model personalized plan

Prepared forStephen and Michelle Douglas

PERSONAL PLANNING ANALYSISLife Goals and Financial Needs

June 15, 2013

Prepared by

Norm Weston CLUNorthwestern Mutual720 E. Wisconsin AveMilwaukee, Wisconsin 53202(414) [email protected]

IMPORTANT: This Personal Planning Analysis (plan) is based on information provided by you about your financialsituation and goals. Unless we state otherwise, this plan uses hypothetical assumptions that you believe are reasonablefor inflation and rates of return on assets that are not guarantees or projections. This plan is not complete without the“Assumptions” and “Important Disclosures” pages at the end.

Table of Contents

Current Financial Position.................................................................................................................................. 4

Survivor Income - Stephen................................................................................................................................. 8

Survivor Income - Michelle............................................................................................................................. 14

Disability Income - Stephen............................................................................................................................. 20

Disability Income - Michelle............................................................................................................................ 25

Education.......................................................................................................................................................... 30

Retirement.........................................................................................................................................................38

Assumptions..................................................................................................................................................... 43

Important Disclosures....................................................................................................................................... 45

This plan is not complete without the “Assumptions” and “Important Disclosures” pages appearing at the end.local-1-1 June 15, 2013 of 49

Discovery Agreement

Stephen and Michelle Douglas

Your Planning Objectives

· Develop a plan to accumulate sufficient resources to retire comfortably.

· Develop a plan to provide for your family in the event of a premature death.

· Develop a plan to provide for you and your family in the event of a long termdisability.

· Develop a plan to fund your children's educations.

Personal InformationAge atEnd ofYear

Stephen 36Michelle 36

ChildrenVincent 4Gloria 1


Balance Sheet


Cu r r e n t F i n a n c i a l P o s i t i o n

As of June 15, 2013

Amount PercentNon-Qualified Assets

Savings Account (Joint) $20,000 2.57%CDs (Joint) $25,000 3.22%Mutual Funds (Joint) $60,000 7.72%Stocks (Joint) $30,000 3.86%Total Non-Qualified Assets $135,000 17.37%

Qualified Education AssetsVincent's 529 (Stephen) $4,000 0.51%Gloria's 529 (Stephen) $4,000 0.51%Total Qualified Education Assets $8,000 1.03%

Qualified Retirement AssetsStephen's IRA $45,000 5.79%Stephen's 401(k) $60,000 7.72%Michelle's 401(k) $24,000 3.09%Total Qualified Retirement Assets $129,000 16.60%

Lifestyle AssetsResidence (Joint) $475,000 61.13%Vehicle (Joint) $30,000 3.86%Total Lifestyle Assets $505,000 64.99%

TOTAL ASSETS $777,000 100.00%

LiabilitiesMortgage (Joint) $320,000 41.18%Student Loans (Joint) $30,000 3.86%

TOTAL LIABILITIES $350,000 45.05%

TOTAL NET WORTH $427,000 54.95%


Financial Goals Report Card


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Goal Description Goal CoverageRetirement 68%Vincent's College Education 5%Gloria's College Education 4%Survivor Income - Stephen 68%Survivor Income - Michelle 61%Disability Income - Stephen 59%Disability Income - Michelle 56%


What Steps Can You Take For A Lifetime Of Financial Security?

Financial security is the confidence that comes from taking action today to provide for tomorrow. It includes setting goals, accumulating resources, addressing risks, implementing lifetime income strategies and revisiting your plan as needed. It's a process that should be disciplined - but personalized and flexible to adapt to changes over time. While there is no "cookie-cutter" strategy that works for everyone, at least consider the following steps at each stage of your life.

23-0116-03 (1209)


Human Life Value


The economic value of a human life arises out of its relations to other lives. Whenever continuance of a life isfinancially valuable to others, either to family dependents, business associates, or educational and philanthropicsituations, the necessity for life insurance is present.

“The Economics of Life Insurance”Solomon S. Huebner (1882-1964)President, American College of Life UnderwritersProfessor of Insurance and Commerce, Wharton School, University of Pennsylvania

* Your earning power is the most valuable asset your family possesses.

* Stephen, over your remaining work life of 29 years, based on your current earnings of $100,000, growing to$228,793 when you retire in 2042, you will earn $4,521,885. The capital needed to replace that income (discountedat 6.00%) is $1,996,616.

* Michelle, over your remaining work life of 29 years, based on your current earnings of $75,000, growing to$171,595 when you retire in 2042, you will earn $3,391,414. The capital needed to replace that income (discountedat 6.00%) is $1,497,462.

* Besides being valuable, your life is vulnerable. The change of a few degrees in body temperature or a momentarylapse on the highway could shorten or end it.

* How well you protect your income could have much to do with the future happiness and material security of yourfamily.

* The purpose of insurance is to protect against loss resulting from catastrophic events.

* This Human Life Value concept, together with other important data, can help you determine your life and disabilityinsurance needs.


Survivor Income Objectives at Stephen's Death on December 31,2013


S u r v i v o r I n c o me - S t e p h e n

Client Information

MichelleAge at End of Year 36Retirement Age/Year 65 / 2042Assumed Death at Age/Year 90 / 2067

Immediate Cash Needs at Death

DescriptionAmount

(in today's dollars)Amount

(Dec 31 2013)Student Loans $30,000 $29,650Final Expenses $50,000 $50,000Mortgage $320,000 $316,736

Total $400,000 $396,385

Income Needs after Death

Description Individual Applicable

AnnualAmount

(in today'sdollars)

AnnualIncrease

Rate

AnnualizedAmount at

SurvivorshipLifestyle Expenses Michelle Jan 1 2014 to Dec 31 2067 $102,000 3.0% $105,060

Savings to Michelle's401(k)

Michelle Jan 1 2014 to Dec 31 2041 4.00% ofSalary

NA $3,090

Vincent's CollegeEducation

Vincent Jan 1 2027 to Dec 31 2030 $15,000 7.0% NA

Gloria's CollegeEducation

Gloria Jan 1 2030 to Dec 31 2033 $15,000 7.0% NA

Annual Income Needed $108,150

The amounts and dates above are based on information provided by you. Annual increase rates used are hypotheticalrates at which you are assuming an amount will grow over time due to inflation or other reasons.


