Pathways Sample Client Presentation 2Q13 by PFP

2Q13 Stuart and Susan

Preston

Agenda

Global Market Review Your WealthPath Quarterly Portfolio Review

Â&#x192;

Global Market Review

Quarterly Market Review Second Quarter 2013

•

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 Art of Letting Go

Market Summary Second Quarter 2013 Index Returns

US Stock Market

International Developed Stocks

Emerging Markets Stocks

+2.69%

-1.61%

-8.08%

STOCKS

Global Real Estate

-4.39%

US Bond Market

Global Bond Market

-2.32%

-1.73%

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 1995–2013, all rights reserved. MSCI data copyright MSCI 2013, 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 Second Quarter 2013 On May 22, Fed Reserve Chairman Ben Bernanke mentions possibility of tapering bond purchases if economy continues to progress.

European Central Bank cuts its key interest rate to 0.5%, down from its last change in July 2012.

Protests erupt in Gezi Park, Turkey, concerning redevelopment plans for new mosque and shopping center and later turn to anger against government policies. Fed Chairman Ben Bernanke announces possible scenario ending Fedâ&#x20AC;&#x2122;s unlimited bond-buying program beginning later this year and ending it entirely in mid-2014.

Fitch downgrades UK's credit rating from AAA to AA+, primarily due to weaker economic and fiscal outlook.

0% 87-year-old Giorgio Napolitano re-elected president of Italy following 2 months of political deadlock.

-2%

Gold posts its largest 1-day decline, falling more than $125 per ounce.

-4% 3/31

Citizens of Brazil protest against rising transportation costs and alleged misuse of government spending.

Bank of Japan announces stimulus plan, injecting $1.4 trillion into economy in less than 2 years and driving inflation up to 2%.

4/30

5/31

6/30

The graph illustrates the MSCI All Country World Index (net div.) daily returns over the quarter. Source: MSCI data copyright MSCI 2013, all rights reserved. The events highlighted are not intended to explain market movements. The index is not available for direct investment. Past performance is not a guarantee of future results.

World Asset Classes Second Quarter 2013 Index Returns The US market led equity returns. Emerging markets strongly underperformed across all asset classes, with negative returns primarily driven by poor performance in May and June.

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 1995–2013, all rights reserved. MSCI data copyright MSCI 2013, 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 Second Quarter 2013 Index Returns All major US asset classes, with the exception of REITs, maintained positive performance in the 2nd quarter, with the broad market returning 2.69%. Asset class returns ranged from 3.74% for small growth stocks to 2.06% for large growth stocks. Across the size spectrum, returns were mixed. Small growth outperformed large growth, and large value outperformed small value.

Period Returns (%)

* Annualized

Asset Class

1 Year

3 Years**

Marketwide Large Cap Large Cap Value Large Cap Growth Small Cap Small Cap Value Small Cap Growth

21.46 20.60 25.32 17.07 24.21 24.76 23.67

18.63 18.45 18.51 18.68 18.67 17.33 19.97

5 Years** 7.25 7.01 6.67 7.47 8.77 8.59 8.88

10 Years** 7.81 7.30 7.79 7.40 9.53 9.30 9.63

International Developed Stocks Second Quarter 2013 Index Returns International developed markets posted negative returns for the quarter. The strong size premium present in the first quarter was reversed in the second. Consistent with the first quarter, the US dollar appreciated relative to most major foreign developed currencies, with the exception of the euro. Across the size and style spectrum, large beat small and value outperformed growth.

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

* Annualized

1 Year 17.07 17.82 17.39 16.73

3 Years** 5 Years** 10 Years** 9.43 -0.84 7.86 10.80 2.06 10.25 8.92 -0.61 7.97 9.88 -1.10 7.67

Emerging Markets Stocks Second Quarter 2013 Index Returns

Emerging markets continued to post negative returns. There was a marginal size premium, with small caps outperforming large caps by 61 bps. Across the style spectrum, growth outperformed value by 3.41%. The US dollar appreciated vs. most emerging markets currencies.

