Looking Ahead to 2016 Advisor Name of Firm Presented by: The following must be included in this presentation: Name, approved title, registered branch address, phone number, appropriate byline if holding out a DBA and "Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC" Welcome to our Client Educational event, Looking Ahead to 2016!

Tonight’s Agenda Review of 2015 Looking ahead to 2016 Strategies to consider Questions & answers Tonight’s agenda is very simple: First, we will begin with a review of 2015. Next, we will discuss looking ahead to 2016. We will then review some of the strategies you can consider, and We will finish with a Questions & Answer session. Reminder: All examples provided are hypothetical and meant for illustrative purposes only. This is not specific or individual financial advice. Your individual situations will vary so please consult with us personally if you want to address your specific situation. All examples provided are hypothetical and meant for illustrative purposes only. State income tax laws can be different from Federal income tax laws depending on your state. Be sure to take this into account before making any decisions. Individual situations will vary so please consult a tax advisor to address your specific situation.

Five Key Areas of Financial Planning Protection Retirement Plan Investments Tax Planning Estate Planning Before we begin, it is always important to review that there are five key areas of financial planning: Protection, Retirement Plan, Investments, Tax Planning, and Estate Planning. As a comprehensive financial planning firm, we try to always consider the impact of any recommendation we make on not just one, but all of these areas for our clients.

2015 Was a Rough Year for Equities Looking back at the Dow’s performance, 2015 was a rough year for equity investors. Although equities started the year rather tame, after August investors experienced some heavy volatility and by year end the Dow Jones Industrial Average finished down 2.2%.

2015 Market Returns % Change DJIA - 2.2% S&P 500 -0.7% NYSE Composite Index -6.42% Here are some of the more well known stock indexes and as you can see they were all negative for 2015. The Dow Jones Industrial Average which consists of a weighted measure of 30 stocks was down 2.2% The S&P 500 Index is weighted and consists of the 500 largest stocks. It finished 2016 down 0.7%. The NYSE Composite Index, which is designed to measure the performance of all common stocks listed on the NYSE, was down 6.42% for the year and that might better represent the return that many investors saw in 2015. Source: Yahoo! Finance

FANG Stocks Ruled in 2015 ! The “Fab Four” stocks nicknamed FANG (Facebook (price), Amazon (price), Netflix (price) and Google (price, now known as Alphabet) were up over 60% on a cap weighted basis. Excluding those four stocks, the S&P 500 was down -4.8% in 2015. For 2015 a small group known as the “Fab Four” stocks nicknamed FANG (Facebook, Amazon, Netflix and Google (now known as Alphabet)) ruled. This FANG group was up over 60% on a cap weighted basis. Excluding those four stocks, the S&P 500 was down -4.8% in 2015. Please include the previous day's closing price for FB, AMZN, NFLX, and GOOGL and the date of this price. It must be disclosed if Raymond James Research closely follows and/or if Raymond James makes a market in FB, AMZN, NFLX, or GOOGL. Source: Schwab.com 1/4/2016

FANG stocks have high P/E’s AAPL 13.0 GOOGL 36.6 FB 107.32 NFLX 325.9 AMZN 968.8 S&P 500 22.0 The FANG group of stocks carry very high P/E’s. A price-to-earnings ratio (P/E) is one of the most basic fundamental metrics for gauging a stock’s value. Here’s how the current P/E’s for FANG stocks compare to Apple and the overall S&P 500 in late 2015. The S&P 500’s overall P/E was 22.0. Apple had a P/E of 13 and Google’s was 36.6. Facebook, Netflix and Amazon had P/E’s of over 100, which is much higher than the typical range for most stocks. Source: Behzinga, 11/23/15

FANG Stocks These are NOT the typical stocks that Conservative Investors hold! The FANG stocks are NOT the typical stocks that conservative investors hold! In fact, as this article on January 19th showed Amazon was down over 12% after the first two weeks of 2016. The bottom line is high P/E stocks could generate big returns or BIG losses for investors. They are considered risky and are not typically owned by CONSERVATIVE or MODERATE investors! Source: USA Today 1/19/2016