Resources Available at Stephen's Death


Sources of Immediate Cash

Description

Amount(in today's

dollars)

AnnualReturn

(%)Amount

(Dec 31 2013)Employer Life Insurance $200,000 $200,000Life Insurance $800,000 $800,000Savings Account $20,000 6.0% $20,539CDs $25,000 6.0% $25,674Stocks $30,000 6.0% $30,809Mutual Funds $60,000 6.0% $61,617

Total $1,135,000 $1,138,638

Sources of Income

-------------------Before-Tax-------------------


AnnualIncome

(in today'sdollars)

AnnualIncrease

Rate

AnnualizedIncome at

SurvivorshipEarned Income

Salary Michelle Jan 1 2014 to Dec 31 2041 $75,000 3.0% $77,250 Social Security

Social Security Benefit Vincent Jan 1 2014 to Dec 31 2026 $22,136 3.0% $22,800Social Security Benefit Gloria Jan 1 2014 to Dec 31 2029 $22,136 3.0% $22,800Social Security Benefit Michelle Jan 1 2042 to Dec 31 2067 $27,111 3.0% NA

Annual Before-Tax Income Available $122,850

Assets Available for Education

Description IndividualBeginning

Balance

AnnualReturn

(%)Vincent's 529 Vincent $4,000 6.0%Gloria's 529 Gloria $4,000 6.0%

Assets Available for Survivor’s Retirement

DescriptionBeginning

Balance

AnnualPre-Retirement

Return (%)Amount at

Retirement

AnnualRetirementReturn (%)

Stephen's IRA $45,000 6.0% $238,077 6.0%Stephen's 401(k) $60,000 6.0% $335,691 6.0%Michelle's 401(k) $24,000 6.0% $436,402 6.0%


Annual Contributions to Assets

Description Applicable

AnnualAmount

(in today'sdollars)

AnnualIncrease

RateMichelle's 401(k) Pre-Tax contribution Jan 1 2014 to Dec 31 2041 4.00% of

SalaryNA

The amounts and dates above are based on information provided by you. Annual increase rates used are hypotheticalrates at which you are assuming an amount will grow over time due to inflation or other reasons. Return rates used forthe growth of investments are hypothetical assumptions you believe are reasonable for this plan and are not guaranteesor projections.


Cash Flow at Stephen's Death


37 39 41 43 45 47 49 51 53 55 57 59 61 63 65* 67 69 71 73 75 77 79 81 83 85 87 89

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

$550,000

Income AvailableAssets Liquidated

ShortageBefore-Tax Income Need

After-Tax Income Need

Values above the before-tax need line represent a surplus. Return rates used for the growth of investments arehypothetical assumptions you believe are reasonable for this plan and are not guarantees or projections.


Goal Coverage at Stephen's Death


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Needs Covered Shortage

Description Total Covered ShortagePercent

CoveredImmediate Cash Needs $396,385 $396,385 $0 100%Income Needs $5,821,919 $3,882,369 $1,939,550 66%

Totals $6,218,304 $4,278,754 $1,939,550 68%

Values are reflected in today’s dollars by discounting at a 3.00% inflation rate.

Minimum Life Insurance to Fund Needs* $1,006,282

*Additional insurance proceeds assumed to grow at a rate of 6.0% pre-retirement and 6.0% during retirement untilspent.

Return rates used for the growth of investments are hypothetical assumptions you believe are reasonable for this planand are not guarantees or projections.


Cash Flow at Stephen's Death with Addition of Life Insurance


Current37 39 41 43 45 47 49 51 53 55 57 59 61 63 65* 67 69 71 73 75 77 79 81 83 85 87 89

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

$550,000




With $1,006,282 of Additional Life Insurance

37 39 41 43 45 47 49 51 53 55 57 59 61 63 65* 67 69 71 73 75 77 79 81 83 85 87 89

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$200,000

$300,000

$400,000

$500,000

$600,000

$700,000






Survivor Income Objectives at Michelle's Death on December 31,2013


S u r v i v o r I n c o me - Mi c h e l l e

Client Information

StephenAge at End of Year 36Retirement Age/Year 65 / 2042Assumed Death at Age/Year 90 / 2067

Immediate Cash Needs at Death

DescriptionAmount

(in today's dollars)Amount

(Dec 31 2013)Student Loans $30,000 $29,650Final Expenses $50,000 $50,000Mortgage $320,000 $316,736

Total $400,000 $396,385

Income Needs after Death


AnnualAmount

(in today'sdollars)

AnnualIncrease

Rate

AnnualizedAmount at

SurvivorshipLifestyle Expenses Stephen Jan 1 2014 to Dec 31 2067 $102,000 3.0% $105,060

Savings to Stephen's401(k)

Stephen Jan 1 2014 to Dec 31 2041 4.00% ofSalary

NA $4,120


Vincent Jan 1 2027 to Dec 31 2030 $15,000 7.0% NA


Gloria Jan 1 2030 to Dec 31 2033 $15,000 7.0% NA




Resources Available at Michelle's Death


Sources of Immediate Cash

Description

Amount(in today's

dollars)

AnnualReturn

(%)Amount

(Dec 31 2013)Life Insurance $250,000 $250,000Savings Account $20,000 6.0% $20,539CDs $25,000 6.0% $25,674Stocks $30,000 6.0% $30,809Mutual Funds $60,000 6.0% $61,617

Total $385,000 $388,638

Sources of Income

-------------------Before-Tax-------------------


AnnualIncome

(in today'sdollars)