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

* Annualized

1 Year 2.87 9.86 -1.21 6.89

3 Years** 3.38 3.72 1.72 5.00

5 Years** -0.43 4.55 -0.46 -0.47

10 Years** 13.66 14.74 14.66 12.63

Select Country Performance Second Quarter 2013 Index Returns

The majority of developed and emerging markets countries posted negative returns in the second quarter. Japan continued to outperform most developed market countries. The best-performing emerging markets country was Hungary, which exited its recession in the first quarter.

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 2013, all rights reserved. Russell data copyright ÂŠ Russell Investment Group 1995â&#x20AC;&#x201C;2013, all rights reserved.

Real Estate Investment Trusts (REITs) Second Quarter 2013 Index Returns

REITs had negative performance during the quarter, with International REITs strongly underperforming US REITs by approximately 7%. International REITs experienced their first negative quarter for the first time in the last year and a half.

Period Returns (%)

* Annualized

Asset Class

1 Year

3 Years**

US REITs Global REITs (ex US)

7.69 14.28

18.08 15.47

5 Years** 6.97 2.20

10 Years** 10.68 7.91

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 © 2013.

Commodities Second Quarter 2013 Index Returns Commodities continued to decline, as the DJUBS Commodity Index gave up a further 9.5% during the quarter. Precious metals bore the brunt of the market decline. Global economic uncertainty abated somewhat, and the perceived safe haven status of gold and silver was less attractive. The ease with which investors could sell these commodities via exchange-traded funds was a focus of investor attention. Soft commodities, with the exception of lean hogs and soybeans, lost ground, and the energy complex traded down during the quarter as global economic activity appeared to wane.

Period Returns (%) Asset Class Commodities

* Annualized

Q2 1 Year 3 Years** 5 Years** 0 Years** -9.45

-8.01

-0.26

-11.61

2.39

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 ÂŠ.

Fixed Income Second Quarter 2013 Index Returns Bond investors suffered during the quarter, as the US Federal Reserve offered indications that the market interpreted as a nearer than expected cessation of quantitative easing. Yields soared in the US, in particular for maturities beyond 3 years. The bellwether 10-year lost significant ground, moving from a yield of 1.85% on March 31, 2013, to 2.49% at quarter end. The majority of the move came in the second half of the quarter. The absence of meaningful levels of inflation in the US paced negative returns for TIPS investors. Real rates turned positive in longer-dated maturities. Yield-seeking investors came under pressure as credit spreads widened in the difficult environment.

AAA-AA Corporates

A-BBB Corporates

6/30/13 3/31/12 6/30/12

Period Returns (%) Asset Class

* Annualized

1 Year

3 Years** 5 Years**10 Years**

One-Month US Treasury Bills (SBBI)

0.06

0.19

1.59

Bank of America Merrill Lynch Three-Month T-Bills

0.11

0.29

1.72

Bank of America Merrill Lynch One-Year US Treasury Note

0.31

0.41

1.06

2.11

Citigroup World Government Bond 1-5 Years (hedged)

1.10

1.53

2.84

3.14

US Long-Term Government Bonds (SBBI)

-8.86

5.74

7.34

5.97

Barclays Capital Corporate High Yield

9.49

10.74

10.94

8.91

Barclays Capital Municipal Bonds

0.24

4.46

5.33

4.42

Barclays Capital US TIPS Index

-4.78

4.63

4.41

5.20

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 ÂŠ Stocks, Bonds, Bills, and Inflation (SBBI) Yearbookâ&#x201E;˘, Ibbotson Associates, Chicago (annually updated work by Roger G. Ibbotson and Rex A. Sinquefield). Citigroup bond indices copyright 2013 by Citigroup. The Merrill Lynch Indices are used with permission; copyright 2013 Merrill Lynch, Pierce, Fenner & Smith Incorporated; all rights reserved.

Global Diversification Second Quarter 2013 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 (%)

* Annualized

Asset Class

1 Year

100% Stocks

17.21

12.96

2.86

8.14

75/25

12.74

9.85

2.63

6.75

50/50

8.38

6.66

2.10

5.19

25/75

4.16

3.39

1.28

3.47

100% Treasury Bills

0.06

0.19

1.59

Stock/Bond Mix

3 Years** 5 Years** 0 Years** 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 2013, all rights reserved. Treasury bills ÂŠ Stocks, Bonds, Bills, and Inflation Yearbookâ&#x201E;˘, Ibbotson Associates, Chicago (annually updated work by Roger G. Ibbotson and Rex A. Sinquefield).

