Barry is a single, 45 year old male who currently earns $125,000/yr. working as a landscape architect. He is looking for a robust retirement plan and doesn’t care much about life insurance. His main goal was to setup a comfortable stream of retirement income. He wanted to grow his money in the stock markets, but he also fears volatility.
Barry was very attracted to a plan design that featured a 5-pay annual funding structure which we found suitable given his current asset portfolio and main liabilities. He concluded he wanted to take advantage of his current high-income and the 3:1 leverage available to him inside of the plan design. This plan also featured potential tax-free income starting at age 65 and up to 90 years old. Also, Barry will have a 1.5 million dollar life insurance policy, a large fraction of which could be accelerated as “living benenfits” in case of critical, terminal, or chronic illnesses that qualify.