AnnualIncrease

Rate

AnnualizedIncome at

SurvivorshipEarned Income

Salary Stephen Jan 1 2014 to Dec 31 2041 $100,000 3.0% $103,000 Social Security

Social Security Benefit Vincent Jan 1 2014 to Dec 31 2026 $19,455 3.0% $20,038Social Security Benefit Gloria Jan 1 2014 to Dec 31 2029 $19,455 3.0% $20,038Social Security Benefit Stephen Jan 1 2042 to Dec 31 2067 $25,518 3.0% NA




Balance

AnnualReturn


Assets Available for Survivor’s Retirement

DescriptionBeginning

Balance


Return (%)Amount at

Retirement


Michelle's 401(k) $24,000 6.0% $136,102 6.0%Stephen's IRA $45,000 6.0% $238,077 6.0%Stephen's 401(k) $60,000 6.0% $936,290 6.0%




AnnualAmount

(in today'sdollars)

AnnualIncrease

RateStephen's 401(k) Pre-Tax contribution Jan 1 2014 to Dec 31 2041 4.00% of

SalaryNA

Employer contribution Jan 1 2014 to Dec 31 2041 2.00% ofSalary

NA



Cash Flow at Michelle's Death


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Goal Coverage at Michelle's Death


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CoveredImmediate Cash Needs $396,385 $373,113 $23,272 94%Income Needs $5,849,919 $3,469,762 $2,380,157 59%

Totals $6,246,304 $3,842,876 $2,403,429 61%


Minimum Life Insurance to Fund Needs* $1,369,813

*Additional insurance proceeds assumed to grow at a rate of 6.0% pre-retirement and 6.0% during retirement untilspent.



Cash Flow at Michelle's Death with Addition of Life Insurance


Current37 39 41 43 45 47 49 51 53 55 57 59 61 63 65* 67 69 71 73 75 77 79 81 83 85 87 89

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

$550,000




With $1,369,813 of Additional Life Insurance

37 39 41 43 45 47 49 51 53 55 57 59 61 63 65* 67 69 71 73 75 77 79 81 83 85 87 89

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000






Disability Income Objectives during Stephen's DisabilityStarting on January 1, 2014


Di s a b i l i t y I n c o me - S t e p h e n

Client InformationStephen Michelle

Age at End of Year 36 36Retirement Age/Year 65 / 2042 65 / 2042Assumed Death at Age/Year 90 / 2067 90 / 2067

Income Needs during Disability


MonthlyAmount

(in today'sdollars)

AnnualAmount

(in today'sdollars)

AnnualIncrease

Rate

MonthlyAmount atDisability

Mortgage Joint Jan 1 2014 to Jun 30 2040 $1,800 $21,600 0.0% $1,800Student Loans Joint Jan 1 2014 to Jul 30 2036 $200 $2,400 0.0% $200Lifestyle Expenses Joint Jan 1 2014 to Jan 1 2067 $8,500 $102,000 3.0% $8,755

Savings toMichelle's 401(k)

Michelle Jan 1 2014 to Dec 31 2041 4.00% ofSalary

4.00% ofSalary

NA $258


Vincent Jan 1 2027 to Dec 31 2030 $1,250 $15,000 7.0% NA


Gloria Jan 1 2030 to Dec 31 2033 $1,250 $15,000 7.0% NA

Monthly Income Need $11,013



Resources Available during Stephen's Disability


Sources of Income

----------------------Before-Tax---------------------


MonthlyIncome

(in today'sdollars)

AnnualIncome

(in today'sdollars)

AnnualIncrease

Rate

MonthlyIncome atDisability

Insurance BenefitsGroup LTD Stephen Jul 1 2014 to Dec 31 2041 $5,000 $60,000 0.0% $5,000

Earned Income

Salary Michelle Jan 1 2014 to Dec 31 2041 $6,250 $75,000 3.0% $6,438 Social Security

Social Security Benefit Stephen Jan 1 2042 to Jan 1 2067 $1,213 $14,558 3.0% NASocial Security Benefit Michelle Jan 1 2042 to Jan 1 2067 $1,894 $22,732 3.0% NA

Monthly Before-Tax Income Available $11,438



Balance

AnnualReturn


Assets Available for Retirement


Balance


Return (%)Amount at

Retirement


Savings Account Joint $20,000 6.0% $72,743 6.0%CDs Joint $25,000 6.0% $90,929 6.0%Stocks Joint $30,000 6.0% $109,115 6.0%Mutual Funds Joint $60,000 6.0% $218,229 6.0%Stephen's IRA Stephen $45,000 6.0% $238,077 6.0%Stephen's 401(k) Stephen $60,000 6.0% $335,691 6.0%Michelle's 401(k) Michelle $24,000 6.0% $436,402 6.0%



AnnualAmount

(in today'sdollars)

AnnualIncrease

RateMichelle's 401(k) Pre-Tax contribution Jan 1 2014 to Dec 31 2041 4.00% of

SalaryNA


Cash Flow during Stephen's Disability


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$450,000

$500,000

$550,000






Goal Coverage during Stephen's Disability


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CoveredIncome Needs $6,251,597 $3,727,400 $2,524,197 59%


Average Monthly Shortage to Age 65 in Today’s Dollars $3,768

You may qualify for a different amount of disability insurance (DI) than the shortage shown. While it isimportant to obtain as much DI coverage as possible, you may also need to consider additional strategies tohelp you build and preserve equity to fund future needs:

· Continuing (or increasing) saving strategies· Maintaining a suitable emergency fund· Repositioning current assets

· Reducing expenses· Including waiver of premium benefits in your

disability and life insurance policies



Disability Income Objectives during Michelle's DisabilityStarting on January 1, 2014


Di s a b i l i t y I n c o me - Mi c h e l l e

Client InformationStephen Michelle

Age at End of Year 36 36Retirement Age/Year 65 / 2042 65 / 2042Assumed Death at Age/Year 90 / 2067 90 / 2067

Income Needs during Disability


MonthlyAmount

(in today'sdollars)

