The following examples demonstrate how both the needs of the client and the needs of the individual accountant or partnership firm can be met through financial planning and product consulting services with Rockbridge Financial.

Example 1:

A retired, 71 year-old male and his wife were funding a Second to Die Variable Life Insurance Policy. Their annual premiums were $90,000, with a death benefit of $5 million and a cash value of $520,000. A drop in interest rates caused the client to look at ways to reduce his cash expenses. Within the past several years, the cash value in the policy had been reduced from $700,000 to its current value. As a result, Rockbridge did a qualified transfer (1035) into another policy. Because of the client’s age and risks in the market, Rockbridge Financial recommended a Universal Life policy that guaranteed coverage to age 100. The client’s premium was reduced by 47.3 percent and the CPA/accounting firm received $30,917 in revenues.

Example 2:

Male (60) currently has a $300k Whole Life insurance policy. However, due to policy loans which the policyholder established, level of benefit is decreasing annually. Male would like to replace policy with a better product, but was concerned about current medical condition – early stages of diabetes. Alternative product was presented with higher quality insurance carrier that placed the CPA’s client in a standard health rating category. Death benefit was increased by 18.7% and policy loan was terminated. Revenues to CPA/firm was $6,200.

Example 3:

A 46 year-old man, who has a sub-chapter S company, wishes to retire at age 62 with $2,000,000 in his retirement account. The client is currently funding a Simplified Employment Program, but has suffered account losses due to aggressive asset allocation in recent years. Furthermore, his business is growing along with his taxable income. The solution is the 412i Defined Benefit Program. It was determined that he could initially contribute $119,000 annually to fund a guaranteed $2.6 million account while reducing his unneeded taxable income by $65,000. In addition, he received a $900,000 Key Man Life Insurance policy without any additional costs. The CPA/accounting firm received $25,744 in revenues. Furthermore, additional revenues of approximately $14,000 would be generated for the next 14 years due to the funding of future contributions.