Prepared for

New Resident

PERSONAL PLANNING ANALYSIS

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Life Goals and Financial Needs

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March 28, 2016

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Prepared by

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Adam Gordon CFP

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Financial Advisor / Recruiting Field
Director

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901 Wilshire Drive, Suite 300
Troy, Michigan 48084
(248) 244-6031
(248) 362-4889 fax
adam.gordon@nm.com
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www.nm.com/adamgordon
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IMPORTANT: This Personal Planning Analysis (plan) is based on information provided by you about your financial
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situation and goals. This plan uses hypothetical assumptions that you believe are reasonable for 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.
 Having Choices in Retirement Really Matters

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The primary purpose of permanent life insurance is to provide a death benefit. Using cash values to
supplement your retirement income will reduce benefits and may affect other aspects of your plan.

Securities are offered thru Northwestern Mutual Investment Services, LLC, 1-866-864-7737, a subsidiary of Northwestern Mutual, broker
dealer and member FINRA and SIPC.

23-0116-01 (0510) (REV 0614)

This plan is not complete without the Assumptions and Important Disclosures pages appearing at the end.
1854148-2-2 March 28, 2016
 Prepared for
New Resident

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ASSET ALLOCATION

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1854148-2-2 March 28, 2016
 Asset Class Annual Performance

Asset classes go in and out of style

It is impossible to predict which asset class will be the best or worst in any given year. The performance
of any given asset class can have drastic periodic changes.

This image illustrates the annual performance of various asset classes in relation to one another. It's easy to
lose sight of the fact that historical data shows it's impossible to predict the winners for any given year.

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Asset class winners and losers

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Resist the temptation of timing market preferences

For long-term investors, a more practical approach is to combine different asset classes within their
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portfolio. This helps keep investors from being caught too heavily weighted in a poorly performing
asset class when the investment markets change.
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Source: 2015 Morningstar, Inc. All right reserved. Used with permission.
Note: This chart is for illustrative purposes only and not indicative of any investment. The data assumes reinvestment of all income and
does not account for taxes or transaction costs. This chart is based upon past index performance and is not indicative of future results.
Indexes are unmanaged and cannot be invested in directly. Diversification does not guarantee a profit or protect against loss. Note that
the diversified portfolio's assets were rebalanced at the end of each quarter in order to maintain equal allocations throughout the period.

This plan is not complete without the Assumptions and Important Disclosures pages appearing at the end.
1854148-2-2 March 28, 2016
 Asset Class Annual Performance

The S&P 500 Index is a capitalization-weighted index of 500 stocks. The S&P 500 Index is
LargeCap designed to measure performance of the broad domestic economy through changes in the
S&P 500 Index aggregate market value of 500 stocks representing all major industries.

MidCap The S&P MidCap 400 Index is the most widely used index for mid-size companies and covers
S&P 400 Index approximately 7% of the U.S. equities market.

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SmallCap The S&P SmallCap 600 Index is a market-value weighted index that consists of 600 small-cap

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S&P 600 Index U.S. stocks chosen for market size, liquidity and industry group representation.

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The Morgan Stanley Capital International Europe, Australasia, and Far East (MSCI EAFE) Index
is composed of all the publicly traded stocks in developed non-U.S. markets. The MSCI EAFE

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Int'l Developed Index consists of the following 22 developed market country indices: Australia, Austria, Belgium,
MSCI EAFE Index Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, the
Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the

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United Kingdom.

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The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is
designed to measure equity market performance of emerging markets. The MSCI Emerging

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Int'l Emerging Markets Index consists of the following 21 emerging market country indices: Brazil, Chile,
MSCI EM Index China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico,
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Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey.
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The Dow Jones U.S. Select REIT Index intends to measure the performance of publicly traded
REITs and REIT-like securities. The index is a subset of the Dow Jones U.S. Select Real
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Real Estate Estate Securities Index (RESI), which represents equity real estate investment trusts (REITs)
DJ US Select REIT and real estate operating companies (REOCs) traded in the U.S. The indices are designed to
Index serve as proxies for direct real estate investment, in part by excluding companies whose
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performance may be driven by factors other than the value of real estate.
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The Bloomberg Commodity Index (BCOM), formerly the Dow Jones-UBS Commodity Index,
Commodities is a highly liquid, diversified and transparent benchmark for the global commodities market. It
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BCOM Index is calculated on an excess return basis and reflects commodity futures price movements.
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Fixed Income The Barclays Capital U.S. Aggregate Bond Index (formerly the Lehman Brothers U.S.
Barcap US Aggregate Index) is an index of the U.S. investment-grade fixed-rate bond market, including
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Aggregate Bond
Index both government and corporate bonds.
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Cash
Alternatives Cash alternatives are represented by the Citigroup 3-month Treasury Bill Index, an unmanaged
index representative of three-month Treasury bills.
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CITI T-Bill 3-Month

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Index

Diversified A portfolio of all segments disclosed above, with the following weights: 23% Large Cap; 6%
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Diversified
Portfolio Mid Cap; 3% Small Cap; 13% Int'l Developed; 6% Int'l Emerging; 4% Real Estate; 5%
Portfolio Commodities; 38% Fixed income; 2% Cash Alternatives.
Please remember that all investments carry some level of risk including loss of principal invested.