How Did Warren Buffet perform in 2015? How did legendary investor Warren Buffet perform in 2015? Many investors suffered losses and had a rough year in 2015. Legendary investor Warren Buffet, through his holding company Berkshire Hathaway, underperformed the S&P 500 in 2015. His flagship Berkshire Hathaway A shares were down 11.47% compared with a 2.2% decrease in the Dow Jones Industrial average. The media noticed and the Financial Times ran a headline on Wednesday, December 30th that read “Buffett’s Worst Year Since 2009.″ (Source: Forbes 12/31/2015)   2015 was a rough year for conservative and value oriented investors like Mr. Buffet. Investorplace.com reported, Berkshire Hathaway may have struggled in 2015, but that doesn't mean the Oracle of Omaha has lost his touch. They reminded investors that although it shouldn’t need repeating, Warren Buffett is a long-term investor. They accurately report that the review of his one year performance is more noise than signal because the data sample is far too short. They challenge investors to review his 5 year or longer term results. Source: Bigcharts.com

Still listed as one of the wealthiest men in the world, this was not Buffet’s first rough year. 2008 was also a bad year for Buffet and his holding company, Berkshire Hathaway. Buffett seeks out businesses that exhibit favorable long-term prospects. His timeframe is longer than one year, so like most good investors no one year dictates his success or lack thereof. As an investor, Buffett says, “If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes.” Buffet feels that the stock market will swing up and down, but in good times and bad, he stays focused on his goals. This is a great lesson for all investors.

He also says, “ Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.” Again, this is a great lesson for all investors.

2016 Outlook In the first two weeks of 2016, Equity markets experienced their worst ever start. So what is the outlook for 2016. Sadly volatility has remained with the equity markets. In fact, for the first two weeks of 2016, equity markets experienced their worst ever start.

What is contributing to this ?

Economists measured final growth of 6. 9% in 2015, and expect around 6 Economists measured final growth of 6.9% in 2015, and expect around 6.5% for 2016. China is a far cry from the potent days when it posted GDP growth of 10% or more. One contributor is the slowing down of growth in China. Economists measured final growth of 6.9% in 2015, and expect around 6.5% for 2016. China is still growing but at a slower pace than analysts thought. The 6.5% is a far cry from the potent days when China posted GDP growth of 10% or more. Source: WSJ, Jan. 19, 2016

Fed Chairperson Janet Yellen raised rate for the first time in over 7 years to 0.25 -0.50% In December of 2015, Janet Yellen and the Fed has increased rates for the first time in seven years to 0.25 -0.50%. Almost every financial analyst and publication has a prediction for small but additional interest rate movements in 2016. It is anyone’s guess when the Fed will actually raise interest rates and by how much. As for rates savers are paid on bank deposits, they are not getting off the floor just yet. Barron’s writes that “investors should not look for money market yields to rise enough to be discernable without a magnifying glass.”

Where are interest rates headed ? As this Wall Street Journal Poll shows, in December, 58% of 65 economists surveyed felt they would be back around 0% within 5 years. Source: WSJ, Dec. 13, 2015

How have interest rates affected equities ? How have past interest rate changes affected equities? We need to watch the Fed, but as this chart from shows 12 months after either rate hikes or rate cuts the S&P 500 grew from 1946 thru 2008.

Oil prices are confusing experts ! Oil prices are contributing to uncertainty and are another area of concern for investors. In the late fall of 2015, as this chart shows most analysts expected oil prices to start heading back up, but they were wrong. Since then they have retreated to new multi-year lows of under $30 per barrel in January.  While this rewarded consumers at the pump, there were more than 200,000 oil related layoffs in 2015. Energy and oil related stocks suffered big losses in 2015 and analysts are now mixed on whether they will rise or continue to drop in 2016. The fluctuation of oil prices is another subject that we need to monitor this year. 