The Art of Letting Go Second Quarter 2013 In many areas of life, intense activity and constant monitoring of results represents the path to success.

Financial science and experience show that our investment efforts are best directed toward areas where we can make a difference and away from things we can’t control.

In investment, that approach gets turned on its head.

So we can’t control movements in the market. We can’t control news. We have no say over the headlines that threaten to distract us.

The Chinese philosophy of Taoism has a word for it: “wuwei.” It literally means “nondoing.” In other words, the busier we are with our long-term investments and the more we tinker, the less likely we are to get good results. That doesn’t mean, by the way, that we should do nothing whatsoever. But it does mean that the culture of “busyness” and chasing returns promoted by much of the financial services industry and media can work against our interests. Investment is one area where constant activity and a sense of control are not well correlated. Look at the person who is forever monitoring his portfolio, who fitfully watches business TV, or who sits up at night looking for stock tips on social media.

But each of us can control how much risk we take. We can diversify those risks across different assets, companies, sectors, and countries. We do have a say in the fees we pay. We can influence transaction costs. And we can exercise discipline when our emotional impulses threaten to blow us offcourse. These principles are so hard for people to absorb because the perception of investment promoted through financial media is geared around the short term, the recent past, the ephemeral, the narrowly focused and the quick fix. We are told that if we put in more effort on the external factors, that if we pay closer attention to the day-to-day noise, we will get better results.

What’s more, we are programmed to focus on idiosyncratic risks—like glamor stocks— instead of systematic risks, such as the degree to which our portfolios are tilted toward the broad dimensions of risk and return. The consequence is that most individual investors earn poor long-term returns. This is borne out each year in the analysis of investor behavior by research group Dalbar. In 20 years, up to 2012, for instance, Dalbar found the average US mutual fund investor underperformed the S&P 500 by nearly 4 percentage points a year.1 This documented difference between simple index returns and what investors receive is often due to individual behavior—in being insufficiently diversified, in chasing returns, in making bad timing decisions, and in trying to “beat” the market. This type of individual behavior reinforces the ancient Chinese wisdom: “By letting it go, it all gets done. The world is won by those who let it go. But when you try and try, the world is beyond the winning.”

Diversification does not protect against loss in declining markets. It is not possible to invest in an index. 1. “Quantitative Analysis of Investor Behavior,” Dalbar, 2013. Adapted from “The Art of Letting Go” by Jim Parker, Outside the Flags column on Dimensional’s website, May 2013. This information is provided for educational purposes only and should not be considered investment advice or a solicitation to buy or sell securities. Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.

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

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 (3.50%)

Wants 7

College - Steven 4 years starting in 2012

$18,000 Base Inflation Rate plus 2.90% (6.40%)

College - Sean 4 years starting in 2013

$18,000 Base Inflation Rate plus 2.90% (6.40%)

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 07/18/2013

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 07/18/2013

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

$3,088,863

Fund All Goals

$154,099

Fund All Goals

$475,089

Fund All Goals

$112,778 $380,724 $374,291 $309,032 $120,355 $165,044 $1,078,796

PROSHARES ULTRASHORT LEHMAN 20YR TREAS

$26,366

SPDR GOLD TR GOLD SHS ETF

DFA 1 YEAR FIXED INCOME PORTFOLIO

$20,475

$91,694

$25,518

Preston, Stuart and Susan

College - Steven

$367,035

No Name Passed

Account Total

$20,475

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

Preston, Stuart 401(k)

Fund All Goals

$20,475 Custodial

No Name Passed Preston, Stuart

Assign to Goal

$465,566

No Name Passed Preston, Steven

Additions

$37,230 Stuart $154,099 Joint Survivorship $55,254

See Important Disclosure Information section in this Report for explanations of assumptions, limitations, methodologies, and a glossary. Prepared for : Stuart and Susan Preston 07/18/2013

