M O N I T O R A L L S I D E S O F Y O U R P L A N D U R I N G

P H A S E 4

A Letter from Tim VoorheesYou have seen firsthand how our wealth blueprinting process can reduce taxes dramatically,

increase wealth available for heirs, and provide one-stop planning. We have now enhanced our

services to provide even more value throughout each phase of the planning process.In Phase One, we clarify “what is.” We develop a thorough summary of your goals and current

financial plan in order to develop a Value Proposition Letter that shows how you can achieve

benefits far greater than costs when doing planning with us. See www.Phase1Benefits.com for

more details.

During Phase Two, we illustrate “what ought to be.” We believe we have the most clear,

comprehensive and cost-effective zero-tax planning process in the industry. My article at www.

Phase2Benefits.com explains how we integrate planning tools to reduce or eliminate taxes. In Phase Three, we coordinate with your attorney, CPA, investment adviser, insurance

professional, and other licensed professionals to implement the appropriate documents.During Phase Four, perhaps the most vital part of our planning, we produce a variety of reports

to evaluate your portfolios, insurance, tax returns, and other key documents. We show new

ideas to reduce your taxes, increase transfers to heirs, enhance retirement income potential,

maximize charitable giving, or achieve other important personal goals. We show that the

benefits are far greater than the costs during quarterly or annual meetings. This booklet shows the advantages of having us provide ongoing support as part of a cost-

effective Phase Four retainer. Our team affirms a compelling vision for you, unites your

planning team, clarifies your priorities, produces reports to document improvements in your

plan, and establishes clear next actions for the following quarter. Please feel free to call me at

(800) 447-7090 or email me at tim@vfos.com for more information. Best regards,

Tim Voorhees, JD, MBA

8105 Irvine Center Drive, Suite 780 Irvine, California 92618 Phone (800) 447-7090 Fax: (949) 878-9401Website: www.VFOS.com

Our process begins with your vision. We help you clarify how much capital you will need throughout your lifetime to realize your dreams. We help you calculate whether you should have extra funds for family and charity so that you can “do your giving while you’re living so you’re knowing where it’s going.”By translating your vision into realistic cash flow projections, we can analyze the best way to help you minimize taxes.

A F F I R M A C O M P E L L I N G V I S I O N

Lifestyle Business Investment

Wealth TransferRetirement Funding

Lif t l

R i F diR

CharityCh it

W lth T f

B i I

EducationEd ti

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2007

2010

2015

2020

2025

2030

2035

LifestyleBusiness InvestmentCharityEducationRetirement FundingWealth Transfer

We Quantify the Cash Flow and the Tax Saving Needed to Fund Your Vision

Affirm a Compelling Vision

W

Affirm a Compelling Vision

A F F I R M A C O M P E L L I N G V I S I O N

Our planners understand the tax planning, adviser coordination, and vision puzzles.

We address at least six sides of the tax puzzle, six sides of the adviser coordination puzzle, and six sides of your vision. We understand how a strategy to reduce one type of tax might result in higher taxes in other areas. The following pages explain how your advisers can use our wealth optimization process to solve the tax puzzle and direct more capital to yourself, your family, and your favorite charities.

Our Family Office Service staff understands that your planning team must proactively share new planning ideas with you. Even if you have a plan that looks good from some angles, problems can develop on other sides, much as when solving Rubik’s Cube. We know how to solve the planning puzzle while helping you maximize your cash flow and net worth tax efficiently.

We help you solve the three puzzles depicted above. We know how to unite your family members around a shared vision, unite your advisers around a shared plan, and in-tegrate your planning tools to minimize six types of taxes.

Affirm a Compelling Vision

We unite your advisers around a shared vision for tax-efficiency, helping you pursue your dreams and build your “castle in the sky.” As we illustrate how much cash you will have to fund your vision, we illustrate what after-tax cash flow is generated by each of your financial and legal tools. Cash flow illustrations are integrated in a Family Wealth Blueprint® with reports shown on the following pages of this brochure.

