The WNA RoaDMAP sm

The WNA RoaDMAPThe WNA RoaDMAPsmsm

Providing Direction for Providing Direction for Your Retirement JourneyYour Retirement Journey


Retirement is defined as “the time Retirement is defined as “the time after having stopped working.”after having stopped working.”

This addresses “what” retirement is.This addresses “what” retirement is.

but…but…


Are you prepared to address the Are you prepared to address the “when” and “how” of retirement?“when” and “how” of retirement?

If not…..If not…..II


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system provides the system provides the guidance you need guidance you need

to set your to set your retirement journey retirement journey on the right course.on the right course.


Retirement will cause a shift in your Retirement will cause a shift in your lifestyle.lifestyle.

It will also cause a shift in your It will also cause a shift in your investment strategy…investment strategy…

Changing the focus from Changing the focus from accumulationaccumulation to to distributiondistribution of assets. of assets.


When is the best time for me to retire?When is the best time for me to retire?

Do I have enough assets to retire?Do I have enough assets to retire?

How do I manage these assets?How do I manage these assets?

How do I receive a regular income?How do I receive a regular income?

Will my assets last my lifetime?Will my assets last my lifetime?

What impact will Social Security have on my What impact will Social Security have on my income?income?


When is the best time for me to retire?When is the best time for me to retire?

The best time to retire is when it is The best time to retire is when it is right for you. Financially, the longer right for you. Financially, the longer you delay retirement, the greater you delay retirement, the greater

your monthly income will be.your monthly income will be.


Almost all workers can begin collecting Almost all workers can begin collecting Social Security at age 62.Social Security at age 62.

Waiting to collect Social Security until Waiting to collect Social Security until age 70 can increase your monthly age 70 can increase your monthly

check by approximately 7% check by approximately 7% for for eacheach year you delay. year you delay.

Source: US News and World ReportSource: US News and World Report



Depending on how much monthly Depending on how much monthly income you require, we can help income you require, we can help

determine if you have enough assets determine if you have enough assets to generate this income stream.to generate this income stream.


As a general rule, your assets should As a general rule, your assets should be about 25 times the amount of be about 25 times the amount of

annual income you require in annual income you require in retirement. retirement.

For example, if you seek an income of For example, if you seek an income of $50,000 annually, you need $50,000 annually, you need approximately $1,250,000 in approximately $1,250,000 in

financial assets. financial assets.


This translates into a portfolio This translates into a portfolio withdrawal rate of 4% per year. withdrawal rate of 4% per year.

The RoaDMAPThe RoaDMAPsm sm system starts with a system starts with a standard rate of 4%, which is standard rate of 4%, which is

generally accepted as the “safe” generally accepted as the “safe” withdrawal rate for long retirements. withdrawal rate for long retirements.


Depending on a variety of factors, the Depending on a variety of factors, the 4% withdrawal rate could be 4% withdrawal rate could be

increased to as much as 6.5% or increased to as much as 6.5% or more per year. more per year.


How do I manage these assets?How do I manage these assets?

You need to have an overall portfolio You need to have an overall portfolio that is designed to provide downside that is designed to provide downside

protection but can still allow for protection but can still allow for moderate growth. moderate growth.


A 60/40 asset allocation is used for your A 60/40 asset allocation is used for your investment accounts.investment accounts.

This represents a portfolio which is This represents a portfolio which is comprised of approximately 60% equities comprised of approximately 60% equities

and 40% fixed-income securities.and 40% fixed-income securities.

Your assets will be segregated into separate Your assets will be segregated into separate accounts that each have a specific accounts that each have a specific

objective. objective.


In addition, In addition,

a WNA Cash Management Account is a WNA Cash Management Account is created, funded by assets from your created, funded by assets from your

investment account.investment account.

The amount initially held in this The amount initially held in this account represents 3 years of living account represents 3 years of living

expenses. expenses.


Why 3 years?Why 3 years?

Provides minimal risk of loss of Provides minimal risk of loss of principalprincipal

Allows you to “ride out” market Allows you to “ride out” market volatilityvolatility


How do I receive regular income?How do I receive regular income?

Funds from the WNA Cash Management Funds from the WNA Cash Management Account will be withdrawn and credited to Account will be withdrawn and credited to

a checking account of your choice. a checking account of your choice.

You may receive the income on a monthly You may receive the income on a monthly basis, or less frequently, depending on basis, or less frequently, depending on

your preference. your preference.

RoaDMAPRoaDMAPsmsm Route Route

WNAIRA

WNATrustAcct

WNAJointAcct

WNACash

ManagementAccount

External Client Checking

60/40

Split

Monthly


Each year, the amount of monthly Each year, the amount of monthly income will be increased by the income will be increased by the

Consumer Price Index (CPI) to keep Consumer Price Index (CPI) to keep your buying power intact. your buying power intact.


Why adjust the income to inflation?Why adjust the income to inflation?

History tells us that since 1916, History tells us that since 1916, inflation, as measured by CPI, has:inflation, as measured by CPI, has:

Averaged 3.5% per year.Averaged 3.5% per year.