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 3 of 17

Resources Summary Investment Assets Description

Owner

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

Current Value

Additions

Assign to Goal

$83,875 $9,310 $129,597 $15,146 $30,008 $3,848 $29,210 $46,375 $17,762

ISHARES GOLD TRUST COM

$49,880

No Name Passed

$4,824

Preston, Stuart INDIV

Stuart

Account Total

$337,104

$35,000

Fund All Goals

$337,104

Preston, Stuart IRA

Stuart

DFA GLOBAL EQUITY PORTFOLIO INSTITUTIONAL

$96,261

Fund All Goals

$128,740

Fund All Goals

$21,711

Fund All Goals

$95,293

No Name Passed

$968

Preston, Susan 401(k)

Susan

Account Total

$128,740

Preston, Susan IRA

Susan

DFA GLOBAL EQUITY PORTFOLIO INSTITUTIONAL No Name Passed

$21,514 $197

Total Investment Assets :

$4,808,383

See Important Disclosure Information section in this Report for explanations of assumptions, limitations, methodologies, and a glossary. Prepared for : Stuart and Susan Preston 07/18/2013

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 4 of 17

Resources Summary Other Assets Description

Owner

Primary Home

Joint Community Property

Realestate 3

Current Value

Future Value

Assign to Goal

$800,000

$2,631,349

Leave To Estate

Stuart

$200,000

$638,057

Leave To Estate

Realestate 1

Joint Community Property

$200,000

$400,000

Fund All Goals

Realestate 2

Stuart

$400,000

$632,324

Fund All Goals

Insurance

Stuart

$110,644

Not Used In Plan

Universal Life Insurance

Stuart

$112,927

Not Used In Plan

Total of Other Assets :

$1,823,571

Insurance Policies Description

Owner

Insured

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

Stuart

Insurance Policies Summary (not included in Assets) Term Life Stuart Term Life

Beneficiary

Annual Premium

Unspecified - 100%

Stuart

Unspecified - 100%

Stuart

Unspecified - 100%

$15,412

Cash Value

Death Benefit Premium Paid

$110,644

$600,644 Until Insured Dies

$112,927

$363,000

$1,000,000

Group Disability Group

Stuart

$1,806

Disability Income Personal

Stuart

$2,944 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.

See Important Disclosure Information section in this Report for explanations of assumptions, limitations, methodologies, and a glossary. Prepared for : Stuart and Susan Preston 07/18/2013

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 5 of 17

Resources Summary Social Security Description

Owner

Value

File Status

Assign to Goal

Social Security

Stuart

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

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 07/18/2013

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 07/18/2013. 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

$3,554,429

Annuities & Tax-Deferred Products

$282,839

Taxable and/or Tax-Free Accounts

$812,193

Individual Retirement Accounts

$117,972

Total Investment Assets:

$4,767,433

Other Assets Cash Value Life

$223,571

Personal Asset

$800,000

Business and Property

$800,000

Total Other Assets:

$1,823,571

Liabilities Investment Assets Other Assets

$4,767,433 +

Total Assets Total Liabilities Net Worth

$1,823,571 $6,591,004

Personal Real Estate Loan:

$300,000

Total Liabilities:

$300,000

Net Worth:

$6,291,004

$300,000 $6,291,004

See Important Disclosure Information section in this Report for explanations of assumptions, limitations, methodologies, and a glossary. Prepared for : Stuart and Susan Preston 07/18/2013

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 07/18/2013. 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 401(k)

$465,566

$3,088,863

$154,099

Preston, Susan 401(k)

$128,740

Preston, Stuart and Susan Preston, Stuart INDIV Preston, Stuart IRA

$475,089

$337,104

$96,261

Preston, Susan IRA Total Investment Assets:

$128,740

$21,711 $4,141,893

$150,451

$21,711 $475,089

$4,767,433

Other Assets Universal Life Insurance

$112,927

Insurance

$110,644

Primary Home

$800,000

Realestate 1

$200,000

Realestate 2

$400,000

Realestate 3

$200,000

Total Other Assets:

$823,571

$1,000,000

$1,823,571

$300,000

Liabilities Mortgage and LOC Total Liabilities:

