1. Income Planning
Using FIA’s for Safe Money Case Study Income Protection How PCN Can Assist

2. Total Portfolio Investments Capital Preservation $800,000 $200,000
$1,000,000
Age 55
Age 65
7.20% Yield
$800,000
Annual Income
$64,000
4.00% Withdrawal
Investments
Value after 10 Years $1,600,000
Age 55
Age 65
4.00% Withdrawal
3.00%Yield
$200,000
Annual Income
$10,750
Capital Preservation
Value after 10 Years $268,783

3. Income value after 10 years $400,000
Total Portfolio
$1,000,000
7.20% Yield
Age 55
$800,000
Annual Income
$64,000
4.00% Withdrawal
Investments
Value after 10 Years $1,600,000
4.00% Withdrawal
Necessary Yield: 9.59%
Annual Income
$20,000
Capital Preservation
Value after 10 Years $500,000
Age 55
$200,000
5.00% Withdrawal
Annual Income
$20,000
Income value after 10 years $400,000
Age 55
$200,000
GMWB

4. Case Study
At 57, Nolan weathered the storm in 2007 & He maintained $1,000,000 of investable assets in June 2009.
Today Nolan is 63 and wants to retire at age 67.
Nolan’s Retirement Income Gap: $75,000
Nolan’s goal: Maximize income in retirement
Nolan’s Concerns: Running out of income. How would another market “correction” effect his retirement income?

5. The Goal in June 2009 4.00% WD = $75,977 $1,899,434 Age End Year
Investments
Savings (4%)
Portfolio Value 57
$800,000
$200,000
$1,000,000 58 1
$857,600
$208,000
$1,065,600 59 2
$919,347
$216,320
$1,135,667 60 3
$985,540
$224,973
$1,210,513 61 4
$1,056,499
$233,972
$1,290,471 62 5
$1,132,567
$243,331
$1,375,898 63 6
$1,214,112
$253,064
$1,467,176 64 7
$1,301,528
$263,186
$1,564,714 65 8
$1,395,238
$273,714
$1,668,952 66 9
$1,495,695
$284,662
$1,780,357 67 10
$1,603,385
$296,049
$1,899,434
4.00% WD = $75,977

6. Nolan’s Assets in June 2015 S&P500 Index on June 1, 2009: 943
Age
End Year
Investments
Savings (4%)
Portfolio Value 57
$800,000
$200,000
$1,000,000
S&P500 Index on June 1, 2009: 943
S&P500 Index on June 1, 2015: 2111
124% Increase 63 6
$1,600,00
$253,064
$1,853,064
4.00% WD = $74,123

7. 4% Portfolio Withdrawal
Option 1: Stay the Course
End Year 6
Total Portfolio Value = $1,853,064
Investments
$1,600,000
Savings
$253,064
4% Portfolio Withdrawal
$74,123

8. 4% Portfolio Withdrawal 4% Portfolio Withdrawal
Option 1: Stay the Course
End Year 6
Total Portfolio Value = $1,853,064
End Year 10
Total Portfolio Value = $2,364,826
Market continues to
grow at 30%
Savings = 3% growth
Investments
$1,600,000
Savings
$253,064
Investments
$2,080,000
Savings
$284,826
4% Portfolio Withdrawal
$74,123
4% Portfolio Withdrawal
$94,593

9. 4% Portfolio Withdrawal 4% Portfolio Withdrawal
Option 1: Stay the Course
End Year 6
Total Portfolio Value = $1,853,064
End Year 10
Total Portfolio Value = $1,884,826
Market remains flat – No growth
Savings = 3% growth
Investments
$1,600,000
Savings
$253,064
Investments
$1,600,000
Savings
$284,826
4% Portfolio Withdrawal
$74,123
4% Portfolio Withdrawal
$75,393

10. 4% Portfolio Withdrawal 4% Portfolio Withdrawal
Option 1: Stay the Course
End Year 6
Total Portfolio Value = $1,853,064
End Year 10
Total Portfolio Value = $1,404,826
Market declines
(-30%)
Savings =
3% growth
Investments
$1,600,000
Savings
$253,064
Investments
$1,120,000
Investments
$1,120,000
Savings
$284,826
Savings
$284,826
4% Portfolio Withdrawal
$74,123
4% Portfolio Withdrawal
$56,193

