HIDDEN DESCRIPTION SLIDE

1
HIDDEN DESCRIPTION SLIDE NOT TO BE SHOWN TO THE
PUBLIC Financial Facts Catalogue code B07 Full
presentation or module? Presentation Slide
numbers B07-1 to B07-28 Registered/Non-Registered
Usage Okay for use by all. Not reviewed by
FINRA due to no mention of GS Funds or Retail
products. (Choices registered rep use only, not
for registered rep use, allowed for all, partial
limitations) Last update info Date updated
2014-12-31 Project 25321 Description of
changes updated slides B07-18, B07-23. update
background with new approved
template Filed with FINRA? No If yes,
date Notes
2
Financial Facts

• Basic Concepts You Need to Know

B07-1
3
You wont work forever.

• FINANCIAL FACTS

• Financial planners suggest you will need to
  replace 7090 of your annual income when you
  retire.
• On average, Social Security was designed to only
  replace 2540 of your income.
• You may live one-third of your life in retirement.

1
Fact
B07-2
4

• Longer Lifespan
• 1946 age 672014 age 78
• 11 years longer

Source CIA the World Fact Book
B07-3
5
The earlier you save, the better.

• FINANCIAL FACTS

• Compound return the return on your original
  investment, plus the return on your previous
  earnings can make a huge difference in your
  retirement account balance over time.

2
Fact
B07-4
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Compound Return
FINANCIAL FACTS

• Original investment 100
• Invested for one year withan 8 return adding 8
  fora total of 108
• Invested for another yearwith an 8 return
  addingaround 9 for a total of 117

B07-5
7
Retirement Plan Contributions

• FINANCIAL FACTS

Invest 100 per month beginning at age When you retire at age 65,you have
25 349,101
30 229,338
35 149,012
40 95,103
45 58,896
50 34,604
55 18,295
60 7,348
Accounts in this column are based on an 8
annual investment return in a tax-deferred
retirement plan. Your return   may be more or
less. Note that the funds will be subject to
income tax when you receive your distribution(s).
B07-6
8
To Accumulate 100,000 by Age 65

• FINANCIAL FACTS

Age 50
Monthly contribution 290
Total contributions 52,200
Total return 47,800
Total accumulation 100,000
Based on 8 annual earnings.This is an
illustration to show the concept of compound
return and is not intended to imply the past or
future performance.
B07-7
9
To Accumulate 100,000 by Age 65

• FINANCIAL FACTS

Age 50 Age 40
Monthly contribution 290 105
Total contributions 52,200 31,500
Total return 47,800 68,500
Total accumulation 100,000 100,000
Based on 8 annual earnings.This is an
illustration to show the concept of compound
return and is not intended to imply the past or
future performance.
B07-8
10
To Accumulate 100,000 by Age 65

• FINANCIAL FACTS

Age 50 Age 40 Age 30
Monthly contribution 290 105 44
Total contributions 52,200 31,500 18,480
Total return 47,800 68,500 81,520
Total accumulation 100,000 100,000 100,000
Based on 8 annual earnings.This is an
illustration to show the concept of compound
return and is not intended to imply the past or
future performance.
B07-9
11
Yes, you have money to invest.

• FINANCIAL FACTS

• Monitor your spending for one month.
• Determine where your money is going and where you
  can economize.
• Start with 1 and increase it 1 each time you
  get a raise.

3
Fact
B07-10
12
Finding Extra Money

• FINANCIAL FACTS

• Lower your tax withholding through your employer.
• Check fees and interest rates on all credit cards
  (these can be negotiated).
• Consider consolidating credit card debt to a low-
  interest loan.
• Average your utility bills.

• Utilize all pre-tax programs offered by your
  employer.
• Watch ATM and checking account fees.
• Raise deductibles on insurance.
• Consider refinancingyour home or car if market
  interest rates are 1½ lower than what you are
  paying.

B07-11
13
A percentage is better than a fixed dollar
amount.

• FINANCIAL FACTS

• Monthly salary 2,000 100 monthly fixed
  investment (5)
• Five years later with 3 annual raises
• Monthly salary 2,318100 monthly fixed
  investment (4.3)

4
Fact
B07-12
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A Fixed Dollar Contribution

• FINANCIAL FACTS

• Remains flat when your salary increases
• Does not keep pace with inflation
• Makes it impossible to maintain your standard of
  living when you retire

B07-13
15
Your investment choice is important.

