DigitalMasters June2021 Workbook

6/3/2021
IUL Masters
Academy
Training Day 1
© 2020 Stonewood Financial | For advisor use only. Not for use in a sales situation.
IUL Masters Training

Differentiate Your Practice
Focus on Taxes
Grow Your Practice

New Clients, Increased Wallet Share
Deliver Complete Advice

Taxes, Income & Risk
© 2021
© 2020 Stonewood
Stonewood Financial
Financial | For
| For advisor
advisor useuse only.
only. NotNot
for for
useuse
in ainsales
a sales situation.
situation.
Meet Your Trainers

Martin Ruby, FSA
Chief Executive Officer
© 2021
© 2020 Stonewood
Stonewood Financial
Financial | For
| For advisor
only. NotNot
for for
useuse
in ainsales
a sales situation.
situation.
1
6/3/2021
Meet Your Trainers

Becky Swansburg
Chief Marketing Officer
© 2021
© 2020 Stonewood
Stonewood Financial
Financial | For
| For advisor
only. NotNot
for for
useuse
in ainsales
a sales situation.
situation.
Meet Your Trainers

Neil Wilding
Chief Development Officer
© 2021
© 2020 Stonewood
Stonewood Financial
Financial | For
| For advisor
only. NotNot
for for
useuse
in ainsales
a sales situation.
situation.
Complete Programs
to Grow Your Practice
© 2021 Stonewood Financial. For Financial Professional Use Only.
2
6/3/2021
Training
+ Coaching
Prospecting
+ Marketing
Software
+ Reports
© 2021 Stonewood Financial. For Financial Professional Use Only.
Why
IUL
Now?
MAXIMIZE MINIMIZE
Areas Areas
We Can We Can Not
Control Control
Outcome Outcome
3
6/3/2021
Diversification
Market
AUM IUL
Income
Taxes
Annuity
10
The Big 5 of IUL

Legacy for Heirs
Power of Indexing
Tax-Free Retirement Funds

Access to Funds with No
Market-Value Adjustment
Additional Funds for the
Medical Costs of Aging
11
The Big 5 of IUL
12
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6/3/2021
KEY USES OF IUL
Active Savers Baby Boomers Older Clients
13
The IUL
Sales
Story
14
WHAT ARE WE SOLVING?
PAIN GAIN
15
5
6/3/2021
WHAT ARE WE SOLVING?
Wrong
Incomplete
16
3 PAINS CLIENTS FACE
How much How much What can I do

will I have? can I keep? with it?
Growing Managing Balancing

Wealth Taxes Needs
© 2020 Stonewood Financial | For advisor use only. Not for use in a sales situation. This presentation is not intended to provide tax, legal or investment advice.
17


Wealth Taxes Needs
18
6
6/3/2021
Total Return of the S&P 500®
$380,000 18.40%
$360,000
$340,000
6.61%
$320,000 average 31.46%
$300,000 annual return

$280,000
$260,000 21.8…
$240,000 -4.38%
$220,000
11.96%
$200,000
$180,000 1.38%
13.69%
$160,000 32.39%
$140,000
$120,000 16.00%
15.79% 5.49%
$100,000 2.11%
15.06%
$80,000 -9.10% 10.88%4.91% 26.46%
-11.89% 28.68%
$60,000 -37.00%
-22.10%
$40,000
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20
Data used to create this chart was obtained from: Yahoo Finance GSPC Historical Prices, accessed 01/20/21.
Please note, it is not possible to invest directly into the S&P 500® Index; this measure is provided solely as a gauge of overall market
performance. Standard & Poor’s: “Standard & Poor’s®,” “S&P®,” and “S&P 500®” are registered trademarks of Standard & Poor’s Financial
Services LLC (“S&P”). The historical performance of the S&P 500 is not intended as an indication of its future performance and is not guaranteed.
This chart is not intended to provide investment, tax or legal advice. Be sure to consult a qualified professional about your individual situation.
This chart does not take into account investment fees, so actual results may be different than depicted above.
19
Total Return of the S&P 500®
$360,000
$340,000
$320,000
6.06%
31.46%
average
$300,000
$280,000
annual return
$260,000 21.83%
$240,000 -4.38%
-26.15%
$220,000 11.96%
$200,000 1.38%
13.69%
$180,000
32.39%
$160,000
$140,000
$120,000 5.49%
16.00% 4.42%
15.79% 15.06% 2.11%
$100,000 average
$80,000 -9.10% 10.88%4.91% 26.46% annual return
-11.89% 28.68% -37.00%
$60,000 -22.10% (as of March 16, 2020)
$40,000
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20
Please note, it is not possible to invest directly into the S&P 500® Index; this measure is provided solely as a gauge of overall market
performance. Standard & Poor’s: “Standard & Poor’s®,” “S&P®,” and “S&P 500®” are registered trademarks of Standard & Poor’s Financial
Services LLC (“S&P”). The historical performance of the S&P 500 is not intended as an indication of its future performance and is not guaranteed.
This chart is not intended to provide investment, tax or legal advice. Be sure to consult a qualified professional about your individual situation.
This chart does not take into account investment fees, so actual results may be different than depicted above.
20
Chasing Security
12
U.S. 10-Year Treasury Rate
Source: U.S. Treasury – Treasury Yield Rates
10
0
1985 1990 1995 2000 2005 2010 2015 2017 2019 2020
Data used to create this chart was obtained from: www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.asp, accessed
01/20/21. This information is not intended to provide any tax, legal or investment advice or provide the basis for any financial decisions.
21
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Chasing Security
Savings
Account1 0.05%
Money
Market 0.12%
Account1
1-Year CD1 0.17%
5-Year CD1 0.34%
1Rates taken from FDIC Weekly National Rates and Rate Caps https://www.fdic.gov/regulations/resources/rates - accessed 01/20/21. General statements on interest rates are referencing the
10-year treasury rate (rate movement can be tracked through the U.S. Treasury at https://www.treasury.gov/resource-center/data-chart-center/interest-
rates/Pages/TextView.aspx?data=yield).
22
“Saver’s Dilemma”
Higher Risk Lower Risk
More Potential Less Potential

for Growth for Growth
This information is not intended to provide tax, legal or investment advice. Be sure to speak with a qualified professional in
these areas before making any decisions about your personal situation.
23
“Saver’s Dilemma”
Mitigate through
Allocation
Mitigate through
Product Design
This information is not intended to provide tax, legal or investment advice. Be sure to speak with a qualified professional in
these areas before making any decisions about your personal situation.
24
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The Power of Indexing