Northwestern Mutual is the marketing name for The Northwestern Mutual Life insurance Company, Milwaukee, WI (NM) (life insurance, disability
insurance and annuities) and its subsidiaries. Securities offered through Northwestern Mutual Investment Services, LLC (NMIS), a subsidiary of NM,
broker-dealer, registered investment adviser and member FINRA and SPIC.

This plan is not complete without the Assumptions and Important Disclosures pages appearing at the end.
1854148-2-2 March 28, 2016
 Long Term Investing

Increases the opportunity for positive returns

Though stocks are often considered by some to be risky investments, long-term gains have been
demonstrated to offset short-term losses for the long-term investor.
It is important to understand that, as with other investments, you can expect to experience losses from
time to time when investing in the stock market. Short-term losses can even be expected for fixed income
investments, though they are generally considered less risky than stocks. With a long investment horizon,

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however, losses could potentially be recouped.

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This graph illustrates the realized losses in the stock market for one-, five-, and fifteen-year periods. Of
the 89 one-year periods from 1926-2014, 24 resulted in a loss. However, increasing the holding period to

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five years, only 12 of the 84 overlapping five-year periods resulted in a loss. Moreover, none of the 74
overlapping 15-year periods from 1926-2014 resulted in losses. However, keep in mind that holding

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stocks for the long term does not ensure a profitable outcome and that investing in stocks always
involves risk, including the possibility of losing the entire investment. Stocks are not guaranteed and are
more volatile than other asset classes.

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Risk of stock market loss over time

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1926-2014

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Large stocks in this example are represented by the Ibbotson Large Company Stock Index. An investment cannot be made directly in an index.
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The data assumes reinvestment of all income and does not account for taxes or transaction costs.

Source: 2015 Morningstar, Inc. All rights reserved. Used with permission.
Note: Past performance is no guarantee of future results. This is for illustrative purposes only and not indicative of any investment. An
investment cannot be made directly in an index. The data assumes reinvestment of all income and does not account for taxes of transaction
costs.

This plan is not complete without the Assumptions and Important Disclosures pages appearing at the end.
1854148-2-2 March 28, 2016
 Common Mistakes People Make

They try to time the market

Investors who attempt to time the market run the risk of missing periods of exceptional returns, leading
to significant adverse effects on the ending value of a portfolio.

Investors who stayed in the market for all 5,040 trading days achieved a compound annual return of
9.9%. However, the same investment would have returned 6.1% had it missed only the 10 best days of
stock returns. Further, missing the 50 best days would have produced a loss of 2.2%. Although the

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market has exhibited tremendous volatility on a daily basis, over the long term, stock investors who

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stay the course have been rewarded accordingly.

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The cost of market timing
Risk of missing the best days in the market 1995-2014

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Source: Stocks in this example are represented by the Ibbotson Large Company Stock Index. An investment cannot be made directly in an
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index. The data assumes reinvestment of income and does not account for taxes or transaction costs. This is for illustrative purposes only and not
indicative of any investment.
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Long term investing requires discipline

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The appeal of market timing is obvious - improving portfolio returns by avoiding periods of poor
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performance. However, timing the market consistently is extremely difficult. And unsuccessful market
timing, the more likely result, can lead to a significant opportunity loss.
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Source: 2015 Morningstar, Inc. All rights reserves. Used with permissions.
Note: Past performance is no guarantee of future results. No investment strategy can guarantee a profit or protect against a loss in a
declining market. Returns and principal invested in stocks are not guaranteed. Investors who attempt to time the market run the risk of
missing periods of exceptional returns, leading to significant adverse effects on the ending value of a portfolio. Stocks are not guaranteed.
Stocks provide ownership in corporations that intend to provide growth and/or current income. Capital gains and dividends received may
be taxed in the year received.

This plan is not complete without the Assumptions and Important Disclosures pages appearing at the end.
1854148-2-2 March 28, 2016
 Asset Allocation Approach

One of the most important decisions you will make as an investor is how to divide your funds among
different types of investments. This crucial decision, which is called asset allocation, is the focus of
this report. Before we look at asset allocation as it relates to your specific situation, let's review some
basic investment principles.

