sample financial plan

Steve & Sarah Sm

ithF

INA

NC

IAL

PL

AN

PREPARED BY CHANN

ING HIN

DEL REGISTERED REPRESEN

TATIVE CENTRIC FIN

ANCIAL GRO

UP CHAN

NIN

G.HINDEL@

CENTRICFIN

ANCIALGRO

UP.CO

M

HEADER

A LETTER FROM YOUR REP.

CONFIDENTIALITY AGREEMENT

EXPECTATIONS

YOUR FINANCIAL PICTURE

INCOME PROTECTION

INCOME MAXIMIZATION

PENSION MAX

SOCIAL SECURITY ESTIMATE

OVERALL STRATEGY AND RECAP

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4

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10

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CONTENTS OF YOURFINANCIAL PLAN

CHANNING HINDELREGISTERED REP.CENTRIC FINANCIAL GROUP

Dear Prospective Client:

Most simply - I got into this business to help people understand: how retirement income streams work, how it affects a sound financial strategy, and how to get the most out of their money. To do so, I show my clients how to be more efficient. Contrary to popular belief, you do not have to rely on earning higher returns, taking more risk in the market and living more frugally now to secure a comfortable future. What’s the point of saving up for retirement if it means sacrificing things now?

At Centric, we believe you should be able to enjoy yourselves today without sacrificing tomorrow. We believe there’s a better way to save than what you’re currently doing. We believe in taking less risk in the market, building in more guarantees, and creating a financial plan that works under ANY circumstances. Because you can’t get to the top of the mountain if you lose your ability to climb. We believe protection is the #1 priority in any sound financial plan.

We looked at both of your retirement plans and found the best path for both of you. With Sarah’s pension, we maximized her guaranteed income. In Steve’s retirement plan, we used the leverage of the money he’s already saved to create a six figure income that should provide a very comfortable retirement for you both.

Of course our number one priority is protecting your children’s future. We’ve done that by increasing the life insurance coverage for you both.

In this book, you’ll find your point-by-point, date specific, dollar specific financial plan that showcases some of the strategies we use to get our clients to their goals so that they can enjoy their lives, both today and tomorrow. This book is just an example based on a case study.

I look forward to hearing your feedback on the strategies recommended.

Sincerely,

Channing HindelRegistered Representative

3

WHEREAS, Steve and Sarah Smith have (hereinafter the “Clients”) agreed to furnish certain information to Channing Hindel (hereinafter the “Recipient”) in conjunction with financial planning and estate planning; and

WHEREAS, the Clients have agreed to furnish such information on condition that the Recipient holds such information confidential and does not reveal such information other than in accordance with the terms of this Confidentiality Agreement; and

WHEREAS, the parties desire to set forth their agreement in writing;

NOW THEREFORE, in consideration of the premises and the mutual promises contained herein, the parties agree as follows:

1. The Clients shall furnish to Recipient certain information related to the affairs of the Clients’ confidential information for the purpose of allowing the Recipient to design certain programs and products within his expertise for financial planning and estate planning.

A. Recipient shall accept the confidential information provided by the Clients, subject to the terms of this agreement, and shall utilize such information solely for the purpose of performing the financial planning analysis.

B. Recipient agrees to hold all confidential information in trust and confidence, shall use such information solely for the purpose set forth in the immediately preceding paragraph, and shall not use such information for any other purpose.

C. Recipient shall only make copies of written information provided to Recipient, by the Clients for the purpose of designing his proposed programs and products, and the Recipient shall promptly return any originals and copies of such information at the Clients’ request.

D. In the event any confidential information is to be disclosed to an employee or consultant of the Recipient, he shall require such employee or consultant to execute and be bound by the terms of this Agreement.

