Retirement Reallocate a portion of bonds to tax-free: Percent of bond allocation to treat as tax-free: After Retirement Reallocate a portion of bonds to tax-free: Percent of bond allocation to treat as tax-free:

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 10 of 17

What If Worksheet Key Assumptions

Ideal $360,000

Recommended $200,000

Acceptable $180,000

Goals Living Expense Retirement Age Stuart

Stuart

Susan

$360,000

$200,000

$180,000

Susan Alone Retired

$288,000

$160,000

$144,000

Stuart Alone Retired

$288,000

$160,000

$144,000

$288,000

$160,000

$144,000

2012

$18,000

2013

$18,000

Planning Age

Both Retired Both Retired One Alone - Retired

One Alone - Employed Stuart Alone Employed College - Steven Year : Years of Education : Annual Cost : College - Sean Year : Years of Education : Annual Cost :

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 11 of 17

What If Worksheet Key Assumptions

Ideal $360,000

Recommended $200,000

Acceptable $180,000

Retirement Income Real Estate Investment Annual Income :

$10,000

2013

Select Your Own Year

2027

Customize Benefits

Normal

Age to begin retirement benefits:

At Stuart's Full Retirement Age 66 yrs 0 mos

Select benefit to use:

Use the Program Estimate

Social Security Amount:

$29,874

Widower annual benefit:

Reduce benefits by:

Normal

Age to begin retirement benefits:

At Susan's Full Retirement Age 66 yrs 0 mos

Select benefit to use:

Use the Program Estimate

Social Security Amount:

$14,937

Widower annual benefit:

Reduce benefits by:

Start Year : Select when income will end : Year to end retirement income : Social Security Select Social Security Strategy Stuart Select Filing Method: Select when benefits will begin:

Susan Select Filing Method: Select when benefits will begin:

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 12 of 17

What If Worksheet Key Assumptions

Ideal $360,000

Recommended $200,000

Acceptable $180,000

Asset Additions Preston, Stuart INDIV After-Tax Addition:

$35,000

Tax-Free Addition:

2013

Stuart's Qualified

Susan's Qualified

Stuart's Roth

Susan's Roth

Stuart's Tax-Deferred

Susan's Tax-Deferred

Taxable

Year additions begin: Stuart - Fund All Goals Extra Savings by Tax Category

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 13 of 17

What If Worksheet Key Assumptions

Ideal $360,000

Recommended $200,000

Acceptable $180,000

Other Assets Primary Home Include in Plan :

Yes

When received :

2049

$2,631,349

Yes

Amount of cash received : Realestate 3 Include in Plan : When received : Amount of cash received :

2049

$638,057

Yes

Realestate 2 Include in Plan : When received : Amount of cash received :

2025

$632,324

Yes

Realestate 1 Include in Plan : When received :

2027

$400,000

Include Tax Penalties :

Yes

Change Tax Rate?

0.00%

Amount of cash received : Tax Options

Year To Change : Change Tax Rate by this % (+ or -) :

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 14 of 17

Life Expectancy Table and Graph How long might you live? Stuart lives to age Chance you will live to age shown

Susan lives to age

Either lives to age

Non-Smoker

Smoker

Non-Smoker

Smoker

Non-Smoker

Smoker

50%

40%

30%

20%

10%

101

All calculations based on Annuity 2000 Mortality Table.

See Important Disclosure Information section in this Report for explanations of assumptions, limitations, methodologies, and a glossary. Prepared for : Stuart and Susan Preston 02/07/2013

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 15 of 17

Insurance Inventory Life Description

Owner

Insured

Death Benefit

Cash Value

Annual Premium

Beneficiary

Policy Start Date

Term Life

Stuart

$1,000,000

Insurance

Stuart

$600,644

$110,644

$15,412 Co-Client of Insured - 100%

Universal Life Insurance

Stuart

$363,000

$112,927

Co-Client of Insured - 100%

06/1999

If the assets include a Variable Life Investment Asset, the value shown for this policy in the Annual Premium column reflects only the assumed annual increase in the cash value of the insurance policy and not the total premium. Disability Description

