Experience the Power of Membership

A Time-Tested Approachto Retirement Investing

Before investing, carefully read the prospectus(es) or summary

prospectus(es) which contain information about investment

objectives, risks, charges, expenses and other information all of

which should be carefully considered. For current prospectus(es)

call (800) 874-6910. Investing involves risk. The investment

return and principal value will fluctuate and, when redeemed, the

investment may be worth more or less than the original purchase

price. Mutual funds and money market funds are not insured

or guaranteed by the Federal Deposit Insurance Corporation or

any other government agency. Although money market funds

seek to preserve the value of $1 per share, it is possible to lose

money by investing in these funds.

Asset Allocation or the use of an investment advisor does not

ensure a profit nor guarantee against loss.

Disclosures

3

manage investments for:

– 52.9 million people

– $3.2 trillion dollars

&

Defined benefit plan sources: Employee Benefit Research Institute and U.S. Census Bureau

Public Retirement

Systems

CorporatePension

Plans

use a time-tested investment approach

Institutional Pension Plans

4

They follow a disciplined process to actively manage retirement assets

They analyze historic asset class returns to construct diversified portfolios with acceptable risk parameters

They seek to reduce risk through asset allocation and diversification techniques

utilize time-tested investment strategies

Institutional Pension Plans

5

Common Mistakes

individual investors make

Buying investments after the market has made big gains

Selling investments after the market has declined

Overreacting to short-term market events

Failing to adhere to a long-term investment strategy

Taking on additional risk by failing to diversify properly

6

time-tested approach as the professionals?

Are you using the same

Your Portfolio

Typical STRS Pension Portfolio

Typical Corporate Pension Plan

Portfolio

11%

28%

39%

10%

30%

40%

20%22%

These asset allocation portfolios are for illustration purposes only. They do not use any specific indices and are not available for direct investment. The public and corporate portfolios above are based on interviews with officials at 577 corporate and 234 public pension plans conducted by Greenwich Associates.

Money Market Funds Fixed Income US Equity

International Equity Alternative Investments

7

Your retirement account deserves the same level of investment expertise and portfolio diversification as the nation’s largest pension plans.

8

A simple four step process to build wealth for retirement

Let’s focus on the investment aspects of the program

The PlanMember Services Program

utilizes time-tested investment strategies

1 2

34

ADVICE

SUPPOR

T

REVIEWANALYSIS

SERVICESPROGRAM

PLANMEMBER

9

The PlanMember Services Program

Create and adhere to sound investment policies and procedures

Regularly evaluate current economic, political and market events

Apply disciplined process to the management of investment portfolios

Maintain a long-term outlook for retirement investments

follows a disciplined process

10

analyzes asset class data to construct diversified portfolios

The historic asset class returns are not intended to imply a guarantee of return on the principal investment and are not indicative of the past or future performance of any portfolio or fund in the PlanMember Services Program. The asset class returns are provided by Ibbotson Associates for the period beginning January 1, 1962 and ending December 31, 2011. Large-company stocks measured by Standard & Poor’s 500 index. Small-company stocks measured by the fifth capitalization quintile of stocks on the New York Stock Exchange from 1962-1981, the performance of the Dimensional Fund Advisors (DFA) Small Company Fund from 1982 to March 2001 and the DFA Micro Cap Fund from April 2001 to December 2011. Corporate bonds measured by the Solomon Brothers Long-Term High Grade Corporate Bond Index. Intermediate government bonds measured by a one-bond portfolio with approximate maturity of five years. Treasury bills measured by one-bill portfolio with approximate maturity of 30 days. All results assume reinvestment of dividends on stocks or coupons on bonds and assume no taxes. Source: Ibbotson Associates.

15%

10%

5%

0%

7.11% 7.52%

9.80%

13.44%

5.18%

7.70%

U.S. Treasury

Bills

Int-Term Gov’t Bonds

Long-Term Gov’t Bonds

Corporate Bonds

Large Company

Stocks

Small Company

Stocks

The PlanMember Services Program

Historic Asset Class ReturnsJanuary 1, 1963 - December 31, 2012

Average Annual Returns

11

Sample PlanMember

Services Portfolio

15%30%

50%

5%11%

28%

39%

10%

30%

40%

20%22%

These asset allocation portfolios are for illustration purposes only. They do not use any specific indices and are not available for direct investment. The public and corporate portfolios above are based on interviews with officials at 577 corporate and 234 public pension plans conducted by Greenwich Associates.