CENTRIC FINANCIAL GROUPCONFIDENTIALITY AGREEMENT

2. In the event of breach or threatened breach by Recipient of the provisions of this agreement, the Clients shall be entitled to an injunction restraining Recipient from disclosing, in whole or in part, the confidential information, or from rendering any services to any person, firm corporation, association or other entity to whom such confidential information threatened to be disclosed. Nothing herein shall prohibit the Clients from pursuing any other remedies available to the Clients for such breach or threatened breach, including the recovery of damages.

3. In the event any litigation ensues as a result of a breach or an alleged breach of this agreement, the prevailing party shall be entitled to recover all of the prevailing party’s costs and reasonable attorney’s fees, as fixed by the court having jurisdiction over the controversy.

4. The laws of the State of Ohio shall govern the provisions of this Agreement. The Clients and Recipient agree they are subject to the jurisdiction of the courts of the State of Ohio and to subject any issue with reference to this agreement to the jurisdiction of the courts of the State of Ohio with reference to any legal proceedings commenced to enforce any provisions hereof or for any breach hereof.

IN WITNESS WHEREOF, the parties have executed this Agreement this

_______________Day of________________________, 2015

By: _________________________________________________ Steve Smith

By: _________________________________________________ Sarah Smith

By: _________________________________________________ Channing Hindel

5

• To adhere to the plan set forth in this agreement by the planner so that they might achieve the financial goals they set forth

• To show up on time with all relevant financial information required to any meetings with the planner

• To complete, in an expedient manner, any tests on underwriting required of them by the planner

• To let the planner know, in a timely fashion, of any changes in their financial situation or of their financial goals

• To complete, at minimum, an annual meeting to review the plan, its status, and discuss any changes that need to me made

EXPECTATIONS FOR A SUCCESSFUL CLIENT/ADVISOR RELATIONSHIP:

CLIENT EXPECTATIONS

7

• To adhere to the Confidentiality Agreement set forth in Section 1.

• To examine the client’s financial status with impartiality and with only the clients’ best interest in mind

• To be frank and upfront about potential financial risks and issues the client needs to address, even when that might be in contradiction with the client’s own beliefs

• To complete, at minimum, an annual review of the clients’ plan, its status, and discuss any changes that need to be made

• To expedite any paperwork, checks or other casework relevant to the clients’ needs in a timely manner

ADVISOR EXPECTATIONS

CLIENT SNAPSHOT

AGE RET. AGE INCOME YEARS LEFT SAVINGS RATESteve 33 67 $80,000 34 SteveSarah 32 67 $33,000 35 Sarah

ASSETS TYPE CURRENT VALUE

EST. PRE-‐TAX RETIREMENT VALUE

EXPECTED INCOME

401(k) 65,000.00$ $1,708,186.18 59,786.52$ -‐$ $0.00 -‐$

ROTH IRA 18,750.00$ $623,014.75 21,805.52$ -‐$ $0.00 -‐$

TOTALS 83,750.00$ 2,331,200.93$ 81,592.03$

401(k) ###########Cash Value 736,244.00$ ROTH IRA 402,145.19$

-‐$ ###########

Steve SarahGOAL 100,000.00$ N/A

PROJECTED 81,592.03$ N/AGAP 18,407.97$ N/A

ASSETS NEEDED TO ACHIEVE GOALRETURN NEEDED TO ACHIEVE GOAL

ASSETS NEEDED TO ACHIEVE GOALRETURN NEEDED TO ACHIEVE GOAL

INCOME GOALS

AGE 33 AGE 32RET. AGE 67 RET. AGE 67INCOME $80,000 INCOME $33,000YEARS LEFT 34 YEARS LEFT 35SAVINGS RATE Steve SAVINGS RATE Sarah

Steve Sarah

AGE 33 AGE 32RET. AGE 67 RET. AGE 67INCOME $80,000 INCOME $33,000YEARS LEFT 34 YEARS LEFT 35SAVINGS RATE Steve SAVINGS RATE Sarah

Steve Sarah

YOUR FINANCIAL PICTUREWHERE ARE YOUR ASSETS?

