Annuities: There’s a Time

and Place For Them Too

LIFETIME INCOME CASE STUDY

Tim & Jane Goldberg
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 TIM & JANE?
Ages: 66 & 64

Jobs: Project Manager & Secretary

- Tim built a very successful consulting

business but has had some recent health
concerns

- Jane managed the households finances

over the years and wants to give up that
responsibility when they retire.

- Seeking a professional to help them

manage risk and create investment
income they can live off
 WHAT IS IMPORTANT TO TIM?

Having reliable
income in retirement Being able to retire
soon

Tim

Managing potential
medical costs
 WHAT IS IMPORTANT TO JANE?

Not outliving their

Reducing risk in their assets
portfolio

Jane

Maintaining a similar
lifestyle in retirement
 TIM & JANE’S CURRENT RISK TOLERANCE?

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

Current Risk Score Portfolio Risk Score

30 45
 TIM & JANE’S CURRENT BUDGET

Income $210,000
Expenses ($112,000) Discretionary
25%

Surplus $98,000
Living Expenses
75%
TIM & JANE’S RETIREMENT BUDGET

Income $60,000
Expenses ($110,000) Discretionary
30%

Shortfall ($50,000)
Living Expenses
70%
 TIM & JANE’S BALANCE SHEET

Real
Estate + Portfolio - Liabilities = Net Worth

$680,000 $2,700,000 ($380,000) $3,000,000

TIM & JANE’S ASSET ALLOCATION

25%
Asset Allocation
30%
Stocks
Bonds
Cash

45%
TIM & JANE’S FINANCIAL PLAN CHALLENGES

1. Having predictable income in

retirement.

2. Managing emotions and

investor biases.

3. Meeting their income desires

in retirement.
TIM & JANE’S RETIREMENT INCOME STRATEGY

Pension

$27,000
+ Social
Security

$33,000
+ Portfolio

$84,800
= $
Total
Income
$144,800

Investment Portfolio Expenses ($110,000)

Tim’s Retire. $440K Stocks & Bonds @ 3.2%1 $14,080
Surplus $34,800
Jane’s Retire. $700K Stocks & Bonds @ 3.2%2 $22,400
Joint Account $1.51M Stocks & Bonds @ 3.2%3 $48,320
Cash $350K

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 TIM & JANE

Reducing Risk in Portfolio Creating Steady Income

• Reduce exposure to growth oriented • Invest $500k into an annuity to produce
and high beta stocks stable income and reduce sequence risk

• A fixed indexed annuity can act as a • Focus on bonds and dividend paying
bond proxy stocks

Protecting Nest Egg

• Using an annuity allows investments the
opportunity to grow while at the same
time reduce volatility of their assets
 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.