Honkamp Krueger Financial Services, Inc.

1. Honkamp Krueger Financial Services, Inc. Your Premier Executive Counseling Services Partner The Importance of Planning for a Lifetime…

2. Agenda • How to Become a Millionaire? • Establish Financial Goals by Incorporating Smart • Tax Planning • Investment Planning • Retirement Planning • Insurance Planning • Monitoring Your Financial Plan’s Progress Regularly

3. RENEWALS INVESTMENTS RETIREMENT How do I get there? 3 Types of Income • Renewals • Investments • Retirement RENEWALS $1 million = INVESTMENTS RETIREMENT

4. Tax Planning • Income Type • Taxes • Qualified Expenses • Vehicle • Travel • Lodging • Meals & entertainment • Office space

5. Investment Planning • Prioritize Your Financial Goals • Emergency fund • Build savings & investments • Buy house • Accumulate college fund • Invest for retirement • Save and invest into luxury items after all the above

6. Types of Investments • Cash alternatives • Stocks • Bonds • Alternative investments • Precious Metals, Real Estate, Commodities etc. • Mutual Funds

7. Potential Return Cash Alternatives Risk Cash Alternatives • Low risk • Short term • Relatively liquid • Examples • Certificates of Deposit (CDs) • Money Market • U.S. Treasury Bills (T-Bills) Disadvantages Low Returns May not keep up with inflation Advantages Predictable earnings Highly liquid Little risk

8. Bonds • Loans to a government or corporation • Interest typically paid at regular intervals • Taxable or Tax Free • Examples • US government securities • Agency bonds • Municipal bonds • Corporate bonds Potential Return Bonds Advantages Steady & predictable Relatively lower-risk Low correlation to stock market Disadvantages Risk of default Value of bond fluctuate with interest rates Lower potential returns Cash Alternatives Risk

9. Stocks • Shares of stock represent an ownership position in a business • Various type of stocks • Small to Large • United States to Foreign/International • Invest for the long term • Expect volatility (fairly large swings in annual performance) Potential Return Stocks Bonds Disadvantages Company performance affects value of shares Subject to market volatility Greater risk to principal Advantages Highest long-term returns Ownership rights Easy to buy & sell Cash Alternatives Risk

10. Mutual Funds • One of the best ways to start out by investing your money to satisfy medium to longer term investment objectives. • Money pooled with that of other investors with similar investment objectives • There is a mutual fund that is right for your investment objective International funds Potential Return Stock funds Balanced funds Bonds funds Advantages Diversification Professional management Small investment amounts Liquidity Disadvantages Share value fluctuates daily Potential tax inefficiency Fees & expenses Money market funds Risk

11. Alternative Investments Low Risk Real Estate Stock Options Higher Risk Futures and Commodities Collectibles High Risk

12. Retirement Planning • Start Now • Don’t put off planning and investing for retirement • The sooner you start, the longer your investments have to grow • Playing “catch-up” later can be difficult and expensive

13. Put Time & Money on Your Side Beginning at age 25 Beginning at age 35 Beginning at age 45 Value at age 55 by Investing $1,000/month or $12,000 saved each year at a 7% annual rate of return $1,225,000 $525,000 175,000 This is a hypothetical example and is not intended to reflect the actual performance of any specific investment, nor is it an estimate or guarantee of future value.

14. Tax-Advantaged Savings Vehicles • Tax deferral can help your money grow • Take full advantage of the various retirement plans that are available to you • Contribute to a Traditional or Roth IRA • Establish an appropriate plan

15. Traditional IRA vs. Roth IRA

16. Single 401k Plans • Defer up to $16,500 of compensation/“catch-up” provisions available for 50+ • Can make additional contributions • Investments grow tax deferred • Distributions made prior to age 59 ½ are subject to additional 10% premature distribution tax

17. 93%1 of Americans say that life insurance is something most people need 41%1 Own an individual purchased policy Insurance Planning Protect Your Family and Your Most Valuable Asset (your ability to earn an income) 1 LIFE Foundation and Kelton Research, 2008 2 LIMRA International, Trends in Life Insurance Ownership, 2005

18. Types of Insurance

19. Term Insurance Term insurance provides protection for a specific period of time and generally pays a benefit only if death occurs during the “term.” Term periods typically range from one year to 30 years, with 20 years being the most common term.

20. Key Features of Term Insurance • Convertibility to a Permanent Policy • Without evidence of insurability • Coverage needed for a longer period • Return of Premium • Refund of premium made over the term period • Premium is considerably higher (20-30%) • Accelerated Death Benefit • Allows a terminally ill person to collect a significant portion of the death benefit while still alive • Disability Waiver of Premium

21. Features Unique to Permanent Insurance • Access to cash • Flexibility • Tax advantages • Guaranteed coverage • Stable premiums

22. Types of Permanent Insurance • Whole Life • Provides a guaranteed amount of death benefit and a guaranteed rate of return on cash values. • Dividends • Universal Life • Adjustable premiums • Cash values grow at the current crediting rate. The crediting rate, as well as, cost of insurance is subject to change over the life of the policy. • Secondary Guarantees “No-Lapse Guarantee” • Variable Universal Life • Allows to have premium dollars allocated to a variety of investment options.

23. Disability Insurance The chances of a disability occurring are much greater than most Americans realize Sources: America’s Health Insurance Plans, National Association of Insurance Commissioners, U.S. Commerce Department

24. Disability Insurance Ask most people to think about their most valuable asset, and they'll mention their home, their car, their jewelry, or other possessions. But for most of us, our most valuable possession isn't anything of those things. It's our ability to earn a living. And just as you would insure your car, your home, and other valuable possessions, you need to insure yourself in case you are no longer able to work. That's what disability insurance does. It provides a source of replacement income if you're unable to work due to an illness or accident. For many, a sudden interruption of income could have serious financial consequences. Most of us have some kind of personal debt, typically a mortgage or credit card bills. Would you be able to maintain your standard of living if you were too ill or injured to work for an extended length of time? Half of all home foreclosures in the United States result from disability as do an alarming number of personal bankruptcies. Simply put, if you have a job you likely need disability insurance.The other thing to keep in mind is that an accident or illness that keeps you out of work for a period of time can be very costly. That's because people who become disabled not only need to continue providing for loved ones, but for themselves as well. A disabling injury or illness could lead to medical bills, modifications to your car or home, or other unforeseen needs that can be quite expensive. For all these reasons, almost anyone who works – whether they're single, married, with children or without – should consider disability insurance.

25. Benefit level & period Elimination period Definition of disability Extent of disability Residual benefit Guaranteed renewable Non-cancelable Inflation protection Key Terms When considering disability insurance needs, be familiar with the following:

26. Other Financial Planning Considerations • Mortgage Refinancing • Payoff debt or invest for my future • College Funding Strategies • Wills • Trusts

27. HKFS’ Commitment to Platinum Services: Complete Financial Planning Services Risk Management Investment Planning Estate Planning HK & HKFS Retirement Planning Tax Planning

28. Thank you 2355 JFK Road, Dubuque, IA 52002 563.582.2855 or 800.791.8994 www.hkfs.com