Prepared for:
Jane and John Sample
Prepared by:
Trusted Advisor
Senior Vice President
Wells Fargo Advisors
One North Jefferson
St. Louis, MO 63103
314-955-5555
Date:
June 2011
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The Financial Strategy Action Plan is an important written
document that is used to complement your Envision Plan. Envision
provides you with a road map that clearly defines your financial
and life goals within a relevant, explicitly stated time horizon. The
Financial Strategy Action Plan will be used to outline specific
implementation strategies and monitor their completion.
Together, Envision and the Financial Strategy Action Plan allow you
to address concerns including: retirement, investment strategy,
cash flow, liability management, education funding and estate
planning. They are designed to encompass multiple aspects of
your personal financial situation, enabling you to follow a carefully
considered and disciplined approach. Many people – and their
financial advisors – are tempted to make ad hoc decisions about
their financial situation – decisions that are often based on panic or
overconfidence. Envision and the Financial Strategy Action Plan
will assist us in evaluating the long-term and evolutionary nature
of your financial picture. They will clearly and concisely identify
the constraints and opportunities of your current financial situation
while also focusing on your goals and objectives.
As a result, we can attend to your short-term needs without losing
sight of your long-term goals. Using Envision and the Financial
Strategy Action Plan, we can work together to establish guidelines
that we believe are appropriate to your situation, given the
strategies available and the realities of the marketplace.
You are responsible for your own personal financial policy. I will,
however, guide you through this process. Once you have
established your policy, I will work to follow that policy. We will, of
course, regularly re-evaluate and update your plan. Personal
financial strategy evolves in response to personal and family
changes, and your plan should adapt to these changes.
A professionally prepared Envision and Financial Strategy Action
Plan will track your progress and provide continuity from one year
to the next. They will also help to prevent misunderstandings,
because they clearly explain the nature of our relationship and the
strategies we have agreed to implement. Finally, the Financial
Strategy Action Plan will be used to coordinate the efforts of other
professionals (for example: accountants, lawyers) that we choose
to consult as part of the investment planning process. Keep in
mind that Wells Fargo Advisors is not a tax or legal advisor.
This document is not a contract of any kind. It is a summary of
the financial-management strategies, techniques, goals and
objectives that we have agreed are most appropriate for your
particular situation.
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Your personal profile
Personal Information
Address: 111 Main St, Richmond, VA 23322
Phone: 804-555-1212
E-mail: [email protected]
Birth Date(s): June 2, 1969 (Jane) May 23, 1969 (John)
Dependent children
Name: Elizabeth Kate Sample Birth Date: 09/14/88
Name: James Michael Sample Birth Date: 05/09/02
Name:
Birth Date:
Name:
Birth Date:
Name:
Birth Date:
Other children/grandchildren
Name:
Birth Date:
Name:
Birth Date:
Name:
Birth Date:
Name:
Birth Date:
Name:
Birth Date:
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Your client advisory support team
Accountant: Ed Jorgenson
Address: 777 First St., Ste. 100, Richmond, VA 23322
Phone: 804-555-3333
E-mail: [email protected]
Lawyer:
Marcie Wall
Address: 888 Second St., Richmond, VA 23322
Phone: 804-555-4445
E-mail: Marcia.w[email protected]
Notary:
Devin DeStefano
Address: 626 Third St., Richmond, VA 23322
Phone: 804-555-4444
E-mail: devin.destefa[email protected]
Banker:
Cindy Snyder
Address: 555 Fourth St., Richmond, VA 23322
Phone: 804-555-2222
E-mail: [email protected]
Financing:
Address:
Phone:
E-mail:
Insurance:
Gayle O. Kessler
Address: 999 Fifth St., Richmond, VA 23322
Phone: 804-555-7777
E-mail: [email protected]
Other:
Address:
Phone:
E-mail:
Other:
Address:
Phone:
E-mail:
Other:
Address:
Phone:
E-mail:
5
Your retirement strategy
Employer retirement plans
Strategy:
$670,000 in John’s company 401(k), contribute
2010 maximum of $16,500
Date last reviewed:
November 3, 2009
Next action:
John to provide updated investment options of plan for review
prior to next review meeting in May 2010
IRA
Strategy:
Contribute $5,000 for John and Jane by April 15, 2010
for 2009 tax year
Date last reviewed:
November 3, 2009
Next action:
Jane to verify with accountant what amount may be deductible
Inherited IRA
Strategy:
Jane’s deceased father’s IRA – review asset allocation and take
RMD prior to year-end 2010
Date last reviewed:
November 3, 2009
Next action:
November 2010; take RMD and determine how to reinvest
Variable life/annuity
Strategy:
Date last reviewed:
Next action:
Other strategies
Strategy:
Date last reviewed:
Next action:
Your investment strategy
Determining your risk tolerance
Strategy:
Maintain Moderate Growth allocation per Envision plan
Date last reviewed:
November 3, 2009
Next action:
Review in May 2010
Long-term perspective /On-going management
Strategy:
Reviewed performance and diversification of Masters and
Fundsource accounts – no current changes
Date last reviewed:
November 3, 2009
Next action:
Review performance and style diversification in May 2010
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Your cash flow strategy
Cash flow analysis
Strategy:
Maintain monthly spending budget of $10,000
Date last reviewed:
November 3, 2009
Next action:
Review budget and plan for private school tuition payment for
Elizabeth in fall of 2010
Emergency funds
Strategy:
Maintain $50,000 cash in Resource Account
Date last reviewed:
November 3, 2009
Next action:
Review in May 2010
Your liability management
Mortgage considerations
Strategy:
Referred to Wells Fargo Mortgage to pursue refinance. Reduced
interest rate from 6.5% to 5.5% for 30-year fixed.
