** Values may have changed due to the IRS 7702 calculations and dividends. So, at age 71, when Sister #1 begins taking income from her 401(k) account at a 5% withdrawal rate, she is able to withdraw approximately $37,060 annually. Remember, this income is 100% taxable. Now if taxes never increase at her current tax rate of 22%, Sister #1 will net $28,907. Think about this: sister #1 had basically no access to her money from age 30 to age 59½, and should she become disabled, her plan will not be completed. Also, she has no life insurance for her family. What happens if Sister #1 should die at age 71? Her family will receive her IRA of $741,149 minus $163,064 due in taxes. The net of $578,085 after taxes. The Stretch IRA strategy is no longer available. And should sister #2 die when she is 71, her family will receive the $851,045 from the PB account, plus the net death benefit of $550,618 for a total of $1,431,663 all income tax free. Sister, one deposits her $7,500 in the IRA program and dies after one year, her family will receive only the $7,500 plus the interest it earns for the year. An important benefit of the PB strategy is the fact that in the event of death or total disability, the plan self-completes itself. For example, sister #2 invests $7,500 into her 401(k) and becomes disabled in year one, her plan completes itself. She or her family will receive all the benefits of the plan because the disability waiver continues to pay her deposits. Which scenario would you want for your family? I want to share with you another example of how you can use the PB in your business for buying equipment, purchasing inventory, having liquidity for those down cycles, or just wanting to build yourself a retirement program without obligating yourself to include your employees and avoiding all the government’s red tape. In addition, you will have your account protected from a frivolous lawsuit in most states, and with your PB, you will not have your money exposed to the schemes
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