1 Achieving Financial Success: Small Steps for a Bigger Retirement

2 TCG Group of Companies A fee-only approach to retirement and investment services

3 Region 10 RAMS Includes 292 plans across Texas with over 230,000 participants Investment Advisory Committee (IAC) 457(b) Tax-Deferred Savings Plan Voluntary, pretax deferrals from paycheck Closest governmental equivalent to 401(k) TERRP (Teacher/Employee Recruitment and Retention Program) 401(a) plan 457 FICA Alternative Plan Part-time or substitute 403(b) Third Party Administration

4 RAMS Investment Advisory Committee (IAC)Meets every quarter to review investments and all matters of the plan Made up of representatives from participating districts TCG Advisors does research for and gives suggestions to the IAC The IAC has authority to replace underperforming investments Remember that all investing involves risk.

5 Region 10 ESC: 457(b) Retirement Savings PlanProviders selected through a competitive process High quality no-load and load-waived mutual funds Education provided by a financial advisor Full disclosure of fees No surrender charges or other penalties to transfer funds Fiduciary protection Managed portfolio or self-directed investment options Remember that all investing involves risk.

6 Remember that all investing involves risk.RAMS Plan Investments 15+ Mutual Funds: Choose own allocation High Quality, No-Load and Load-Waived Low Cost Funds 6 Model Portfolios — No Additional Fees Capital Preservation Conservative Moderately Conservative Signature Portfolio Growth Aggressive Growth Remember that all investing involves risk.

7 TRS Pension & The Income Gap

8 TRS Retirement vs. Corporate RetirementIncome in retirement is very different for Texas teachers than it is for their spouses and neighbors (and financial advisors) Teacher Neighbor Source: Region 10 Education Service Center

9 TRS Vesting 5 65 20 60 30 50 Vesting Schedule Yrs of Service Age TRS Members after 9/1/2007 — Minimum age 60 to retire and receive unreduced benefits UPDATE: Current Members as of 8/31/2014 — If you are not Vested (5 years) — Minimum age 62 to retire and receive unreduced benefits Added in line about age 60

10 TRS Retirement FormulaYears of Service (x) State Factor 2.3% (x) Average 3/5 Highest Years of Income Years of Service: State Multiplier (2.3%): % Average Income: $60,000 Maximum Benefit: $41,400

11 Sample TRS Form

12 TRS Retirement FormulaRetirement Age: 60 Service: 30 Years Last Year / High 3 Yr. Salary: $60,000 (Full TRS benefit with 2.3 Multiplier with no survivor benefit) $60,000 31 Gross Income $41,400 Retire at Age 60

13 The Target Savings AmountInvestment Needed to Replace Difference of $18,600 Annually (TRS Benefit vs. Pre-Retirement Income): $300,224* *Assumptions include a lump sum invested at 5% interest, with annual amount paid at beginning of each year for 30 years. This rate is assumed for illustration purposes only and is not guaranteed.

14 Taking Aim at the TargetYears of Savings Monthly Contribution 40 $150.01 30 $297.39 20 $646.55 10 $1,822.87 Assumes an 6% annual return after fees and expenses for illustration purposes only, not guaranteed.

15 Inflation vs. State Retirement IncomeTRS does NOT have Cost of Living Adjustments (COLA) Inflation vs. TRS Income 1.0% Growth 3.0% Growth Hypothetical illustration showing the potential growth of an employee’s TRS income at 1% as compared to the same income increased by an estimated 3% inflation growth.

16 Your Purchasing Power vs Inflation

17 Increase Salary — Good Luck! Increase Years of Service CreditsMaximizing TRS Increase Salary — Good Luck! Increase Years of Service Credits Work longer Purchase Service Credits Types of Service Credits Withdrawn, Out-of-State, Military, Unreported or Substitute, etc. Cost varies depending on type of service Contact TRS for cost estimate

18 What Are These??? 403(b), 457, 401(k), IRA...Sections of the Internal Revenue Code that created different kinds of retirement plans They are like a Shield to protect your Investments from Taxes Don’t confuse the Shield with the Investments Important Note: There is no total escape from taxes. No matter which plan you use, you will eventually pay some taxes. However, the impact of taxes is usually much less with a tax deferred plan. Remember that all investing involves risk.