The PlanMember Services Program

seeks to reduce risk through portfolio diversification

Typical STRS Pension Portfolio

Typical Corporate Pension Plan

Portfolio

Money Market Funds Fixed Income US Equity

International Equity Alternative Investments

12

historically have more long-term potential than fixed-rate alternatives

Diversified Portfolios

Conservative Portfolio composed of 40% large-company stocks, 5% small-company stocks, 20% corporate bonds, 20% intermediate government bonds and 15% treasury bills. Moderate Portfolio composed of 55% large-company stocks, 10% small-company stocks, 12.5% corporate bonds, 12.5% intermediate government bonds and 10% treasury bills. Aggressive Portfolio composed of 70% large-company stocks, 15% small-company stocks, 5% corporate bonds, 5% intermediate government bonds and 5% treasury bills. Large-company stocks measured by Standard & Poor’s 500 index. Small-company stocks measured by the fifth capitalization quintile of stocks on the New York Stock Exchange from 1962-1981, the performance of the Dimensional Fund Advisors (DFA) Small Company Fund from 1982 to March 2001 and the DFA Micro Cap Fund from April 2001 to December 2011. Corporate bonds measured by the Solomon Brothers Long-Term High Grade Corporate Bond Index. Intermediate government bonds measured by a one-bond portfolio with approximate maturity of five years. Treasury bills measured by one-bill portfolio with approximate maturity of 30 days. All results assume reinvestment of dividends on stocks or coupons on bonds and assume no taxes. Source: Ibbotson Associates. Charts are for illustration purposes only and do not predict or depict any mutual fund or portfolio offered through PlanMember Securities Corporation.

Aggressive Portfolio Moderate Portfolio Conservative Portfolio 7% Fixed 5% Fixed Inflation

19631965

19671969

19711973

19751977

19791981

19831985

19871989

19911993

19951997

19992001

20032005

20072011

20122009

$200,000

$400,000

$600,000

$1,000,000

$1,200,000

$1,400,000

$1,263,615

$929,452

$650,466

$294,570

$114,674$75,841

$800,000

Hypothetical Growth of $10,000 Portfolio – From January 1, 1963 to December 31, 2012

12

Historically, Diversified Portfolios have more long-term potential than fixed-rate alternatives

Conservative Portfolio composed of 40% large-company stocks, 5% small-company stocks, 20% corporate bonds, 20% intermediate government bonds and 15% treasury bills. Moderate Portfolio composed of 55% large-company stocks, 10% small-company stocks, 12.5% corporate bonds, 12.5% intermediate government bonds and 10% treasury bills. Growth Portfolio composed of 70% large-company stocks, 15% small-company stocks, 5% corporate bonds, 5% intermediate government bonds and 5% treasury bills. Large-company stocks measured by Standard & Poor’s 500 index. Small-company stocks measured by the fifth capitalization quintile of stocks on the New York Stock exchange from 1962-1981, the performance of the Dimensional Fund Advisors (DFA) Small Company Fund from 1982 to March 2001 and the DFA Micro Cap Fund from April 2001 to December 2011. Corporate bonds measured by the Solomon Brothers Long-Term High Grade Corporate Bond Index. Intermediate government bonds measured by a one-bond portfolio with approximate maturity of five years. Treasury bills measured by one-bill portfolio with approximate maturity of 30 days. All results assume reinvestment of dividends on stocks or coupons on bonds and assume no taxes. Source: Ibbotson Associates. Charts are for illustration purposes only and do not predict or depict any mutual fund or portfolio offered through PlanMember Securities Corporation.

Hypothetical Growth of $10,000 PortfolioFrom January 1, 1963 to December 31, 2012

Growth Portfolio Moderate Portfolio Conservative Portfolio 7% Fixed 5% Fixed Inflation