AnnualAmount

(in today'sdollars)

AnnualIncrease

Rate

MonthlyAmount atDisability

Mortgage Joint Jan 1 2014 to Jun 30 2040 $1,800 $21,600 0.0% $1,800Student Loans Joint Jan 1 2014 to Jul 30 2036 $200 $2,400 0.0% $200Lifestyle Expenses Joint Jan 1 2014 to Jan 1 2067 $8,500 $102,000 3.0% $8,755

Savings to Stephen's401(k)

Stephen Jan 1 2014 to Dec 31 2041 4.00% ofSalary

4.00% ofSalary

NA $343


Vincent Jan 1 2027 to Dec 31 2030 $1,250 $15,000 7.0% NA


Gloria Jan 1 2030 to Dec 31 2033 $1,250 $15,000 7.0% NA

Monthly Income Need $11,098



Resources Available during Michelle's Disability


Sources of Income

----------------------Before-Tax---------------------


MonthlyIncome

(in today'sdollars)

AnnualIncome

(in today'sdollars)

AnnualIncrease

Rate

MonthlyIncome atDisability

Earned IncomeSalary Stephen Jan 1 2014 to Dec 31 2041 $8,333 $100,000 3.0% $8,583

Social Security

Social Security Benefit Stephen Jan 1 2042 to Jan 1 2067 $2,127 $25,518 3.0% NASocial Security Benefit Michelle Jan 1 2042 to Jan 1 2067 $1,009 $12,110 3.0% NA

Monthly Before-Tax Income Available $8,583



Balance

AnnualReturn


Assets Available for Retirement


Balance


Return (%)Amount at

Retirement


Savings Account Joint $20,000 6.0% $72,743 6.0%CDs Joint $25,000 6.0% $90,929 6.0%Stocks Joint $30,000 6.0% $109,115 6.0%Mutual Funds Joint $60,000 6.0% $218,229 6.0%Michelle's 401(k) Michelle $24,000 6.0% $136,102 6.0%Stephen's IRA Stephen $45,000 6.0% $238,077 6.0%Stephen's 401(k) Stephen $60,000 6.0% $936,290 6.0%



AnnualAmount

(in today'sdollars)

AnnualIncrease

RateStephen's 401(k) Pre-Tax contribution Jan 1 2014 to Dec 31 2041 4.00% of

SalaryNA

Employer contribution Jan 1 2014 to Dec 31 2041 2.00% ofSalary

NA


Cash Flow during Michelle's Disability


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$550,000






Goal Coverage during Michelle's Disability


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CoveredIncome Needs $6,279,597 $3,530,644 $2,748,952 56%


Average Monthly Shortage to Age 65 in Today’s Dollars $4,857

You may qualify for a different amount of disability insurance (DI) than the shortage shown. While it isimportant to obtain as much DI coverage as possible, you may also need to consider additional strategies tohelp you build and preserve equity to fund future needs:

· Continuing (or increasing) saving strategies· Maintaining a suitable emergency fund· Repositioning current assets

· Reducing expenses· Including waiver of premium benefits in your

disability and life insurance policies



Education Objectives


Ed u c a t i o n

Description Individual

Age atEnd ofYear

Starts atAge

AnnualAmount

(in today'sdollars)

Number ofYears

AnnualIncrease

RateResources

NeededVincent's College Education Vincent 4 18 $15,000 4 7.0% $171,728Gloria's College Education Gloria 1 18 $15,000 4 7.0% $210,374

Resources Needed

Year(in today's

dollars)(in future

dollars)2027 $15,000 $38,6782028 $15,000 $41,3852029 $15,000 $44,2822030 $30,000 $94,7642031 $15,000 $50,6992032 $15,000 $54,2482033 $15,000 $58,045Total Resources Needed $382,103



Resources Available for Education


Assets Available

Description Goal Beginning Balance

AnnualReturn

(%)Vincent's 529 Vincent's College Education $4,000 6.0%Gloria's 529 Gloria's College Education $4,000 6.0%



Cash Flow for Education


2027 2028 2029 2030 2031 2032 2033

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$90,000

$100,000

ShortageAssets LiquidatedIncome Available



Goal Coverage for Education


1 2

Goal

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GoalNumber Description Total Covered Shortage

PercentCovered

1 Vincent's College Education $171,728 $8,830 $162,898 5%2 Gloria's College Education $210,374 $10,517 $199,857 4%

Totals $382,103 $19,347 $362,755 5%



Comparison of Savings Alternatives for Vincent's College Education


Begin Saving Now

Description Single DepositLevel Monthly

DepositInitial Monthly Deposit

Increasing at 3.0%Taxable $82,204 $588 $470 529 Plans $67,417 $529 $427

Monthly deposits assumed to begin Jul 1 2013 and end Dec 31 2029

Begin Saving after 3 Years





Assumed Annual Rates of Return

Description Tax Treatment Pre-Retirement RetirementTaxable Taxable 6.0% 6.0%529 Plans Tax-free 6.0% 6.0%



Comparison of Savings Alternatives for Gloria's College Education


Begin Saving Now











Description Tax Treatment Pre-Retirement RetirementTaxable Taxable 6.0% 6.0%529 Plans Tax-free 6.0% 6.0%



What Are The Risks That Can Challenge Financial Security In Retirement?

As in other life stages, retirees face financial risks - many of which are no longer borne by the government or employers, but must be managed individually. And, with increasing life expectancies, most people will need to manage these risks for decades. To integrate financial risk management with income distribution and wealth accumulation goals, the following risks must be addressed as you plan for retirement.

1. LONGEVITY RISK

Longevity risk refers to the possibility

you could outlive your money. It's

important to remember that an average

life expectancy is just that - an average.

4. HEALTH CARE RISK

Longer life expectancies, rapidly rising

medical costs, fewer employer-sponsored

retiree benefits and the limitations of

Medicare make health care expenses a

significant risk in retirement.

