INVESTING INYOUR FUTURE

Financial Network Investment Corporation Member SIPC

Edward I. Rosenblatt 1920 Main St., Ste. 800 (888) 353-3642 Irvine, CA 92614

Edward Rosenblatt Ph.D., AAMS, CMFC

Investment Professional

Edward Rosenblatt, Ph.D., AAMS, CMFC

Investment Professional

Professional financial advisor since 1995

Accredited Asset Management Specialist

Certified Mutual Fund Counselor

Specializes in 401k/403b Savings Plan Rollovers

Former aerospace systems engineer

Ph.D. in astrophysics from UCLA

Focuses on aerospace employees and retirees

Long time speaker at Boeing & Aerospace Corp

Financial Network Investment Corporation Member SIPC

One of the largest independent brokerage

firms in the US with over 2000 advisors

Registered Investment Advisory Firm

Nationwide financial organization

Branch offices throughout the U.S.

Headquarters support staff . . . . 300+

Assets Under Management . . . . $40B+

Full Service brokerage firm

Visit our Website at www.financialnetwork.com

Financial NetworkOur Irvine Branch Office

Pershing Highlights

Pershing acts as a holding firm for Financial Network as a completely separate and independent company

Holds client investments and produces account statements

Pershing is a subsidiary of Bank of New York Mellon

Largest custodial firm in the U.S.; Founded in 1939

Responsible for 10% of daily transactions on NYSE;provides you with benefits of large volume trading

Visit their Website at www.pershing.com

Financial Workshop Four Key Topics

History of Stocks and Bonds

Portfolio Asset Allocation

Retirement Planning

Estate Planning

Performance of Various Types of Investments: 1925 - 2011

$100,000,000

$10,000

$100,000

$1,000,000

$10,000,000

$126,700,000

$30,100,000

$833,000

$207,000

$121,000

Historically, stocks have experienced higher grow potential than bonds in the long term, but bonds in general have had lower risk than stocks. It is not possible to invest directly in an unmanaged index. Past performance is not a guarantee of future results (source: Ibbottson Associates).

05 2010

Typical Investor BehaviorInvestors Tend to Buy and Sell at the Wrong Time

Euphoria/Buy High

Panic/Sell Low

Nervous

Concern

Confident

Relief

Nervous

Euphoria/Buy High

Concern

Confident

Bull/Bear Market Cycle

During a crisis, wealth transfers from the fearful

to the cool-headed investor

Dynamic AllocationAdjusting the Stock-to-Bond Ratio During a Bull/Bear Cycle

Hypothetical Stock Market Chart

Buy

Sell

Bear Bear BearBull Bull

40:60

50:50

60:40

70:30

60:40

50:50

40:60

30:7040:60

30:70

40:60

50:5060:40

70:30

60:40

50:50

40:60

30:70

40:60

Asset AllocationA Nobel Prize Winning Strategy

Divide a Window into Window Panes

GNMA U.S. Gov’t High Grade

Bonds Bonds Corp Bonds

Int’l Mid Cap Small Cap

Equity Equity Equity

Large Cap Large Cap Large Cap

Growth Blend Value

Asset allocation is driven by complex mathematical models that should not be confused with the

simpler concept of diversification. Asset allocation may help to lower risk, but does not eliminate

risk nor assure a favorable outcome.

Putting Risk Into PerspectiveFinding Your Personal Comfort Zone

Stable Value

An individual stock is in general riskier than the most aggressive mutual fund

Low Risk Medium Risk

Bond Fund

Small/Mid Value

High Risk

Balanced Fund

Large Cap Value Fund

Large Cap Growth

S&P 500

Large Cap Core

Int’l Index

Russell 2000

Small/Mid Growth

Large Co Int’l Fund

Sci & Tech Fund

Company Stock

GlobalBond

Boeing Savings PlanGeneral Investment Recommendations

Bond Index Fund 20% 30% 40% 50%

S&P 500 Index Fund 45% 40% 35% 30%

Small/Mid Co Fund 15% 10% 10% 10%

International Index 20% 20% 15% 10%

Stock-to-Bond Ratio 80:20 70:30 60:40 50:50

Boeing Stock can replace part of the S&P 500, but not more than a 10% allocation is recommended. The

S&P 500 Index is an unmanaged portfolio of the common stocks of 500 large-capitalization US

companies. It is not possible to invest directly in an index. VIP Stable Value can replace part or all of the

Bond Index for relatively short time periods, but is not recommended as a long term investment due to its

low yield. A 5% allocation in the Global Bond Fund would be acceptable (offsetting the allocation to the

Bond Index Fund by 5%), and a 5% allocation in the Diversified Real Asset Fund would also be

acceptable (offsetting the allocation to the S&P 500 Index Fund by 5%). Past performance is not a

guarantee of future results. The table above shows general investment recommendations that should not be

construed as individual investment advice.

Most Common IRA and 401k Mistakes

1. Investing based on emotions

2. Focused on short term results

3. Lack of diversification

4. Overly conservative or aggressive

5. Market timing

6. Not contributing enough

7. Specify Trust as benef to IRA/401k

Investment Mistakes Can Be Costly

The average stock fund return represents the average for all domestic stock funds from 1989 to 2009 as computed by Lipper Analytical Services. The average stock fund investor results were taken from a study by DALBAR. The study measures the effects of a large survey of investors who did not seek professional investment advice and includes their decisions to buy, sell, and switch into and out of mutual funds from 1989 to 2009. Transaction costs were included in the study, although taxes were not.