$400,000 18.40%
$380,000
$360,000
6.61% 11.00%
$340,000
average
11.00%
annual return
$320,000 31.46%
$300,000 11.00% 0.00%
$280,000 9.54%
21.83%
$260,000 11.00%0.00%
$240,000 -4.38%
$220,000
11.00%
11.00%
11.96% 6.31%
$200,000 13.69%1.38% average
11.00% 0.00%
$180,000 32.39% annual return
11.00%
$160,000
11.00% 3.53%
$140,000 16.00%
8.99%3.00% 0.00%
$120,000 11.00% 15.79% 5.49% 15.06% 2.11%
0.00% 0.00% 0.00%
$100,000
4.91%
$80,000 -9.10% 10.88% 26.46%
-11.89% 28.68%
$60,000 -37.00%
-22.10%
$40,000
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20
Annual Change in the S&P 500® w/Growth Cap (11.0%) and Growth Floor (0%) Annual Total Return of the S&P 500®
Please note, it is not possible to invest directly into the S&P 500® Index; this measure is provided solely as a gauge of overall market performance. Standard & Poor’s:
“Standard & Poor’s®,” “S&P®,” and “S&P 500®” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”). The historical performance of the S&P 500 is
not intended as an indication of its future performance and is not guaranteed. This chart is not intended to provide investment, tax or legal advice. Be sure to consult a
qualified professional about your individual situation. This chart does not take into account investment fees, so actual results may be different than depicted above.
© 2021 Stonewood Financial. For financial professional use only. Not for use in a sales situation. This presentation is not intended to provide tax, legal or investment advice.
25


Wealth Taxes Needs
26
TAXES
This information is not intended to provide tax, legal or investment advice. Be sure to speak with a qualified professional in these areas before
making any decisions about your personal situation. For advisor use only. Not for use in a sales situation.
27
9
6/3/2021
MICRO MACRO
Minimize Minimize
taxes taxes
this year over lifetime
28
LOWER SAM E HIGHER
This is a hypothetical example provided for illustrative purposes only. It does not represent a real life scenario, and should not be construed as advice designed to meet the
particular needs of an individual’s situation. This presentation is not intended to offer tax advice.
29
HOW CAN TAXES CHANGE?
SITUATIONAL
An individual experiences a change
in income, marital status, etc.
LEGISLATIVE
The government changes
tax policy or rules
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LOWER SAM E HIGHER
31
Tax-Deferred Saving
Working Years = Higher Bracket

Defer Taxes
Retirement Years = Lower Bracket

Pay Taxes
© 2020 Stonewood Financial | For advisor use only. Not for use in a sales situation. This presentation is not intended to offer tax, investment or legal advice.
32
Tax-Deferred Saving
Greatest Baby Boomers

Generation & Beyond
33
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The Great American

Savings Myth
34
LOWER SAM E HIGHER
35
Macro Analysis
The “Cost”
of Tax Deferral
36
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JIM
SAMPLE
60
• 25% effective tax rate

• $1.5 million IRA
particular needs of an individual’s situation. © 2020 Stonewood Financial | For advisor use only. Not for use in a sales situation.
37
JIM’S IRA | $1,500,000

JIM’SCOST
COSTOF
OF Hypothetical Example
TAX
TAXDEFERRAL
DEFERRAL
• 25% tax liability
• IRA account growth at 5%
• Money from RMDs not used for income (all) reallocated to
other financial vehicles earning an equivalent after-tax rate
of 3.75%
Receives RMDs to age 90 Per IRS rules
$500,000 of his$539,553
IRA
Total taxes paid on RMDs at
withdrawal
Taxes paid on growth of
Grows at
reallocated assets 5%
Taxes paid by beneficiaries on
annually
$230,615
remaining IRA value at death (age $358,590

25%
90)
Total Tax Liability
TOTAL TAXES PAID
(hypothetical example)
$1,128,758
38
JIM’S COST OF IRA | $500,000

Hypothetical Example
TAX DEFERRAL
of 3.75%

withdrawal $179,851
reallocated assets $76,872
remaining IRA value at death $119,530
(age 90)
TOTAL TAXES PAID $376,253
39
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CONVERT
TO ROTH?
40
Hypothetical Example • Money from RMDs reallocated to other

• $500,000 IRA financial vehicles earning an equivalent after-
• 25% tax liability tax rate of 3.75%
Keep IRA Convert to Roth
Total taxes paid

Taxes paid on
on RMDs at time $179,851 conversion $125,000
of withdrawals
Taxes paid on
Taxes paid on
reinvested RMDs $76,872 Roth account $0
growth
Taxes paid on
Taxes paid on
remaining Roth
remaining account $119,530 account value at $0
value at death
death
TOTAL
TAXES PAID
$376,253 $125,000
41
42
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HOW CAN TAXES CHANGE?
SITUATIONAL
An individual experiences a change
in income, marital status, etc.
LEGISLATIVE
The government changes
tax policy or rules
43
LOWER SAM E HIGHER
44
More than
$4 Trillion
in New Government Spending1
1“How is the federal government funding relief efforts for COVID-19?”, DataLab, USAspending.com, Accessed 02/20/21. Available online at https://datalab.usaspending.gov/federal-covid-
funding
This information is not intended to provide any tax, legal or investment advice or provide the basis for any financial decision. Be sure to speak with a qualified professional in these areas before
45
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6/3/2021
Federal debt of
$22.5 Trillion
is now larger than
the U.S. economy1
1”Budget Projections for FY 2021,” Congressional Budget Office, February 11, 2021. Available online: https://www.cbo.gov/topics/budget
This information is not intended to provide any tax, legal or investment advice or provide the basis for any financial decision. Be sure to speak with a qualified professional in these
areas before making any decisions about your personal situation. For advisor use only. Not for use in a sales situation.
46
“Biden’s plan would

raise tax revenue by
$3.3 Trillion
over the next decade.”1
1“Pandemic Spending Drives The Federal Budget Deficit to a Record,” National Public Radio, 10/16/20. Available online: https://www.npr.org/sections/coronavirus-live-
updates/2020/10/16/924582156/-3-1-trillion-pandemic-spending-drives-the-federal-budget-deficit-to-a-record
47
“Nobody making under
$400,000
will have their taxes raised,
period.”1
1Interview,“Squak Box,” CNBC, May 22, 2020, available online: https://grabien.com/getmedia.php?id=924585&key=abc063773066b1510402dc54a4a6a700