Insured

Annual Premium

Tax Status

Monthly Benefit

Elimination Period

Benefit Period Inflation Option

Policy Start Date

Group Disability

Stuart

$1,806 pre-tax

$11,254

1 months

Until Age 65

No Inflation

11/1994

Disability Income

Stuart

$2,944 pre-tax

$7,600

3 months

Until Age 65

No Inflation

05/1994

See Important Disclosure Information section in this Report for explanations of assumptions, limitations, methodologies, and a glossary. Prepared for : Stuart and Susan Preston 02/07/2013

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 16 of 17

Tax and Inflation Assumptions Base Inflation Rate

Tax Penalty

Inflation rate :

3.10%

Include penalties in Plan? :

Social Security Inflation rate :

3.10%

Tax Free Earnings - Options

Tax Assumption Inflation rate :

3.10%

Use Tax-Free returns by Asset Class, Marginal Tax Rate to use during Retirement is 40.00%

Marginal Tax Rates Before Retirement

Tax Rates :

Yes

Federal

State

Local

33.00%

4.54%

0.00%

Untaxed Gain on Taxable Earnings - Before Retirement What portion of your Annual Taxable Investment Earnings will not be taxed until withdrawn?

0.00%

Long Term Capital Gains (LTCG) - Before Retirement What portion of your Taxable Investment Earnings will be taxed as Long Term Capital Gains?

20.00%

Long Term Capital Gains rate :

Use Program estimate

Tax Rates During Retirement Let the Program calculate taxes each year Local rate :

0.00%

Deduction estimate :

Use standard deductions

Untaxed Gain on Taxable Earnings - During Retirement What portion of your Annual Taxable Investment Earnings will not be taxed until withdrawn?

0.00%

Long Term Capital Gains (LTCG) - During Retirement What portion of your Taxable Investment Earnings will be taxed at the LTCG rate?

20.00%

Long Term Capital Gains rate :

Use Program estimate

Taxation of Social Security What portion of Social Security will be taxed?

85.00%

See Important Disclosure Information section in this Report for explanations of assumptions, limitations, methodologies, and a glossary. Prepared for : Stuart and Susan Preston 02/07/2013

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 17 of 17

Notes

How to Review Your Performance Report Online

If you are looking for a performance evaluation (which is what you see when you come in for your Regular Progress meetings); you will want to go to the website for our 3rd party review service, Orion. The web address is: www.advisorlynx.com

If you need a new login /password for either client site, please email Christina Boyd (cboyd@2pathways.com)

How to Review Your TD Ameritrade Accounts Online

Go straight to TD Ameritrade for copies of statements, trade confirmations, or 1099s The web address is: www.advisorclient.com

If you need a new login /password for either client site, please email Christina Boyd (cboyd@2pathways.com)

Disclosure Information

All portfolio performance data was directly obtained from TD Ameritrade and Orion Advisor Services. Pathways Financial Partners is not responsible for inaccurately reported data. Portfolio performance data is reported net of annual investment expenses and all advisory fees that apply. All portfolio performance and market value data is for the time period ending December 31, 2012. Past performance is no guarantee of future results, and there is always the risk that an investor may lose money.

Â&#x192;

Quarterly Portfolio Review

Quarterly Statement Household:

Preston, Stuart and Susan

Period:

10/1/2012 to 12/31/2012

Returns are Net of Fees ** The first 12 month returns are not annualized

Activity Summary

Allocation Summary

Period

YTD

Since Inception

(10/1/2012 to 12/31/2012)

(1/1/2012 to 12/31/2012)

(6/8/2005 to 12/31/2012)

$3,248,211.35

$3,039,710.47

$0.00

Contributions

$0.00

$1,819,959.55

Distributions

$0.00

($200,112.01)

Transfer In/Out

$0.00

$782,941.24

Net Dividends/Interest/Gains Withdrawn

$0.00

Miscellaneous Charges

$0.00

($2,022.73)

