46-year-old Wants $200,000/year of Future, Guaranteed Income… How Soon is Too Soon?!

(don’t forget to checkout the video of this case study too)

Is 46-years-old too soon to start positioning money into a guaranteed income vehicle⁉️

Let’s run the numbers and find out:

💾 be sure to save for later 💾

⭐️ Here are the details ⭐️

✅ Lauren is 46-years-old & single

✅ Her retirement income goal is $200,000 per year

✅ Her Social Security is estimated at $40,000 per year @ 67

✅ She currently has $250k a Roth IRA invested aggressively in tech stocks

✅ She makes $300k per year and can easily save $150k per year

✅ She has $200k in a 401k that is aggressively invested and maxed out annually (+ 6% match)

✅ Her goal is to leave her entire Roth IRA to her nephews

⭐️ 401k Projection at age 60 (conservatively using 6% per year) ⭐️

✅ $23,000/year + 6% match = $437,000 at age 50

✅ $30,500/year (with catch-up contributions) + 6% match = $1.44M at age 60

⭐️ $127,000/year into a non-qualified annuity (only contributing until age 60) ⭐️

✅ This will guarantee her $162,560 per year of lifetime income at age 60

✅ Return she would need in the market for same income = 10.6% per year for 14 years

✅ If she adds NOTHING to her income annuity after age 60 and allows it to continue growing it will pay her $212,211 per year at age 63 (guaranteed for life)

✅ Her annuity income will continue to grow at almost 9.3% per year every year after age 60

⭐️ Additional Considerations⭐️

⭐️ She can collect her social security early or allow it to grow as additional inflation protection

⭐️ She can start using her 401k as flexible income at age 59–1/2 (allowing social security & annuity income to continue growing)

⭐️ Her plan is to start taking taxable 401k withdrawals when her annuity payments become “non taxable” (after the interest has been paid out first)

This allows her to effectively manage her tax bracket in retirement!

⭐️ Roth IRA Projection (assuming she lives until age 90 with 8% average annual returns) ⭐️

✅ She will leave a $7.4M tax-free legacy to her nephews

⭐️ Final Results ⭐️

✅ $212,211/year of annuity income + $40,000/year social security income at 67 + $1.44M in 401k dollars to spend flexibly in retirement + $7.4M left to her nephews 100% tax-free.

Let’s chat 💬😎