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October 30, 2012

Presentation by:

Christie ChengSr. Relationship ManagerRetirement Solution Group, LLC

Q3 401(k) Review:Defense Wins Championships

“Securities offered through Ausdal Financial Partners, Inc, 220 North Main Street, Davenport, IA, 52801, 563.326.2064, member FINRA, SIPC. Advisory services provided by Ausdal Financial Partners. Retirement Solutions Group and Ausdal Financial Partners, Inc are separately owned and operated companies.”

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401(k) 101

■ Retirement Monies � Not a holiday savings account� Is your social security going to be enough?

■ Defer 0 – 100% of pay, but not more than annual limit of $17,000 (2012)� Traditional, Pre-Tax� Roth, After-Tax� Catch-Up Contributions ($5,500)

■ Investments� Do it yourself, mutual funds� Little help, risk based models� Auto-Pilot, age based models/RIA solutions

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Most expected a soft year in the market for 2012, but where has S&P 500 been through the first three quarters?

(source: Standard & Poors)

- 2 %8.7 %16.4 %

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Answer: C… 16.4% Is that possible???

Think about that for a moment.

■ That would annualize a year well over 20% in the S&P 500

■ The “summer selloff” never happened

■ Q3 statements have gotten people optimistic again

But…

■ This is one market/index, not true representation of most people’s account

■ The year is NOT over, remember Q3 of 2011

■ QE3 has created a steroid for some equities

■ Rollercoasters go up and down, but we are still on a rollercoaster

Retirement Solution Group

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Agenda

■ What Matters?

■ What Has Been Happening in 2012?

■ What To Do?

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What Matters?

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Why 401(k)/Retirement Plans Matter

■ Situation: In 2012 Fidelity reports the highest average participant account balance in 401(k)’s ever at just under $74,600. We call it the “$100,000 problem.”

■ Complication: Lump sum vs. income stream.

■ Result: At a standard 5% income payout in retirement a $100,000 account yields $5,000 per year as a social security supplement. Is that really your goal?

� The key is “Retirement Readiness”

Retirement Solution Group

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Limits for 2012

■ Deferral Limits: � $17,000 for 2012� $5,500 in catch-up contribution for participants 50 or older (Plan dependent)

Question:

■ Which of these variables changed by 20% will have the GREATEST IMPACT on Retirement Readiness:

1. Retiring 5 years early at age 62

2. Contributing 8 years earlier at age 34

3. Increasing the 7.11% ROR by 20%

4. Increasing the 6.00% Deferral by 20%

5. Increasing the 50 cent match by 20%

6. Decreasing the 72bp fee by 20%Retirement Solution Group

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RRR is What Matters (Source: FBi)

Retirement Solution Group

• The sensitivity analysis below shows the impact on the Retirement Readiness Ratio of 87% by changing 6 important retirement assumptions by 20% (except for Early Retirement where the reduction is the earliest age one can begin receiving Social Security):

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What Happened in 2012?

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Markets in 2012 (Source: Morningstar as of 10/26/12)

US STOCKS: � S&P 500, YTD 14.26 % & 1 Year 16.23 %� S&P 400, YTD 12.19 % & 13.06 %� Russell 2000, YTD 10.99 % & 13.46 %

International: YTD� EAFE, YTD 10.91 % & 6.46 %� EM, YTD 8.11 % & 3.46%

BONDS: YTD� Core Bond, YTD 3.84 % & 1 Year 5.11 %� US T-Bills, YTD 0.07 % & 1 Year 0.07 %

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What Matters…

Still Europe: � Spanish Bond Yields� Greece Missing Deadlines

Slowed Growth� Q1 Better than Expected� Q2 Worse than Expected� Q3 MUCH Better than Expected

Economic Reality (Source: USBLS)� Unemployment as of September 2012 = 7.8% � Q3 2012 GDP growth (est.) = + 2%� 2011 GDP = $15.094 Trillion� Deficit as of Q3 2012 = $16.015 Trillion

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Europe Again… (Slide used in 7/26/11 webinar)

■ Situation: Renewed concerns over 2010 debt crisis focal points (Italy, Ireland, Spain), especially Greece.

■ Complication: Increased political strife reduces markets belief that deal is certain after concerns from Germany become public and there is potential expansion as Italy is identified as having solvency concerns.

■ Result: Anticipated summer sell-off becomes a bit steeper and sooner (May) than initially expected. July 21, France and German deal reported. Review risk tolerance and foreign exposure. This is expected to be an on and off drag on US stocks for the foreseeable future

Retirement Solution Group

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What To Do?

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What is result?

■ Offense or Defense: Do not follow the crowd or chase returns, have a strategy:

� When the general feeling is negative, we tend to be positive� When the general feeling is positive, we tend to be negative� Why there is some concern for equities after great YTD number

• Fiscal Cliff is almost here• Election and lame duck session creates uncertainty• Need to get deficit under control and removal of QE = less government “propping”• Earnings season for fall of 2012 has been a disappointment• Rob Ausdal of Ausdal Financial Partners and others believe that once revised GDP numbers

are trued up, it will be shown the US may have already slipped back into another recession

■ Save More…� The national average in 401(k)’s hovers just below 6%. RSG’s +2 Goal.

■ Have a Retirement Readiness Plan

Retirement Solution Group

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New Limits for 2013

■ 401(k) deferral $17,500, a $500 increase

■ Catch-Up Contribution for those 50 or older $5,500, no increase

■ Reminders:� This is a total for pre-tax, ROTH or both� Most Plans today allow up to 100% of pay deferrals not to exceed these limits� The best thing you can do is control what you can control – your savings rate� The +1% Rule

Retirement Solution Group

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Summary

■ What Matters?� Rollercoasters go up and down

■ What Happened?� Goal is for participants to make “Informed Decisions,”� Solid returns in US equities through first 3 quarters of 2012� But a lot of risk seen on short-term horizon

■ What To Do?� Don’t be a “Vince”

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So What?

Next Steps:

■ Save more, 2013 limits are $17,500 ($23,000 with catch-up provision for those over 50)

■ Review your asset allocation/risk level

■ Volatility will remain for foreseeable future

■ You must decide between offense and defense – RIGHT NOW!

Next Steps:

■ Analyze Situation

■ Select a Path

■ Create a Retirement Plan Calendar

The DOL says the average American Should Save 12%Note: 3.7% Savings Rate (Source: BEA)

Retirement Solution Group

“Investments involve risks and potential loss of principal and are not FDIC insured investments.

Investments and investments in 401k plans are not guaranteed by the federal government or the FDIC, they involve risk including but not limited to loss of principal. Opinions expressed are those of Steve Scott and do not represent the opinions of Ausdal Financial Partners, John Hancock, HRCP or Retirement Solutions Group. They are opinion only and should be not considered as stand alone advice.”

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RSG Participant Support Team

RSG is always available, 866-352-7731

1. Steve Scott, Managing Partner x 210

2. Christie Cheng, Education & Relationship Manager x310

3. Elvia Sanchez, Education & Relationship Manager (Bi-Lingual) x410

4. Megan Dunne, Associate x200

5. Mary Urlich, Participant Transactions x1

“I have no idea about investments, can you help me my choices?”

“How much should I be saving?”

“Not really sure if I am aggressive investor or not, how do I figure that out?”

“What is a stock/bond?”

“Why do people keep talking about Spanish Bonds Yields?”

“Can you help me with my forms?”

Retirement Solution Group