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Welcome to the Institute of Financial Wellness Retirement Roadmap Experience!
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The ROADMAP Report
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Disclosure
This presentation and the information contained herein is Confidential and shall be kept confidential. Delivery of this presentation to anyone other than the recipient or an investment professional referred to recipient by IFW is unauthorized and any reproduction of this presentation, in whole or in part, or any attempt to divulge its contents, in whole or in part, without the prior written consent of the Issuer is prohibited. This presentation has been prepared solely for the purpose of providing a preliminary introduction to the opportunity described in the presentation to assist recipients in deciding whether they wish to proceed with a further review of this opportunity. Information contained herein has been obtained from Morningstar, Inc. and other sources which are deemed reliable, but no representations or warranties are made by IFW or any of its affiliates, employees or representatives as to the accuracy or completeness of such information or any other information (whether written or oral) made available in connection with the presentation. IFW has not independently verified any of the information set forth in this presentation. Only those particular representations which may be made by investment professionals and issuers in a definitive agreement when, as and if it is executed, and subject to such limitations and restrictions as may be specified in the definitive agreement, will have any legal effect, and IFW is not responsible for such representations. The presentation uses the information provided by the recipient regarding assets, liabilities, goals, accounts, and other
variables. This information is a key input for the calculators and plans used by the presentation and should be derived from official account statements provided to the recipient by their account custodians. This information should be reviewed periodically and updated whenever there is a change in information or circumstances. This presentation uses historical returns as a simplifying assumption used to model investment returns. It uses returns from the past to model returns going forward. However, in the real investment world, returns vary widely and therefore the past returns are not necessarily indicative of future returns. Therefore, one should not think that the historical returns used in this plan will necessarily be accurate going forward. The performance and analysis figures contained in this presentation are hypothetical and are for informational purposes only. IFW does not sell securities, and this presentation does not constitute a solicitation or an offer to sell any securities. This presentation does not constitute an offer or solicitation to sell or purchase any securities or insurance products. The information contained in this presentation does not purport to contain all of the information that a prospective purchaser
may desire. In all cases, interested parties should conduct their own investigation and consult with their referral investment professional to analyze the information contained herein. The information contained in this presentation is not to be used for any other purpose.
IFW Presentation Methodology
The presentation offers a financial planning tool that utilizes Monte Carlo Analysis. The Monte Carlo Analysis runs up to 1,000 simulations using user-defined inputs and assumptions, as well as randomized portfolio returns, to determine the possible probability of success of a financial plan. Portfolio standard deviation, annual average returns, and asset class correlations are based upon historical monthly index returns of each asset class proxy index. With the simulations produced by the Monte Carlo Analysis, there is a range of possible results that depend on the variations of the rate of return. Each simulation randomizes the portfolio's return assumptions based on the portfolio's assumed standard deviation, along a normal or lognormal distribution curve. A successful simulation is when all projected cash needs are satisfied and the ending portfolio of a simulated year is positive. Thus, a success probability score of 90% means that 900 of the 1000 simulations were successful. Additionally, the success or failure of meeting a plan's goals does not factor in by how much or how little the goal was achieved or failed. Failing to meet the goal by a margin of 5 cents is the same as failing to meet the goal by a margin of 5 million dollars. Income and capital gains taxes are simulated in the Monte Carlo analysis using the user-defined income and capital gains tax rates, over user-defined time periods. Projected income taxes are assessed on income streams in the plan, and on distributions from tax-deferred accounts. Projected capital gains taxes are assessed on distributions from taxable accounts. in Stream cannot guarantee the inclusion of, or accuracy of the income or capital gains tax inputs and rates used in any plan. Sales loads, expense ratios, management fees and other non-recurring fees associated with certain investment products are not reflected in the analysis. The performance data does not reflect the deduction of the sales load or fees. If such sales load or fees were reflected, the quoted performance would be reduced. The Goals-Based financial plan is a financial planning method whereby financial goals are entered into the Monte Carlo Analysis. Certain assumptions may be included in the plan, and the Monte Carlo Analysis is used to determine the possible probability of successfully achieving the plan's goals. Based on the unique distribution methodology applied to the IFW Retirement Roadmap the Fixed Index Annuity will be distributed first whenever the investment portfolio experiences a negative return for the year. Once the Fixed Index Annuity is depleted the life insurance cash values will be used to accommodate any income needs for cash flow purposes when the investment portfolio experiences a negative return for the year.
Analysis
It is assumed that the portfolio is rebalanced annually to the allocation model selected for the given time period, so as not to drift excessively from the allocation. Many of the variables used in the calculation are set by the licensed user. The variables used (such as cash flow assumptions, time periods, inflation rates, tax rates, and others) may greatly impact the results of the Analysis. Results presented in the Analysis have not been examined, endorsed, or validated, in any way, by IFW, and IFW cannot be held liable for any Analysis or any other report that is deemed misleading or misrepresentative, and that is generated by a user through IFW's software application(s).
Cash Flow Reports
Cash Inflow Report - The cash inflow report illustrates cash inflows such as incomes, that are or will be available to satisfy spending needs (i.e., goals). Cash Outflow Report - The cash outflow report illustrates the goals, or spending needs, that must be satisfied in order for a simulation to be deemed as successful. Outflows include goals and taxes.
Accounts Summary Report - The accounts summary illustrates the account tax categories and aggregates the value of the accounts, in each category, that is used within the plan. In addition to the balances per tax category, the presentation also indicates the gross distribution amount from each tax category, through the timeline of the financial plan. This table helps to explain when money is being used to satisfy the goals of the plan, and from which tax bucket the money is being used. Summary Cash Flow Report - The enhanced cash flow report summarizes the above three reports and also displays the simulated portfolio returns for each year, and the cumulative wealth ending portfolio value.