A F F I R M A C O M P E L L I N G V I S I O N

Because we have the most com-prehensive Family Wealth Blue-print® software and planning process available, we can develop the fully-integrated cash flow and tax strategies to clarify your lifetime income and the amounts of capital available for new business projects, gifts to children, transfers to favorite charities, or other investments that can help you realize your vision most tax-efficiently.

I“If you have built castles in the sky, your work need not be lost; that is where they should be. Now put the foundation under them.”

Henry David Thoreau

We have a proven process to uniteyour advisers around a Blueprint that can evolve to study the impact of all of your legal, financial, and tax strate-gies. We can update the plan daily at a secure website or quarterly in a printed format. We help you evalu-ate new planning opportunities that result from changing asset values, tax laws, goals, and cash flow needs. You can see the benefits and costs of all new strategies before revising your legal documents. You can maintain confidence that your plan achieves your goals.

U N I T E Y O U R P L A N N I N G T E A M

Phase 1

Phase 2

Phase 3

Phase 4

* Certain planning instruments are offered individually sothat you and your advisers may select, tailor and integratethose that are most appropriate.

1. Family Wealth Statement (Family Retreat)*

2. Financial Check-Up*

3. Value Proposition Letter*

4. Tactical Plan*

5. Comprehensive Wealth Blueprint*

6. Implementation Documents

7. Annual Updates

WWe help your planning team

see the benefits of completing all

4 phases of the planning process

Unite Your Planning Team

C L A R I F Y Y O U R P R I O R I T I E S

Clients on a Phase 4 retainer meet with us periodically to update a compelling statement of values. We review which of 200 services, 300 planning tools, and 400 wealth counseling books can best help you realize realistic and compelling priorities.

At the end of each Phase 4 meeting, our planners summarize ideas in writing. You will see how the benefits of moving forward with planning far exceed the costs of planning. We typically show how we can keep total planning and implementation costs less than 1% of tax savings.

We show you how to incorporate new ideas into your legal documents. Your planning team members will see new vistas that maximize the likelihood of your advisers working together to help you realize your goals.

Clarify Your Priorities

Monitoring your vision and your Family Wealth Blueprint requires that you examine a variety of reports on a regular basis. We help you review the most important reports each month.

D O C U M E N T I M P R O V E M E N T S

MaByrWme

Report 1 Summary of Tax Reduction PotentialReport 2 Lifetime BudgetsReport 3 Projected IncomeReport 4 Projected Asset BalanceReport 5 Projected Net WorthReport 6 Estate Tax ProjectionReport 7 Portfolio Efficient FrontierReport 8 Goals & Rebalancing ReportsReport 9 Risk Management SummaryReport 10 Portfolio Monte Carlo ReportsReport 11 Income and AMT Tax ProjectionReport 12 “How Much Is Enough” Pyramid

RReceive regular reports to

document how your plan

achieves your goals

Document Improvement

JOHN AND SUSAN SAMPLE

$ 27,000,000

INSURANCE

$ 2,500,000

MARITAL TRUST

$ 9,625,000

TAXES ANDEXPENSES

HEIRS

$ 15,196,800

SUSAN

$ 16,650,000

FAMILY TRUST

$ 675,000

Income Income

$ 50,000

TAXES ANDEXPENSES

$ 14,253,200

2nd estate

1st estate

D O C U M E N T I M P R O V E M E N T S

Samples of MonthlyReports

Document Improvement

CURRENT PLAN WEALTH CONTROL PLAN

WEALTH CONTROL PLAN SUMMARY

INCOME TAX DEDUCTIONS - $ 3,241,154

HEIRS RECEIVE IMMEDIATELY $ 11,631,060 $ 13,779,905

PV OF FUTURE BENEFITS TO HEIRS FROM CLATs - $ 5,871,017

FAMILY FOUNDATION - $ 13,126,168

ESTATE TAX $ 10,268,940 -

INCREASED INCOME TAX DEDUCTIONS $ 3,241,154

$ 8,019,863

$ 13,126,168

ESTATE TAX SAVINGS $ 10,268,940

INCREASED NET TO HEIRS

INCREASE TO FAMILY FOUNDATION

Comparison of BenefitsIf Death Occurs in Current Year

Infl

ows/

Out

flow

s ($

1000

s)

