ExecPlan v5.0…..

1. ExecPlan v5.0….. Welcome to ExecPlan. This tutorial is a step-by-step guide of the entered Demoplan that is included with ExecPlan. For those operating ExecPlan in trial mode, you may generate reports, graphics and schedules as long as you do not alter the client’s name or income. This sample case will review retirement, premature death and disability of both client and spouse. In addition you will be able to review estate planning options, education funding objectives, and income tax planning strategies. Please use your Page Up and Page Down keys to move through this presentation. This is a basic case and reviews the most commonly used fields in ExecPlan. However this is just a fraction of the potential modeling capabilities of this software. We will be beginning to post at our website www.execplan.com a library of specific functions that are not illustrated in this presentation.

2. Lets take a Look…The Welcome Screen • Once you open ExecPlan, this welcome screen will appear • This screen allows you to choose a previously entered plan, enter a new plan, choose funding utilities, or edit the system setup folder. • The funding utilities are ”shortcut” programs included in ExecPlan. They are designed to perform simple quick calculations, when generating an entire plan is not necessary. These programs are basic an easy to understand, and therefore will not be reviewed in this tutorial. • At this time please click the system setup.

3. System Setup • Please click the Word Processing tab. • Here is where you tell us what type of word processor you have. ExecPlan will automatically determines its path. • ExecPlan provides four types of text reports, for this illustration click this tab and choose Summary. • Click OK.

4. Starting a Plan • Please choose the existing plan tab and choose Demoplan. In trial version, ExecPlan will automatically open up Demoplan

5. Cases • ExecPlan Provides the option of 1 or 2 cases. The purpose is to provide the planner the ability to have an alternate view of events, i.e. current vs. recommendations. When first working with ExecPlan, you may want to choose just 1 case when starting the plan. You can always added another case later • These two cases will display for both data entry and reports • When entering data ExecPlan will enter the “same” data into both cases. You may change how data is entered or viewed, by clicking on either of these two boxes

6. Scenarios • When initially entering data you should enter the information about the client, as if they will never die, disable or retire. For example, when entering a client’s income just enter it in and let it grow forever, do not cut it off at their retirement age. • Data entered into the “Common” scenario will be shared with the scenarios for death, disability and retirement. • Please click this scenario button.

7. Scenarios. • After you have entered all of the data for your client, you then can choose to view the impact of a specific event on your client’s life. • When you choose one of these scenarios, ExecPlan will take your common data and manipulate that data for that event. For example, if you choose Client Dies, ExecPlan will automatically cease income to the client, pay out any life insurance, change tax filing status, pay any social security benefits, etc. Then when you view reports, or graphs, they will reflect the impact of a premature death. The Financial Independence report will summarized the client’s overall position, and the need, if any for life insurance. • Should you edit data in a scenario, that change will only effect that scenario. For example, in the Spouse Dies scenario, you would like to include a child care expense. By adding this expense in this scenario, that expense will ONLY show for the spouse's death scenario. Please leave as Common and click OK

8. Lets Begin Data Entry • By either clicking on the pencil or desired field, you will be able to move from the main folders to the subsets folders to the data entry screen • Then enter the appropriate data, then click OK

9. Tax & Technical Information • Please click on Tax and Technical Information until the Data entry screen for Tax & Technical Information appears

10. Data Entry Screen • This Note Box allows you to write memos to yourself reflecting this specific entry. These notes will not appear in any reports • When entering data, you need not fill in all fields, just those that are appropriate. Highlight the field you desire, then type in data into data entry box. You may also choose the pull down tab to select possible entries. Hit enter and the value will be placed in that field and all future years • Once an entry has green made, a green check mark is made to show data has been entered for this field

11. Deleting Data • By clicking the delete button, a menu will appear and you will be presented with three choices • The first choice deletes a value in a single field, for example the enter value in year 2005 • The second choice will delete everything in either the initial column of entries or the revised column. • The third choice eliminate all entrees made in the set you are in for either the initial case or revised case • The fourth choice eliminates all data for both cases

