Do You Have
Disaster Insurance?
LIFETIME INCOME CASE STUDY
Presented by Puplava Financial Services, Inc.
Registered Investment Advisor Bob Green
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: Bob Green.
Age: Bob is age 66.
Retirement: He is retired.
Life expectancy: Age 93.
Risk tolerance: Moderately Conservative.
Investment objective: Income with Capital Preservation.
WHO IS
BOB?
Name: Bob
Age: 66
Job: Government Contractor
Bob has been a government contractor for over 30 years and just recently retired. Bob has managed his own finances and considers
himself a moderately conservative investor mainly investing in ETFs and bond funds. Bob never married and has greatly enjoyed the
single life. Unfortunately, he was just recently diagnosed with a rare autoimmune disorder. Given Bobs recent shift in his lifes
circumstances, hes decided to take some time for himself to travel the world and enjoy life while he remains healthy. Bob would like
to maintain the same lifestyle without making any sacrifices or lowering his living expenses. He is somewhat concerned about
longevity given that his parents and grandparents all lived well into their 90s. Bob is also concerned about the costs of Long Term
Care given his medical condition.
BOBS CURRENT RISK STRATEGY
Most Conservative 1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 - 10 Most Aggressive
Current Risk Score Portfolio Risk Score
4 8
WHAT IS IMPORTANT TO BOB?
Maximizing income
Taking care of his
health
Managing the costs
of assisted living
Maintaining the
same lifestyle
BOBS RETIREMENT BUDGET
Essentials: $45,000
Discretionary: $32,000
TOTAL: $77,000
Bobs Pension: $42,000
Social Security: $24,000
Shortfall: -$11,000
ANTICIPATED MEDICAL COSTS
Projected Medical Costs $257,000
Assisted Living (4 Years @ $96k/yr): $384,000
TOTAL: $641,000
BOBS ASSETS
Non-Investment Assets
Primary Residence: $480,000
Investment Assets
Bobs Retirement: $315,000
Bobs Individual: $940,000
CDs & Cash: $100,000
Total Investment Assets: $1,355,000
Total Assets: $1,835,000
Liabilities: -$250,000
Net Worth: $1,585,000
BOBS FINANCIAL PLAN CHALLENGES
1. Covering the anticipated medical
costs in retirement
2. Maintaining current lifestyle in
retirement
3. Managing risk of outliving assets
BOBS RETIREMENT INCOME STRATEGY
Bobs Pension $42,000/Year
Bobs Social Security $24,000/Year
Investment Income
Bobs Retire. $315K Fixed Income & Dividend Payers @ 2.8%1 $8,820
Bobs Individual $940K Fixed Income & Dividend Payers @ 2.8%2 $26,320
CDs & Cash $100K
Total Investment Income $35,140
Grand Total Income $101,140
Less Budget -$77,000
Surplus $24,140
1, 2, & 3: Yields are for current portfolio yields as of 4/31/17. Please see disclosures at the end of this presentation for security risks.
GOAL BASED RECOMMENDATIONS
FOR BOB
Goal Strategy
Due to the the diagnosis, he does not qualify for LTC. Instead, we used
a portion of his assets for an indexed annuity that had special riders
Covering Medical Costs for long-term care needs. This would help meet any further needs to
better manage the expenses.
Managing Healthcare Reviewed current Medicare supplements to make sure they met his
Costs needs and were cost efficient.
Maintain Current Reallocated assets to focus on income and reduce overall risk. Also
Lifestyle in Retirement recommended he reduce annual expenses in down market years.
If longevity becomes more a concern, then he could sell his home or
Not Outliving Assets consider a reverse mortgage to meet funding shortfall.
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
Advisory services offered by Puplava Financial Services, Inc.
An SEC Registered Investment Advisor.
