retirement planning

Early Retirement Plan

Do you want to Retire Early?
(or have extra money for College Funding)

Here are some examples of Early Retirement Plans showing what you might do with the Private Plan.

Most of these Private Plans average 9% return but we use 8% for the examples.

Deanna is 41 and she has no retirement plan.  She has a good job, so she decided to put $1000 per month into the Private Plan.  How will this work out for her retirement in 24 years if she puts money in for 20 years consistently?

Example Comparison – Age 41: save $1000/month for 20 years @ 8% net

Account Value Age 65

$625,000

Retirement Income Age 65

$84,000 per year (tax free)

Retirement Income Age 71

$84,000 per year (tax free)

Retirement Income Age 81

$84,000 per year (tax free)

Retirement Income Age 91

$84,000 per year (tax free)

Retirement Income Age 100

$84,000 per year (tax free)

 

 

Account Value Age 100

$5,500,000

 

Justin is 31 and she has had a retirement plan for 5 years that has accumulated $30,000.  Additionally, his rich Uncle just died and is leaving him $200,000 in an deferred convertible account..  He has an executive job and makes $75K per year.  He sets up a Private Plan with us, and we optimize his deposits for $25K per year for 10 years to fund the Plan.  Justin wants to retire at age 50...how will he fair?

Example Comparison – Age 31: save $25,000 for 10 years @ 8% net

Account Value Age 50

$605,000

Retirement Income Age 50

$81,000 per year (tax free)

Retirement Income Age 60

$81,000 per year (tax free)

Retirement Income Age 70

$81,000 per year (tax free)

Retirement Income Age 90

$81,000 per year (tax free)

 

 

Account Value Age 100

$11,500,000

 

Janet is 50 and has been saving in an IRA for 25 years, and has a total of $300K in her retirement account.  She converts it to a private plan with four input payments over 4 years.  She wants to retire at 60.  Here is the result with the Private Plan without any more inputs after the first 4.  She wants to continue depositing funds in an IRA in addition to this private account.

Example Comparison – Age 50: deposit $300,000 over 4 years @ 8% net

Account Value Age 60

$364,000

Retirement Income Age 60

$38,000 per year (tax free)

Retirement Income Age 70

$38,000 per year (tax free)

Retirement Income Age 80

$38,000 per year (tax free)

Retirement Income Age 90

$38,000 per year (tax free)

 

 

Account Value Age 100

$3,200,000

Contact me for an personal interview at no cost to you.  We must analyze your position, and your present investments and assets to see if this is a fit for you.

retirement planning

Lee Zebold, BSc, LX
(213) 977-0880
lzebold@sbcglobal.net
 

 

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