Bond Accrual

$0.00

$262,582.35

$471,083.23

$1,110,027.65

$3,510,793.70

Beginning Market Value (Including Bond Accrual)

Market Value Increase/Decrease Ending Market Value (Including Bond Accrual)

Index Comparison

Risk Category Equity Fixed Income Unassigned Money Market

57.4 % 28.3 % 11.0 % 3.3 %

Returns are Net of Fees * The first 12 month returns are not annualized

for the period 10/1/2012 to 12/31/2012 (Including bond accrual)

Period

12/31/2012

QTD

YTD

1 Year

3 Year

5 Year

10 Year

Inception (6/8/2005)

Preston, Stuart and Susan

8.08 %

15.50 %

6.81 %

3.55 %

N/A

5.46 %

-0.48 %

4.32 %

5.17 %

5.44 %

N/A

5.26 %

MSCI EAFE

6.57 %

17.32 %

3.56 %

-3.69 %

N/A

3.86 %

MSCI Emerging Markets

5.58 %

18.22 %

4.66 %

-0.91 %

N/A

11.43 %

-0.38 %

16.00 %

10.87 %

1.66 %

N/A

4.55 %

Barclays Capital Global Agg Bond

S&P 500

Preston, Stuart and Susan

Quarterly Statement

Page 3 of 14

Account: Susan Preston (Individual Retirement Account), TD Ameritrade Returns are Net of Fees ** The first 12 month returns are not annualized

Activity Summary

Allocation Summary

Period

YTD

Since Inception

(10/1/2012 to 12/31/2012)

(1/1/2012 to 12/31/2012)

(11/28/2008 to 12/31/2012)

$18,144.25

$16,297.68

$0.00

Contributions

$0.00

$542.53

Distributions

$0.00

Transfer In/Out

$0.00

$11,293.78

Net Dividends/Interest/Gains Withdrawn

$0.00

Miscellaneous Charges

$0.00

($114.03)

Bond Accrual

$0.00

Beginning Market Value (Including Bond Accrual)

Market Value Increase/Decrease Ending Market Value (Including Bond Accrual)

Performance Summary

$567.15

$2,413.72

$6,989.12

$18,711.40

Risk Category Equity Money Market

97.5 % 2.5 %

Returns are Net of Fees * The first 12 month returns are not annualized

for the period 10/1/2012 to 12/31/2012 (Including bond accrual)

Period

12/31/2012

QTD

YTD

1 Year

3 Year

5 Year

10 Year

Inception (11/28/2008)

TD Ameritrade

3.13 %

14.81 %

7.09 %

N/A

12.23 %

Portfolio Detail, As Of Date - 12/31/2012 Account Number

Units

Price

Cost

Portfolio Composition

Value *

Susan Preston (IRA) Equity Global Equity DFA Global

888888888

1,288.97

$14.16

$10,774.00

$18,251.80

97.54 %

Global Equity Total:

$10,774.00

$18,251.80

97.54 %

Equity Total:

$10,774.00

$18,251.80

97.54 %

Preston, Stuart and Susan

Quarterly Statement

Page 4 of 14

Portfolio Detail, As Of Date - 12/31/2012 Account Number

Units

Price

Cost

Portfolio Composition

Value *

Money Market Money Market TD Bank USA FDIC Insrd Deposit NC by SIPC

888888888

459.60

$1.00

$459.60

2.46 %

Money Market Total:

$459.60

2.46 %

Money Market Total:

$459.60

2.46 %

Susan Preston (IRA) Total:

$11,233.60

$18,711.40

100.00 %

Account Total:

$11,233.60

$18,711.40

100.00 %

* Including bond accrual

Preston, Stuart and Susan

Quarterly Statement

Page 5 of 14

Account: Stuart Preston (Individual Retirement Account), TD Ameritrade Returns are Net of Fees ** The first 12 month returns are not annualized

Activity Summary

Allocation Summary

Period

YTD

Since Inception

(10/1/2012 to 12/31/2012)

(1/1/2012 to 12/31/2012)

(12/11/2008 to 12/31/2012)

$80,208.29

$72,154.94

$0.00

Contributions

$0.00

$4,361.72

Distributions

$0.00

Transfer In/Out

$0.00

$44,401.00

Net Dividends/Interest/Gains Withdrawn

$0.00

Miscellaneous Charges

$0.00

($88.23)

Bond Accrual

$0.00

$2,453.01

$10,506.36

$33,986.81

$82,661.30

Beginning Market Value (Including Bond Accrual)

Market Value Increase/Decrease Ending Market Value (Including Bond Accrual)

Performance Summary

Risk Category Equity Money Market

95.5 % 4.5 %

Returns are Net of Fees * The first 12 month returns are not annualized

for the period 10/1/2012 to 12/31/2012 (Including bond accrual)

Period

12/31/2012

QTD

YTD

1 Year

3 Year

5 Year

10 Year

Inception (12/11/2008)

TD Ameritrade

3.06 %

14.56 %

7.16 %

N/A

13.97 %

Portfolio Detail, As Of Date - 12/31/2012 Account Number

Units

Price

Cost

Portfolio Composition

Value *

Stuart Preston (IRA) Equity Global Equity DFA Global

999999999

5,575.02

$14.16

$46,825.99

$78,942.34

95.50 %

Global Equity Total:

$46,825.99

$78,942.34

95.50 %

Equity Total:

$46,825.99

$78,942.34

95.50 %

Preston, Stuart and Susan

Quarterly Statement

Page 6 of 14

Portfolio Detail, As Of Date - 12/31/2012 Account Number

Units

Price

Cost

Portfolio Composition

Value *

Money Market Money Market TD Bank USA FDIC Insrd Deposit NC by SIPC

999999999

3,718.96

$1.00

$3,718.96

4.50 %

Money Market Total:

$3,718.96

4.50 %

Money Market Total:

$3,718.96

4.50 %

Stuart Preston (IRA) Total:

$50,544.95

$82,661.30

100.00 %

Account Total:

$50,544.95

$82,661.30

100.00 %

* Including bond accrual

Preston, Stuart and Susan

Quarterly Statement

Page 7 of 14

Account: Stuart and Susan Preston (Joint), TD Ameritrade Returns are Net of Fees ** The first 12 month returns are not annualized

Activity Summary

Allocation Summary

Period

YTD

Since Inception

(10/1/2012 to 12/31/2012)

(1/1/2012 to 12/31/2012)

(12/2/2008 to 12/31/2012)

$498,945.86

$485,113.23

$0.00

Contributions

$0.00

($199,944.93)

Distributions

$0.00

($200,088.01)

Transfer In/Out

$0.00

$549,332.46

Net Dividends/Interest/Gains Withdrawn

$0.00

Miscellaneous Charges

$0.00

($904.93)

Bond Accrual

$0.00

$71,110.05

$84,942.68

$421,661.32

$570,055.91

Beginning Market Value (Including Bond Accrual)

Market Value Increase/Decrease Ending Market Value (Including Bond Accrual)

Performance Summary

Risk Category Fixed Income Unassigned Equity Money Market

39.6 % 30.4 % 25.9 % 4.1 %

Returns are Net of Fees * The first 12 month returns are not annualized

for the period 10/1/2012 to 12/31/2012 (Including bond accrual)

Period

12/31/2012

QTD

YTD

1 Year

3 Year

5 Year

10 Year

Inception (12/2/2008)

TD Ameritrade

14.25 %

17.51 %

7.49 %

N/A

22.96 %

Portfolio Detail, As Of Date - 12/31/2012 Account Number

Units

Price

Cost

Portfolio Composition

Value *

Stuart and Susan Preston (JNT)

Specialty Proshares Ultra Short 500

987987987

2,000.00

$54.11

$71,442.47

$108,220.00

18.98 %

$71,442.47

$108,220.00

18.98 %

$71,369.59

$65,116.80

11.42 %

Commodity Total:

