Case Design Oct 29th, 2008

I have just finished reviewing another case I thought you may be interested in seeing another angle of how these strategies are custom tailored for each and every client. Here is how it breaks down;

Husband age 66 Wife age 67
Standard non-tobacco
Retired and living comfortably off pension and social security
IRA worth $550,000 but was worth $750,000 earlier this year
Facing RMD (Required Minimum Distributions) in 4 yrs
House owned free and clear
Other assets in "non-qualified accounts"

Concerns:
IRA income not needed
Wife has some health issues
Pension has "partial" survivor benefits
Clients are conservative with a very low risk tolerance

Goals / recommendations:
Pension income replacement in case of husbands passing
Move ‘non-qualified assets" to a safe and secure strategy with their investment advisor
Maximize amount to leave to estate (children / charity)
Reduce long term tax burden

Implementing:
$550,000 Strategic Roll-out over next 5 yrs into IUL policy
Assume no IRA Gain
Reallocation of securities into conservative portfolio through their investment advisor

Accomplished:
$403,000 in tax savings over 30 yrs
Left home untouched at clients wish
Increased tax free estate transfer balance by $331,846 immediately.
Cost of insurance reduced to 1.55% compared to money management cost of 2.09%

Alternatives:
If guaranteed income was a goal an annuity laddering strategy could have resulted in an annual income of $76,000 for life.

If using the house to maximize and additional $100,000 of investment cash, above numbers would have been enhanced slightly.

This was not a complex case but made a HUGE difference in the lives of the clients and their overall estate net worth. Since they were not concerned about the return on investment over the next 10 years but were more focused on leaving a legacy, this worked perfectly for them.

I look forward to assisting you with your policy review and assisting you with the needs of your clients in the future.

Cordially,

J. Michael Nash
Financial Strategist
The Michael Nash Group
1911 Rio Grande
Austin, Tx 78705
(512) 494-0300 office
(512) 494-0301 fax
(512) 731-8818 mobile

"Good, Better, Best! Never let it rest! Never let it rest until GOOD gets BETTER and better gets BEST!"