| Real Client Cases
Please do not let these cases put you off because they're not exactly like your situation. Although we can't feature everyone here, we work with clients from all walks of life.
Ray and TonyaRay, 46 and Tonya, 44, have four kids ranging in ages from 9 to the early 30s.
Ray and Tonya came to us for help in saving their extra $400 per month for their retirements. Click here to see Laser Financial Group's Solution
We took a new $247,500, thirty-year mortgage on their house. We paid off their $20,000 timeshare balance, saving them $36,400 in otherwise unnecessary interest payments over the next 10 years. We paid off the $9,000 in high-interest credit card debts. We increased their emergency savings account to almost $20,000. The only payment they have now is their $1,585 per month mortgage payment, therefore freeing up $2,307 per month (the $3,892 they were shelling out before, minus their only payment of $1,585), in addition to the extra equity dollars they separated to fund their retirement account.
Prospective Retirement: Ten years from now, Ray and Tonya would have paid off their home and time share, but will be faced with the reality of being 56 and 54 years old, respectively, and very ill-prepared for a looming retirement. Based on our recommendations, they will have a mortgage balance of $206,279, but also will have saved $313,794 in an account that is conservatively projected to have a balance anywhere between $398,109 and 445,387 using a net IRR of 5.01 percent. Of course they could achieve the same goal of paying off their home, but in this case with more than $100,000 excess. But would that be financially prudent? Now, they can access the money in their account - anytime - including the gains, tax-free, without any IRS penalties and without being obligated to repay. They are projected to draw $70,907 annually, tax-free, from the day Ray turns 65 - when Tonya is 63 - through age 100. That's $2,481,754, tax-free, based on existing tax law. In the Event of Death: Should Ray pass away today, his beneficiary would receive a check for $916,707, income-tax free. Tonya's beneficiary would receive $500,378, also income-tax free. Janet
Janet, a retired 69-year-young widow, lives in suburban Maryland.
Janet consulted with us for assistance with $300,000 she intends to leave for her two children, which going forward; she wishes to protect from further stock market downturns. Here exact words were: "I want to guarantee that my children will receive at least this $300,000." Click here to see Laser Financial Group's Solution
Invested her $300,000 in an IRA contract. This IRA comes with the guarantee that the $300,000 will never decrease due to market risk. In addition, she will earn a -guaranteed minimum- 3 percent annual interest. If the S&P 500 Index, as defined by the contract, returns more than 3 percent in any given year, her IRA will be credited the growth up to a maximum of 6.5 percent. So in plain language, the $300,000 is guaranteed to earn at least $9,000, and could earn up to $19,500 in interest per year, going forward. We also purchased a permanent life insurance contract with a death benefit of $230,000, with the guaranteed interest from the IRA which, we conservatively estimated each year to net about $6,300 (or $9,000, less 30% tax). The annual premium for the life insurance policy is $4,923.
Prospective Retirement: In addition to guaranteeing her $300,000 principal, Janet's guaranteed minimum interest (net of $6,300) is enough to pay the annual premium for the life insurance policy, leaving an extra $1,377 which, she may use as she wishes. Also, notice that the yearly interest could be as high as $19,500; however, for the sake of prudent planning, we based her plan around the lowest figure. In the Event of Janet's Death: Should Janet pass away today, her children will net $440,000 ($220,000 for each child). This will be made up of $300,000 from the guaranteed IRA (minus an estimated 30 percent tax) netting $210,000, PLUS, the $230,000 of completely income-tax free death benefit from the insurance contact. Kenny and Victoria
Kenny, 41, works as a police officer and is married to Victoria, 37. They have 3 kids, ages 1 to 9 years.
They wanted to save an extra $325 per month to supplement their retirements in the most efficient manner. Click here to see Laser Financial Group's Solution:
Helped them achieve their goal by showing them how they could maximize their $325 per month.
Prospective Retirement: They would have put away a total of $93,600 ($325 per month) by the time Kenny turns 65. Based on a conservative net IRR of 4.95 percent over the next 24 years, they are projected to access $13,963 per year from age 65 through 100, tax-free. That's a total of $488,705 tax-free. They may access their funds before age 59-1/2 (including any gains), tax-free, without any IRS penalties, and without being obligated to repay. Based on existing law, they will not be required to take out any minimum distributions at age 70-1/2. In the Event of Death: Should Kenny pass away today, his beneficiary will receive a check for $183,294, income-tax free. Victoria's beneficiary will also receive $183,294, also income-tax free. Jay and Mia
Jay, 60 works as an office assistant, making about $25,000 per year. His wife Mia, 58, is unemployed.
Jay and Mia attended one of our public seminars and spoke to the presenter afterward, explaining that they were in such a bad shape they felt there was nothing we could do to help improve their financial situation. Click here to see Laser Financial Group's Solution
Took a new $76,000 mortgage and paid off all of their $29,276 consumer debt. Their only monthly payment is now $475 toward their mortgage. The difference of $781 per month ($1,256 they were spending before, minus their only payment of $475), combined with about $20,000 of their home's equity that was otherwise idle can now be allocated toward a supplemental retirement plan.
Prospective Retirement: Jay and Mia would have paid off their $20,000 mortgage in 11 years, but with absolutely no savings to supplement their retirement income. Based on our recommendations, they will have a mortgage balance of $76,000 and will have saved $72,449 over the next 5 years in an account that is conservatively projected to have a balance anywhere between $113,407 and 120,106 using a net IRR of 5.34 percent. They could pay off the townhouse at the exact same time if it was financially prudent with excess cash of between $37,407 and $44,106. They can access the money in their account - anytime - including the gains on a tax-free basis, without any IRS penalties and without any obligation to repay. They are projected to access $285,960 beginning in year 11, without paying a dime in tax. In the Event of Jay's Death: Should Jay pass away today, his beneficiary would receive a check for $172,627, income-tax free. Tom and Diane
Tom, 67, and Diane, 58, are married. Tom works full time and also receives Social Security.
Tom contacted us after reading an article written by our Senior Financial Strategist in a local newspaper because the couple is beginning to realize that more and more of his Social Security benefit, as well as income from his employment, is going out in taxes. They were alarmed that he will be turning 70-1/2 in a few years, and foresee their tax woes getting much worse. Click here to see Laser Financial Group's Solution:
Took a new 30-year mortgage of $272,000 on their house, with a monthly payment of $1,544. They used this to create the maximum allowable interest offset (under IRC section 163) to
assist them in strategically converting Tom's qualified IRA funds into a non-qualified environment over the next 5 years, thereby reducing /eliminating any tax consequences.
Prospective Retirement: In 5 years, the couple will have transferred those qualified IRAs/401(k)s into a non-qualified alternative. They will also add a $1,425 difference between their previous monthly outlay of $3,842 and their new payment of $1,544. They are projected to have between $408,017 and $448,626 in 5 years. Beginning in year 10, through to age 100 if they so choose, they could access a projected $44,798 per year, tax-free, based on existing tax law. They will have eliminated the "Required Minimum Distribution" rules. Since this account is not deemed earned, passive, or portfolio income, it will have NO tax effect whatsoever on Tom's Social Security benefits. If you do the math that's $1,075,152, tax-free. In the Event of Death: Should Tom pass away today, his beneficiary will receive a check for $540,000, income-tax free. Diane's beneficiary will receive $523,542, also income-tax free. |
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