Page 83 - Ready Set Retire
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Ready. Set. Retire!
Figure 12: Roth Advantage vs. typical qualified plan.
The red columns are the traditional Monte Carlo plan that Bob
and Judy received from their advisor. The green columns are
the Roth Advantage plan. The first two columns are total
income, and as you can see, lifetime income went from
$307,080 to $594,475, nearly twice as much. This is because we
abandoned the risk-based income model from their previous
plan, and set them up in a guaranteed income plan.
Next, we eliminated $149,619 in lifetime taxes. This came
about by eliminating $31,304 in lifetime income taxes, and
$118,169 in taxes their beneficiaries would have had to pay,
assuming the plan was followed as designed. The Roth
Advantage plan would yield income and bequests totaling
$738,170, vs. $523,993 from the more traditional approach.
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