Various Financial Alternatives VS. Premium Finance Strategy Municipal Bond Fund Yield
Equity Account Growth
Equity Account Dividend
Annuity Account Yield
Life Policy Interest Rate
Initial Death Benefit
Income Tax Rate
6.50%
5.00%
1.50%
6.50%
6.50%
$10,498,016
35.00%
Invest VS. Interest Payment
After Tax Values of Various Financial Alternatives Same Return
Year
Bank Financed Premium
Interest Payment
After Tax Cash Flow MBF
Year End Value MB Fund
After Tax Year End Cash Flow Value Equity Equity Acc Acc
1
$430,000
$16,684
$0
$17,591
$0
2
$430,000
$27,090
$0
$47,109
$0
3
$430,000
$40,635
$0
$92,513
4
$430,000
$54,180
$0
$154,666
5
$430,000
$68,370
$0
6
$430,000
$83,850
7
$430,000
8
$0
9
$0
10
Life Policy Performance
After Tax Cash Flow Annuity
Year End Value Annuity
After Tax Policy Loans
Year End Cash Sur Value
Death Benefit
$17,518
$0
$17,273
$0
$88,983
$10,498,016
$46,823
$0
$45,941
$0
$507,010
$10,911,896
$0
$91,777
$0
$89,676
$0
$958,579
$11,359,116
$0
$153,125
$0
$149,038
$0
$1,446,376
$11,842,361
$235,158
$0
$232,319
$0
$225,288
$0
$1,973,201
$12,364,534
$0
$336,346
$0
$331,545
$0
$320,407
$0
$2,542,191
$12,928,770
$99,330
$0
$459,355
$0
$451,738
$0
$435,129
$0
$3,156,734
$13,538,458
$102,039
$0
$591,906
$0
$580,452
$0
$557,001
$0
$3,432,574
$13,769,791
$103,845
$0
$733,565
$0
$717,084
$0
$685,425
$0
$3,726,947
$14,019,760
$0
$105,350
$0
$884,510
$0
$861,633
$0
$820,411
$0
$4,041,558
$14,289,864
11
$0
$105,350
$0
$1,043,659
$0
$1,012,836
$0
$960,731
$0
$4,377,825
$14,581,727
12
$0
$106,855
$0
$1,213,044
$0
$1,172,527
$0
$1,108,230
$0
$4,737,705
$14,897,101
13
$0
$0
$0
$1,278,973
$0
$1,227,273
$0
$1,151,084
$0
$1,940,174
$11,736,601
14
$0
$0
$0
$1,348,485
$0
$1,284,049
$0
$1,196,267
$0
$2,125,973
$11,578,576
15
$0
$0
$0
$1,421,775
$0
$1,342,976
$0
$1,243,905
$0
$2,329,704
$11,412,650
16
$0
$0
$0
$1,499,049
$0
$1,404,176
$0
$1,294,133
$0
$2,573,902
$11,238,427
17
$0
$0
$0
$1,580,522
$0
$1,467,775
$0
$1,347,090
$0
$2,840,293
$11,055,493
18
$0
$0
$0
$1,666,423
$0
$1,533,902
$0
$1,402,926
$0
$3,130,718
$10,863,413
19
$0
$0
$0
$1,756,994
$0
$1,602,690
$0
$1,461,796
$0
$3,446,972
$10,661,729
20
$0
$0
$496,359
$1,329,150
$496,359
$1,127,596
$496,359
$1,000,531
$496,359
$3,266,785
$9,928,783
21
$0
$0
$496,359
$878,053
$496,359
$629,197
$496,359
$521,983
$496,359
$3,087,588
$9,159,190
22
$0
$0
$496,359
$402,439
$496,359
$106,769
$496,359
$26,350
$496,359
$2,910,884
$8,351,118
23
$0
$0
$402,439
$0
$100,358
$0
$26,350
$0
$496,359
$2,738,423
$7,502,642
Various Financial Alternatives VS. Premium Finance Strategy Municipal Bond Fund Yield
Equity Account Growth
Equity Account Dividend
Annuity Account Yield
Life Policy Interest Rate
Initial Death Benefit
Income Tax Rate
6.50%
5.00%
1.50%
6.50%
6.50%
$10,498,016
35.00%
Invest VS. Interest Payment
After Tax Values of Various Financial Alternatives Same Return
Year
Bank Financed Premium
Interest Payment
After Tax Cash Flow MBF
Year End Value MB Fund
After Tax Year End Cash Flow Value Equity Equity Acc Acc
24
$0
$0
$0
$0
$0
25
$0
$0
$0
$0
26
$0
$0
$0
$0
27
$0
$0
$0
28
$0
$0
29
$0
30
$0
31
Life Policy Performance
After Tax Cash Flow Annuity
Year End Value Annuity
After Tax Policy Loans
Year End Cash Sur Value
Death Benefit
$0
$0
$0
$496,359
$2,572,173
$6,611,742
$0
$0
$0
$0
$496,359
$2,413,788
$5,676,297
$0
$0
$0
$0
$496,359
$2,266,380
$4,694,080
$0
$0
$0
$0
$0
$496,359