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Investment Philosophy

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1. Solve your risk based needs first.

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2. Provide expert guidance to help you develop your long-term investment strategy.

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3. Create a strategy consistent with your risk tolerance, time horizon and goals.

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4. Determine a diversification strategy using asset allocation to meet goals.
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5. Use professionally created quality investment portfolios designed to match your asset
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allocation strategy.
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6. Use rebalancing to remove emotion from the decision making.

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7. Manage the impact of taxes and inflation.

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8. Evaluate the asset allocation relative to your long-term goals and benchmarks.
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9. Help you resist the temptation to change your strategy during up or down market
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movements.
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10. Encourage you to start early and invest regularly.

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1854148-2-2 March 28, 2016
 Understanding Risk Tolerance

In developing an asset allocation plan, it is important to understand that there is a direct relationship
between risk and return. In general:

The lower the risk, the lower the potential return.

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Over a long period of time, if one assumes more risk the greater the potential return.

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For this reason, your tolerance for risk plays a major role in determining which asset allocation may be
appropriate for you. For instance, if you are not comfortable riding the ups and downs of the market,

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you should seek a mix of assets that provides a reasonable return at a low level of risk. On the other
hand, if you are able to accept the potential for greater volatility and risk of loss in the value of your

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portfolio in exchange for the possibility of achieving higher returns, you may find a higher risk asset
mix appropriate.

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We gauge your risk tolerance with a series of questions. Based on your answers, you will fall into one
of the following risk profiles:
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Conservative - Conservative investors tend to be more interested in preservation of principal,
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liquidity and income with lower returns rather than in long-term growth or capital appreciation.
These investors
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are willing to accept lower returns for the potential to reduce volatility.
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Moderately Conservative - Moderately conservative investors are interested in preservation of

principal, liquidity, and income, but also seek modest growth in the value of their investments. These
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investors are willing to take on a little more risk to achieve that growth with the understanding that it
may increase volatility and the risk of losses.
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Balanced - Balanced investors are equally interested in preservation of principal and long-term
growth. These investors want steady and sustained growth and are willing to take some moderate
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risks of volatility and losses to achieve that growth.

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Aggressive - Aggressive investors are primarily interested in long-term growth and are willing to
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take reasonable risks of volatility and losses to achieve it. These investors are comfortable with the
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volatility and risk of losses that accompanies higher risk investments.

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Very Aggressive - Very aggressive investors are interested in higher potential growth with greater
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volatility and are willing to take substantial risks of loss to achieve it.

This plan is not complete without the Assumptions and Important Disclosures pages appearing at the end.
1854148-2-2 March 28, 2016
 The Benefits of Diversification

Risk vs. Return Relationship

An efficient frontier represents every possible combination of assets that maximizes return at each level of
portfolio risk and minimizes risk at each level of portfolio return.
An efficient frontier is the line that connects all optimal portfolios across all levels of risk. An optimal portfolio is
simply the mix of assets that maximizes portfolio return at a given risk level. This image illustrates an efficient
frontier for combinations of two asset classes: stocks (equities) and bonds (fixed income).
Although bonds are considered less risky than stocks, the minimum risk portfolio may not consist entirely of bonds.
The reason is that stocks and bonds are not highly correlated; that is, they tend to move independently of each

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other. Sometimes, stock returns may be up while bond returns are down, and vice versa. These offsetting

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movements help to reduce overall portfolio volatility (risk).
As a result, adding just a small amount of stocks to an all-bond portfolio actually reduced the overall risk of the

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portfolio. However, including more stocks beyond this minimum point caused both the risk and return of the
portfolio to increase.

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Diversification does not eliminate the risk of experiencing investment losses. Government bonds are guaranteed
by the full faith and credit of the United States government as to the timely payment of principal and interest,
while stocks are not guaranteed and have been more volatile than bonds.

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Stocks and bonds: risk versus return

