The following is an outline of the proposed format for this workshop:

1. (The first 4 screens are not presented during the presentation. For proposal submission only)Latitude Financial Group has been contracted by the Colorado Department of Personnel and Administration since 2007 to provide pre-retirement education sessions for state of Colorado employees. Latitude Financial Group is dedicated to providing comprehensive financial strategies to individuals in the Rocky Mountain Region and have been serving State of Colorado Employees for over 10 years by conducting over 300 financial planning seminars and workshops. Over this period we have consulted with literally thousands of individuals, assisting them in preparation for retirement. Our work with State of Colorado Employees is diverse but has included such areas of planning as: Asset accumulation through the tax-qualified retirement vehicles offered through PERA, Retirement planning by projecting future streams of income including Pension Analysis, Social Security and the Windfall Elimination Provision, and other sources of income as well as projections of capital available from sources such as the qualified retirement plans offered t hrough PERA affiliated employment and other assets, Risk management including disability income protection offered as an employee benefit, group life insurance alternatives, PERA Health Care coverage, PERA Care and Long-Term Care protection alternatives, Education planning including projection of such expenses and alternative planning vehicles Auditing of individuals’ privately owned investment and life insurance contractsWith such extensive knowledge and expertise, presentations have increased only from word-of-mouth advertising. On the following pages, you will find our proposal to present at the 2009 Spring Educational Conference.Included in this proposal is a sample of one of our recent seminars directed towards a diverse audience regarding general financial planning issues along with issues specifically addressing topics of importance to PERA participants. The following workshop descriptions will explain how we would present the workshops for the specific demographics in attendance. The ideal size of a workshop is less than 80 participants. The expected time per seminar is 3 hours.

2. In This workshop, we will focus on those employees who are now vested in the defined benefit pension. Again, we will spend some time explaining how a defined benefit pension, specifically PERA, operates. We will also spend some time with participants explaining how to determine how one should invest in the 457 and 401(k). A risk tolerance exercise will help participants understand how aggressive or conservative they are when it comes to making investments. At this time, we will also discuss the benefits of investing within voluntary, defined-contribution plans such as 401(k)s, 457s and 403(b)s as well as IRAs and Roth IRAs. In past presentations we have seen large numbers of inquiries along three major topics; leaving State employment prior to retirement, asset preservation in a bad economy, and education planning. An explanation of how the deferred pension benefit operates as well as withdrawal and direct rollover alternatives will be explained. We have found that most people do not understand how to choose among the numerous investment options as well as how often they should rebalance, reallocate or move the investments to a more conservative portfolio. Since modern portfolio theory proves that the allocation in a portfolio is more important than the specific fund choices, general allocation topics will be covered. We will not be making specific fund/investment recommendations in the workshop. We will provide a self assessment risk tolerance questionnaire to allow people to understand how they may want to be invested.The concern of education planning that we see often has more immediate importance than retirement planning. A focused conversation on college planning will be provided. This includes discussion of costs, tuition rate increases and potential investment alternatives.

3. We will also discuss three specific planning issues that State Employees will need to address; buying years of service, PERA’s three pension options, and long-term care insurance. Due to the fact that the cost of buying years of service has recently changed dramatically, we will provide examples of PERA participants contemplating buying years of service. This will be an area where an open conversation with the presenters and participants will likely take place. Of all topics discussed in recent presentations, that of buying years of service has been the hottest topic. When we discuss PERA’s pension option we will first refer to the PERA retirement grid. We initially explain how an individual’s Highest Average Salary (HAS) is calculated, along with explaining the effects of 125 deductions/cafeteria plans has on the HAS calculation. An example will be provided of the pension payouts for all three options. This is another area where we traditionally receive a number of questions. Once the pension options are reviewed, we will openly answer questions and facilitate group discussion.Finally, most participants have concerns about long-term care. Many people have had personal experiences with parents, grandparents or other close friends and relatives. We will provide an explanation of what long-term care is. We will review who typically pays the costs and how one may protect against the risk of spending down their assets in the event of a long-term care need.