48
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3 Ways Future Taxes

Could be Higher
49
Brackets
50
Deductions
51
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New Taxes
52
“Legislative
Risk”
53
How Much
Could Taxes
Rise?
54
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RISING TAXES?
Source: Tax Policy Center from IRS Data

https://www.taxpolicycenter.org/briefing-book/how-do-federal-income-tax-rates-work
© 2021 Stonewood Financial. For advisor use only. Not for use with clients.
55
RISING TAXES?
Middle Quintile Income
Middle
Quintile
© 2021 Stonewood Financial. For advisor use only. This information is not intended to provide tax, legal or investment advice.
56
RISING TAXES?
Middle Quintile Income
1998 2018
Tax Bracket1 28% 22%
(single filing)
1TaxPolicy Center https://www.taxpolicycenter.org/statistics/household-income-quintiles, accessed 09/01/20

Source: U.S. Census Bureau Historical Income Tables
57
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MIDDLE QUINTILE
Tax Bracket Rates in 1998 were nearly
30% HIGHER
than in 20181
1Congressional
Budget Office via Historical Average Federal Rate Rates for All Households, Tax Policy Center, July 29, 2019, Accessed 09/01/20
58
JIM
SAMPLE
• $500,000 of his IRA
• Grow at 5% a year
• Tax Liability:
25% and 32.5%
particular needs of an individual’s situation. © 2020 Stonewood Financial | For advisor use only. Not for use in a sales situation.
59
IRA | $500,000
LEVEL TAXES Hypothetical Example
of 3.75%

withdrawal $179,851
(age 90)
60
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IRA | $500,000
RISING TAXES Hypothetical Example
• 25% & 32.5% tax liability
of 3.75%

withdrawal $233,806
(age 90)
61
Hypothetical Example • Money from RMDs reallocated to other

• $500,000 IRA financial vehicles earning an equivalent after-
• 25% & 32.5% tax liability tax rate of 3.75%
Total taxes paid

Taxes paid on
on RMDs at time $233,806 conversion $125,000
of withdrawals
Taxes paid on
Taxes paid on
reinvested RMDs $87,899 Roth account $0
growth
Taxes paid on
Taxes paid on
remaining Roth
remaining account $155,389 account value at $0
value at death
death
TOTAL
TAXES PAID
$477,094 $125,000
62
Total Potential Taxes Paid

over time currently
$376,000 $125,000
Please remember that converting
an employer plan account to a $477,000
Roth IRA or life insurance policy
is a taxable event. Be sure to
consult with a qualified tax
???
advisor before making any
decisions regarding your IRA.
This hypothetical example does

not consider every product or
feature of tax-deferred accounts
and is for illustrative purposes
only. It should not be deemed a
representation of past or future
results, and is no guarantee of
return or future performance.
Your tax bracket may be lower or
higher in retirement, unlike this
hypothetical example. Every
effort has been made to ensure
the accuracy of these numbers.
63
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ROTH OR
IUL?
64


Wealth Taxes Needs
65
TITLE 26
U.S. TAX CODE
66
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TITLE 26
SECTION 401(k)
67
TITLE 26
SECTION 7702
68


Wealth Taxes Needs
69
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HOW CLIENTS USE THEIR SAVINGS
Income
Medical
Unplanned
Legacy
70
Living
Benefits
Account Value
Death
Benefit
IUL
© 2020 For advisor use only. Account value accessed through policy loans. Living benefits and LTC riders are not available on all index universal life products and may not be available in all states.
71
Death Benefit creates a

“Self-Completing
Plan”
IUL
72
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Sara Sample
Husband and two children
Death Benefit
73


Wealth Taxes Needs
74
Q&A
75
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IUL Masters
Academy
Training Day 2
76
The IUL
Sales
Process
77
THE NEW HOLISTIC APPROACH
IDENTIFY Risk
QUANTIFY Risk
MITIGATE Risk
78
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EVOLUTION OF RISK MANAGEMENT
Holistic Financial Planning
79
EVOLUTION OF RISK MANAGEMENT
Asset
MARKET Risk
Allocation
Guaranteed
INCOME Risk
Income
TAX Risk ???
80
60-Year Old | $1M IRA | “4% Rule” to Age 100
Equities After-Tax
Tax Rate
Growth Rate Annual Income
8% 25% $40,000
6% 25% $34,000
8% 32.5% $35,000
6% 32.5% $30,000
Around 25% less income

This is a hypothetical example provided for illustrative purposes only. It does not represent a real life scenario, and should not be construed as advice designed to meet
the particular needs of an individual’s situation. This presentation is not intended to provide tax, investment or legal advice.
© 2021 Stonewood Financial | For Financial Professional use only.
81
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THE NEW HOLISTIC APPROACH
80 / 20 60 / 15 / 25
Old New
Modern Holistic
Portfolio
Theory
82
KEY USES OF IUL
Active Savers Baby Boomers Older Clients
83
KEY USES OF IUL
Baby Boomers
84
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Funds to Evaluate
$1.5M IRA
Keep Convert
IRA to IUL
© 2021 Stonewood Financial | For financial professional use only. Not for use in a sales situation.
85
Compliant
Conversions
86
Fiduciary
When is the
optimal
After Taxes
time to pay
After Fees
More $ in
taxes?
IRA or IUL?
87
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Fiduciary
After Taxes
After Fees
More $ in
IRA or IUL?
88
COMPLIANT PLANS
Qualify Client & Funds
89
COMPLIANT PLANS
$500k
$1.5 million
90
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COMPLIANT PLANS
Compare Apples to Apples
Handle Taxes Correctly
91
COMPLIANT PLANS
Convert
$500,000 Withdraw Pay Taxes
$75,000
$100,000 IUL
over 5 Each Year (25%)
Premium
years
92
COMPLIANT PLANS
Compare Apples to Apples
Handle Taxes Correctly
Set DB Responsibly
93
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COMPLIANT PLANS
94
Creating a
New Holistic
Strategy
95
96
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Client | Age 60
$1.5 Million
IRA
97
Client | Age 60
$500,000
Guaranteed
(Annuity)
$1,000,000
Market
(AUM)
Market Income X Taxes