Total Inflows Total Outflows

400

1,600

600

1,400

800

1,200

1,000

2,000

1,800

200

0

2010

2015

2020

2025

2030

2035

2045

2050

2040

Ret

irem

ent

Inflows and Outflows

2,600,000

2,000,000

1,500,000

1,000,000

500,000

0

-500,000

-1,000,000

-1,500,000

-2,000,000

-2,500,000

-3,000,000

-3,600,000

2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041

Progress Toward Goal

Retirement Funding

Capital During Retirement

At retirement, you would like monthly, pre-tax Income of:

Total Capital Needed

Capital Value of Assets and Income

Beginning in 2015, at Freddie’s age 55

Investment Assets (includes contributions)

Today’s $

$ 10,000

Today’s $

$ 811,330

Inflation%

3%

Growth Rate

7.7%

INVESTMENT ANALYSIS

Future Value atRetirement

$ 13,048

$ 2,415,349

Future ValueCurrent

$ 1,254,372

CurrentProposed

MARCH

FEBRUARY

INVESTMENT ANALYSIS

https://www/iashost.com - Retirement Analysis for John and Mary Barnes - Microsoft Internet Explorer

Age To Retire

Goal/Inc. Needed Monthly

Savings Qualified

Savings Non-Qualified

Other Inc. at Retirement

Other Inc. # of Years

Growth Rate

Capitalized Need58

$ 13.000

$ 0

$ 0

$ 0

0

10.00%

49 70 90

0 19500 39000

0 6500 13000

0 6500 13000

0 6500 13000

0 16 32

0% 7.5% 15%

Surplus

Other Income

Qualified

Non-Qualified

Defined Benefits

Social Security

APRIL

STATEMENT OF NET WORTHCURRENT VALUES

Portfolios

Accounts in John and Mary’s Retirement Portfolio

Assets in Schwab – John Barnes IRA

Current NetValue

Return Target Tolerance AllocationName

Registration

Type Description Units G Value Liability Change Taxable G/L

Latest Close - - - 4ABK CSMIX KO CTL HES MVALX DSVA 86.200 50.100 45.220 0.960 38.970 38.300

Institution AccountNumber

IRS Qual Assets Liabilities CashBalance

John & Mary’sRetirement PortfolioBarnes Education

John Barnes IRA

Mary Barnes IRA

John and MaryBarnes JTWROS

John Barnes 401k

Security

Security

300.000000

714.286000

$ 25,320.00

$ 34,935.73

$ 0.00

$ 0.00

$ 252.00

$ 614.29

$ 5,370.00

$ 9,935.72

Ambac FinancialGroup Inc

Columbia Fds TrVI Small Cap

Schwab

SEI LargeCap Value

Pershing

Fiserv

468166153

648461112

1256789212

45679879

$ 714,879.30

$ 236,995.94

$ 117,830.84

$ 44,800.00

$ 0.00

$ 0.00

$

$

0.00

0.00

$ 0.00

$ 99.28

$

$

0.01

0.00

IRA –Simple

IRA –SimpleNon –qualified

401k

$ 1,114,605.37

$ 44,835.00

9.220%

7.000%

5.00%

10.00%

Outside Tolerance(10/05/2006)

Outside Tolerance

T

T

T

TO

T

TO

JUNEMAY

Taxes & Expenses (29.25%)Net To Heirs (70.75%)

Taxes & Expenses (19.22%)Net To Heirs (80.78%)

Taxes & Expenses (23.54%)Net To Heirs (76.46%)

Current Situation In 10 Years In 20 Years

JANUARY

Efficient Frontier - Proposed Mix

Efficient Frontier

ConservativeMod ConservativeModerateMod AggressiveAggressive

Present MixProposed MixSuggested Mix

Standard Deviation (Risk)

Return12%

10%

8%

6%

4%

2%0% 5.25% 10.5% 15.75% 21%

Proposed Asset Allocation

18.83% $112,958 SmallGrowth Stocks14.77% $88,611International Stocks19.65% $117,928International Bonds