19 Comparison: 403(b) & 457(b) PlansFeature 403(b) 457(b) Individual vs. Group Plan Most have higher fees, pay commission/sales loads. Limited number of no commission options Low fees relative to most 403(b) plans; no commissions, full disclosure of fees Penalty to withdraw fund (+ income tax) 10% (goes away at age 59½ or age 55 and retired) None Investment Options Fixed/Variable Interest Annuities or Mutual Funds/Custodial Accounts Fixed Annuity or Self-Directed Mutual Funds Access to Funds Termination of Employment, Death, Disability, Retirement, Age 59½ (even if still employed), Hardship or Loans Termination of Employment, Death, Disability, Retirement, Unforeseeable Emergency (no access at age 59½ ) Investment Committee/Advisor Oversight No Yes Contribution Limits (can contribute to both plans) 2016: $18,000; $24,000 age 50+ Roth Accounts Available

20 Abuses in Educator Retirement InvestmentsExcessive Hidden Fees Inappropriate Types of Investments Lack of Monitoring of Investments

21 Life Insurance as an Investment Pension MaximizationPossible Schemes Life Insurance as an Investment Pension Maximization Taking the Standard Annuity and buying life insurance with the “savings” Insurance company may raise rates Death benefit needed is usually much higher Annuity Riders Take Lump Sum, Invest, and Beat the State Retirement System

22 Partial Lump Sum Option (PLSO)PLSO: TRS allows you to receive 1, 2 or 3 years of your pension up front. Then reduces your monthly annuity by 10% per year received for the rest of your life. Possible Reasons to Do Poor Health Estate and Critical Need for Heirs (e.g., disabled child) Other Estate Needs — Guarantees money to heirs instead of reversion to retirement system at death No Savings Going into Retirement High Debt Reasons Not to Do You will not be able to invest the money and beat the Retirement System Pay Actuarial Cost for funds; Usually have to earn minimum Net 11.00% if try to match State — Can you do this with no risk?? You have not planned for inflation and budget in retirement, so your income runs short later You will be tempted (and give in) to spend the money you planned to save Remember that all investing involves risk.

23 Shadow Marketing SEC Snoozed as “Shadow Marketers” Skimmed Billions From Retirement Plans Forbes Magazine, Feb. 3rd, 2011, Author: Edward Siedle Nationwide Financial Services and National Association of Counties Nationwide disclosed on website it was paying NACo $7.3M in 2007 to push products Exec Dir said relationship went back to early 1980s ING and NYSUT (teachers union) Marketing to 50,000 teachers making payments up to $3M to union Nationwide Retirement Solutions (NRS) and Alabama state employees association 2010 NRS entered into settlement of $16M Paid association $11.8M in fees and commissions, including trips CGU Life Insurance $8.1M 2002 settlement in a class action involving 14,000 Texas teachers

24 Fee Comparison Annual Fees in One 403(b) RFP Process Conducted byTCG Consulting, LP (an affiliate of TCG Advisors, LP)

25 The Fee Effect Annual Fee Balance 1% $82,549.26 2% $73,599.44 3%$65,824.55 4% $59,057.63 5% $53,156.51 6% $48,000.00 Balance based on 6% earning net of fees with $200 monthly contributions for 20 years at the beginning of the month. Actual rate of return is not guaranteed and is for illustration purposes only. Remember that all investing involves risk.

26 Excessive Fees 12b-1 Fee Withdrawal Charge (a.k.a. Surrender Charge)Generally allows distributors to compensate broker/dealers and representatives for selling their funds. It also can be a charge to cover marketing and distribution costs of the investment. Withdrawal Charge (a.k.a. Surrender Charge) A fee charged by some annuities and funds when an investor takes money out of his or her account. Mortality and Expense Fee (M&E) This applies to some types of annuities and covers insurance related costs. Transfer Fee This is an amount charged by a fund to transfer either within the fund family or to another company.

