blunck financial anchorage, alaska (907) 276-1900

Blunck FinancialAnchorage, Alaska

(907) 276-1900

©Copyright Financeware, Inc. 2002 All rights reserved

A completely new advice process:

Specifically designed to:»Avoid unnecessary investment risk

While:»Confidently achieving your goals»Without undue sacrifice to your lifestyle


Wealthcare is an easy process that puts everything together:

“Stress Test” Goals

Acceptable & Ideal Goals

Define Major Life Goals

Prioritize Goals

Recommendation “In Balance”

Comfort & Confidence

Implement Allocation

MonitorProgress

New Goals or Priorities


This new process has many benefits compared to traditional services:

“Stress Test” Goals

Acceptable & Ideal Goals

Define Major Life Goals

Prioritize Goals

Recommendation “In Balance”

Comfort & Confidence

Implement Allocation

MonitorProgress

New Goals or Priorities

Traditional Financial Services

Wealthcare Benefit

Complicated questionnaires asking for meaningless details

Focus on what is important

Easier

Goals compromised to maximize investment amount

Identify aspirations Achieve goals otherwise ignored

Identify maximum risk tolerance…Position you to experience it!

Evaluate whether risk is necessary

Avoid unnecessary risk

Solutions based on sacrifice (additional savings)

Solutions based on YOUR priorities

Avoid unnecessary lifestyle sacrifice

Monitor performance(what happened?)

Monitor PROGRESS (will I meet my goals?)

Identify problems & opportunities in

advance

Update annually at best

Update on demand More choices and better decisions

Confidence completely unknown

Confidence (comfort) calculated, monitored and kept in “balance”

Comfort that goals can be achieved


Your Aspirations (Ideal) and Traditional Goals (Acceptable)

Traditional advisory services focus on maximizing the size of your investment portfolio by minimizing your spending , maximizing your savings and positioning you in a portfolio with the highest risk you can tolerate. Achieving goals otherwise ignored and minimizing investment risk is what the Wealthcare process is all about. For most people, some goals are more important than others.

Your primary financial goals as determined in our goal assessment are outlined above.


“Stress Testing”

Uncertain <75%

A success percentage below 75% means that there is too high of a chance you may not achieve your goals. Adjustments need to be made to your goals, your allocation or your investments

Sacrifice >90%

A success percentage above 90% indicates that you are needlessly sacrificing your financial goals. You could take less investment risk, achieve larger or more goals and still maintain confidence in your financial future.

Confidence & Comfort (in “balance”)

A success percentage between 75% and 90% should give you confidence that your goals will be met. This reading indicates a set of goals that is manageable and avoids unnecessary investment risk. You may find at some future

date minor changes may be suggested, but they are likely to be small, easily manageable and exposed well in advance through ongoing monitoring.

How does “Stress Testing” Work?

Central to the Wealthcare process is the Confidence calculation. This analysis simultaneously evaluates your goals, your investment allocation and your assets to determine how confident you can be that your goals will be met. The Wealthcare process subjects your goals and investment strategy to this sophisticated ‘stress testing’ process which simulates 1000 market environments, both good and bad. Your Confidence or Comfort is the percentage of the 1000 simulations that achieve your goals (success). For example, if you achieved all of your goals or more in 830 of 1000 tests (% successful) your confidence is 83%.


“Stress Test” Results For Your Goals

The Level of Success for your goals…

Demonstrates how confident you can be considering all of the goals outlined and your investment strategy. The Success % means you achieved all of your goals and more. The < Target % means you achieved all your goals, but fell short of your estate goal. The Failure % means you would have needed to modify your goals at some point during your life.

Remember, below 75% means you may be disappointed and above 90% means you are making needless sacrifices to your lifestyle.

Comfort Zone Too Much Compromise


Recommendation

Your Recommended Goals are custom designed based on your priorities. This recommendation is designed to avoid undue sacrifices to your financial lifestyle and if possible avoid unnecessary investment risk. With these objectives in mind, our recommended goals and investment strategy falls within balance so that you can be confident that any future modifications to your goals will be moderate and manageable through ongoing monitoring.


Monitoring Your Progress


Achieving Your Goals

Monitoring Your Progress…As financial markets, financial goals and priorities change, we monitor your progress on an ongoing basis. The Wealthcare process identifies in advance the future portfolio values needed to maintain balance between confidence and undue sacrifice. This monitoring process enables us to track where your current portfolio falls so we can alert you of potential problems, or help you achieve additional goals you may have. Additionally, this dynamic process recognizes that throughout your life, goals and priorities change. In such cases we will design new recommendations for you.

54 55 56 57 58 59 60 61Age

$2,000,000

$675,000

$100,000

Sacrifice

Projected Comfort

Uncertain

Your Portfolio

Comfort


Updating Changing Goals

As your goals and priorities change…So will your lifetime plan. Please use this form to update us on any changes you would like to make to your goals or inform us of new goals you may have. Your financial advisor can work with you to redesign your recommended goals for changes you may desire.

Please tell us about any new goals you may have:

______________________________________________________________________________________________________________________________

Please tell us about any changes to your goals you would like us to review by entering them in the amendments below:

Amendments


Implementing Your Plan


Asset Allocation

Your Asset Allocation is a critical component of meeting your lifetime goals. Our recommended asset allocation is designed to balance avoiding unnecessary risk while maintaining confidence in achieving your goals.


Wealthcare Benefits for Albert & Mary Client

Retire TWO YEARS EARLIER

$5,000 MORE in retirement income

$15,000 MORE for travel

$15,000 LESS in annual savings

1/3 LESS risk

Wealthcare Benefit:Life With Wealthcare

Life With Traditional Services

Retirement Age 66 68

Retirement Income $95,000 $90,000

College Funding Yes Yes

Retirement Travel $25,000 $10,000

Savings $30,000 $45,000

Estate Goal $500,000 $500,000

Asset Allocation Balanced Balanced Growth

Average Return 9.94% 11.17

Downside Risk -10.93% -15.06

Confidence & Comfort 86 Unknown Comfort that goals can be met


Summary- Wealthcare Benefits:

Easier

Achieve goals otherwise ignored

Avoid unnecessary risk

Avoid unnecessary lifestyle sacrifice

Identify problems & opportunities in advance

More choices and better decisions

Comfort that goals can be achieved

blunck financial anchorage, alaska (907) 276-1900

Documents

goals success

set of goals

primary financial goals

wealthcare process

investment strategy

investment portfolio

confidence comfort

investment allocation