Average Stock Mutual Fund

Average Stock Fund Investor

$185,000

$485,000An 8.2%

average rate of return

A 3.1% average rate

of return

Growth of $100,000

Jan. 1989 to Dec. 2009

$300,000InvestorMistake

Gap

Sources of Retirement Income Are you on the right track for retirement?

Pension SocialSecurity

401k IRA

Misc.

Retirement Income

Retirement income must endure for your entire retired life and beat inflation

Will You Outlive Your Retirement Nestegg?

Example: Mr. and Mrs. Smith

Goal: retire at age 62 with a budget of $90,000 per year pre-tax, 3% annual increases for inflation, and do not deplete

retirement savings to age 90

Current Ages: 58 yrs

Retirement Ages: 62 yrs

Pre-Retirement Savings: $500,000 (at age 58)

Retirement Savings: $760,000 (at age 62)

Pre-Retirement Contributions: $30,000/yr combined

Pension: $40,000/yr combined

Social Security: $30,000/yr combinedHypothetical example. Actual results will vary based on individual needs. Past performance is not a guarantee of future results. Does not include charges, fees, or expenses associated with some investments. Does not include federal, state, or local taxes which, if applied, can affect investment value.

Will You Outlive Your Retirement Nestegg?

Results: Mr. and Mrs. Smith

Minimum Required RoR: 7.1% on average

Required Stock-to-Bond Ratio: 60-40

Portfolio Type: Moderate Growth & Income

If RoR is only 6% then savings depleted by 86

If RoR is only 5% then savings depleted by 83

If RoR is only 4% then savings depleted by 79

Hypothetical example. Actual results will vary based on individual needs. Past performance is not a guarantee of future results. Does not include charges, fees, or expenses associated with some investments. Does not include federal, state, or local taxes which, if applied, can affect investment value.

Will You be Ready for Retirement?The best time to check if you will be financially ready for retirement is:

One month before retiring

One year before retiring

Three years before retiring

Five years before retiring

Ten years before retiring

The Stretch IRAYour Heirs May Avoid Losing 50% to Income Taxes

Retirement Savings Plan

Rollover

IRA

IRA IRAIRA

Roll if >59 ½ or Change of Employer

No Taxes, No Penalties to Rollover

Contributions continue uninterrupted

Stretch IRA allows tax-deferred growth & lifetime income stream

This refers to employer sponsored retirement plans such as a 401(k) or 403(b)

Selecting a Financial AdvisorNot All Financial Advisors are Created Equal

Minimum 5 years experience

Strong financial credentials

Fee-based vs Commission-based

Full disclosure of all fees and charges upfront and in writing

Investments should be liquid to meet client’s needs

Should provide high quality on-going services

Should fully understand your financial needs and goals

Retirement Savings Plan Financial Services Program

Customized portfolio design

Retirement Planning one-on-one consultation

On-going investment advice on demand

On-going advice on dynamic allocation

Direct access to an experienced advisor

Flat $150 quarterly fee

Complete suite of financial services tohelp you meet your

financial goals

Preferred Asset Management Financial Services

Mutual Fund and Stock Research

RegularPortfolioReview

EstatePlanning

Active PortfolioManagement

PortfolioReallocation

Pershing charges nominal transaction fees on stocks, bonds, and mutual funds. Professional money management might not be suitable for all investors. Since no one investment program is suitable for all types of investors, this information is provided for informational purposes only. Your investment objectives, risk tolerance, and liquidity needs must be reviewed before suitable recommendations can be made. Please read Financial Network Investment Corporation’s ADV Part 2, which describes the advisory program, charges, fees and expenses.

Performance Reporting

Retirement Planning

On-goingConsultations

Preferred Asset Management Advisor minimum account $100,000 ($25,000 minimum for PAM program)

Low annual advisory fee covers all services*(1.75% for < $250k, 1.50% for $250k to $500k, 1.25% for $500k to $1M, 1.00% for >$1M)

Advisory fee can be tax deductible (consult your tax advisor)

No loads charged on any funds in PAM program* No commissions or up-front sales charges* No sales quotas or sales incentives

Over 6000 funds available from over 300 major fund families

Stocks and bonds can be included without commissions*

Incentive is to grow the account assets since advisory fee is based on account balance only; instills team approach

* Pershing charges nominal transaction fees on stocks, bonds, and mutual funds. Professional money management might not be suitable for all investors. Since no one investment program is suitable for all types of investors, this information is provided for informational purposes only. Your investment objectives, risk tolerance, and liquidity needs must be reviewed before suitable recommendations can be made. Please read Financial Network Investment Corporation’s ADV Part 2, which describes the advisory program, charges, fees and expenses.

Preferred Asset Management

You may transfer out of the PAM program at any time(an early terminate administration fee of $200 applies within the first 12 months)

Assets may be consolidated together from similar accounts

Account viewing 24 hr/day updated every business day

Personalized face-to-face consultations and on-going advice

You receive a monthly brokerage statement, monthly email update, detailed quarterly performance report, and quarterly newsletterInvestors should consider the investment objectives, risks and charges and expenses of a fund carefully before investing. The prospectus contains this and other information about the fund. Contact Edward Rosenblatt at 1920 Main St., Ste. 800, Irvine, CA 92614 (888) 353-3642 to obtain a prospectus which should be read carefully before investing or sending money.