Zero estate tax planning

Comparison of Plans For: Nathan Baier & Greta Baier

Presented By: Daniel P. Wachs CFP,ChFC,CLU 1431 Opus Place Suite 630 Downers Grove, IL 60515 Phone: 630-445-1399 Email: dwachs@perpetualwm.com

Sample Financial Analysis - Comparison #2 Presented By: Daniel Wachs

For: Nathan Baier & Greta Baier

Comparison of Alternatives

$80,000,000

Net Worth (After Providing Spendable Cash Flow)

$60,000,000

$49,681,699 $40,000,000 Strategy 1 $32,723,585

Strategy 3

$20,000,000

$0 65/60

70/65

75/70

80/75 85/80 Ages (Client/Spouse)

90/85

95/90

At Year 30 Strategy 1: Status Quo

$49,681,699

Strategy 3: Zero Estate Tax Plan #2

$32,723,585

Values on this page may include non-guaranteed life insurance values. If so, actual results are likely to vary, and this report is not valid unless accompanied by a life insurance basic illustration that details non-guaranteed and guaranteed elements.

Date: 01/01/2013

Page 1 of 8

Sample Financial Analysis - Comparison #2 Presented By: Daniel Wachs

For: Nathan Baier & Greta Baier

Comparison of Alternatives

$60,000,000

Wealth to Heirs

$45,000,000

$34,167,269 $30,000,000 Strategy 1

$27,378,460

Strategy 3

$15,000,000

$0 65/60

70/65

75/70

80/75 85/80 Ages (Client/Spouse)

90/85

95/90

At Year 30 Strategy 1: Status Quo

$34,167,269

Strategy 3: Zero Estate Tax Plan #2

$27,378,460

Values on this page may include non-guaranteed life insurance values. If so, actual results are likely to vary, and this report is not valid unless accompanied by a life insurance basic illustration that details non-guaranteed and guaranteed elements.

Date: 01/01/2013

Page 2 of 8

Sample Financial Analysis - Comparison #2 Presented By: Daniel Wachs

For: Nathan Baier & Greta Baier

Comparison of Alternatives

$40,000,000

Wealth to Charity

$32,723,585 $30,000,000

Strategy 3

$20,000,000

$10,000,000

Strategy 1 $0

$0 65/60

70/65

75/70

80/75 85/80 Ages (Client/Spouse)

90/85

At Year 30 Strategy 1: Status Quo Strategy 3: Zero Estate Tax Plan #2

Date: 01/01/2013

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$0 $32,723,585

95/90

Sample Financial Analysis - Comparison #2 Presented By: Daniel Wachs

For: Nathan Baier & Greta Baier

Comparison of Alternatives $80M

$80M

Net Worth

Transfer Taxes

(After Providing Spendable Cash Flow)

$60M

$60M

$49.69M $40M

$40M $32.73M

$20M

$20M $16.52M

$0M 65/60

70/65

$80M

75/70 80/75 85/80 Ages (Client/Spouse)

90/85

$0M 65/60

95/90

$0.00M 70/65

$80M

Wealth to Charity

$60M

$60M

$40M

$40M

75/70 80/75 85/80 Ages (Client/Spouse)

90/85

95/90

Wealth to Heirs

$32.73M $20M

$0M 65/60

$34.17M $27.38M

$20M

$0.00M 70/65

75/70 80/75 85/80 Ages (Client/Spouse)

90/85

95/90

$0M 65/60

70/65

75/70 80/75 85/80 Ages (Client/Spouse)

90/85

95/90

Strategy 1: Status Quo Strategy 3: Zero Estate Tax Plan #2

Values on this page may include non-guaranteed life insurance values. If so, actual results are likely to vary, and this report is not valid unless accompanied by a life insurance basic illustration that details non-guaranteed and guaranteed elements.

Date: 01/01/2013

Page 4 of 8

Sample Financial Analysis - Comparison #2 Presented By: Daniel Wachs

For: Nathan Baier & Greta Baier

Comparison of Alternatives at Ages 94/89

Net Worth $49,681,699 Transfer Taxes $16,514,430

Strategy 1

Wealth to Heirs $34,167,269

Status Quo Wealth to Charity $0

Net Worth $32,723,585 Transfer Taxes $0

Strategy 3 Zero Estate Tax Plan #2

Wealth to Heirs $27,378,460 Wealth to Charity $32,723,585

$0

$15,000

$30,000

$45,000

$60,000

(Thousands of dollars)

Values on this page may include non-guaranteed life insurance values. If so, actual results are likely to vary, and this report is not valid unless accompanied by a life insurance basic illustration that details non-guaranteed and guaranteed elements.

Date: 01/01/2013

Page 5 of 8

Sample Financial Analysis - Comparison #2 Presented By: Daniel Wachs

For: Nathan Baier & Greta Baier

Comparison of Alternatives at Ages 94/89

Strategy 1

Strategy 3

Status Quo Total Wealth Distributed: $50,681,699

Zero Estate Tax Plan #2 Total Wealth Distributed: $60,102,045

Transfer Taxes $16,514,430

Heirs $34,167,269

Heirs $27,378,460

Charity $32,723,585

Values on this page may include non-guaranteed life insurance values. If so, actual results are likely to vary, and this report is not valid unless accompanied by a life insurance basic illustration that details non-guaranteed and guaranteed elements.