Been present in all but 11 years.Been present in all but 11 years.Source: “But What If I Live?” , Dr. Gregory Salsbury, Ph.DSource: “But What If I Live?” , Dr. Gregory Salsbury, Ph.D


What does this mean?What does this mean?

Assuming $50,000 a year to live on Assuming $50,000 a year to live on today, and a 3% annual inflation today, and a 3% annual inflation

rate, you will need more than rate, you will need more than doubledouble that amount that amount

or or $101,640$101,640 in 25 years to maintain the same in 25 years to maintain the same

lifestyle.lifestyle.


Will my assets last my lifetime?Will my assets last my lifetime?

Using the withdrawal rate of 4%, Using the withdrawal rate of 4%, (increased annually for inflation)(increased annually for inflation)

the RoaDMAPthe RoaDMAPsmsm system should meet system should meet your income needs foryour income needs for

approximately 30 years.approximately 30 years.


A current 65-year old man has a life A current 65-year old man has a life expectancy of 17 years. expectancy of 17 years.

18%18% of these men will reach 90. of these men will reach 90.

A current 65-year old woman has a life A current 65-year old woman has a life expectancy of 20 years.expectancy of 20 years.

29%29% of these women will reach age 90. of these women will reach age 90.


What impact will Social Security have What impact will Social Security have on my income?on my income?

Social Security will be a supplemental Social Security will be a supplemental source of income. There are two key source of income. There are two key factors that determine the amount factors that determine the amount you will receive upon retirement. you will receive upon retirement.


The First Factor:The First Factor:

The amount of wages and salary The amount of wages and salary you and your spouse paid into you and your spouse paid into

the Social Security System the Social Security System during your working years.during your working years.


The Second Factor:The Second Factor:

The age at which you elect to begin receiving The age at which you elect to begin receiving distributions. distributions.

At 62, your benefits will be reduced by 25% At 62, your benefits will be reduced by 25% from the benefit you would have received at from the benefit you would have received at

age 66. age 66.

Conversely, at age 70, your maximum benefit Conversely, at age 70, your maximum benefit will be 132% of what you would have received will be 132% of what you would have received

at age 66.at age 66.


In addition, there are other strategies to In addition, there are other strategies to be pursued, if married or divorced. be pursued, if married or divorced.

WNA Wealth Advisors, Inc. can assist you WNA Wealth Advisors, Inc. can assist you in evaluating your options to ensure that in evaluating your options to ensure that

your benefits are maximized. your benefits are maximized.


On-Going ServicesOn-Going Services

Long-Term Care InsuranceLong-Term Care Insurance Life InsuranceLife Insurance Disability InsuranceDisability Insurance GiftingGifting Estate PlanningEstate Planning Social Security AdviceSocial Security Advice


ExpertiseExpertise

Experienced Team of Experienced Team of ProfessionalsProfessionals

Responsive ServiceResponsive Service

Well-Established and Well-Established and Workable Investment Workable Investment StrategiesStrategies

Employment Ends.Employment Ends.

Retirement Begins.Retirement Begins.

Your Paycheck Continues.Your Paycheck Continues.

You Enjoy.You Enjoy.


Disclosure PageDisclosure Page

The preceding information is not a complete analysis of every material fact concerning The preceding information is not a complete analysis of every material fact concerning any market, industry or investment. Data has been obtained from sources considered any market, industry or investment. Data has been obtained from sources considered

to be reliable, but WNA Wealth Advisors makes no representations as to the to be reliable, but WNA Wealth Advisors makes no representations as to the completeness or accuracy of such information.completeness or accuracy of such information.

Diversification does not assure or guarantee better performance and cannot eliminate Diversification does not assure or guarantee better performance and cannot eliminate the risk of investment losses. Performance data quoted represents past performance the risk of investment losses. Performance data quoted represents past performance

and does not guarantee future results. and does not guarantee future results.

The investment return and principal of an investment will fluctuate so that, when The investment return and principal of an investment will fluctuate so that, when redeemed, may be worth more or less than the original cost.redeemed, may be worth more or less than the original cost.


Happiness is a dividend on a well-Happiness is a dividend on a well-invested life. invested life.

Duncan StuartDuncan Stuart

Thank you for your time and attention Thank you for your time and attention in viewing this presentationin viewing this presentation. .


Managing PortfolioManaging Portfolio

DiversificationDiversification RebalancingRebalancing Bond Maturity Bond Maturity

LadderingLaddering

Goal: Smooth out Goal: Smooth out investment investment performance and yield performance and yield higher returnshigher returns


Employment Ends.Employment Ends.

Retirement Begins.Retirement Begins.

Your Paycheck Continues. Your Paycheck Continues.

You Enjoy. You Enjoy.