The majority of your assets are in Steve’s Qualified retirement plan. While this portfolio is fairly diversified,

there’s room for improvement. Also, they’re projected to fall $18,407.97 short of their income goal.

Your assets at retirement figures are based off of your current assets, contributions, desired retirement age and assumes a 6% net return on investment on those assets This also shows a pre-tax equivalent of any ROTH or non-qualified assets.

CLIENT SNAPSHOT

9

83,750.00$

2,331,200.93$

2,183,966.69$

401(k)

ROTH IRA

401(k)

ROTH IRA

401(k)

Cash Value

ROTH IRA

83,750.00$

2,331,200.93$

2,183,966.69$

401(k)

ROTH IRA

401(k)

ROTH IRA

401(k)

Cash Value

ROTH IRA

CURRENT TOTAL ASSETS :

ASSETS AT RETIREMENT :

At Centric Financial Group, we maintain any financial plan must begin with protection. Just as one insures their cars and homes against a loss, they should also insure that their greatest asset, their own ability to make money, against a full (death) or partial (disability) loss.

INCOME PROTECTIONAGAINST ALL POSSIBLE OUTCOMES

If you think of a financial plan as a triangle, PROTECTION is the base one must start from. This includes all of your insurance coverages.

Once your protection is in place, only then can you move on to the next stage of your financial plan.

Protection includes insuring your income against all possible outcomes. Just as you insure your house against fire and flood, you must insure your income against death and disability. The rest of the triangle builds upon the foundation of PROTECTION

PROTECTION

SAVINGS

GROWTH

YOUR ABILITY TO MAKE $$ = YOUR GREATEST ASSETPROTECT IT

A SOLID FOUNDATION

JOB A JOB BWORKING 80000 78400DISABLED 0 48000

0 10000 20000 30000 40000 50000 60000 70000 80000

JOB A JOB B

INCOME WHEN WORKING vs DISABLED

WORKING

DISABLED

Based off your current coverages, I would recommend at least a three-year disability insurance policy that will pay you 60% of your income tax-free should you be unable to work due to an illness or injury.

You also are not insured for your full potential income from a life insurance standpoint. Two policies to close the protection gap are essential to a successful financial plan.

The scenario below shows what disability insurance can do for you:

INCOME POTENTIAL is calculated based on your current income earned between now and your projected retirement age. CURRENT PROTECTION reflects the sum of all your life insurance policies as well as your disability insurance.

Job A pays $80,000 per year, but pays nothing if you can no longer work due to injury or illness.

Job B pays $77,600 per year, but pays $48,000 if you can no longer work due to injury or illness.

Which would you rather have?

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RECOMMENDATION:

THIS NEEDS TO BE MADE "SMART

INCOME POTENTIAL

LIFE INS. DISABILITY LIFE INS. DISABILITY

Steve : $2,040,000 $500,000 $0 $1,540,000 $240,000

Sarah : $866,250 $50,000 $0 $816,250 $99,000

CURRENT PROTECTION PROTECTION GAP

MEASURING YOUR PROTECTION GAP

3 STRATEGIES TO HANDLE YOUR RETIREMENT ASSETS

RETIREMENT ASSET STRATEGIES TOTAL ASSETS AT RETIREMENT

ANNUAL INCOME AT RETIREMENT COST TO YOU

ASSETS ONLY (your current strategy) $2,331,200.93 $81,592.03 $12,800.00PERCENT GUARANTEED 0.00%YEARS OF VOLATILITY BUFFER 0.00

COVERED ASSETS STRATEGY $2,183,966.69 $131,273.72 $12,800.00INCREASE OVER CURRENT STRATEGY 60.89%PERCENT GUARANTEED 73.04%

VOLATILITY BUFFER STRATEGY $2,183,966.69 $171,438.94 $12,800.00

INCREASE OVER CURRENT STRATEGY 110.12%YEARS OF VOLATILITY BUFFER 5.09

ASSETS ONLY COVERED ASSETS VOLATILITY INCOME $81,592.03 $131,273.72 $171,438.94% Guaranteed 0.00% 73.04% 0.00%ASSETS $2,331,200.93 $2,183,966.69 $2,183,966.69% INCREASE 0.00% 60.89% 110.12%