27 Excessive Fees Expense Deductions Management Fee Wrap Account FeeCharges for investment management, administration and distribution services. Management Fee Also called the investment advisory fee, this represents the company’s cost for managing the money in the fund. Wrap Account Fee Charged by some types of funds for fund management, this is an annual percentage of the investor’s assets in the account. Custodial Fee The charge for safekeeping or physically holding the securities in the fund.

28 The Limits of Fund Rating ServicesFund A Fund B Fund C Fund D Morningstar (Dec 2000)     Forbes (Dec 2000) C A A+ D US News & World Report (Dec 2000) 34 50 10 93 Wall Street Journal (Jan 2001) E B BusinessWeek (Jan 2001) No Rating B+ Talking Points: True insight arises from scientific evaluation of the sources of return in a portfolio. A prospective investor should understand how much of a mutual fund’s performance is based on risk factor exposure and how much is the result of unexplained forces and random error. The chart suggests that mutual fund ratings offered through professional services and the financial media are anything but scientific. Funds A, B, C and D represent actual funds that received grades or ratings from the respective “expert” sources. Proper investment analysis requires a consistent and clearly explained methodology. Before relying on any mechanical rating system to select investment managers, investors should thoroughly understand how the rating was determined. Funds A, B, C, and D are actual funds. They are not identified because the purpose of this illustration is to emphasize that ratings, by themselves, do not provide enough information to make a sound investment decision. Morningstar: Five stars is highest rating; one star is lowest rating. US News & World Report: 100 is highest rating; 1 is lowest rating. Remember that all investing involves risk.

29 Remember that all investing involves risk.Performance for Active vs. Passive Funds Remember that all investing involves risk.

30 Fees for Active vs. Passive FundsTalking Points: While stock markets around the world often outperform the US market, this performance is unpredictable and at times extreme. This table ranks annual stock market performance in US dollar terms for eighteen different global markets (from highest to lowest) over the last twenty-five years. The colors correspond to the countries featured on the next slide, and the patchwork dispersion of colors shows no predictable pattern. Investors who follow a structured, diversified strategy are more likely to capture the returns wherever they happen to occur. Remember that all investing involves risk.

31 Key to Success: DiversificationSource: Determinants of Portfolio Performance (Brinson, Hood, Beebower, 1986) Remember that all investing involves risk.

32 Social Security Issues

33 Remember your TRS Annuity is never reduced by Social Security!

34 Social Security Considerations2 Regulations Government Pension Offset (GPO) Applies to member’s SPOUSAL Social Security benefits (SSA Pub No ) Windfall Elimination Provision (WEP) Applies to member’s OWN Social Security benefits (SSA Pub No ) Periodically bills are filed to repeal GPO and WEP at Federal level — very costly to repeal

35 Remember your TRS Annuity is never reduced by Social Security!

36 Government Pension Offset: SPOUSAL BENEFITYou are eligible for your spouse’s benefit if you retire from an SS-covered and TRS-covered position The “LOOP-HOLE” closed July 1, 2004 Old Law: You were employed by an SS-covered District on your last day of employment Current Law: You have to be employed by an SS-covered District for your last 60 months to be eligible This law uses a two-thirds offset rule Two-thirds of your TRS Annuity benefit will be subtracted from your spousal SS benefit

37 Remember your TRS Annuity is never reduced by Social Security!

38 GPO Example: SPOUSAL BENEFITTRS Pension — $2,100 Spousal SS Benefit — $1,000 Subtract 2/3 of TRS benefit from eligible SS benefit SS Benefit $1,000 — (2/3 of $2,100) $1,400 = $ 400 TRS Member is not eligible for spousal benefit, but receives full TRS annuity TRS Pension — $2,100 Spousal SS Benefit — $1,600 Subtract 2/3 of TRS benefit from eligible SS benefit SS Benefit $1,600 — (2/3 of $2,100) $1,400 = $ 200 TRS Member is eligible for spousal benefit of $200 plus full TRS annuity