$71,369.59

$65,116.80

11.42 %

Total:

$142,812.06

$173,336.80

30.41 %

Specialty Total:

Commodity iShares Gold Trust

987987987

4,000.00

$16.28

Preston, Stuart and Susan

Quarterly Statement

Page 8 of 14

Portfolio Detail, As Of Date - 12/31/2012 Account Number

Units

Price

Cost

Portfolio Composition

Value *

Fixed Income Global Fixed Inc DFA 5-Year Global Fixed Income

987987987

9,823.77

$11.15

Global Fixed Inc Total:

$110,639.61

$109,534.99

19.21 %

$110,639.61

$109,534.99

19.21 %

Fixed Income DFA Short-Term Extended Quality

987987987

2,702.13

$10.91

$29,369.13

$29,480.25

5.17 %

DFA Inflation Protected

987987987

2,465.58

$12.80

$27,453.81

$31,559.42

5.54 %

$56,822.94

$61,039.67

10.71 %

$55,331.81

$55,254.27

9.69 %

Short Term Bond Total:

$55,331.81

$55,254.27

9.69 %

Fixed Income Total:

$222,794.36

$225,828.93

39.62 %

$105,048.00

$90,435.80

15.86 %

$105,048.00

$90,435.80

15.86 %

$31,023.99

$37,017.65

6.49 %

$31,023.99

$37,017.65

6.49 %

$13,023.99

$13,533.20

2.37 %

$13,023.99

$13,533.20

2.37 %

$3,024.00

$3,511.99

0.62 %

$3,024.00

$3,511.99

0.62 %

Fixed Income Total:

Short Term Bond DFA 1-Year Fixed Income

987987987

5,354.10

$10.32

Equity Commodity DFA Commodity Strategy

987987987

9,840.68

$9.19 Commodity Total:

All Cap Equity DFA US Core II

987987987

3,039.22

$12.18

All Cap Equity Total:

Intl Large Blend DFA International Core

987987987

1,269.53

$10.66

Intl Large Blend Total:

Real Estate DFA Real Estate

987987987

133.33

$26.34 Real Estate Total:

Preston, Stuart and Susan

Quarterly Statement

Page 9 of 14

Portfolio Detail, As Of Date - 12/31/2012 Account Number

Units

Price

Cost

Portfolio Composition

Value *

Emerging Mkt DFA Emerging Markets Core

987987987

149.93

$20.40

$3,024.00

$3,058.47

0.54 %

Emerging Mkt Total:

$3,024.00

$3,058.47

0.54 %

Equity Total:

$155,143.98

$147,557.11

25.88 %

$23,333.07

4.09 %

Money Market Total:

$23,333.07

4.09 %

Money Market Total:

$23,333.07

4.09 %

Stuart and Susan Preston (JNT) Total:

$544,083.47

$570,055.91

100.00 %

Account Total:

$544,083.47

$570,055.91

100.00 %

Money Market Money Market TD Bank USA FDIC Insrd Deposit NC by SIPC

987987987

23,333.07

$1.00

* Including bond accrual

Preston, Stuart and Susan

Quarterly Statement

Page 10 of 14

Account: Stuart Preston PSP 5/1/2005 (Qualified Plan), TD Ameritrade Returns are Net of Fees ** The first 12 month returns are not annualized

Activity Summary

Allocation Summary

Period

YTD

Since Inception

(10/1/2012 to 12/31/2012)

(1/1/2012 to 12/31/2012)

(6/8/2005 to 12/31/2012)

$2,650,912.95

$2,466,144.62

$0.00

Contributions

$0.00

$2,015,000.23

Distributions

$0.00

($24.00)

Transfer In/Out

$0.00

$177,914.00

Net Dividends/Interest/Gains Withdrawn

$0.00

Miscellaneous Charges

$0.00

($915.54)

Bond Accrual

$0.00

Beginning Market Value (Including Bond Accrual)

Market Value Increase/Decrease Ending Market Value (Including Bond Accrual)

