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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 Managing expenses


• Moving to a place like MT would • Sell home in CA and use portion of
significantly reduce the impact of proceeds to purchase MT home
SALT taxes
• Recommended they visit several cities to • MT has a significantly lower cost of
determine the “best fitting” location for living
them

Accomplishing retirement Updating asset allocation


goals • Invest the remaining sales proceeds
from sale of home to produce
• Leaving CA would allow them the
additional income
freedom to live the lifestyle they chose
• Reduce risk in portfolio to better reflect
• Use extra cash flow to enjoy more travel
risk tolerance and minimize sequence
and vacations with family
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
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

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An SEC Registered Investment Advisor.