Net Worth:

$6,291,004

See Important Disclosure Information section in this Report for explanations of assumptions, limitations, methodologies, and a glossary. Prepared for : Stuart and Susan Preston 07/18/2013

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

64%

49%

100%

33%

32%

100%

Current dollars (in thousands) :

$983

$8,975

$6,851

$10,338

$8,567

Future dollars (in thousands) :

$3,512

$32,051

$24,464

$36,916

$30,594

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%

Total Spending :

Probability of Success: < 40%

Probability of Success: 90%

Probability of Success: 94%

Below Confidence Zone

In Confidence Zone

Above Confidence Zone

$12,798,000

$7,166,000

$6,462,000

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 07/18/2013

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 Earmarks

Retirement Income - Ignore Earmarks

Custom PFP 60

Total Return :

9.96%

Standard Deviation :

11.80%

Total Return Adjustment :

-1.00%

Adjusted Real Return :

5.46%

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 :

5.46%

3.50%

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 1 Include in Plan : When received : Amount of cash received :

2027

$400,000

Yes

Realestate 2 Include in Plan : When received :

2025

$632,324

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 07/18/2013

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

Universal Life Insurance

Stuart

$363,000

$112,927

Unspecified - 100%

Insurance

Stuart

$600,644

$110,644

$15,412 Unspecified - 100%

Term Life

Stuart

$1,000,000

Unspecified - 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 07/18/2013

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 16 of 17

Tax and Inflation Assumptions Base Inflation Rate

Tax Penalty

Inflation rate :

3.50%

Include penalties in Plan? :

Social Security Inflation rate :

3.50%

Tax Free Earnings - Options

Tax Assumption Inflation rate :

3.50%

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 at the LTCG rate?

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 07/18/2013

Company Name : Pathways Financial Partners

Prepared by: Brian Murphy Page 17 of 17

Notes

Â&#x192;

Quarterly Portfolio Review

Quarterly Statement Household:

Preston, Stuart and Susan

Period:

4/1/2013 to 6/30/2013

Activity Summary

Allocation Summary Period

YTD

Since Inception

(4/1/2013 to 6/30/2013)

(1/1/2013 to 6/30/2013)

(6/8/2005 to 6/30/2013)

$3,616,254.52

$3,510,793.70

$0.00

Contributions

$0.00

$1,819,959.55

Distributions

$0.00

($200,112.01)

Transfer In/Out

$0.00

$782,941.24

Miscellaneous Charges

$0.00

($2,022.73)

Bond Accrual

$0.00

($67,585.36)

$37,875.46

$1,147,903.11

$3,548,669.16

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

60.2 % 27.3 % 9.2 % 3.3 %

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

for the period 4/1/2013 to 6/30/2013 (Including bond accrual)

Period

6/30/2013

QTD

YTD

1 Year

3 Year

5 Year

10 Year

Inception (6/8/2005)

Preston, Stuart and Susan

-1.87 %

1.08 %

13.76 %

8.58 %

4.98 %

N/A

5.26 %

Barclays Capital Global Agg Bond

-2.80 %

-4.83 %

-2.18 %

3.55 %

3.68 %

N/A

4.29 %

MSCI EAFE

-0.99 %

4.10 %

18.62 %

10.04 %

-0.63 %

N/A

4.14 %

MSCI Emerging Markets

-7.88 %

-9.57 %

2.87 %

3.38 %

-0.43 %

N/A

9.32 %

2.91 %

13.82 %

20.60 %

18.45 %

7.01 %

N/A

5.95 %

S&P 500

Preston, Stuart and Susan

Quarterly Statement

Page 3 of 14

Account: Susan Preston (Individual Retirement Account), TD Ameritrade Activity Summary

Allocation Summary Period

YTD

Since Inception

(4/1/2013 to 6/30/2013)

(1/1/2013 to 6/30/2013)

(11/28/2008 to 6/30/2013)

$20,271.05

$18,711.40

$0.00

Contributions

$0.00

$542.53

Distributions

$0.00

Transfer In/Out

$0.00

$11,293.78

Miscellaneous Charges

$0.00

($114.03)

