Tax Planning &

Retirement Relocation

LIFETIME INCOME CASE STUDY

Presented by Financial Sense Advisors, Inc.
Registered Investment Advisor John & Cara Wallace
 Important Notice:
This is a hypothetical illustration based on real life
examples. Names and circumstances have been
changed. The opinions voiced in this material are
for general information only and are not intended
to provide specific advice or recommendations for
any individual. To determine which investments or
strategies may be appropriate for you, consult
with a financial advisor prior to investing.

Financial Sense Advisors, Inc.

Registered Investment Advisor
 ESSENTIAL INFORMATION

Client: John & Cara Wallace.

Ages: John is age 63 and Cara is age 68.

Retirement: Both are retired.

Life expectancy: Age 90 and 92.

Risk tolerance: Conservative.

Investment objective: Income with Capital Preservation.

 WHO ARE 

JOHN & CARA?

Name: John Name: Cara

Age: 63
Job: Executive
John worked as an executive officer for
his company and was very busy with work
related travel. John would like to move to
Wyoming or Montana and settle down
with his wife.
Age: 68
Job: HR Director
Cara worked as a HR Director and was
often very busy between work and helping
raise her grandchildren. Cara is willing to
move but doesn’t enjoy the cold winters
and would like to be closer to both her
kids and grandchildren.
WHAT IS IMPORTANT TO JOHN & CARA?

Managing taxes

Leaving a legacy for

Relocating in heirs
retirement

Maximizing
retirement income
JOHN & CARA’S CURRENT BUDGET

✔ Essentials: $80,000
✔ Discretionary: $65,000
TOTAL: $145,000
John’s Salary: $116,000
Amy’s Salary: $60,000
Surplus: $31,000
JOHN & CARA’S RETIREMENT BUDGET

✔ Essentials: $70,000
✔ Discretionary: $60,000
TOTAL: $130,000

John’s Pension: $25,000

Combined Social Security: $55,000
Shortfall: -$50,000
 JOHN & CARA’S ASSETS

Non-Investment Assets
✔ Primary Residence: $375,000

Investment Assets
✔ Taxable Accounts: $725,000

✔ John’s Retirement: $348,000

✔ Cara’s Retirement: $587,000

Total Investment Assets $1,660,000

Total Assets: $2,035,000
Liabilities: -$268,000
Net Worth: $1,767,000
JOHN & CARA’S FINANCIAL PLAN CHALLENGES

1. They have many expensive desires they

would like to pursue in retirement.

2. Estate plan has not been updated in 15

over years.

3. Taxes are a concern since they are

receiving pensions as retirement
income.

4. Investments are spread across many

custodians and don’t align with their
risk tolerance or investment objectives.
JOHN & CARA’S RETIREMENT INCOME STRATEGY

John’s Pension $25,000/Year

Combined Social Security $55,000/Year
Investment Income
John’s Retire. $348K Fixed Income & Dividend Payers @ 3.2%1 $11,136
Cara’s Retire. $587K Fixed Income & Dividend Payers @ 3.2%2 $18,784
Joint/ROS $725K Fixed Income & Dividend Payers @ 3.2%3 $23,200

Total Investment Income $53,120

Grand Total Income $133,120
Less Budget $130,000
Surplus $3,120
1,2 & 3: Yields are for current portfolio yields as of 10/25/16. Please see disclosures at the end of this presentation for security risks.
 GOAL BASED RECOMMENDATIONS
FOR JOHN & CARA

Goal Basic Strategy

Relocating in retirement Sell home in CA and buy home with cash in WY.

Maximizing retirement Delay social security to age 70 and relocate to reduce

income expenses.

Managing taxes Take advantage of tax benefits from relocation.

Creating a legacy for Use stretch IRA provisions and update their estate plans
children to WY.
 Disclosures:
1. Bonds are subject to market and interest rate risk if sold prior to maturity.
Bond values will decline as interest rates rise and bonds are subject to
availability and change in price.

2. The payment of dividend is not guaranteed. Companies may reduce or

eliminate the payment of dividends at any given time.

3. Fixed annuities are long-term investment vehicles for retirement purposes.

Gains from tax-deferred investments are taxable as ordinary income upon
withdrawal. Guarantees are based on the claims paying ability of the issuing
company. Withdrawals made prior to age 59 1/2 are subject to a 10% IRS
penalty tax and surrender charges may apply.

Financial Sense Advisors, Inc.

Registered Investment Advisor
Financial Sense® Advisors, Inc.
Registered Investment Advisor

If you have any specific questions or comments, please give us a call at

(858) 487-3939
We’re happy to speak with you.

Post Office Box 503147 - San Diego, CA 92150-3147

10809 Thornmint Road 2nd Floor - San Diego, CA 92127-2403
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Advisory services offered by Financial Sense® Advisors, Inc.

An SEC Registered Investment Advisor.