CEO Gets $15,000 per Month + $3 Mil Legacy !
In this case, we had a retired CEO. His needs were much greater, his situation was pretty strong, yet again with him, one wrong move and he would have to go back to work.
He had already lost $563,000 in his 401(k) when he met with me for the first time. His house was paid off, but not his cars. He and his wife decided that they could live comfortably on $15,000 per month without changing their lifestyle.
Luckily he still had $2,746,634 left in his crashed 401(k) so we went to work and this was his solution.
We set him up with an Annuity that will pay him $17,000 per month for the rest of his life. If he dies sooner than 13.46 years, his wife and or his heirs will continue to receive the income until the principle has been used up.
We also had him get a new mortgage on his house for $491,123. With $50,000 of it, he paid off his two cars freeing up $732 per month in payments. With the remaining $441,123 we had him purchase a Guaranteed Permanent Second to Die Life Insurance Contract for $3,000,000. This was purchased inside of an Irrevocable Trust in order to avoid estate, as well as income taxes when it is passed to his heirs.
What did he achieve ? He got his $15,000 per month that he and his wife asked for. He also eliminated his non-preferred car debt. Additionally, he set up a $3 million dollar Family Legacy for his children when he and his wife pass on, which will be both income and estate tax free. It will be paid for by the additional $2,000 per month above his $15,000 that he is receiving from his Annuity. This is being added to the extra money that they are saving from paying off the two cars. So essentially, his new mortgage that paid for the instant estate, he gets with no extra out of pocket expense !
As you can see, all his needs and his wife’s needs were more than taken care of. And his kids get a bonus of $3,000,000, part of which they can use to pay any remaining balance on his mortgage.