COST $12,800.00 $12,800.00 $12,800.00-‐

11/17/14

$0.00

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

ASSETS ONLY COVERED ASSETS VOLATILITY BUFFER

ASSET COMPARISON

$0.00

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00

$140,000.00

$160,000.00

$180,000.00

$200,000.00


INCOME COMPARISON









COST $12,800.00 $12,800.00 $12,800.00-‐

11/17/14

$0.00

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00


ASSET COMPARISON

$0.00

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00

$140,000.00

$160,000.00

$180,000.00

$200,000.00


INCOME COMPARISON









COST $12,800.00 $12,800.00 $12,800.00-‐

11/17/14

$0.00

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00


ASSET COMPARISON

$0.00

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00

$140,000.00

$160,000.00

$180,000.00

$200,000.00


INCOME COMPARISON INCOME COMPARISON

Our goal is to help you use only what money you’re comfortable saving, while increasing your protection and

limiting exposure to the volatility of the market.

INCOME MAXIMIZATIONFOR QUALIFIED RETIREMENT PLANS

#3

#2

#1

The estimate of your current retirement income is based off of the amount of assets you disclosed to us, the number of years you have left until your retirement, and your current savings rates. We assumed a 6% net ROI (return on investment) for all your retirement accounts.

The 3.5% safe initial withdrawal rate is based off of a number of studies, the “Monte Carlo” retirement simulations, and a general tendency towards conservatism when discussing future assets. Naturally, you can take a higher withdrawal rate off of your assets if you choose to, but for every percentage point you increase your initial withdrawal rate by, your chance of running out of money increases exponentially. For instance, going from a 4% initial withdrawal rate to a 5% initial withdrawal rate decreases your money’s chances of lasting 25 years from 70% to

about 35%, unless you have a buffer against the volatility of the stock market, as with the appropriately named strategy. Or, you take the factor of the stock market out of your projected income altogether, as with the covered assets strategy.

The natural goal of most financial planners is to build your pile of money as big as possible. They do this by asking you to invest more, or take more risk. Our goal is to help you use only what money you’re comfortable saving, while increasing your protection and limiting exposure to the volatility of the market. Financial professionals also do this by recommending diversification. While this is a great idea, how diverse can your assets really be if they’re all linked to the stock market in some way? Both of our strategies allow you to use your money more efficiently, so that you can do more with less money, as you can see in this estimate. Even though your total assets will be about 13% larger with your current strategy, your income will be 50 and 100% higher with our two strategies respectively.

As Mark Twain once said, “It’s not the size of the dog in the fight, it’s the size of fight in the dog.”









COST $12,800.00 $12,800.00 $12,800.00-‐

11/17/14

$0.00

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00


ASSET COMPARISON

$0.00

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00

$140,000.00

$160,000.00

$180,000.00

$200,000.00


INCOME COMPARISON

ASSET COMPARISON

A COMPARATIVE LOOK

YEARS

PRO

BABI

LITY

OF

SUCC

ESS

(%)

10 15 20 25 30

0 20

40

60

80

10

0

PROBABILITIES OF SUCCESS AT VARIOUS WITHDRAWAL RATES

3%

4%

5%

6%

13

THE PENSION PROBLEMPensions are one of the oldest retirement plans out there. They provide a guaranteed income for life and take away a lot of the stress associated with 401(k)s and other defined contribution plans; however, they do create an unseen expense, the cost of providing an income for your spouse.

The problem is that people want to take care of their spouse in retirement, so they choose a lower payout on their pension (Joint & Survivor) so they can guarantee an income for their spouse after they’re gone. The only problem is you don’t know how long you’re going to live. If you live long into retirement you could end up paying hundreds of thousands in lost income to provide just a few years of income to your surviving spouse.

