1. Alliance Financial Group, Inc Registered Investment Advisory Securities offered exclusively through SunAmerica Securities, Inc. A registered broker-dealer not affiliated with Alliance Financial Group, Inc. Member NASD/SIPC

2. What will inflation and taxation do to my 401(k)? Do I have enough insurance? Will my family be taken care of if something happens to me? Can I retire? ? What is Estate Planning? Are my investments too risky? Can I afford a vacation home? Will Social Security Be Enough?

3. What is Financial Planning?

4. Purpose Financial planning is the process evaluating where you are currently, determining where you want to go, and laying out a plan for you to achieve your destination. A plan can show potential weaknesses or pitfalls of your current financial scenario and allow you to make changes (today!) to eliminate or reduce those weaknesses. Planning allows you to make INFORMED decisions about your future.

5. To create a personalized financial plan we will need a lot of information. You will be presented with a list requesting documents and statements. From this information three basic statements are created: Net Worth, Cash Flow, and Objectives.

6. Net Worth In order to make informed decisions on the future, you need to recognize where you are today. The net worth statement summarizes your assets and liabilities into one document.

7. Cash Flow Loans Mortgage Living Expenses Savings Taxes Insurance How do you use your money? Humans are creatures of habit. How we spend money today is a good indication of how we will spend it in the future. The cash flow statement analyzes how you use your money. The results can be surprising.

8. Objectives What do YOU want to do? Vacations Estate Planning Future Purchases If you fail to plan, you plan to fail. The main reason people don’t realize their dreams is because the dream never makes the transition into becoming a tangible goal. A financial plan creates a forum for you to prioritize your goals and gives you direction in achieving them. Reduce Taxes IRS

9. Projections The Net Worth, Cash Flow, and Objectives statements are then combined to create projections. Retirement based projections are the most common, but projections are also created for Life Insurance, Estate Taxes, Disability Needs, and many more. The next slide shows the effect of annual expenses, various goals and objectives on the invested assets. The key is to have enough assets to cover any cash flow shortages.

10. Retirement Age Expected Expenses During Retirement Adjusted for Inflation ¼ of Education Expenses (Child will pay other ¾ ) Car Purchases Summer Classes Option Income Shortages are Drawn from accounts Surpluses are added to accounts Projected balance of all accounts Airplane Purchase Projected Pension and Social Security

11. Retirement Graph This is a graphical representation of the previous worksheet. It indicates whether you will have sufficient funds throughout your lifetime or if you have a shortage of funds.

12. Projected Rate of Return Asset Projection This worksheet compiles all of the invested assets together. It shows the potential rate of return along with deposits and withdrawals. Annual Net Deposits Withdrawals

13. Life Insurance This graph shows the amount of life insurance needed When there is a space between the Capital Needed Line and the Available Assets there is a life insurance need.

14. When the Available Assets is above the Capital Needed Line there is no need for life insurance. Life Insurance This graph shows the amount of life insurance needed

15. Adjustments Needed? Some plans show that major adjustments are needed in order to achieve the stated goals and objectives. In this example, recommendations were made to consolidate debt. The monthly savings were then reinvested. No change in lifestyle was experienced.

16. Analysis After the projections are created, a team of professionals with over 50 years of cumulative experience will analyze the projections to determine the strengths and weaknesses of your plan. A Plan of Action will be written that details recommendations to reduce weaknesses and build upon strengths.

17. You will have a roadmap, with instructions, directing you on how to achieve your stated goals. Annual updates will ensure that you stay on course. The end result... Confidence of Mind... Knowing you are taking steps to put your financial life in order. The Result