HOW MUCH IS ENOUGH?? - Harvard Medical SchoolHOW MUCH IS ENOUGH FOR US? • Are you investing properly for the future? • Do you have low cost, no load funds? • Do you know what

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Strategies for accumulating wealth,minimizing taxes, planning for retirement

and your legacy

HOW MUCH IS ENOUGH??

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HOW MUCH IS ENOUGH?

STRATEGIES

How Much Is Enough For Us?

Needs

Goals

Dreams

How Much ToCharity?

How Much ToChildren?

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HOW MUCH IS ENOUGH FOR US?

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• How Much Do You Need Today??

– What does your current lifestyle cost?

• How Much Do You Need for the Future??

– Do you have enough assets and income to maintain financial

independence?

• Are you prepared for inflation?

• Will you outlive your assets?

• Are there additional short/long term needs?

– Care for parents, handicapped child or grandchild

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• Prepare For Inflation

– Inflation erodes purchasing power over time:

2.2% annual inflation over 10 years turns $100 into $80.

– Rising inflation is historically a drag on stock and bondreturns.

– This makes diversifying beyond traditional asset classesmore important.


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• How much do you earn and save?

• Are you spending less than you earn?

• How much will Social Security or pensions provide?

• How to determine if you have enough?

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• What Other Financial Goals Would You Like to Achieve?

• Education for children or grandchildren

• Additional residences

• Travel

• Charitable giving

• If you had total freedom to do anything, what would that

be?

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• Are you investing properly for the future?

• Do you have low cost, no load funds?

• Do you know what you pay in fees?

• Is your portfolio tax efficient?

– Are you paying unnecessary taxes?

• Is your portfolio diversified?

• What other services are provided?

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HISTORICAL RETURNS CHART

10 Years95.7%40.7%

15 Years164.3%141.0%

Cumulative Returns:S&P 500Balanced Portfolio

Data is from Envestnet Tamarac, Hedge Fund Research, Morningstar, and Federal Reserve Economic Data. Sharpe ratioutilizes a 3.35% risk-free rate derived from the average annual 10-yearTreasury rate over 15 years. The informationpresented represents the performance of various indexes. Does not represent actual investment performance.