19631965

19671969

19711973

19751977

19791981

19831985

19871989

19911993

19951997

19992001

20032005

20072011

20122009

$200,000

$400,000

$600,000

$1,000,000

$1,200,000

$1,400,000

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

$1,263,615

$929,452

$650,466

$294,570

$114,674$75,841

$800,000

13

reduces portfolio risk

Conservative Portfolio composed of 40% large-company stocks, 5% small-company stocks, 20% corporate bonds, 20% intermediate government bonds and 15% treasury bills. Moderate Portfolio composed of 55% large-company stocks, 10% small-company stocks, 12.5% corporate bonds, 12.5% intermediate government bonds and 10% treasury bills. Aggresive Portfolio composed of 70% large-company stocks, 15% small-company stocks, 5% corporate bonds, 5% intermediate government bonds and 5% treasury bills. Large-company stocks measured by Standard & Poor’s 500 index. Small-company stocks measured by the fifth capitalization quintile of stocks on the New York Stock Exchange from 1962-1981, the performance of the Dimensional Fund Advisors (DFA) Small Company Fund from 1982 to March 2001 and the DFA Micro Cap Fund from April 2001 to December 2011. Corporate bonds measured by the Solomon Brothers Long-Term High Grade Corporate Bond Index. Intermediate government bonds measured by a one-bond portfolio with approximate maturity of five years. Treasury bills measured by one-bill portfolio with approximate maturity of 30 days. All results assume reinvestment of dividends on stocks or coupons on bonds and assume no taxes. Source: Ibbotson Associates. Charts are for illustration purposes only and do not predict or depict any mutual fund or portfolio offered through PlanMember Securities Corporation.

Long-Term Investing

Best and Worst Case Portfolio Performance 10 and 20 Year Holding Periods

From January 1, 1963 to December 31, 2012

Conservative Moderate AggressiveBest 15.41% 16.49% 18.24%

Worst 2.03% 0.70% -0.75%

Average 9.26% 9.99% 10.62%

Best 13.81% 15.47% 17.06%

Worst 7.30% 7.42% 7.45%

Average 10.25% 11.13% 11.91%

20 YEAR PERIODS

StocksBondsCash

10 YEAR PERIODS

14Your Portfolio Allocation should gradually change as you move through your career.

makes the most sense for you now?

Which Portfolio Strategy

Early Career Mid Career Late Career

Portfolio

IMore Conservative

Portfolio

II

Portfolio

IIIPortfolio

IVPortfolio

V

More Aggressive

A PlanMember Portfolio for Every Career Stage

15

Personalized plan and savings analysis

Online retirement plan review

Market and portfolio strategy updates, membership newsletters and quarterly consolidated statements

Online account access and toll-free customer service support

Dedicated Financial Advisor

additional benefits

PlanMember Services Program

Economic Review and Outlook

The recent battle in Washington over the debt ceiling culminated with an agreement to raise the debt limit on the condition that the Federal government enacts significant spending cuts. While this agreement avoided a catastrophic U.S. default, the deficit reduction requirements put a burden on an already weakened economy. Unfortunately, there seems to be wide agreement at all levels of government that deficits must be curtailed, either through reduced spending or tax increases. These beliefs were only reinforced when Standard & Poor’s (S&P) downgraded long-term U.S. debt. We have already begun to witness the effects of government spending cuts to reduce the deficit (austerity), with many economic indicators falling short and growth forecasts being revised downward. In addition, the extension of austerity policies in Europe and Asia will likely produce economic slowdowns for virtually all countries. These

slowdowns could accelerate market weakness across the globe.

Financial market volatility has increased recently, due in part to a wave of poor economic statistics. The consensus forecast for GDP in 2011 has been revised down from 2.7% to 1.7%, while at the same time the forecast for unemployment was raised from 8.7% to 9.0%. Such downward economic pressure took a toll on the stock market, with the S&P 500 down 5.4% year-to-date as of September 2, 2011. Unfortunately, the push for austerity may only serve to prolong economic weakness.

Japan has experienced an austerity experiment since its market peak in 1989. Errant monetar y and f iscal policy has pushed the Japanese economy into and out of recessions for more than twenty years. Interest and inflation have remained near zero with a surging national debt. Some economists

Portfolio

V

Portfolio

IV

Portfolio

III Portfolio

IIPortfolio

IMore Aggressive More Conservative

Early Career Mid Career Late Career

PlanMember ServicesASSET ALLOCATION PORTFOLIOS

The PlanMember Ser vices Program offers a professionally-managed asset allocation portfolio for each stage of your life. Each PlanMember Portfolio consists of a strategic blend of mutual funds and is managed with the same time-tested approach used by the pension plans of the nation’s largest employers.

In l ight of t hese recent economic developments, we have made adjustments to the PlanMember Services Portfolios in an effort to reduce their volatility. These adjustments include increasing fixed-income allocations and reducing equity allocations across all portfolios. Fixed-income assets have

primarily gone into GNMA and long-term U.S. government bonds, while high-yield bond exposure has been reduced. In addition to reducing the overall equity exposure, we have also shifted from international equity funds to domestic large-cap stock funds.

believe that we are on the same road to a period of stagnation, low interest rates and low inflation where economic growth remains close to zero. Without the implementation of a growth solution, America may be faced with more hard times. On the positive side, as the economy begins to unwind, the policy makers are getting a wakeup call and are being forced to focus on making decisions that can turn the economy in a positive direction.

