Medical Costs: The High

Cost of Longevity

LIFETIME INCOME CASE STUDY

Mike & Jean Robles
Registered Investment Advisor

Presented by Financial Sense Advisors, Inc.

 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
WHO ARE MIKE & JEAN?
Ages: 66 & 65

Jobs: Aerospace Engineer & Human Resources

- Mike has some serious health concerns

after being diagnosed with heart disease.
He is concerned that medical costs will
impact their retirement.

- Jean has long life expectancy and is

concerned that she will outlive her
husband by at least a decade.

- Seeking a professional to help them

manage medical costs and create
investment income to meet their needs.
 WHAT IS IMPORTANT TO MIKE?

Managing medical
costs Maximizing retirement
income

Mike

Staying healthy for

as long as possible
 WHAT IS IMPORTANT TO JEAN?

Making sure her needs Not running out of

are met after Mike assets
passes

Jean

Having an estate plan to

protect their legacy
 MIKE & JEAN’S CURRENT RISK TOLERANCE?

Most Conservative 1 - 20 - 30 - 40 - 50 - 60 - 70 - 80 - 90 - 100 Most Aggressive

Current Risk Score Portfolio Risk Score

34 56
MIKE & JEAN’S RETIREMENT BUDGET

Income $55,000
Expenses ($96,000) Discretionary
30%

Shortfall ($41,000)
Living Expenses
70%
 MIKE & JEAN’S BALANCE SHEET

Real
Estate + Portfolio - Liabilities = Net Worth

$980,000 $1,500,000 ($230,000) $2,250,000

MIKE & JEAN’S FINANCIAL PLAN CHALLENGES

1. Having predictable income in

retirement.

2. Managing high potential

medical costs assisted living
care.

3. Teaching Jean how to

manage an estate.

4. Developing an estate plan.

MIKE & JEAN’S RETIREMENT INCOME STRATEGY

Pension

$19,000
+ Social
Security

$36,000
+ Portfolio

$45,632
= $
Total
Income
$100,632

Investment Portfolio Expenses ($96,000)

Mike’s Retire. $812K Stocks & Bonds @ 3.2%1 $25,984
Surplus $4,632
Jean’s Retire. $314K Stocks & Bonds @ 3.2%2 $10,048
Joint Account $300K Stocks & Bonds @ 3.2%3 $9,600
Cash $74K

1,2 & 3: Yields are for current portfolio yields as of 4/30/18. Please see disclosures at the end of this presentation for security risks.
 GOAL BASED RECOMMENDATIONS
FOR MIKE & JEAN

Managing Healthcare Costs Creating Steady Income

• Advised Mike & Jean to use LTC policy to • Invest the remaining portion after the LTC
meet their medical needs portion to invest to produce income

• Any unused amount would be paid to the • Take advantage of the portability of Mike’s
surviving spouse or heirs as a tax-free life permanent life policy
insurance payout

Managing all other concerns

• We discussed health strategies

• Brought to their attention some

technologies and resources related to
health and wellness
 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. The information in this material is not intended as tax or legal advice. Please consult legal
or tax professionals for specific information regarding your individual situation.

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.

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