The Family Nervin ky age 60, born in 1959) is a self employed contractor and is married to Shay ky (age 56), who is an employee of ABI Inc. They have been married for 16 years. Nervin has 2 adult married children from a former marriage. He has five grandchildren ages 10, 8, 6, 4, and 2 who are all close to Nervin and Shay. Nervin and Shaydo not reside in a community property state. Nervin makes $50,000 as Schedule C income. Shays salary is $50,000 per year. Their net worth is $500,000.Nervin (60)Shay (56) Adult child 1 Adult child 2 Grandchildren Ages 10, 8, 6, 4 & 2 Financial Goals & Concerns 1. They want to plan for retirement at Nervins age 66 with 80% of preretirement income. They expect to live until Nervin is 95 years old and they will include Social Security benefits in any retirement needs analysis. 2. They want to carefully review and improve their insurance and investment portfolios. 3. They want to be debt free at retirement except for their mortgage. 4. They want to start 529 Plans for each of the grandchildren. 5. They want to have a properly prepared estate plan (expected to cost $1,000).

Economic Information General inflation is expected to average 3.0% annually for the foreseeable future. Education inflation is expected to be 5.5% annually. They expect Treasury Bills to yield 1.5%, notes 2.5%, and bonds 4.0%. Bank Lending Rates 15-year conforming rate mortgage is 4.00%. 30-year conforming rate mortgage is 4.50%. Any closing costs associated with any mortgage refinance are an additional 3% of any amount mortgaged. There is a lender 80% loan-to-value requirement to refinance, ignoring closing costs which may be added to any new mortgage. Investment Return Expectations Cash and Money Market Fund Treasury Bonds/ Bond Funds Corporate Bonds/ Bond Funds International Bond Funds Index Fund Large Cap Funds/Stocks Mid/Small Funds/Stocks International Stock Funds Real Estate Funds Return 2.5% 4.0% 6.0% 7.0% 9.0% 10.0% 12.0% 13.0% 8.0% Standard Deviation 2.0% 4.0% 5.0% 6.0% 14.0% 16.0% 18.0% 22.0% 12.0% 280 .

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