The views expressed are not necessarily the opinion

The views expressed are not necessarily the opinion of Insert Broker-dealer name. Information is based on sources believed to be reliable, however, their accuracy or completeness cannot be guaranteed. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future results. This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful. Contents provided by APFA, Inc. Copyright 2016 APFA, Inc.

Looking Ahead to 2016 Presented by: Advisor Name of Firm

Tonight’s Agenda § Review of 2015 § Looking ahead to 2016 § Strategies to consider § Questions & answers Ø All examples provided are hypothetical and meant for illustrative purposes only. State income tax laws can be different from Federal income tax laws depending on your state. Be sure to take this into account before making any decisions. Individual situations will vary so please 3 consult a tax advisor to address your specific situation.

Five Key Areas of Financial Planning n Protection n Retirement Plan n Investments n Tax Planning n Estate Planning 4

2015 Was a Rough Year for Equities

2015 Market Returns DJIA % Change - 2. 2% S&P 500 -0. 7% NYSE Composite Index -6. 42% 6

FANG Stocks Ruled in 2015 ! The “Fab Four” stocks nicknamed FANG (Facebook, Amazon, Netflix and Google (now known as Alphabet)) were up over 60% on a cap weighted basis. Excluding those four stocks, the S&P 500 was down -4. 8% in 2015. The company names mentioned herein are for educational purposes only and was not a recommendation to buy or sell that company nor an endorsement for their product or service. Source: Schwab. com 1/4/2016 7

FANG stocks have high P/E’s Stock AAPL GOOGL FB NFLX AMZN S&P 500 PE 13. 0 36. 6 107. 32 325. 9 968. 8 22. 0 The P/E ratio (price-to-earnings ratio) is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share. It is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower P/E ratio. Source: Behzinga, 11/23/15

FANG Stocks These are NOT the typical stocks that Conservative Investors hold! Source: USA Today 1/19/2016 9

How Did Warren Buffet perform in 2015?

2016 Outlook In the first two weeks of 2016, Equity markets experienced their worst ever start.

What is contributing to this ?

Economists measured final growth of 6. 9% in 2015, and expect around 6. 5% for 2016. China is a far cry from the potent days when it posted Gross Domestic Product (GDP) growth of 10% or more. Source: WSJ, Jan. 19, 2016

Fed Chairperson Janet Yellen raised rate for the first time in over 7 years to 0. 25 -0. 50%

Where are interest rates headed ? Source: WSJ, Dec. 13, 2015

How have interest rates affected equities ?

Oil prices are confusing experts !

Other International concerns include: • European Economy • Russia

U. S. Political Landscape • 2016 is a presidential election year

What can investors expect in 2016 ?

2016 Outlook Summary 1 Many strategists feel U. S. markets will experience a bumpy ride, but will rise. 2 Interest rate uncertainty could bring more volatility. 3 Growth in China is less than previously expected. 4 Oil prices will continue to create market disruptions. 5 International concerns need to be monitored. 6 This is a Presidential election year. 7 Investors could expect more VOLATILITY.

Tax law changes that affect investors are another area we monitor

All tax law changes require planning

What Should YOU do in 2016? 26

Review ALL Your Sources Of Income Retirement Active Interest Passive OTHER Dividend The payment of dividends is not guaranteed. Companies may reduce or eliminate the payment of dividends at any given time. 27

Know Your Options Beneficiary Planning Trusts Tax Deferral Gifting Retirement Planning LPL Financial Representatives offer access to Trust Services through The Private Trust Company N. A. , an affiliate of LPL Financial. 28

Continue to explore ROTH IRA Conversion Opportunities This might be a good time to review the pros, cons and consequences of a partial or full ROTH IRA conversion. If converting a Traditional IRA to a Roth IRA, you will owe ordinary income taxes on any previously deducted Traditional IRA contributions and on all earnings. A conversion may place you in a higher tax bracket than you are in now. Because Roth IRA conversions may not be appropriate for all investors and individual situations vary we suggest that you discuss tax issues with a qualified tax advisor. 29

Consider Your Alternatives Tax Loss or Gains Harvesting Roth IRAs TRUST Tax Exempt Inherited IRAs Tax Advantaged 30

What Can You Do? Rebalance your portfolio. Rebalancing a portfolio cannot assure a profit or protect against a loss in any given market environment. 31

What Can You Do? Re-evaluate your investment goals and objectives. 32

What Can You Do? Confirm your investment timelines. Short Term Long Term 33

What Can You Do? Re-evaluate your risk tolerance. § § § Conservative Moderate Aggressive 34

What Else Can You Do? § Analyze your sources of income and true cash flow requirements § Review your overall tax planning strategies § Review your emergency fund needs § Fund your retirement accounts early in the year 35

Investors need to prepare for any environment! 36

The Stock Market vs. Your Portfolio § An index, whether S&P 500 or the Dow Jones, isn’t a measure of your portfolio § It’s what your portfolio is doing, not what “the market” is doing, that is important § Your portfolio doesn’t always move in lock step with any single market or index Indexes cannot be invested in directly, are unmanaged and do not incur management fees, costs and expenses. 37

We review changes for our clients regularly! 38

What can you expect from us? ü Constant communication ü More frequent discussions ü We are constantly reviewing economic, tax, estate and investment issues for our clients 39

Our Role as Your Advisor § We will maintain a non-emotional objective § We will avoid knee-jerk reactions § We will assist you in making decisions that are always in your best interest! - and § WE WILL BE HERE FOR YOU!!! 40 40

Available Today Our Latest Quarterly Economic Report Insert Your Newsletter Image Here 41

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Thank You! We Appreciate the Opportunity to Assist With YOUR Financial Needs ! 44

Any Questions? 45