1. HIDDEN DESCRIPTION SLIDE — NOT TO BE SHOWN TO THE PUBLIC Financial Facts Catalogue code: B07 Full presentation or module? Presentation Slide numbers: B07-1 to B07-28 Registered/Non-Registered Usage: Okay for use by all. Not reviewed by FINRA due to no mention of GS Funds or Retail products. (Choices: registered rep use only, not for registered rep use, allowed for all, partial limitations) Last update info: Date updated: 2014-12-31 Project #25321 Description of changes: updated slides B07-18, B07-23. update background with new approved template Filed with FINRA? No If yes, date: Notes:

2. Financial Facts Basic Concepts You Need to Know B07-1

3. You won’t work forever. FINANCIAL FACTS  Financial planners suggest you will need to replace 70–90% of your annual income when you retire.  On average, Social Security was designed to only replace 25–40% of your income.  You may live one-third of your life in retirement. 1 Fact B07-2

4. Source: CIA — the World Fact Book B07-3 Longer Lifespan 1946 — age 67 2014 — age 78 11 years longer

5. The earlier you save, the better. FINANCIAL FACTS Compound return — the return on your original investment, plus the return on your previous earnings — can make a huge difference in your retirement account balance over time. 2 Fact B07-4

6. Compound Return Original investment:$100 Invested for one year with an 8% return adding $8 for a total of:$108 Invested for another year with an 8% return adding around $9 for a total of:$117 B07-5 FINANCIAL FACTS

7. Retirement Plan Contributions Invest $100 per month beginning at age: When you retire at age 65, you have:* 25$349,101 30$229,338 35$149,012 40$95,103 45$58,896 50$34,604 55$18,295 60$7,348 B07-6 *Accounts in this column are based on an 8% annual investment return in a tax-deferred retirement plan. Your return may be more or less. Note that the funds will be subject to income tax when you receive your distribution(s). FINANCIAL FACTS

8. To Accumulate $100,000 by Age 65 FINANCIAL FACTS Age 50 Monthly contribution$290 Total contributions$52,200 Total return$47,800 Total accumulation$100,000 B07-7 Based on 8% annual earnings. This is an illustration to show the concept of compound return and is not intended to imply the past or future performance.

9. To Accumulate $100,000 by Age 65 FINANCIAL FACTS Age 50Age 40 Monthly contribution$290$105 Total contributions$52,200$31,500 Total return$47,800$68,500 Total accumulation$100,000 B07-8 Based on 8% annual earnings. This is an illustration to show the concept of compound return and is not intended to imply the past or future performance.

10. To Accumulate $100,000 by Age 65 FINANCIAL FACTS Age 50Age 40Age 30 Monthly contribution$290$105$44 Total contributions$52,200$31,500$18,480 Total return$47,800$68,500$81,520 Total accumulation$100,000 B07-9 Based on 8% annual earnings. This is an illustration to show the concept of compound return and is not intended to imply the past or future performance.

11. Yes, you have money to invest. FINANCIAL FACTS  Monitor your spending for one month.  Determine where your money is going and where you can economize.  Start with 1% and increase it 1% each time you get a raise. 3 Fact B07-10

12. Finding Extra Money  Lower your tax withholding through your employer.  Check fees and interest rates on all credit cards (these can be negotiated).  Consider consolidating credit card debt to a low- interest loan.  Average your utility bills. B07-11 FINANCIAL FACTS  Utilize all “pre-tax” programs offered by your employer.  Watch ATM and checking account fees.  Raise deductibles on insurance.  Consider refinancing your home or car if market interest rates are 1½% lower than what you are paying.

