VoRNADO Realty TrusT 2017 Manager retreat FINANCIAL PLANNING Presentation

Goals and Objectives An effective financial plan is built around clearly defined Goals and Objectives People are 42% more likely to achieve goals by writing them down on a regular basis Goals should be S.M.A.R.T. Specific Measurable Actionable Results Oriented Time Specific

Estate planning “Must Have” Documents Last Will & Testament Durable Power of Attorney Healthcare Directives “Might Need” Documents Irrevocable Life Insurance Trust Revocable Living Trust Other Considerations Asset Titling Designated Beneficiaries

Life Insurance Why you need it? Family Protection Income Replacement How much is needed? Future college costs: $500,000 Mortgage payoff: $500,000 Income replacement: $2,000,000 Special Events (wedding): $100,000 $3,100,000 Structure is critical Term Permanent

Disability insurance Your chances of becoming disabled for 90 days or longer prior to age 65 are 25% The ability to earn an income is one of your greatest assets Short–term vs. Long–term disability How much disability should you have? Pre-tax vs. Post-tax considerations

Long term care insurance Why you may need Long Term Care Insurance? LTC pays for services required if you are unable to care for yourself due to: Injury Chronic Illness Disability When to start thinking about it? Myths about LTC… I’m too young My family will take care of me I will save enough to cover costs Traditional vs. Non-Traditional policies

Property & casualty insurance Main Policies: Auto Insurance Homeowner’s Insurance Umbrella Liability Insurance How often should your policies be reviewed?

Education planning Your goals for funding higher education Fully fund? Utilize student loans? Graduate school? Start Early, Start Early, Start Early! Varying costs of school Public Private 529 Education Savings Account Automatic monthly contributions

Cash flow/retirement planning Start saving early… Much easier to make a change early on vs. waiting Risks of outliving your money Get a handle on your expenses Helpful tools include Quicken or Mint Automate your savings 401(k) / IRA / HSA Plans Taxable Savings Accounts The role of medical costs in retirement

Charitable planning Different methods of charitable giving: Cash donations Stock/Mutual Fund donations Donor Advised Funds Tax Advantages

Portfolio management Have a plan in place, and test it often! Stick to your plan Rebalance your portfolio Scheduled rebalancing After big changes Know that downturns can happen Aggregation software – consolidated view of all accounts Keep expenses low

Today’s Speaker Donald J. Hertling, CFP®, MST Phone: (973) 287 – 5433 Email: dhertling@hellerwealth.com As President, Chief Compliance Officer and Head of Financial Planning at Heller Wealth Advisors, Don has more than 21 years of experience in wealth management. In his role as President, Don is a driving force for innovation, process and growth. In his other capacities, Don develops, implements and monitors our clients’ financial planning strategies and heads the firm’s compliance program. Don takes great pride in our team’s ability to provide an exceptional experience to each and every client. Previously, Don spent nine years at a regional wealth advisory firm where he led the financial planning department. Don earned his Master’s in Taxation from Fairleigh Dickenson University and his bachelor’s degree in Business Administration from Rider University. He also holds the CERTIFIED FINANCIAL PLANNER (CFP®) designation. Don is a past Board Member of the New Jersey Institute of Certified Financial Planners and the New Jersey Financial Planning Association. Don resides in Morganville, New Jersey with his wife Tara and two children, Ryan and Reilly.