39 Remember your TRS Annuity is never reduced by Social Security!

40 Windfall Elimination Provision: YOUR BENEFITDoes NOT reduce TRS Pension Benefit Effects employees who are eligible for their OWN government/state pension and Social Security Uses a factor to calculate your SS benefit income based on ‘Years of Substantial Earnings’ Different than ‘Service Credits’ under SS

41 Remember your TRS Annuity is never reduced by Social Security!

42 SS Service Credits vs. Years of Substantial EarningsService Credits under Social Security (SS) Eligible for 4 credits per year Total of 40 credits to qualify for a benefit For 2016, received 4 credits if earned $5,040 Year of Substantial Earnings Higher income number May accumulate all Service Credits under SS without earning Years of Substantial Earnings

43 Your Estimated Benefits*Retirement: To get retirement benefits, you need 40 credits of work. Your record shows you have at least 22 credits at this time, including assumed credits for last year and this year if you continue to work. *Disability: To get benefits if you become disabled right now, you need 28 credits of work. Your record shows you have at least 22 credits at this time.

44 Remember your TRS Annuity is never reduced by Social Security!

45 Windfall Elimination Provision: YOUR BENEFITYear Substantial earnings 1968–1971 $1,950 1972 $2,250 1973 $2,700 1974 $3,300 1975 $3,525 1976 $3,825 1977 $4,125 1978 $4,425 $4,725 1980 $5,100 1981 $5,550 1982 $6,075 1983 $6,675 1984 $7, $7,425 1986 $7,875 1987 $8,175 1988 $8,400 1989 $8,925 1990 $9,525 1991 $9,900 1992 $10,350 1993 $10,725 1994 $11,250 $11,325 1996 $11,625 1997 $12,150 1998 $12,675 1999 $13,425 2000 $14,175 2001 $14,925 2002 $15,750 2003 $16,125 2004 $16,275 2005 $16,725 2006 $17,475 2007 $18,150 2008 $18,975 2009 $19,800 $19,800 $20,475 $21,075 $21,750 $22,050 Years of substantial earnings Percentage 30 or more 90 percent percent percent percent percent percent percent percent percent percent 20 or less 40 percent* *Actual Reduction cannot be greater than 50% and maximum amount of reduction is $413 for 2015

46 Your Earnings Record

47 Remember your TRS Annuity is never reduced by Social Security!

48 Important TRS Rules You Need to Know

49 Normal Retirement Age and COLIsAll New Members on or after 9/1/2014 Minimum unreduced retirement age to 62 Still have to meet Rule of 80 and at least 5 years of service Early Retirement Reduction — 5% per year before age 62 All Vested Members (5 years of service) as of 8/31/2014 are exempt from this rule Cost of Living Increases (COLI) to Retirees Lesser of 3% or $100 for retirees who retired on or before 8/31/2004 Only if TRS is actuarially sound

50 State — 6.8% Members Districts —1.5% Member ContributionsMust stay at 6.8% or District and Member rates drop Members 7.2% 9/1/2015 7.7% 9/1/2016 +.65% TRS Care Districts —1.5%

51 TRS Computation Year & PLSO9/1 – 8/31 for All Districts and All Positions Year of Service = 90 Work Days in a School Year Exception in Year of Retirement — 1 Semester in School Year Partial Lump Sum (PLSO) Eligibility 5 Year Average — Rule of 90 3 Year Average — Rule of 80

52 Return to Work After RetirementReturn to Work in TRS Covered Position with No Penalty If Retire and Out of TRS Covered Work for 12 Consecutive Months from Retirement Date Surcharge for Hiring Retirees Still Must be Paid Can also return to work and not lose annuity if work ½ time But will result in your having to re-start the 12 month waiting period to qualify for the permanent 12 month exception

53 Old Exceptions No Longer ApplyReturn to Work Old Exceptions No Longer Apply One-half time or less Substitute Substitutes + One-half time 6 Month Exception Acute Shortage Area Principal or Assistant Principal Bus Driver

