ap 04120116 copyright 2016 apsi marketing & retirement...


Cash Flow Decisions is a software program developed by Impact Technologies and is not affiliated with Retirement You® or APSI Marketing. This analysis provides only broad, general guidelines, which may be helpful in shaping your thinking about your retirement needs. It can serve as a guide for discussions with your professional advisors. Your Social Security benefits are based on the information you provided. Its purpose is to help you frame your thoughts and become better informed before filing. It shows strategies and age combinations that you might not have considered. This report is not intended to provide an exact analysis, but it will help you determine the filing method and age you want to start your benefits. This report reflects the provisions and restrictions included in the Bipartisan Budget Act of 2015. Calculations contained in this analysis are estimates only, based on the information you provided, such as the value of your assets today, and the rate at which the assets appreciate. The actual values, rates of growth, and tax rates may be significantly different from those illustrated. These assumptions are only a "best guess.” A portion of your Social Security benefits may be taxable. Since other sources of retirement income can affect taxation of your benefits, proper income tax planning can only be done as part of a comprehensive retirement income plan. The actual income taxation of Social Security benefits will depend on the facts and circumstances at the time the benefits are received. Any illustration of the potential income taxation of Social Security benefits is an estimate. If you have questions not covered in this report, your Social Security Administration office and its website (www.ssa.gov) are excellent sources of additional information. The projections or other information generated in this report regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. This tool and support materials are designed to provide general information on the subjects covered. It is not intended to provide specific legal or tax advice. You should discuss all strategies with your legal, tax, and financial professionals. Financial Professionals should ensure they continue to follow the current policies on the use of any advertising, third-party materials, sale systems, software and/or social media as required by their broker/dealer and the carriers they represent.

DISCLOSURES & TERMS OF USE


Cash FlowDecisions forRetirement

Cash flow describes how you use financial resources. It is a process that is

always moving. All parts of cash flow affect each other. Social Security is

often a major part of retirement income and you should select a benefit start

age and filing method that gives you the best overall retirement income.

Surplus Reinvested

AppreciationEarnings

• Withdrawals• Liquidations

• Social Security• Pensions• Annuities• Salary/Other Income

You receive income from both outside and inside sources. Outside sources

include salary, pensions, annuities, Social Security, and other income. Inside

sources include any withdrawals or liquidations of assets, and interest and

dividends.

Some outgoing payments may be mandatory, such as taxes. Other payments

include expenses that may be essential or discretionary. The balance, or

surplus, is saved or is used to acquire additional assets. The assets grow

through appreciation or reinvested earnings.

The following pages project how all the parts of your cashflow determine your retirement lifestyle.

Presented by: Alexander L Stanchfield November 16, 2016 2 of 14


JOE DEBORAH

Current Age 64 62Monthly benefit at FRA1 $2,285 $1,760Assume live to 85 90Start benefits at age 64 62

CUMULATIVE VALUE OF BENEFITS

$1,256,114File for Benefits

ANNUAL BENEFITS BY YEARAssumes 2% Cost of Living Adjustments

Joe Deborah

NEW MONTHLY BENEFITS

DATE AGE2 CHANGE FOR JOE DEBORAH TOTAL REASON

Feb 2016 62 Deborah $1,980 $1,327 $3,307 Start own retirement benefits

Dec 2016 64 Joe $1,980 $1,327 $3,307 Start own retirement benefits

Jan 2037 83 Deborah $0 $3,002 $3,002 Survivor benefits start

Cash Flow Using Custom Social Security Strategy

1Prior to full retirement age, earnings from continuing to work may result in reduced or withheld benefits. At full retirement age, an adjustment is made torestore any reduced or withheld benefits. After full retirement age, there is no benefit reduction for wages or self-employment earnings.

2Age at end of year illustrated.

Presented by: Alexander L Stanchfield November 16, 2016

$60,000

40,000

20,000

6462

6967

7472

7977

8482

8987

JoeDeborah

5 of 14

Before Planning: Hypothetical Social Security Strategy *Examples are for illustrative purposes only. Your actual results will vary.