12. Dependents • ExecPlan makes few assumptions. This allows the end user the flexibility to form their own assumptions. A prime example of this is the number of exemptions. In ExecPlan, you will need to “kick” the kids out. ExecPlan does not assume children will be dependents until 18, 21 or 38. By not making assumption, you will be able to account for a lifetime dependent child, or a parent that may move in with your client. • In this case, you will note that we start with 4, then 3 then 2. This reflects the client, spouse and two children, then in 2012 one child moves out, then the second moves out in 2014

13. Inflation • This field is used to set the inflation for tax related items. i.e. tax tables, retirement plan contribution limitations, personal exceptions, etc. This field is not used to inflate personal expenses, income or rates of returns. • The “Rate Since 2001” field does not need to be filled in if you are up to date on support • For this sample plan we have entered 3 for all years. • IMPORTANT; Using a higher inflation value, makes life easier for your client, not harder. A higher rate will reduce future tax burdens and allow for larger deferred retirement plan contributions.

14. State Income Tax • Pull the drop down tab, and choose your state. If your state tax code is not there, or should you have a local tax, use the “State Tax Formula” or Local Tax Formula” fields. Use the F1 help fields to explain how to use, if you are unsure, please call technical support. • For this case we will choose New Jersey Resident.

15. Long Range Planning Information • Here is where we enter information that makes the Scenarios work. This information defines when a client retires, disables or dies prematurely. Should you fail to enter values for these fields, ExecPlan will automatically default values for you. Those defaults are as follows. Retirement age 65, Life expectancy from actuary tables, premature death and disability next year. You can not disable or “knock off” the client or spouse before the first of next year • If you fail to enter data for this or in any required field, ExecPlan will flash up a warning and inform you of the value ExecPlan will use. Click OK

16. Social Security Information • Open up Social Security information. This set is used to help ExecPlan calculate benefits for retirement, disability, or premature death. You may override this calculations, by entering “0” in all fields. • Do not fill in the PIA override • The % Wage Base is defined as what percentage of the social security wage base has your client averaged as income since they began work. Example, the current wage base is $84,000, if you client is making 42,000, then they are at 50% • Enter your expected increase in benefits

17. Children’s Information • Use this field to enter the children’s names and ages. • For this sample re have entered two children born in 1990 and 1992 • If you have not done so at this time, please click on the “-” to close folders and eliminate some of the screen clutter.

18. Assets • Lets begin entering assets. • Idle Cash on Hand can be cash on hand or represent a non interest checking account. For this sample we have entered 1000 • Next open up the Time deposit folder then open the Savings/NOW account folder

19. Time Deposits • The title of all entries may be edited to reflect how you want this entry to appear in your reports • Next, enter a value and a rate of return, for this plan it was 5000 and 2 • You may enter cash deposits as an investment objective, or later we will show how to invest into an asset ONLY if there is excess cash flow available to invest. • You may enter withdraws to meet specific expenses, or use a Sale Order to liquidated as needed. We will explain this function in the next slide.

20. Characteristics • All Assets have this set, however all the fields in this set do not necessary apply to all assets. You only have to enter those that apply • For each field you are entering, there is specific information about what is entered in this field at the bottom of your screen. • There is more detailed help by pressing the F9 key on your keyboard or by clicking on the F9 icon • For general help on the set you are in, press your F1 key

21. Ownership Code • This field is used to identify who owns this asset. This is applicable to all assets. Leaving it blank will result in ExecPlan using the default, which is client owned. You may change system defaults under the Tax & Technical then the Masc. Planning Info folder. • IMPORTANT: The Trust Client and Trust Spouse options are for irrevocable trusts.