This presentation and the information contained herein is Confidential and shall be kept confidential. Delivery of this presentation to anyone other than the recipient or an investment professional referred to recipient by IFW is unauthorized and any reproduction of this presentation, in whole or in part, or any attempt to divulge its contents, in whole or in part, without the prior written consent of the Issuer is prohibited. This presentation has been prepared solely for the purpose of providing a preliminary introduction to the opportunity described in the presentation to assist recipients in deciding whether they wish to proceed with a further review of this opportunity. Information contained herein has been obtained from Morningstar, Inc. and other sources which are deemed reliable, but no representations or warranties are made by IFW or any of its affiliates, employees or representatives as to the accuracy or completeness of such information or any other information (whether written or oral) made available in connection with the presentation. IFW has not independently verified any of the information set forth in this presentation. Only those particular representations which may be made by investment professionals and issuers in a definitive agreement when, as and if it is executed, and subject to such limitations and restrictions as may be specified in the definitive agreement, will have any legal effect, and IFW is not responsible for such representations. The presentation uses the information provided by the recipient regarding assets, liabilities, goals, accounts, and other
variables. This information is a key input for the calculators and plans used by the presentation and should be derived from official account statements provided to the recipient by their account custodians. This information should be reviewed periodically and updated whenever there is a change in information or circumstances. This presentation uses historical returns as a simplifying assumption used to model investment returns. It uses returns from the past to model returns going forward. However, in the real investment world, returns vary widely and therefore the past returns are not necessarily indicative of future returns. Therefore, one should not think that the historical returns used in this plan will necessarily be accurate going forward. The performance and analysis figures contained in this presentation are hypothetical and are for informational purposes only. IFW does not sell securities, and this presentation does not constitute a solicitation or an offer to sell any securities. This presentation does not constitute an offer or solicitation to sell or purchase any securities or insurance products. The information contained in this presentation does not purport to contain all of the information that a prospective purchaser
may desire. In all cases, interested parties should conduct their own investigation and consult with their referral investment professional to analyze the information contained herein. The information contained in this presentation is not to be used for any other purpose.
IFW Presentation Methodology
The presentation offers a financial planning tool that utilizes Monte Carlo Analysis. The Monte Carlo Analysis runs up to 1,000 simulations using user-defined inputs and assumptions, as well as randomized portfolio returns, to determine the possible probability of success of a financial plan. Portfolio standard deviation, annual average returns, and asset class correlations are based upon historical monthly index returns of each asset class proxy index. With the simulations produced by the Monte Carlo Analysis, there is a range of possible results that depend on the variations of the rate of return. Each simulation randomizes the portfolio's return assumptions based on the portfolio's assumed standard deviation, along a normal or lognormal distribution curve. A successful simulation is when all projected cash needs are satisfied and the ending portfolio of a simulated year is positive. Thus, a success probability score of 90% means that 900 of the 1000 simulations were successful. Additionally, the success or failure of meeting a plan's goals does not factor in by how much or how little the goal was achieved or failed. Failing to meet the goal by a margin of 5 cents is the same as failing to meet the goal by a margin of 5 million dollars. Income and capital gains taxes are simulated in the Monte Carlo analysis using the user-defined income and capital gains tax rates, over user-defined time periods. Projected income taxes are assessed on income streams in the plan, and on distributions from tax-deferred accounts. Projected capital gains taxes are assessed on distributions from taxable accounts. in Stream cannot guarantee the inclusion of, or accuracy of the income or capital gains tax inputs and rates used in any plan. Sales loads, expense ratios, management fees and other non-recurring fees associated with certain investment products are not reflected in the analysis. The performance data does not reflect the deduction of the sales load or fees. If such sales load or fees were reflected, the quoted performance would be reduced. The Goals-Based financial plan is a financial planning method whereby financial goals are entered into the Monte Carlo Analysis. Certain assumptions may be included in the plan, and the Monte Carlo Analysis is used to determine the possible probability of successfully achieving the plan's goals. Based on the unique distribution methodology applied to the IFW Retirement Roadmap the Fixed Index Annuity will be distributed first whenever the investment portfolio experiences a negative return for the year. Once the Fixed Index Annuity is depleted the life insurance cash values will be used to accommodate any income needs for cash flow purposes when the investment portfolio experiences a negative return for the year.
Analysis
It is assumed that the portfolio is rebalanced annually to the allocation model selected for the given time period, so as not to drift excessively from the allocation. Many of the variables used in the calculation are set by the licensed user. The variables used (such as cash flow assumptions, time periods, inflation rates, tax rates, and others) may greatly impact the results of the Analysis. Results presented in the Analysis have not been examined, endorsed, or validated, in any way, by IFW, and IFW cannot be held liable for any Analysis or any other report that is deemed misleading or misrepresentative, and that is generated by a user through IFW's software application(s).
Cash Flow Reports
Cash Inflow Report - The cash inflow report illustrates cash inflows such as incomes, that are or will be available to satisfy spending needs (i.e., goals). Cash Outflow Report - The cash outflow report illustrates the goals, or spending needs, that must be satisfied in order for a simulation to be deemed as successful. Outflows include goals and taxes.
Accounts Summary Report - The accounts summary illustrates the account tax categories and aggregates the value of the accounts, in each category, that is used within the plan. In addition to the balances per tax category, the presentation also indicates the gross distribution amount from each tax category, through the timeline of the financial plan. This table helps to explain when money is being used to satisfy the goals of the plan, and from which tax bucket the money is being used. Summary Cash Flow Report - The enhanced cash flow report summarizes the above three reports and also displays the simulated portfolio returns for each year, and the cumulative wealth ending portfolio value.