• FINANCIAL FACTS

Equity Assets (Stocks)
Fixed Income Assets (Bonds)

• Loaned investment
• Bonds, money market instruments, Treasury notes,
  etc.
• Less volatile returns with reduced risk
• Historically, fixed-income assets have less
  potential risk and lower potential returns than
  equity assets

• Owned investment
• Shares of American and international companies
• Volatile returns with increased risk
• Historically, equities have a higher potential
  for long-term return

5
Fact
B07-14
16
Which type of investment is right for you?

• FINANCIAL FACTS

• Time horizon
• Risk tolerance
• Diversification

B07-15
17
Stock Performance from 19302010

• FINANCIAL FACTS

Percentage of time stocks had positive returns,
19302010
1 Year Periods
5 Year Periods
10 Year Periods
20 Year Periods
100
Positive Returns
Negative Returns
Source Ibbotson Associates While past
performance is no guarantee of future
performance, the market itself has been resilient
through the years. Illustration based on SP 500
Index from 1/1/1930 to 12/31/2010.
B07-16
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Asset Allocation matters.

• FINANCIAL FACTS

• Return on investment the rate at which your
  investment grows as a result of earnings.
• Higher return usually means greater risk.
• A small difference in a rate of return can make a
  big difference in the size of your investment
  over time.

6
Fact
B07-17
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A little risk can be a good thing.

• FINANCIAL FACTS

Aggressive Portfolio
Conservative Portfolio

• Invests 250/month
• 8 average returnfor 35 years
• Investment total 574,000

• Invests 250/month
• 6 average returnfor 35 years
• Investment total 356,000

This hypothetical illustration is not intended to
represent or predict the return on an actual
investment.
B07-18
20
Free money is a big deal.

• FINANCIAL FACTS

• If matching contributions are offered, you should
  always try to take advantage of them.

7
Fact
B07-19
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Debt can derail your plan.

• FINANCIAL FACTS

• Paying off debt
• Checking your credit record

8
Fact
B07-20
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Dealing with Debt

• FINANCIAL FACTS

• Avoid the minimum payment trap

Monthly Payment Total Paid Years to Pay Off
Minimum 7,431 12
200 fixed 6,123 2.6
225 fixed 5,970 2.25
250 fixed 5,854 2
Assumes 5,000 debt, 16 interest, no additional
chargesSource Bankrate.com
B07-21
23
Using Debt Wisely

• FINANCIAL FACTS

• Importance of your credit history
• Obtaining your credit report
• www.annualcreditreport.com
• Call 1-877-322-8228
• Correcting mistakes in your credit report

B07-22
24
You cant time the market.

• FINANCIAL FACTS

• Market timing trying to move out of an
  investment when you think it is about to lose
  value or move into an investment just as you
  think it is about to grow in value.

9
Fact
B07-23
25
Missing the Best Days in the Market 19902010

• FINANCIAL FACTS

Market Returns SP 500 Index from 19902010
0
2
4
6
8
10
8.97
Stayed fully invested all 5,295 days
5.25
Missed 10 best days
Missed 20best days
2.82
0.76
Missed 30 best days
Sources FactSet, Standard Poors as of
12/31/2010
B07-24
26
Youre in it for the long haul.

• FINANCIAL FACTS

• Dollar cost averaging Investing the same amount
  of money at regular intervals over a long period
  of time resulting in a lower average cost per
  share.

1
0
Fact
B07-25
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Be a long-term investor.

• FINANCIAL FACTS

• Be aware of the ups and downs
• Remember your objectives

B07-26
28
Stuff to Do

• FINANCIAL FACTS

• Figure out where you can find more money in your
  budget
• Invest a percentage of your income
• Join the 1 Club
• Check your portfolio allocation
• Consider GuideStones three approaches to
  investing
• Deal with your debt
• Use GPS Guided Planning Services

Financial advice provided by GuideStone Advisors,
a controlled-affiliate of GuideStone Financial
Resources.
B07-27
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B07-28