22. Cash Code & % To Spouse • Cash Code is used to declare how to treat interest or dividends; should they go to cash flow or be reinvested. The Growth Only is to model a tax free re-investment cash account. • The Cash Code is also used for Amortized Loans and Stock Options • % To Spouse; ExecPlan will automatically distribute the asset based on the type of will you choose. Thus you do not need fill in the % To Spouses field. However, if you choose a Present As Entered will, you may then use this field to allocate what percentage or dollar amount (as a negative number) will pass on to the surviving spouse

23. Sale Order • This field allows you to choose the order in which assets are liquidated to meet annual cash shortfalls, should there be any. • The software will liquidate from the lowest to highest number. • A negative number will prevent the asset from liquidating • If two or more assets have the same number, ExecPlan will liquidate the first asset that was entered. • ExecPlan will liquidate enough of an asset to cover the shortfall and any tax consequences that liquidation would cause, i.e. capital gains from a stock sale. • Sale orders will not work for non liquid assets such as a home, personal property, business interests, stock options, life insurance, etc. • For the Sale Order function to work, YOU MUST have a value entered in the Cash Management folder’s Average Idle Cash field, otherwise annual shortfalls will “pile up” in the beginning year average idle cash

24. Asset Type, Risk Factor & % Nonresident • You do not need to fill in the Asset Type and Risk Factor fields, ExecPlan will automatically fill these fields in based on the type of asset this is. • The % Nonresident field is used to declare how much of this asset’s income is not subject to your state income tax. This field is rarely used.

25. Miscellaneous # • This field has multiple purposes, depending on the asset. • For IRAs and Company Retirement plans, it is used to identify type i.e. 401k, Roth, Simple Matching, 457, etc. • For Other Retirement Plans, it is used to define the plan as a 529 • For business interests, and stock options, it is used to define how much of the asset passes onto the spouse upon death • For Disability Insurance policies, it is used to integrate benefits by Social Security. • And for Children’s Education Expense, it is used to calculate state specific tuition deduction credit.

26. Investment Type, Disposition Year and Group # • These fields are used when the asset may be subject to investment loss limitation or passive activity rules. • You may need to override ExecPlan’s defaults when dealing with certain assets such as S Corps, Limited Partnerships, Tax Credit programs, rental properties, Sole proprietors, etc. depending on your client’s specific interest in the asset. • Please click OK to return to the main data entry screen.

27. Bonds • This sample has a Corporate Bond entered, however all bonds are entered in the same manner. Just enter the value and rate of return. Also enter all applicable characteristics. • Important to note; for municipal bonds, you may need to enter a miscellaneous number under characteristics. See F9 for details. • Click OK.

28. Stocks and Mutual Funds • You will notice 3 entries under Mutual Funds. You will also note one is a stock. You may enter a stock under mutual funds, and just change the name. It has no effect on any computations, however when first using the product, you may find it easier to keep your equities organized under one roof. • You will also notice a red X next to one of the assets. This asset was created from another location and cannot be altered here, we will explain this later on.

29. Stocks & Mutual Funds Continued • You can enter the actual number of shares and price per share, or simply enter 1 share and the total value of all the shares as the share value. However if you choose to do that, make sure your cost basis is properly entered. • Next enter your growth rate • You then can enter shares purchased or shares sold. By entering the number as a negative amount in either field, will result in the purchase or sale of the asset in dollar amounts rather than by number of shares

30. Stocks & Mutual Funds Continued • For how dividends are paid out, you must enter a CashEntry Code. This field defines if the dividend is paid as dollars per share, total amount, or as a percentage. It also defines if it is distributed or reinvested. • This task can be repeated for as many fields as applicable. For example most mutual funds have undistributed capital gains, some have tax free dividends, etc..

31. Import Export Buttons • ExecPlan has added the ability to export commonly used data, so as to import it at a later time. This can be helpful in reducing data entry time. For example, you clients are generally invested into a specific family of funds with a dozen choices. After the first time you have entered the information on a stock or fund you can then export it. Then the next time you need that asset’s values, just click import and choose which stock or fund you need. The information will be brought in, and all you have to do, is enter the updated value

32. How to use the import/export functions • Once data has been entered, choose export, this menu will appear. All fields containing data will automatically be placed in the Sets Selected field for export. • You may remove which subsets you choose not to export by highlighting and deleting • Next click export. A save as menu will appear with the title of the entry as the default title. You can change the name or just click OK • Notice that you will see several previously exported entries. These are samples you may use.