JOE DEBORAH

Current Age 64 62

Monthly benefit at FRA1

$2,285 $1,760

Assume live to 85 90

Start benefits at age 64 62Filing Method: File for Benefits

CASH FLOW RESULTS

$442,444Shortfall (NPV)

ANNUAL CASH FLOW

Shortfall2

Assets

Salary & Other Income

INCOME FLOOR

Social Security

Present value today of remaining needs is $442,444.

Life insurance death benefit to fund survivor needs is $676,239.

Optimizing Social Security cash flow would reduce remaining needs today to $289,163 (153,281 less). Optimal would

be Joe age 70, Deborah age 68; Deborah Files Restricted, Joe Files.

Your current home is valued at $300,000 in 2034 when first deficit occurs. You may consider downsizing your home

or a reverse mortgage.

Consider reducing your monthly expenses.

Consider working longer.

ADDITIONAL ITEMS TO CONSIDER

Cash FlowUsing Custom Social Security Strategy

Retirement expenses at 100% of pre-retirement amount. Expenses at first death at 100% of retirement expenses. Assumed rate of return is 0% before

retirement and 4% afterwards. Pre-retirement effective income tax rate is 25%. Post retirement effective income tax rate is 25%.1

Prior to full retirement age, earnings from continuing to work may result in reduced or withheld benefits. At full retirement age, an adjustment is made to

restore any reduced or withheld benefits. After full retirement age, there is no benefit reduction for wages or self-employment earnings.2

Present value today of remaining needs is $442,444. Life insurance death benefit of $676,239 could fund survivor needs at first death.


$200,000

150,000

100,000

50,000

6462

6967

7472

7977

8482

8987

JoeDeborah

3 of 14

Before Planning: Hypothetical Retirement Income Gap *Examples are for illustrative purposes only. Your actual results will vary.


Cash Flow

64 62 $14,989 $0 $0 $4,634 $0 $10,355 $065 63 100,152 0 0 40,488 0 59,664 066 64 103,177 0 0 41,292 0 61,885 067 65 107,142 0 0 42,132 0 65,010 068 66 110,378 0 0 42,972 0 67,405 0

/////

69 67 113,711 0 0 43,812 0 69,899 070 68 117,143 0 0 44,700 0 72,444 071 69 120,681 0 0 45,600 0 75,080 072 70 124,324 0 0 46,500 0 77,824 073 71 128,077 0 0 47,436 0 80,640 0

/////

74 72 131,942 0 0 48,384 0 83,559 075 73 135,926 0 0 49,344 0 86,582 076 74 140,028 0 0 50,340 0 89,688 077 75 144,254 0 0 51,348 0 92,905 078 76 148,607 0 0 52,368 0 96,239 0

/////

79 77 153,092 0 0 53,412 0 99,680 080 78 125,195 0 0 54,492 0 70,703 081 79 123,683 0 0 55,584 0 68,099 082 80 126,720 0 0 56,688 0 6,109 -63,92283 81 130,461 0 0 57,828 0 0 -72,633

/////

84 82 134,375 0 0 58,980 0 0 -75,39583 138,406 0 0 36,024 0 0 -102,38284 142,558 0 0 36,744 0 0 -105,81485 146,835 0 0 37,476 0 0 -109,35986 151,240 0 0 38,220 0 0 -113,020

/

87 155,777 0 0 38,988 0 0 -116,78988 160,450 0 0 39,768 0 0 -120,68289 165,264 0 0 40,560 0 0 -124,704

INCOME FLOOR OTHER INCOME SOURCES

Ages

Total Taxes

& Expenses Annuities Pensions

Social

Security

Salary &

Other Income From Assets

Surplus/

Shortfall



Before Planning: Hypothetical Cash Flow Projection *Examples are for illustrative purposes only. Your actual results will vary.