13.40% $80,378 HighYield Bonds4.12% $24,708 LargeValue Stocks13.20% $79,207 LargeGrowth Stocks16.03% $96,209 SmallValue Stocks

Asset Mix Comparison - Non-Qualified Assets

Present Asset Mix Proposed Asset Mix

Cash EquivalentsLarge Growth StocksSmall Value StocksSmall Growth StocksBalanced FundsInternational StocksTotal

Before-Tax Annual ReturnAfter-Tax Annual ReturnStandard Deviation (Risk)Sharpe RatioAfter-Tax Annual Yield

Present Asset Mix$25,000 9.09%

$0 0.00%$0 0.00%$0 0.00%

$250,000 90.91%$0 0.00%

$275,000 100.00%

7.09%5.53%8.01%0.38%2.61%

Proposed Asset Mix$0 0.00%

$60,006 21.82%$63,763 23.19%$89,823 32.66%

$0 0.00%$61,408 22.33%

$275,000 100.00%

11.27%9.12%

13.23%0.5%

1.43%

Adjustment($25,000)

$60,006$63,763$89,823

($250,000)$61,408

Establish Clear Next Actions

D O C U M E N T I M P R O V E M E N T S

Samples of MonthlyReports

JULY AUGUST

SEPTEMBER

Total Income Capital Gains Total Income Tax

Income & Income Taxes

Val

ue (

$100

0s)

200

800

300

700

400

600

500

1 000

900

100

2010

2015

2020

2025

2030

2035

2045

Ret

irem

ent

2050

2040

0

Financial Independence Triangle

Social Capital Legacy Status Social Capital Legacy Goal

Tax -Gift $ 10,000,000

Total $ 10,000,000

Family Legal Goal

$ 17,000,000

Family Legal Status

$ 15,196,800

FinancialIndependence

Status

$ 15,196,800

FinancialIndependence

Goal

$ 6,929,520

Tax $ 14,203,200Gift -

Total $ 14,203,200

SOCIALCAPITALLEGACY

Decrease Tax by $ 14,203,200Increase Gift by $ 10,000,000

FAMILY LEGACY

Increase Gift by $ 1,803,200

FINANCIALINDEPENDENCE

Available Planning Resources $ 12,140,880

OCTOBER

DECEMBER

2005 2007 2013 2021 2029 2037 2045 2053 2061 2069 2077 2083

95% chance of meeting your retirement need

Model Information

Mortality Information

Investment AnalysisMonte Carlo Simulation

Thomas Smith

9,200,000,0009,000,000,000

8,000,000,000

7,000,000,000

6,000,000,000

5,000,000,000

4,000,000,000

3,000,000,000

2,000,000,000

1,000,000,000

400,000,000200,000,000

Asset Class Value Mean Standard Deviation

Name Minimum Age Current Age Maximum AgeRate Standard Deviation

Cash equivalents $3,250,000 5% 0.01%

Corp Bond Funds $4,875,000 1% 2.3%

Income Funds $4,875,000 5% 1.7%

Balanced $6,500,000 6% 1.5%

Growth And Income Fund

James 85 78 110Rhonda 95 82 120

3% 0.5%

Growth and Income

Inflation Information

$13,000,000 8% 1.9%

40%

10%

15%

15%

20%

40%

10%

15%

15%

20%

NOVEMBER

Retirement Assets Non-Qualified Assets Existing Life Insurance

Value of Resources

Val

ue (

$100

0s)

1,000

4,000

1,500

3,500

2,000

3,000

2,500

5,000

4,500

500

2010

2015

2020

2025

2030

2035

2045

Ret

irem

ent

2050

2040

0

With each monthly report, we provide an updated Implementation Checklist. You can clearly see how your tax lawyers work with your other advisers to minimize taxes. The checklist shows “who will do what by when.”

Please have us prepare a Phase 4 analysis so you can see ways to minimize estate, gifts, GST, capital gains, income, AMT, or other taxes while increasing resources available to fund your vision. To have your planning costs and benefits funded with new tax savings, please call us at (800) 447-7090.

E S T A B L I S H C L E A R N E X T A C T I O N S

TTo have your planning costs and

benefits funded with new tax savings,

please call us at (800) 447-7090.