Bond Accrual

$0.00

$51.56

$1,611.21

$8,600.33

$20,322.61

Beginning Market Value (Including Bond Accrual)

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

Performance Summary

Risk Category Equity Money Market

97.7 % 2.3 %

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

for the period 4/1/2013 to 6/30/2013 (Including bond accrual)

Period

6/30/2013

QTD

YTD

1 Year

3 Year

5 Year

10 Year

Inception (11/28/2008)

TD Ameritrade

0.25 %

8.61 %

18.84 %

12.69 %

N/A

12.86 %

Portfolio Detail, As Of Date - 6/30/2013 Account Number

Units

Price

Cost

Portfolio Composition

Value *

Susan Preston (IRA) Equity Global Equity DFA I Global Equity

888888888

1,288.97

$15.41

$10,774.00

$19,863.01

97.74 %

Global Equity Total:

$10,774.00

$19,863.01

97.74 %

Equity Total:

$10,774.00

$19,863.01

97.74 %

Preston, Stuart and Susan

Quarterly Statement

Page 4 of 14

Portfolio Detail, As Of Date - 6/30/2013 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

2.26 %

Money Market Total:

$459.60

2.26 %

Money Market Total:

$459.60

2.26 %

Susan Preston (IRA) Total:

$11,233.60

$20,322.61

100.00 %

Account Total:

$11,233.60

$20,322.61

100.00 %

* Including bond accrual

Preston, Stuart and Susan

Quarterly Statement

Page 5 of 14

Account: Stuart Preston (Individual Retirement Account), TD Ameritrade Activity Summary

Allocation Summary Period

YTD

Since Inception

(4/1/2013 to 6/30/2013)

(1/1/2013 to 6/30/2013)

(12/11/2008 to 6/30/2013)

$89,407.08

$82,661.30

$0.00

Contributions

$0.00

$4,361.72

Distributions

$0.00

Transfer In/Out

$0.00

$44,401.00

Miscellaneous Charges

$0.00

($88.23)

Bond Accrual

$0.00

$223.00

$6,968.78

$40,955.59

$89,630.08

Beginning Market Value (Including Bond Accrual)

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

Performance Summary

Risk Category Equity Money Market

95.9 % 4.1 %

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

for the period 4/1/2013 to 6/30/2013 (Including bond accrual)

Period

6/30/2013

QTD

YTD

1 Year

3 Year

5 Year

10 Year

Inception (12/11/2008)

TD Ameritrade

0.25 %

8.43 %

18.41 %

12.66 %

N/A

14.38 %

Portfolio Detail, As Of Date - 6/30/2013 Account Number

Units

Price

Cost

Portfolio Composition

Value *

Stuart Preston (IRA) Equity Global Equity DFA I Global Equity

999999999

5,575.02

$15.41

$46,826.00

$85,911.12

95.85 %

Global Equity Total:

$46,826.00

$85,911.12

95.85 %

Equity Total:

$46,826.00

$85,911.12

95.85 %

Preston, Stuart and Susan

Quarterly Statement

Page 6 of 14

Portfolio Detail, As Of Date - 6/30/2013 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

4.15 %

Money Market Total:

$3,718.96

4.15 %

Money Market Total:

$3,718.96

4.15 %

Stuart Preston (IRA) Total:

$50,544.96

$89,630.08

100.00 %

Account Total:

$50,544.96

$89,630.08

100.00 %

* Including bond accrual

Preston, Stuart and Susan

Quarterly Statement

Page 7 of 14

Account: Stuart and Susan Preston (Joint), TD Ameritrade Activity Summary

Allocation Summary Period

YTD

Since Inception

(4/1/2013 to 6/30/2013)

(1/1/2013 to 6/30/2013)

(12/2/2008 to 6/30/2013)

$551,441.04

$570,055.91

$0.00

Contributions

$0.00

($199,944.93)

Distributions

$0.00

($200,088.01)

Transfer In/Out

$0.00

$549,332.46

Miscellaneous Charges

$0.00

($904.93)

Bond Accrual

$0.00

Market Value Increase/Decrease

($34,282.85)

($52,897.72)

$368,763.60

Ending Market Value (Including Bond Accrual)