98
100
$500,000
99
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Funds to Evaluate
$1.5M IRA
Keep Convert
IRA to IUL
100
Tax Diversification
$500,000 $500,000
Tax Free Guaranteed
(IUL) (Annuity)
$500,000
Market
(AUM)
101
100 65
35
$500,000
102
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Tax Assumptions
Current Assumed Tax Rate 25 %
Effective Tax Rate

Total Tax Rate
Local
State
Federal
103
Tax Assumptions
Assumed Tax Rate Year 6+ %
Assumed Tax Rate at Death %
104
THE MIDDLE QUINTILE
MIDDLE QUINTILE
Tax Bracket Rates in 1998 were nearly
30% HIGHER
than in 20181
Assumes Single Filing

1Tax Policy Center https://www.taxpolicycenter.org/statistics/household-income-quintiles, accessed 09/01/20 Source: U.S. Census Bureau Historical Income Tables
105
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Tax Assumptions
Assumed Tax Rate Year 6+ 32.5 %
Assumed Tax Rate at Death 35 %
106
Growth Assumptions
Allocation
50% 50%
Fixed Income Stocks
Stock Growth Rate %
Fixed Income
Growth Rate %
Annual Pre-Tax
Earnings Rate %
107
EQUITIES | Projected
Blackrock: 6.1%
J.P. Morgan: 5.6%
Morningstar: 1.7%
Vanguard: 3.5% - 5.5%
“Experts Forecast Long-Term Stock and Bond Returns,” Morningstar, January 16, 2020. Available online:
https://www.morningstar.com/articles/962169/experts-forecast-long-term-stock-and-bond-returns-2020-edition
© 2021 Stonewood Financial. For Advisor Use Only. Not for Use with Clients.
108
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FIXED INCOME | Projected
Blackrock: 1.7%
J.P. Morgan: 3.3%
Morningstar: 2.1%
Vanguard: 2.0% - 3.0 %
“Experts Forecast Long-Term Stock and Bond Returns,” Morningstar, January 16, 2020. Available online:
https://www.morningstar.com/articles/962169/experts-forecast-long-term-stock-and-bond-returns-2020-edition
© 2021 Stonewood Financial. For Advisor Use Only. Not for Use with Clients.
109
Growth Assumptions
Allocation
50% 50%
Fixed Income Stocks
Stock Growth Rate 6 %
Fixed Income
Growth Rate 2.5 %
Annual Pre-Tax
Earnings Rate 4.25 %
110
111
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100 65
35
$500,000
419,000 125,000
112
GOAL OF FUNDS
INCOME LEGACY
113
Potential Income
Qualified Account
IRA
Assumed growth rate: 4.25%
Annual Income: $22,467
Effective tax rate: 25% | 32.5% | 35% Total Benefit: $651,540
Current Account Value $500,000
Total Account Value Age 70 $671,958
Potential Annual Income
(through 100) $22,467
Total after-tax income through age 100

(including after-tax value of remaining account balance, if any)
$651,540
Age 70 YEARS INCOME DISTRIBUTED Age 100
114
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Potential Income
Roth Account
IRA
Total Account Value Age 70 $503,969 ROTH
Potential Annual Income Annual Income: $25,213
(through 100) $25,213
Total Benefit: $731,172
$731,172
115
Potential Income
IUL
IRA
Total Account Value Age 70 $434,798 ROTH
Potential Annual Income Annual Income: $25,213
(through 100) $34,729
$1,230,365 IUL
Total Benefit: $1,230,365
116
100 65
35
$500,000
419,000 125,000
22,400 34,700
375,000 1,195,600
117
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New Holistic Results

Diversification
Market
$500,000 $500,000
Income
Tax Free Guaranteed
(IUL) (Annuity) Taxes
$500,000 Bonus Benefits

Market Lower volatility
(AUM)
Less sequence
of returns risk
118
The
Mechanics
of IUL
119
HOW IUL WORKS
Premiums in
Interest credited
Mortality/expense
fees charged
Policy loans used
Net balance Cash Value of
carries over
an IUL Policy
Policy loans and withdrawals will reduce the available cash value and death benefit and may cause the policy to lapse, or affect guarantees against lapse. Additional premium payments may be
required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. Tax laws are subject to change and
clients should encouraged to consult a tax professional.
120
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Best Practices
for Case Design
121
Guiding Principle:
Solve policy features based on:
• Desired premium amount
• Need of the client
(income vs. legacy)
This is a hypothetical example provided for illustrative purposes only. This presentation is not intended to offer tax, legal or investment advice.
122
CASE DESIGN
Age of Client
Total Premium
Premium Pattern
Level to Retirement | 5-Pay
Source of Premium
Income | Existing Assets
123
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Product
Design
124
PRODUCT CONSIDERATIONS
Age of Insured(s)
Single Life | Second-to-Die | Adult Child
Death Benefit
the particular needs of an individual’s situation. © 2021 Stonewood Financial | For advisor use only. Not for use in a sales situation.
125
Increasing Level “Decreasing” Specialty
Policy loans and withdrawals will reduce the available cash value and death benefit and may cause the policy to lapse, or affect guarantees against lapse. Additional premium
payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income
tax. Tax laws are subject to change and clients should encouraged to consult a tax professional.
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Age of Insured(s)
Single Life | Second-to-Die | Adult Child
Death Benefit
Increasing | Level | Decreasing | Specialty
Indices
Bonuses
127
BONUS DEVELOPMENTS
100%-200%
15%-50%
CAP Up to 15%
IUL
PRODUCT
FLOOR 0%
0.5% - 2%
5% - 7.5%
Fee
Fee
© 2020 Stonewood Financial | This is a hypothetical example provided for illustrative purposes only. For advisor use only. Not for use in a sales situation.
128
IUL
Illustrations
129
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IUL Illustrations
AG-49A
Limits Illustrating
• Projected credited rate
• Indexed-based bonuses
• Spread on participating loans
Does not impact how bonuses

or loans can be credited
130
IUL Illustrations
Lowering the death benefit in year 8+
In the future, client can evaluate if income

or legacy/living benefits are most pressing
Use IUL regulation as an advantage:

