Securing Your Financial Future In Uncertain Markets

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Securing Your Financial FutureIn Uncertain
Markets
Presented by J. Richard Coe, CFP, CLU Coe
Financial Services, Inc. 8100 E. 22nd N., Bldg.
1400-2 Wichita, KS 67226 316-689-0900 jrcoe_at_coefi
nancialservices.com
Registered Principal
Investment Advisor Representative
London Pacific Securities, Inc.
London Pacific
Advisory Services, Inc.
A Registered Broker/Dealer,
A Registered Investment
Advisor Member
NASD/SIPC




March 29, 2001
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Introduction

• Did your financial or retirement plan project the
  recent market declines?

• Is your portfolios current valuation anywhere
  near where it was projected to be?

• Have you ever audited your financial plan to
  stress test how sensitive it would be to market
  declines?

• If you answered no to any of these questions,
  then you are leaving your financial future to
  chance.

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The Purpose Of A Plan Is To Serve As A Map

• If well designed, it can plot your future
  financial course INCLUDING the peaks and valleys
  along the way

• Unfortunately, for many investors their plan
  assumes their portfolio will grow by the exact
  same return each year

• What good is a plan that assumes something that
  isnt realistic?
• Which is more realistic to you?

• We all know that the markets dont perform that
  way

Data provided throughout this presentation is for
illustrative purposes only. This is not an
actual investment. Past performance does not
guarantee future results.
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In the face of declining markets

• It is more important than ever to understand
  these risks to your financial future

• We can audit your financial or retirement plan
  to understand these previously ignored risks

• Instead of leaving your future to chance, you can
  turn it into a CHOICEyour choice

• What have you got to lose? Continuing to ignore
  these risks wont help you

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We start by understanding your pain

• About where was your portfolio a year ago?
• How much have you been hurt? Where is it today?
• Where did you (or your advisor) project it would
  be today?
• Next we identify your goals what you were trying
  to achieve how you planned your life
• Then, by using a probability audit, we can test
  your odds of meeting your goals

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What is a probability audit?

• Very simply, a probability audit takes your
  current (retirement/financial) plan and tests the
  results of your plan in many different market
  environments
• Therefore, we can see what might happen, for
  example, if the market declines significantly
• In doing this, we can help you make the best
  choices so you can
• increase your retirement income
• reduce the risk of outliving your money
• and make far better decisions that significantly
  increase the likelihood you will achieve your
  financial goals
• Here is an example of how it works

Investment results may never be predicted or
projected. Utilizing this audit template does
not guarantee future performance or results.
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Example of How Probability Audits Can Help

• 65 year old investors Harry Mary
• HAD 1,000,000 in investment assets (half in
  taxable half in tax deferred)
• Desire 48,500 in retirement spending in addition
  to Social Security
• Wanted at least a 100,000 estate
• Conservative asset allocation (45 Stocks/55
  Bonds Cash)
• Portfolio is now worth 700,000

They are not smiling anymore
This is not an actual investment. This example
is for illustrative purposes only. Past
performance does not guarantee future results.
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Originally, their plan was in fairly good shape
Summary results of their audit, BEFORE the market
decline67 Chance of leaving a 100,000 estate,
76 chance of not running out of money
Data provided throughout this presentation is
for illustrative purposes only. This is not an
actual investment. Past performance does not
guarantee future results.
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Of course, that was before the market decline
With 700,000, they need to take action
If they do not change their plan, they have a 98
chance of running out of money. The question is,
what should they do?
Data provided throughout this presentation is for
illustrative purposes only. This is not an
actual investment. Past performance does not
guarantee future result.
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Should they view this as a buying opportunity
be more aggressive?
700,000 Current plan with aggressive asset
allocation While it helps improve their odds, it
leaves them with about a 50/50 chance of failing
Data provided throughout this presentation is
for illustrative purposes only. This is not an
actual investment. Past performance does not
guarantee future results.
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Or, should they become more conservative?
700,000 Current plan with more conservative
allocation AND reduce retirement income
supplement from 48,500 to 30,000! Same 76
chance of not outliving wealth as in original
planbut, only a 51 chance of achieving
100,000 estate and retirement income suffers an
18,500 reduction
Data provided throughout this presentation is
for illustrative purposes only. This is not an
actual investment. Past performance does not
guarantee future results.
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Maybe stick to the long term plan?
700,000 Current plan, maintain asset
allocation, reduce retirement income from 48,500
to 34,800 Same odds of failure as original plan,
butRequires a 13,700 reduction in retirement
income
Data provided throughout this presentation is
for illustrative purposes only. This is not an
actual investment. Past performance does not
guarantee future results.
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Skilled Advisors May Find Better Solutions
700,000- Current plan with growth allocation and
reduce retirement income by 6,500 a year
Better odds than original plan of achieving
100,000 estate and same 76 chance of not
outliving money
Data provided throughout this presentation is
for illustrative purposes only. This is not an
actual investment. Past performance does not
guarantee future results.
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What happens if the market continues to decline?
Data provided throughout this presentation is
for illustrative purposes only. This is not an
actual investment. Past performance does not
guarantee future results.
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What happens if the market continues to decline?
Original Plan_at_ 1,000,000
Notice how the audit exposed the possibility of
the markets decline
Data provided throughout this presentation is
for illustrative purposes only. This is not an
actual investment. Past performance does not
guarantee future results.
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What happens if the market continues to decline?
Original Plan_at_ 1,000,000
Notice how the Improved Plan works even if the
market continues to decline
Improved Plan _at_ 700,000
Data provided throughout this presentation is
for illustrative purposes only. This is not an
actual investment. Past performance does not
guarantee future results.
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Everyones unique, but, we can help
Instead of assuming the same return each year, we
can test many market environments
Data provided throughout this presentation is for
illustrative purposes only. This is not an
actual investment. Past performance does not
guarantee future results.
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And, possibly improve your odds of meeting your
most important goalsLike leaving a 100,000
estate, or successfully navigating continued
declines
Data provided throughout this presentation is for
illustrative purposes only. This is not an
actual investment. Past performance does not
guarantee future results.
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We can even simulate new market environments and
the uncertainty of your lifespan
Data provided throughout this presentation is
for illustrative purposes only. This is not an
actual investment. Past performance does not
guarantee future results.
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In Summary, Whether you are young or old,
wealthy or just starting to invest We Can Help
You Plan Your Future To Meet Your Goals Even
When The Markets Move Against You
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To Learn More You Can
Or search for me here Choice Advisor Directory
Or contact us J. Richard Coe, CFP, CLU Coe
Financial Services, Inc. 8100 E. 22nd N., Bldg.
1400-2 Wichita, KS 67226 316-689-0900 jrcoe_at_coefi
nancialservices.com
This is for illustrative purposes only. This is
not an actual investment. Historical data given
throughout this presentation was for illustrative
purposes only. Past performance does not
guarantee future results.
March 29,2001