Life Is Short,

Retire Abroad

LIFETIME INCOME CASE STUDY

Danny Johnson
Registered Investment Advisor

Presented by Financial Sense Advisors, Inc.

 Important Notice:
This is a hypothetical illustration based on real life
examples. Names and circumstances have been
changed. The opinions voiced in this material are
for general information only and are not intended
to provide specific advice or recommendations for
any individual. To determine which investments or
strategies may be appropriate for you, consult
with a financial advisor prior to investing.

Financial Sense Advisors, Inc.

Registered Investment Advisor
WHO IS DANNY?
Age: 67
Job: Accountant
- He has worked hard and saved well
- Wants to retire soon and live abroad
- Seeking a professional to help determine
whether retiring abroad is financially viable
WHAT IS IMPORTANT TO DANNY?

Living abroad while

healthy and able Being able to live a
comfortable retirement
lifestyle

Danny

Managing taxes

Not outliving
retirement assets
 DANNY’S CURRENT RISK TOLERANCE?

Most Conservative 1 - 20 - 30 - 40 - 50 - 60 - 70 - 80 - 90 - 100 Most Aggressive

Current Risk Score Portfolio Risk Score

45 51
 DANNY’S CURRENT BUDGET

Income $102,000
Expenses ($65,000) Discretionary
31%

Surplus $37,000
Living Expenses
69%
 DANNY’S RETIREMENT BUDGET

Income $30,000
Expenses ($61,000)
Discretionary
38%
Shortfall ($31,000) Living Expenses
62%
Surplus:
 DANNY’S BALANCE SHEET

Home + Portfolio - Liabilities = Net Worth

$720,000 $1,300,000 ($59,000) $1,961,000

DANNY’S ASSET ALLOCATION

4%
10% Asset Allocation
31% Stocks
Bonds
Cash
Hard Assets
55%
DANNY’S FINANCIAL PLAN CHALLENGES

1. Living abroad and the implications

for retirement.

2. Protecting his estate.

3. Not running out of money.

4. Managing foreign taxes and estate

planning issues.
DANNY’S RETIREMENT INCOME STRATEGY

Social
Security

$30,000
+ Portfolio

$38,080
= $
Total
Income
$68,080

Investment Portfolio Expenses $61,000

Thomas’s IRA $622K Stocks & Bonds @ 3.2%1 $19,904
Surplus $7,080
Thomas’s Indv. $568K Stocks & Bonds @ 3.2%2 $18,176
Cash/Checking $85k

1,2 & 3: Yields are for current portfolio yields as of 4/30/18. Please see disclosures at the end of this presentation for security risks.
 GOAL BASED RECOMMENDATIONS
FOR DANNY

Maintaining a Protecting his legacy

comfortable lifestyle
• Reduce expenses to $2k/mo while in U.S. • Establish trust with Power of Attorney

• Spend $3k/mo when in Spain

Managing taxes Living abroad in Spain

• Referral for law firm that helps clients with
taxes and estate planning when living
abroad
• Sell home and use proceeds to purchase
small condo here in the States
• Use remaining proceeds to purchase small
flat in Madrid, Spain
 Disclosures:
1. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values
will decline as interest rates rise and bonds are subject to availability and change in price.

2. The payment of dividend is not guaranteed. Companies may reduce or eliminate the
payment of dividends at any given time.

3. Fixed annuities are long-term investment vehicles for retirement purposes. Gains from
tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees
are based on the claims paying ability of the issuing company. Withdrawals made prior to
age 59 1/2 are subject to a 10% IRS penalty tax and surrender charges may apply.

4. The information in this material is not intended as tax or legal advice. Please consult legal
or tax professionals for specific information regarding your individual situation.

Financial Sense Advisors, Inc.

Registered Investment Advisor
Financial Sense® Advisors, Inc.
Registered Investment Advisor

If you have any specific questions or comments, please give us a call at

(858) 487-3939
We’re happy to speak with you.

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