The GREATEST RISKS to our financial future’s are:  Allowing financial institutions to dictate or control our financial futures!  Opinions vs Facts - Lack of Knowledge!  Procrastination - No Action - - Delayed Reaction !  Failure or fear of taking an active roll in your own financial well being

The Four Fundamentals (Rule’s) of Every Financial Institution Rule 1 - They want us to give them our money (as much as possible) Rule 2 - They want us to give them our money on an on-going basis Rule 3 - They want us to give them our money on an on-going basis and hold it for as long as possible Rule 4 -They want us to give them our money on an on-going basis and hold it for as long as possible and give back as little as possible Consider how do the four rules of financial institutions affect your money decisions?

Our Potential Wealth Erosion Factors 1.Lack of knowledge, timing, false information (beliefs) 2.Failed or wrong financial products 3.Inflation, taxes, market declines, fees & surcharges 4.Home owner erosions… 5.Other Financial Institution Erosions. a)Lapsed life Insurance policies b)Survivor benefit premiums and benefits lost c)Uncovered medical and Long term care expenses d)Uncovered or lost income due to partial or total disabilities e)Hidden fees, charges, commissions not disclosed 6.Lost Opportunity Cost L.O.C

Lost Opportunity Costs What is a Lost Opportunity Cost? Has anyone lost money in their TSP or Retirement Plan? If we lost $30,000 in our retirement plan, what did we really lose? 30,000 X 30 4%= $97, 302

3TSP examples from 2000 to 2009 If you had $200,000 equally distributed within the C, S, & I funds from the year 2,000 thru 2009 your Balance would be $213,859 n 1/1/2010. Which Scenario would you like best ? If you had Utilized the Lifecycle fund L2030 strategy with a $200,000 balance for the same time frame your balance would be $243,620  If you had $200,000 earning a flat 5% rate for the same 10 year period (F & G) the total balance would be $325,779.50

What Happens When a Life Insurance Policy Lapses? 1. You lose all the premiums you paid into that policy! 2. You lose all the earnings you could have had on those premiums! 3.Your family loses the death benefit! That is expensive! So given a choice, do you want a policy that lapses? Or, one that is in force on your life for the rest of your life?

FERS/ CSRS SBP Plan Premiums: 1.Increasing 2.Rate of Return – NO 3.Liquidity, use and control L.U.C. – NO Benefits: 1.Max Benefit – 50%/55% of Full Pension 2.Payout is 100% Taxable 3.Benefit is Paid Monthly 4.Benefit has no Contingent Beneficiaries

Personal SBP Premiums: 1.Level for Life (Guaranteed) 2.Rate of Return 3.Dividends 4.Liquidity, Use and Control L. U. C Benefits: 1.No Limits 2.Payout is Income Tax Free 3.Payout can be Lump Sum 4.Beneficiaries can be Spouse and other Family Members

Lost Opportunity Costs FEGLI Premiums- $67,989/30 = $2,266 (average 30 year cost) - $2,266 x 30 4 % = $132,189 SBP Premiums- $144,143/26 = $5,544 (average 26 year cost) - $5,544 x 26 4% = $255,489 Total Lost Opportunity Costs for FEGLI & SBP Premiums= $387,678

Overview of your Core Federal Benefits! What you don’t know can and will cost you! 1.FEHB - Your Federal Health Benefits 2.CSRS & FERS Pension/Annuity Benefits 3.Thrift Savings Plan (401K) 4.FEGLI - Federal Group Term Life Insurance 5.CSRS & FERS Survivor Benefits programs 6.Early Disability Retirement Benefits 7.FERS Pre-62 Supplement & Social Security Benefits 8.FSA Flexible Spending Account 9.Long term health care benefits program

Financial Snapshot Exercise, Scenario and Question LETS DO THE MATH, Monthly Income X years = ? ? Retires age 59 after 30 Years ? Lives until 88 age? Qualify for 2,267 in monthly Pension FERS/CSRS Saves 349,500 in TSP – 401k X 5 % = $ 1, mthly Saves 150,000 in other acct’s X 5 % = $ mthly Will Qualify for $ 1,575 mthly in SSI income age 62 ** Will Qualify for $ 1,175 mthly FERS Pre-62 supp Total $ 5,923 monthly X 12 X 29 years = $ 2,061, After my departure, I would like to guarantee $______ % ? of all of my money left to ( spouse, significant other, children, loved ones or other) ? ________________________________ ___________________________________________________

1) Discover the truth about your benefit package and your other financial products via our Analysis, Summaries & Strategy consultation process. 2) Become an active, knowledgeable and responsible participant regarding your financial well being. 3) Decrease wasteful spending that doesn't serve your purpose and or goals while maximizing your current and future benefits and income. 4) Enhance, increase and secure your future through guarantees not hypotheticals, wishful thinking and “you can trust me”. Fill out the request contact-service form and provide us information from your LES (pay-stub), estimated TSP balance and other information needed to start the process