Other International concerns include: European Economy Russia For many market strategists, the concern in 2016 for equities also includes carefully monitoring the European economy. Russia also presents concerns for investors. According to many analysts, Russia, a country that relies heavily on oil is in bad shape, due to lower oil prices. We already discussed China, but European and Russian issues could generate International concerns

U.S. Political Landscape 2016 is a presidential election year 2016 is a presidential election year and from a political side that is always an interesting and active year in Washington D.C. and nationwide.

What can investors expect in 2016 ? So again, what can investors expect in 2016?

2016 Outlook Summary Investors could expect more VOLATILITY. 1 2 3 4 5 Many strategists feel U.S. markets will experience a bumpy ride, but will rise. 2 Interest rate uncertainty could bring more volatility. 3 Growth in China is less than previously expected. 4 Oil prices will continue to create market disruptions. 5 International concerns need to be monitored. 6 This is a Presidential election year. 7 Investors could expect more VOLATILITY. In summary, here are 7 themes that investors should watch in 2016. Many strategists feel U.S. markets will experience a bumpy ride, but will rise. As we stated earlier, Interest rate uncertainty could bring more volatility. Again, growth in China is less than previously expected. Oil prices will continue to create market disruptions. International concerns need to be monitored. This is a Presidential election year. And finally……Investors could expect more VOLATILITY

Tax law changes that affect investors are another area we monitor Another area we monitor is tax law changes that affect investors.

All tax law changes require planning As always all tax law changes will require planning and that’s why we carefully watch any new proposals.

What Should YOU do in 2016? So – what should you do in 2016?

Review ALL Your Sources Of Income Retirement Interest Active This is the ideal time for you to review all your sources of income. Most of us have two types of income. Income we can control or change and income we cannot control. For example, controllable income can be interest or dividend income. While an example of income we cannot control would be a pension or required distribution. Now is a great time to review all of our sources of income. Passive Other Dividend

Know Your Options Beneficiary Planning Gifting Trusts We also should know our options. Gifting….retirement saving….transferring wealth or doing nothing different! We should each review what the various options are that are available to us. Tax Deferral Retirement Planning

Continue to explore ROTH IRA Conversion Opportunities This might be a good time to review the pros, cons and consequences of a partial or full ROTH IRA conversion. If converting a Traditional IRA to a Roth IRA, you will owe ordinary income taxes on any previously deducted Traditional IRA contributions and on all earnings. A conversion may place you in a higher tax bracket than you are in now. Because Roth IRA conversions may not be appropriate for all investors and individual situations vary we suggest that you discuss tax issues with a qualified tax advisor. Another strategy we continue to explore for clients is a potential ROTH IRA conversion opportunity. This might be a good time to review the pros, cons and consequences of a partial or full ROTH IRA conversion.

Consider Your Alternatives Tax Loss or Gains Harvesting Roth IRAs Tax Exempt We should consider our alternatives. Our goal is simple. Let’s prepare for any upcoming changes. Trust Inherited IRAs Tax Advantaged

Rebalance your portfolio. What Can You Do? Rebalance your portfolio. Let’s focus on what you can do. First, we can discuss, if appropriate, how to rebalance your portfolio. Rebalancing a portfolio cannot assure a profit or protect against a loss in any given market environment.

Re-evaluate your investment goals and objectives. What Can You Do? Re-evaluate your investment goals and objectives. It’s always helpful to sit down and re-evaluate your personal investment goals and objectives.

Confirm your investment timelines. What Can You Do? Confirm your investment timelines. Short Term Long Term We can also confirm your investment timelines. Are you looking for short term or long term returns? Do you have any NEW major purchases, life-style changes, and/or liquidity events happening or planned?

Re-evaluate your risk tolerance. What Can You Do? Re-evaluate your risk tolerance. Conservative Moderate Aggressive We can re-evaluate your risk tolerance. Has it changed? Is your CURRENT risk tolerance conservative, moderate or aggressive? We will help you with all of these!

What Else Can You Do? Analyze your sources of income and true cash flow requirements Review your overall tax planning strategies Review your emergency fund needs Fund your retirement accounts early in the year What else can you can do? You can: Analyze your sources of income and true cash flow requirements. Review your overall tax planning strategies. Review your emergency funds needs. And, you can fund your retirement accounts early in the year. As always, we will help you with all of these!