54 Types of Service CreditsContact TRS for Actual Cost Withdrawn Service Cost: Amount withdrawn plus 8% annual interest Unreported & Substitute Service Cost: Actuarial cost Military Service Purchase up to 5 years Cost basis dependent on when military time was served (+) 8% annual interest Out-of-State Service

55 Out-of-State Service PurchaseMay purchase 1 year of service credit for each year earned under TRS — up to 15 years If the service used will also be used for a pension in another retirement system, then the service purchase is limited to 5 years Estimated cost can be obtained by going to your MyTRS account

56 Compensation in Last Year of EmploymentNew Rule 2016 In the year you retire, if you are on a July 1 contract year, you may be able to get the greater of Your compensation from July 1 – June 30; or Your compensation from September 1 – August 31 Thus, you may be able to retire June 30 without “truncating” your final year of compensation Rule is complex and requires some analysis or contact TRS See New TRS Handbook as of 1/1/2016 page 24

57 Is TRS Stable and Safe? Is it the Best Way to Provide Retirement for Educators?Yes System is over 80.2% funded System is actuarially sound and can pay benefits through 2075 with no additional funding System is mandated and governed by the Texas Constitution TRS is also the most efficient system for providing pension benefits Source: TRS Comprehensive Annual Reports August 31, 2013 and 2014, TRS Pension Benefit Design Study 9/1/2012, and TRS publication “A Great Value for All Texans”

58 What Can I Do To Prepare?

59 TRS Annuity Options Standard Annuity Option 1: 100% Joint SurvivorMaximum benefit for retiree’s life only Option 1: 100% Joint Survivor Reduced annuity, payable for retiree’s life with continuous payments for beneficiary’s life. If beneficiary pre-deceases, retiree’s annuity is increased to standard annuity amount Most common, typically 8-13% reduction from Standard Annuity Option 2: 50% Joint Survivor Reductions range from 4-8% based on same age beneficiary Option 3: 60 Month Period Certain Reduced annuity, payable for retiree’s life with annuity payments guaranteed for a minimum of 60 months If retiree dies before 60th payment, beneficiary will receive the remaining payments Typically 1-2% reduction from Standard Annuity Option 4: 120 Month Period Certain Typically 1-4% reduction from Standard Annuity Option 5: 75% Joint Survivor Reductions range from 6-12% based on same age beneficiary

60 TRS-Care Eligibility Cannot be eligible for ERS, UT or A&M System health benefit Coverage Must take TRS retirement and have at least 10 years service credits; and either Up to 5 years of military service credit Rule of 80; or 30 or more years of service Individuals retiring on or after 9/1/2014 Minimum age of 62 for TRS-Care 2 & 3 Grandfathering — If met rule of 70 or had at least 25 years of service on or before 8/31/2014 Slide that was in previous Reg 10 presentation, but had been removed for other version. Back in.

61 Electing TRS-Care Form 700A will be in your Retirement Packet from TRSA good rule: Always elect TRS-Care for you and your spouse if you are eligible You can cancel later If you will be covered by other health care you can waive TRS-Care and will be allowed back in later — but only have a 30-day window to do so if your other coverage ends Submit form to TRS within 90 days of your retirement date

62 TRS-Care Options Options and premiums are complexVary greatly with whether you are covered by Medicare or not Review the TRS-Care Group Plan Booklet carefully; call TRS-Care for help if you have questions Healthcare in retirement is very difficult to get no matter what the cost This could be the most important “homework assignment” you ever complete

63 Make certain you understand whether to accept or deny coverageLevels of Care Tiers of Coverage — 1, 2 and 3 TRS-Care 1 — basic catastrophic coverage TRS-Care 2 — comprehensive plan TRS-Care 3 — comprehensive plan Lower deductible than TRS-Care 2 Age 65+ Above Options OR Aetna Medicare Advantage Plans 2 & 3 Express Scripts Plans 2 & 3 Make certain you understand whether to accept or deny coverage Slide that was in previous Reg 10 presentation, but had been removed for other version. Back in.

64 Portfolio Allocation Example — Region 10 RAMS 457 PlanYour Allocation should adjust as you get closer to Retirement Remember that all investing involves risk.