Performance Summary

$188,452.14

$373,220.47

$647,390.40

$2,839,365.09

Risk Category Equity Fixed Income Unassigned Money Market

62.3 % 27.0 % 7.5 % 3.1 %

Returns are Net of Fees * The first 12 month returns are not annualized

for the period 10/1/2012 to 12/31/2012 (Including bond accrual)

Period

12/31/2012

QTD

YTD

1 Year

3 Year

5 Year

10 Year

Inception (6/8/2005)

TD Ameritrade

7.11 %

15.13 %

6.90 %

2.16 %

N/A

4.52 %

Portfolio Detail, As Of Date - 12/31/2012 Account Number

Units

Price

Cost

Portfolio Composition

Value *

Stuart Preston PSP 5/1/2005 (QUAL)

Specialty Proshares Ultrashort 20+ Yr Treasury

654654654

1,400.00

$63.45

$52,783.84

$88,830.00

3.13 %

Proshares Ultra Short 500

654654654

2,300.00

$54.11

$81,567.76

$124,453.00

4.38 %

Specialty Total:

$134,351.60

$213,283.00

7.51 %

Total:

$134,351.60

$213,283.00

7.51 %

Preston, Stuart and Susan

Quarterly Statement

Page 11 of 14

Portfolio Detail, As Of Date - 12/31/2012 Account Number

Units

Price

Cost

Portfolio Composition

Value *

Equity All Cap Equity DFA US Core II

654654654

76,095.99

$12.18

All Cap Equity Total:

$765,011.98

$926,849.19

32.64 %

$765,011.98

$926,849.19

32.64 %

$472,945.58

$451,254.62

15.89 %

$472,945.58

$451,254.62

15.89 %

Intl Large Blend DFA International Core

654654654

42,331.58

$10.66

Intl Large Blend Total:

Commodity SPDR Gold Trust

654654654

300.00

$162.02

$36,590.96

$48,606.12

1.71 %

DFA Commodity Strategy

654654654

10,758.00

$9.19

$105,047.99

$98,866.05

3.48 %

$141,638.95

$147,472.17

5.19 %

$106,906.55

$125,432.16

4.42 %

$106,906.55

$125,432.16

4.42 %

$97,667.35

$119,001.07

4.19 %

Emerging Mkt Total:

$97,667.35

$119,001.07

4.19 %

Equity Total:

$1,584,170.41

$1,770,009.21

62.34 %

Commodity Total:

Real Estate DFA Real Estate

654654654

4,762.04

$26.34 Real Estate Total:

Emerging Mkt DFA Emerging Markets Core

654654654

5,833.39

$20.40

Fixed Income Global Fixed Inc DFA Investment Grade Portfolio

654654654

4,708.10

$10.90

$50,024.00

$51,318.27

1.81 %

DFA 5-Year Global Fixed Income

654654654

31,121.35

$11.15

$340,233.38

$347,003.03

12.22 %

$390,257.38

$398,321.30

14.03 %

$85,690.17

$100,004.48

3.52 %

Global Fixed Inc Total:

Fixed Income DFA Inflation Protected

654654654

7,812.85

$12.80

Preston, Stuart and Susan

Quarterly Statement

Page 12 of 14

Portfolio Detail, As Of Date - 12/31/2012 Account Number DFA Short-Term Extended Quality

654654654

Units

Price

11,843.04

Cost $10.91

Portfolio Composition

Value *

$128,140.02

$129,207.54

4.55 %

$213,830.19

$229,212.02

8.07 %

$138,681.99

$140,035.17

4.93 %

Short Term Bond Total:

$138,681.99

$140,035.17

4.93 %

Fixed Income Total:

$742,769.56

$767,568.49

27.03 %

$88,504.39

3.12 %

Money Market Total:

$88,504.39

3.12 %

Money Market Total:

$88,504.39

3.12 %

Stuart Preston PSP 5/1/2005 (QUAL) Total:

$2,549,795.96

$2,839,365.09

100.00 %

Account Total:

