What investors really enjoy is a real world case study. Here’s one using a couple for whom I just generated a Purposeful Plan.

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Transcript:   Let’s do a case study today and talk about people that actually exist, what they’re going to do and what is probably going to be the outcome for them, and how long of a period of time. We have Millie and Jim. Between them, they make about a hundred thousand dollar a year or maybe a little bit more. They have about twenty thousand dollars in the bank, and they have the ability to make payments of about a thousand dollar a month, depending on what they’re doing. That would be the max. The first thing I told them was that based on their ages, they’re thirty and they’re thirty-one years old, that David Shafer said that for five hundred dollars a month, they will get at age sixty and sixty-one a tax-free income of about a hundred to a hundred and ten thousand dollars a year until they’re ninety. Again, that’s tax-free. Now, they live in California, and to get a hundred thousand dollars a year after tax in California, and remember they’re going to be retired when they do this, so they won’t have deductions for kids. The IRS hasn’t given us deductions for grandkids yet so that’s off the table. They will have paid off their house. At least most people try to, right? They really don’t have any tax shelter or whatsoever. At least we have to look at it the way it is now and project that to be the case thirty years from now, which means that if they wanted to get that hundred thousand plus after tax, they would have to make somewhere between a hundred and thirty-five and a hundred and fifty-five thousand gross. Well, this will get them a hundred to a hundred and ten thousand dollars tax-free for the first thirty years of retirement. That won’t include any note investments they might make. It doesn’t include anything they’ve done in their IRA or 401(k), or maybe they have a small business later in life and they have a solo 401(k). We’ll talk about that at another time. The bottom line is what this will do is it will give them a base retirement income over and above anything else of around eighty five hundred to nine thousand dollars a month, all of which, again, by Internal Revenue Code definition, is tax-free. Now, what they can do over time is that they’re going to be like everybody else. They’re going to start a family. They’ve already got a house. They’ve only had it for less than three years. They’re making those payments. They can grow a family in there before they decide to move on. What they’re going to do is they’re going to save their money. Now, let’s fast-forward ten years. They’ve got two or three kids. They’re feeling a little cramped. They’re in a three-bedroom but it’s a small three-bedroom. They’ve got two baths but again it’s small, and they want to move to a little bit more square footage. Now, Jim’s making a lot more money than he was. Molly quit her job and she’s using her degree in childcare that she got in college to open up a home-based business of taking care of kids. Now, between them, remember, they’re forty and forty-one now, they’re doing around a hundred and thirty to a hundred and fifty thousand dollars a year. He’s been saving, saving, saving. They established, both of them, Roth IRAs back when they first me when they were thirty and thirty-one. They don’t have an employer-based 401(k) between them. They got rid of that. Do you know how I know they got rid of it? Because that’s the way Jim financed the down payment for their house a decade earlier. All right. For ten years,