$517,158.19

Beginning Market Value (Including Bond Accrual)

Performance Summary

Risk Category Fixed Income Equity Unassigned Money Market

42.7 % 27.7 % 25.1 % 4.5 %

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

for the period 4/1/2013 to 6/30/2013 (Including bond accrual)

Period

6/30/2013

QTD

YTD

1 Year

3 Year

5 Year

10 Year

Inception (12/2/2008)

TD Ameritrade

-6.22 %

-9.28 %

7.44 %

5.79 %

N/A

17.70 %

Portfolio Detail, As Of Date - 6/30/2013 Account Number

Units

Price

Cost

Portfolio Composition

Value *

Stuart and Susan Preston (JNT)

Specialty Proshares Ultra Short 500

987987987

2,000.00

$40.85

$71,442.47

$81,700.00

15.80 %

$71,442.47

$81,700.00

15.80 %

$71,369.59

$47,960.00

9.27 %

Commodity Total:

$71,369.59

$47,960.00

9.27 %

Total:

$142,812.06

$129,660.00

25.07 %

Specialty Total:

Commodity iShares Gold Trust

987987987

4,000.00

$11.99

Preston, Stuart and Susan

Quarterly Statement

Page 8 of 14

Portfolio Detail, As Of Date - 6/30/2013 Account Number

Units

Price

Cost

Portfolio Composition

Value *

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

987987987

9,823.77

$10.97

Global Fixed Inc Total:

$110,639.61

$107,766.71

20.84 %

$110,639.61

$107,766.71

20.84 %

Fixed Income DFA Inflation Protected

987987987

2,465.58

$11.67

$27,453.81

$28,773.32

5.56 %

DFA Short-Term Extended Quality

987987987

2,702.13

$10.78

$29,369.14

$29,128.97

5.63 %

$56,822.95

$57,902.29

11.20 %

$55,331.81

$55,254.27

10.68 %

Short Term Bond Total:

$55,331.81

$55,254.27

10.68 %

Fixed Income Total:

$222,794.37

$220,923.27

42.72 %

$105,048.00

$80,398.31

15.55 %

$105,048.00

$80,398.31

15.55 %

$31,024.00

$42,731.38

8.26 %

$31,024.00

$42,731.38

8.26 %

$13,024.00

$13,685.54

2.65 %

$13,024.00

$13,685.54

2.65 %

$3,024.00

$3,679.99

0.71 %

$3,024.00

$3,679.99

0.71 %

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

$8.17 Commodity Total:

All Cap Equity DFA US Core II

987987987

3,039.22

$14.06

All Cap Equity Total:

Intl Large Blend DFA International Core

987987987

1,269.53

$10.78

Intl Large Blend Total:

Real Estate DFA Real Estate

987987987

133.33

$27.60 Real Estate Total:

Preston, Stuart and Susan

Quarterly Statement

Page 9 of 14

Portfolio Detail, As Of Date - 6/30/2013 Account Number

Units

Price

Cost

Portfolio Composition

Value *

Emerging Mkt DFA Emerging Markets Core

987987987

149.93

$18.32

$3,024.00

$2,746.63

0.53 %

Emerging Mkt Total:

$3,024.00

$2,746.63

0.53 %

Equity Total:

$155,144.00

$143,241.85

27.70 %

$23,333.07

4.51 %

Money Market Total:

$23,333.07

4.51 %

Money Market Total:

$23,333.07

4.51 %

Stuart and Susan Preston (JNT) Total:

$544,083.50

$517,158.19

100.00 %

Account Total:

$544,083.50

$517,158.19

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 Activity Summary

Allocation Summary Period

YTD

Since Inception

(4/1/2013 to 6/30/2013)

(1/1/2013 to 6/30/2013)

(6/8/2005 to 6/30/2013)

$2,955,135.35

$2,839,365.09

$0.00

Contributions

$0.00

$2,015,000.23

Distributions

$0.00

($24.00)

Transfer In/Out

$0.00

$177,914.00

Miscellaneous Charges

$0.00

($915.54)

Bond Accrual

$0.00

($33,577.07)

