19. Tax Benefits of a Rollover $100,000 for 10 years with a 10% Return Distribution Reduced by Taxes Annual Earnings Reduced by Taxes 100 % of Distribution Invested No Taxes on Annual Earnings Note: Taxes will be due on the Direct Rollover upon withdrawal. The above is a hypothetical illustration only and is not intended to reflect actual investment performance.
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24. Investing Your Distribution Analyze Your Situation See Your Tax Advisor What is a Stock? Bond? Mutual Fund? Investment Selection & Asset Allocation
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32. 91.5% of Portfolio Variance is Determined by Asset Allocation Strategic Asset Allocation 91.5% Security Selection 4.6% Other Factors 2.1% Market Timing 1.8% Source: Brinson, Singer, and Beebower, “Determinants of Portfolio Performance II”: An Update, “ Financial Analysts Journal”, May-June 1991.
33. Stocks, Bonds and Inflation $15,091.10 $3,246.39 $78.78 $20.19 $11.72 $0.10 $1.00 $10.00 $100.00 $1,000.00 $10,000.00 1925 1935 1945 1955 1965 1975 1985 1995 2000 2002 2007 Large Company Stocks Small Company Stocks Long-Term Government Bonds Treasury Bills Inflation 1925 - 2007 Source: Stocks, Bonds, Bills and Inflation 2008 Yearbook, ™ Ibbotson Associates, Chicago. Large Company Stocks represented by S&P 500 (a registered trademark of Standard & Poor’s Corporation). Small Company Stocks are from an index of the 9th & 10th (lowest) capitalization stocks of the NYSE. Long-term U.S. government bonds represented by the Salomon Brothers Long-Term Government Bond Index, cash as measured by 30-day Treasury bills and inflation measured by the Consumer Price Index for all urban consumers (CPI-U). Dividends are reinvested. Past performance is no guarantee of future results. Indices are unmanaged and are not available for direct investment.
34. Short-Term Performance is Hard to Predict . . . Source: Stocks, Bonds, Bills, and Inflation 2008 Yearbook, ™ Ibbotson Associates, Chicago. Bonds as represented by the Salomon Brothers Long-Term Government Bond Index, Stocks are measured by the S&P 500® (a registered trademark of Standard & Poor’s Corporation) and Cash as measured by 30-day Treasury bills. The indices are unmanaged and are not available for direct investment. The S&P 500 includes dividend reinvestment. Past performance is no guarantee of future results. Stocks Cash Bonds
35. . . . But Over Time, Stocks Tend to Out Perform Other Investments Source: Stocks, Bonds, Bills and Inflation 2008 Yearbook, Ibbotson Associates, Chicago, IL. Long-term U.S. Government bonds represented by the Salomon Brothers Long-Term Government Bond Index, common stocks are measured by the S&P 500® (a registered trademark of Standard & Poor’s Corporation) and Cash as measured by 30-day Treasury bills. The indices are unmanaged and are not available for direct investment. The S&P 500 includes dividend reinvestment. Past performance is no guarantee of future results.
37. The above Asset Allocation Models are intended to provide a guide in the allocation of your total financial assets. The actual allocation of all or any portion of your financial assets may not correlate to the percentages shown for the applicable Model. Stifel does not predict nor guarantee actual results of an asset allocation or investments made in connection with a suggested allocation. Any changes in your financial situation should be reviewed with your Stifel Financial Advisory for a determination of whether changes in your portfolio allocation are necessary. Stifel also encourages you to periodically review your allocation with your Stifel Financial Advisor. Small company stocks may be riskier and more volatile than larger, more established company stocks. International investing is subject to the risk of currency fluctuations and political and economic events. Sample Asset Allocation Models Cash Fixed Income Large Cap Stocks Mid Cap Stocks Small Cap Stocks International
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40. Member SIPC and NYSE Questions? This presentation is for educational purposes only. It is recommended that you seek the aid of a competent tax advisor or tax attorney to assist you with tax advice and guidance.