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Arthur Baxter & Allison Baxter PDF

102 Pages·2017·0.8 MB·English
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Premium Financing Integrated with Wealthy and Wise (Part 1 of 2) For: Arthur Baxter & Allison Baxter Presented By: [Licensed user’s name appears here] Premium Financing Integrated with Wealthy and Wise® Table of Contents Comparison of: Current Plan vs. Add Premium Financing Page 1 Financial Analysis: Details of the Current Plan Page 11 Details of the Premium Financing Page 52 Premium Financing Integrated with Wealthy and Wise® Comparison of Current Plan vs. Add Premium Financing Date: 05/18/2017 Page 1 of 100 Comparison of Current Plan vs. Add Premium Financing Presented By: [Licensed user’s name appears here] For: Arthur Baxter & Allison Baxter Testing Financial Tolerance for Premium Financing Preface The accompanying report contains an analysis ofyour current financialplan compared to the addition of a life insurance policy funded by premium financing. The material examines the following two situations: Strategy 1 reflects your current financial plan. Strategy 2 illustrates the results of acquiring a life insurance policy owned by a trust formed on behalf of your family that is funded using premium financing secured from an independent lender. The accompanying report is presented in three parts, as follows: 1. Comparison of the results from each Strategy; 2. Details of Strategy 1; 3. Details of Strategy 2. Although all the material should be reviewed, you may find the most valuable information is in the Comparison section. The most important individual reports are the Cash Flow Analysis, Hypothetical Net Worth Illustration, and Wealth Transfer Summary. The balance of the material provides backup for the overall analysis. The material presented should provide a sound basis for evaluating your current situation as well as the effect that this planning strategy has on preservation of your family’s wealth. Date: 05/18/2017 Page 2 of 100 Comparison of Current Plan vs. Add Premium Financing Presented By: [Licensed user’s name appears here] For: Arthur Baxter & Allison Baxter Comparison of Alternatives $180,000,000 Effect on Net Worth (After Providing Spendable Cash Flow) $135,000,000 $126,330,371 $90,000,000 $83,934,684 Strategy 1 $45,000,000 Strategy 2 $0 50/45 60/55 70/65 80/75 90/85 100/95 Ages (Client/Spouse) $30,000,000 Effect on Cumulative Spendable Cash Flow Provided by Ages 99/94 $24,184,834 $24,184,834 $22,500,000 Strategy 1 Strategy 2 Current Add Plan Trust-Owned Premium $15,000,000 Financing $7,500,000 $0 Date: 05/18/2017 Page 3 of 100 Comparison of Current Plan vs. Add Premium Financing Presented By: [Licensed user’s name appears here] For: Arthur Baxter & Allison Baxter Comparison of Alternatives $240,000,000 Effect on Family Net Worth* (After Providing Spendable Cash Flow) $180,000,000 $172,571,120 $120,000,000 $126,330,371 Strategy 2 $60,000,000 Strategy 1 $0 50/45 60/55 70/65 80/75 90/85 100/95 Ages (Client/Spouse) $30,000,000 Effect on Cumulative Spendable Cash Flow Provided by Ages 99/94 $24,184,834 $24,184,834 $22,500,000 Strategy 1 Strategy 2 Current Add Plan Trust-Owned Premium $15,000,000 Financing $7,500,000 $0 *Family Net Worth includes assets outside the estate. Date: 05/18/2017 Page 4 of 100 Comparison of Current Plan vs. Add Premium Financing Presented By: [Licensed user’s name appears here] For: Arthur Baxter & Allison Baxter Comparison of Alternatives $40,000,000 Effect on Transfer Taxes $30,000,000 $32,544,832 $20,000,000 $16,258,558 Strategy 2 $10,000,000 Strategy 1 $0 50/45 60/55 70/65 80/75 90/85 100/95 Ages (Client/Spouse) $30,000,000 Effect on Cumulative Spendable Cash Flow Provided by Ages 99/94 $24,184,834 $24,184,834 $22,500,000 Strategy 1 Strategy 2 Current Add Plan Trust-Owned Premium $15,000,000 Financing $7,500,000 $0 Date: 05/18/2017 Page 5 of 100 Comparison of Current Plan vs. Add Premium Financing Presented By: [Licensed user’s name appears here] For: Arthur Baxter & Allison Baxter Comparison of Alternatives $200,000,000 Effect on Wealth to Heirs $150,000,000 $156,312,562 $100,000,000 $93,785,539 Strategy 2 $50,000,000 Strategy 1 $0 50/45 60/55 70/65 80/75 90/85 100/95 Ages (Client/Spouse) $30,000,000 Effect on Cumulative Spendable Cash Flow Provided by Ages 99/94 $24,184,834 $24,184,834 $22,500,000 Strategy 1 Strategy 2 Current Add Plan Trust-Owned Premium $15,000,000 Financing $7,500,000 $0 Date: 05/18/2017 Page 6 of 100 Comparison of Current Plan vs. Add Premium Financing Presented By: [Licensed user’s name appears here] For: Arthur Baxter & Allison Baxter Comparison of Alternatives at Ages 99/94 Strategy 1 Strategy 2 Current Plan Add Trust-Owned Premium Financing Total Wealth Distributed: $126,330,371 Total Wealth Distributed: $172,571,120 Transfer Taxes $16,258,558 Transfer Taxes $32,544,832 Heirs $93,785,539 Heirs $156,312,562 Date: 05/18/2017 Page 7 of 100 Comparison of Current Plan vs. Add Premium Financing Presented By: [Licensed user’s name appears here] For: Arthur Baxter & Allison Baxter Summary Analysis of Alternatives Effect on Cumulative Spendable Cash Flow Provided by Ages 99/94 Strategy 1 Current $24,184,834 Plan Strategy 2 Add Trust-Owned $24,184,834 Premium Financing $0 $7,000 $14,000 $21,000 $28,000 (Thousands of dollars) Values at Ages 99/94 (After Providing Spendable Cash Flow) $220,000,000 $172.6M $165,000,000 $156.3M $126.3M $110,000,000 $93.79M $55,000,000 $32.54M $16.26M $0 Strategy 1 Strategy 2 Current Plan Add Trust-Owned Premium Financing Cumulative Spendable Cash Flow Family Net Worth* Transfer Taxes Wealth to Heirs *Family Net Worth includes assets outside the estate. Date: 05/18/2017 Page 8 of 100

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The accompanying report contains an analysis of your current financial plan compared to the Net Worth Illustration, and Wealth Transfer Summary. Column (4) has been reduced by an assumed management fee of 0.50%.
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Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.