Sample Net Income Savings - Retired Couple FLATFEECIO Sample Fiduciary Review Retired Couple with $1,400,000 36 Months Cumulative Savings: $40,800A 69 year old retired executive with 67 year old spouse have $700,000 in an IRA at a large national broker dealer. The IRA was funded from a rollover of the balance of the husband’s retirement plan. Couple are invested in individual stocks and bonds with several different managers seeking income and moderate growth that that is producing a 4% cash flow from dividends and income from the individual stocks and bonds.Clients are taking all dividend and income distributions from the IRA and Joint Account of $700,000 to generate income. Both accounts are similarly managed income and growth allocation of stocks and bonds.Total pre-tax annual income distribution of 4% from both accounts is $56,000 per year. After Federal and State taxes on the investment income the couple's net spendable income from their investments is $47,000 per year. The Percentage on Assets Legacy Fee Structure is as follows:EXTERNAL FEESLEGACY ADVISOR FEE of 1.0% per year on $1,400,000 = $14,000(Dollar Amount of Fee Fluctuates and Grows Directly with Account Value) Third Party Manager Fee of .50% on $1,400,000 = $7,000 (Dollar Amount of Fee Fluctuates and Grows Direclty with Account Value)TOTAL ONGOING LEGACY FEES = $21,000LEGACY FEE IMPACT ON INCOMETOTAL ONGOING LEGACY ANNUAL FEES =$21,000NET AFTER TAX INVESTMENT INCOME =$47,000 NET SPENDABLE INCOME LESS ANNUAL LEGACY FEES = $26,000Legacy Advisor Fee $21,000 / Net Spendable Income $47,000 = 45% of Net Spendable Income FLATFEECIO Efficient Wealth Plan UpgradeFLATFEECIO FIXED ANNUAL FEE =$6,000(Dollar Amount of Fee Does NOT Grow Directly with Account Value)INTERNAL MUTUAL FUND ALTERNATIVE EXPENSE of = $1400.10% on $700,000 IRA and $700,000 Joint Account(Dollar Amount of Fee Grows Directly with the Account Value)TOTAL FLATFEECIO ANNUAL FEES =$7,400LEGACY ANNUAL PERCENT ADVISOR FEE =$21,000FLATFEECIO ANNUAL ADVISOR FEE =$7,400ANNUAL NET SAVINGS =$13,60024 MONTHS CUMULATIVE SAVINGS =$27,20036 MONTHS CUMULATIVE SAVINGS =$40,800 Hypothetical Client Fee Savings Illustration. Actual Savings Results May Vary. Percentage based advisor and product fees fluctuate which can increase or decrease potential annual and cumulative savings results.