4. The following is an outline of the proposed format for this workshop: I. Background and history of PERA II. Investment Analysis a .Risk Tolerance Exercise b. Allocation analysis c. Morningstar analysis d. Sector Rotation III. Education Planning a. Costs and benefits of higher education and advanced degrees b. Education funding vehicles IV. Risk management exercise a. PERA Group Life Insurance Alternatives b. PERA Long-Term Disability Options c. Long-Term Care Alternatives V. Mid-Career Retirement Planning and Considerations a. Target Retirement Date and Needs Exercise b. Highest Average Salary Projections c. Discussion of PERA Defined Benefit Payout Options d. Integration of Social Security and Other Assets e. Leaving PERA prior to retirement eligibility f. Purchasing years of service

5. Issues Affecting Financial SecurityFor State EmployeesPresented to Colorado State Employeesby:Dustin J. Tidwell, Daniel L. Grote, CFP, & Kelly Stecklein MBA, MSF, CFP Securities offered through Securities America, Inc., Member FINRA/SIPC and advisory services offered through Securities America Advisors, Inc. Dustin J. Tidwell and Daniel L. Grote, CFP Representatives. Securities America and it’s representatives are not affiliated with nor is this event officially endorsed or supported by the Public Employee’s Retirement Association of Colorado. Date of first use 8/08

6. Legal DisclosureSecurities America and its representatives do not provide tax advice. It is important to consult with a tax professional regarding your specific situation before implementing a tax strategy.

7. Today’s Objectives • Understand the basics of planning a solid retirement • Understand What Tools You Have at Your Disposal • Understand Your Retirement Needs • Understand Basic Investment Concepts • Understand Disability, Life Insurance, and Long Term Care Risks • Understand PERA's 3 Retirement Options • Understand Education Funding Basics

8. Financial Adviser Dentist Medical Doctor CPA Attorney

9. Jack & Shirley

11. Standard of Living House Payment Car Payment Utilities Food Taxes FUN!

12. Investments PERA Life Insurance Social Security Estate Other Retirement Plans House Savings

13. Standard of Living Estate

14. Estate • Retirement 2. 3. 4.

16. Retirement Comparison Age 50 - $40,000 HAS30 Years of Service California $18,060 New York (Age 55) $24,000 Illinois $26,400 Texas $27,600 Colorado PERA $30,000 *Assumes PERA Member Hired Before 7/1/05

17. Social Security vs. PERA  Age 30 - $30,000 Annual Income in 2001  Retire @ Age 62 in 32 Years  Social Security assumes a hypothetical 4.3% salary increase per year for 32 years Illustrated Monthly Income @ 62: Social Security $2,800 PERA $7,700 DIFFERENCE! $4,900 The above is based on hypothetical figures. Actual results will vary.

18. Is Your Pension Going to be Enough?

19. Retiring couples will need $200,000 in savings just to pay for the most basic medical coverage (19). Many experts believe that this figure is conservative and that $300,000 may be a more realistic number.-Fidelity Investments, Press Release, 06 March 2006.

22. Highest Average Salary • Average of Your Highest Three Years of Pay

23. Use this table if you were hired on or before June 30, 2005.

24. Intermission

25. What a Small Investment • $100/month invested over 30 years at a 9% rate of return becomes more than $183,000 ****Total Investment $36,000 • $275/month invested over 20 years at a 9% rate of return becomes more than $183,000 ****Total Investment $66,000 • $946/month invested over 10 years at a 9% rate of return becomes over $183,000 ****Total Investment $113,520 • 9% rate of return is hypothetical and does not represent the return of an actual investment. The rate of return on a real investment may be lower.

26. Supplemental Retirement Plans available to State of Colorado Employees • 401(k) • 457

27. Contribution Limits Increase in contribution limits to 401(k), 403(b) & 457(b) Plans under EGTRRA 2001* 2007…$15,500 annual or $1,291 monthly 2008 …$15,500 annual or $1,291 monthly 2009 & Beyond…$15,500 annual + Inflation Adjustment *Maximum contribution is lesser of 100% of income or amount shown above.

28. Over Age 50? Combined Amounts For 401(k) YEAR 2006 2007 2008 REGULAR $15,000 $15,500 $15,500 CATCH-UP $5,000 $5,000 $5,000 TOTAL $20,000 $20,500 $20,500 *Maximum contribution is lesser of 100% of income or amount shown above. *Indexed for Inflation after 2008

29. 457 Plans 457(b) Plan Catch Up Provision Twice the Regular Dollar Limit During Three Years Prior to Retirement CATCH-UP $15,000 $15,500 $15,500 TOTAL $30,000 $31,000 $31,000 YEAR 2006 2007 2008 REGULAR $15,000 $15,500 $15,500 *Maximum contribution is lesser of 100% of income or amount shown above. *Indexed for Inflation after 2008

30. Roth IRA Is a Roth IRA Right For You? • Funded With After Tax Dollars • Tax Deferred Growth • Tax Free Qualified Withdrawal! • A Roth IRA owner must reach age 59 ½ or hold the Roth for at least five years, whichever is longer, to qualify for tax-free distributions.