IUL illustrations are now more conservative.
131
MEC vs. Non-MEC

Guideline Premium Test (GPT) vs.
Cash Value Accumulation Test (CVAT)
Tests establish minimum death benefit
Recent Congressional action

lowers minimum death benefit
132
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Policy
Loans
133
LOAN CONSIDERATIONS
Powerful Value:
Accessing funds
with no market-value
adjustment
required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. Tax laws are subject to change
and clients should encouraged to consult a tax professional.
This is a hypothetical example provided for illustrative purposes only. It does not represent a real life scenario, and should not be construed as advice designed to meet the particular needs
of an individual’s situation. © 2020 Stonewood Financial | For advisor use only. Not for use in a sales situation.
134
LOAN CONSIDERATIONS
Non-Participating Participating
or Fixed or Variable
Cash value representing Cash value representing
loan is credited with the loan continues earning
same interest rate the loan index
is being charged
Loan charged an interest
rate based on market,
sometimes subject to cap
required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. Tax laws are subject to change
and clients should encouraged to consult a tax professional.
This is a hypothetical example provided for illustrative purposes only. It does not represent a real life scenario, and should not be construed as advice designed to meet the particular needs
of an individual’s situation. © 2020 Stonewood Financial | For advisor use only. Not for use in a sales situation.
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$500,000 Cash Value | $50,000 Loan

S&P 500® Index Up 10%
Non-Participating / Fixed | 5% fixed loan rate
$500,000
$50,000
Cash Loan
Value
$450,000
$495,000 CV
earning interest
$450,000 $50,000 $50,000

10% = + $45,000 5% = + $2,500 5% = + $2,500
$495,000 $52,500 $52,500
Cash Value grows by $45,000

Example assumes 100% allocation to S&P 500® annual point-to-point index, 5% fixed loan rate, 5% variable loan rate, Index with 12% cap and 0% floor with 100% participation rate. Example is
hypothetical. For advisor use only. Not for use in a sales situation. This presentation is not intended to offer tax, legal or investment advice. © 2020 Stonewood Financial
136
$500,000 Cash Value | $50,000 Loan

Participating / Variable | 5% loan rate
$500,000
$50,000
Cash Loan
Value
$450,000
$495,000 CV
earning interest
$500,000 $50,000
10% = + $50,000 less 5% = + $2,500
$550,000 $52,500
137
$500,000 Cash Value | $50,000 Loan

Cash Cash
Value Growth
$500,000
$50,000
Loan
Value
Non-Participating: $45,000
$450,000
$495,000 CV
earning interest
Participating:
$500,000
10% = + $50,000
$47,500
$50,000
less 5% = + $2,500
$550,000 $52,500
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$500,000 Cash Value | $50,000 Loan

S&P 500® Index DOWN 10%
Non-Participating / Fixed | 5% fixed loan rate
$500,000
$50,000
Cash Loan
Value
$450,000
$495,000 CV
earning interest
$450,000 $50,000 $50,000

0% = + $0 5% = + $2,500 5% = + $2,500
$450,000 $52,500 $52,500
Cash Value stays the SAME

139
$500,000 Cash Value | $50,000 Loan

$500,000
$50,000
Cash Loan
Value
$450,000
$495,000 CV
earning interest
$500,000 $50,000
0% = + $0 less 5% = + $2,500
$500,000 $52,500
Cash Value DECREASES $2,500
140
$500,000 Cash Value | $50,000 Loan

Cash
$500,000Value Growth
Cash
$50,000
Loan
Value
Non-Participating: $0
$450,000
$495,000 CV
earning interest
Participating:
$500,000
0% = + $0
-$2,500
$50,000
less 5% = + $2,500
$500,000 $52,500
Cash Value DECREASES $2,500
141
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LOAN CONSIDERATIONS
Maximum Loan Rates
Changing Loan Types
Over-Loan
Protection Riders
the particular needs of an individual’s situation. This presentation is not intended to offer tax, legal or investment advice.
142
SUPPLEMENTAL INCOME
CONSIDERATIONS
Set realistic expectations

Honor minimum
accumulation time
Consider place on
risk spectrum
143
Living
Benefits
144
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ACCELERATED DEATH BENEFIT
Accelerate a portion of the death benefit when

medical requirements are met.
Death Benefit
Cash
Value
Actual LTC rider benefit amounts will vary according to the rules and restrictions of the specific life insurance product selected and will reduce the ultimate death benefit and cash value.
These benefits are NOT a replacement for long-term care insurance and are subject to eligibility requirements. Accelerated benefits may require an additional fee; riders and/or insurance
products may not be available in all states. This presentation is not intended to offer tax, legal or investment advice.
145
Target Premium
146
Target Premium
How the insurance company
calculates your commission
147
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TARGET PREMIUM
TP: $40,655
148
Q&A
149
IUL Masters
Academy
Training Day 3
150
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IUL for
Active
Savers
151
KEY USES OF IUL
Active Savers
152
Client | Age 45
Saving $13,333 annually in a 401(k)
25% Tax Liability
Keep Contributing to 401(k) Premiums into IUL
$13,333 $10,000
$13,333 $10,000
$13,333 $10,000
$13,333 $10,000
153
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13,333 10,000
20
154
Tax Assumptions
Effective Tax Rate

Total Tax Rate
Local
State
Federal
155
401(k) | 45-Year Old | 25% Tax Liability
Taxes
Deferred
While Saving
$66,665
Taxes
Paid While
Spending
$196,703
Assumes income from age 65 to age 100. This is a hypothetical example and is not intended to represent actual experience.
© 2021 Stonewood Financial. For advisor use only. This presentation is not intended to provide tax, legal or investment advice.
156
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ROTH | 45-Year Old | 25% Tax Liability
Taxes Paid
While Saving $66,665
Taxes
Paid While $0
Spending
Assumes income from age 65 to age 100. This is a hypothetical example and is not intended to represent actual experience.
© 2021 Stonewood Financial. For advisor use only. This presentation is not intended to provide tax, legal or investment advice.
157
13,333 10,000
20
196,000 66,000
158
IUL | Credited Rate: 6% | Initial Death Benefit: $621,726
IUL | $10,000 Annual Premium

Total Cash Value Age 65 $277,655
IUL
Potential Annual Income Total Benefit: $966,000
(Ages 65 – 100) $23,278

$966,590
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Growth Assumptions
WHILE SAVING IN RETIREMENT
Equities: 60% Equities: 50%

Allocation Fixed Income: 50%
Fixed Income: 40%
Stock
8.0 % Growth Rate 8.0 %
Fixed Income
Annual Pre-Tax
5.8 % Earnings Rate 5.25 %
160
401(k) | Growth Rate: 5.8% & 5.25% | Tax Rate: 25%
Qualified Account | $13,333 annual contribution