33. Importing Data • Click on the import box and a Open menu will appear. Note only data that was exported for this set will appear. For example, a stock that you had been exported, would not appear as a choice when importing from set 26 Savings/NOW accounts Note, ExecPlan has pre-saved some samples for each set Once you click open, this screen will appear. ExecPlan will automatically list and import all sets that were previously exported. However, you may remove sets by highlighting a set, and then clicking the delete button.

34. Tax Favored Investments A Rental Property • Enter you value, in this case 440000 and then press enter. You will notice that the 440000 value continues throughout all the years. By typing %5 in the following field, the value will be inflated in all corresponding years by 5%. This is how you will grow your client’s income, expenses and some assets. You may also use the < or > signs to grow or reduce a value by a fixed amount over time.

35. Tax Favored Investments Continued • Enter loans if applicable • Enter cash contributions that have no tax impact • Enter total cash received (rent) in cash distributions • Enter Total Reported income received • Enter depreciation information • Enter cash expenses that have no operational cash flow impact, I.e. car mileage • Enter cash expenses • Enter characteristics info on Investment type regarding passive activity and investment loss limitation rules

36. Personal Assets • Enter the home value, then enter a growth • Enter Mortgage information. Note, enter the original date, term in years or months not both, interest rate, and amount. ExecPlan will automatically amortize the loan, and determine the interest portion that is deductible. • Enter the real estate taxes. ExecPlan will again automatically determine that this is deductible.

37. Other Personal Assets • Enter as many personal assets as you choose, or just lump sum them. • For this demo we have enter several examples

38. IRAs • First Title the name of your IRA. • Next enter the value. • Next enter appreciation. • Enter % Income Contribution. This field tells the system what % of the income limitation do you want to use, this is almost always 100%. • Enter the maximum contribution you client would like to make. You can enter $100,000 if you want, however the above field tells ExecPlan to give 100% of the maximum allowable amount. That means only $3000 or $3500 will be contributed for 2003. • Enter years to begin and end contribution • Enter First withdrawal year, code and value. These fields will be explained in the next slide.

39. IRA, Keogh & Company Plan Methods of Withdraws • ExecPlan provides several methods for withdraws from IRAs, Keoghs and Company Retirement Plans. Note withdraw codes 4 & 5 are only available to IRAs. • You can only use a sale order number on an IRA. If you need to liquidate a company plan as needed, roll into an IRA. For all withdraw methods you must enter a first withdraw year • Withdraw Code 1: Distributes a fixed dollar amount, that amount is entered in the Withdraw Value field • Withdraw Code 2: Distributes a fix amount over a fixed number of years, enter the number of years you wish to deplete this IRA over in the Withdraw Value field • Withdraw Code 3: User defined RMD. Enter a number of years left for your client’s life expectancy in the withdraw value field. This code is used most often for a 72T distribution. Typical RMD distributions use codes 7 or 8

40. IRA, Keogh & Company Plan Methods of Withdraws Continued • Withdraw Codes 4 & 5: Use these codes to withdraw as needed before or other liquid assets or after or other liquid assets. Note, the use of this code will not account for RMD, so its best use is with Roth IRAs • Withdraw Code 6: This makes the balance of the asset disappeared • Withdraw Code 7: This performs the RMD. You must enter the first year your client plans to take distributions. You may also enter a Sale Order number for IRAs. This will then liquidate as needed or the RMD, which ever is greater • Withdraw code 8: The same as 7, however you can distribute a fixed dollar amount until RMD by entering the dollar amount in the Withdraw Value and the year you want this fixed amount to begin in the first withdraw year field. • Withdraw codes 9, 10 & 11: Rarely used, see help for more info.

41. IRA Characteristics • IMPORTANT: Always enter the ownership for any qualified plan. • You may enter a Sale Order for an IRA. • The Miscellaneous # is very important for all qualified plans. This helps define the limitation to the plan. Press F9 for more intimation on this option. Values 10 – 19 are the same as 0 – 9, except these entries allow for the “Catch-up” contribution if your client is over age 50. For Example a 6 is a Roth IRA. a 16 (as is in this sample) is a Roth IRA with the Catch-up contribution. ExecPlan will then allow for the additional contribution if and when the client is at least 50 years old.