$2,134,914
$3,872,919
$0
$0
$0
$0
$0
$0
$496,359
$2,024,189
$3,601,747
$0
$0
$0
$0
$0
$0
$0
$496,359
$1,931,569
$3,316,296
$0
$0
$0
$0
$0
$0
$0
$496,359
$1,859,042
$3,014,547
$0
$0
$0
$0
$0
$0
$0
$0
$496,359
$1,810,647
$2,696,267
32
$0
$0
$0
$0
$0
$0
$0
$0
$496,359
$1,784,863
$2,735,008
33
$0
$0
$0
$0
$0
$0
$0
$0
$496,359
$1,784,494
$2,803,723
34
$0
$0
$0
$0
$0
$0
$0
$0
$496,359
$1,812,533
$2,905,724
35
$0
$0
$0
$0
$0
$0
$0
$0
$496,359
$1,872,231
$3,044,594
36
$0
$0
$0
$0
$0
$0
$0
$0
$496,359
$1,966,918
$3,224,012
37
$0
$0
$0
$0
$0
$0
$0
$0
$496,359
$2,099,761
$3,447,493
38
$0
$0
$0
$0
$0
$0
$0
$0
$496,359
$2,274,414
$3,719,074
39
$0
$0
$0
$0
$0
$0
$0
$0
$496,359
$2,494,636
$4,042,913
40
$0
$0
$0
$0
$0
$0
$0
$0
$496,359
$2,762,736
$4,421,655
41
$0
$0
$0
$0
$0
$0
$0
$0
$496,359
$3,079,639
$4,856,500
42
$0
$0
$0
$0
$0
$0
$0
$0
$496,359
$3,448,695
$5,351,212
43
$0
$0
$0
$0
$0
$0
$0
$0
$496,359
$3,871,343
$5,907,556
44
$0
$0
$0
$0
$0
$0
$0
$0
$496,359
$4,346,468
$6,524,628
45
$0
$0
$0
$0
$0
$0
$0
$0
$496,359
$4,872,753
$7,201,328
46
$0
$0
$0
$0
$0
$0
$0
$0
$496,359
$5,446,669
$7,934,245
Various Financial Alternatives VS. Premium Finance Strategy Municipal Bond Fund Yield
Equity Account Growth
Equity Account Dividend
Annuity Account Yield
Life Policy Interest Rate
Initial Death Benefit
Income Tax Rate
6.50%
5.00%
1.50%
6.50%
6.50%
$10,498,016
35.00%
Invest VS. Interest Payment
After Tax Values of Various Financial Alternatives Same Return
Year
Bank Financed Premium
Interest Payment
After Tax Cash Flow MBF
Year End Value MB Fund
47
$0
$0
$0
$0
$0
48
$0
$0
$0
$0
$0
49
$0
$0
$0
$0
50
$0
$0
$0
51
$0
$0
52
$0
53
$0
54 55
Totals
After Tax Year End Cash Flow Value Equity Equity Acc Acc
Life Policy Performance
After Tax Cash Flow Annuity
Year End Value Annuity
After Tax Policy Loans
Year End Cash Sur Value
Death Benefit
$0
$0
$0
$496,359
$6,127,441
$8,254,190
$0
$0
$0
$496,359
$6,944,271
$8,650,035
$0
$0
$0
$0
$496,359
$7,937,445
$9,154,823
$0
$0
$0
$0
$0
$496,359
$9,159,360
$9,811,946
$0
$0
$0
$0
$0
$0
$496,359
$10,674,009
$10,674,009
$0
$0
$0
$0
$0
$0
$0
$496,359
$12,387,849
$12,387,849
$0
$0
$0
$0
$0
$0
$0
$496,359
$14,320,786
$14,320,786
$0
$0
$0
$0
$0
$0
$0
$0
$496,359
$16,494,522
$16,494,522
$0
$0
$0
$0
$0
$0
$0
$0
$496,359
$18,932,707
$18,932,707
$913,578
$1,891,516
$0
$1,589,435
$0
$1,515,607
$0
$17,868,924
$18,932,707
$18,932,707
Hypothetical and for Illustrative purposes only. Actual results will vary. Please consult your tax and legal advisor regarding all matters of tax and legal nature.
17.869 Matching Returns Needed to Produce the Same Tax - Free Distributions from Policy
18 16 14
14 12
$0.914M
In Millions
Investment / Interest
Premium Finance Strategy
6.50%
Investment
10
Fin Strategy
8 6 4
Muni Bonds Equity Acct 0.914
1.892
Annuity 1.589
1.516
2 Muni Bonds
14.37%
0
Various Investment Alternatives @ 6.5% Equity Account
Annuity
16.93%
16.73%
Summary of Financial Alternatives: A Premium Finance Strategy provides protection for the client in the early years. Pays the loan back to the lender. After the loan is repaid it provides tax free distributions for capital needs and / or retirement income in the future. Annual Income of $496,359.00 for 36 Years.
Hypothetical and for Illustrative purposes only. Actual results will vary. Please consult your tax and legal advisor regarding all matters of tax and legal nature.