People Need Help with Financial Planning'

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Economic Security Planning, Inc.
ESPlannerTM
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We all need help with financial
planning.
ESPlannerTM
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• The Questions
• What is my sustainable living standard?
• What must I save to preserve it?
• What must I insure to protect it?
• How can I raise my living standard?
• How do I make life-style choices?

ESPlannerTM
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Based on Life-Cycle Model of
Saving Developed by MITs late Nobel
Laureate Franco Modigliani Goal ? a Stable
Living Standard
Economics Approach Consumption Smoothing
ESPlannerTM
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Consumption Smoothing
Living Standard

Earnings
Highest Sustainable Living Standard
100k
Age
65
100
30
ESPlannerTM
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• Conventional Advice
• Simplistic rules of thumb
• Forces you to set your own spending targets.
• Whats the right spending target --
• 100, 70, or 30 of pre-retirement income?

ESPlannerTM
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• Setting Your Own Targets is Dangerous
• Target to spend too little ? under-save,
  under-insure
• Target to spend too much ? over-save,
  over-insure

ESPlannerTM
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Retirement Spending Target Too Low
Living Standard
Pre-Retirement Living Standard Too High

120k
Retirement Living Standard Too Low
100k
Correct Target
90k
Age
30
100
65
ESPlannerTM
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Retirement Spending Target Too High
Living Standard
Retirement Living Standard Too High

120k
Correct Target
100k
90k
Pre-Retirement Living Standard Too Low
Age
30
100
65
ESPlannerTM
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Even Small Targeting Mistakes ?
Major Consumption Disruption
? Very Bad Saving Advice
? Very Bad Insurance Advice ?
Very Bad Investment Advice

ESPlannerTM
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Finds the Right Targets
ESPlanner Economic Security Planner
ESPlannerTM
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Revolutionary Financial Planning
Software Patented Dynamic Programming
Algorithm Implements Consumption
Smoothing Annual Spending, Saving, and
Insurance Recommendations Handles Borrowing
Constraints Monte Carlo Simulations Unique
Living Standard Risk/Reward Analysis
ESPlanner Economic Security Planner
ESPlannerTM
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• ESPlanner Inputs
• Wages Self-Employment Earnings
• Special Expenditures Special Receipts
• Estate Plans Life Insurance Holdings
• Regular Assets Current Saving
• Retirement Accounts
  Retirement Contributions
• Primary Home Vacation Home
• Changes in Primary Home Changes in
  Vacation Home
• Real Estate Retirement Account
  Annuitization Plans
• Pensions Annuities

ESPlannerTM
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• ESPlanner
• Exceptionally Detailed Tax and Social Security
  Calculations
• TAX CALCULATIONS SOCIAL
  SECURITY CALCULATIONS
• Federal Income Tax Retiree
• State Income Taxes Survivor
• FICA Parent
• EITC Spousal
• Exemptions Child
• Child Tax Credit Divorcee
• Saver Credit Family Benefit Maximums
• Alternate Minimum Tax Earnings History
• Standard Deduction Decision Earnings Test
• Retirement Account Taxation Early Retirement
  Reductions
• Real Estate Depreciation Delayed Retirement
  Credit
• Capital Gains and Dividend Taxation Re-computati
  on of Benefits
• Sales of Homes Off-set and Windfall
  Elimination

ESPlannerTM
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• ESPlanner Complex Engine, Easy to Drive
• User Friendly
• Easy Questions
• Roughly 30 Minutes of Inputs
• Excellent Customer Support
• Available Training

ESPlannerTM
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• ESPlanner Unique Ability to
• Maximize Your Spending Power
• Smooth Your Consumption
• Price Your Passions

ESPlannerTM
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Career/Job Choice Investing in
Education Location and Housing
Choice Choice of Mortgage
Type of Retirement Account Retirement
Account Contributions and Withdrawals When
to Take Social Security Annuitization
Decisions
ESPlanner -- Raising Your Living Standard
ESPlannerTM
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When to Retire Having Children Getting
Married Getting Divorced
Making Gifts to Children Contributing to
Charity Buying a Cabin-Cruiser Moving
to Florida
ESPlanner Life-Style Decisions
ESPlannerTM
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Safe Spend-Down Rates How Much
Life Insurance Long-term
Care Assessing Portfolio Risk Future Tax
Hikes Future Benefit Cuts Medicare Part
B Premiums
ESPlanner Preserving Your Living Standard
ESPlannerTM
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ESPlanner Academic Reaction
Fantastic! ESPlanner makes my life-cycle model
operational for everyone to use. Franco
Modigliani, 1985 Nobel Laureate in
Economics ESPlanner state-of-the-art
application for those who take financial planning
seriously. Stephen A. Ross, Modigiliani
Professor of Finance and Economics, MIT I
cant imagine a better financial planning
software program. Zvi Bodie, Professor of
Finance and Economics, Boston University
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ESPlanner Featured In

The New York Times The Wall Street Journal
The Washington Post The Boston Globe, USA
Today Consumer Reports The Dallas Morning
News The Baltimore Sun Time Magazine
BusinessWeek Forbes Fortune Money
Magazine MSN Money Smart Money Kiplingers
Finance Investors Business Daily FoxNews NBC
News MarketWatch CFO Magazine CNN
Money Bloomberg.com MarketWatch The Motley
Fool Yahoo Finance Investment News Financial
Advisor Journal of Financial Planning
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ESPlanner Press Reaction

If you demand the deepest and most
powerful planning engine, look no further.
The Washington Post
ESPlanners approach to financial planning
profoundly challenges well known programs.
BusinessWeek ESPlanner
can specify future tax hikes and benefit
cuts. Consumer Reports
ESPlanner explores every aspect of life-cycle
planning. The Dallas Morning News
Best of the Web Forbes
ESPlanners consumption smoothing determines the
highest living standard you can afford
for the rest of your life. Investors
Business Daily
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ESPlanner Customer Feedback

• Only tool that allows me to build a long-term
  spending plan in considerable detail. Accounts
  for all the variables
• Terrific integrated overall planning with lots
  of options and variables to cover many
  scenarios.
• Provides a comprehensive BIG PICTURE of my
  overall financial situation particularly
  related to retirement
• Given us a better sense of how to use our
  assets
• I like the fact that the program is from an
  independent source -- not from a broker, mutual
  fund or vested interest
• My wife likes the peace of mind knowing that
  she and the kids can maintain their current
  living standard if I die

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We believe ESPlanner provides valuable financial
planning information for faculty and staff and
are very pleased to be able to offer such a
benefit to Boston University employees. -
Nimet Gundagon, Manager of Benefits, Boston
University The faculty and staff of Boston
University have been very impressed with
ESPlanner. ESPlanner has added a component to our
benefit plan offerings that not only highlights
the value of our plans but allows our colleagues
to consider all their personal financial assets
and requirements as they plan for their future
economic security. We would encourage anyone who
wants a highly personalized plan for their
financial future to use ESPlanner as their
planning tool. - Richard J. Towle, (former)
Senior Vice President, Boston University
ESPlanner at Boston University
ESPlannerTM