Information Gathering Interview

1. Information Gathering Interview

2. Introduction • Founder • Co-Founder • Basis of Philosophies/Systems • Task of Fulfillment • Present Day Goals “Our advisors should be free to pursue their natural duty, which is tending to the needs of the client” -Kenneth G. Gulliver-Founder

3. mission “Our mission is to: Provide a client experience that far exceeds expectation” Kenneth G. Gulliver- Founder

4. What set’s us apart • Client Management Systems • Financial Planning Software • Proprietary Investment Strategies

5. Pieces of the puzzle • Who is advising you? • What are your true fees? • How are your assets managed? • A typical experience • Financial Variance Testing • Who’s hands are you in?

6. Who is advising you? • Who is Retirement Depot™? • Our fiduciary obligation • Not all advisors are fiduciaries • Who Retirement Depot™ is not 63% of investors think that brokers are legally required to act in the best interest of the client. 70% believe that brokers must disclose any conflicts of interest. -The Wall Street Journal

7. What are your true fees? • Everyone has the right to make a living • What are you getting in return? • “Hidden fees in the 401k” • Effect of 1% additional fees “…Its estimated that the average 401k has fees upwards of 3%...” -Bloomberg-“The Hidden Fees in the 401k. February, 2008

8. Common Fund classes 106% Turnover Management Fees 0.46% 12b-1 Fees 1.00% Gross Expense Ratio 1.68%

9. Common Fund classes Class “A” 5.75% Front 0% Back 0.25% 12b-1 Class ”B” Contingent Graded 1.0% 12b-1 Class “C” “No-load” 0% Back 1.0% 12b-1

10. turnover • Transaction fees • Taxes • Economies of scale “…100% turnover would cause a drag in performance conservatively equal to 1.2% of the fund assets.” -John Bogle

11. Transaction fees • Everyone transacts thru a clearing firm • Fees vary on security type

12. taxes • Can I really lose money, yet still pay taxes? • Fund has 30% gain by December 1st • You invest on December 1st • You lose (10%) ending the year • Fund still gained 20% for the year • You still share in gains

13. Economies of scale • Why do we shop at Costco? • Purchasing power begets savings • Do fund managers get pricing breaks? • Economics 101 • Why use fund managers at all?

14. How are your assets managed? Value of Indexing Value of Active Management Research Anticipation of Trends Active Share Viewpoints, The value of active management, 4-2011-The Capital Group Companies • Cost • Diversification • Tax Advantages The case for indexing, 2-2011- The Vanguard Group

15. How are your assets managed? Percentage of managers outperforming market during bull and bear cycles Top quartile active manager excess return before fees

16. How are your assets managed?

17. The critical element • Most dangerous part of Mt. Everest • Retiring is a game changer • Chasing return is replaced by careful consideration • Performance has many dimensions

18. A typical experience • Your current allocation • Risk tolerance questionnaire • Recommended allocation • “…Past performance is no guarantee…” • Typical Proposition • “Control what you can, manage what you cant”

19. Financial variance testing • What if? • What if? • What if?

20. Liquid asset priority • CD’s • Mutual Funds • Stocks • Bonds • Variable Annuities • Fixed Annuities • Roth IRA’s • Traditional IRA’s TaXES Rate of return fees

21. Liquid asset priority Client “A” Client “B” For: Mr. Sample, Age 65 & Mrs. Sample, Age 65 Liquid Assets (Taxable Interest) $475,000 Liquid Assets (Tax Exempt Interest) $175,000 Equity Assets $200,000 Tax Deferred Assets $350,000 Pension Assets for Mr. Sample $150,000 Pension Assets for Mrs. Sample $150,000 Total Liquid Assets $1,500,000 Income Tax Rates 25.00% CD’s 4.00% Mutual Funds 8.00% Roth IRA 8.00% Muni Bonds 4.00% Brokerage Account: Growth Rate 5.00% Dividend Rate 3.00% Variable Annuity 8.00% Fixed Annuity 5.00% Pension Assets Mr. Sample 7.00% Pension Assets Mrs. Sample 7.00% After Tax Spendable Cash Flow Require $60,000 Inflation Rate 3.00% For: Mr. Sample, Age 65 & Mrs. Sample, Age 65 Liquid Assets (Taxable Interest) $475,000 Liquid Assets (Tax Exempt Interest) $175,000 Equity Assets $200,000 Tax Deferred Assets $350,000 Pension Assets for Mr. Sample $150,000 Pension Assets for Mrs. Sample $150,000 Total Liquid Assets $1,500,000 Income Tax Rates 25.00% CD’s 4.00% Mutual Funds 8.00% Roth IRA 8.00% Muni Bonds 4.00% Brokerage Account: Growth Rate 5.00% Dividend Rate 3.00% Variable Annuity 8.00% Fixed Annuity 5.00% Pension Assets Mr. Sample 7.00% Pension Assets Mrs. Sample 7.00% After Tax Spendable Cash Flow Require $60,000 Inflation Rate 3.00%

22. Liquid asset priority Client “A” Client “B” Shortfall at: age 89 Added Value of: $764,000

23. Who’s hands are you in? Your Interests Advisor’s Interests Marketing Sales Continuing Education Compliance Other Clients • Financial Planning • Portfolio Management • Financial Questions • Concerns • Communication

24. Your retirement depot™ team • Senior Advisor • Investment Advisor • Client Service Representative • Receptionist • Marketing Director • Special Teams • Outsourced Teams

25. How we work together • Client Acquisition • Portfolio and Planning Process • Client Maintenance

26. fees • Hourly • Flat fee • Percentage of AUM • The favored option

27. What’s next? • Complete “Pre-Client” plan • Identify shortfalls • Copy/ re-title “Plan Recommends” • Test multiple iterations • Identify most optimal direction • Recommends meeting • Plan implementation • Work Authorization to start!

28. Thank you!