Continuing ServiceContinuing Service

Assistance withAssistance with– Long-term care insuranceLong-term care insurance– Life insuranceLife insurance– Disability insuranceDisability insurance

Advice regardingAdvice regarding– GiftingGifting– Estate planning strategies and desiresEstate planning strategies and desires

Base Withdrawal Rate Base Withdrawal + Speed Limit Base Withdrawal + Speed Bump

4% Initial Withdrawal 4.5% Initial Withdrawal 4.7% Initial Withdrawal

Ending Account Balance: $156,135 Ending Account Balance: $286,209 Ending Account Balance: $285,120

Total Withdrawals: $371,895 Total Withdrawals: $329,323 Total Withdrawals: $333,360

Withdrawal % of Portfolio Range: 4.0% - 10.3% Withdrawal % of Portfolio Range: 3.6% - 7.5% Withdrawal % of Portfolio Range: 3.9% - 7.7%

Base Withdrawal + Speed Limit + Speed Bump Base Withdrawal + U-Turn All Withdrawal Rules

5.2% Initial Withdrawal 5.3% Initial Withdrawal 6.5% Initial Withdrawal

Ending Account Balance: $277,476 Ending Account Balance: $402,932 Ending Account Balance: $230,263

Total Withdrawals: $325,526 Total Withdrawals: $360,472 Total Withdrawals: $332,746

Withdrawal % of Portfolio Range: 3.8% - 7.5% Withdrawal % of Portfolio Range: 3.4% - 7.4% Withdrawal % of Portfolio Range: 4.6% - 9.4%

Historical Returns All Withdrawal Rules

Year

Large Co.

Stocks

Interm.Bonds

CPI

6.5% Initial Withdrawal

AnnualWithdrawal

Increase%

Rule

% ofPortfolio

6500

1973 -14.66 6.58 8.88 6500 0% Speed Bump 7.48%

1974 -26.47 7.24 12.2 5850 -10% Detour 9.42%

1975 37.2 7.35 7.01 5265 -10% Detour 7.84%

1976 23.84 7.1 4.81 5518 5% CPI Increase 6.38%

1977 -7.18 6.49 6.77 5518 0% Speed Bump 6.94%

1978 6.56 7.83 9.03 5849 6% Speed Limit 7.38%

1995 37.43 6.69 2.54 11368 3% CPI Increase 5.41%

1996 23.07 5.82 3.32 12505 10% Open Road 5.09%

1997 33.36 6.14 1.7 13755 10% Open Road 4.76%

1998 28.58 5.29 1.61 15131 10% Open Road 4.62%

1999 21.04 5.3 2.68 16644 10% Open Road 4.71%

2000 -9.11 6.19 3.39 16644 0% Speed Bump 5.48%

2001 -11.88 4.27 1.55 16644 0% Speed Bump 6.13%

2002 -22.1 3.98 2.38 16644 0% Speed Bump 7.39%

2003 28.7 2.85 1.88 16957 2% CPI Increase 6.87%

2004 10.87 3.28 3.26 17510 3% CPI Increase 7.07%



The amount of assets you have will be The amount of assets you have will be used to generate a monthly stream of used to generate a monthly stream of

income for you.income for you.

Your lifestyle and spending will determine Your lifestyle and spending will determine how far the money will go. how far the money will go.


As a general rule, you should have 25 As a general rule, you should have 25 times the amount of annual income times the amount of annual income

you seek in retirement. you seek in retirement.

For example, if you seek an income of For example, if you seek an income of $50,000 annually, you need a total of $50,000 annually, you need a total of

$1,250,000 in assets.$1,250,000 in assets.


Wit

hdra

wal ra

tes 100%100% 100%100% 100%100% 100%100% 84%84%

100%100% 100%100% 88%88% 76%76% 64%64%

72%72% 56%56% 56%56% 56%56% 44%44%

100%Equities

60% 40% 40% 60%100%Bonds

Back-testing Withdrawal Rates on Indexes25 Rolling 25-year periods from 1959-2007

Based on hypothetical $100,000 initial investments in the Ibbotson Large Company Stock Index as measured by the S&P 500 Composite Index) and/or the Ibbotson Lon term Corporate Bond Index (as measured by the Citigroup

Long Term High Grade Corporate Bond Index), portfolio rebalanced annually, with monthly withdrawals totaling 45, 5% and 6% annually, increasing 4% each year to account for inflation, over rolling 25-year periods from

12/31/1958 to 12/31/2007.

40% 60% 100%Bonds

50% 50%

4%

5%

6%


StructuringStructuring

Developing a portfolio that generates a Developing a portfolio that generates a steady stream of incomesteady stream of income

Providing cash reserves to avoid Providing cash reserves to avoid liquidation in market downturnsliquidation in market downturns

Maximizing tax efficiency Maximizing tax efficiency

For example, assume that a worker qualifies For example, assume that a worker qualifies for full benefits of $1,600 a month at the for full benefits of $1,600 a month at the age of 66.age of 66.

Now assume this worker elects to begin Now assume this worker elects to begin collecting benefits at age 62. The monthly collecting benefits at age 62. The monthly benefit would be reduced by 25%, to benefit would be reduced by 25%, to $1,200.$1,200.

If that worker were to delay collecting If that worker were to delay collecting benefits until age 70, the monthly benefit benefits until age 70, the monthly benefit increases to $2,100 per month. increases to $2,100 per month.

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The WNA RoaDMAP sm