Legacy Maximizer. Analysis for: John Doe and Jane Doe Prepared on February 27, Your Financial Services Professional: Seth Stewart

Transcription

1 Legacy Maximizer Analysis for: John Doe and Jane Doe Prepared on February 27, 2015 Your Financial Services Professional: Seth Stewart

2 Getting the most out of your money In today's economy, using your money wisely has never been more important. We are surrounded by a world of uncertainty when it comes to our job, our home, our bank, and our investments. Chances are, if you have not been negatively affected by one of these issues, you know someone that has. This report is designed to take some of the uncertainty out of your future. By leveraging your existing investments and insurance wisely, you can create generational wealth that is well insulated from future tax law changes.

3 Personalized Data Sheet Client Spouse Name John Doe Jane Doe Date of Birth February 25, 1955 March 01, 1957 Age Assumed Age at Death 101 Gender Male Female Tax Type Qualified Current Account $400,000 Assumed Rate of Return 4.00% Owner Tax Rate 28% Beneficiary Tax Rate 28% Annual Distribution Amount $12,000 Age To Start Distributions 60 Age To End Distributions 100

4 Current Current Portfolio John Doe and Jane Doe Age Beginning RMD Amount Interest Earned at 4.00% Ending , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,098 21,609 22, , , ,308 22,389 22, , , ,756 23,194 22, , , ,385 24,024 22, , , ,135 24,880 22, , , ,946 25,762 22, , , ,751 26,671 22, , , ,484 27,476 22, , , ,209 28,434 21, , , ,726 29,268 21, , , ,116 30,113 21, , , ,323 30,968 20, , , ,290 31,830 20, , , ,958 32,697 20, , , ,272 33,566 19, , , ,174 34,201 18, , , ,852 34,812 18, , , ,281 35,394 17, , ,639

5 Age Beginning RMD Amount Interest Earned at 4.00% Ending ,443 35,940 16, , , ,323 36,444 16, , , ,914 36,571 15, , , ,556 36,626 14, , , ,288 36,597 13, , , ,159 36,475 12, , , ,231 35,850 11, , , ,997 35,116 10, , , ,556 34,266 9, , , ,022 33,292 8, , , ,519 32,186 7, , , ,186 30,476 6, , , ,659 28,676 6, , ,805

6 Proposed Proposed Portfolio with Enhancement of Life Insurance John Doe and Jane Doe Age Beginning Interest Earned at 4.00% Withdrawal Minus Tax of 28% Net Withdrawal Ending Life Insurance Premium *RMD withdrawal begins at age 70 if amount is greater than requested withdrawal amount. Life Insurance Death Benefit ,000 15,333 16,667 4,667 12, , ,040 12, , , ,667 15,280 16,667 4,667 12, , ,042 12, , , ,280 15,225 16,667 4,667 12, , ,003 12, , , ,838 15,167 16,667 4,667 12, , ,923 12, , , ,338 15,107 16,667 4,667 12, , ,800 12, , , ,778 15,044 16,667 4,667 12, , ,632 12, , , ,156 14,980 16,667 4,667 12, , ,418 12, , , ,469 14,912 16,667 4,667 12, , ,154 12, , , ,714 14,842 16,667 4,667 12, , ,841 12, , , ,890 14,769 16,667 4,667 12, , ,474 12, , , ,992 14,693 16,667 4,667 12, , ,053 12, , , ,018 14,614 16,667 4,667 12, , ,575 12, , , ,966 14,532 16,667 4,667 12, , ,038 12, , , ,831 14,447 16,667 4,667 12, , ,440 12, , , ,611 14,358 16,667 4,667 12, , ,777 12, , , ,302 14,265 16,667 4,667 12, , ,048 12, , , ,901 14,162 16,859 4,721 12, , ,106 12, , , ,203 14,033 17,368 4,863 12, , ,705 12, , , ,868 13,876 17,974 5,033 12, , ,755 12, , , ,770 13,691 18,501 5,180 13, , ,291 12, , , ,960 13,477 19,035 5,330 13, , ,289 12, , , ,402 13,233 19,576 5,481 14, , ,723 12, , , ,059 12,958 20,120 5,634 14, , ,566 12, , , ,897 12,649 20,668 5,787 14, , ,792 12, , , ,877 12,306 21,218 5,941 15, , ,375 12, , , ,966 11,934 21,619 6,053 15, , ,402 12, , , ,280 11,531 22,006 6,162 15, , ,860 12, , ,920

7 Age Beginning Interest Earned at 4.00% Withdrawal Minus Tax of 28% Net Withdrawal Ending Life Insurance Premium Life Insurance Death Benefit ,805 11,097 22,374 6,265 16, , ,741 12, , , ,529 10,632 22,719 6,361 16, , ,039 12, , , ,443 10,136 23,037 6,450 16, , ,750 12, , , ,542 9,617 23,118 6,473 16, , ,030 12, , , ,041 9,076 23,152 6,483 16, , ,895 12, , , ,965 8,513 23,134 6,477 16, , ,368 12, , , ,344 7,932 23,057 6,456 16, , ,478 12, , , ,219 7,342 22,661 6,345 16, , ,448 12, , , ,900 6,748 22,198 6,215 15, , ,324 12, , , ,450 6,152 21,661 6,065 15, , ,158 12, , , ,942 5,556 21,045 5,893 15, , ,006 12, , , ,452 4,964 20,345 5,697 14, ,071 92,931 12, , , ,071 4,392 19,264 5,394 13, ,199 82,223 12, , , ,199 3,843 18,127 5,076 13,051 99,915 71,939 12, , ,999 *RMD withdrawal begins at age 70 if amount is greater than requested withdrawal amount.