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Risk is measured by standard deviation. Return is measured by arithmetic mean. Portfolios presented are based on modern portfolio theory.
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No investment strategy can guarantee a profit or protect against a loss in a declining market.
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There is no guarantee that any of the portfolios or models in a product will meet their stated goals or investment objectives. Investments
are subject to market risk and loss of principal. The investment return and principal value of an investment will fluctuate, and when
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redeemed, may be worth more or less than their original cost. The portfolios represented on the Risk and Return Relationship graph are
not based on the actual investment experience or portfolio results of any client. No investment strategy can guarantee a profit or protect
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against loss.
Source: Efficient frontier illustration created by Northwestern Mutual Wealth Management Company, a subsidiary of Northwestern
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Mutual. However, since stocks are historically more risky than bonds, increasing the amount of stocks in a portfolio generally causes
both the risk and return of the portfolio to increase.
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Note: The information presented herein is for illustrative purposes only and not indicative of any investment. Risk is measured by
standard deviation. Standard deviation measures the fluctuation of returns around the arithmetic average return of the investment. The
higher the standard deviation, the greater the variability (and thus risk) of the investment returns. Bonds in a portfolio are typically
intended to provide income and/or diversification. Bond investors should carefully consider risks such as interest rate risk, credit risk,
securities lending, repurchase and reverse repurchase transaction risk. There is an inverse relationship between bond prices and
interest rates. If interest rates fall, bond prices rise. If interest rates rise, bond prices fall. Greater risk is inherent in portfolios that
invest primarily in high yield bonds. They are subject to additional risks, such as limited liquidity and increased volatility. Stocks are
not guaranteed and have been more volatile than bonds. Stocks provide ownership in corporations that intend to provide growth
and/or current income. Past performance is no guarantee of future results.

This plan is not complete without the Assumptions and Important Disclosures pages appearing at the end.
1854148-2-2 March 28, 2016
 Cost of Waiting

Here are the monthly investments required at different ages to accumulate $1,000,000 by age 65,
assuming an 8% compounded rate of return:

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Monthly Investments
Age When Required to Reach

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Investments Begin Goal at Age 65*

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25 $285

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35 $667

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45 $1,686

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$5,430
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*For illustrative purposes only. This does not assume any particular investment strategy or product.

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1854148-2-2 March 28, 2016
 Prepared for
New Resident

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RETIREMENT PLANNING

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Re t i r e me n t
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1854148-2-2 March 28, 2016
 Retirement Income Objectives Starting on January 1, 2053

New Resident

Client Information
New
Age at End of Year 28
Retirement Age/Year 65 / 2053
Assumed Death at Age/Year 90 / 2078

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Income Needs during Retirement

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Annual

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Amount Annual Annualized
Essential (in today's Increase Amount at
Description Need Individual Applicable dollars) Rate Retirement

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Retirement Expense Y New Jan 1 2053 to Dec 31 2078 $120,000 3.0% $358,227

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Annual Income Needed $358,227

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The amounts and dates above are based on information provided by you. Annual increase rates used are hypothetical
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rates at which you are assuming an amount will grow over time due to inflation or other reasons.
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1854148-2-2 March 28, 2016
 Resources Available during Retirement

New Resident

Sources of Income
-------------------Before-Tax-------------------
Annual
Income Annual Annualized
(in today's Increase Income at

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Description Individual Applicable dollars) Rate Retirement

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Social Security
New's Benefit New Jan 1 2053 to Dec 31 2078 $23,408 1.5% $40,608

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Annual Before-Tax Income Available $40,608

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Investment Assets Available for Retirement

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Annual Annual

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Beginning Pre-Retirement Amount at Retirement
Description Individual Balance Return (%) Retirement Return (%)

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Beaumont 401(k) New $759 7.0% $129,406 5.0%
New Hospital 401(k) New $0 7.0% $2,575,927 5.0%

Annual Contributions to Assets

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Annual Amount
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Description Applicable (in today's dollars) Annual Increase Rate

Beaumont 401(k)
Pre-Tax contribution Jul 1 2015 to Jun 1 2018 5.00% of Salary NA
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New Hospital 401(k)

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Pre-Tax contribution Jul 1 2018 to Dec 31 2052 $18,000 0.0%

The amounts and dates above are based on information provided by you. Annual increase rates used are hypothetical
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rates at which you are assuming an amount will grow over time due to inflation or other reasons. Return rates used for
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the growth of investments are hypothetical assumptions you believe are reasonable for this plan and are not guarantees
or projections.
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This plan is not complete without the Assumptions and Important Disclosures pages appearing at the end.
1854148-2-2 March 28, 2016
 Detailed Cash Flow during Retirement

New Resident

$800,000

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$700,000

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$600,000

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$500,000

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$400,000

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$300,000
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$200,000
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$100,000
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$0
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90
65*

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Social Security Shortage After-Tax Income Need

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Qualified Retire Liquidation Before-Tax Income Need

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

This plan is not complete without the Assumptions and Important Disclosures pages appearing at the end.
1854148-2-2 March 28, 2016
 Goal Coverage during Retirement

New Resident

100%

90%

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70%

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Goal Coverage

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30%

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20%

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Needs Covered Shortage

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Percent
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Description Total Covered Shortage Covered

Income Needs $3,119,999 $1,011,539 $2,108,460 32%
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Values are reflected in todays dollars by discounting at a 3.00% inflation rate.