Note: Current PlanMember Portfolio allocations and performance information can be accessed through the website address listed on your statement, by visiting www.planmember.com or by calling the PlanMember Service Center at (800) 874-6910.

PlanMember Services Portfolio Strategy

© 2011 PlanMember Financial Corporation Quarterly MO Portfolio4Q11

Before investing carefully read the prospectus(es) which contain information about investment objectives, risks, charges, expenses and other information, all of which should be carefully considered before investing. For current prospectus(es) call (800) 874-6910. Investing involves risk. The investment return and principal value will fluctuate and, when redeemed, the investment may be worth more or less than the original purchase price. Asset allocation or the use of an investment manager does not ensure a profit nor guarantee against loss. Past performance does not guarantee future results. Foreign securities pose additional risks that are not associated with U.S. domestic issues, such as changes in currency exchange rates and different governmental regulations, economic conditions and accounting standards. Small and mid-cap investments may have additional risk including greater price volatility.The information and opinions in this report have been written by the investment staff of PlanMember Securities Corporation. Opinions, estimates and projections in this report constitute PlanMember’s judgment and are subject to change at any time without notice. The information herein is believed to be reliable and has been obtained from sources believed to be reliable, but PlanMember makes no representation as to the accuracy or completeness of such information. This report is provided for information purposes only. It is not to be construed as an offer to buy or sell nor a solicitation of an offer to buy or sell any financial instrument or to participate in any trading strategy. The financial instruments discussed in this report may not be suitable for all investors. Investors must make their own investment decisions based upon their specific financial situations and investment objectives.

Representatives registered with and only securities and advisory services offered through PlanMember Securities CorporationA registered broker/dealer, investment advisor and member FINRA/SIPC

6 1 8 7 C A R P I N T E R I A A V E , C A R P I N T E R I A , C A 9 3 0 1 3

Shrinkonomics

Fourth Quarter 2011

PlanMember Services® Program

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Fall 2011

Planning your future…today®

Continued on Page 2

® Membership News

INCOME AND

INVESTMENT

PLANNING IN

RETIREMENT

Putting Your Savings

to Work for You

FEATURED IN THIS ISSUE:

Get Smarter with the

New PlanMember Online

Putting Your Savings

to Work for You

Money Lessons for Parents

to Teach their Kids

If you’re one of the millions of Americans getting ready to retire, you’ve worked

hard most of your of life saving for your future. Now it’s time to put your nest egg

to work for you. As you prepare for your golden years, one of the first things you

should understand is that investing IN retirement is much different than investing

FOR retirement. The transition from the accumulation to distribution phases

of your life will require some significant changes to your investment objectives

and strategy in order to make the most of your hard-earned savings. While your

portfolio will still need to maintain some emphasis on growth, your primary focus

now shifts to generating the income you will need to live comfortably in retirement.

16

for successful retirement investing

Follow a time-tested approach for long-term retirement investing

Work with a professional investment advisor to manage your retirement assets

Implement a long-term retirement investment strategy

Monitor your progress with an online retirement plan review and other ongoing communications

Summary of Key Steps

17

Complimentary Plan and Savings Analysis

Joining PlanMember

– Provides an estimate of Social Security and/or state retirement system benefits

– Estimates savings necessary to reach retirement income goals

– Calculates payroll contribution amounts to meet long-term savings goals

– Recommends a suitable PlanMember Asset Allocation Portfolio

Your Customized Retirem

ent Saving and Investment Plan

Representative registered with and securities and advisory services offered through PlanMember Securities Corporation

A registered broker/dealer, investment advisor and member FINRA/SIPC

6187 Carpinteria Ave, Carpinteria, CA 93013, (800) 874-6910.

Before investing, carefully read the prospectus(es) or summary prospectus(es) which contain information

about investment objectives, risks, charges, expenses and other information all of which should be carefully

considered. For current prospectus(es) call (800) 874-6910. Investing involves risk. The investment return

and principal value will fluctuate and, when redeemed, the investment may be worth more or less than

the original purchase price. Mutual funds and money market funds are not insured nor guaranteed by

the Federal Deposit Insurance Corporation or any other government agency. Although money market

funds seek to preserve the value of $1 per share, it is possible to lose money by investing in these funds.

Asset Allocation or the use of an investment advisor does not ensure a profit nor guarantee against loss.

Time-TestedPresentation0313

Thank you