Planning for our financial future used to be simple:

• Save for pre-retirement cash needs in taxable accounts.

• Contribute excess savings capacity into the 401(k).

Today, we have many alternatives with different structural features.

• After-tax contributions with tax-advantaged distributions.

• Pre-tax contributions with taxable distributions.

• After-tax contributions with taxable gains.

Lots of “sizzle” … difficult to assess the “steak”.

VVC’s “Structural” Snapshot eliminates the sizzle and focuses on the steak … the net “accessible” or “spendable” cash for you or your family

• The STAR Plan featuring ILI

• Roth

• 401(k)

• 409A Nonqualified Deferred Compensation Plan

• Taxable Account

• Annuity

Leading funds are accessible in all these structures.

The #1 planning decision today is which “structure” is the more efficient to manage those funds.

All caps and distribution requirements have been removed.

If you had unlimited management control … which structures offer you and your family the better value for life's events?

• General cash needs.

• Retirement.

• Terminal illness.

• Death.

The “Structural” Snapshot returns simplicity and informed decision making to the planning process.

“White-collar” workers face different planning challenges.

• Career and life choices results in living the longest … need to save more.

• More likely to be deferring compensation in the 401(k) into a higher tax rate during retirement than their working career average.

• Most likely to be capped or restricted from contributing to the Roth.

• Most employers are not willing to “sponsor” benefit programs for selected individuals.

The STAR Plan featuring ILI is designed specifically for the total cash management needs of mid to upper income white-collar individuals.

• Maximizes cash management efficiency because it utilizes ILI (institutionally-priced life insurance) for its funding … a niche cash management oriented insurance product that has been utilized by large institutions for over 20 years … recently made available for qualifying individuals to own and manage.

• After-tax tax-advantaged management structure maximizes non-taxable future cash-flow.

• Enables you to attain 401(k) management objectives (taking distributions at retirement in a lower tax rate) without reducing spendable cash-flow for retirement quality-of-life.

• Greater management options than other financial structures.

• Supplemental financial protection in the event of terminal illness or death … at no additional cost.

• Not an employer benefit, but an employer facilitated individual access program enabling employers to offer and equal financial opportunity workplace … with no added costs, liabilities or administrative responsibilities.

A level of financial value that is only possible because of your career and life choices.

What makes more sense for your planning?

• Watching mutual fund expenses, transaction fees and taxes erode 22% to 56% of your investment gain.

• Incurring ILI expenses that trim tax-deferred cash accumulation only 10% to 15% … while receiving incremental financial security for your family in the event of terminal illness or death.

You can save more, or save more efficiently.

How is it possible to have greater accessible cash from a life insurance based program?

• Because STAR utilizes ILI … not retail or group life insurance ... a very different value proposition.

• Because “(A+B) < C”.

• The (A) low cost of ILI separate accounts (funds) plus (B) ILI policy costs have less impact on investment gain than (C) the cost of alternatives incorporating mutual funds and / or taxes.

The result is a planning complement that provides:

• Comparable or greater accessible cash as leading alternatives ...  plus

• Financial protection for your heirs.

A financial “win-win” only ILI offers. 

Conclusions

Individuals performing "white-collar" roles in the workplace face different planning challenges.

• More likely to retire in a higher tax rate than their working career average.

• Most suitable planning structure is "after-tax - tax-advantaged" ... Roth and STAR.

• Most likely to be capped or restricted from the Roth or 401(k).

Today, the more efficient strategy for STAR qualifying individuals:

• Limit pre-tax 401(k) contributions to employer match.

• Utilize the Roth and The STAR Plan featuring ILI for new plan contributions and transfers from less efficient nonqualified structures.

Your planning objectives today are:

• Tax diversification ... at least 50% of your wealth should be held in after-tax tax-advantaged structures (Roth and STAR).

• Minimizing taxable income at retirement to stretch tax-qualified plan distributions while maximizing spendable cash-flow.

• Participating in the economics of longevity … as medical science further extends life expectancy, ILI participants participate in the reducing costs of ILI and enhanced financial value for them and their family.

Planning is simple … if you focus on the “steak”, not the “sizzle”. 

We look forward preparing your personalized “Structural” Snapshot and introducing you to the economic advantages of longevity driven total cash management.

I invite you to contact us to obtain your "Structural" Snapshot to see how The STAR Plan^® featuring ILI can benefit you and your family.

Just click Please contact me about The STAR Plan and let us know a convenient time and phone number to call you.

Charles M. "Mark" Whitelaw

President (CMW Bio)

"Structural" Snapshot

So many alternatives today ... STAR, taxable account, Roth, Annuity, NQDC 409A and 401(k).

The Snapshot summarizes the illustrated accessible net values of these different "structures" using comparable financial assumptions.

Following are summaries for plan entry ages 30 through 60.

Female "Structural" Snapshot

Male "Structural" Snapshot

The #1 planning issue today is not access to funds, but access to efficient "structures" to hold and manage those funds.

STAR offers access to a level of cash management efficiency that is only possible because of the ILI structure.

Order your personal  "Structural" Snapshot.

STAR is an Evolutionary Value

It was only a matter of time that we would be living so long, reducing white-collar risk rates so low, that ILI would evolve into the more efficient total cash management structure for qualifying individuals.

STAR Presents you with a Very Different Planning Question

If you could be in a comparable or better cash and cash management position today ... is there any reason you would not want your family to have some extra financial protection if you got sick or died tomorrow?