Establish Clear Next Actions

Ww

Yyw

Lead Adviser: Tim VoorheesCase Coordinator: Jana SikesDel. Freq & Mode: Qu/EmailRenewal Date: 4/30/08

TITLE DESCRIPTION ASSIGNED TO DUE DATE STATUS 1 Scheduling Schedule Family Retreat. Jana Sikes 12/20/2007 Completed

2 Data Mail the clients 2 Soft Data Questionnaires. Jana Sikes 12/20/2007 Completed

3 Data Scan documents prior to meeting. Allison Schwenn 1/3/2008 Completed

4 Data Provide clients with list of documents scanned and return the documents to them. Tim Voorhees 1/3/2008 Completed

5 Scheduling Schedule meeting with client and advisers. Jana Sikes 1/3/2008 Completed

6 Coordination Email client the Next Action Checklist. Jana Sikes 1/10/2008 Completed

7 Sr. Planner Create Current Analysis to present during Family Retreat. Tom Jarrett 1/10/2008 Completed

8 FWS After the Retreat, create the Family Wealth Statement. Allison Schwenn 1/23/2008 Completed

9 Sr. Planner After the Retreat, create the Family Wealth Blueprint®. Tom Jarrett 1/23/2008 Completed

10 Scheduling Reschedule call with accountant and Tim Voorhees. Jana Sikes 1/25/2008 Completed

11 Scheduling Schedule Strategy Session with Tim Voorhees and Tom Jarrett. Jana Sikes 1/23/2008 Completed

12 Scheduling Schedule meeting with clients to present Family Wealth Blueprint®

and Family Wealth Statement. Jana Sikes 1/23/2008 Completed

13 Scheduling Schedule meeting with Tim, clients, and attorney to discuss planning. Jana Sikes 1/25/2008 Completed

14 Coordination Email next actions to client. Jana Sikes 1/25/2008 Completed

15 Scheduling Arrange a call with Tim and accountants to clarify 2008 estimated taxes. Jana Sikes 1/25/2008 Completed

16 Adviser Before the call with accountants, email both to clarify the need to clarify the AMT issue before 1/15/08 so client can decide whether to sell the tax credits. When talking with accountant, discuss the $10K or 10%. Tim Voorhees 1/25/2008 Completed

17 Sr. Planner Update the Goals in the Current Analysis. Tom Jarrett 1/25/2008 Completed

18 Coordination Collect from client the 2007 charitable donations. Jana Sikes 1/25/2008 Completed

19 Scheduling Schedule a meeting with client and attorney to clarify special needs trust provisions for client’s daughter. Jana Sikes 1/25/2008 Completed

Implementation Steps as of January 30, 2008

All of your advisers generate documents and offer advice that can have a big impact on your cash flow, net worth, and taxes. You need a Wealth Counselor who can coordinate recommendations from all of your advisers and summarize everything in one document with links to all of your other important documents.

We offer to organize all of your documents in one place. For maximum efficiency, you should have all of your finanical, legal, tax, insurance, investment, and budget documents and reports on one password-protected CD. Your advisers, a surviving spouse, or you can then have ready access to all critical information about your wealth management.

E S T A B L I S H C L E A R N E X T A C T I O N S

EEfficiently monitor next

actions and planning

documents. Hold all of

your documents in the

palm of your hand.

Establish Clear Next Actions

Phase 4 Value Proposition

R E C E I V E B E N E F I T S F A R I N E X C E S S O F C O S T

We offer three levels of Phase 4 services. The basic Phase 4 program includes online tracking of your current plan, as described at www.BenefitsDashboard.com. The inter-mediate service provides the online track-ing coupled with 24/7 case coordination through our virtual task monitoring website at www.vTasker.com. The advanced Phase 4 engagement includes all of the basic and intermediate services combined with a complete review of your implemented plan. The review allows you to track bottom line numbers with dashboard gauges and online tables like that at www.Phase4Review.com.

