This spreadsheet and presentation system is terrific. You input a few assumptions regarding the client’s expectations on rates of return he/she can obtain in investment grade bonds and equities and the associated taxation rates.
The program quickly illustrates the before tax blended rate of return and what affect the taxation drag will have. Then an assumption is made on how much capital or annual contributions will be made. What will it grow to? How much income on an after tax basis can that accumulated capital provide? What happens to projected retirement income cash flow if the market drops significantly like in 2008 or between 2000-2002?
The goal is to ‘compound not rebound’…where zero becomes the client’s hero! This program will contrast the two approaches and show the importance of Indexed Universal Life in a retirement and legacy plan.