Tax Planning &

Retirement Relocation

LIFETIME INCOME CASE STUDY

Presented by Puplava Financial Services, Inc.
Registered Investment Advisor

John and Cara Wallace

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.
Puplava Financial Services, Inc.
Registered Investment Advisor

ESSENTIAL INFORMATION
Client:

John and Cara Wallace.

Ages:

John is 63 and Cara is 68.

Retirement:

Both are retired.

Life expectancy:

Age 90 and 92.

Risk tolerance:

Conservative.

Investment objective:

Income and preservation of capital.

WHO ARE JOHN AND CARA WALLACE?

Name: John

Name: Cara

Age: 63

Age: 68

Job: Executive

Job: HR Director

John worked as an executive officer for his

company and was very busy with work related
travel. John would like to move to Wyoming or
Montana and settle down with his wife.

Cara worked as a HR Director and was often

very busy between work and raising her
children. Cara is willing to move but doesnt
enjoy the cold winters and would like to be
closer to both her kids and grandchildren.

WHAT IS IMPORTANT TO JOHN & CARA?

Managing Taxes

Leaving
a legacy
for heirs

Relocating in
Retirement
Maximizing
retirement income

JOHN & CARAS CURRENT BUDGET

Essentials:
Discretionary:

$80,000
$65,000
TOTAL: $145,000

Salary:

$176,000

Surplus:

$31,000

JOHN & CARAS RETIREMENT BUDGET

Essentials:
Discretionary:

$60,000
$50,000
TOTAL: $110,000

Pension/Social Security:

$80,000

Shortfall:

$30,000

JOHN & CARAS ASSETS

Non-Investment Assets
Primary Real Estate:
Investment Assets
Total Joint Accounts:
Johns Retirement:
Caras Retirement:

$375,000
$725,000
$348,000
$587,000

Total Investment Assets $1,660,000

Total Assets: $2,035,000
Liabilities:

-$268,000

Net Worth:

$1,767,000

JOHN & CARAS FINANCIAL PLAN CHALLENGES

1.

Trying to fund the many desires they

would like to pursue in retirement.

2.

Estate plans have not been updated in 15

years.

3.

Taxes are a concern since they are

receiving pensions as retirement income.

4.

Investments are spread across many

custodians and dont align with their
current risk tolerance or objective.

JOHN & CARA RETIREMENT INCOME STRATEGY

John & Caras Pensions

$24,000

Luke & Elaines Social Security

$46,000

Dividend payers @3%1

$21,750

Johns Retire. $348K

Fixed Income & Dividend payers @3.2%2

$11,000

Caras Retire.

Fixed Income & Dividend payers @3.2%3

$18,800

Total investment income

$51,550

Investment Income
Joint/ROS

$725K
$587K

Grand total income $131,550

Less budget $110,000
Surplus $21,550

1, 2, & 3: Yields are for current portfolio yields as of 8/12/16. Please see disclosures at the end of this presentation for security risks.

GOAL BASED RECOMMENDATIONS

FOR JOHN & CARA WALLACE

What am I afraid of?

Strategy

Relocating in retirement.

Sell home in CA and buy home

Maximizing retirement income.

Delay social security to age 70

Managing taxes.

Take advantage of tax benefits

with cash in WY.

and relocate to reduce expenses.

from relocation.

Creating a legacy for children.

Use stretch IRA provisions and

update estate plans to WY.

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.
Puplava Financial Services, Inc.
Registered Investment Advisor

Puplava Financial Services, Inc.

Registered Investment Advisor

If you have any specific questions or comments, please give us a call at

(858) 487-3939
Were 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