Date last reviewed:
May 12, 2009
Next action:
Review in May 2010
Debt analysis
Strategy:
Eliminate small outstanding credit card
balance immediately using savings
Date last reviewed:
November 3, 2009
Next action:
Review in May 2010
Securities-backed line of credit
Strategy:
Open Asset Advantage Line of Credit for $50,000 to cover
unexpected circumstances
Date last reviewed:
November 3, 2009
Next action:
Advisor and John to confirm completion by December 31, 2009
Please see disclaimer at the end of this document.
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Your education savings
529 plans
Strategy:
Continue making monthly automatic contributions of $300 to both
Elizabeth’s and James’ Virginia 529s.
Date last reviewed:
November 3, 2009
Next action:
Review performance and allocation in May 2010
Please consider the investment objectives, risks, charges and expenses carefully
before investing in a 529 savings plan. The official statement, which contains this
and other information, can be obtained by calling your Financial Advisor. Read it
carefully before you invest. An investor should consider, before investing, whether
the investor’s or designated beneficiary’s home state offers any state tax or other
benefits that are only available for investments in said state’s 529 college savings
plan.
Custodial accounts
Strategy:
Date last reviewed:
Next action:
Other strategies
Strategy:
Discussed potential formation of trusts for each child funded by
John’s father
Date last reviewed:
Via phone on December 10, 2009
Next action:
Advisor to set up follow up phone call with John, Jane, and John’s
father to discuss next steps – scheduled for February 27, 2010
Your family security
Life insurance
Strategy:
Maintain current term coverage for John of $2,000,000 and Jane of
$1,000,000. 15 years remaining on policies
Date last reviewed:
May 12, 2009
Next action:
Review coverage in May 2010 for potential cost savings
Disability insurance
Strategy:
John to maintain enrollment in company offered basic and
supplemental disability insurance coverage. Coverage now stands
at 75% of pre-tax earnings.
Date last reviewed:
May 12, 2009
Next action:
Review in May 2010 to ensure coverage matches current income.
Long-term care insurance
Strategy:
No LTC in place currently per decision by John and Jane.
Date last reviewed:
November 3, 2009
Next action:
Advisor to set up meeting for John and Jane with John Hancock
representative to discuss LifeCare policy – scheduled for March 15
at Sample’s house
8
Asset protection and creditor proofing
Strategy:
Ensure titling of assets is consistent with estate plan; review
beneficiary designations annually.
Date last Reviewed:
May 12, 2009
Next action:
Review in May 2010 for any changes in family situation; update
“Your Financial Information” record keeper annually.
General Insurance
Strategy:
Keep Umbrella policy at appropriate level – currently $2,000,000
Date last reviewed:
May 12, 2009
Next action:
Review in May 2010
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Your estate strategy – (Personal)
Your will(s)
Strategy:
Have updated wills on file with attorney and executors.
Date last reviewed:
August 17, 2009
Next action:
Review annually or if personal circumstances change.
Durable power of attorney
Strategy:
Assigned to Jane’s sister, Judy Doe to handle for both John and
Jane.
Date last reviewed:
August 17, 2009
Next action:
Review annually; discuss with children at appropriate age
Health care power of attorney
Strategy:
Assigned John’s brother, Jim Sample to
handle for both John and Jane.
Date last reviewed:
August 17, 2009
Next action:
Review annually; discuss with children at appropriate age
Living wills
Strategy:
Have living will completed and on file with primary physician’s
office.
