Sales Idea - CD Maximization

THE CONCEPT

One BIG problem for seniors today is the persistent low interest rate environment on CDs and other low-yielding vehicles. We can double, triple, or even quadruple spendable income while preserving a tax-free death benefit to heirs and creating a funding stream for LTC expenses.

THE SCENARIO

Marty Maxwell of California is 70, healthy, and doesn't smoke. He owns a $500,000 CD earning today's highest rate at 1.85%. With a combined tax rate of 33% (25% Federal and 8% CA State), his annual interest income is quickly eroded from $9,250 to $6,198. He has started to withdraw his principal plus interest for living expenses, increasing the risk of outliving his funds.

He needs more income, must have liquidity for long term care, and wants to pass the $500,000 principal to his heirs. We've got a solution: (scenario created on 1/13/2013)

THIS STRATEGY WORKS GREAT FOR JOINT INCOME, TOO:

Marty & Maria Maxwell of California are both 70, healthy, and don't smoke. They own a $500,000 CD earning today's highest rate at 1.85%. With a combined tax rate of 33% (25% Federal and 8% CA State), their annual interest income is quickly eroded from $9,250 to $6,689. They have started to withdraw principal and interest for living expenses, increasing the risk of outliving their funds.

They need more income, must have liquidity for long term care, and appreciate a death benefit for income options at each death. We've got a solution: