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Created with Fabric.js 1.4.5 1. Buy Term2. Invest the Difference in 401(k)3. Live Off Interest AQUIRE Bob & Betty Tom & Tina Contribute $30,000/Year to 401(k) Contribute $10,000/Year to Whole Life Stocks Combined Income: $200K $200K $18,000 $12,000 $18,000 $2,000 Life Cash Value: $600,000 1970 2005 2011 2008 Comparable ROR to Bonds -$920,000 Combined Income: Age: 30/30 Savings Rate: 15% Savings Rate: Product(s): 401(k) Product(s): 401(k) RETIRE Retirement Balance: $3,000,000 $3,000,000 -$1,200,000 Retirement Savings: Market Losses: -$225,000 Market Losses: -$225,000 $575,000 $1,955,000 Retirement Balance: Retirement Balance: $1,575,000 Market Gain Betty Widowed TinaWidowed Market Gain: $,157,500 Market Gain: $138,000 No Withdrawal From Insurance: No Withdrawals: Withdrawal $75,000 x 3 Year: Withdrawal $125,000 x 3 Year: -$225,000 Retirement Balance: $1,507,500 -$375,000 $590,000 $2,883,000 Retirement Balance: Life Insurance on Tom: $1,000,000 2023 Market Gain Withdrawal $50,000 x 12 Year: -$600,000 Retirement Balance: $907,500 Withdrawal $75,000 From Insurance x 3 Year: Bonds: $700,000 Withdrawal $75,000 x 3 Year: Age: 65/65 Betty Tina Life Style Life Style Age: 67/67 Age: 70 Withdrawal $100,000 x 12 Year: Life Style Age: 82 -$1,200,000 $1,630,000 Age: 30/30 25%Taxes on 401(k): -$226,875 $680,625 Legacy $425,000 $225,000 $375,000 $1,200,000 $600,000 $1,050,000 Total $2,000,000 ASSET PROTECTION ASSET REPLACEMENT $225,000 Life Style EXPIRE Bob & Betty Tom & Tina 1. Spend time with family2. Travel around the world 3. Leave a legacy to -Children -Grandchildren -Charity. Market Gain 10% Market Gain Dream to spend time with family,travel around the world & leave a legacy to children, grandchildren & charity. Stocks: $2,300,000 Contribute $20,000/Year to 401(k) Stocks Whole Life Policy has riders: Term Life Whole Life Chronic Illness Accelerate Benefit Disability Waver of Premium Bonds 1. Spend time with family2. Travel around the world 3. Leave a legacy to -Children -Grandchildren -Charity. The Dream The Plan 1. Whole Life & 401(k)2. Asset Protection from Risks: -Market -Longevity -Disability -Inflation -Lawsuit -Tax Rate3. Asset Replacement 4. Live Off Interest & Principal The End The Retirement The Loss The Crisis Withdrawal $75,000 x 3 Year: -$225,000 -$225,000 $375,000 No Withdrawal From Insurance: Life Insurance on Tina: Retirement Balance: $2,883,000 Legacy $680,625 The Plan: #2 The Plan: #3 Total Bob Dies: When Bob and Betty were young, they chose to buy Term insurance and kept the policy in force until retired. Atretirement age the cost of Term became unmanageable, soThey did not renew their policy. Tom Dies: When Tom and Tina were young they realized thatWhole Life will not only replace salary if one of them shoulddie in their working years, but also replace their assets throughout their retirement. Contributions to Investments 30k X 35 Years: Total Contributions to Retirement Savings: $1,050,000 $1,050,000 Contributions to Investments 20k X 35 Years: $700,000 Contributions to Whole Life 10k X 35 Years: $350,000 Total Contributions to Retirement Savings: $1,050,000 $2,000,000 Spent on Life Style (Traveled to 27 Countries): Spent on Life Style (Traveled to 6 Countries): $2,000,000 Legacy: Legacy: $680,625 $680,625 COLOR KEY: Retirement Savings Investment Insurance Life Style Legacy Market Gains: $225,000 Market Gains: $225,000 Retirement Balance: Cash Flow Balance 2014 15% Stocks: $2,300,000 Stocks: $2,300,000 Bonds: $700,000 Bonds: $700,000 Cash Flow Balance Global Ecconomic Crisis 2004 Bonds Savings at Retirement: $3,000,000 Duration: 35 Years Duration: 35 Years Stocks: $2,300,000 Stocks: $2,300,000 Stocks: $2,300,000 Bonds: $700,000 Bonds: $700,000 Bonds: $700,000 $0 Life Cash Value: Life Cash Value: $0 $0 Savings at Retirement: $3,000,000 Stocks: $2,300,000 Bonds: $700,000 Withdrawal $125,000 x 3 Year: Life Cash Value: $0 Stocks: $2,300,000 Bonds: $700,000 Market Gain: $,157,500 25%Taxes on 401(k): -$226,875 Market Gain: $,157,500 No Withdrawal From Insurance: $0
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