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 15 Yr StandardDeviation

Sharpe Ratio

DJ UBSCommodity

25.9%

MSCI EM55.8%

Wilshire USREIT

33.2%

MSCI EM34.0%

Wilshire USREIT

36.0%

MSCI EM39.4%

HFRI SystemDiv

18.1%

MSCI EM78.5%

Wilshire USREIT

28.6%

BarclaysMunicipals

10.7%

MSCI EM18.2%

Russell 200038.8%

Wilshire USREIT

31.8%

Wilshire USREIT4.2%

Russell 200021.3%

Wilshire USREIT

10.8%

MSCI EM32.5%

Wilshire USREIT0.35

LB ITGvt/Credit

9.8%

Russell 200047.3%

MSCI EM25.6%

DJ UBSCommodity

21.4%

MSCI EM32.1%

DJ UBSCommodity

16.2%

Barclays ITGvt/Credit

5.1%

MSCI EAFE31.8%

Russell 200026.9%

Wilshire USREIT9.2%

Wilshire USREIT17.6%

S&P 50032.4%

S&P 50013.7%

BarclaysMunicipals

3.3%

S&P 50012.0%

MSCI EM9.5%

MSCI EAFE21.1%

BarclaysMunicipals

0.30

LBMunicipals

9.6%

MSCI EAFE38.6%

MSCI EAFE20.2%

HFRI SystemDiv

14.4%

MSCI EAFE26.3%

MSCI EAFE11.2%

U.S. 30 DayTBill1.6%

Wilshire USREIT

28.6%

MSCI EM18.9%


5.8%

MSCI EAFE17.3%

MSCI EAFE22.8%

HFRI SystemDiv

10.7%

S&P 5001.4%

BloombergCommodity

11.8%

Russell 20008.5%

Russell 200021.6%


0.28

Wilshire USREIT3.6%

Wilshire USREIT

36.2%

Russell 200018.3%

Wilshire USREIT

13.8%

Russell 200018.4%

HFRI SystemDiv

10.3%

U.S. Inflation0.0%

Russell 200027.2%

DJ UBSCommodity

16.8%

U.S. Inflation3.0%

Russell 200016.3%

HFRI FoFComposite

9.0%

BarclaysMunicipals

9.1%


1.1%

MSCI EM11.2%

S&P 5006.7%

Wilshire USREIT

21.3%

HFRI SystemDiv0.26

U.S. Inflation2.5%

S&P 50028.7%

BalancedPortfolio

11.9%

MSCI EAFE13.5%

HFRI SystemDiv

16.8%

HFRI FoFComposite

10.3%

BarclaysMunicipals

-2.5%

S&P 50026.5%

S&P 50015.1%

S&P 5002.1%

S&P 50016.0%

BalancedPortfolio

7.5%

Russell 20004.9%

U.S. Inflation0.7%

Wilshire USREIT7.2%

BalancedPortfolio

6.0%

BloombergCommodity

19.1%

BalancedPortfolio

0.25


DJ UBSCommodity

23.9%

S&P 50010.9%

BalancedPortfolio

10.5%

S&P 50015.8%

BalancedPortfolio

7.8%

BalancedPortfolio-20.1%

BalancedPortfolio20.2%

BalancedPortfolio

11.6%

U.S. 30 DayTBill

0.0%

BalancedPortfolio

8.3%

Wilshire USREIT1.9%

BalancedPortfolio

4.4%

U.S. 30 DayTBill

0.0%

BalancedPortfolio

5.7%

HFRI SystemDiv

5.5%

S&P 50018.2%

Russell 20000.24

HFRI FoFComposite

1.0%

BalancedPortfolio

22.5%

DJ UBSCommodity

9.1%

HFRI FoFComposite

7.5%

BalancedPortfolio

14.5%

LB ITGvt/Credit

7.4%

HFRI FoFComposite

-21.4%

DJ UBSCommodity

18.9%

HFRI SystemDiv

9.8%

BalancedPortfolio

-2.2%

BarclaysMunicipals

6.8%

U.S. Inflation1.5%

HFRI FoFComposite

3.4%

HFRI FoFComposite

-0.3%


2.1%

MSCI EAFE5.3%

BalancedPortfolio

10.4%

MSCI EM0.19

BalancedPortfolio

-1.2%

HFRI SystemDiv

15.4%

HFRI FoFComposite

6.9%

S&P 5004.9%

HFRI FoFComposite

10.4%

S&P 5005.5%

Russell 2000-33.8%

BarclaysMunicipals

12.9%

MSCI EAFE7.8%

HFRI SystemDiv

-3.5%

HFRI FoFComposite

4.8%

U.S. 30 DayTBill

0.0%


3.1%

MSCI EAFE-0.8%

U.S. Inflation2.1%

BarclaysMunicipals

4.7%

HFRI FoFComposite

8.5%

S&P 5000.18

HFRI SystemDiv

-3.3%

HFRI FoFComposite

11.6%

HFRI SystemDiv

6.4%

Russell 20004.6%

LBMunicipals

4.8%


DJ UBSCommodity

-35.6%

HFRI FoFComposite

11.5%


5.9%

Russell 2000-4.2%


3.9%


-0.9%

U.S. Inflation0.7%

HFRI SystemDiv

-2.3%

MSCI EAFE1.0%


4.1%

HFRI SystemDiv

8.2%

MSCI EAFE0.09

MSCI EM-6.2%

LBMunicipals

5.3%

LBMunicipals

4.5%

LBMunicipals

3.5%


U.S. Inflation4.1%

S&P 500-37.0%


5.2%

HFRI FoFComposite

5.7%

HFRI FoFComposite

-5.7%

U.S. Inflation1.8%

HFRI SystemDiv

-0.9%

U.S. 30 DayTBill

0.0%

BalancedPortfolio

-3.1%

HFRI FoFComposite

0.7%

HFRI FoFComposite

3.3%

BarclaysMunicipals

4.5%

HFRI FoFComposite

-0.01

MSCI EAFE-15.9%

LB ITGvt/Credit

4.3%

U.S. Inflation3.3%

U.S. Inflation3.3%

LB ITGvt/Credit

4.1%

LB Municipals3.4%

Wilshire USREIT

-39.2%

U.S. Inflation2.8%

BarclaysMunicipals

2.4%

MSCI EAFE-12.1%


MSCI EM-2.6%

MSCI EM-2.2%

Russell 2000-4.4%

BarclaysMunicipals

0.3%

U.S. Inflation2.1%


2.7%

BloombergCommodity

-0.11

Russell 2000-20.5%

U.S. Inflation2.0%

LB ITGvt/Credit

3.0%

U.S. 30 DayTBill3%

U.S. Inflation2.5%

Russell 2000-1.6%

MSCI EAFE-43.4%


U.S. Inflation1.4%

DJ UBSCommodity

-13.3%

DJ UBSCommodity

-1.1%

BarclaysMunicipals

-2.6%

MSCI EAFE-4.9%

MSCI EM-14.9%


BloombergCommodity

1.2%


U.S. Inflation-1.14

S&P 500-22.1%



LB ITGvt/Credit

1.6%

DJ UBSCommodity

2.1%

Wilshire USREIT

-17.6%

MSCI EM-53.3%

HFRI SystemDiv

-1.7%


MSCI EM-18.4%

HFRI SystemDiv

-2.5%

DJ UBSCommodity

-9.5%

BloombergCommodity

-17.0%

BloombergCommodity

-24.7%

HFRI SystemDiv

-1.3%


U.S. Inflation1.1%

U.S. 30 DayTBill-1.26

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 15 Yr Std Dev Sharpe

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Get Invested, Stay Invested: Facts about Market Volatility

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• Municipal Bonds

• Broad Market Stock Index

Funds or ETFs

• Tax Managed Funds

• Individual Stocks (long-

term)

Tax Deferred

• Taxable Bonds or Bond Funds

• Actively Managed Funds

• REITs

• Commodities, gold and silver

ETFs

• Individual stocks (short term)

