LIFETIME INCOME CASE STUDYTim & Jane Goldberg

Presented by Financial Sense Advisors, Inc.

Annuities: There’s a Time and Place For Them Too

Registered Investment Advisor

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.

Important Notice:

Financial Sense Advisors, Inc.Registered Investment Advisor

WHO ARE TIM & JANE?

- 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

Ages: 66 & 64

Jobs: Project Manager & Secretary

Tim

WHAT IS IMPORTANT TO TIM?

Being able to retire soon

Having reliable income in retirement

Managing potential medical costs

Jane

WHAT IS IMPORTANT TO JANE?

Not outliving their assetsReducing risk in their

portfolio

Maintaining a similar lifestyle in retirement

TIM & JANE’S CURRENT RISK TOLERANCE?

Current Risk Score Portfolio Risk Score

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

30 45

TIM & JANE’S CURRENT BUDGET

Discretionary25%

Living Expenses75%

IncomeExpenses

Surplus

$210,000($112,000)

$98,000

TIM & JANE’S RETIREMENT BUDGET

Discretionary30%

Living Expenses70%

IncomeExpenses

Shortfall

$60,000($110,000)

($50,000)

TIM & JANE’S BALANCE SHEET

+ - =$680,000 $2,700,000 ($380,000) $3,000,000

Portfolio LiabilitiesReal

Estate Net Worth

TIM & JANE’S ASSET ALLOCATION

25%

45%

30% StocksBondsCash

Asset Allocation

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.

$Investment Portfolio

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.

TIM & JANE’S RETIREMENT INCOME STRATEGY

+ =$33,000 $84,800 $144,800

PortfolioSocial

Security

Total Income

Tim’s Retire. $440K Stocks & Bonds @ 3.2%1 $14,080

Jane’s Retire. $700K Stocks & Bonds @ 3.2%2 $22,400

Joint Account $1.51M Stocks & Bonds @ 3.2%3 $48,320

Cash $350K

Expenses

Surplus

($110,000)

$34,800

+$27,000

Pension

GOAL BASED RECOMMENDATIONS FOR TIM & JANE

Reducing Risk in Portfolio Creating Steady Income

Protecting Nest Egg

• Invest $500k into an annuity to produce stable income and reduce sequence risk

• Focus on bonds and dividend paying stocks

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

• Reduce exposure to growth oriented and high beta stocks

• A fixed indexed annuity can act as a bond proxy

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.

Disclosures:

Financial Sense Advisors, Inc.Registered Investment Advisor

Financial Sense® Advisors, Inc.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

Registered Investment Advisor

Advisory services offered by Financial Sense® Advisors, Inc. An SEC Registered Investment Advisor.