Total Account Value Age 65 $452,384
IUL
Potential Annual Income Total Benefit: $966,000
(Ages 65 – 100) $16,085
401(k)
(including after-tax value of remaining account balance, if any) Total Benefit: $590,000
$590,109
161
13,333 10,000
20
196,000 66,000
16,000 23,000
590,000 966,000
minimal 621,726
162
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IUL for
Older
Clients
163
KEY USES OF IUL
Older Clients
164
Multi-Generational
Income Planning
165
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Clients Age 70+
Tax burden built in IRA
Income plan in place
Excess IRA funds not needed

for income, likely passing to
children
166
3 Generation Value
For your Client

Tax Savings
For your client’s Children

Retirement Income
For your client’s Grandchildren

Legacy
167
Strategy Structure
Client’s
IRA
Withdraw funds
and pay taxes
Gift funds to child+ Gift funds to ILIT+
Purchase IUL Policy:

Purchase IUL Policy:
Child - Insured
Child - Insured & Owner
Trust - Owner
Grandchild - Beneficiary
Grandchild - Beneficiary
+Assumption that gifted funds fall under the current Unified Gift and Estate Tax Credit, which is currently $11.18 million for single filers and $22.36 million for couples over the
individual or couple’s lifetime. (www.schwab.com/resource-center/insights/content/the-estate-tax-and-lifetime-gifting) Please consult with a CPA for information about specific client
scenarios. This example is not intended to provide tax, investment or legal advice. It does not represent any specific product. This is a hypothetical example provided for illustrative
purposes only. It does not represent a real life scenario, and should not be construed as advice designed to meet the particular needs of an individual’s situation.
168
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Julia
75
50-year old son
3 grandchildren
• $500,000 excess IRA
• 25% current effective tax rate
• 30% future effective tax rate
169
170
Julia | Taxes Saved

Total taxes Taxes paid on
paid on RMDs conversion
at time of $121,462 $125,000
withdrawals
Taxes paid on Taxes paid on
reinvested $34,783 Roth account $0
RMDs growth
remaining remaining Roth
account value $103,687 account value $0
at death at death
TOTAL
TAXES PAID
$259,932 $125,000
• $500,000 IRA • IRA account growth at 5.25%
• 25% tax liability | Years 1-6 • Money from RMDs not used for income (all) reallocated to other
30% tax liability | Years 7-end financial vehicles earning an equivalent after-tax rate of 3.94%
171
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Julia | Taxes Saved

Total taxes Taxes paid on
paid on RMDs conversion
at time of $133,143 $125,000
withdrawals
reinvested $51,006 Roth account $0
RMDs growth
account value $118,390 account value $0
at death at death
TOTAL
TAXES PAID
$302,539 $125,000
• $500,000 IRA • IRA account growth at 5.25%
• 25% tax liability | Years 1-6 • Money from RMDs not used for income (all) reallocated to other
30% tax liability | Years 7-end financial vehicles earning an equivalent after-tax rate of 3.94%
172
135,000
173
Son | Income Generated

Initial Death Benefit Annual Premium Total Premium Paid
$1,601,562 $75,000 $375,000
Total Account Value Annual Tax-Free Average Annual Net

Age 65 Income Return
$593,919 $45,000 7.613%
• Non-Guaranteed Illustrated Interest Rate: 6. 0%
• Assumed age of death: 90
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Son | Income Generated
175
135,000
45,000
176
Son & Grandchildren | Income & Legacy

Total Distributions:
$1,789,081
($1,125,000 as policy loans
$664,081 as residual death benefit)
Total Premium Paid:

$375,000
• Assumes death benefit paid at age 90
177
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Son & Grandchildren | Income & Legacy
178
135,000
45,000 1,125,000
664,000
179
Your Client’s Legacy
180
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Prospecting
& Marketing
181
PROSPECTING & MARKETING
Position your practice
Frame the IUL story
Attract new leads + clients
182
TARGETS & OPPORTUNITIES
$500k
$1.5 million
Image: https://www.copper.com/blog/b2b-sales-funnel Results from the use of these concepts are no guarantee of your future success
183
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TARGETS & OPPORTUNITIES
Existing Clients
Increase Wallet Share | Deliver Value
Warm Leads
Capture Lost Business | Close New Clients
Prospect Lists
Drive Activity | Convert to Clients
© 2020 Stonewood Financial | For advisor use only. Not for use in a sales situation. This presentation is not intended to offer tax, legal or investment advice.
184
Stonewood Story
A unified message –
throughout the
sales process
185
Stonewood Story
Books & White Papers Client Analysis
Lead Generation Client Meetings Ongoing Value
186
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Positioning
Your Practice
187
188
POSITIONING TAX, INCOME & RISK
I specialize in saving my clients

hundreds of thousands of dollars in taxes
through the way we allocate assets
$500k
I use those tax savings to help my
clients generate significantly more
$1.5 million
income in retirement
I achieve these goals while reducing

the overall risk of their portfolios
189
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ALIGNING WITH STONEWOOD
I partner with an actuarial firm that has

developed proprietary analysis models
for taxes in retirement
$500k
These models help me evaluate the tax
burden you’re
$1.5carrying
million in your current
retirement approach – and provide
options for addressing those taxes to
increase your income in retirement
190
Message
Frames
191
Get out
of debt!
Debt to the IRS
192
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GET OUT
OF DEBT!
193
194
IRA Account Statement

Sample Securities Account Number: 000-000-000000
100 Investment Lane Statement Period: 01/01/2017 - 01/01/2018
Anywhere, AM 00000
(123) 456-7890
Sample Client Account Activity This Period

123 Street Address
City, State, 00000 Beginning account value $363,568
Deposits 7.19
Withdrawals -202.81
Dividends/Interest 5,638
Net change in portfolio 13,432.84
Ending Account Value $377,000