When you subscribe to the basic, interme-diate, or advanced Phase 4 services, a case coordinator assigned to you will promise a prompt response to your emails, faxes, and phone calls. The coordinator will oversee fulfillment of commitments detailed on a time line of projects with what, who, when parameters clarified for internal staff and outside advisers. The timeline will list due dates for tax returns, business planning updates, corporate formality requirements, etc. The coordinator commits to be proactive with monthly updates in writing and notices about significant events.

For a fraction of what you would pay for your own personal CFO, you receive access to an array of services much more robust than those offered by a typical CFO. In fact, you can enjoy the benefits of belong-ing to a full-orbed Multi-Family Office (MFO) with a long track record of help-ing clients simplify their lives and realize their goals. The costs of participating in the MFO are easily covered by tax savings or other reductions in the normal costs of run-ning a family office.

TThe costs of participating are

easily covered by tax savings

or other reductions in the

normal costs of running a

family office.

Phase 4 Value Proposition

R E C E I V E B E N E F I T S F A R I N E X C E S S O F C O S T

We provide substantial discounts from our normal hourly fees when you com-mit to an annual retainer program. As shown on the table below, the Phase 4 basic concierge service entitles you to 64 hours of our staff time per year (16 hours per quarter) for only $6,000 per year. This gives you access to highly trained professionals -- some of which charge $250 to $400 per hour -- for less than $100 per hour.

The above price grid shows prices that will increase later in 2008. The Basic Phase 4 Annual Retainer gives you access to 16 hours each quarter (64 hours annually) of staff time for only $6,000 or less than $100 per hour. The intermediate Phase 4 retainer gives you up to 112 hours annually of our expertise for only $12,000 per year. The advanced option is for high net worth clients who want to access 176 hours of our time annually, with much of the service provided by credentialed attorneys, CFPsTM, and wealth counselors. Please call 800-447-7090 to discuss how you can receive full benefit from these services.

Th b i id h i h

BASIC ANNUAL RETAINER*

ADVANCED ANNUAL RETAINER*

INTERMEDIATE ANNUAL RETAINER*

Current Hourly Rate

Total per Quarter with BenefitsDashboard.com OnlyHO

URS Total per Quarter with

BenefitsDashboard.com and vTasker.com

Total per Quarter with BenefitsDashboard.com

vTasker.com and Phase4Review.comHO

URS

HOUR

S

Staff Member

1 400 2 800 4 1600 Attorney** 4002 500 4 1000 8 2000 CFP™ Planner 2501 150 4 600 8 1200 Paralegal 1502 250 8 1000 12 1500 Case Coordinator 125

10 1000 10 1000 12 1200 Admin. Assistant 100 $2,300 $4,400 $7,500 Total Quarterly Value $9,200 $17,600 $30,000 Annual Value $6,000 $12,000 $24,000 Annual Client Cost

* Clients can start with the Basic or Intermediate Annual Retainer and upgrade at anytime if doing so would lower the client’s costs

** Attorneys working through Family Office Services, Inc. do not provide legal advice. Some attorney work is provided through a vendor relationship with Million Voorhees LLP, a California law firm, or other affiliated law firms.

TPlease call 800-447-7090 to

discuss how you can receive full

benefit from these services.

Our mission

is to help you

realize your

vision for

minimizing

taxes and

maximizing

benefits _ for you, your family,

your business, and your favorite

charities.

We work with you to realize your

vision through a carefully-crafted

plan based on all of your available

resources. By studying the cash flow

needed to fund your dreams, we can

show you more tax efficient ways

to realize your vision. Your Phase 4

Blueprint will show how to integrate

the proper planning instruments to

help you maintain ample lifetime

income while experiencing the joy of

actively pursuing your vision. To see

how our trained staff can help you

cost effectively realize your goals,

please call us at 800-447-7090 or

email us at info@vfos.com.

“As you move through the days and years

of your life, you do not go unnoticed. You

leave a trail, an impression, footprints…

unquestionable proof that you existed…

in the lives of those around you.”

Lee Ann Womack: Something Worth Leaving Behind

© 1998-2008 TIM VOORHEES, JD, MBA.

Phase4 v080122

Establish Clear Next Actions

C A L L U S N O W T O M A X I M I Z E A F T E R - T A X B E N E F I T S

O