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Summary of Savings Alternatives to Fully Cover Retirement Needs

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Annual Annual Additional Account

Pre-Retirement Retirement Balance Required Level Monthly
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Return (%) Return (%) at Retirement Deposit

Taxable 7.0% 5.0% $4,983,006 $4,881
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Tax-deferred 7.0% 5.0% $6,427,287 $3,281

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Tax-free 7.0% 5.0% $4,442,076 $2,266

Tax-deductible 7.0% 5.0% $6,441,885 $3,286
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Return rates used for the growth of investments are hypothetical assumptions you believe are reasonable for this plan
and are not guarantees or projections.

This plan is not complete without the Assumptions and Important Disclosures pages appearing at the end.
1854148-2-2 March 28, 2016
 Retirement Income Objectives Starting on January 1, 2053 - Deferring
401(k) Contributions
New Resident

Client Information
New
Age at End of Year 28
Retirement Age/Year 65 / 2053
Assumed Death at Age/Year 90 / 2078

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Income Needs during Retirement

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Annual

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Amount Annual Annualized
Essential (in today's Increase Amount at
Description Need Individual Applicable dollars) Rate Retirement

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Retirement Expense Y New Jan 1 2053 to Dec 31 2078 $120,000 3.0% $358,227

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Annual Income Needed $358,227

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The amounts and dates above are based on information provided by you. Annual increase rates used are hypothetical
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rates at which you are assuming an amount will grow over time due to inflation or other reasons.
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1854148-2-2 March 28, 2016
 Resources Available during Retirement - Deferring 401(k)
Contributions
New Resident

Sources of Income
-------------------Before-Tax-------------------
Annual
Income Annual Annualized
(in today's Increase Income at

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Description Individual Applicable dollars) Rate Retirement

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Social Security

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New's Benefit New Jan 1 2053 to Dec 31 2078 $23,408 1.5% $40,608

Annual Before-Tax Income Available $40,608

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Investment Assets Available for Retirement

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Annual Annual

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Beginning Pre-Retirement Amount at Retirement
Description Individual Balance Return (%) Retirement Return (%)

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Beaumont 401(k) New $759 7.0% $18,399 5.0%
New Hospital 401(k) New $0 7.0% $2,575,927 5.0%

Annual Contributions to Assets

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Annual Amount
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Description Applicable (in today's dollars) Annual Increase Rate

Beaumont 401(k)
Pre-Tax contribution Jul 1 2015 to Mar 1 2016 5.00% of Salary NA
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New Hospital 401(k)

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Pre-Tax contribution Jul 1 2018 to Dec 31 2052 $18,000 0.0%

The amounts and dates above are based on information provided by you. Annual increase rates used are hypothetical
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rates at which you are assuming an amount will grow over time due to inflation or other reasons. Return rates used for
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the growth of investments are hypothetical assumptions you believe are reasonable for this plan and are not guarantees
or projections.
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1854148-2-2 March 28, 2016
 Goal Coverage during Retirement - Deferring 401(k) Contributions

New Resident

100%

90%

80%

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70%

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Goal Coverage

60%

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50%

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40%

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30%

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20%

10% fo
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0%
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Needs Covered Shortage

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Percent
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Description Total Covered Shortage Covered

Income Needs $3,119,999 $980,693 $2,139,306 31%
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Values are reflected in todays dollars by discounting at a 3.00% inflation rate.

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Summary of Savings Alternatives to Fully Cover Retirement Needs

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Annual Annual Additional Account

Pre-Retirement Retirement Balance Required Level Monthly
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Return (%) Return (%) at Retirement Deposit

Taxable 7.0% 5.0% $5,078,319 $4,957
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Tax-deferred 7.0% 5.0% $6,533,385 $3,335

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Tax-free 7.0% 5.0% $4,520,217 $2,306

Tax-deductible 7.0% 5.0% $6,552,911 $3,342
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Return rates used for the growth of investments are hypothetical assumptions you believe are reasonable for this plan
and are not guarantees or projections.

This plan is not complete without the Assumptions and Important Disclosures pages appearing at the end.
1854148-2-2 March 28, 2016
 Assumptions

New Resident

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 sensitive
to the assumptions, it is important to review them on a regular basis.

Tax Assumptions

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Filing Status New

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Single

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The assumed taxes on your income in this plan are calculated by applying bracketed federal and state taxes. The method

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of calculation takes into account federal and state tax rates, filing status, exemptions, certain federal tax deductions
which you have supplied, tax credits, gifts to charity, alternative minimum tax (AMT), Social Security tax and Medicare
tax, using publicly available information from the current IRS Form 1040, and also taking into account future tax rates

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when those are known from currently enacted legislation.