Taking the highest possible payout (Single Life Annuity) gives you greater income while you’re living, but provides nothing to your spouse after you’re gone, the problem being it provides nothing to your spouse if you die early in reitrement.

So, how do we balance getting the highest income while we’re living with providing an income for our spouse when we’re gone? This chart illustrates three strategies.

The Pension Plus strategy is designed to give you the highest possible guaranteed income avaiable on your

pension while maintaining costs and limiting risk.

PENSION PLUS STRATEGIESPENSION ONLY (Joint & Survivor) $40,278.30 $0.00 $0.00PERCENT GUARANTEED PENSION INCOME $40,278.30

ADDITIONAL INCOME $0.00

PENSION + INVESTMENT (Your Current Strategy) $47,995.26 $7,716.95 $2,600.00PERCENT GUARANTEED PENSION INCOME $40,278.30

ADDITIONAL INCOME $7,716.95

PENSION + LIFE INSURANCE (Proposed Strategy) $53,204.00 $12,925.70 $2,600.00PERCENT GUARANTEED PENSION INCOME $44,704.00


TOTAL ANNUAL INCOME

INCREASE OVER

PENSION

ANNUAL CONTRIBUTIONS

$323,142.40

$210,818.58

$80,600.00 $80,600.00

$408,765.68

$475,000.00

$0.00

$50,000.00

$100,000.00

$150,000.00

$200,000.00

$250,000.00

$300,000.00

$350,000.00

$400,000.00

$450,000.00

$500,000.00

PENSION ONLY PENSION + INVESTMENT PENSION + LIFE INSURANCE

TOTAL COST

CASH VALUE

PENSION MAXIMIZATIONHOW MUCH DOES MY SPOUSE COST ME?

When comparing these strategies, we have to weigh the cost of each strategy against the benefit. With pension only, there’s no cost in pre-retirement; however, if you live 25 years into retirement, you’d have given up hundreds of thousands dollars in lost income.

With the pension + investment strategy, you’re giving up the contributions you made to the investment; however, that investment genrates you a higher income than the pension only strategy. You also have hundreds of thousands in cash value in your investment 25 years into retirement.

The best strategy, however, is the pension + life insurance. You’re still giving up contributions in pre-retirement to implement this strategy, but having the highest retirement income plus the highest cash value 25 years into retirement gives you by far the most enjoyment of your money.

COST COMPARISON

PENSION PLUS STRATEGIESPENSION ONLY (Joint & Survivor) $40,278.30 $0.00 $0.00PERCENT GUARANTEED PENSION INCOME $40,278.30

ADDITIONAL INCOME $0.00

PENSION + INVESTMENT (Your Current Strategy) $47,995.26 $7,716.95 $2,600.00PERCENT GUARANTEED PENSION INCOME $40,278.30


PENSION + LIFE INSURANCE (Proposed Strategy) $53,204.00 $12,925.70 $2,600.00PERCENT GUARANTEED PENSION INCOME $44,704.00


TOTAL ANNUAL INCOME

INCREASE OVER

PENSION

ANNUAL CONTRIBUTIONS

$323,142.40

$210,818.58

$80,600.00 $80,600.00

$408,765.68

$475,000.00

$0.00

$50,000.00

$100,000.00

$150,000.00

$200,000.00

$250,000.00

$300,000.00

$350,000.00

$400,000.00

$450,000.00

$500,000.00

PENSION ONLY PENSION + INVESTMENT PENSION + LIFE INSURANCE

TOTAL COST

CASH VALUE

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MAXIMIZING YOUR PENSIONCLIENT ELECTS SLA OPTION

The client then selects the single life annuity option on their pension giving the client the highest

possible pension income plus any dividends that the life insurance policy produces.

GUARANTEED INCOME FOR SPOUSE

Annuitizing the death benefit creates guaranteed lifetime income for the spouse. This is why an investment doesn’t work as well. It’s not large

enough to replace the entire survivor’s income.