42. Company Retirement Plans • First enter the name, if you choose. • Enter the value and rate of return. • Enter % Company Contribution as % of client’s income. • Enter % Taxable, usually 0. • Enter % Individual Contribution as a % of their income. Note IRS rules limit contributions to a % of one’s income or $210,000 whichever is less. If your client is contributing the max, just enter 15%, ExecPlan will automatically limit the annual contributions. • Enter % Deductible, usually 100. • Enter years to contribute. • Enter Withdrawal Tear, Code & Value. Not necessary if you plan to rollover.

43. Company Retirement Plan Characteristics • IMPRTANT: Always enter the ownership for any qualified plan. • You may not enter a sale order for a company retirement plan. If you need to liquidate as needed, you will need to rollover the plan to another IRA (see next page). • Enter The Miscellaneous # values 10 – 19 are the same as 0 – 9, except these entries allow for the “Catch-up” contribution if your client is over age 50. For example a 3 is a 401k, a 13, (as is in this sample) is a 401k with the Catch-up contribution. ExecPlan will then allow for the additional contribution if and when the client is at least 50 years old.

44. Qualified Plan Rollovers, Including Roth Conversions • To roll one plan to another, enter a Date, a Plan Link, and a % To Other Plan (a negative entry will roll a dollar amount). • Every entry in ExecPlan has a DSI number. This number is the value to be used for the Plan Link field. • In this sample we are rolling over 100% of this account into the IRA with the DSI# 19 on 12/30/2025. • If the Other Plan Link field is left empty, ExecPlan will then create an IRA called IRA Rollover in the IRA Set. • If the IRA that is rolled into, is a Roth, then a Roth IRA conversion will occur.

45. Other Retirement Plans, Including 529 Plans • This set allows the user to have unlimited flexibility for contributions and distributions. ExecPlan does not do IRS limitations for Other Retirement Plans, nor will it liquidate as needed (using sale orders) so you may need to rollover to another IRA. • You may use this set to fund 529 Plans. To do so, you need to enter the value, rate of return, amount to fund in the Employee Contributories field, the college expense (this will automatically withdraw from this account to fund this expense) and under characteristics enter a 2 for miscellaneous#.

46. Stock Options – NQs & ISOs • Our Sample is of an ISO Stock Option, however ISOs, NQ & SARs are all entered the same, they just have different tax consequences. • Begin by entering the number of shares and the exercise cost, month and year. • Then enter the anticipated value at exercise, the growth rate after exercise, dividend information, and the month and year of sale. • You may override the calculated value of the sale by entering in the sales proceed field

47. Stock Options – NQs & ISOs Characteristics • Important, do not forget to enter who owns the option. • If you want to show the spread enter a 2 for the cash code. The spread is the difference between the exercise price and the current market value. You must also enter the year they vested and the value at that time, for the spread to begin showing on the balance sheet. • Use the Miscellaneous # field to indicate what % of the asset will survive to heirs for estate tax purposes.

48. Liabilities • If you are following along with the sample plan, you will see under liabilities that the Residence mortgage has a red X. This indicates that this entry was not originally created in this folder. If you open this entry, all sets will be highlighted in Red. At the top of this set, there will be information from where this set was originally created. You can only change the title at this point. If you want to change any other information, you must return to the set where this information was original created. Press your F7 key to get a “shortcut” window

49. Liabilities Continued • You may add as many liabilities as you choose by opening the appropriate set and entering the related data. If data Is already in that set, or if the set is ref, just click the New tab.

50. Life Insurance • When entering life policies, just enter the face value, cash value (remember to grow it if applicable), the premium (if applicable) and the characteristics. • With the Characteristics, enter owner (ILIT is an option), the insured and the beneficiary. Enter ONLY one beneficiary unless the benefit is to be split between two people. • Also, if this is a term policy, remember to end the face value and premium at the point it which the policy ends.