Investors need to prepare for any environment! We are in a rapidly changing environment and investors need to prepare!

The Stock Market vs. Your Portfolio An index, whether S&P 500 or the Dow Jones, isn’t a measure of your portfolio It’s what your portfolio is doing, not what “the market” is doing, that is important Your portfolio doesn’t always move in lock step with any single market or index Indexes cannot be invested in directly, are unmanaged and do not incur management fees, costs and expenses. No one can accurately tell us exactly what the equity markets will do in 2016, but let’s take a moment to review returns of the stock market versus your portfolio. Three things you should remember are: An index, whether the S&P 500 or the Dow Jones, isn’t a measure of your portfolio; It’s what your portfolio is doing, not what “the market” is doing, that is important; and Your portfolio doesn’t always move in lock step with any single market or index

We review changes for our clients regularly! One of our main focuses as a financial advisory practice is to review these changes for our clients on an ongoing basis.

What can you expect from us? Constant communication More frequent discussions We are constantly reviewing economic, tax, estate and investment issues for our clients So – what can you expect from us? You can expect constant communication, more frequent discussions, and you can expect that we are constantly reviewing economic, tax, estate and investment issues for our clients.

Our Role as Your Advisor We will maintain a non-emotional objective We will avoid knee-jerk reactions We will assist you in making decisions that are always in your best interest! - and WE WILL BE HERE FOR YOU!!! As you know, our role as your advisor is to: Maintain a non-emotional objective; Avoid knee-jerk reactions; Assist you in making decisions that are always in your best interest; and We will be here for you!!! 39 Slide 39

Our Latest Quarterly Economic Report Insert Your Newsletter Image Here Available Today Our Latest Quarterly Economic Report Insert Your Newsletter Image Here We have certain information that is available today. We have a copy of our latest quarterly economic update that reviews some of the information we discussed tonight and you should have received in the mail. For those who did not get these we would be glad to send them.

Available Soon Coming Soon! Our Upcoming Articles and Tax Reports We have certain information that will be available soon. If you are not on our mailing list, please sign up so that we can make sure you get your copy. Also, we encourage clients to add (2-5) more friends to our list so that they can benefit from this information.

Sign your friends up for our newsletter service. Help Us Help Others ! Sign your friends up for our newsletter service. We would like to help others in the year 2016! In fact, we would be honored if you could share some names of friends to add to our mailing lists so that they can benefit from this information.

We Appreciate the Opportunity to Assist With YOUR Financial Needs ! Thank You! We Appreciate the Opportunity to Assist With YOUR Financial Needs ! Thank you for coming to this workshop. We appreciate the opportunity to assist you with your financial needs. Can I see by a raise of hands anyone who is not currently a client? We would like to take this time to invite any of the guests here today to a complimentary session to help you take this important information with your specific financial needs and goals. Please see one of our team members (introduce the team members) at the exit in order to schedule your complimentary session. As you know, we are also making ourselves available to help some of your friends and colleagues. One theme that you have probably heard from our office already is our company’s “Growth Initiative.” It is our goal to offer our services to several other clients just like you. It is primarily through an introduction from our best clients that we have best been able to meet high quality people who can benefit from our services. We would be honored if you shared with us the names of one or two other friends, relatives or colleagues so we can invite them in for a complimentary consultation. Again, thank you for attending tonight. At this point, we can take questions.

Any Questions? Any questions?

Contents provided by APFA,Inc. Copyright 2016 APFA, Inc. The views expressed are not necessarily the opinion of Insert Broker-dealer name. Information is based on sources believed to be reliable, however, their accuracy or completeness cannot be guaranteed. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future results. This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. "The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. The Dow Jones Industrial Average (DJIA), commonly known as “The Dow”, is an index representing 30 stock of companies maintained and reviewed by the editors of the Wall Street Journal. The NYSE Composite index is an unmanaged index of all stocks traded on the New York Stock Exchange. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor’s results will vary." Contents provided by APFA,Inc. Copyright 2016 APFA, Inc.