Discussions to Have

With Your Spouse

Before Retirement

LIFETIME INCOME CASE STUDY

David and Carol White
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 DAVID & CAROL?
Age: 60 & 64
Job: Construction Contractor & Travel Agent
- David lives in upstate New York and does
not want to move
- Carol would like to move states for a more
moderate climate and change of pace
- Seeking a professional to help determine
what’s feasible for both of them
WHAT IS IMPORTANT TO DAVID?

Retiring soon
Investing to make up
for lost time

David

Spending more time

with their grandkids
 WHAT IS IMPORTANT TO CAROL?

Relocating in retirement
Preserving retirement
assets

Carol

Maintaining the same

lifestyle in retirement
 DAVID’S CURRENT RISK TOLERANCE?

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

Current Risk Score Portfolio Risk Score

72 76
 CAROL’S CURRENT RISK TOLERANCE?

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

Current Risk Score Portfolio Risk Score

41 35
DAVID & CAROL’S CURRENT BUDGET

Income $112,000
Expenses ($81,000) Discretionary
25%

Surplus $31,000
Living Expenses
75%
DAVID & CAROL’S RETIREMENT BUDGET

Income $65,000
Expenses ($75,000) Discretionary
32%

Shortfall ($10,000)
Living Expenses
68%
 DAVID & CAROL’S BALANCE SHEET

Home + Portfolio - Liabilities = Net Worth

$350,000 $820,000 ($159,000) $1,011,000

DAVID & CAROL’S ASSET ALLOCATION

2%
Asset Allocation
35% Stocks
43% Bonds
Cash
Hard Assets
20%
DAVID & CAROL’S FINANCIAL PLAN CHALLENGES

1. Managing their expectations.

2. Being mentally prepared for

retirement.

3. Managing separate goals and

getting them on the same page.

4. Reallocating their investments

more appropriately.
DAVID & CAROL’S RETIREMENT INCOME STRATEGY

Rental

$35,000
+ Social
Security

$30,000
+ Portfolio

$17,280
= $
Total
Income
$82,280

Investment Portfolio Expenses ($75,000)

David’s IRA $120K Stocks & Bonds @ 3.2%1 $3,840
Surplus $7,280
Carol’s IRA $160K Stocks & Bonds @ 3.2%2 $5,120
Trust $260K Stocks & Bonds @ 3.2%3 $8,320
Cash/Checking $280K

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 DAVID & CAROL

Managing investment risk Finding a compromise

• Focus more on ability to take risk
• Change objective to income and
preservation
• Have honest and open dialogue about
what is most important to them
• An idea we provided was to snowbird
together in FL for 3-4 months a year

• Consider selling the current home in

Maintaining the same retirement and buy a smaller place to
lifestyle in retirement lower expenses

• Advised David to pursue his cabinetry

business to supplement income
 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.

4. 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.

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

10809 Thornmint Road 2nd Floor - San Diego, CA 92127-2403
(888) 486-3939 Toll Free (858) 487-3939 Tel (858) 487-3969 Fax

Advisory services offered by Financial Sense® Advisors, Inc.

An SEC Registered Investment Advisor.