13. A percentage is better than a “fixed dollar” amount. Monthly salary = $2,000 $100 monthly “fixed” investment (5%) Five years later with 3% annual raises: Monthly salary = $2,318 $100 monthly “fixed” investment (4.3%) 4 Fact B07-12 FINANCIAL FACTS

14. A “Fixed Dollar” Contribution  Remains flat when your salary increases  Does not keep pace with inflation  Makes it impossible to maintain your standard of living when you retire B07-13 FINANCIAL FACTS

15. Your investment choice is important. FINANCIAL FACTS  “Owned” investment  Shares of American and international companies  Volatile returns with increased risk  Historically, equities have a higher potential for long-term return Fixed Income Assets (Bonds) Equity Assets (Stocks) 5 Fact B07-14  “Loaned” investment  Bonds, money market instruments, Treasury notes, etc.  Less volatile returns with reduced risk  Historically, fixed-income assets have less potential risk and lower potential returns than equity assets

16. Which type of investment is right for you? FINANCIAL FACTS  Time horizon  Risk tolerance  Diversification B07-15

17. Stock Performance from 1930–2010 FINANCIAL FACTS Percentage of time stocks had positive returns, 1930–2010 1 Year Periods5 Year Periods10 Year Periods20 Year Periods B07-16 Positive ReturnsNegative Returns Source: Ibbotson Associates While past performance is no guarantee of future performance, the market itself has been resilient through the years. Illustration based on S&P 500 Index from 1/1/1930 to 12/31/2010. 100%

18. Asset Allocation matters. FINANCIAL FACTS  Return on investment — the rate at which your investment grows as a result of earnings.  Higher return usually means greater risk.  A small difference in a rate of return can make a big difference in the size of your investment over time. 6 Fact B07-17

19. A little risk can be a good thing. FINANCIAL FACTS  Invests $250/month  8% average return for 35 years  Investment total: $574,000 This hypothetical illustration is not intended to represent or predict the return on an actual investment. Conservative Portfolio Aggressive Portfolio B07-18  Invests $250/month  6% average return for 35 years  Investment total: $356,000

20. Free money is a big deal. FINANCIAL FACTS If matching contributions are offered, you should always try to take advantage of them. 7 Fact B07-19

21. Debt can derail your plan. FINANCIAL FACTS  Paying off debt  Checking your credit record 8 Fact B07-20

22. Dealing with Debt FINANCIAL FACTS Avoid the minimum payment trap Assumes $5,000 debt, 16% interest, no additional charges Source: Bankrate.com Monthly PaymentTotal PaidYears to Pay Off Minimum$7,43112 $200 fixed$6,1232.6 $225 fixed$5,9702.25 $250 fixed$5,8542 B07-21

23. Using Debt Wisely FINANCIAL FACTS B07-22  Importance of your credit history  Obtaining your credit report www.annualcreditreport.com Call 1-877-322-8228  Correcting mistakes in your credit report

24. You can’t time the market. FINANCIAL FACTS Market timing — trying to move out of an investment when you think it is about to lose value or move into an investment just as you think it is about to grow in value. 9 Fact B07-23

25. Missing the Best Days in the Market — 1990–2010 FINANCIAL FACTS B07-24 Market Returns: S&P 500 Index from 1990–2010 Sources: FactSet, Standard & Poor’s as of 12/31/2010 Stayed fully invested all 5,295 days Missed 10 best days Missed 20 best days 0%2%4%6%8%10% 8.97% 5.25% 2.82% 0.76% Missed 30 best days

26. You’re in it for the long haul. FINANCIAL FACTS Dollar cost averaging — Investing the same amount of money at regular intervals over a long period of time resulting in a lower average cost per share. 10 Fact B07-25

27. Be a long-term investor. FINANCIAL FACTS  Be aware of the ups and downs  Remember your objectives B07-26

28. Stuff to Do FINANCIAL FACTS  Figure out where you can find more money in your budget  Invest a percentage of your income Join the 1% Club  Check your portfolio allocation Consider GuideStone’s three approaches to investing  Deal with your debt  Use GPS: Guided Planning Services® * Financial advice provided by GuideStone Advisors, a controlled-affiliate of GuideStone Financial Resources. B07-27

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