2. MARKET RISK

Investment markets can go up ... and

down. Market declines early in your

retirement will have a greater impact

than a decline in later years.

5. LONG-TERM CARE RISK

About 70 percent of individuals over age 65

will require at least some type of long-term

care services during their lifetime.¹ These

expenses are not covered by private health

insurance or Medicare and can destroy an

otherwise sound financial security plan.

3. INFLATION AND TAX RISK

Both taxes and inflation can take a bite

out of retirement savings - inflation by

reducing your purchasing power, and

taxes by reducing your income and

leaving you with less money to spend.

6. LEGACY RISK

Experience has shown that, as people age,

their desire to leave a financial legacy to

loved ones or charity often increases.

Without adequate planning many retirees

risk not being able to meet this objective.

¹National Clearinghouse for Long-Term Care Information, U.S. Department of Health and Human Services.

www.longtermcare.gov/LTC/Main_Site/Understanding_Long_Term_Care/Basics/Basics.aspx

(Paper copies available upon request).

23-0116-07 (1209)


Having Choices in Retirement Really Matters

Using multiple types of assets to fund your income needs can give you the flexibility required to make strategic withdrawals from various accounts - which can help you manage income during retirement.

Securities are offered through Northwestern Mutual Investment Services, LLC, 1-866-664-7737, a subsidiary of Northwestern Mutual, broker-dealer and member FINRA and SIPC.

23-0116-01 (0510) (REV 1110)


Retirement Income Objectives Starting on January 1, 2042


Re t i r e me n t

Client Information

Stephen MichelleAge at End of Year 36 36Retirement Age/Year 65 / 2042 65 / 2042Assumed Death at Age/Year 90 / 2067 90 / 2067

Income Needs during Retirement

DescriptionEssential

Need Individual Applicable

AnnualAmount

(in today'sdollars)

AnnualIncrease

Rate

AnnualizedAmount atRetirement

Retirement Expense Y Joint Jan 1 2042 to Dec 31 2067 $102,000 3.0% $240,370




Resources Available during Retirement


Sources of Income

-------------------Before-Tax-------------------


AnnualIncome

(in today'sdollars)

AnnualIncrease

Rate

AnnualizedIncome at

RetirementSocial Security

Stephen's Benefit Stephen Jan 1 2042 to Dec 31 2067 $25,518 3.0% $60,136Michelle's Benefit Michelle Jan 1 2042 to Dec 31 2067 $22,732 3.0% $53,570


Investment Assets Available for Retirement


Balance


Return (%)Amount at

Retirement


Stocks Joint $30,000 6.0% $109,115 6.0%Mutual Funds Joint $60,000 6.0% $218,229 6.0%Stephen's IRA Stephen $45,000 6.0% $238,077 6.0%Michelle's 401(k) Michelle $24,000 6.0% $436,402 6.0%Stephen's 401(k) Stephen $60,000 6.0% $936,290 6.0%


Description ApplicableAnnual Amount

(in today's dollars) Annual Increase RateStephen's 401(k) Pre-Tax contribution Jan 1 2013 to Dec 31 2041 4.00% of Salary NA Employer contribution Jan 1 2013 to Dec 31 2041 2.00% of Salary NAMichelle's 401(k) Pre-Tax contribution Jan 1 2013 to Dec 31 2041 4.00% of Salary NA



Cash Flow during Retirement


*65/

65*

66/6

6

67/6

7

68/6

8

69/6

9

70/7

0

71/7

1

72/7

2

73/7

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74/7

4

75/7

5

76/7

6

77/7

7

78/7

8

79/7

9

80/8

0

81/8

1

82/8

2

83/8

3

84/8

4

85/8

5

86/8

6

87/8

7

88/8

8

89/8

9

90/9

0$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000






Goal Coverage during Retirement


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Goa

l Cov

erag

e



CoveredIncome Needs $2,652,000 $1,822,720 $829,280 68%


Summary of Savings Alternatives to Fully Cover Retirement Needs

Annual Pre-Retirement

Return (%)

Annual Retirement Return (%)

Account BalanceRequired atRetirement

Level MonthlyDeposit

Taxable 6.0% 6.0% $1,227,879 $1,759Tax-deferred 6.0% 6.0% $1,391,946 $1,582Tax-free 6.0% 6.0% $1,078,403 $1,225Tax-deductible 6.0% 6.0% $1,434,456 $1,630



Comparison of Savings Alternatives for Retirement


Begin Saving Now



Increasing at 3.0%Taxable $338,858 $1,759 $1,225 Tax-deferred Annuities $273,053 $1,582 $1,123 Roths $204,530 $1,225 $874 401k, IRA, 403b, and 457

Actual Contribution $272,452 $1,630 $1,164 Tax Savings ($62,664) ($375) ($268)Comparable After-Tax Cost $209,788 $1,255 $896





Increasing at 3.0%Taxable $388,027 $2,132 $1,404 Tax-deferred Annuities $323,443 $1,958 $1,306 Roths $243,600 $1,527 $1,025 401k, IRA, 403b, and 457

Actual Contribution $324,492 $2,032 $1,366 Tax Savings ($74,633) ($467) ($314)Comparable After-Tax Cost $249,859 $1,565 $1,052



Description Tax Treatment Pre-Retirement RetirementTaxable Taxable 6.0% 6.0%Tax-deferred Annuities Tax-deferred 6.0% 6.0%Roths Tax-free 6.0% 6.0%401k, IRA, 403b, and 457 Tax-deductible 6.0% 6.0%



Assumptions


As s u mp t i o n s

The following assumptions have been used in preparing this analysis. Since the results of this analysis are very sensitiveto the assumptions, it is important to review them on a regular basis.