Date last reviewed:
August 17, 2009
Next action:
John and Jane confirmed this had occurred on October 15, 2009.
Trusts
Strategy:
Ensure Living Trusts are funded appropriately for John and Jane;
ensure assets are title appropriately.
Date last reviewed:
August 17, 2009
Next action:
John and Jane to review with Advisor and attorney annually
Inheritances
Strategy:
Date last reviewed:
Next action:
Transfer-on-death accounts
Strategy:
Date last reviewed:
Next action:
Principal residence
Strategy:
Ensure titling is consistent with trust provisions.
Date last reviewed:
August 17, 2009
Next action:
Review annually or if personal circumstances change.
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Charitable donations
Strategy:
Primary charity: American Cancer Society – 2009 contribution of
$5,000
Date last reviewed:
November 12, 2009
Next action:
Review annually in conjunction with year-end tax strategies to
manage tax liability and meet philanthropic goals. Include
Accountant.
Gifting techniques
Strategy:
Date last reviewed:
Next action:
Second properties
Strategy:
Keep rental property at 4510 Leonard Parkway as source of
supplemental income.
Date last reviewed:
November 17, 2009
Next action:
Review in May 2010; review mortgage interest rate environment
and consider refinancing if beneficial
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Tax-related topics
Roth IRA conversion
Strategy:
Explore whether or not to convert IRAs to Roth in 2010
Date last reviewed:
November 12, 2009
Next action:
Review early in 2010 with John and accountant based on tax law
changes
Capital gains
Strategy:
Manage annual gains by harvesting tax losses
Date last reviewed:
Via phone with John and Accountant on December 7, 2009
Next action:
Review annually prior to year-end.
Advisor to consult with John and accountant.
Company stock benefits
(Stock options, restricted stock, etc.)
Strategy:
Date last reviewed:
Next action:
Alternative minimum tax exposure
Strategy:
Project potential AMT issues. No action needed in 2009.
Date last reviewed:
Via phone with John and Accountant on December 7, 2009
Next action: Review annually prior to year-end.
Advisor to consult with John and accountant.
For your business
Qualified retirement plan
Strategy:
Date last reviewed:
Next action:
Buy-sell agreements and life insurance
Strategy:
Date last reviewed:
Next action:
Succession/exit strategies
Strategy:
Date last reviewed:
Next action:
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Availability
A qualified staff member will generally be available to you at
your convenience. If not, we will follow up with you promptly.
We will also strive to return all messages by the end of the
business day.
Your commitment
You must have a genuine interest in your financial well-being
and the process of planning to achieve your personal goals and
objectives.
You also will make an effort to be as thorough as possible when
disclosing your current financial situation with the realization
that my recommendations as an advisor are only as accurate as
the information provided to me.
Recommendations
Envision and the Financial Strategy Action Plan are intended to
be reviewed and revised. They should evolve as your life
evolves. We will plan to review, modify and update these
documents on a regular basis to ensure that they remain
consistent with your current situation, goals, risk tolerance and
objectives. We will make any new and appropriate
recommendations at these regular meetings.
Service-level commitments:
Personal Meeting – Frequency: Semi Annual
Reporting – Frequency and Types:
Quarterly
Investment and insurance products:
NOT FDIC-Insured NO Bank
Guarantee
MAY Lose
Value
Wells Fargo Advisors is the trade name used by two separate, registered broker-dealers: Wells Fargo Advisors, LLC and
Wells Fargo Advisors Financial Network, LLC, non-bank affiliates of Wells Fargo & Company. Wells Fargo Advisors is not
a tax or legal advisor. 0411-4610 04/11
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All Asset Advantage Lines of Credit, including renewals, are subject to credit approval, verification and collateral evaluation. Initial
credit decision is subject to your meeting specific underwriting requirements, and final approval will be based upon your satisfying
these requirements. Program terms and conditions described here are subject to change without advance notice. Other
restrictions may apply. The Asset Advantage Line of Credit is subject to credit approval, verification and collateral evaluation.
Initial credit decision is subject to your line of credit or pledge additional eligible securities in order to maintain it, or the lender
may require the sale of some or all of your pledge securities. The sale of your pledge securities may cause you to suffer adverse
tax consequences. You should discuss the tax implications of pledging securities as collateral with your tax advisor. Wells Fargo
Advisors is not a tax or legal advisor. All securities and brokerage accounts are subject to eligibility requirements. Please read all
line of credit documentation carefully.
The proceeds from as asset backed loan may not be used to purchase additional securities.
