Pension-Max Strategy

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The general concept behind the pension-max strategy is to take the difference from the "Straight Life Option" amount and the "Survivor Option" amount you are planning on receiving. This difference is the monthly amount you have available to create your own "Protection Plan". Depending on your health, age, and spouses age the difference in amounts can be substantial.

 

Based on the example laid out on the previous page a pension-max strategy retiree would choose the Straight Life option and would receive $3000/Month for the life of the retiree. However, using the pension-max strategy the retiree would place $300/month into a guaranteed life policy. That would leave them with $2700/month income but notice the example below:

 

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Based on the hypothetical example shown above you will notice that with the pension-max strategy it can allow the retiree to realize a higher pension income while also providing greater protection for the surviving spouse. Besides the increase in pension amount, the pension-max strategy has many more benefits. Listed below are some of the other advantages to the Pension-Max Strategy:

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• Flexibility to name beneficiaries besides spouse

• Ability to continue the pension to future generations

• Control to discontinue the coverage if spouse were to pass away first

• If both the retiree and the spouse were to pass away - the pension-max strategy will give peace of mind that the family will receive the remaining funds income-tax free. In standard pension options the money would remain with the state.

• Easier access to the funds in case of emergency

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