CASE STUDY: Sons Place Their Retirement Plans on Pause and Use the Stream Protection Plan to Future-Proof Their Father’s Golden Years
In this case study, we explore how two siblings discover that the Stream Protection Plan isn’t just an innovative strategy for their financial future. This retirement solution is giving back in a heartfelt commitment to family.
Case study summary:
- Two brothers pause their own retirement plans.
- Dad is 52, renting a home, with financial uncertainty for his future.
- The sons use the Stream Protection Plan to finance their father’s future.
- $75,000 every year for five years means Dad can retire with an annual income of $53,000 tax-free from age 70 to 120.
Retirement planning sparks a new idea
Two brothers began a conversation with one of Stream’s life insurance agents about planning for their retirement. By the end of the meeting, they had an unexpected but brilliant idea.
Rethinking traditional finance
Initially, they considered traditional financing. However, after learning about Stream’s premium financed life insurance plan, they realized it was the best option for their own retirement. It was also a smart and effective way to help their dad.
Challenges faced by their father
Their 52-year-old dad, without a home of his own, relied on rentals and had little ability to save and plan for a comfortable retirement. His future looked uncertain, given the minimal social security benefits and lack of affordable homes. Retirement should be a worry-free time filled with enjoyment. Having supported his sons through college, they went on to achieve successful careers in commercial real estate. With their mother having passed away, this was the perfect opportunity for the brothers to put family first and give back to their father.
Putting family first
Deciding first to prioritize their father’s needs, the brothers paused their own Stream Protection Plan and enlisted our team to develop a strategy through reverse engineering. Their father earned $70,000 annually, and they wanted him to maintain that same taxable net annual income of approximately $53,000 during his retirement years. We determined that to achieve this, the brothers needed to contribute $70,000 annually – $35,000 each – to the Stream Protection Plan policy.
The brothers said, “This is a no-brainer”
By investing $70,000 each year for five years, the Stream Protection Plan would generate enough wealth for their father to live off $53,000 tax-free annually from ages 70 and 120, should he be lucky enough to live to that ripe old age.
With their father’s future secured, the brothers turned to their own Stream Protection Plan to ensure their retirement would be as golden.
