without the adverse U.S. tax consequences typical of offshore investments. Moreover, the client's portfolio should be sheltered from U.S. taxation during his stay in the United States. Retirement Planning Many clients, especially business owners, are subject to qualified plan limitations and can't put as much as they would like into tax-deferred retirement vehicles. These clients could use a PPVA investment account as a simple, yet effective, tax-deferred savings vehicle. The tax-deferred accumulation allows the PPVA account s•-)oi :d elapiE? :ay-evEr-•r:):: rive;y: n to generate substantial incremental retirement income relative to a taxable investment account. "Optimizing Retirement Income," this page, shows how much more can be withdrawn each year from a retirement account allowed to accumulate for different periods. When allowed to accumulate for 20 years, a PPVA investment account allows a client to withdraw almost 50 percent more per year for 20 years than a tax- able account. Practice tip: Consider allocating the most tax-ineffi- cient segment of a client's portfolio to the PPVA invest- ment account. This will optimize the leverage derived from deferring the investment gains from current period taxation. The PPVA provides significant flexibility in managing a client's retirement income, because sched- uled withdrawals can be postponed or accelerated as needed. If the PPVA investment account values arc allocated to alternative asset class investment vehicles, careful planning is necessary to assure that the required Optimizing Retirement Income If your client contributes $5 million to a PPVA account or taxable account and allows that money to accumulate for la 20 or 30 years. and then the client takes equal distributions for the next 20 years, here's what the annual distributions will be for each scenario 2500.000 2.0041.000 1500.000 1,000,000 503.0430 Taxabk mestmert &cart (alter tax) • PVJA mrestmenl anon! (after tax