Date: 01/01/2013

Page 6 of 8

Sample Financial Analysis - Comparison #2 Presented By: Daniel Wachs

For: Nathan Baier & Greta Baier

Summary Analysis of Alternatives Cumulative Spendable Cash Flow Provided by Ages 94/89

Strategy 1 $9,515,084

Status Quo

Strategy 3 Zero Estate Tax Plan #2

$9,515,084

$0

$3,000

$6,000 (Thousands of dollars)

$9,000

$12,000

Values at Ages 94/89 (After Providing Spendable Cash Flow) $60,000,000

$49.68M $45,000,000

$34.17M

$32.72M

$32.72M

$30,000,000

$27.38M

$16.51M $15,000,000

$0

$0

$0

Strategy 1 Status Quo

Strategy 3 Zero Estate Tax Plan #2

Cumulative Spendable Cash Flow Net Worth Transfer Taxes Wealth to Heirs Wealth to Charity

Values on this page may include non-guaranteed life insurance values. If so, actual results are likely to vary, and this report is not valid unless accompanied by a life insurance basic illustration that details non-guaranteed and guaranteed elements.

Date: 01/01/2013

Page 7 of 8

Sample Financial Analysis - Comparison #2 Presented By: Daniel Wachs

For: Nathan Baier & Greta Baier

Comparison of Alternatives

Spendable Cash Flow

Net Worth*

Wealth to Charity

Wealth to Heirs

Strategy 1

Strategy 3

Strategy 1

Strategy 3

Strategy 1

Strategy 3

Strategy 1

Strategy 3

Year

M/F Ages

Status Quo

Zero Estate Tax Plan #2

Status Quo

Zero Estate Tax Plan #2

Status Quo

Zero Estate Tax Plan #2

Status Quo

Zero Estate Tax Plan #2

1 2 3 4 5 6 7 8 9 10

65/60 66/61 67/62 68/63 69/64 70/65 71/66 72/67 73/68 74/69

200,000 206,000 212,180 218,545 225,102 231,855 238,810 245,975 253,354 260,955

200,000 206,000 212,180 218,545 225,102 231,855 238,810 245,975 253,354 260,955

11,866,328 12,383,747 12,983,852 13,648,640 14,370,763 15,119,146 15,913,368 16,754,369 17,643,883 18,584,092

11,684,503 12,013,006 12,416,827 12,875,226 13,379,722 13,899,360 14,453,151 15,043,788 15,662,231 16,310,900

0 0 0 0 0 0 0 0 0 0

11,684,503 12,013,006 12,416,827 12,875,226 13,379,722 13,899,360 14,453,151 15,043,788 15,662,231 16,310,900

11,895,083 12,263,173 12,686,290 13,057,246 13,473,326 15,163,279 15,901,591 16,684,889 17,515,084 18,394,584

16,054,280 16,236,680 16,435,080 16,651,010 16,885,190 17,138,040 17,406,430 17,698,620 18,012,550 18,349,130

11 12 13 14 15 16 17 18 19 20

75/70 76/71 77/72 78/73 79/74 80/75 81/76 82/77 83/78 84/79

268,783 276,847 285,152 293,707 302,518 311,593 320,941 330,570 340,487 350,701

268,783 276,847 285,152 293,707 302,518 311,593 320,941 330,570 340,487 350,701

19,473,556 20,414,755 21,410,073 22,461,095 23,570,989 24,742,719 25,979,344 27,284,009 28,659,943 30,110,459

16,881,088 17,475,129 18,093,869 18,737,516 19,406,886 20,102,439 20,824,558 21,573,528 22,349,533 23,152,637

0 0 0 0 0 0 0 0 0 0

16,881,088 17,475,129 18,093,869 18,737,516 19,406,886 20,102,439 20,824,558 21,573,528 22,349,533 23,152,637

19,222,236 20,100,869 21,032,971 18,092,542 18,720,812 19,386,718 20,092,500 20,840,515 21,633,239 22,473,275

18,705,450 19,083,750 19,477,850 19,887,340 20,322,760 20,786,550 21,277,670 21,790,400 22,318,930 22,860,980

21 22 23 24 25 26 27 28 29 30

85/80 86/81 87/82 88/83 89/84 90/85 91/86 92/87 93/88 94/89

361,222 372,059 383,221 394,717 406,559 418,756 431,318 444,258 457,586 471,313

361,222 372,059 383,221 394,717 406,559 418,756 431,318 444,258 457,586 471,313

31,639,908 33,252,104 34,950,997 36,740,687 38,625,434 40,611,479 42,704,068 44,908,780 47,231,587 49,681,699

23,983,655 24,842,645 25,729,544 26,644,159 27,586,157 28,556,727 29,555,733 30,582,963 31,638,155 32,723,585

0 0 0 0 0 0 0 0 0 0

23,983,655 24,842,645 25,729,544 26,644,159 27,586,157 28,556,727 29,555,733 30,582,963 31,638,155 32,723,585

23,363,395 24,306,516 25,305,707 26,364,196 27,485,375 28,672,897 29,930,625 31,262,643 32,673,282 34,167,269

23,416,150 23,982,890 24,557,020 25,132,310 25,694,960 26,221,580 26,685,810 27,059,180 27,308,240 27,378,460

9,515,084

9,515,084

*After providing cash flow.

Values on this page may include non-guaranteed life insurance values. If so, actual results are likely to vary, and this report is not valid unless accompanied by a life insurance basic illustration that details non-guaranteed and guaranteed elements.

Date: 01/01/2013

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