INVESTING

Location, Location, Location

Taxable Accounts

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EXAMPLES OF TAX DEFERRED RETIREMENT ACCOUNTS

• IRA

– Traditional or Roth

– SEP and SIMPLE

• 403(b) Plan

• 457(b) Deferred Comp

• Annuities

• Qualified Plans

– Defined Benefit Plan

– Profit Sharing

– Money Purchase

– ESOP

– 401(k) Traditional/Roth

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MEDICARE AND MAGI

• MAGI greater than $170,000

– Higher premiums for Medicare Part B and Part D

– Five income tiers

– Part B Premiums

• $134/month vs. $429/month– High Income couple could pay more than $10,000/year in additional

premiums

– Important to reduce taxable income in retirement

» Roth, Qualified Charitable Distributions, Charitable Gift Annuity

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HOW MUCH TO CHILDREN?

• Do you feel each child should receive an equal share?

– “fair is not always equal, and equal is not always fair”

• What if you leave them little or no money?

• How is an inheritance going to affect your child’s marriage

or future marriage?

• What is your child’s work ethic?

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• Do you think your children are likely to be less productive

if they are left significant money?

• Are you concerned that they (children, grandchildren,

great grandchildren) may suffer from a loss of self worth

or lack of respect from others?

• Should you leave money in trust for them?

• What strings (advice, criticism) are you going to apply to

how they spend the money?

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Current Estate and Gift Tax Rules:

• Annual gift amount of $14,000 per person.

• Unlimited amounts directly paid for tuition and medical.

• $5,490,000 Federal exemption per person; spousalportability.

• 40% Estate Tax rate above that.

• Unlimited amounts can be left to a spouse or charity.

• Generation-skipping Tax is an additional 40% tax.

• Step-up (or down) in cost basis for assets in the estate,EXCEPT for tax-deferred accounts (e.g. IRAs, annuities)

• Don’t forget state estate and inheritance taxes.

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Estate Tax Planning Strategies

• Lifetime gifts – annual exclusion; GRATs; grantor trusts;

spousal access trusts; 529 plans

• Life Insurance Trust

• Discounts on business entities and partial interests in real

estate

• IRA conversion to Roth IRA

• Don’t forget state estate and inheritance taxes.

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HOW MUCH TO CHARITY?

• Do you have charitable goals during your lifetime or after

your death?

• Are there particular causes you care about and how do

you want to impact them?

• Education, environment, health care, children,

hunger?

• What institutions have been most important in your life?

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HOW MUCH TO CHARITY?

• Would you like to establish an endowed scholarship or

endowed family gift in your name or a loved one?

• Do you want your children to be involved in the decision

making process?

• What goals do you have for future generations and their

charitable giving?

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QUALIFIED CHARITABLE DISTRIBUTION

• Donor—must be over 70 ½ at time of transfer

– Make tax free transfer to charity from IRA

• Up to $100,000/year

• Must be direct transfer from donor to public charity

– Traditional or inherited IRA

– Not eligible for income tax deduction

– Counts toward donor’s RMD

– Lowers Federal and state taxable income and couldhave Medicare premium implications

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CHARITABLE GIFT ANNUITY

• Contract between Donor and Qualified Charity

– Backed by general assets of the charity, so review theirfinancial strength.

– Funded with cash or appreciated stock

– Immediate income tax deduction on gift portion

– Fixed income stream with competitive rates of return

– Ability to defer payments

– A portion of each payment is tax-free

– Single or joint lifetime payments

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CHARITABLE GIFT ANNUITY

• Example 1

− Donor age 70 funds a CGA with $100,000 cash

− Charity pays 6% annually for life starting at 70

Results: $6,000 annual cash flow; $1,500 taxable income

$4,500 tax-free income; $31,000 tax deduction up front

• Example 2

– Two Donors age 75 fund a CGA with $100,000 cash

– Charity pays 7.5% annually for life starting at 80

Results: $7,500 annual cash flow; $1,600 taxable income

$5,900 tax-free income; $27,000 tax deduction up front

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CHARITABLE REMAINDER TRUST

• Irrevocable trust that pays you, or your family, income andleaves the rest to a designated charity (or charities).

– Fixed term not more than 20 years, or it can be for alifetime.

– Fixed Annuity or Unitrust (percentage) payout.

– The trust is tax-exempt, but income paid out is taxable.

– You get a charitable income tax deduction upfront basedon the payout.

– Income payout must be at least 5%.

– Terrific option for diversifying highly-appreciated stock.

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DONOR ADVISED FUNDS

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DAINTREE ADVISORS LLC

Daintree Advisors is a multi-family office and wealthmanagement firm. Our mission is to help clients “see theforest” so they can attain their goals.

Mary Shahian, CFP®, ChFC, CDFA™

Partner, Senior Client Advisor

617-848-3423

William Speciale, J.D., AEP®

Partner, Senior Client Advisor

617-848-3408

Documents

HOW MUCH IS ENOUGH?? - Harvard Medical SchoolHOW MUCH IS ENOUGH FOR US? • Are you investing properly for the future? • Do you have low cost, no load funds? • Do you know what