JOE DEBORAH

Current Age 64 62Monthly benefit at FRA1 $2,285 $1,760Assume live to 85 90Start benefits at age 66 64

CUMULATIVE VALUE OF BENEFITS

$1,593,000Joe Files Restricted, Deborah Files

ANNUAL BENEFITS BY YEARAssumes 2% Cost of Living Adjustments

Joe Deborah

NEW MONTHLY BENEFITS

DATE AGE2 CHANGE FOR JOE DEBORAH TOTAL REASON

Jan 2018 66 Joe $916 $1,587 $2,503 Start spousal benefits only

Jan 2018 64 Deborah $916 $1,587 $2,503 Start own retirement benefits

Jan 2022 70 Joe $3,397 $1,718 $5,115 Start with delayed credits

Jan 2037 83 Deborah $0 $4,572 $4,572 Survivor benefits start



2Age at end of year illustrated.


$90,000

60,000

30,000

6462

6967

7472

7977

8482

8987

JoeDeborah

4 of 16

After Planning: Hypothetical Social Security Strategy *Examples are for illustrative purposes only. Your actual results will vary.


JOE DEBORAH

Current Age 64 62Monthly benefit at FRA1 $2,285 $1,760Assume live to 85 90Start benefits at age 66 64Filing Method: Joe Files Restricted, Deborah Files

CASH FLOW RESULTS

$130,354to Heirs2

ANNUAL CASH FLOW

Shortfall3

Assets

Salary & Other Income

INCOME FLOOR

Annuities

Social Security

1. IRA's/401(k)'s2. Investments3. Roth IRA's4. Savings

Assets are assumed to grow at 0% before retirement and 4% after retirement. Both rates of return are beforetaxes.

ASSETS CONSUMED IN THIS ORDER

Cash FlowUsing Custom Social Security Strategy

Retirement expenses at 100% of pre-retirement amount. Expenses at first death at 100% of retirement expenses. Assumed rate of return is 0% beforeretirement and 4% afterwards. Pre-retirement effective income tax rate is 25%. Post retirement effective income tax rate is 25%.


2To heirs is total remaining assets at the end of the illustration.

3Present value today of remaining needs is $0.


$240,000

180,000

120,000

60,000

6462

6967

7472

7977

8482

8987

JoeDeborah

3 of 16

After Planning: Hypothetical Retirement Income Surplus *Examples are for illustrative purposes only. Your actual results will vary.


Cash Flow

64 62 $16,533 $0 $0 $0 $0 $16,533 $065 63 102,176 0 0 0 0 102,176 066 64 103,740 45,000 0 30,036 0 28,703 067 65 107,717 46,800 0 30,636 0 30,281 068 66 110,964 48,672 0 31,248 0 31,044 0

/////

69 67 114,308 50,619 0 31,872 0 31,817 070 68 113,575 52,644 0 61,380 0 929 1,37771 69 117,422 54,749 0 62,604 0 970 90372 70 123,311 56,939 0 63,852 0 5,179 2,65973 71 127,506 59,217 0 65,136 0 5,392 2,239

/////

74 72 131,742 61,586 0 66,432 0 5,609 1,88475 73 135,736 64,049 0 67,764 0 5,829 1,90776 74 139,849 66,611 0 69,108 0 6,057 1,92777 75 144,094 69,275 0 70,500 0 6,293 1,97478 76 148,471 72,046 0 71,916 0 6,537 2,029

/////

79 77 152,973 74,928 0 73,344 0 6,764 2,06480 78 157,625 77,925 0 74,820 0 7,025 2,14581 79 162,411 81,042 0 76,308 0 7,264 2,20482 80 167,349 84,284 0 77,844 0 7,510 2,28983 81 172,437 87,656 0 79,392 0 7,762 2,372

/////

84 82 177,687 91,162 0 80,988 0 8,020 2,48383 177,202 94,808 0 54,864 0 27,529 084 182,443 98,601 0 55,956 0 27,887 085 194,438 102,545 0 57,072 0 34,822 086 200,324 106,646 0 58,212 0 35,466 0

/

87 206,363 110,912 0 59,376 0 36,075 088 205,795 115,349 0 60,564 0 29,883 089 209,906 119,963 0 61,776 0 28,168 0

INCOME FLOOR OTHER INCOME SOURCES

Ages

Total Taxes

& Expenses Annuities Pensions

Social

Security

Salary &

Other Income From Assets

Surplus/

Shortfall



After Planning: Hypothetical Cash Flow Projection *Examples are for illustrative purposes only. Your actual results will vary.

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