$2,549,795.96

$2,839,365.09

100.00 %

Fixed Income Total:

Short Term Bond DFA 1-Year Fixed Income

654654654

13,569.30

$10.32

Money Market Money Market TD Bank USA FDIC Insrd Deposit NC by SIPC

654654654

88,504.39

$1.00

* Including bond accrual

Preston, Stuart and Susan

Quarterly Statement

Page 13 of 14

Report Disclaimer Performance Evaluation Disclosure This report has been prepared from data believed to be reliable, but no representation is made as to its accuracy or completeness. Past performance is no assurance of future results. Performance is reflected net of advisory and Orion audit fees. Total return and principal value will vary. This information is provided to you in combined form, solely for your convenience and ease of review. If your objective and/or risk classification has changed, please notify us immediately.

BENCHMARK INFO Barclays Capital 1-5 Year Gov-Credit The Barclays Capital 1-5 Year Gov/Credit Bond Index is a 1-5 year component of the U.S. Government/Credit Index. This index includes securities in the Government and Credit Indexes. The Government index includes Treasuries (public obligations of the U.S. Treasury that have remaining maturities of more than one year) and agencies (publicly issued debt of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. Government). The Credit index includes publicly issued U.S. corporate and foreign debentures and Securities notes that meet specified maturity, liquidation and quality requirements. Barclays Capital Global Aggregate Bond The Barclays Capital Global Aggregate Bond Index provides a broad-based measure of the global investment-grade fixed-rate debt markets. The Global Aggregate index contains three major components - the U.S. Aggregate Index, the Pan-European Aggregate Index, and the Asian-Pacific Aggregate index. The Global Aggregate Index family includes a wide range of standard and customized sub-indices by liquidity constraint, sector, quality and maturity. Standard & Poors 500 The Standard and Poors 500 Index (S&P 500) is a group of investments that can be used as a yardstick to measure other similar investments. The Standard & Poor's 500 is an index of 500 stocks measuring the performance of the growth and the value styles of investing in large cap U.S. Stocks. It is often used as a standard measure in assessing the performance of large company stocks. Russell 2000 Value The Russell 2000 Value index is constructed to provide a comprehensive and unbiased barometer of the small-cap value segment of the US Equity universe. It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. The Index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity and that the represented companies continue to reflect value characteristics. MSCI EAFE Morgan Stanley Capital International â&#x20AC;&#x201C; Europe, Australia, Far East. The MSCI EAFE International Index is compiled from 21 other stock market indexes representing the major markets of the world, excluding the United States. It is generally used as a measure of stock market performance outside of the US. MSCI EAFE Small Cap The MSCI EAFE Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the US & Canada. The MSCI Small Cap Index targets 40% of the eligible Small Cap universe within each industry group within each country. MSCI defines the Small Cap universe as all listed securities with a market capitalization in the range of USD $200 â&#x20AC;&#x201C; $1,500 million. MSCI Emerging Markets The MSCI Emerging markets index is a US dollar denominated index comprised of stocks of countries with below average per capita GDP as defined by the World Bank, foreign ownership restrictions, a lax regulatory environment, and greater perceived market risk than in the developed countries. Within this index, MSCI aims to capture an aggregate of 60% of local market capitalization.

PATHWAYS FINANCIAL PARTNERS DISCLOSURE INFORMATION Form ADV Part II and Schedule F Offering

Preston, Stuart and Susan

Quarterly Statement

Page 14 of 14

Form ADV Part II and Schedule F comprise our part of our disclosure documents. These forms provide important information about our firm, business and personnel. By this notice we offer to send a copy of our most recent disclosure document to you upon request, since the current form may vary from your initial copy. Miscellaneous Charges Miscellaneous Charges include TD Ameritrade expenses such as trading and custody fees. Orionâ&#x20AC;&#x2122;s quarterly third party fee is also included within this category and includes auditing and administrative expenses that are charged to the clientâ&#x20AC;&#x2122;s account.

2/7/2013 4:42:27 PM

Preston, Stuart and Susan