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On January 1, 2013, the U.S. Congress adopted the American Taxpayer Relief Act of 2012 (ATRA, The Act). The Act
allows the Bush-era tax rates to sunset after 2012 for individuals with incomes over $400,000 and families with incomes

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over $450,000. It permanently patches the alternative minimum tax (AMT), revives many now-expired tax extenders,
including the American Opportunity Tax Credit, and changes the estate tax rate and exemption amount.

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The changes made to personal and estate taxes (including credits, exemptions, etc.) are being made permanent and
therefore, the As Legislated and No Sunset scenarios are no longer available. The estate tax exemption for 2015 is
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$5,430,000 per person (subject to inflation), or $10,860,000 per couple. The portability of an unused spousal exclusion
has also been made permanent by the Act. The top tax rate bracket is 40%. Estate and gift taxes continue to be unified,
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as part of the permanent part of the Act. The stepped-up basis provisions that were extended in the prior tax act are
continued and made permanent.
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ATRA provides for a top dividend and capital gains rate of 20%, higher than the top rate of 15% in 2012, but below
ordinary income rates. This preferential rate still only applies to long-term capital gains, and not to short-term gains.
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These provisions have also been made permanent, without any sunset option.
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Inflation Assumption 3.00%

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Surplus and Liquidation Rates of Return

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-----Annual Rate of Return-----

Planning Analysis Pre-Retirement Retirement
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Retirement 7.00% 5.00%

Assumptions for Deferring 401(k) Contributions
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Inflation Assumption 3.00%

Surplus and Liquidation Rates of Return

-----Annual Rate of Return-----

Planning Analysis Pre-Retirement Retirement
Retirement 7.00% 5.00%
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1854148-2-2 March 28, 2016
The amounts and dates above are based on information provided by you. Return rates used for the growth of
investments are hypothetical assumptions you believe are reasonable for this plan and are not guarantees or projections.

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1854148-2-2 March 28, 2016
 Important Disclosures

Page 1 of 5
I mp o r t a n t Di s c l o s u r e s

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

Northwestern Mutual financial advisors distinguish themselves by designing plans that can achieve your goals using

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these core principals. Once the financial plan has been created, the next step in the financial security planning process is

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to select the right insurance and investment products and services to implement the plan.

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We dont believe in taking the kinds of risks necessary to beat the market, risks that inevitably lead to investment
losses in less favorable times. In fact, our approach is to minimize risk without sacrificing the potential for growth.

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However, no approach used in the plan can guarantee a profit or protect against loss.

Northwestern Mutuals Planning Process: We establish enduring relationships with our clients, typically meeting

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with them at least once a year to see what has changed and to make sure their course continues to be true. Your

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Northwestern 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 Personal

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Planning 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.
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Depending on your circumstances, this plan may recommend you increase the amount you are saving/investing to reach
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retirement income, education funding or other wealth accumulation goals. It may include an asset allocation
recommendation to diversify investment holdings to be in alignment with your risk tolerance and time horizon. It may
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also 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 be
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met using any of the products and services your financial advisor can offer you. However, you are under no obligation
to purchase anything. You are free to implement any part of this plan with any product provider, or not at all.
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About Our Qualifications: Should you decide to implement your plan, your financial advisor is able to work with you
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in a variety of different ways:

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As an agent of The Northwestern Mutual Life Insurance Company (NM), your financial advisor is licensed as an
insurance producer. In this capacity your financial advisor is able to sell and service various types of Northwestern
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Mutual insurance products, such as life insurance, disability income insurance and annuities that can help protect
you and your family from adverse financial impact if you die prematurely or become disabled and also may give
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you financial security during retirement. Your financial advisor is part of Northwestern Mutuals exclusive
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distribution system. Exclusivity means that Northwestern Mutual makes its products available for sale only through
Northwestern Mutual agents such as your financial advisor and that your financial advisor will offer suitable
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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 also be
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able to sell and service insurance products offered by other companies.

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

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1854148-2-2 March 28, 2016
 Important Disclosures

Page 2 of 5
As a registered representative for Northwestern Mutual Investment Services, LLC (NMIS), a broker-dealer and
registered investment adviser owned by NM, your financial advisor has a securities registration that enables him/her
to sell and service mutual funds from hundreds of fund families, as well as 529 and Coverdell college savings plans,
and variable insurance products. Some NMIS registered representatives are able to offer their clients stocks, bonds,
ETFs and other securities.

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As a representative of Northwestern Mutual Wealth Management Company, your financial advisor can offer you
investment management and advisory services based on his or her qualifications, as well as trust and private client

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services. NMWMC has disclosure brochures for the different types of services it offers that you may request from
your financial advisor.