65 Remember that all investing involves risk.Fixed Annuity Guaranteed by Issuing Company Surrender Penalty Distribution Options (KNOW how and when you can get your money out) Typically Marketed/Sold by Salesman that are compensated by receiving a commission Lacks diversification Remember that all investing involves risk.

66 Remember that all investing involves risk.Variable Annuity May have high expenses — M&E as well as high management fees Surrender Charges Be careful to avoid new penalties if close to retirement Marketed by commissioned Salesmen Remember that all investing involves risk.

67 Remember that all investing involves risk.Mutual Funds Variety — too many choices Load and No-Load Funds Management Fees Sales Charges A Shares B Shares C Shares M Shares Remember that all investing involves risk.

68 Insurance Protection Insurance Needs Near Retirement 5+ YearsDisability Protection Need Decreases if Vested in TRS Group Policy — Very important Life Insurance TERM — Decreasing Need, Analyze TRS Annuity Options GROUP/INDV TERM Income Replacement, College Funding, Goals Umbrella Coverage YES

69 Longevity Risk How long will I need retirement income?Source: Murray, Nick. “The Exponent of Life Expectancy “Financial Advisor magazine, Mar. 2007:p43.

70 Long-Term Care InsurancePaying for 2 Households? Trend has moved from Nursing Home to In-Home care Can be a Tremendous Drain on Assets Insurance is a Transfer of Risk Only purchase what you need Avoid “Cadillac” policies Do your research — new types of policies

71 TRS Death Benefits — One of these OptionsMust have active TRS service in year Member dies Receive One of the following Options Greater of: 2 x annual rate of compensation for the school year of death; or 2 x creditable compensation in the preceding school year Up to maximum of $80,000 With 5 or More Years of Service: 60 monthly payments equal to your standard annuity without reduction for age; OR Option 1 Lifetime Annuity as of the month prior to Death

72 TRS Death Benefits — One of these OptionsAn amount equal to the accumulated Member contributions in TRS account $2,500 lump sum payment plus a monthly payment: To a beneficiary spouse, $250 per month for life beginning at later of spouse reaching age 65 or the Member's death To a beneficiary spouse who has one or more minor children, $350 per month, continuing until the youngest child reaches age 18. At age 65, the beneficiary spouse would again begin receiving $250 per month for life To minor children beneficiaries, $350 per month with two or more children less than age 18, or $250 per month with only one child under age 18 To a dependent parent beneficiary, $250 per month for life at the later of when the dependent parent reaches age 65 or the Member’s death

73 TRS Death Benefits — One of these OptionsAdditional $160,000 if die due to physical assault in job If not active member, still receive benefits listed if Member’s death occurs during a time when they were eligible to retire or would become eligible to retire without further service before the 5th anniversary of their last day of service as a member; Member’s absence from service was because of sickness, accident, or other cause TRS determines involuntary Member’s absence from service was in furtherance of the objectives or welfare of the public school system; or Member’s death occurred on or after Jan. 1, 2007, while performing qualified military service If do not meet any of these then the beneficiary of a TRS Member is entitled to a return of the Member’s accumulated contributions

74 TRS Disability BenefitsConditions to Receive TRS Disability Member is mentally or physically disabled from the further performance of their job duty; The disability is probably permanent; and The TRS Medical Board certifies the disability May have to be recertified annually Amount of Payments 10 Years of Service or more Lifetime Standard Annuity unreduced for early age retirement (Years of Service X 2.3% X Final Average Salary at disability) Minimum $150 per month Can pick other TRS annuity options but disability actuarial factors apply Cannot later elect a service retirement

75 TRS Disability BenefitsAmount of Payments Fewer than 10 Years of Service Minimum $150 per month Time Period Paid — Lesser of: Number of months covered by (worked under) TRS 12 months for every year of service (months in partial years are also counted) Duration of disability Duration of life If return to work after disability, years of service prior to disability may not be counted in later service retirement (must check with TRS to see)

76 Retirement Checklist Become educatedConsult handbook, online tools & videos or visit counselor Contact TRS 6 months prior to retirement date to submit a request for an estimate and packet TRS Form 18 Verify & complete any service purchase options Complete documents and submit copies of birth records for you and beneficiary TRS Form 30 Retirement Date Payment Options Beneficiary Designation

77 Evaluate TRS-Care Options Terminate employment by effective date Retirement Checklist Evaluate TRS-Care Options Terminate employment by effective date Collect Pension 1st payment is due the 1st business day of the month following first calendar month of retirement Example: May 31st retirement, June wait, July 1st (or first business day) check arrives.