SPOUSE ANNUITIZES DEATH BENEFIT

In the event of the client’s death, the spouse annuitizes the death benefit of the life insurance,

replacing the survivor income that the spouse would’ve received with joint & survivor.

CLIENT PURCHASES WHOLE LIFE

The client purchases a life insurance policy large enough that in the event of the client’s death,

it replaces the pension income that goes to their spouse if they elect the joint & survivor option.

Year Salary Index FactorInflation36 $32,352.94

Est. AIME FD ###### 35 33,000.00$ 2.37 -‐2.50% ###$3,470.19 ###### 34 33,495.00$ 2.31 -‐2.50% ###$20,910.44 ###### 33 33,997.43$ 2.26 -‐2.50% ###

-‐$ 32 34,507.39$ 2.20 -‐2.50% ###PIA TOTAL ###### 31 35,025.00$ 2.14 -‐2.50% ###

30 35,550.37$ 2.09 -‐2.50% ###Est. AIME TD ####### 29 36,083.63$ 2.04 -‐2.50% ###

816 734.40$ 28 36,624.88$ 1.99 -‐2.50% ###4917 ###### 27 37,174.26$ 1.94 -‐2.50% ###

112.89$ 26 37,731.87$ 1.89 -‐2.50% ###PIA TOTAL ###### 25 38,297.85$ 1.84 -‐2.50% ###

24 38,872.31$ 1.80 -‐2.50% ###23 39,455.40$ 1.75 -‐2.50% ###22 40,047.23$ 1.71 -‐2.50% ###21 40,647.94$ 1.66 -‐2.50% ###20 41,257.66$ 1.62 -‐2.50% ###19 41,876.52$ 1.58 -‐2.50% ###18 42,504.67$ 1.54 -‐2.50% ###17 43,142.24$ 1.50 -‐2.50% ###16 43,789.37$ 1.47 -‐2.50% ###15 44,446.22$ 1.43 -‐2.50% ###14 45,112.91$ 1.39 -‐2.50% ###13 45,789.60$ 1.36 -‐2.50% ###12 46,476.45$ 1.33 -‐2.50% ###11 47,173.59$ 1.29 -‐2.50% ###10 47,881.20$ 1.26 -‐2.50% ###9 48,599.41$ 1.23 -‐2.50% ###8 49,328.41$ 1.20 -‐2.50% ###7 50,068.33$ 1.17 -‐2.50% ###6 50,819.36$ 1.14 -‐2.50% ###5 51,581.65$ 1.11 -‐2.50% ###4 52,355.37$ 1.08 -‐2.50% ###3 53,140.70$ 1.06 -‐2.50% ###2 53,937.81$ 1.03 -‐2.50% ###1 54,746.88$ 1.00 -‐2.50% ###

62 18,140.75$ 10,205.44$ N/A63 19,436.52$ 10,934.40$ 7.14%64 20,732.29$ 11,663.36$ 6.67%65 22,442.70$ 12,625.59$ 8.25%66 24,186.80$ 13,606.77$ 7.77%67 25,915.36$ 14,579.20$ 7.15%68 27,988.59$ 15,745.54$ 8.00%69 30,061.82$ 16,911.88$ 7.41%70 32,135.04$ 18,078.21$ 6.90%

Sarah % INCREASE Steve

SHOULD I WAIT?Knowing how long to wait to begin taking social security benefits can be tricky to figure out. Depending on how much you make compared to your spouse, how long you’ve been working and your age difference can all factor into deciding when to take benefits and which option to select.

In Steve and Sarah’s case, it’s pretty straight forward. Given their current incomes and the assumption that they work until their minimum retirement ages, these are the benefits they would be entitled to, which are higher than either of their spousal benefits would be. So, if they both elected to wait until 67 to start taking their benefits, they could earn nearly $50,000 combined; however, if one of you

ES

TIM

ATE

D

AN

NU

AL

BEN

EFIT

CO

MPA

RIS

ON

SOCIAL SECURITIES ESTIMATEWHAT WILL MY BENEFIT BE?