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

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Your financial advisor can work with you as an advisor with respect to investment management services. However, your
financial advisor does not provide financial planning for a fee and does not receive any compensation for helping clients

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analyze where they stand compared to their financial goals.
Compensation: Although the financial planning process is important, by itself, it will not meet your needs for financial

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security. In order to become more financially secure, you have to act. Your financial advisor is compensated only when
you take action, by purchasing insurance, investments or advisory services. As an insurance agent and registered
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representative, your financial advisor receives transaction-based compensation in the form of commissions which vary
from product to product and are typically expressed as a percentage of the insurance premium paid or the amount paid
for an investment or annuity or the accumulated value of investments. Typically, the amount of commission your
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financial advisor receives is tied to the amount of premium you pay, or the amount that you invest or accumulate in an
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investment or annuity.
As a representative of NMWMC, your financial advisor receives as compensation a percentage of the advisory fees you
pay if you are a client of NMWMC advisory programs, or a percentage of the fees you pay to receive trust or private
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client services.
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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 on
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commissions received. Your financial advisors total compensation for insurance products is designed to encourage
long-term relationships and a quality business.
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Northwestern Mutual financial advisors know that in the long run they will benefit most by serving you well. Your
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interests and theirs align because they rely heavily on the referrals they receive from satisfied clients. Nevertheless, the
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fact that your financial advisor receives transaction-based compensation when recommending investment and insurance
products can present a conflict of interest. Northwestern Mutual addresses this potential conflict of interest by educating
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its financial advisors to act in your interests and by having a supervisory system that helps to ensure that insurance and
investment products are appropriately sold.
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Perhaps the best evidence that any company is meeting the needs of its clients is the loyalty of those clients. For
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insurance companies, the measure of client loyalty is persistency (i.e., payment of renewal premiums). Northwestern
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Mutual experienced 97% persistency on its life insurance products in 2014. Prepared and calculated by The
Northwestern Mutual Insurance Company, Milwaukee, Wisconsin.

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1854148-2-2 March 28, 2016
 Important Disclosures

Page 3 of 5
On the investment side, the rate of compensation paid to NMIS registered representatives and NMWMC financial
advisors increases if the revenue generated from the sales and servicing of investment products and advisory services
reaches certain thresholds. This is typical in the industry. Your financial advisor is eligible for a bonus, depending upon
whether they meet specified levels of investment (including advisory services) and insurance production. If they qualify,
the bonus rate ranges from 2-5% of their annual investment production. However, it is important to note that because the

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compensation or bonuses paid to representatives for selling investments and advisory services are not product specific,

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there is no incentive for them to sell you any particular investment. For information about how NMIS and its registered
representatives are compensated for the sale of mutual funds, please refer to the brochure: What Every Investor Should

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Know About Mutual Funds, available at:

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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. Life
insurance (including life insurance with long-term care benefits), disability insurance and annuities are issued by The

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Northwestern Mutual Life Insurance Company, Milwaukee, WI. Long-term care insurance is issued by Northwestern

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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 of NM member FINRA and SIPC. Variable annuities and variable

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insurance are underwritten by NMIS. Investment advisory, investment management, and trust and private client services
are offered by Northwestern Mutual Wealth Management Company(NMWMC), a limited purpose federal savings bank
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and a wholly owned company of NM. Investment products and trust services are not insured by the FDIC and are not
deposits or other obligations of or guaranteed by NMWMC, NMIS or NM. All investments are subject to risk including
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the possible loss of principal invested.
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If you see the names of more than one Northwestern Mutual financial representative on the cover page of this plan, the
above disclosures assume that your financial advisor is the person whose name appears first, at the top of the list, who is
assumed to have prepared this plan for you. Other representatives listed on the cover page of this plan may have
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different affiliations or capabilities. Please see those representatives for more information about how they do business.
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Certified Financial Planner Board of Standards Inc. owns the certification marks CFP, CERTIFIED FINANCIAL
PLANNER, CFP (with plaque design) and CFP (with flame design) in the U.S., which it awards to individuals
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who successfully complete CFP Board's initial and ongoing certification requirements. The Chartered Advisor for
Senior Living (CASL) designation is conferred by The American College of Financial Services.
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Assumptions in Your Plan: Planning is useful for a variety of obvious reasons, but under no circumstances should you
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believe that this plan is a prediction or projection about the future. In some parts of this plan, you estimate what you
think your income and expenses will be in the future. You may also estimate inflation, taxes, and how your investments
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will perform. Think of this plan as one large what if scenario. You may instruct your financial advisor to use any
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assumptions that you believe are appropriate for your plan. Your financial advisor, NM, and its subsidiaries are not
projecting or forecasting that the rates that you see in your plan will occur in the future. Charts or illustrations used in
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this plan are for illustrative purposes and are not intended to represent the performance of any insurance product or
investment.
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This publication was compiled by Northwestern Mutual and does not contain legal or tax advice. It is intended
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solely for the information and education of Northwestern Mutual clients and their legal or tax advisors. It is not
intended to be used and cannot be used to avoid any federal tax penalties that may be imposed on a taxpayer.
Taxpayers should seek advice regarding their particular circumstances from an independent legal, accounting, or
tax advisor. Tax and other planning developments after the original date of publication may affect these
discussions.

