pension structure and maximization 141 north state road suite 1-e briarcliff manor, ny 10510 tel:...

Pension Structure and Maximization

141 North State Road Suite 1-EBriarcliff Manor, NY 10510Tel: (914) 502-0700

www.spsfinancialservices.com

$50,000

Option AMaximum

Option B85%

$50,000 Per Year

$42,500Per Year

$7,500.00

Per Year

Difference

$7,500.00

$7,500.00

$7,500.00

$7,500.00$7,500.00

$7,500.00

$7,500.00

$7,500.00

$7,500.00

= $225,000

You Die

$1,000,000

Pension Company

$50,000 per Year

Pension Company

Pension Company

Pension Company Keeps Death Benefit

You and Your

Spouse are Dead …

Pension Company

has the Money…

…Your Kids Don’t

Real-Life Case # 1 Retiring Officer John Doe Age 43

Final Average Salary $90,000.00

Pension= 50% of FAS or $45,000.00

In Good Health

Life Expectancy- Age 78*

*Source: Social Security Administration

Mrs. Doe (John’s Wife) is the same age and also in good health.

Option AMaximum

Option B85%Difference

$45,000

14% $38,700

$6,300.00Per Year

Officer John Doe

Doe Elects Option A (Full $45,000.00)

Purchases $1,000,000 Life Insurance Guaranteed to Age 100 for $6,000.00

per year*

*Estimate based on 43 year-old male in good health- rates are illustrative and vary from

person-to-person

As per Social Security Rules, Officer Doe dies at

age 78Mrs. Doe Collects $1,000,000 Tax-Free

From the Insurance Company

*Note: The Doe’s Have Paid Approximately $204,000 into the

Policy over 34 years and Will Receive $1,000,000.00 in Death Benefit. In This Case, the Return is Over 8.5%

Tax Free.

Mrs. Doe’s Options:

1. Live on the $50,000 Interest and Leave the Entire $1,000,000 Proceeds to the Children

2. Use It All (Approximately $70,000 Per Year Over 20 years to Compensate

for Inflation)

3. Use What She Needs and Leave the Balance to the Children

End Result:The Doe’s Usually Pay LESS Than the Cost of “Option B” Every Year

Mrs. Doe Has MORE Money and MORE Options In Her Later Years

Kids Receive Whatever is Left Over (Instead of NOTHING) and say nice things about you when you’re gone.