$82,193.19

$729,583.59

$2,921,558.28

Beginning Market Value (Including Bond Accrual)

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

Performance Summary

Risk Category Equity Fixed Income Unassigned Money Market

64.6 % 25.7 % 6.7 % 3.0 %

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

for the period 4/1/2013 to 6/30/2013 (Including bond accrual)

Period

6/30/2013

QTD

YTD

1 Year

3 Year

5 Year

10 Year

Inception (6/8/2005)

TD Ameritrade

-1.14 %

2.89 %

14.78 %

9.16 %

3.94 %

N/A

4.61 %

Portfolio Detail, As Of Date - 6/30/2013 Account Number

Units

Price

Cost

Portfolio Composition

Value *

Stuart Preston PSP 5/1/2005 (QUAL)

Specialty Proshares Ultra Short 500

654654654

2,300.00

$40.85

$81,567.76

$93,955.00

3.22 %

Proshares Ultrashort 20+ Yr Treasury

654654654

1,400.00

$72.43

$52,783.84

$101,402.00

3.47 %

Specialty Total:

$134,351.60

$195,357.00

6.69 %

Total:

$134,351.60

$195,357.00

6.69 %

Preston, Stuart and Susan

Quarterly Statement

Page 11 of 14

Portfolio Detail, As Of Date - 6/30/2013 Account Number

Units

Price

Cost

Portfolio Composition

Value *

Equity All Cap Equity DFA US Core II

654654654

76,095.99

$14.06

All Cap Equity Total:

$765,012.03

$1,069,909.66

36.62 %

$765,012.03

$1,069,909.66

36.62 %

$472,945.63

$456,334.41

15.62 %

$472,945.63

$456,334.41

15.62 %

$106,906.65

$131,432.33

4.50 %

$106,906.65

$131,432.33

4.50 %

Intl Large Blend DFA International Core

654654654

42,331.58

$10.78

Intl Large Blend Total:

Real Estate DFA Real Estate

654654654

4,762.04

$27.60 Real Estate Total:

Commodity SPDR Gold Trust

654654654

300.00

$119.11

$36,590.97

$35,733.00

1.22 %

DFA Commodity Strategy

654654654

10,758.00

$8.17

$105,048.00

$87,892.88

3.01 %

$141,638.97

$123,625.88

4.23 %

$97,667.41

$106,867.63

3.66 %

Emerging Mkt Total:

$97,667.41

$106,867.63

3.66 %

Equity Total:

$1,584,170.69

$1,888,169.91

64.63 %

Commodity Total:

Emerging Mkt DFA Emerging Markets Core

654654654

5,833.39

$18.32

Fixed Income Global Fixed Inc DFA Investment Grade Portfolio

654654654

4,708.10

$10.46

$50,024.00

$49,246.71

1.69 %

DFA 5-Year Global Fixed Income

654654654

31,121.35

$10.97

$340,233.49

$341,401.19

11.69 %

$390,257.49

$390,647.90

13.37 %

$85,690.19

$91,175.96

3.12 %

Global Fixed Inc Total:

Fixed Income DFA Inflation Protected

654654654

7,812.85

$11.67

Preston, Stuart and Susan

Quarterly Statement

Page 12 of 14

Portfolio Detail, As Of Date - 6/30/2013 Account Number DFA Short-Term Extended Quality

654654654

Units

Price

11,843.04

Cost $10.78

Portfolio Composition

Value *

$128,140.03

$127,667.95

4.37 %

$213,830.22

$218,843.91

7.49 %

$138,682.07

$140,035.17

4.79 %

Short Term Bond Total:

$138,682.07

$140,035.17

4.79 %

Fixed Income Total:

$742,769.78

$749,526.98

25.66 %

$88,504.39

3.03 %

Money Market Total:

$88,504.39

3.03 %

Money Market Total:

$88,504.39

3.03 %

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

$2,549,796.46

$2,921,558.28

100.00 %

Account Total:

$2,549,796.46

$2,921,558.28

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

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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

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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.

7/5/2013 5:14:19 PM

Preston, Stuart and Susan

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 June 30, 2013. Past performance is no guarantee of future results, and there is always the risk that an investor may lose money.