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1854148-2-2 March 28, 2016
 Important Disclosures

Page 4 of 5
The Information in Your Plan: The information contained in this plan is for informational purposes only and may not
reflect all policies, holdings or transactions, their values, costs, charges, or proceeds in your portfolio. This plan was
prepared based on information provided by you and by various other sources. This plan is not an official document or
account statement, and has not been audited or verified. You provided the information upon which this plan was
prepared however, for some assets that are held with NM or its subsidiaries, your financial advisor may have chosen to

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gather some of the information in this plan from sources including The Northwestern Mutual Life Insurance Company

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and Northwestern Long Term Care Company, NMIS, NMWMC, Pershing LLC, member FINRA, NYSE and SIPC (the
carrying broker-dealer for NMIS accounts and most NMWMC accounts), and Albridge Solutions (data consolidation).

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Some investment assets included in this report may be Direct to Fund accounts, which mean those assets are
maintained and controlled by a mutual fund family or its transfer agent, not NMIS or its clearing broker Pershing. NMIS

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is a member of SIPC (Securities Investor Protection Corporation), which protects the value of securities in customers'
NMIS accounts up to $500,000 (including up to $250,000 for claims for cash). Assets in Direct to Fund accounts held
by outside mutual fund families are not covered by NMIS SIPC coverage. An explanatory brochure concerning SIPC is

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available upon request or at www.sipc.org. For additional information regarding excess SIPC protection that NMIS

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clearing firm, Pershing, carries through a private insurer, Lloyds of London, please see www.Pershing.com. For answers
to any questions regarding an outside mutual fund familys SIPC coverage, you may either contact your financial
advisor or the appropriate mutual fund family, or refer to the mutual fund familys statement regarding SIPC

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membership. SIPC coverage does not protect against potential losses due to market fluctuation.

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You should not rely on this plan to determine the value of your assets. Any decisions made by you, based on such
information, are made at your risk. The information in this plan does not in any way alter or supersede the terms of any
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policy, contract, confirmation or statement received from NM, NMIS, NMWMC, their subsidiaries and affiliates, or
other organizations. NM, NMIS, NMWMC, and their affiliates do not make any representations or guarantees as to the
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accuracy of such information. We encourage you to review and maintain the original, official reporting documents
relating to the assets in this plan (contracts, policy statements, account statements, confirmations, etc.). You should refer
to the official documents when determining the value of your assets. If you elect to purchase any product or service to
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implement any portion of your plan, please refer to your policy, contract, or most recent confirmation and account
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statements for detailed 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 this
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plan is solely an estimate for analysis purposes only, and is not intended to constitute advice on whether or how to
exercise any ESOs or whether to buy or sell the stock underlying any ESOs. Your financial advisor should be relying
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upon information you have provided from your employer about the details of the terms regarding any ESOs. ESOs are
by their nature more volatile than the underlying shares of stock. Please consult your tax professional or tax advisor
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regarding the possible tax consequences of exercising or selling ESOs.

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

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Effective income tax rate: The combined state and federal tax rate actually paid on all of your total income. The annual
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effective rate can be determined by dividing the tax you paid in the year by your total income for the year. The effective
rate will always be lower than the marginal income tax rate.
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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 not
consider the effect of exemptions and deductions. The marginal income tax rate is especially useful in evaluating the tax
benefit derived from additional income or deductions.

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1854148-2-2 March 28, 2016
 Important Disclosures

Page 5 of 5
Non-qualified assets: These types of assets generally do not meet federal tax requirements for deferred tax treatment
with respect to interest, dividends and realized capital appreciation. Contributions made to these assets are not
tax-deductible. Examples of non-qualified accounts/arrangements include personal checking and saving accounts, as
well 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.

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Qualified assets: These types of assets generally meet federal tax requirements for deferred tax treatment with respect
to interest, dividends and realized capital appreciation. Contributions made into these accounts by the employer or the

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employee are generally tax deductible (except for Roth IRAs, Coverdell ESAs and 529 plans). Examples of qualified
accounts/arrangements include IRAs, 403(b) plans, 529 plans, 457 plans, pension/profit sharing plans, Simplified

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Employee Pension (SEP) plans, and 401(k) plans.

Pension: A pension is a sum to be paid regularly or in a lump sum to a person, typically following retirement from

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service. Income shown in the plan as being from a pension may either be from pension plans or from portfolio income
annuities.

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