31. If a Dollar Doubled Every Year, What Would the Value Be in 20 Years? Time Value of Money • The above chart is an illustration of mathematical principles only, and is not indicative of any particular investment or investment strategy

32. Time Value of Money If the Same Dollar Doubled, But Was Subject to a 28% Tax Each Year, What Would That Dollar Be Worth in 20 Years? • The above chart is an illustration of mathematical principles only, and is not indicative of any particular investment or investment strategy

33. Merton Miller William Sharpe Harry Markowitz

34. Source: Ibbotson Associates. Small value stocks are represented by the Russell 2000 Value Index; small growth stocks are represented by the Russell 2000 Growth Index; large value stocks are represented by the S&P 500/Barra Value Index for 1987-2005 and by the S&P/Citigroup Value Index for 2006; large growth stocks are represented by the S&P 500/Barra Growth Index for 1987-2005 and by the S&P 500/ Citigroup Growth Index for 2006; mid-cap stocks are represented by the S&P MidCap 400 Index; foreign stocks are represented by the MSCI EAFE Index; REITs are represented by the NAREIT ALL REIT Index; high yield bonds are represented by the Lehman Brothers High-Yield Index; investment-grade bonds are represented by the Lehman Brothers Aggregate Bond Index. This material has been obtained from sources generally considered reliable. No guarantee can be made as to its accuracy. Not intended to represent the performance of any particular investment. Indices are unmanaged and one cannot invest directly in an index

35. For illustrative purposes only. An investor should consult with a financial advisor before implementing an investment plan. Diversification and asset allocation does not guarantee profits. It is possible to lose money in a diversified portfolio.

36. Risk Tolerance Exercise (Handout)

39. Buying Service Credit Is It Right For YOU?

40. Purchase of Service Credit • Prior PERA Service • No Limit – the price to buy back is a function of when you left and how much money you took out • Non-covered PERA Service • Qualified service credit (any other public employment) • Non-qualified service credit (private sector employment)

41. 2004 Legislative ChangesEffective for All Members November 1st 2005 Full Actuarial Cost For Service Credit Purchases. Do Service Credit Purchases Still Add Up?

42. Benefits of Purchasing Service Credit At Age 50 with 28 years Based on $48,000 HAS @ 37.20% Cost $17,856 Cost to Buy One Year $3,168 Additional PERA Income (6.6% X $48,000) 17.7% Initial Annual Cash Flow Income ($3,168 Divided by $17,856). Note: This additional income is increased each year by 3.5% annual cost of living adjustment.

43. Benefits of Purchasing Service Credit At Age 60 with 20+ years Based on $48,000 HAS @ 32.93% Cost $15,806 Cost to Buy One Year $1,200 Additional PERA Income (2.5% X $48,000) 7.6% Initial Annual Cash Flow Income ($1,200 Divided by $15,806). Note: This additional income is increased each year by 3.5% annual cost of living adjustment.

44. Purchasing Service Credit 1. Pay out of Savings 2. Home Equity Line of Credit 3. PERA will finance @ 8.75% non-tax deductible interest Buy 1 year……..2 years to pay Buy 2 years……4 years to pay Buy 3 years……6 years to pay *Must be repaid prior to retirement Buy 4 years……8 years to pay Buy 5+ years….10 years to pay 4. IRAs, 403(b)/ TSAs and Section 457(b) plans, in addition to PERA’s 401(k), are available to purchase PERA Service Credit… INCOME TAX FREE!

45. Portability At any time you can rollover IRAs to the following plans: • 401(k) • 403(b) TSA • 457(b) Gov’t Deferred Compensation Plan

46. Estate 1. Retirement 2. Disability 3. 4.

47. Valuable Resources: http://www.mynewhealthplan.com/ Fast and Free Health Insurance Quotes http://www.medicare.gov

48. This is a hypothetical example

49. If You’re Sick or Injured, How Will You Cover Your Monthly Income Needs?

50. Long Term Care The Biggest Financial Risk PERA Members May Face In Retirement!