Case Study

Status Quo vs. Strategy for just a few of our recommendations

Result: Status Quo vs. Strategy

Difference of $3,746,163 in today’s dollars for your children!

Assumptions:

Joe & Fran Jason – ages 65/63
$2.2 million pre-tax retirement accounts
$500,000 brokerage account
$285,000 Roth IRA money
6.5% rate of return
3.5% inflation rate
Owner and spouse die at age 90
Beneficiary inherits at age 59
“Inflation-adjusted” dollars (not actual dollars)
Tax rates – per AGI
Husband earns $160,000 for 3 years; wife earns $165,000 for 3 years
Retire at ages 69/67
Living Expenses = $120,000/year

Status Quo vs. Strategy

Status Quo:

Both spouses claim Social Security at full retirement age (age 67)
Both spouses contribute maximum amount to traditional pre-tax 401(k) of $30,000 each
No more Roth conversions

Recommended Strategies from Financial Masterplan:

Higher earning spouse defers collecting Social Security to age 70
Both spouses contribute maximum amount to Roth 401(k) of $30,000 each
Both spouses do 3 years of annual backdoor Roth conversions
Optimize 7 years of Roth IRA conversions (some years $50,000; some years $100,000; some years $200,000)

Investment advisory services offered by Lange Financial Group, LLC. Investing involves risks, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful. Visit our website paytaxeslater.com/privacy for more information on our investment advisory services. Please see paytaxeslater.com/privacy for additional disclosures.