11. Investments and Other Savings
Option 2: Add GMBW
End Year 6
Total Portfolio Value = $1,853,064
End Year 6
Total Portfolio Value = $1,853,064
Move $800,000 into an indexed Annuity with a GMWB Rider
Investments
$1,600,000
Savings
$253,064
Investments and Other Savings
$1,053,064
Investments
$1,120,000
FIA
w/GMWB
$800,000
Savings
$284,826
($600,000 from Investments and 200,000 from savings)

12. Option 2: Add GMBW Market continues to grow at 30% End Year 6
Total Portfolio Value = $1,853,064
End Year 10
Total Portfolio Value = $2,223,112
Market continues to grow at 30%
Investments and Other Savings
$1,053,064
FIA
w/GMWB
$800,000
Investments and Other Savings
$1,359,724
FIA
w/GMWB
$863,388
Annual Income
$54,388
(4% Withdrawal)
Annual Income
$56,576 (Guaranteed
from GMWB)
4% Portfolio Withdrawal
$56,193

13. Option 2: Add GMBW Market remains flat – No growth End Year 6
Total Portfolio Value = $1,853,064
End Year 10
Total Portfolio Value = $1,859,724
Market remains flat – No growth
Investments and Other Savings
$1,053,064
FIA
w/GMWB
$800,000
Investments and Other Savings
$1,359,724
FIA
w/GMWB
$800,000
Annual Income
$42,389
(4% Withdrawal)
Annual Income
$56,576 (Guaranteed
from GMWB)
4% Portfolio Withdrawal
$98,965

14. Investments and Other Savings Investments and Other Savings
Option 2: Add GMBW
End Year 6
Total Portfolio Value = $1,853,064
End Year 10
Total Portfolio Value = $1,525,220
Market declines
(-30%)
Investments and Other Savings
$1,053,064
FIA
w/GMWB
$800,000
Investments and Other Savings
$759,724
FIA
w/GMWB
$765,496
Annual Income
$30,388
(4% Withdrawal)
Annual Income
$56,576 (Guaranteed
from GMWB)
Total Annual Income
$86,964

15. Hypothetical Income after 10 Years Add Indexed Annuity with GMWB Rider
Summary: End Year 10
Hypothetical Income after 10 Years
Stay the Course
Add Indexed Annuity with GMWB Rider
Market Gains (+30%)
$94,593
$110,964
($56,576 Guaranteed)
Market is Flat
$75,393
$98,965 ($56,576 Guaranteed)
Market Declines (-30%)
$56,193
$86,964 ($56,576 Guaranteed)

16. Hypothetical Income after 10 Years Add Indexed Annuity with GMWB Rider
Summary: End Year 10
Hypothetical Income after 10 Years
Stay the Course
Add Indexed Annuity with GMWB Rider
Market Gains (+30%)
$2,364,825
$94,593
$2,223,112
$110,964
Market is Flat
$1,859,724
$75,393
$1,859,220
$98,965
Market Declines (-30%)
$1,404,825
$56,193
$1,525,220
$86,964

17. Case Study
At 57, Nolan weathered the storm in 2007 & He maintained $1,000,000 of investable assets in June 2009.
Today Nolan is 63 and wants to retire at age 67.
Nolan’s Retirement Income Gap: $75,000
Nolan’s goal: Receive $75,000 of annual income from portfolio for life
Nolan’s Concern: The impact of how another market “correction” would effect his retirement income.

18. Hypothetical Results After 10 Years
Summary: Assuming $75,000 Withdrawal
Hypothetical Results After 10 Years
Stay the Course
Add Indexed Annuity with GMWB Rider
Value Income W/D %
Value Investments Income W/D %
Market Gains (+30%)
$2,364,825
$75,000
3.17%
$2,223,112
$1,359,724
1.35%
Market is Flat
$1,859,724
4.03%
$1,059,724
1.74%
Market Declines (-30%)
$1,404,825
5.34%
$1,525,220
$759,724
2.42%

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