78 Remember that all investing involves risk.Steps to Success Know your goals! How much will I need? Who do I need to provide for? Spouse, Children, Parents, Charities, etc. Any other quantifiable goals? Choose portfolio allocation designed to achieve investment return needed Only take the risk you need to meet the goal Monitor your investments — are they performing? Choose investments to meet goals! Retirement planning is a process not an event! Remember that all investing involves risk.

79 Thank You 900 South Capital of Texas Highway, Suite #350Austin, Texas 78746 (512) Mike Cochran Chris Jamail, CFP® Blake Rhodes, CFP®, AIF® Tyler Webster

80 Important disclosuresTCG Advisors, LP is a registered investment advisor regulated by the U.S. Securities and Exchange Commission (SEC), subject to the Rules and Regulations of the Investment Advisor Act of Registration does not imply a certain level of skill or training. TCG Advisors, LP is a part of TCG Group Holdings, LLP. TCG Group Holdings, LLP, owns and operates several other entities which provide various services to employers across the U.S. Those affiliates (wholly‐owned subsidiaries of TCG Group Holdings, LLP) sometimes provide services to TCG Advisors’ Clients. These affiliates are Total Compensation Group Consulting, LP; TCG Administrators, LP (f/k/a JEM Resource Partners, LP); TCG Benefits (f/k/a The Paragon Group, LP; Paragon National, LP; and Paragon Benefits, LP, collectively). The business activities of these companies are discussed in its ADV Part IIA. TCG Advisors is located in Austin, Texas, and a copy of its Form ADV Part II is available upon request. This presentation is not authorized for use as an offer of sale or a solicitation of an offer to purchase investments in any of the plans discussed or an affiliated entity. An investment in the plans carries the potential for loss. This presentation is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, or as an offer to provide advisory or other services in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. Past performance may not be indicative of any future results. No current or prospective client should assume that the future performance of any investment or investment strategy referenced directly or indirectly in this report will perform in the same manner in the future. Different types of investments and investment strategies involve varying degrees of risk—all investing involves risk—and may experience positive or negative growth. Nothing in this presentation should be construed as guaranteeing any investment performance.

81 Important disclosures CONt.An investment in the plans discussed will involve a significant degree of risk, and there can be no assurance that the investment objectives will be achieved or that an investment therein will be profitable. The hypothetical performance presented herein reflects the reinvestment of dividends and other earnings, the deduction of all management fees, performance-based allocations, brokerage fees and other expenses applicable to the Fund. Investors will experience individual returns that vary materially from those illustrated in this presentation depending on various factors, including but not limited to, the timing of their investment, the level of fees, and the effects of additions and withdrawals from their capital accounts. Certain of the performance information presented herein are unaudited estimates based upon the information available to the Firm as of the date hereof, and are subject to subsequent revision as a result of the Fund’s audit. Past performance is not necessarily indicative of the future performance or the profitability of an investment in a plan. An investment in a plan will be subject to a wide variety of risks and considerations as detailed in the offering documents. The information set forth herein will be qualified in its entirety by the information set forth in the offering documents. This presentation includes forward-looking statements. All statements that are not historical facts are forward-looking statements, including any statements that relate to future market conditions, results, operations, strategies or other future conditions or developments and any statements regarding objectives, opportunities, positioning or prospects. Forward-looking statements are necessarily based upon speculation, expectations, estimates and assumptions that are inherently unreliable and subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are not a promise or guaranty about future events.

82 Important disclosures CONt.The projections or other information generated herein regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. There are frequently substantial differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.