1. THE VALUE OF DATA GATHERING AND INTEGRATION IN A COMPREHENSIVE FRAMEWORK: HOW RIIA’S PROCEDURAL PRUDENCE MAP ℠ HELPS CUSTOMIZE RETIREMENT ADVISORY SERVICES TO CLIENT TYPES ABOVE AND BEYOND THE FIVE SERVICES IN MORNINGSTAR’S “GAMMA”? Moderator: François Gadenne, CFA®, RMA®, Chairman &Executive Director of RIIA Speaker: Kerry Uffman, PFS, CFP®, CFA®, RICP, RMA®

2. RMA® Curriculum Section 1.1.e: Morningstar’s Gamma: The Value of Process Returns From Investing: Beta: Return from exposure to systematic risk Alpha: Excess return beyond exposure to systematic risk Returns From Planning: Gamma: Return from exposure to specific planning services Five planning services in David Blanchett’s original 2012 Paper Six planning services in David Blanchett’s 2013 RMA section

3. RMA® Curriculum Section 1.1.e: Morningstar’s Gamma: The Value of Process Gamma’s Specific Planning Services (2012 Paper) Total Wealth Asset Allocation Dynamic Withdrawal Strategy Annuity Allocation Asset Location and Withdrawal Sourcing Liability-relative Optimization

4. RMA® Curriculum Section 1.1.e: Morningstar’s Gamma: The Value of Process Gamma’s Specific Planning Services (2013 Section) Asset Allocation based on Total Wealth Dynamic Safe Withdrawal Rate Strategies Guaranteed Retirement Income Products Tax-efficient Planning Asset/Liability Matching Social Security Elections

5. The RMA® Signposts

6. Matching Gamma’s Services to Signposts Client Diagnostic Kit ℠ : -Asset/Liabilities Matching -Social Securities Elections Retirement Allocations ℠ : RMA® ToolBox: -Asset Allocations Based on Total Wealth -Dynamic Safe Withdrawal Rate Strategies -Guaranteed Retirement Income Products -Tax-efficient Strategies RMA® Practice Management:

7. Drilling Down the RMA® Signposts THE CLIENT DIAGNOSTIC KIT ℠ Measures of Fundedness ℠ Client Segmentation Matrix Fundamental Planning Strategies Household Balance Sheet ℠ THE RETIREMENT ALLOCATIONS ℠ Risk Retention/Upside Portfolio Risk Management/Floor Portfolio Risk Pooling/Longevity Portfolio Risk Avoidance/Reserves Portfolio THE RMA® TOOLBOX Implementation Process Approaches Account Locations Product Selections PRACTICE MANAGEMENT Retirement Policy Statement ℠ Implementation/Monitoring Ethics

8. First Signpost: The Client Diagnostic Kit ℠ Measures of Fundedness ℠ Client Segmentation Matrix Fundamental Planning Strategies Household Balance Sheet ℠ -Asset/Liabilities Matching -Social Securities Elections

9. Second Signpost: The Retirement Allocations ℠ Risk Retention/Upside Portfolio Risk Management/Floor Portfolio Risk Pooling/Longevity Portfolio Risk Avoidance/Reserves Portfolio

10. Third Signpost: The RMA® ToolBox Implementation Process Approaches -Asset Allocations Based on Total Wealth -Dynamic Safe Withdrawal Rate Strategies Account Locations -Tax-efficient Strategies Product Selections -Guaranteed Retirement Income Products

11. Fourth Signpost: Practice Management Retirement Policy Statement ℠ Implementation/Monitoring Ethics

12. The Retirement Policy Statement ℠ : Steps 1 to 3 RPS Step (1): Have you communicated the central responsibility of the household client, their understanding and approval of the retirement policy? RPS Step (2): Did you document the initial needs and goals of the household client (using the relevant measures of “fundedness” ℠ to explain overfunded, constrained or underfunded status) and presented the relevant capital market expectations? RPS Step (3): Did you set the initial, client-matched, fundamental policy decisions and most importantly the selected planning strategy (investment-based, goals- based, product-based)?

13. The Retirement Policy Statement ℠ : Steps 4a, 4b and 5 RPS Step (4.a): Have you documented the needs and goals of the household client (using the Household Balance Sheet ℠ and the Household Balance Sheet Benchmarks ℠ to analyze all assets and liabilities)? -Asset/Liabilities Matching RPS Step (5): Have you planned for and explained human, social and financial capital? - Social Securities Elections RPS Step (4.b)*: Have you documented the needs and goals of the household client (using the life-cycle approach to cash flows over the remaining time horizon and longevity expectations)?

14. The Retirement Policy Statement ℠ : Steps 6 and 7 RPS Step (6): Did you document risk profiles and risk exposures of the household client? RPS Step (7): Did you summarize the realistic investment objectives that match the household client’s needs, goals and risk exposures as well as the capital market expectations that support the retirement allocations recommendations and determine the plan’s threshold rate of return – the minimum annualized real return necessary for the plan to work?

15. The Retirement Policy Statement ℠ : Steps 8, 9 and 10 PS Step (8): Have you documented the choice of implementation process approaches? -Asset Allocations Based on Total Wealth -Dynamic Safe Withdrawal Rate Strategies RPS Step (9): Did you confirm the choice of account locations and making the product selections? -Tax-efficient Strategies -Guaranteed Retirement Income Products RPS Step (10): Are you prepared to present, implement, and monitor the plan?

16. The Procedural Prudence Map ℠

17. Beyond Morningstar’s Gamma… Vanguard Advisor Alpha

18. RMA® Curriculum Section 1.1. f Vanguard Advisor Alpha™ Vanguard’s Advisor Alpha - Specific Planning Services (2001) Paper) -relationship-oriented services -Cogent wealth management -financial planning -discipline -guidance

19. RMA® Curriculum Section 1.1. f Vanguard Advisor Alpha Vanguard’s Advisor Alpha – Strategy Modules (2014) Paper -Suitable asset allocation using broadly diversified funds/ETFs -Cost-effective implementation (expense ratios) -Rebalancing -Behavioral coaching -Asset location -Spending strategy (withdrawal order) -Total-return versus income investing

20. Matching Vanguard Advisor Alpha™ to Signposts Client Diagnostic Kit ℠ : Spending strategy (withdrawal order) Retirement Allocations ℠ : RMA® ToolBox: - Total-return versus income investing - Asset location - Cost-effective implementation (expense ratios) - Suitable asset allocation using broadly diversified funds/ETFs RMA® Practice Management: -Rebalancing -Behavioral coaching

21. RMA® Graduates Using The Curriculum To Customize Levels of Services to Client Needs : Kerry Uffman, PFS, CFP®, CFA®, RICP, RMA®