8 Comparison Comparison of Current vs Life Insurance Enhancement Option John Doe and Jane Doe Age Current Portfolio Proposed Life Insurance Enhancement Advantage Ending Ending Death Benefit Enhancement , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,437

9 Current Portfolio Proposed Life Insurance Enhancement Advantage , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,071 92, , , , , , ,199 82, , , , , ,805 99,915 71, , , ,194

10 Comparison Chart

11 DEFINITIONS AND DISCLOSURES Purpose Arbitrage Insurance Arbitrage Immediate Annuity Deferred Annuity Annuitization After-tax Income Death Benefit Legacy Amount Annuity Value After-tax Annutiy Maximizer Enhancement Life Insurance Assumptions To illustrate the benefits of partitioning a portion of your retirement nest egg to create your legacy. This allows for peace of mind knowing that your family's financial future is secure as your legacy lives on. A risk free transaction in which one profits from price disparities The process of turning a deferred annuity into a lifelong series of payments and reinvesting those payments into a life insurance contract An annuity which pays you a stream of income for the life of the owner An annuity that grows tax deferred The process of taking a deferred annuity or lump sum of money and converting it into an immediate income stream Income received after taxes are paid Income tax free death benefit which beneficiaries will inherit after the passing of the owner Life insurance death benefit Annuity value growing at a predetermined interest rate while owner is living Beneficiary inheritance value after tax Life insurance death benefit The difference in inheritance values the beneficiary will receive. It is determined by subtracting the after-tax value of the annuity from the life insurance death benefit. Benefits are based on returns to beneficiaries. Death Benefit numbers determined by using a universal life policy guaranteed to age 120 issued at a standard rate. The numbers are generic. An actual company illustration will be needed to determine exact values on a specific case. All numbers are generic and specific quotes will need to be generated to determine specific personalized values. Report is for illustration purposes only. Values do not include any estate taxes.

12 IMPORTANT DISCLOSURES Important Disclosures Regarding this Report This report is conceptual in nature and all interest rates and performance numbers used are hypothetical and do not guarantee performance. Past performance is no guarantee of future performance. Diversification and asset allocation does not assure or guarantee better performance and cannot eliminate the risk of loss. The report is designed to illustrate concepts and all specific product information must be presented with an appropriate company/custodian illustration and should accompany this report. It is important to review and understand each product/investment's features, risks, charges, withdrawal penalties and expenses before making any financial decisions. Consult your Financial Services Professional ("FSP") to determine which products/investments align with your time horizon, risk tolerance and overall financial needs. This report is for informational purposes only and should not be used as a substitute for official account statements or reports, official tax filing documents, insurance company illustration or custodial reports. This report outlines different options available to the client, and its timely implementation may be critical to achieving specific goals or objectives. This report is not entirely comprehensive. It is intended to address specific objectives, as outlined by the FSP. The FSP is an independent insurance agent, registered representative or investment advisor representative. The foregoing conceptual report was created for, and at the direction, of the FSP. The FSP is solely responsible for proper licensure and registration to discuss and present the concepts herein. The recommendations and information herein are provided solely and exclusively by the FSP. The report is based solely upon information obtained from the FSP, and is dependent on complete and accurate information. This report reflects information provided at the time the report was created. The FSP is responsible for submitting third-party documentation when appropriate. It is the responsibility of the client and FSP to verify all information used in the report. The client is responsible for updating the FSP about any changes in circumstances. Tax Considerations Any references to income taxes are estimates only and should not be relied upon when completing income tax returns. Tax laws are subject to change and may differ from this analysis and may affect the options and information presented. The sale of appreciated assets may result in current tax liabilities not reflected in this report and may reduce actual investable assets. All income tax calculations are assumed based on the incremental tax rate input. This rate could differ materially given your particular tax perspective. State income taxes are not included in this example. Beginning with age 70 1/2, you are required by law to withdraw a certain minimum amount from your IRA each year. After your death your beneficiaries are also required to withdraw a minimum amount from their inherited IRA. The report may not reflect your specific RMD schedule or tax situation. Withdrawals of earnings from certain tax-deferred accounts will be subject to ordinary income tax and, if taken prior to age 59 1/2, may be subject to a 10% federal tax penalty. You should consider your personal investment horizon and income tax bracket, both current and anticipated, when making an investment decision as they make further impact the results. You should choose your annuity, or investment product, based on its features and benefits and whether you can satisfy the conditions for the features and benefits, not its tax benefits alone. Buying an annuity within an IRA or other tax-deferred plan or account does not give you any additional tax benefits. IRS Circular 230 Notice As required by U.S. Treasury Regulations, any tax information contained in the report is not provided or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code. Income Rider Calculation When withdrawing from an annuity product with an income rider, companies vary on the amount taken from the Income Rider Accumulation Value. This presentation takes out the withdrawals equally from the Accumulated Value, and proportionally from the Income Rider Value. The proportion is based on the difference between the Accumulated Value and the Income Rider Value. The other method is taking withdrawals dollar for dollar, meaning it s taken equally from both values. The report is designed to illustrate concepts and all specific product information must be presented with an appropriate company/custodian illustration. Actual Results May Vary Unless otherwise noted, the assumed rates of return used to calculate various projections are static. The actual variability of returns can impact a portfolio s value. Rate assumptions do not take into account any advisory fees, brokerage or other commissions, or any other expenses, which if taken into account would reduce performance.

13 IMPORTANT DISCLOSURES Limitations on the Scope of the Report Konnexme, LLC is a software company. It does not provide any legal, tax, investment or accounting advice. The report should not be construed as any such advice. An individual must consult with his or her own personal attorney, FSP, accountant or tax advisor for this advice, and should carefully consider each recommendation before deciding on a specific course of action. The information, data and opinions herein include confidential and proprietary information and may not be copied or redistributed.