SAMPLE $282,000
Debt
to the $95,000
IRS
Assumes 25% tax liability. This is a hypothetical example. This Presentation is not intended to provide tax, investment or legal advice. Please
consult qualified professionals about your individual situation. © 2020 Stonewood Financial
195
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196
Your Silent
Partner
197
The IRS is your

business partner.
198
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Legislative
Risk
199
The success of your

retirement approach
is up for election.
200
Tax Lens
MICRO MACRO
Macro vs. Micro

Minimize
taxes
this year
Minimize
taxes
over lifetime
Tax Deferral Tax Free
201
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How do you think

about SAVING?
How do you think

about TAXES?
202
Mandatory
vs. Optional
203

Total taxes paid Taxes paid on
on RMDs at time conversion
of withdrawals $187,857 $125,000

reinvested RMDs Roth account
$75,802 $0
growth

account value at $119,983 account value at $0
death death
TOTAL
TAXES PAID $380,642 $125,000
- $125,000
$255,000
MANDATORY
OPTIONAL
204
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IUL as a
Cell Phone
205
IUL
206
Prospecting
Programs
207
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Prospecting Programs
Prospects Actively Prospects with Existing
Saving for Retirement Retirement Assets
208
BOOKS
209
BOOKS
PRINT
210
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BOOKS
PRINT
BENEFIT
• Perceived value
• Gifting culture
• Format comfort
POINT OF USE
• Seminars
• Mailings & Reviews
• In-person Meetings
211
BOOKS
DIGITAL
212
BOOKS
DIGITAL
BENEFIT
• Immediacy
• Scalable
• Modern Format
POINT OF USE
• Webinars
• Lead Capture
• Virtual Meetings
213
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BOOKS
CUSTOM
214
BOOKS
CUSTOM
BENEFIT
• Thought leadership
• Personalized touch
POINT OF USE
• Digital and/or Print
215
GROUP MARKETING
216
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GROUP MARKETING
Webinars + Seminars
Not an either/or decision
217
GROUP MARKETING
DIY Presentations
• Download complete slide deck
• Stonewood training on presentation
• You promote seminar/webinar
• Direct Mail &

Digital Marketing Partners
Advisors Platform
218
GROUP MARKETING
Presentation Modules
• Seminar sections
• Can be added to existing decks
• Adjust look and feel to match
219
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GROUP MARKETING
Turn-Key Webinars
• Recordings by Stonewood experts
• Custom landing page
• Proven webinar marketing
• Cold Prospects
• Warm Leads
220
GROUP MARKETING
Call to Action
Tax Report Book

221
MATERIALS
222
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MATERIALS
Library of client materials

• Enhance the IUL story
• Support the IUL sales process
• Do so compliantly
223
MATERIALS
Introduce the Strategy Explain the Value of IUL
Differentiate A Practice Customize Strategy

224
LOG ON
StonewoodFinancial.com
225
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Overcoming
Objections
226
227
Illustrated
Projections
228
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Illustrated Values
IUL projections are heavily regulated
Illustration regulation has made

IUL values conservative
If IUL earns less, other

approaches may as well
This is not a complete list of considerations for any insurance product. © 2021 Stonewood Financial | For advisor use only. Not for use in a sales situation.
229
“Stress Test”
Indexing
230
Worst
Decade
In S&P® 500 History
$180,000
$160,000 11.00% 4.74%
0.00% Average annual
3.53%
$140,000 11.00% return
8.99% 3.00%
$120,000 5.49%
11.00% 15.79%
0.00% 0.00% 0.00%
$100,000 26.46%
-9.10%
10.88%
4.91% -1.0%
$80,000 -11.89% 28.68% Average annual
-37.00% return
$60,000 -22.10%
$40,000
00 01 02 03 04 05 06 07 08 09
For financial professional use only. Not to be used with the general public or in a sales situation. Hypothetical data only used in this example, with a hypothetical indexing
strategy with a floor of 0% and a cap of 11.0%. Past performance is not a prediction of future performance. Performance is not guaranteed. © 2021 Stonewood Financial
231
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The Power of Indexing

$180,000 4.8%
11.50%
$160,000
3.53% 0.00%
11.50%
$140,000
3.00%
$120,000 11.50%
8.99%
15.79%
5.49% -1.0%
0.00% 0.00% 0.00%
$100,000
26.46%
-9.10% 4.91%
10.88%
$80,000
-11.89% 28.68%
-37.00%
$60,000 -22.10%
$40,000
00 01 02 03 04 05 06 07 08 09
Index with floor of 0% and cap of 11.5%
For financial professional use only. Not to be used with the general public or in a sales situation. Hypothetical data only used in this example, with a hypothetical indexing
strategy with a floor of 0% and a cap of 11.5%. Past performance is not a prediction of future performance. Performance is not guaranteed. © 2020 Stonewood Financial
232
IUL is
Expensive
233
THE COST OF SAVING
401(k) 1.42%
Managed
Account 1.50%
IUL $
1 “Here’swhat the average American typically pays in 401(k) fees,” CNBC, July 22, 2019
2 “What to know about financial advisor fees and costs,” U.S. News and World Report, June 2, 2020
234
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THE COST OF SAVING
Loads
+ Cost of Insurance
+ Additional Expenses
=$$$$$
235
THE COST OF SAVING
236
COST ANALYSIS OF IUL

Expense as a Percentage
of Average Cash Value
Assumed Death Benefit
paid at age 90
0.51%
SAM
This is a hypothetical example provided for illustrative purposes only. It does not represent a real life scenario.
This presentation is not intended to provide tax, investment or legal advice. SAMPLE
237
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COST ANALYSIS OF IUL

Expense as a Percentage
of Average Cash Value
Assumed Death Benefit
paid at age 90
1.30%
JIM
This is a hypothetical example provided for illustrative purposes only. It does not represent a real life scenario.
This presentation is not intended to provide tax, investment or legal advice. SAMPLE
238
THE COST OF SAVING
401(k) 1.42%
Managed
Account 1.50%
IUL 1.30%
1 “Here’s what the average American typically pays in 401(k) fees,” CNBC, July 22, 2019
2 “What to know about financial advisor fees and costs,” U.S. News and World Report, June 2, 2020
239
THE COST OF SAVING
401(k) 1.27%
Managed
Account 2.04%
0.65%
IUL
1 http://blogs.wsj.com/totalreturn/2015/02/20/401k-fees-what-is-reasonable/
2 http://www.advisoryhq.com/articles/financial-advisor-fees-wealth-managers-planners-and-fee-only-advisors/
240
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Conversion
Tax Drift
241
Long-Term
Tax Savings
Immediate
Tax Impact?
242
How Income Taxes are Calculated
“Progressive Taxation”
$0 $100,000
$0 to $19,399 $19,400 to $78,949 $78,950 to $100,000

10% 12% 22%
Brackets Assumes Married Filing Jointly

https://taxfoundation.org/2019-tax-brackets/
243
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Federal Tax Impact

