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The MASTER System was developed to provide retirees with an income stream that cannot be outlived. Taking into account a number of variables (rate of return, inflation, taxes, etc.), financial advisors are able to mathematically calculate portfolio allocations to meet the objectives of their clients.
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FINANCIAL CONSULTANTS
MASTERTM SystemFor high-net-worth individuals and couples
Never Run Out of Money?
How do you guarantee that you will not outlive your income?
More Money. Less Taxes.
How can you guarantee to increase your monthly income and pay less taxes simultaneously?
Case Study
Richard & Helen
Richard & Helen
Both Richard & Helen are Retired• Social Security• No Pension
Richard & Helen
Both Richard & Helen are Retired• Social Security• No Pension
Enjoy International Travel• Vacation 2-3 times a year• Need care for disabled son when traveling
Richard & Helen
Both Richard & Helen are Retired• Social Security• No Pension
Enjoy International Travel• Vacation 2-3 times a year• Need care for disabled son when traveling
Substantial Net Worth• Real Estate (residence & raw land)• $1 million cash and marketable securities
Richard & Helen Have…
4CONCERNS
Concerns
1Both of their families have histories of longevity.
Concerns
2Concerned that they might run out of money.
Concerns
3Worried about supporting disabled son in the future.
Concerns
4Would love to reduce their income tax liability.
STRATEGY…Is There A
CONCERNS?
…That Addresses
4ALL
MASTERTM System
Multiple Asset Strategy for Tax, Estate & Retirement
A Strategy for Richard & Helen
MASTER System
Solves the risk of running out of money during retirement.
1
A Strategy for Richard & Helen
MASTER System
Minimizes income taxes.
2
A Strategy for Richard & Helen
MASTER System
Provides for the efficient management of their estate.
3
How?
MASTER System preserves and protects principal...
How?
…by providing a system for an advisor to mathematically structure their accounts.
MASTERTM Allocation
Leave On Dollars
Live OnDollars
MASTERTM Allocation
Years 1-5
Years 6-10
Years 11-15
Years 16+
Year 1-5 6-10 11-15 16+
Start $216,470 $169,961 $132,890 $481,010
Richard & Helen’s Allocation
How is Allocation Calculated?
Among other factors…
Objectives
Age
Risk
Tolerance
Assumed Inflation
% Rates
Other
Assets
The hypothetical example used in this presentation is for illustrative purposes only. It is not investment advice. It assumes a 5% annual rate of return, and does not represent specific investments or insurance contracts. Actual results may vary.
Year 1-5 6-10 11-15 16+
Start $216,470 $169,961 $132,890 $481,010
Monthly Income$3,705
Richard & Helen’s Allocation
Year 1-5 6-10 11-15 16+
Start $216,470 $169,961 $132,890 $481,010
6 0 $216,470 169,961 613,910
Monthly Income$3,705
Richard & Helen’s Allocation
All Spent
Year 1-5 6-10 11-15 16+
Start $216,470 $169,961 $132,890 $481,010
6 0 216,470 169,961 613,910
11 – 0 $216,470 783,520
Monthly Income$3,705
Richard & Helen’s Allocation
All Spent
Year 1-5 6-10 11-15 16+
Start $216,470 $169,961 $132,890 $481,010
6 0 216,470 169,961 613,910
11 – 0 216,470 783,520
16 – – 0 $1,000,000
Richard & Helen’s Allocation
All Spent
Use the 4th Bucket to Start All Over
Are Richard & Helen Relieved?
Question: Does the MASTERTM System accomplish Richard and Helen’s objectives?
Concerns
1Both of their families have histories of longevity.
Concerns
2Concerned that they might run out of money.
Concerns
3Worried about supporting disabled son in the future.
Concerns
4Would love to reduce their income tax liability.
Richard & Helen’s Assets
$1 Million Investment Portfolio
Stocks: $100,000
Muni Bonds: $200,000
MM Funds: $100,000
CDs: $600,000
Before MASTERTM System
Generate?
What do these
Assets
Taxable Income
Assets
After Richard & Helen
Reposition Their
Richard & Helen’s Taxes
IRS Form 1040–Short OverviewUsing MASTERTM
System
Line Description Before After
35 Adjusted Gross Income $96,786 $38,203
Richard & Helen’s Taxes
IRS Form 1040–Short OverviewUsing MASTERTM
System
Line Description Before After
35 Adjusted Gross Income $96,786 $38,203
72 Tax Liability—Amount You Owe 21,875 3,072
Richard & Helen’s Taxes
IRS Form 1040–Short OverviewUsing MASTERTM
System
Line Description Before After
35 Adjusted Gross Income $96,786 $38,203
72 Tax Liability—Amount You Owe 21,875 3,072
After-tax Cash Flow $103,378 $131,657
$28,279 More
Richard & Helen’s Taxes
Summary
Using MASTERTM System
Item Was Now
After-tax Annual Income $103,378 $131,657
Richard & Helen’s Taxes
Summary
Using MASTERTM System
Item Was Now
After-tax Annual Income $103,378 $131,657
After-tax Monthly Income 8,615 10,971
Richard & Helen’s Taxes
Summary
Using MASTERTM System
Item Was Now
After-tax Annual Income $103,378 $131,657
After-tax Monthly Income 8,615 10,971
Monthly Increase Cash Flow - $2,356
IMPORTANT NOTE: Richard and Helen have reduced their taxable Social Security benefits by $12,220 (71.17%)!
Concerns
4Would love to reduce their income tax liability.
Think About This …
Using the MASTER System
We Can Help You…
…mathematically redesign your portfolio so you’ll never run out of money.
We Can Help You…
Significantly increase your monthly income stream.
We Can Help You…
Dramatically reduce your taxes.
Major Implications for…
…how you make certain that you do not outlive your income.
Major Implications for:
How your estate and taxes should be planned.
Remember
It’s not just what you earn…
Remember
It’s what you keep that counts!
That was an Income Strategy
Protect Against or Avoid Strategy
Market Risk / Sequence Risk Indexed Annuities
Outliving Assets / Taxes MASTERTM System
& Tax
^
Consider…
What would happen to your financial stress and anxiety if you knew that you would not run out of money during retirement?
1
What Should You Bring?
Bring these to your free confidential consultation:
Completed “Client Questionnaire”
2
3
4
5
6
7
Your Spouse Needs to Come!
Tax Returns
Copies of All Investment Statements
Estate Plan
Copies of All Life Insurance Policies
List of Questions
Complete the contact info at the bottom of the “Presentation Evaluation Sheet.”
3 Raise your hand when your sheet is completed to enter the drawing.
1
Client Confidential Questionnaire
Please make a note of the date and time of your personal consultation.
2
FINANCIAL CONSULTANTS
Thank you for attending.
We sincerely hope you feel you have
benefited from our presentation.
Retirement Planning
