Cash Flow Examples (Individual & Institutional)

Cash Flow Individual

Example 1: $5,000 a month living expenses
$1,000,000 divided by $5,000 = 200 mo. divided by 12 = 16.4 years
Age 65 +16.4 = 81.4 years old (your money would be depleted)
$1,000,000 X (times) 7.5% = $75,000 divided by 12 = $6,250 per mo.
For 60 months or 5 years then they get their $1,000,000 back and can do it again for another 5 years.

Example 2: $8,000 a month living expenses
$1,500,000 divided by $8,000 = 187.5 mo. divided by 12 = 15.6 years
65+ 15.6 = 80.6 years old (your money would be depleted)
$1,500,000 X (times 7.5%) = $112,500 divided by 12 = $9,375 per mo.
For 60 months or 5 years then get their $1,500,000 back and can do it again for another 5 years.


Cash Flow Institutional

Example 1: $5,000,000
$5,000,000 X (times) 7.5% = $375,000 divided by 12 = $31,250 per mo.
For 60 months or 5 years then they get their $5,000,000 back and can do it again for another 5 years.

Example 2: $10,000,000
$10,000,000 X (times 7.5%) = $750,000 divided by 12 = $62,500 per mo.
For 60 months or 5 years then get their $10,000,000 back and can do it again for another 5 years.
They would put their money into a trust
In their Name
Under their control
On their balance sheet
Comes back to them in cash in 5 years