Tax Assumptions

-------Income Tax Rate-------Planning Analysis Pre-Retirement RetirementRetirement /Education 23.00% 23.00%Survivor Income

When Stephen Dies 23.00% 23.00%When Michelle Dies 23.00% 23.00%

Disability IncomeAfter Stephen's Disability 23.00% 23.00%After Michelle's Disability 23.00% 23.00%

As Legislated (sunset applies)

On December 17, 2010, the U.S. Congress adopted the Tax Relief, Unemployment Insurance Re-authorization and JobCreation Act of 2010 (the Act). This Act extends the Bush era tax cuts for two years. The Act extends the major changesto estate tax, gift tax, and generation-skipping transfer tax (GSTT) which began in the year 2002 and will now continuethrough 2012. After 2012, the legislation enacted will sunset (or not apply) and revert to 2001 laws.

The changes made to personal and estate taxes (including credits, exemptions, etc.) are being extended through 2012.The exemption is now set at $5 million per person with a maximum tax rate of 35 percent for estate, gift, and generationskipping transfer taxes (GSTT) through 2012 (with the exemption amount being indexed by the cost-of-livingadjustment, beginning in 2012).

For 2010 only, an election is available to choose no estate tax and modified carryover basis for estates on or afterJanuary 1, 2010 and before January 1, 2011. In this case, a $5 million GSTT exemption is set with a zero percent rate.

Beginning on January 1, 2011, a decedent’s portion of unused exemption can be transferred to the surviving spouse; insome cases, alleviating complicated estate planning strategies which are generally required to claim an entire exemption.

Estate and gift taxes have also been reunified. A single graduated rate scale will now be used for both gifts and/orbequests. The maximum gift tax rate was reduced to 35% in 2010 and will continue at that rate through 2012.

On May 28, 2003, the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) was enacted. The JGTRRAprovides an acceleration of various income tax provisions of the 2001 Act. In addition, the JGTRRA provides areduction in the maximum long-term capital gains tax rate and preferential tax treatment for dividend income until 2008.The Tax Increase Prevention and Reconciliation Act of 2005 further extends the provision until the end of 2010, afterwhich the provisions will revert to prior law. The Act of 2010 defers the sunset rule of JGTRRA for two years andlong-term capital gains will continue to be taxed at the maximum rate of 15%, as well, dividends paid to individuals aretaxed at the same rates as long-term capital gains.

Because of the sunset clause, the provisions in the Act have been extended through 2012; and in 2013, the tax lawsrevert to those in place in 2001 except where extended by the Pension Protection Act of 2006. For the purposes of yourplan, we have illustrated the law as legislated, and the tax law reverting back to 2001 law in the year 2013.


On August 17, 2006, the Pension Protection Act (PPA) of 2006 was signed into law. The PPA permanently extendscertain provisions of the EGTRRA. Specifically, the PPA makes permanent contribution limit increases to IRAs andcertain employer-sponsored plans, permanently extends the availability of Roth 401(k) and Roth 403(b) plans, andpermanently extends the non-taxability of qualified 529 plan distributions.

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act) wassigned into law on December 17, 2010. This act extends the provisions of EGTRRA and JGTRRA for an additional twoyears; through 2012. Provisions of the 2010 Tax Relief Act are scheduled to sunset on December 31, 2012.

Inflation Assumption 3.00%

Surplus and Liquidation Rates of Return

-----Annual Rate of Return-----Planning Analysis Pre-Retirement RetirementRetirement 6.00% 6.00%Survivor Income

Stephen's Death 6.00% 6.00%Michelle's Death 6.00% 6.00%

Disability IncomeStephen's Disability 6.00% 6.00%Michelle's Disability 6.00% 6.00%

EducationVincent's College Education 6.00% 6.00%Gloria's College Education 6.00% 6.00%

The amounts and dates above are based on information provided by you. Return rates used for the growth ofinvestments are hypothetical assumptions you believe are reasonable for this plan and are not guarantees or projections.


I mp o r t a n t Di s c l o s u r e s

Northwestern Mutual’s Planning Approach: We follow a disciplined and comprehensive approach to financialsecurity planning that rests on three core principles: 1) protection against risk; 2) accumulation of wealth; and 3) wealthpreservation and distribution, including leaving a legacy.

Once the financial plan has been created, the next step in the financial security planning process is to select the rightinsurance and investment products and services to implement the plan. By designing plans that can achieve your goalsusing these core principles, Northwestern Mutual financial advisors distinguish themselves from competitors at othercompanies who often offer one-dimensional financial solutions to implement the plan.

We don’t believe in taking the kinds of risks necessary to “beat the market,” risks that inevitably lead to investmentlosses in less favorable times. In fact, our approach is to minimize risk without sacrificing the potential for growth. Theresults speak for themselves. Northwestern Mutual is among the “World's Most Admired” life insurance companiesaccording to executives, directors and analysts in FORTUNE® magazine's 2012 annual survey. FORTUNE® magazine,March 2, 2012.

Northwestern Mutual’s Planning Process: We establish enduring relationships with our clients, typically meetingwith them at least once a year to see what has changed and to make sure their course continues to be true. YourNorthwestern Mutual financial advisor will help you define your financial needs, assess your current circumstances,compare them with your goals, and chart a path to a more secure financial future. This is not a one-size-fits-all process.Depending on your needs and priorities, and what you decide is appropriate in your circumstance, this PersonalPlanning Analysis (“plan”) might be focused on a specific need and may be fairly limited in scope and time.Alternatively, it might be more comprehensive, encompassing a variety of needs over a longer period of time.

Depending on your circumstances, this plan may recommend you increase the amount you are saving/investing to reachretirement income, education funding or other wealth accumulation goals. It may include an asset allocationrecommendation to diversify investment holdings to be in alignment with your risk tolerance and time horizon. It mayalso recommend that you acquire life, disability, and/or long-term care insurance coverage to protect against risk.

One reason your financial advisor has developed this plan with you is to determine whether, or how, your needs can bemet using any of the products and services your financial advisor can offer you. However, you are under no obligationto purchase anything. You are free to implement any part of this plan with any product provider, or not at all.