Converting
$500,000 over 5 years
=
$100,000
additional annual income
244
Calculating Taxes from the Higher Bracket
$100,000
Annual Income + $100,000
Conversion Income = $200,000
Total Annual Income
$171,050 $28,950
Taxed up to 22% Taxed at 24%
2% X $28,950
$579 in additional taxes

from higher tax bracket
Hypothetical example for illustrative purposes only. This presentation is not intended to provide tax, investment or legal advice. Clients should consult
qualified professionals about their individual situations.
245
$100,000
Annual
Income
$100,000
Conversion
Income
246
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$150,000
Annual
Income
$100,000
Conversion
Income
247
$200,000
Annual
Income
$100,000
Conversion
Income
248
Changes to
Tax Law
249
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IUL & LEGISLATION

Congress has a vested interest in
incentivizing Americans to own life insurance
New laws would only be in effect for future

policies
Rules have changed in recent years for

Roth and Qualified Accounts
250
IUL vs.
Roth
251
The Big 5 of IUL vs. ROTH

Growth and Protection

Legacy for Heirs

This is not a complete list of features, benefits, requirement or limitations of any life insurance product.
252
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The Big 5 of IUL vs. ROTH

Growth and Protection

Legacy for Heirs

This is not a complete list of features, benefits, requirement or limitations of any life insurance product.
253
45-Year Old | IUL | Growth Rate: 6.0%
IUL
IUL
Total Cash Value Age 65 $277,655 Annual Income: $23,000
(Ages 65 – 100) $23,278

$966,590
This is a hypothetical example provided for illustrative purposes only. It does not represent a real life scenario,
and should not be construed as advice designed to meet the particular needs of an individual’s situation. This
presentation is not intended to provide tax, investment or legal advice. For Financial Professional use only.
254
45-Year Old | ROTH | Growth Rate: 5.8% & 5.25%
Roth
IUL
Total Account Value Age 65 $339,296 Annual Income: $23,000
(Ages 65 – 100) $16,085
Roth
Total after-tax income through age 100 Total Benefit: $590,000
$590,124
255
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45-Year Old | ROTH | Growth Rate: 6.0% & 6.0%
Roth
IUL
Total Account Value Age 65 $347,193 Annual Income: $23,000
(Ages 65 – 100) $19,028
Roth
$657,198
Roth (6%)
256
Growth Assumptions
WHILE SAVING IN RETIREMENT
Equities: 60% Equities: 50%

Allocation Fixed Income: 50%
Fixed Income: 40%
Stock
Fixed Income
Annual Pre-Tax
6.0 % Earnings Rate 6.0 %
257
45-Year Old | IUL | Super Preferred | Growth Rate: 6.0%
IUL
IUL
Total Cash Value Age 65 $302,450 Annual Income: $23,000
(Ages 65 – 100) $25,636
Roth
$1,064,196
Roth (6%)
IUL (Super Preferred)

Age 65 YEARS INCOME DISTRIBUTED Age 100 Annual Income: $25,000
Total Benefit: $1,060,000
258
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Strategies
In Action
259
60-Years Old
$2,500,000 in an IRA
Jane &
Robert
© 2020 Stonewood Financial | For advisor use only. Not for use in a sales situation. Hypothetical example only.
260
New Holistic Retirement Plan

Value to Jane & Robert
$500k Income shown begins age 70 & 75
FIA
Save $340,000 in lifetime taxes
Guaranteed $700k
Income
AUM Immunize 1/3 portfolio from IRS
$500k Income: $103k / year Tax-Free

FIA $1.5 million legacy Tax-Free
Accumulation
$600k Income: $62k / year guaranteed
IUL Supplemental Income / Income

before age 70
Liquidity
Market Exposure & Inflation

Protection
261
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New Holistic Retirement Plan

Diversification
$500k
FIA
Guaranteed
Income
$700k
AUM
Assets
Income
$500k
FIA
Accumulation
$600k
IUL Tax
262
Jane & Robert’s Advisor
Revenue to Advisor:
IUL
$59,000
FIA
$30,000 x2
AUM @ 1%
$7,000 / year
$126,000 + ongoing AUM
© 2020 Stonewood Financial | For advisor use only. Not for use in a sales situation. Hypothetical example only.
263
Tomorrow’s
Success
264
88
6/3/2021
265
Q&A
266
89

DigitalMasters June2021 Workbook

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6/3/2021

IUL Masters Training

Grow Your Practice

Deliver Complete Advice

Meet Your Trainers

Meet Your Trainers

Meet Your Trainers

The Big 5 of IUL

Tax-Free Retirement Funds

The Big 5 of IUL

KEY USES OF IUL

Active Savers Baby Boomers Older Clients

WHAT ARE WE SOLVING?

WHAT ARE WE SOLVING?

3 PAINS CLIENTS FACE

How much How much What can I do

Growing Managing Balancing

3 PAINS CLIENTS FACE

How much How much What can I do

Growing Managing Balancing

Total Return of the S&P 500®

$300,000 annual return

Total Return of the S&P 500®

1-Year CD1 0.17%

5-Year CD1 0.34%

Higher Risk Lower Risk

More Potential Less Potential

The Power of Indexing

3 PAINS CLIENTS FACE

How much How much What can I do

Growing Managing Balancing

LOWER SAM E HIGHER

HOW CAN TAXES CHANGE?

LOWER SAM E HIGHER

Working Years = Higher Bracket

Retirement Years = Lower Bracket

Greatest Baby Boomers

The Great American

LOWER SAM E HIGHER

• 25% effective tax rate

JIM’S IRA | $1,500,000

Receives RMDs to age 90 Per IRS rules

remaining IRA value at death (age $358,590

JIM’S COST OF IRA | $500,000

Receives RMDs to age 90 Per IRS rules

Hypothetical Example • Money from RMDs reallocated to other

Keep IRA Convert to Roth

Total taxes paid

HOW CAN TAXES CHANGE?

LOWER SAM E HIGHER

“Biden’s plan would

“Nobody making under

1Interview,“Squak Box,” CNBC, May 22, 2020, available online: https://grabien.com/getmedia.php?id=924585&key=abc063773066b1510402dc54a4a6a700

3 Ways Future Taxes

Source: Tax Policy Center from IRS Data

Middle Quintile Income

Middle Quintile Income

1TaxPolicy Center https://www.taxpolicycenter.org/statistics/household-income-quintiles, accessed 09/01/20

Receives RMDs to age 90 Per IRS rules