Per your request, the estimated benefits we show for you are in today’s dollars, and account for an average inflation rate of 2.5% and assumes a 1.5% increase in salary throughout your career that we agreed to use when we began this process. It also assumes a 4.35% annual increase in the bend points of the Social Security benefits calculation, which is what those increases have averaged since 1979.

So, what’s that mean for you? Steve’s monthly benefit at his full retirement age (67) would be roughly $2,027. Sarah’s would be about $1,756 per month.

waits until 70 to take the maximum possible benefit, this increases your guaranteed income floor in retirement by 11-12%. It’s worth consideration.

Currently, you both plan to work until your full retirement age of 67. If those wants or needs should change, we can recalculate how that will affect your benefit and figure out the best option at that time.

$-‐

$1,000.00

$2,000.00

$3,000.00

62 63 64 65 66 67 68 69 70

MONTH

LY IN

COME

RETIREMENT AGE

ESTIMATED SOCIAL SECURITY BENEFIT

$-‐

$1,000.00

$2,000.00

62 63 64 65 66 67 68 69 70

MONTH

LY BEN

EFIT

RETIREMENT AGE


$-‐

$1,000.00

$2,000.00

$3,000.00

62 63 64 65 66 67 68 69 70

MONTH

LY IN

COME

RETIREMENT AGE


$-‐

$1,000.00

$2,000.00

62 63 64 65 66 67 68 69 70

MONTH

LY BEN

EFIT

RETIREMENT AGE


17

83,750.00$

2,331,200.93$

2,183,966.69$

401(k)

ROTH IRA

401(k)

ROTH IRA

401(k)

Cash Value

ROTH IRA

83,750.00$

2,331,200.93$

2,183,966.69$

401(k)

ROTH IRA

401(k)

ROTH IRA

401(k)

Cash Value

ROTH IRA

ASSETS NEEDED 2,857,142.86$ RETURN NEEDED 7.71%ASSETS NEEDED 1,000,000.00$ RETURN NEEDED 4.58%

ANNUAL RETURN NEEDED TO ACHIEVE GOALS

CURRENT STRATEGY

PROPOSED STRATEGY

OVERALL STRATEGYA RECAP OF YOUR FINANCIAL PLAN

If you recall from the first section, your retirement assets are currently spread out among three areas: a qualified retirement plan and a pension. Here’s the snapshot of what your assets (using your current strategy) are projected to look like at retirement based on the assumptions we made.

ASSETS AT RETIREMENT :

CURRENT STRATEGY OUR STRATEGYWhile your current strategy will generate more assets than the strategy we’re proposing, it’s a small difference. And that’s not the point! Especially when you consider that your income using our strategy will much higher than the income you’re currently projected to have!

What allows this to happen is that blue slice of the pie on the right that isn’t there in your current strategy. The uncorrelated cash value of permanent life insurance that isn’t affected by potential stock market downturns is what allows you to generate a higher income. So, that blue piece of pie, even though it accounts for slightly less than 25% of your total assets, is what allows you to increase your income using our volatility buffer strategy without changing your current lifestyle!

As you can see in the chart above, under your current strategy you need nearly three times the number of retirement assets to reach your income goal.

The strategies laid out in this plan are the best thing for you and your family financially. They also stand to increase your expected retirement income by more than 66%.

□ Create living will for the children

□ Complete paramed exam for life insurance

□ Gather all necessary financial statements to keep in one place

□ Review beneficiaries on all retirement accounts and insurance policies

□ Create living will for the children

□ Complete paramed exam for life insurance

□ Find out if parents have long-term care strategy in place

□Review beneficiaries on all retirement accounts and insurance policies

TO DO: Sarah

NOTES:

19

TO DO: Steve

sample financial plan

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