Projected Retirement Income Using the Free Group


Funding Retirement Years: 30 years

Annual Funding Amount: $3600

Age to start receiving Retirement Income: 63

Retirement Income Amount: $25,306 tax free per year

(Based off of the historical indexing performance (7.9%) of the market, but illustrated at 7% to be conservative indexing provides potential double digit growth of the stock market, with zero risks of market losses)

Comparison to Projected 401k/IRA Savings


Funding Retirement Years: 30 years

Annual Funding Amount: $3600

Age to start receiving Retirement Income: 63

Retirement Income Amount: $13,602 before taxes

Assuming taxes remain at current rate (25%), and Illustrated at the 4% withdrawal rate, this would equate to $10,202 per year after taxes. (Taxes will probably trend higher in the future, and 4% withdrawal rate is proving to not be sufficient by many source)

Notable Differences:

(Disclaimer: These are estimated figures, they are not guaranteed. We are not tax professionals, but use reasonable and conservative figures in computing results.)

To produce the same results from a 401K, You would need to deposit $4800 per year for 30 years. At age 63 you would need to be able to withdraw $33,741 before taxes in order to produce $25,306 per year after taxes.

(If you were able to produce these numbers in a 401k, also based on a 7% return for a fair comparison, The 401k projects money running out at age 72! (with NO LOSSES IN THE STOCK MARKET).

  • Taxes Saved: $46,701
  • Total cash flow increase : $630,824 (measuring income to age 100)
  • Death benefit: $188,870 is available at age 100
  • Total Net Economic Analysis: $866,395 surplus with properly structured Non-qualified plan over qualified plans (401k, IRA, etc)

Projected Retirement Income Using the Free Group


Funding Retirement Years: 36 years

Annual Funding Amount: $4,800

Age to start receiving Retirement Income: 66

Retirement Income Amount: $72,110 tax free per year

(Based off of the historical indexing performance (7.9%) of the market, but illustrated at 7% to be conservative indexing provides potential double digit growth of the stock market, with zero risks of market losses)

Comparison to Projected 401k/IRA Savings


Funding Retirement Years: 36 years

Annual Funding Amount: $4,800

Age to start receiving Retirement Income: 66

Retirement Income Amount: $26,541before taxes

Assuming taxes remain at current rate (25%), and Illustrated at the 4% withdrawal rate, this would equate to $19,906 per year after taxes. (Taxes will probably trend higher in the future, and 4% withdrawal rate is proving to not be sufficient by many sources)

Notable Differences:

(Disclaimer: These are estimated figures, they are not guaranteed. We are not tax professionals, but use reasonable and conservative figures in computing results.)

To produce the same results from a 401K, You would need to deposit $6,400 per year for 35 years. At age 66 you would need to be able to withdraw $96,147 before taxes in order to produce $72,110 per year after taxes.

(If you were able to produce these numbers in a 401k, also based on a 7% return for a fair comparison, The 401k projects money running out at age 73! (with NO LOSSES IN THE STOCK MARKET).

  • Taxes Saved: $131,715
  • Total cash flow increase : $1,766,591 (measuring income to age 100)
  • Death benefit: $697,565 is available at age 100
  • Total Net Economic Analysis: $2,595,871 surplus with properly structured Non-qualified plan over qualified plans (401k, IRA, etc)