About Our Qualifications and Compensation

Should you decide to implement your plan, your financial advisor is qualified to work with you in a variety of differentways:

· As an agent of The Northwestern Mutual Life Insurance Company (NM), your financial advisor is licensed as aninsurance producer. In this capacity your financial advisor is qualified to sell and service various types ofNorthwestern Mutual insurance products, such as life insurance, disability income insurance and annuities that canhelp protect you and your family from adverse financial impact if you die prematurely or become disabled and alsomay give you financial security during retirement. Your financial advisor is part of Northwestern Mutual’sexclusive distribution system. Exclusivity means that Northwestern Mutual makes its products available for saleonly through Northwestern Mutual agents such as your financial advisor and that your financial advisor will offersuitable Northwestern Mutual products to you first. If you choose not to purchase a Northwestern Mutual product,or if Northwestern Mutual does not manufacture a product that meets your needs, your financial advisor may alsobe qualified to sell and service insurance products offered by other companies.

· As an agent of the Northwestern Long Term Care Insurance Company (NLTC), your financial advisor is qualifiedto sell and service long-term care insurance that can help to pay for the cost of nursing home or other professionalcare in your later years.


Important Disclosures

Page 1 of 5

· As a registered representative for Northwestern Mutual Investment Services, LLC (NMIS), a broker-dealer andregistered investment adviser owned by NM, your financial advisor has a securities registration that qualifieshim/her to sell and service mutual funds from hundreds of fund families, as well as 529 and Coverdell collegesavings plans, and variable insurance products. Some NMIS registered representatives are qualified to offer theirclients stocks, bonds, ETFs and other securities.

· As an investment adviser representative of NMIS, your financial advisor can offer you the Signature Portfoliosprogram, an investment advisory program offered by NMIS, which gives you access to comprehensive, fullydiversified investment portfolios of select mutual funds and/or exchange traded funds. For more details about thisprogram, see the Northwestern Mutual Signature Portfolios Disclosure Brochure.

Titles for professionals in the financial world can be confusing, so let us clarify a few things for you.

Your financial advisor can work with you with respect to Signature Portfolios advisory accounts. However, yourfinancial advisor does not provide financial planning for a fee and does not receive any compensation for helping clientsanalyze where they stand compared to their financial goals.

· Compensation: Although the financial planning process is important, by itself, it will not meet your needs forfinancial security. In order to become more financially secure, you have to act. Your financial advisor iscompensated only when you “take action,” by purchasing insurance, investments or advisory services. As aninsurance agent and registered representative, your financial advisor receives transaction-based compensationin the form of commissions which vary from product to product and are typically expressed as a percentage ofthe insurance premium paid or the amount paid for an investment or annuity or the accumulated value ofinvestments. Typically, the amount of commission your financial advisor receives is tied to the amount ofpremium you pay, or the amount that you invest or accumulate in an investment or annuity.

As an investment adviser representative of NMIS, your financial advisor receives as compensation a percentage of theadvisory fees you pay if you are a client of the Signature Portfolios Program for servicing your Signature Portfoliosaccount.

Your financial advisor may also receive additional compensation in the form of cash bonuses, non-cash compensation(e.g., achievement recognition, conferences, prizes, awards, preferential servicing) and retirement benefits based oncommissions received. Your financial advisor’s total compensation for insurance products is designed to encouragelong-term relationships and a quality business.

Northwestern Mutual financial advisors know that in the long run they will benefit most by serving you well. Yourinterests and theirs align because they rely heavily on the referrals they receive from satisfied clients. Nevertheless, thefact that your financial advisor receives transaction-based compensation when recommending investment and insuranceproducts can present a conflict of interest. Northwestern Mutual addresses this potential conflict of interest by educatingits financial advisors to act in your interests and by having a supervisory system that helps to ensure that insurance andinvestment products are appropriately sold.

Perhaps the best evidence that any company is meeting the needs of its clients is the loyalty of those clients. Forinsurance companies, the measure of client loyalty is “persistency” (i.e., payment of renewal premiums). NorthwesternMutual experienced over 96% persistency on its life insurance products in 2011. Prepared and calculated by TheNorthwestern Mutual Insurance Company, Milwaukee, Wisconsin.



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On the investment side, the rate of compensation paid to NMIS registered representatives and NMIS financial advisorsincreases if the revenue generated from the sales and servicing of investment products and advisory services reachescertain thresholds. This is typical in the industry. Your financial advisor is eligible for a bonus, depending upon whetherthey meet specified levels of investment (including advisory services) and insurance production. If they qualify, thebonus rate ranges from 2-5% of their annual investment production. However, it is important to note that because thecompensation or bonuses paid to representatives for selling investments and advisory services are not product specific,there is no incentive for them to sell you any particular investment. For information about how NMIS and its registeredrepresentatives are compensated for the sale of mutual funds, please refer to the brochure: What Every Investor ShouldKnow About Mutual Funds, available at:

http://www.northwesternmutual.com/legal-information/Documents/920345.pdf?win_type=pdfform

“Northwestern Mutual” refers to The Northwestern Mutual Life Insurance Company (NM) and its subsidiaries. Lifeinsurance, disability insurance and annuities are issued by The Northwestern Mutual Life Insurance Company,Milwaukee, WI. Long-term care insurance is issued by Northwestern Long Term Care Insurance Company, Milwaukee,WI, a subsidiary of NM. Investment products are offered through Northwestern Mutual Investment Services, LLC(NMIS), 1-866-664-7737, a dually registered broker-dealer and investment adviser and a wholly-owned company ofNM member FINRA and SIPC. Variable annuities and variable insurance are underwritten by NMIS. All investmentsare subject to risk including the possible loss of principal invested.

If you see the names of more than one Northwestern Mutual financial representative on the cover page of this plan, theabove disclosures about your financial advisor apply only to the financial representative whose name appears first, at thetop of the list, who is assumed to have prepared this plan for you. Other representatives listed on the cover page of thisplan may have different affiliations or capabilities. Please see those representatives for more information.

The Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP®, Certified FinancialPlanner™ and CFP (with flame logo)®, which it awards to individuals who successfully complete initial and ongoingcertification requirements.

Assumptions In Your Plan: Planning is useful for a variety of obvious reasons, but under no circumstances should youbelieve that this plan is a prediction or projection about the future. In some parts of this plan, you estimate what youthink your income and expenses will be in the future. You may also estimate inflation, taxes, and how your investmentswill perform. Think of this plan as one large “what if” scenario. You may instruct your financial advisor to use anyassumptions that you believe are appropriate for your plan. Your financial advisor, NM, and its subsidiaries are notprojecting or forecasting that the rates that you see in your plan will occur in the future. Charts or illustrations used inthis plan are for illustrative purposes and are not intended to represent the performance of any insurance product orinvestment.

This publication was compiled by NM and does not contain legal or tax advice. It is intended solely for theinformation and education of NM customers and their legal or tax advisors. It is not intended to be used andcannot be used to avoid any federal tax penalties that may be imposed on a taxpayer. Taxpayers should seekadvice regarding their particular circumstances from an independent legal, accounting, or tax advisor. Tax andother planning developments after the original date of publication may affect these discussions.



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The Information In Your Plan: The information contained in this plan is for informational purposes only and may notreflect all policies, holdings or transactions, their values, costs, charges, or proceeds in your portfolio. This plan wasprepared based on information provided by you and by various other sources. This plan is not an official document oraccount statement, and has not been audited or verified. You provided the information upon which this plan wasprepared however, for some assets that are held with NM or its subsidiaries, your financial advisor may have chosen togather some of the information in this plan from sources including The Northwestern Mutual Life Insurance Companyand Northwestern Long Term Care Company, NMIS, Pershing LLC, member FINRA, NYSE and SIPC (the carryingbroker-dealer for NMIS accounts), and Albridge Solutions (data consolidation). Some investment assets included in thisreport may be “Direct to Fund” accounts, which mean those assets are maintained and controlled by a mutual fundfamily or its transfer agent, not NMIS or its clearing broker Pershing. NMIS is a member of SIPC (Securities InvestorProtection Corporation), which protects the value of securities in customers' NMIS accounts up to $500,000 (includingup to $250,000 for claims for cash). Assets in Direct to Fund accounts held by outside mutual fund families are notcovered by NMIS’ SIPC coverage. An explanatory brochure concerning SIPC is available upon request or atwww.sipc.org. For additional information regarding excess SIPC protection that NMIS’ clearing firm, Pershing, carriesthrough a private insurer, Lloyds of London, please see www.Pershing.com. For answers to any questions regarding anoutside mutual fund family’s SIPC coverage, you may either contact your financial advisor or the appropriate mutualfund family, or refer to the mutual fund family’s statement regarding SIPC membership. SIPC coverage does not protectagainst potential losses due to market fluctuation.

You should not rely on this plan to determine the value of your assets. Any decisions made by you, based on suchinformation, are made at your risk. The information in this plan does not in any way alter or supersede the terms of anypolicy, contract, confirmation or statement received from NM, NMIS, their subsidiaries and affiliates, or otherorganizations. NM, NMIS, and their affiliates do not make any representations or guarantees as to the accuracy of suchinformation. We encourage you to review and maintain the original, official reporting documents relating to the assets inthis plan (contracts, policy statements, account statements, confirmations, etc.). You should refer to the officialdocuments when determining the value of your assets. If you elect to purchase any product or service to implement anyportion of your plan, please refer to your policy, contract, or most recent confirmation and account statements fordetailed information relating to that product or service.

Any valuation of employee stock options or restricted stock (collectively referred to as “ESOs”) that is contained in thisplan is solely an estimate for analysis purposes only, and is not intended to constitute advice on whether or how toexercise any ESOs or whether to buy or sell the stock underlying any ESOs. Your financial advisor should be relyingupon information you have provided from your employer about the details of the terms regarding any ESOs. ESOs areby their nature more volatile than the underlying shares of stock. Please consult your tax professional or tax advisorregarding the possible tax consequences of exercising or selling ESOs.

GLOSSARY

Asset: Items or property of value owned by an individual or entity.

Effective income tax rate: The combined state and federal tax rate actually paid on all of your total income. The annualeffective rate can be determined by dividing the tax you paid in the year by your total income for the year. The effectiverate will always be lower than the marginal income tax rate.

Inflation: General rise in the price of goods and services, which reduces the purchasing power of the dollar.

Marginal income tax rate: The combined federal and state tax rate at which your next dollar of income will be taxed.Typically associated with the “tax-bracket” that someone's income level falls into, the marginal income tax rate does notconsider the effect of exemptions and deductions. The marginal income tax rate is especially useful in evaluating the taxbenefit derived from additional income or deductions.



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Non-qualified assets: These types of assets generally do not meet federal tax requirements for deferred tax treatmentwith respect to interest, dividends and realized capital appreciation. Contributions made to these assets are nottax-deductible. Examples of non-qualified accounts/arrangements include personal checking and saving accounts, aswell as personal investments such as mutual funds, individual stocks and bonds. Certain non-qualified accounts,particularly personal annuities, qualify for deferred tax treatment on income and gains.

Qualified assets: These types of assets generally meet federal tax requirements for deferred tax treatment with respectto interest, dividends and realized capital appreciation. Contributions made into these accounts by the employer or theemployee are generally tax deductible (except for Roth IRAs, Coverdell ESAs and 529 plans). Examples of qualifiedaccounts/arrangements include IRAs, 403(b) plans, 529 plans, 457 plans, pension/profit sharing plans, SimplifiedEmployee Pension (SEP) plans, and 401(k) plans.



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model personalized plan

Documents

survivor income michelle

disability income michelle

important disclosures

survivor income stephen

disability income stephen

p o s i t i o nas

total nonqualified assets

mutual funds joint