California Exodus 2.

LIFETIME INCOME CASE STUDY

Matt & Emily Curtis
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 MATT & EMILY?
Ages: 62 & 64

Jobs: Treasurer & Paralegal

- Bill is not in a rush to retire but is fed up

with CA taxes and is exploring the idea of
relocating to another state.

- Emily is still passionate about her work

but doesn’t think they have saved enough
to retire in CA.

- Seeking a professional to help determine

the feasibility of leaving CA and moving to
a more affordable, tax-friendly state.
 WHAT IS IMPORTANT TO MATT?

Mitigating high taxes Managing CA’s high

cost of living

Matt

Relocating at
retirement
 WHAT IS IMPORTANT TO EMILY?

Accomplishing their
Protecting their nest retirement goals
egg

Emily

Spending quality time

with family
 MATT & EMILY’S CURRENT RISK TOLERANCE?

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

Current Risk Score Portfolio Risk Score

38 62
 MATT & EMILY’S CURRENT BUDGET

Income $193,000
Expenses ($160,000)
Discretionary
38%
Surplus $33,000 Living Expenses
62%
MATT & EMILY’S RETIREMENT BUDGET
IF THEY REMAIN LIVING IN CA

Income $103,000
Expenses ($142,000)
Discretionary
37%
Shortfall ($39,000) Living Expenses
63%
MATT & EMILY’S RETIREMENT BUDGET
IF THEY RELOCATE TO MONTANA

Income $103,000
Expenses ($111,000)
Discretionary
43%
Shortfall ($8,000) Living Expenses
57%
 MATT & EMILY’S BALANCE SHEET

Real
Estate + Portfolio - Liabilities = Net Worth

$655,000 $935,000 ($155,000) $1,435,000

MATT & EMILY’S FINANCIAL PLAN CHALLENGES

1. Managing the high costs of living if

Matt & Emily chose to live in CA.

2. Mitigating the impact of taxes.

3. Being able to achieve all retirement

goals.
MATT & EMILY’S RETIREMENT INCOME STRATEGY
BASED ON THEM RELOCATING TO MONTANA

Pension

$52,000
+ Social
Security

$51,000
+ Portfolio

$33,920
= $
Total
Income
$136,920

Investment Portfolio Expenses ($111,000)

Matt’s Retire. $380K Stocks & Bonds @ 3.2%1 $12,160
Surplus $25,920
Emily’s Retire. $480K Stocks & Bonds @ 3.2%2 $15,360
Home Proceeds $200K Stocks & Bonds @ 3.2%3 $6,400
Savings & Cash $95K

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 MATT & EMILY
Mitigating taxes
• Moving to a place like MT would
significantly reduce the impact of
SALT taxes
• Recommended they visit several cities to
determine the “best fitting” location for
them
Accomplishing retirement
goals
• Leaving CA would allow them the
freedom to live the lifestyle they chose
• Use extra cash flow to enjoy more travel
and vacations with family
Managing expenses
• Sell home in CA and use portion of
proceeds to purchase MT home
• MT has a significantly lower cost of
living
Updating asset allocation
• Invest the remaining sales proceeds
from sale of home to produce
additional income
• Reduce risk in portfolio to better reflect
risk tolerance and minimize sequence
risk
 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. 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
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